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Alpine Income Property Trust: An Interesting Microcap Retail REIT (NYSE:PINE)

August 26, 2022

by Jerry Schmidt Investment Property

Written by Nick Ackerman. This article was originally published to members of Cash Builder Opportunities on August 11th, 2022.

Alpine Income Property Trust, Inc. (NYSE:PINE) immediately caught my attention when it appeared on our latest monthly dividend screening piece. Several interesting names show up with that screening article, and it gets some of the most readership. So, a good reason why I continue to produce that monthly piece.

For PINE, more specifically, the higher yield of nearly 6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} at this time plus a growth trend initially stood out. After looking into it a bit more, some red flags should be addressed. All in all, though, it is an interesting name that is worth being put on the watchlist, or even perhaps a small initial position.

They describe themselves as:

“a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality net leased properties. The Company’s portfolio consists of 143 properties located in 35 states.”

They were considered a diversified real estate investment trust (“REIT”), but after selling off their Wells Fargo offices earlier this year, they have become a more pure-play retail REIT.

A Look At The Tenants And Size

There are risks to all investing. Some investments have additional risks that should be considered. I believe that PINE is one of those.

The first caution that I saw was the market cap and, subsequently, the size of the REIT. At only around a $217 million market cap, we are looking at a microcap. In total, they only have 143 properties. With only a few years of operation, that isn’t necessarily unexpected as they look to become bigger over time.

Other retail REITs such as Realty Income (O) and Agree Realty (ADC) weren’t built in a day.

Speaking of those names, here’s a comparison of those market caps for some context. Note how O had a spike in market cap after its merger with VAREIT.

Enterprise value is often considered a better sizing metric for REITs, but we will obviously see a similar trend here too.

A small company, or in this case, REIT, can offer higher growth potential going forward. However, it also means that a small speed bump in the economy could send things off track. Looking at the portfolio, despite being a small number of properties, it seems they hold some top-quality names for tenants.

There are several recession-resistant names that won’t be impacted too considerably, such as Walgreens (WBA), Lowe’s (LOW), Dollar General (DG), Family Dollar/Dollar Tree (DLTR) and Walmart (WMT). That’s reinforced by the strong credit ratings of investment grades that these positions receive.

PINE Top Tenants (PINE Investor Presentation)

In fact, half their tenants are considered investment-grade. That should bode well during the next economic slowdown.

PINE Tenant Quality (PINE Investor Presentation)

That’s where we go back to the size discussion, though. These top tenants make up half of their annualized base rent (“ABR”). That’s a fairly narrow selection of individual companies that can have their own individual issues pop up.

I’d also look back at their geographic exposure. Having a fairly small number of properties means that you will be fairly concentrated. In this case, 12{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of their portfolio is in Houston, TX alone. They highlight that 60{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of ABR comes from metropolitan statistical areas with more than one million people.

They also highlight that 39{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of ABR comes from the high-growth states of Texas, Florida, North Caroline, Arizona and Georgia. That highlights a strength while those places are growing. However, I view it as more of a concentration risk, too, having so much ABR tied up to a relatively limited number of cities within these states.

External Management

A second risk to consider before investing is that they are externally managed by CTO Realty Growth (CTO).

The Company has no employees and is externally managed by Alpine Income Property Manager, LLC, a Delaware limited liability company and a wholly owned subsidiary of CTO Realty Growth, Inc. (our “Manager”). CTO Realty Growth, Inc. (NYSE: CTO) is a Maryland corporation that is a publicly traded diversified real estate investment trust (“REIT”) and the sole member of our Manager (“CTO”).

That can create some potential conflicts of interest or values that don’t necessarily align with current shareholders. In their coverage of CTO, On The Pulse noted that they own a 15{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} stake in PINE itself. That should help align the managers with shareholders.

As of the latest quarterly release from PINE, they continue to pick up shares in the open market. That continues to align their interest with current holders of PINE.

We are externally managed by the Manager, a wholly owned subsidiary of CTO. Subsequent to the IPO, CTO purchased an aggregate 107,866 shares of PINE common stock in the open market including (i) 99,778 shares purchased during the six months ended June 30, 2022 for $1.8 million, or an average price per share of $17.99 and (ii) 8,088 shares purchased during the year ended December 31, 2021 for $0.1 million, or an average price per share of $17.65. As of June 30, 2022, CTO owns, in the aggregate, 1,223,854 OP Units and 923,656 shares of PINE common stock, inclusive of (i) 394,737 shares of common stock totaling $7.5 million issued in connection with the CTO Private Placement, (ii) 421,053 shares of common stock totaling $8.0 million issued in connection with the IPO, and (iii) 107,866 shares of common stock totaling $1.9 million purchased by CTO subsequent to the IPO. The aggregate 1,223,854 OP Units and 923,656 shares of PINE common stock held by CTO represent an investment totaling $38.5 million, or 15.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of PINE’s outstanding equity, as of June 30, 2022.

Additionally, they intend to internalize the management of PINE. Their latest investor relation simply stated, “internalization of management for PINE is anticipated in the future when the Company approaches or exceeds critical mass.” That suggests they want to be a larger operation before internally taking a team. It, unfortunately, does not give us any solid metric to watch to see how close we may be to such a transition.

Growth Potential And Dividend

I believe those are the main risks that stood out to me, but now on why PINE can be quite attractive. The latest funds from operation (“FFO”) they provided for last quarter was $0.47. That was an increase from 2021’s $0.38 of 23.68{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. That’s quite the leap. AFFO also increased 20.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} from the prior quarter.

ADC recently had its own earnings release. The results were fantastic, in my opinion. However, their FFO increased by 9.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, and AFFO was up 10.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. Fantastic results, but helps provide context on what size can do to the figures. That was after they invested $430 million on 121 properties. That’s nearly as many properties that PINE has combined.

