Alpine me Property Trust(PINE) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company achieved AFFO of $0.74 per diluted share for the year, representing growth of 17% [6] - Total revenue for Q4 was$ 13.8 million, with FFO and AFFO both at $0.44 per diluted share, reflecting growth of 19% and 16% respectively over the prior year [16] - For the full year, total revenue was$ 52.2 million, with FFO at $1.73 per diluted share, representing 18% growth over the prior year [17] Business Line Data and Key Metrics Changes - The company acquired six properties for$ 50.5 million in Q4, bringing total acquisitions for the year to twelve at a weighted average cash cap rate of 8.2% [8] - The company originated three commercial loans during the year for $31.1 million at a weighted average yield of 10.7% [9] - The company sold$ 62 million of property at an average cap rate of 6.9%, reflecting a strategic effort to reduce risk [10] Market Data and Key Metrics Changes - 51% of the company's ABR is attributable to investment-grade rated tenants [9] - The company ended the year with a net debt to EBITDA ratio of 7.4 times, down from 7.7 times at the beginning of the year [19] Company Strategy and Development Direction - The company plans to continue its investment strategy with a barbell approach, focusing on both investment-grade rated tenants and higher-yielding opportunities [11] - The company anticipates an active pipeline of opportunities across the tenant landscape [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the Party City bankruptcy and the vacant theater in Reno will impact 2025 FFO and AFFO per share by approximately $0.08 [23] - The company remains optimistic about the investment landscape, with a strong pipeline of potential acquisitions and loan originations [81] Other Important Information - The company has no debt maturing until 2026, and its weighted average interest rate on debt is 4.1% [20] - The annual run rate for the external management fee is now$ 4.5 million [24] Q&A Session Summary Question: Should we expect a further paring down of Walgreens exposure? - Management indicated that they are negotiating to reduce Walgreens exposure and are timing it with acquisitions [26][27] Question: Can you provide any color on your appetite for acquisitions versus construction loans? - Management expressed a balanced interest in both acquisitions and loans, seeing robust opportunities on both sides [28][31] Question: What do you expect for the commercial loan maturing in 2025? - Management expects one loan to pay off and three to extend, with confidence in replacing the maturing loan [35][36] Question: What is the expected timing for property sales and acquisitions? - Management anticipates more activity towards the end of the first quarter [38] Question: Are the beachside group assets back to full capacity after storm damage? - Management confirmed that the assets are performing well, with some exceeding pre-hurricane performance [44][45] Question: Are there any other locations expected to be vacant in 2025 or early 2026? - Management stated that there are no other anticipated vacancies beyond the previously mentioned properties [50] Question: Is there a market for at-home assets? - Management acknowledged that there is a market for at-home assets due to their unique configurations and low basis [55] Question: Any unusual line items expected in 2025? - Management indicated that most expenses will have a consistent run rate, with no unusual one-time fees anticipated [58] Question: Will the company consider swaps for the revolver balance? - Management mentioned that they might consider swaps depending on the timing of acquisitions and dispositions [92] Question: Will the company achieve a positive cap rate spread on acquisitions and dispositions? - Management indicated that while some assets may not yield a positive spread, they expect accretive recycling once capital is redeployed [95]