Alpine Income Property Trust Announces Sale of Single Tenant Office Property Leased to Wells Fargo

Rhea-AI Summary

Alpine Income Property Trust (NYSE: PINE) announced the sale of its single tenant office property in Hillsboro, Oregon for $38.8 million, realizing a gain of $7.0 million. This sale marks the final step in the company's strategy to transition its portfolio to 100% retail properties. The proceeds from this transaction will support like-kind reverse 1031 exchanges and enhance the portfolio's overall lease term and geographic diversity. The company generated combined gains on sale totaling $16.1 million from this segment exit.

Positive

• Sale of office property for $38.8 million with a $7.0 million gain.
• Transition to a 100% retail portfolio, enhancing strategic focus.
• Increased weighted average lease term and tenant diversification.

Negative

• None.

WINTER PARK, Fla., April 14, 2022 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company”) today announced the disposition of its single tenant office property located in Hillsboro, Oregon and net leased to Wells Fargo (the “Property”). The Property has 3.7 years of remaining lease term and was sold for $38.8 million, generating a gain on sale of $7.0 million. The Company utilized the proceeds from the sale of the Property as part of like-kind reverse 1031 exchanges. The Company’s exit of its office property segment has generated combined gains on sale of $16.1 million.

“The sale of our sole remaining office property leased to Wells Fargo was the final step in our initiative to position our high-quality net lease portfolio as 100% retail,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. “The redeployment of the proceeds, which was done in advance of this sale through our purchase of our recently disclosed pharmacy portfolio, establishes Walgreens as our new top tenant and meaningfully improves our portfolio’s overall weighted average lease term and geographic diversity, while maintaining our robust exposure to investment grade tenants.”

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 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 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.

Contact:

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

FAQ

What is the significance of Alpine Income Property Trust's recent property sale?

The sale of the office property for $38.8 million allows Alpine to fully transition its portfolio to retail, improving lease terms and tenant diversity.

How much profit did Alpine Income Property Trust gain from the property sale?

Alpine generated a gain of $7.0 million from the sale of the Hillsboro property.

What will Alpine Income Property Trust do with the proceeds from the property sale?

The proceeds will be utilized for like-kind reverse 1031 exchanges to further enhance their retail portfolio.

What has been the total gain from the office property segment exit for Alpine Income Property Trust?

The total gain from exiting the office property segment amounted to $16.1 million.