Alpine Income Property Trust Announces Updated Year-To-Date 2024 Transaction Activity
Alpine Income Property Trust (NYSE: PINE) has announced updated transaction activities for 2024. The company acquired four net leased retail properties for $37.5 million at a weighted average initial cap rate of 8.8%. Three properties in Tampa Bay, FL were purchased for $31.4 million as a sale-leaseback transaction with a 9.0% initial cap rate and 30-year lease terms. The fourth property in Richmond, VA was bought for $6.1 million, leased to Golf Galaxy and guaranteed by Dick's Sporting Goods.
Year-to-date investment activity totaled $66.4 million at a 9.2% weighted average initial yield. The company's weighted average remaining lease term increased from 6.6 years to 8.35 years. Additionally, PINE sold two properties for $15.6 million at a 5.7% exit cap rate, bringing total dispositions to $35.8 million at a 6.8% yield.
Alpine Income Property Trust (NYSE: PINE) ha annunciato le attività transazionali aggiornate per il 2024. L'azienda ha acquisito quattro proprietà commerciali con affitto netto per 37,5 milioni di dollari a un tasso di capitalizzazione iniziale medio ponderato dell'8,8%. Tre proprietà a Tampa Bay, in Florida, sono state acquistate per 31,4 milioni di dollari tramite una transazione di vendita e locazione con un tasso di capitalizzazione iniziale del 9,0% e termini di locazione di 30 anni. La quarta proprietà a Richmond, in Virginia, è stata acquistata per 6,1 milioni di dollari, affittata a Golf Galaxy e garantita da Dick's Sporting Goods.
Fino ad oggi, l'attività di investimento ha totalizzato 66,4 milioni di dollari con un rendimento iniziale medio ponderato del 9,2%. Il termine medio ponderato della locazione rimanente dell'azienda è aumentato da 6,6 anni a 8,35 anni. Inoltre, PINE ha venduto due proprietà per 15,6 milioni di dollari a un tasso di capitalizzazione di uscita del 5,7%, portando il totale delle cessioni a 35,8 milioni di dollari con un rendimento del 6,8%.
Alpine Income Property Trust (NYSE: PINE) ha anunciado actividades transaccionales actualizadas para 2024. La empresa adquirió cuatro propiedades minoristas con arrendamiento neto por 37.5 millones de dólares a una tasa de capitalización inicial media ponderada del 8.8%. Tres propiedades en Tampa Bay, FL, fueron compradas por 31.4 millones de dólares como parte de una transacción de venta y arrendamiento con una tasa de capitalización inicial del 9.0% y plazos de arrendamiento de 30 años. La cuarta propiedad en Richmond, VA, se adquirió por 6.1 millones de dólares, arrendada a Golf Galaxy y garantizada por Dick's Sporting Goods.
La actividad de inversión acumulada hasta la fecha totalizó 66.4 millones de dólares con un rendimiento inicial medio ponderado del 9.2%. El plazo de arrendamiento medio ponderado restante de la empresa aumentó de 6.6 años a 8.35 años. Además, PINE vendió dos propiedades por 15.6 millones de dólares a una tasa de capitalización de salida del 5.7%, elevando el total de disposiciones a 35.8 millones de dólares con un rendimiento del 6.8%.
알파인 수익 자산 신탁(뉴욕 증권 거래소: PINE)이 2024년 업데이트된 거래 활동을 발표했습니다. 이 회사는 3750만 달러에 넷 리스 상업용 부동산 4개를 인수했으며, 가중 평균 초기 자본화율은 8.8%입니다. 플로리다주 탐파 베이에 위치한 세 개의 부동산은 3140만 달러에 매입되었으며, 9.0%의 초기 자본화율 및 30년 임대 조건으로 판매-임대 거래가 이루어졌습니다. 버지니아주 리치몬드의 네 번째 부동산은 610만 달러에 매입되어 골프 갤럭시에 임대되었고, 딕스 스포츠가 보증하였습니다.
올해 현재까지의 투자 활동은 6640만 달러에 달하며, 가중 평균 초기 수익률은 9.2%입니다. 회사의 가중 평균 남은 임대 기간은 6.6년에서 8.35년으로 증가했습니다. 또한, PINE은 두 개의 부동산을 매각했습니다, 1560만 달러에 판매하며 출구 자본화율 5.7%로 총 처분 금액은 3580만 달러에 수익률은 6.8%에 이릅니다.