Analysts expect that they will report $1.68 in FFO for the full year. Though that’s only a relatively smaller 6.24{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} growth potential for the year, they have a history of easily beating analysts’ expectations thus far.

For the full 2022 year, they expect AFFO to come in at $1.58 to $1.63. That was a raise from their own prior guidance of $1.53 to $1.58. That was after they raised their guidance in the earlier quarter too. So at this point, it’s becoming a bit of a regular thing for PINE to beat and raise, which means that their expectations could still potentially be lower than what we ultimately see.

That’s part of why microcap stocks and REITs can have some strong appeal-being able to grow by larger percentages since they are growing from a smaller size in the first place. When they add 19 properties as they did in the latest quarter, that actually really adds up.

Though, net, it was a 14 property addition due to disposing of 5 office properties. Still, another 14 properties in the next quarter off of 143 properties is an almost 10{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} add to their portfolio. That can really contribute significantly to the FFO and AFFO growth through acquisitions alone.

For 2022 overall, they are expecting acquisitions of $215 million to $235 million. Dispositions for the year are anticipated to be $125 million to $175 million.

This all translates into the potential growth of the dividends for investors. Which is exactly what has been experienced so far. So far, it appears they haven’t had a predictable growth in the dividend. Instead, they appear to be raising rather sporadically but raising nonetheless. That doesn’t seem to be a bad thing until they have matured a bit more.

The latest $0.27 quarterly was a raise over last year’s $0.25 of 7.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. That also worked out to an increase of 35{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} over the 2020 $0.20 quarterly payout.

Conclusion

I consider ADC to be “O-lite.” With PINE coming on my radar now, it would appear that a fitting description could be something like “O-ultra-lite” if I wanted to put a moniker on it. There is potential here, but due to its newness and being a small operation at this point, I think it would only be appropriate for a very high-risk portion of one’s portfolio. With the size can come the potential for a lot of growth. Even the potential to be an acquisition target. However, it also means that their economic sensitivity and lack of diversification leave them more vulnerable.

Alpine Income Property Trust Reports Second Quarter 2022

July 23, 2022

by Jerry Schmidt Investment Property

WINTER PARK, Fla., July 21, 2022 (GLOBE NEWSWIRE) — Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or “PINE”) today announced its operating results and earnings for the quarter ended June 30, 2022.

Select Highlights

Reported Net Income per diluted share attributable to the Company of $1.05 for the quarter ended June 30, 2022.
Reported FFO per diluted share of $0.47 for the quarter ended June 30, 2022, an increase of 23.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} from the comparable prior year period.
Reported AFFO per diluted share of $0.47 for the quarter ended June 30, 2022, an increase of 20.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} from the comparable prior year period.
Acquired 19 net lease retail properties during the second quarter of 2022 for total acquisition volume of $43.6 million, reflecting a weighted average going-in cash cap rate of 7.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}.
Sold five net lease properties, including the Company’s sole remaining office property, for total disposition volume of $72.8 million at a weighted average exit cap rate of 7.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, generating total gains of $15.6 million. Excluding the office property disposition, the properties were sold at a weighted average cap rate of 5.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}.
Exercised the accordion options under its 2026 Term Loan and 2027 Term Loan for combined new proceeds of $60.0 million.
Paid a cash dividend for the second quarter of 2022 of $0.27 per share, an 8.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} increase from the comparable prior year period quarterly dividend, and an annualized yield of 6.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} based on the closing price of the Company’s common stock on July 20, 2022.

CEO Comments

“We had a very strong quarter of capital recycling as we reduced select tenant concentrations and took advantage of attractive asset pricing, especially relative to our current market valuation,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. “Excluding the sale of our remaining office property, our dispositions efforts were notably accretive as we generated a weighted average sale cap rate of 5.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and we reinvested the proceeds from these dispositions into well-performing properties in strong retail sectors at a weighted average acquisition cap rate of 7.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. We anticipate continued capital recycling in the third quarter that should deliver attractive net investment spreads and improved earnings growth, all while incrementally deleveraging our balance sheet and enhancing our overall portfolio quality. With increased 2022 earnings guidance and another solid quarter of outperformance, we’re looking forward to building momentum in the back half of the year and driving improved company valuation as we work to demonstrate the value proposition of our high-quality, 100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} retail portfolio.”

Quarterly Operating Results Highlights

The table below provides a summary of the Company’s operating results for the quarter ended June 30, 2022 (in thousands, except per share data):

	Three Months Ended June 30, 2022		Three Months Ended June 30, 2021		Variance to Comparable Period in the Prior Year
Total Revenues	$	11,280	$	6,597	$	4,683	71.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Net Income	$	16,336	$	346	$	15,990	4,621.4	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Net Income Attributable to PINE	$	14,282	$	304	$	13,978	4,598.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Net Income per Diluted Share Attributable to PINE	$	1.05	$	0.03	$	1.02	3,400.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

FFO⁽¹⁾	$	6,393	$	3,809	$	2,584	67.8	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
FFO per Diluted Share⁽¹⁾	$	0.47	$	0.38	$	0.09	23.7	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
AFFO ⁽¹⁾	$	6,345	$	3,892	$	2,453	63.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
AFFO per Diluted Share⁽¹⁾	$	0.47	$	0.39	$	0.08	20.5	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Dividends Declared and Paid, per Share	$	0.27	$	0.25	$	0.02	8.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

⁽¹⁾ See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income to non-GAAP financial measures, including FFO, FFO per diluted share, AFFO, and AFFO per diluted share.

