Alpine Income Property Trust Reports Third Quarter 2024 Operating Results
Alpine Income Property Trust (NYSE: PINE) reported its Q3 2024 results with a net income per diluted share of $0.21. Funds from Operations (FFO) rose by 21.6% to $0.45 per diluted share, and Adjusted Funds from Operations (AFFO) increased by 15.8% to $0.44 per diluted share. The company raised $11.1 million via its ATM stock offering and acquired four retail properties for $37.5 million at an 8.8% cap rate. PINE sold eight retail properties for $48.6 million, generating $3.4 million in gains. The weighted average lease term increased to 8.8 years. The quarterly dividend was increased to $0.28 per share. Full-year 2024 FFO guidance was raised to $1.67-$1.69 per share, and AFFO guidance to $1.69-$1.71 per share. Total revenues for Q3 2024 were $13.5 million, up 16.6% YoY. Net income attributable to PINE was $3.1 million, a 468% increase YoY. Year-to-date revenues were $38.4 million, up 12.8% YoY. Investment activities totaled $55.3 million in Q3 2024 at a 9.2% yield.
Alpine Income Property Trust (NYSE: PINE) ha riportato i risultati del terzo trimestre 2024 con un reddito netto per azione diluita di $0,21. I Fondi dalle Operazioni (FFO) sono aumentati del 21,6% a $0,45 per azione diluita, mentre i Fondi dalle Operazioni Regolati (AFFO) sono cresciuti del 15,8% a $0,44 per azione diluita. L'azienda ha raccolto $11,1 milioni tramite l'offerta di azioni ATM e ha acquisito quattro proprietà commerciali per $37,5 milioni con un tasso di capitalizzazione dell'8,8%. PINE ha venduto otto proprietà commerciali per $48,6 milioni, generando $3,4 milioni di guadagni. La durata media ponderata dei contratti di locazione è aumentata a 8,8 anni. Il dividendo trimestrale è stato aumentato a $0,28 per azione. Le stime FFO per l'intero anno 2024 sono state elevate a $1,67-$1,69 per azione, e le stime AFFO a $1,69-$1,71 per azione. Le entrate totali per il terzo trimestre 2024 sono state di $13,5 milioni, con un aumento del 16,6% su base annua. Il reddito netto attribuibile a PINE è stato di $3,1 milioni, un aumento del 468% su base annua. Le entrate dall'inizio dell'anno ammontano a $38,4 milioni, con un incremento del 12,8% su base annua. Le attività di investimento sono ammontate a $55,3 milioni nel terzo trimestre 2024 con un rendimento del 9,2%.
Alpine Income Property Trust (NYSE: PINE) reportó sus resultados del tercer trimestre de 2024, con un ingreso neto por acción diluida de $0,21. Los Fondos de Operaciones (FFO) aumentaron un 21,6% a $0,45 por acción diluida, mientras que los Fondos de Operaciones Ajustados (AFFO) crecieron un 15,8% a $0,44 por acción diluida. La compañía recaudó $11,1 millones a través de su oferta de acciones ATM y adquirió cuatro propiedades comerciales por $37,5 millones con una tasa de capitalización del 8,8%. PINE vendió ocho propiedades comerciales por $48,6 millones, generando $3,4 millones en ganancias. La duración promedio ponderada del arrendamiento aumentó a 8,8 años. El dividendo trimestral se incrementó a $0,28 por acción. La guía de FFO para todo el año 2024 se elevó a $1,67-$1,69 por acción, y la guía de AFFO a $1,69-$1,71 por acción. Los ingresos totales para el tercer trimestre de 2024 fueron de $13,5 millones, un aumento del 16,6% interanual. El ingreso neto atribuible a PINE fue de $3,1 millones, un aumento del 468% interanual. Los ingresos hasta la fecha fueron de $38,4 millones, un incremento del 12,8% interanual. Las actividades de inversión totalizaron $55,3 millones en el tercer trimestre de 2024, con un rendimiento del 9,2%.
