Alpine Income Property Trust Q4 Earnings Call Highlights

Core Insights - The company reported a record investment year for 2025, completing $277.7 million in investments, with $142.1 million in the fourth quarter, and a weighted average initial yield of 10.3% for the year [1][5] - Earnings growth for both the fourth quarter and full year was attributed to investment activity and disciplined balance sheet management [1] - The company announced an increase in the quarterly common dividend by 5.3% to $0.30 per share, effective in the first quarter of 2026, driven by earnings and taxable income growth [21] Financial Performance - Total revenue for the full year was $60.5 million, including $48.7 million from lease income and $11.4 million from interest income [1] - Fourth quarter revenue was $16.9 million, with lease income of $12.7 million and interest income of $4.0 million [2] - Funds from operations (FFO) and adjusted funds from operations (AFFO) attributable to common stockholders were $1.88 and $1.89 per diluted share for the full year, representing approximately 8.6% growth [1] - FFO and AFFO for the fourth quarter were $0.54 per diluted share, reflecting a 22.7% increase year-over-year [2][6] Investment Activity - The company acquired eight properties in the fourth quarter for approximately $40 million at a weighted average initial cash cap rate of 6.9% [7] - For the full year, 13 properties were acquired for $100.6 million at a weighted average initial cap rate of 7.4% [7] - The company sold nine noncore properties in the fourth quarter for $38.4 million at a weighted average exit cap rate of 7.7%, with full-year dispositions totaling $72.8 million [8] Portfolio Composition - Following acquisition and disposition activity, 51% of annual base rent (ABR) is now generated from investment-grade rated tenants, with Lowe's, Dick's Sporting Goods, and Walmart representing 29% of ABR [9] - The property portfolio consisted of 127 properties totaling 4.3 million square feet across 32 states, with a weighted average lease term of 8.4 years and 99.5% occupancy [11] Commercial Loan Growth - The company originated $177 million of commercial loans for the full year at a weighted average initial coupon of 12% [12] - The net commercial loan portfolio increased to approximately $129.8 million, with a target allocation of about 20% of total undepreciated asset value [14][15] Capital and Debt Management - The company raised $50 million through a public offering of Series A preferred stock and completed a new unsecured credit facility, leaving no debt maturities for three years [17] - The net debt to pro forma Adjusted EBITDA improved to 6.7x from 7.4x at the beginning of the year, with liquidity of $65.8 million [19] 2026 Guidance - Initial guidance for 2026 FFO per diluted common share is set at $2.07 to $2.11, with assumptions of $70 million to $100 million in investment volume and $30 million to $60 million in dispositions [20]