Year-to-Date Operating Results Highlights

The table below provides a summary of the Company’s operating results for the six months ended June 30, 2022 (in thousands, except per share data):

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021		Variance to Comparable Period in the Prior Year
Total Revenues	$	22,079	$	12,487	$	9,592	76.8	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Net Income	$	17,260	$	857	$	16,403	1,914.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Net Income Attributable to PINE	$	15,088	$	744	$	14,344	1,928.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Net Income per Diluted Share Attributable to PINE	$	1.12	$	0.08	$	1.04	1,300.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

FFO⁽¹⁾	$	12,989	$	7,463	$	5,526	74.0	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
FFO per Diluted Share ⁽¹⁾	$	0.97	$	0.79	$	0.18	22.8	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
AFFO ⁽¹⁾	$	12,797	$	7,742	$	5,055	65.3	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
AFFO per Diluted Share⁽¹⁾	$	0.95	$	0.82	$	0.13	15.9	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Dividends Declared and Paid, per Share	$	0.54	$	0.49	$	0.05	10.2	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Acquisitions

During the three months ended June 30, 2022, the Company acquired 19 high-quality net lease properties for total acquisition volume of $43.6 million, reflecting a weighted average going-in cash cap rate of 7.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. As of the acquisition date, the properties had a weighted average remaining lease term of 9.9 years, were located in nine states, and were leased to tenants operating in five retail sectors, including the dollar store, home improvement, consumer electronics, health & fitness, and quick service restaurant industries. Approximately 48{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of annualized base rents acquired are generated from a tenant or the parent of a tenant with an investment grade credit rating.

During the six months ended June 30, 2022, the Company has acquired 35 net lease properties for total acquisition volume of $109.1 million, reflecting a weighted average going-in cash cap rate of 6.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. As of the acquisition date, the properties had a weighted average remaining lease term of 9.4 years and were located in 17 states. Approximately 67{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of annualized base rents acquired are generated from a tenant or the parent of a tenant with an investment grade credit rating.

Dispositions

During the three months and six months ended June 30, 2022, the Company sold five net lease properties, including its remaining office property located in Hillsboro, Oregon, for total disposition volume of $72.8 million, representing a weighted average exit cap rate of 7.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. The sale of the properties generated total gains of $15.6 million.

Excluding the office property disposition, the properties were sold at a weighted average exit cap rate of 5.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and were leased to Sportsman’s Warehouse, At Home, Hobby Lobby, and Cheddar’s Scratch Kitchen.

Property Portfolio

The Company’s portfolio consisted of the following as of June 30, 2022:

Number of Properties	143
Square Feet	3.3 million
Annualized Base Rent	$39.6 million
Weighted Average Remaining Lease Term	8.0 years
States where Properties are Located	35
Occupancy	100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of Annualized Base Rent Subject to Rent Escalations in the Primary Lease Term ⁽¹⁾	42{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of Annualized Base Rent Attributable to Investment Grade Rated Tenants⁽¹⁾⁽²⁾	48{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of Annualized Base Rent Attributable to Credit Rated Tenants⁽¹⁾⁽³⁾	76{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Any differences a result of rounding.

⁽¹⁾ Annualized Base Rent (“ABR”) represents the annualized in-place straight-line base rent required by the tenant’s lease. ABR is a non-GAAP financial measure. We believe this non-GAAP financial measure is useful to investors because it is a widely accepted industry measure used by analysts and investors to compare the real estate portfolios and operating performance of REITs.

⁽²⁾ The Company defines an Investment Grade Rated tenant as a tenant or the parent of a tenant with a credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners of Baa3, BBB-, NAIC-2 or higher.

⁽³⁾ The Company defines a Credit Rated Tenant as a tenant or the parent of a tenant with a credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners.

The Company’s portfolio included the following top tenants that represent 2.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} or greater of the Company’s total annualized base rent as of June 30, 2022:

Tenant	Credit Rating⁽¹⁾	{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of Annualized Base Rent
Walgreens	BBB	12{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Dollar General	BBB	5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Dollar Tree/Family Dollar	BBB	5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Academy Sports	BB-	5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
LA Fitness	B-	5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Walmart	AA	4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Hobby Lobby	Not Rated	4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Lowe’s	BBB+	4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
At Home	B	4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Best Buy	BBB+	3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
7-Eleven	A	2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Burlington	BB+	2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Kohl’s	BBB-	2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Big Lots	Not Rated	2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Other	N/A	41{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Total		100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Any differences a result of rounding.

⁽¹⁾ Credit rating is from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners, as applicable, as of June 30, 2022. The Company defines an Investment Grade Rated tenant as a tenant or the parent of a tenant with a credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Associated of Insurance Commissioners of Baa3, BBB-, NAIC-2 or higher.

The Company’s portfolio consisted of the following industries as of June 30, 2022:

Industry		{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of Annualized Base Rent
Pharmacy		14{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Dollar Stores		11{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Home Furnishings		10{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
General Merchandise		9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Sporting Goods		7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Grocery		7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Convenience Store		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Consumer Electronics		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Health & Fitness		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Entertainment		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Home Improvement		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Specialty Retail		3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Quick Service Restaurant		3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Automotive Parts		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Off-Price Retail		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Casual Dining		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Farm & Rural Supply		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Office Supplies		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Financial Services		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Automotive Services		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Healthcare Services		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Fast Casual Restaurants		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Pet Supplies		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Other ⁽¹⁾		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Total	26 Industries	100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Any differences a result of rounding.
⁽¹⁾ Includes three industries collectively representing less than 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of the Company’s ABR as of June 30, 2022.

