Alpine Income Property Trust, Inc. Announces Portfolio Acquisition of Three Single-Tenant Retail Properties Leased to Investment-Grade Rated Tenant Dollar General for Approximately $4.6 Million

Rhea-AI Summary

Alpine Income Property Trust, Inc. (NYSE: PINE) announced the acquisition of a portfolio of three retail properties leased to Dollar General in Maine for approximately $4.6 million, reflecting a 6.85% cap rate. The leases, backed by Dollar General's investment-grade parent entity, have about 13.1 years remaining. This acquisition raises the Company's portfolio total to 43 properties across 30 markets. Year-to-date, Alpine has acquired $94.2 million in properties at an average cap rate of 6.9%.

Positive

• Acquisition of three retail properties enhances portfolio diversity.
• Properties are in long-term leases with a solid tenant (Dollar General).
• Total portfolio now includes 43 properties, indicating market expansion.

Negative

• Acquisition funded through line of credit may increase financial leverage.

DAYTONA BEACH, Fla., Sept. 21, 2020 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company”) announced the acquisition of a portfolio of three single-tenant net-leased retail income properties located in Maine and leased to an affiliate of Dollar General. The leases are guaranteed by the investment grade-rated Dollar General parent entity. The portfolio was purchased for approximately $4.6 million, representing a going-in cap rate of 6.85%. Each of the leases with Dollar General has approximately 13.1 years remaining on its initial lease term. The Company funded the acquisition with the Company’s line of credit. Dollar General is now the Company’s fifth largest tenant as a percentage of annualized base rent.

Including this newly acquired portfolio, the Company’s total portfolio now consists of 43 properties located in 30 markets and 18 states across 16 industries, with a weighted average remaining lease term of 8.6 years. The Company has acquired $94.2 million of single-tenant net leased properties year-to-date with a weighted average going-in cap rate of 6.9%.

About Alpine Income Property Trust, Inc.
Alpine Income Property Trust, Inc. 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 visit our website at 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, 2019 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. 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:	Lisa M. Vorakoun, Vice President & Chief Accounting Officer lvorakoun@alpinereit.com
Phone:	(386) 944-5641

                    

FAQ

What did Alpine Income Property Trust (PINE) acquire?

Alpine acquired three single-tenant retail properties leased to Dollar General in Maine.

What was the acquisition cost of the properties by Alpine Income Property Trust?

The properties were purchased for approximately $4.6 million.

How will the acquisition impact Alpine's portfolio?

The acquisition increases Alpine's total property count to 43 across 30 markets.

What is the cap rate of the newly acquired properties?

The going-in cap rate for the properties is 6.85%.

Who guarantees the leases for the acquired properties?

The leases are guaranteed by the investment-grade-rated parent entity of Dollar General.