Alpine Income Property Trust (NYSE: PINE) a annoncé des activités de transaction mises à jour pour 2024. L'entreprise a acquis quatre propriétés commerciales sous bail net pour 37,5 millions de dollars avec un taux de capitalisation initial moyen pondéré de 8,8%. Trois propriétés à Tampa Bay, en Floride, ont été achetées pour 31,4 millions de dollars dans le cadre d'une transaction de vente-bail avec un taux de capitalisation initial de 9,0% et des termes de bail de 30 ans. La quatrième propriété à Richmond, en Virginie, a été achetée pour 6,1 millions de dollars, louée à Golf Galaxy et garantie par Dick's Sporting Goods.
Depuis le début de l'année, l'activité d'investissement s'est élevée à 66,4 millions de dollars avec un rendement initial moyen pondéré de 9,2%. La durée restante moyenne pondérée de bail de l'entreprise est passée de 6,6 ans à 8,35 ans. De plus, PINE a vendu deux propriétés pour 15,6 millions de dollars avec un taux de capitalisation de sortie de 5,7%, portant le total des cessions à 35,8 millions de dollars avec un rendement de 6,8%.
Alpine Income Property Trust (NYSE: PINE) hat aktualisierte Transaktionsaktivitäten für 2024 angekündigt. Das Unternehmen erwarb vier netto vermietete Einzelhandelsimmobilien für 37,5 Millionen Dollar mit einer gewichteten durchschnittlichen Anfangskapitalisierungsrate von 8,8%. Drei Immobilien in Tampa Bay, FL, wurden für 31,4 Millionen Dollar als Sale-Leaseback-Transaktion mit einer Anfangskapitalisierungsrate von 9,0% und 30-jährigen Mietverträgen erworben. Die vierte Immobilie in Richmond, VA, wurde für 6,1 Millionen Dollar gekauft, an Golf Galaxy vermietet und von Dick's Sporting Goods garantiert.
Die Investitionstätigkeit seit Jahresbeginn belief sich auf insgesamt 66,4 Millionen Dollar mit einer gewichteten durchschnittlichen Anfangsrendite von 9,2%. Die gewichtete durchschnittliche verbleibende Mietdauer des Unternehmens stieg von 6,6 Jahren auf 8,35 Jahre. Darüber hinaus verkaufte PINE zwei Immobilien für 15,6 Millionen Dollar mit einer Exit-Kapitalisierungsrate von 5,7%, womit sich die Gesamtabgänge auf 35,8 Millionen Dollar mit einer Rendite von 6,8% belaufen.
- Acquired four properties for $37.5 million at an 8.8% weighted average initial cap rate
- Year-to-date investment activity totaled $66.4 million at a 9.2% weighted average initial yield
- Weighted average remaining lease term increased from 6.6 years to 8.35 years
- Sold two properties for $15.6 million at a 5.7% exit cap rate
- Total dispositions reached $35.8 million at a 6.8% yield
- None.
Alpine Income Property Trust's recent transactions reveal a strategic shift towards higher-yielding assets and longer lease terms, potentially enhancing the REIT's income stability and growth prospects. The acquisition of four properties at a weighted average initial cap rate of 8.8% is notably above market averages, suggesting accretive deals that could boost the trust's net operating income.
The sale-leaseback transaction with Beachside Hospitality Group is particularly intriguing. With a 30-year lease term and 2.0% annual escalations, this deal provides long-term, inflation-protected cash flows. However, investors should note the concentration risk in the Tampa Bay area and the reliance on a single tenant's performance in the hospitality sector.
The disposition of two properties at a 5.7% exit cap rate compared to the 9.2% yield on new investments demonstrates effective capital recycling. This spread of approximately 350 basis points should significantly enhance the trust's earnings potential. The extension of the weighted average remaining lease term from 6.6 years to 8.35 years further solidifies the income stream, potentially leading to a more favorable risk profile and possibly better financing terms.
While the overall strategy appears sound, investors should monitor the trust's tenant diversification and geographic concentration, especially given the significant investment in the Tampa Bay area. The Bass Pro Shops takeover of the Camping World lease in Hermantown is a positive development, potentially upgrading the tenant quality without disrupting cash flow.