알프인 소득 자산 신탁 (NYSE: PINE)은 2024년 3분기 결과를 보고하며 희석 주당 순이익이 $0.21이라고 발표했습니다. 운영에서 발생한 자금 (FFO)은 21.6% 증가하여 희석 주당 $0.45에 도달하였고, 조정 운영 자금 (AFFO)은 15.8% 증가하여 희석 주당 $0.44가 되었습니다. 이 회사는 ATM 주식 공모를 통해 1,110만 달러를 모금하였고, 3,750만 달러에 네 개의 소매 부동산을 인수하였으나, 자본화율은 8.8%입니다. PINE은 4,860만 달러에 여덟 개의 소매 부동산을 판매하면서 340만 달러의 이익을 창출했습니다. 가중 평균 임대 기간은 8.8년으로 증가했습니다. 분기 배당금은 주당 $0.28로 인상되었습니다. 2024년 전체 연도 FFO 가이던스는 주당 $1.67-$1.69로 상향 조정되었고, AFFO 가이던스는 주당 $1.69-$1.71로 조정되었습니다. 2024년 3분기의 총 수익은 1,350만 달러로, 전년 대비 16.6% 증가했습니다. PINE에 귀속된 순이익은 310만 달러로, 전년 대비 468% 증가했습니다. 연간 누적 수익은 3,840만 달러로, 전년 대비 12.8% 증가했습니다. 투자 활동은 2024년 3분기에 5,530만 달러로, 수익률은 9.2%였습니다.
Alpine Income Property Trust (NYSE: PINE) a annoncé ses résultats du troisième trimestre 2024, avec un revenu net par action diluée de 0,21 $. Les fonds provenant des opérations (FFO) ont augmenté de 21,6 % pour atteindre 0,45 $ par action diluée, et les fonds ajustés provenant des opérations (AFFO) ont augmenté de 15,8 % pour atteindre 0,44 $ par action diluée. L'entreprise a levé 11,1 millions de dollars grâce à son offre d'actions ATM et a acquis quatre propriétés commerciales pour 37,5 millions de dollars avec un taux de capitalisation de 8,8 %. PINE a vendu huit propriétés commerciales pour 48,6 millions de dollars, générant un bénéfice de 3,4 millions de dollars. La durée de bail moyenne pondérée a augmenté à 8,8 ans. Le dividende trimestriel a été porté à 0,28 $ par action. Les prévisions FFO pour l'année entière 2024 ont été rehaussées à 1,67 $ - 1,69 $ par action, et les prévisions AFFO à 1,69 $ - 1,71 $ par action. Les revenus totaux pour le troisième trimestre 2024 étaient de 13,5 millions de dollars, en hausse de 16,6 % par rapport à l'année précédente. Le revenu net attribuable à PINE était de 3,1 millions de dollars, représentant une augmentation de 468 % par rapport à l'année précédente. Les revenus depuis le début de l'année s'élevaient à 38,4 millions de dollars, en hausse de 12,8 % par rapport à l'année précédente. Les activités d'investissement totalisaient 55,3 millions de dollars au troisième trimestre 2024, avec un rendement de 9,2 %.
Alpine Income Property Trust (NYSE: PINE) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Nettogewinn von $0,21 je verwässerter Aktie. Die Fonds aus Betrieben (FFO) stiegen um 21,6% auf $0,45 je verwässerter Aktie, und die bereinigten Fonds aus Betrieben (AFFO) erhöhten sich um 15,8% auf $0,44 je verwässerter Aktie. Das Unternehmen hat über sein ATM-Aktienangebot 11,1 Millionen Dollar gesammelt und vier Einzelhandelsimmobilien für 37,5 Millionen Dollar zu einem Kapitalisierungszins von 8,8% erworben. PINE verkaufte acht Einzelhandelsimmobilien für 48,6 Millionen Dollar und erzielte einen Gewinn von 3,4 Millionen Dollar. Die gewichtete durchschnittliche Mietdauer erhöhte sich auf 8,8 Jahre. Die vierteljährliche Dividende wurde auf $0,28 je Aktie angehoben. Die Prognose für FFO für das Gesamtjahr 2024 wurde auf $1,67-$1,69 je Aktie angehoben, und die Prognose für AFFO auf $1,69-$1,71 je Aktie. Die Gesamteinnahmen für das dritte Quartal 2024 betrugen 13,5 Millionen Dollar, was einem Anstieg von 16,6% im Jahresvergleich entspricht. Der den Aktionären von PINE zuzurechnende Nettogewinn betrug 3,1 Millionen Dollar, was einem Anstieg von 468% im Jahresvergleich entspricht. Die Einnahmen seit Jahresbeginn beliefen sich auf 38,4 Millionen Dollar, was einem Anstieg von 12,8% im Jahresvergleich entspricht. Die Investitionstätigkeiten beliefen sich im dritten Quartal 2024 auf 55,3 Millionen Dollar bei einer Rendite von 9,2%.
- Net income per diluted share increased to $0.21.