The Company’s portfolio included properties in the following states as of June 30, 2022:

State		{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of Annualized Base Rent
Texas		19{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Ohio		6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Georgia		6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Florida		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
New Jersey		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Arizona		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
North Carolina		5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Michigan		4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
New York		4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Oklahoma		4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
South Carolina		3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Massachusetts		3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Maryland		3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Minnesota		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Wisconsin		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Louisiana		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Washington		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Alabama		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Nevada		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Kansas		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Illinois		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Pennsylvania		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Missouri		2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
West Virginia		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Kentucky		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Nebraska		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Connecticut		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Mississippi		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Indiana		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
New Mexico		1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Maine		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
South Dakota		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Arkansas		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
California		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Virginia		< 1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
Total	35 States	100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Any differences a result of rounding.

Capital Markets and Balance Sheet

During the quarter ended June 30, 2022, the Company completed the following notable capital markets activity:

On April 14, 2022, the Company exercised the accordion options under the Company’s 2026 Term Loan and 2027 Term Loan for $40.0 million and $20.0 million, respectively, increasing aggregate lender commitments and borrowings under each Term Loan to $100.0 million. The $60.0 million in total proceeds were utilized to pay down the Company’s Revolving Credit Facility.
The Company issued 87,112 common shares under its ATM offering program at a weighted average gross price of $19.09 per share, for total net proceeds of $1.6 million.

The following table provides a summary of the Company’s long-term debt as of June 30, 2022:

Component of Long-Term Debt		Principal	Interest Rate	Maturity Date
Revolving Credit Facility	$	72.5 million	30-Day LIBOR + [1.35{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} – 1.95{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}]	November 2023
2026 Term Loan ⁽¹⁾	$	100.0 million	SOFR + 10 bps + [1.35{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} – 1.95{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}]	May 2026
2027 Term Loan ⁽²⁾	$	100.0 million	SOFR + 10 bps + [1.25{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} – 1.90{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}]	January 2027
Mortgage Note Payable – CMBS Portfolio	$	30.0 million	4.33{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}	October 2034
Total Debt/Weighted Average Rate	$	302.5 million	3.04{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

⁽¹⁾ Effective May 21, 2021 and as amended on April 14, 2022, the Company utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 0.80{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} plus the 0.10{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} credit spread adjustment and applicable spread on $60.0 million of the 2026 term loan balance.

⁽²⁾ Effective September 30, 2021 and as amended on April 14, 2022, the Company utilized interest rate swaps, inclusive of its redesignation of the existing $50.0 million interest rate swap entered into as of April 30, 2020, to fix SOFR and achieve a weighted average fixed interest rate of 0.51{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} plus the 0.10{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} credit spread adjustment and the applicable spread on $80.0 million of the 2027 term loan balance.

As of June 30, 2022, the Company held an 87.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} interest in Alpine Income Property OP, LP, the Company’s operating partnership (the “Operating Partnership” or “OP”). There were 1,703,494 OP Units held by third parties outstanding and 11,863,589 shares of the Company’s common stock outstanding, for total outstanding common stock and OP Units held by third parties of 13,567,083, as of June 30, 2022.

As of June 30, 2022, the Company’s net debt to Pro Forma EBITDA was 8.3 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 4.9 times. As of June 30, 2022, the Company’s net debt to total enterprise value was 54.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. The Company calculates total enterprise value as the sum of net debt and the market value of the Company’s outstanding common shares and OP Units, as if the OP Units have been converted to common shares.

Dividend

On May 24, 2022, the Company announced a cash dividend for the second quarter of 2022 of $0.27 per share, payable on June 30, 2022 to stockholders of record as of the close of business on June 9, 2022. The second quarter 2022 cash dividend represents an 8.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} increase over the comparable prior year period quarterly dividend and a payout ratio of 57.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of both the Company’s second quarter 2022 FFO per diluted share and the Company’s AFFO per diluted share.

2022 Outlook

The Company has increased its per share earnings outlook for 2022 to take into account the Company’s year-to-date performance and revised expectations regarding the Company’s investment activities, forecasted capital markets transactions, and other significant assumptions.

The Company’s increased outlook for 2022 is as follows:

Revised Outlook Range for 2022

Change from Prior Outlook

Low

High

Low

High

Acquisitions

$215 million

$235 million

$0 million

($15) million

Dispositions

$125 million

$175 million

$50 million

$75 million

FFO per Diluted Share

$1.60

$1.65

$0.05

AFFO per Diluted Share

$1.58

$1.63

$0.05

Weighted Average Diluted
Shares Outstanding

14.0 million

14.5 million

(1.0) million

(2.0) million

Earnings Conference Call & Webcast

The Company will host a conference call to present its operating results for the quarter ended June 30, 2022 on Friday, July 22, 2022, at 9:00 AM ET.

A live webcast of the call will be available on the Investor Relations page of the Company’s website at www.alpinereit.com or at the link provided in the event details below. To access the call by phone, please go to the link provided in the event details below and you will be provided with dial-in details.

Webcast: https://edge.media-server.com/mmc/p/m5bmoukh

Dial-In: https://register.vevent.com/register/BI2ecaebb93f59455a9fc5047e6acb1c70

We encourage participants to dial into the conference call at least fifteen minutes ahead of the scheduled start time. A replay of the earnings call will be archived and available online through the Investor Relations section of the Company’s website at www.alpinereit.com.

About Alpine Income Property Trust, Inc.

Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality net leased commercial properties.

We encourage you to review our most recent investor presentation which is available on our website at http://www.alpinereit.com.

Safe Harbor

This press release may contain “forward-looking statements.” Forward-looking statements include statements that may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include general business and economic conditions, continued volatility and uncertainty in the credit markets and broader financial markets, risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments and potential damages from natural disasters, the impact of the COVID-19 Pandemic and its variants on the Company’s business and the business of its tenants and the impact on the U.S. economy and market conditions generally, other factors affecting the Company’s business or the business of its tenants that are beyond the control of the Company or its tenants, and the factors set forth under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also disclose Funds From Operations (“FFO”) Adjusted Funds From Operations (“AFFO”), and Pro Forma Earnings Before Interest, Taxes, Depreciation and Amortization (“Pro Forma EBITDA”), all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.