Alpine Income Property Trust's recent transactions offer valuable insights into the current state of the net lease market. The ability to acquire properties at cap rates approaching 9% in the current environment is remarkable, suggesting either a softening in certain retail segments or the company's adept negotiation skills in off-market deals.
The sale-leaseback transaction with Beachside Hospitality Group is particularly noteworthy. The 9.0% initial cap rate for properties in the desirable Tampa Bay market indicates that some operators in the hospitality sector may be seeking to unlock real estate value to fund operations or expansion. This could present opportunities for other REITs in the space.
The disposition of Lowe's and Walgreens properties at a 5.7% cap rate aligns with the premium typically associated with investment-grade tenants in the net lease space. However, the significant spread between acquisition and disposition cap rates suggests a potential shift in investor preferences towards higher yields, possibly driven by rising interest rates and economic uncertainties.
The extension of the weighted average lease term is a important move in the current market. With economic headwinds potentially on the horizon, longer lease terms provide a buffer against potential market downturns. This strategy may become increasingly common among net lease REITs as they seek to mitigate risks in an uncertain economic environment.
The Bass Pro Shops takeover of the Camping World lease is an interesting development that reflects the ongoing evolution in the outdoor recreation retail space. This transition could signal broader trends in retail real estate, where stronger brands are expanding by taking over locations from struggling or repositioning competitors.
WINTER PARK, Fla., Aug. 02, 2024 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company”) today announced updated year-to-date 2024 investment and disposition activities.
2024 Investment Activity
- During the third quarter, the Company acquired four net leased retail properties for
$37.5 million at a weighted average initial cap rate of8.8% . Three properties, all located in the greater Tampa Bay, FL area, were purchased for$31.4 million as a sale-leaseback transaction with a subsidiary of Beachside Hospitality Group at an initial cap rate of9.0% . The leases have a lease term of 30 years and include2.0% annual escalations. The fourth property, an outparcel to the West Broad Village shopping center in Richmond, VA, was purchased for$6.1 million and is100% leased to Golf Galaxy and guaranteed by Dick’s Sporting Goods. - The Company’s year-to-date total investment activity as of August 2, 2024, which includes its acquisition and structured investment activities, totaled
$66.4 million at a weighted average initial investment yield of9.2% . - After adjusting for the announced transaction activity, PINE’s weighted average remaining lease term has increased from 6.6 years as of June 30, 2024, to approximately 8.35 years as of August 2, 2024.
- Finally, the Company’s property in Hermantown, MN that was leased to Camping World was assigned to Bass Pro Shops. Bass Pro Shops intends to complete full renovation of the existing property and open in mid-to-late 2025. There will be no impact to the required rental payments during the renovation.
2024 Disposition Activity
- During the third quarter, the Company sold two net leased retail properties, leased to Lowe’s Home Improvement and Walgreens for a total disposition volume of
$15.6 million , at a weighted average exit cap rate of5.7% . - The Company’s year-to-date disposition volume as of August 2, 2024, inclusive of property and structured investment sales totals
$35.8 million at yield of6.8% .
“We are pleased to have acquired these attractive net leased properties at very accretive yields to our recycled asset sales while increasing our weighted average lease term,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust.
About Alpine Income Property Trust, Inc.
Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that seeks to deliver attractive risk-adjusted returns and dependable cash dividends by investing in, owning and operating a portfolio of single tenant net leased properties that are predominately leased to high-quality publicly traded and credit-rated tenants.
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, credit risk associated with the Company investing in first mortgage investments, illiquidity of real estate investments and potential damages from natural disasters, the impact of epidemics or pandemics (such as the COVID-19 Pandemic and its variants) on the Company’s business and the business of its tenants and the impact of such epidemics or pandemics 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, 2023 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: | Philip R. Mays Senior Vice President, Chief Financial Officer & Treasurer (407) 904-3324 pmays@alpinereit.com |
FAQ
What was Alpine Income Property Trust's (PINE) total investment activity in 2024 as of August 2?
How many properties did PINE acquire in the third quarter of 2024?
What was the weighted average initial cap rate for PINE's acquisitions in Q3 2024?
How did PINE's weighted average remaining lease term change after the announced transactions?