FFO, AFFO, and Pro Forma EBITDA do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries.

To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, amortization of above- and below-market lease related intangibles, non-cash compensation, and other non-cash income or expense. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. We use AFFO as one measure of our performance when we formulate corporate goals.

To derive Pro Forma EBITDA, GAAP net income or loss is adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, and other non-cash income or expense. Cash interest expense is also excluded from Pro Forma EBITDA, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions and other similar activities.

FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains or losses on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that AFFO is an additional useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. We also believe that Pro Forma EBITDA is an additional useful supplemental measure for investors to consider as it allows for a better assessment of our operating performance without the distortions created by other non-cash revenues, expenses or certain effects of the Company’s capital structure on our operating performance. FFO, AFFO, and Pro Forma EBITDA may not be comparable to similarly titled measures employed by other companies.

Alpine Income Property Trust, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share data)

	As of
	(Unaudited) June 30, 2022			December 31, 2021
ASSETS
Real Estate:
Land, at Cost	$	180,569		$	178,172
Building and Improvements, at Cost		304,129			266,236
Total Real Estate, at Cost		484,698			444,408
Less, Accumulated Depreciation		(17,527	)		(15,419	)
Real Estate—Net		467,171			428,989
Assets Held for Sale		2,435			—
Cash and Cash Equivalents		2,427			8,851
Restricted Cash		15,131			646
Intangible Lease Assets—Net		61,371			58,821
Straight-Line Rent Adjustment		1,912			1,838
Other Assets		16,909			6,369
Total Assets	$	567,356		$	505,514
LIABILITIES AND EQUITY
Liabilities:
Accounts Payable, Accrued Expenses, and Other Liabilities	$	4,788		$	2,363
Prepaid Rent and Deferred Revenue		1,662			2,033
Intangible Lease Liabilities—Net		5,177			5,476
Long-Term Debt		300,973			267,740
Total Liabilities		312,600			277,612
Commitments and Contingencies
Equity:
Preferred Stock, $0.01 par value per share, 100 million shares authorized, no shares issued and outstanding as of June 30, 2022 and December 31, 2021		—			—
Common Stock, $0.01 par value per share, 500 million shares authorized, 11,863,589 shares issued and outstanding as of June 30, 2022 and 11,454,815 shares issued and outstanding as of December 31, 2021		119			114
Additional Paid-in Capital		208,706			200,906
Retained Earnings (Dividends in Excess of Net Income)		2,301			(6,419	)
Accumulated Other Comprehensive Income		10,999			1,922
Stockholders’ Equity		222,125			196,523
Noncontrolling Interest		32,631			31,379
Total Equity		254,756			227,902
Total Liabilities and Equity	$	567,356		$	505,514

Alpine Income Property Trust, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share, per share and dividend data)

	Three Months Ended							Six Months Ended
	June 30, 2022				June 30, 2021			June 30, 2022			June 30, 2021
Revenues:
Lease Income	$	11,280			$	6,597		$	22,079		$	12,487
Total Revenues		11,280				6,597			22,079			12,487
Operating Expenses:
Real Estate Expenses		1,285				824			2,377			1,475
General and Administrative Expenses		1,479				1,286			2,910			2,316
Depreciation and Amortization		5,694				3,463			11,366			6,606
Total Operating Expenses		8,458				5,573			16,653			10,397
Gain on Disposition of Assets		15,637				—			15,637			—
Net Income from Operations		18,459				1,024			21,063			2,090
Interest Expense		2,123				678			3,803			1,233
Net Income		16,336				346			17,260			857
Less: Net Income Attributable to Noncontrolling Interest		(2,054	)			(42	)		(2,172	)		(113	)
Net Income Attributable to Alpine Income Property Trust, Inc.	$	14,282			$	304		$	15,088		$	744

Per Common Share Data:
Net Income Attributable to Alpine Income Property Trust, Inc.
Basic	$	1.21			$	0.03		$	1.28		$	0.09
Diluted	$	1.05			$	0.03		$	1.12		$	0.08
Weighted Average Number of Common Shares:
Basic	11,844,108			8,853,259				11,753,904			8,212,902
Diluted ⁽¹⁾	13,547,602				10,081,783			13,457,398			9,439,104

Dividends Declared and Paid	$	0.27			$	0.25		$	0.54		$	0.49

⁽¹⁾ Includes the weighted average impact of 1,703,494 shares underlying OP units including (i) 1,223,854 shares underlying OP Units issued to CTO Realty Growth, Inc. and (ii) 479,640 shares underlying OP Units issued to an unrelated third party.

Alpine Income Property Trust, Inc.
Non-GAAP Financial Measures
Funds From Operations and Adjusted Funds From Operations
(Unaudited)
(In thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Net Income	$	16,336		$	346		$	17,260		$	857
Depreciation and Amortization		5,694			3,463			11,366			6,606
Gain on Disposition of Assets		(15,637	)		—			(15,637	)		—
Funds from Operations	$	6,393		$	3,809		$	12,989		$	7,463
Adjustments:
Straight-Line Rent Adjustment		(234	)		(117	)		(528	)		(264	)
COVID-19 Rent Repayments, Net		22			114			45			385
Non-Cash Compensation		78			79			157			152
Amortization of Deferred Financing Costs to Interest Expense		132			84			257			149
Amortization of Intangible Assets and Liabilities to Lease Income		(69	)		(50	)		(170	)		(91	)
Other Non-Cash (Income) Expense		23			(5	)		47			(11	)
Recurring Capital Expenditures		—			(22	)		—			(41	)
Adjusted Funds from Operations	$	6,345		$	3,892		$	12,797		$	7,742

FFO per Diluted Share	$	0.47		$	0.38		$	0.97		$	0.79
AFFO per Diluted Share	$	0.47		$	0.39		$	0.95		$	0.82

Alpine Income Property Trust, Inc.
Non-GAAP Financial Measures
Reconciliation of Net Debt to Pro Forma EBITDA
(Unaudited)
(In thousands)

	Three Months Ended
	June 30, 2022
Net Income	$	16,336
Adjustments:
Depreciation and Amortization		5,694
Gain on Disposition of Assets		(15,637	)
Straight-Line Rent Adjustment		(234	)
Non-Cash Compensation		78
Amortization of Deferred Financing Costs to Interest Expense		132
Amortization of Intangible Assets and Liabilities to Lease Income		(69	)
Other Non-Cash Expense		23
Interest Expense, Net of Deferred Financing Costs Amortization		1,991
EBITDA	$	8,314

Annualized EBITDA	$	33,258
Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions ⁽¹⁾		893
Pro Forma EBITDA	$	34,151

Total Long-Term Debt		300,973
Financing Costs, Net of Accumulated Amortization		1,527
Cash and Cash Equivalents		(2,427	)
Restricted Cash		(15,131	)
Net Debt	$	284,942

Net Debt to Pro Forma EBITDA		8.3x

⁽¹⁾ Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activities during the three months ended June 30, 2022.

Contact:	Matthew M. Partridge
	Senior Vice President, Chief Financial Officer & Treasurer
	(407) 904-3324
	mpartridge@alpinereit.com

Alpine Income Property Trust Announces Sale of Single

April 15, 2022

by Jerry Schmidt Investment Property

Winter PARK, Fla., April 14, 2022 (Globe NEWSWIRE) — Alpine Cash flow Home Belief, Inc. (NYSE: PINE) (the “Company”) now introduced the disposition of its one tenant office environment property located in Hillsboro, Oregon and net leased to Wells Fargo (the “Property”). The Home has 3.7 years of remaining lease expression and was marketed for $38.8 million, producing a achieve on sale of $7. million. The Business used the proceeds from the sale of the House as part of like-variety reverse 1031 exchanges. The Company’s exit of its business office home segment has generated put together gains on sale of $16.1 million.

“The sale of our sole remaining business office property leased to Wells Fargo was the last stage in our initiative to position our large-high-quality net lease portfolio as 100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} retail,” claimed John P. Albright, President and Chief Govt Officer of Alpine Revenue Residence Have faith in. “The redeployment of the proceeds, which was accomplished in advance of this sale via our order of our not long ago disclosed pharmacy portfolio, establishes Walgreens as our new top rated tenant and meaningfully increases our portfolio’s total weighted typical lease time period and geographic diversity, whilst keeping our sturdy publicity to investment quality tenants.”

About Alpine Revenue Assets Believe in, Inc.

Alpine Revenue Assets Have faith in, Inc. (NYSE: PINE) is a publicly traded real estate financial commitment rely on that acquires, owns and operates a portfolio of high-excellent internet leased industrial cash flow houses.

We really encourage you to overview our most new investor presentation which is accessible on our site at http://www.alpinereit.com.

Safe Harbor

This press launch may well have “forward-looking statements.” Forward-seeking statements include things like statements that might be determined by words these kinds of as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and related references to potential intervals, or by the inclusion of forecasts or projections. Forward-searching statements are centered on the Company’s recent expectations and assumptions concerning capital marketplace ailments, the Company’s business, the overall economy and other foreseeable future problems. For the reason that ahead-on the lookout statements relate to the foreseeable future, by their nature, they are issue to inherent uncertainties, hazards and variations in instances that are challenging to forecast. As a end result, the Company’s true effects may possibly differ materially from those people contemplated by the ahead-wanting statements. Important components that could trigger true effects to differ materially from those people in the ahead-looking statements incorporate common business and economic circumstances, continued volatility and uncertainty in the credit history markets and broader economical markets, dangers inherent in the serious estate company, which include tenant defaults, likely legal responsibility relating to environmental matters, illiquidity of serious estate investments and probable damages from all-natural disasters, the effects of the COVID-19 Pandemic and its variants on the Company’s business and the company of its tenants and the impact on the U.S. economy and current market conditions frequently, other things affecting the Company’s company or the organization of its tenants that are over and above the command of the Firm or its tenants, and the elements established forth under “Risk Factors” in the Company’s Once-a-year Report on Kind 10-K for the 12 months finished December 31, 2021 and other challenges and uncertainties talked over from time to time in the Company’s filings with the U.S. Securities and Trade Commission. Any forward-hunting statement manufactured in this push release speaks only as of the date on which it is made. The Business undertakes no obligation to publicly update or revise any ahead-looking assertion, whether or not as a consequence of new data, foreseeable future developments or or else.

Call:

Matthew M. Partridge
Senior Vice President, Main Financial Officer & Treasurer
(407) 904-3324
mpartridge@alpinereit.com

Alpine Income Property Trust Provides Portfolio Update and Announces Record 2021 Transaction Activity

January 6, 2022

by Jerry Schmidt Investment Property

Winter PARK, Fla., Jan. 05, 2022 (World NEWSWIRE) — Alpine Income Residence Have faith in, Inc. (NYSE: PINE) (the “Company”) now furnished a portfolio update and announced its record 2021 acquisition and disposition things to do.

2021 Acquisition Highlights

All through the yr ended December 31, 2021, the Corporation obtained 68 web lease retail attributes for a full acquisition quantity of $260.3 million, symbolizing a weighted-regular heading-in cash cap fee of 6.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. Acquisitions concluded for the duration of the calendar year experienced a weighted-ordinary remaining lease phrase of 8.2 decades and roughly 37{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of annualized base rents are from a tenant or the guardian of a tenant with an investment decision grade credit history rating.
All through the fourth quarter of 2021, the Company obtained 26 internet lease retail qualities for whole acquisition quantity of $101.6 million, symbolizing a weighted-ordinary going-in cash cap charge of 6.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. Acquisitions concluded in the course of the fourth quarter experienced a weighted-common remaining lease expression of 8.1 decades and roughly 32{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of annualized base rents are from a tenant or the parent of a tenant with an investment decision grade credit rating ranking.
The fourth quarter 2021 acquisitions are located in 11 states, net leased to tenants operating in 10 various retail sectors, which include the home improvement, sporting merchandise, property furnishings, informal eating, greenback store, ease retail outlet and farm & rural supply sectors, and around 34{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of annualized foundation rents are from floor leased homes.

2021 Disposition Highlights

In the course of the yr ended December 31, 2021, the Business marketed 3 web lease properties for complete disposition volume of $28.3 million, at a weighted common exit cap amount of 7.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. The sale of the houses created aggregate gains of $9.7 million.
For the duration of the fourth quarter of 2021, the Firm offered its one tenant office homes positioned in Orlando, Florida internet leased to Hilton Grand Vacations for $24.5 million, representing an exit cap amount of 7.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}.

Yr-Stop 2021 Portfolio Update

As of December 31, 2021, the Company owned 113 net lease attributes that ended up 100{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} occupied and produced $36.9 million of annualized based hire.
The Company’s portfolio at yr-close 2021 had a weighted-ordinary remaining lease time period of 7.8 yrs, somewhere around 9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of annualized foundation rents are from floor leased attributes and about 45{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of annualized foundation rents are from a tenant or the mum or dad of a tenant with an investment decision grade credit score.

“I’m very pleased with our robust end to a very productive year,” explained John P. Albright, President and Main Executive Officer of Alpine Profits Property Believe in. “The fourth quarter signifies our major quarter of acquisition quantity to-date and associated a selection of beautiful prospects, such as a floor lease portfolio that created up more than just one 3rd of our overall volume. We’re encouraged by the power of our pipeline and confident our portfolio’s solid demographics, very well-executing and defensive retail sectors and interesting actual estate fundamentals placement us for balance and growth as we head into 2022.”

About Alpine Income Property Belief, Inc.

Alpine Profits Assets Have faith in, Inc. (NYSE: PINE) is a publicly traded authentic estate financial commitment belief that acquires, owns and operates a portfolio of higher-excellent net leased homes. For extra data on the Enterprise, be sure to check out www.alpinereit.com.

Harmless Harbor

This press launch could consist of “forward-on the lookout statements.” Forward-seeking statements contain statements that may well be determined by text these types of as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and identical references to long run periods, or by the inclusion of forecasts or projections. Ahead-hunting statements are based mostly on the Company’s recent anticipations and assumptions pertaining to capital industry conditions, the Company’s enterprise, the economic system and other upcoming circumstances. Since ahead-seeking statements relate to the long term, by their mother nature, they are subject to inherent uncertainties, threats and improvements in circumstances that are difficult to predict. As a result, the Company’s genuine outcomes may well vary materially from individuals contemplated by the forward-searching statements. Significant factors that could induce real success to differ materially from those people in the forward-hunting statements consist of typical enterprise and economic conditions, continued volatility and uncertainty in the credit rating markets and broader economical markets, challenges inherent in the true estate small business, such as tenant defaults, possible liability relating to environmental matters, illiquidity of serious estate investments and opportunity damages from all-natural disasters, the impact of the COVID-19 Pandemic and its variants on the Company’s enterprise and the business enterprise of its tenants and the influence on the U.S. financial state and market place disorders commonly, other things impacting the Company’s business enterprise or the company of its tenants that are outside of the manage of the Firm or its tenants, and the elements established forth underneath “Risk Factors” in the Company’s Once-a-year Report on Sort 10-K for the yr ended December 31, 2020 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Fee. Any forward-looking assertion made in this press launch speaks only as of the date on which it is designed. The Business undertakes no obligation to publicly update or revise any forward-on the lookout assertion, no matter if as a consequence of new info, future developments or normally.

The Company defines “annualized base rent” as the annualized straight-line in-area base hire demanded by the tenant’s lease as of December 31, 2021. ABR is a non-GAAP fiscal measure. We imagine this non-GAAP financial measure is practical to traders since it is a extensively accepted field measure utilised by analysts and investors to compare the real estate portfolios and running general performance of serious estate investment trusts.


Call:	Matthew M. Partridge Senior Vice President, Main Money Officer & Treasurer (386) 944-5643 mpartridge@alpinereit.com

Alpine Income Property Trust Increases Quarterly Dividend by 5.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and Declares Dividend for the Fourth Quarter 2021

November 23, 2021

by Jerry Schmidt Investment Property

DAYTONA BEACH, Fla., Nov. 22, 2021 (GLOBE NEWSWIRE) — Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company”) announced today that its Board of Directors has authorized, and the Company has declared a 5.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} increase in the Company’s quarterly cash dividend to $0.27 per share of common stock for the fourth quarter of 2021 as compared to its previous quarterly cash dividend of $0.255 per share of common stock. The dividend is payable on December 30, 2021 to stockholders of record as of the close of business on December 9, 2021. The ex-dividend date for the fourth quarter 2021 cash dividend is December 8, 2021. The fourth quarter 2021 cash dividend represents a 22.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} year-over-year increase as compared to the Company’s fourth quarter 2020 cash dividend and an annualized yield of approximately 6.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} based on the closing price of the common stock on November 19, 2021.

About Alpine Income Property Trust, Inc.

Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality single-tenant net leased commercial income properties.

We encourage you to review our most recent investor presentation which is available on our website at http://www.alpinereit.com.

Safe Harbor

This press release may contain “forward-looking statements.” Forward-looking statements include statements that may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include general business and economic conditions, continued volatility and uncertainty in the credit markets and broader financial markets, risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments and potential damages from natural disasters, the impact of the COVID-19 Pandemic on the Company’s business and the business of its tenants and the impact on the U.S. economy and market conditions generally, other factors affecting the Company’s business or the business of its tenants that are beyond the control of the Company or its tenants, and the factors set forth under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Contact:

Matthew M. Partridge
Senior Vice President, Chief Financial Officer & Treasurer
(386) 944-5643
mpartridge@alpinereit.com

3 Reasons I Just Bought Alpine Income Property Trust

November 8, 2021

by Jerry Schmidt Investment Property

Alpine Income Home Rely on (NYSE:PINE) is a genuine estate expense trust (REIT) with a market place cap of just $200 million, which is a great deal scaled-down than what I generally go with when acquiring any inventory. I generally prefer diversified names as perfectly, and this REIT is concentrated on retail properties. In other text, I just broke some of my own significant policies to purchase Alpine. I didn’t make that alternative evenly, nevertheless. Here are the 3 reasons for this uncharacteristic shift.

1. Massive and sluggish vs. small and quickly

I very own W.P. Carey (NYSE:WPC), one of the premier and most diversified (sector-clever and geographically) net lease REITs around. I also owned VEREIT, which was just acquired by Realty Money (NYSE:O), making a enormous web lease REIT with major publicity to retail houses, a small bit of industrial, and a increasing foreign existence. I am fond of the web lease tactic in which these landlords individual one-tenant homes when the tenant is dependable for most of the running expenditures. Usually, it really is a very low-hazard method.

A person drawing a rising line over a bar chart that is going up.

Impression source: Getty Images.

The only issue is that W.P. Carey ($14.5 billion current market cap) and Realty Profits ($28 billion) are both lumbering giants, which signifies gradual and regular development. That is not lousy, for each se, but I felt as if including a progress-oriented REIT centered on the internet lease sector would aid solidify my portfolio. Alpine went general public in late 2019 (a lot more on this in a next) with a portfolio of just 20 homes as of the 3rd quarter of 2021, it experienced virtually 90. It is obviously growing rapid.

2. Enter the crucible

One of the things I like to see is a firm that has confronted adversity, which was a single of my large problems about Shop Funds for a while. That internet lease REIT went general public for the duration of a bull marketplace and did not deal with significant headwinds till 2020’s pandemic. Alpine failed to get so lucky. It went general public in late 2019, just months prior to a big economic setback. Having said that, it came via the period in relative stride, with no important complications gathering rents. It also continued to grow its portfolio through the pandemic calendar year.

It would have been beneficial for traders experienced Alpine experienced a lengthier observe file to look at from just before the coronavirus pandemic strike. On the other hand, it really is impossible to counsel that management hasn’t experienced to deal with adversity. So, I consider the management group examined. I is not going to come to feel as assured in the following downturn as I will with W.P. Carey or Realty Revenue, but I also is not going to be rather as worried as I would with a REIT that had only operated all through fantastic markets.

PINE Dividend Generate knowledge by YCharts

3. Actively playing in a unique sector

The other variable that interests me about Alpine is that for the reason that of its modest size, it is not competing with the internet lease industry’s bigger players. It can consider the time to obtain and obtain tiny, 1-off houses that can give a sizeable boost to its best and base lines. The opposition for these properties tends to be nearby, private investors who don’t have the same access to capital as a publicly traded REIT. That offers Alpine a leg up as it builds its portfolio and signifies that it really is actually doing the job in a totally distinctive current market segment from giants like W.P. Carey and Realty Money.

In addition, Alpine won’t have legacy assets in marketplaces that may be mature or going through weak spot from area financial decrease or slipping inhabitants. It can, literally, aim on markets that are powerful right now. In point, approximately fifty percent of its rents come from higher growth states, together with Texas, Florida, and Arizona.

Nothing is best

So, I purchased Alpine Money House Have confidence in as a way to include some development to my internet lease publicity, taking convenience in the REIT’s little dimensions, the market place examination it endured in 2020, and that it occupies a distinct specialized niche than the large internet lease REITs I have. It now gives a generous 5.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} dividend yield that is presently backed by 4 improves. And it is priced at a lower price when compared to bigger gamers, largely thanks to its compact sizing and quick monitor document. So, both equally value and cash flow traders may possibly want to choose a glimpse.

That stated, it is externally managed by CTO Realty Advancement (NYSE: CTO) and is in the middle of selling two office environment assets that account for about 18{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} of its rents. The plan is to internalize management as soon as Alpine gets ample scale. But right up until then, that will require paying focus to probable conflicts of interest. For illustration, the manager’s payment is centered on “total fairness” and, in accordance to Alpine’s once-a-year report, that could be greater by dilutive stock product sales. I am assured that the REIT will use the income from the office environment profits to spend in retail property, with a modest 70{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} funds from functions (FFO) payout ratio supplying it enough area to guidance the dividend through the process. Even now, there is certainly uncertainty right here that has to be monitored.

All in, this is no slam dunk investment for me, and that tends to make me a little bit nervous. But I’m eager to observe intently as Alpine executes its expansion ideas and, ideally, turns into a more critical portion of my portfolio as it does.

This post represents the belief of the writer, who might disagree with the “official” suggestion placement of a Motley Idiot high quality advisory support. We’re motley! Questioning an investing thesis — even a single of our individual — allows us all imagine critically about investing and make choices that aid us develop into smarter, happier, and richer.