- FFO per diluted share rose by 21.6% to $0.45.
- AFFO per diluted share increased by 15.8% to $0.44.
- Raised $11.1 million through ATM stock offering.
- Acquired four retail properties for $37.5 million at an 8.8% cap rate.
- Sold eight retail properties for $48.6 million, generating $3.4 million in gains.
- Increased quarterly dividend to $0.28 per share.
- Raised full-year 2024 FFO guidance to $1.67-$1.69 per share.
- Raised full-year 2024 AFFO guidance to $1.69-$1.71 per share.
- Total revenues for Q3 2024 increased by 16.6% YoY to $13.5 million.
- Net income attributable to PINE increased by 468% YoY to $3.1 million.
- None.
Insights
Alpine Income Property Trust's Q3 2024 results show strong performance and strategic growth. Key highlights include:
- Significant earnings growth: FFO per diluted share increased
21.6% to$0.45 , while AFFO per diluted share rose15.8% to$0.44 . - Robust acquisition activity: Acquired 4 properties for
$37.5 million at an attractive8.8% cap rate, enhancing portfolio yield. - Strategic dispositions: Sold 8 properties for
$48.6 million , generating$3.4 million in gains and improving overall portfolio quality. - Improved portfolio metrics: Increased weighted average remaining lease term to 8.8 years from 6.6 years, strengthening long-term stability.
- Dividend increase: Raised quarterly dividend to
$0.28 per share, yielding6.3% . - Guidance upgrade: Raised full-year 2024 FFO and AFFO guidance, reflecting confidence in continued growth.
The company's focus on high-quality tenants (52% investment-grade) and diversified portfolio across 34 states provides stability. The strategic recycling of capital from lower-yielding assets into higher-yield investments demonstrates effective management and potential for continued NOI growth. With a conservative leverage ratio and improved fixed charge coverage, PINE is well-positioned for sustainable growth in the net lease sector.
Alpine Income Property Trust's Q3 results reveal a savvy approach to portfolio management in the net lease REIT sector. The company's strategy of pruning lower-yielding assets and reinvesting in higher-yield properties is paying off, as evidenced by the impressive
The acquisition of four properties at an 8.8% cap rate is particularly noteworthy in the current market environment, where finding attractive yields has been challenging. The
PINE's ability to increase its weighted average remaining lease term to 8.8 years enhances the stability of its cash flows, which is important for maintaining and growing its attractive dividend yield, now at
The raised guidance for 2024 suggests management's confidence in executing its strategy and capitalizing on market opportunities. Investors should view PINE's performance and outlook positively, as it demonstrates the company's ability to create value in a competitive real estate market.
WINTER PARK, Fla., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or “PINE”), an owner and operator of single tenant net leased commercial income properties, today announced its operating results and earnings for the quarter ended September 30, 2024.
Select Highlights
- Net Income per diluted share attributable to the Company of
$0.21 . - Funds from Operations (“FFO”) of
$0.45 per diluted share, an increase of21.6% from the comparable prior year period. - Adjusted Funds from Operations (“AFFO”) of
$0.44 per diluted share, an increase of15.8% from the comparable prior year period. - Raised net proceeds of
$11.1 million under common stock ATM offering program. - Acquired four net leased retail properties for
$37.5 million , at a weighted average initial cash cap rate of8.8% . - Purchased and amended a first mortgage construction loan, secured by a Publix-anchored shopping center and three outparcels, with a total funding commitment of
$17.8 million , of which$10.0 million was funded at closing, at an initial interest rate of10.25% . - Sold eight net leased retail properties, including two leased to Walgreens, for
$48.6 million at a weighted average exit cash cap rate of6.8% , generating aggregate gains of$3.4 million . - Increased the weighted average remaining lease term of the property portfolio to 8.8 years as of September 30, 2024, from 6.6 years as of June 30, 2024.
- Increased quarterly dividend from
$0.27 5 per share to$0.28 per share, representing an annualized yield of6.3% based on the closing price of the Company’s common stock on October 16, 2024. - Raised full year 2024 FFO guidance to a range of
$1.67 t o$1.69 per diluted share. - Raised full year 2024 AFFO guidance to a range of
$1.69 t o$1.71 per diluted share.
“We are pleased to have robust growth in earnings and investments this quarter, while continuing to selectively prune the portfolio by selling lower yielding assets and recycling the proceeds into higher yield assets,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. “Our strategy has again enabled us to raise our earnings and investment guidance for the balance of 2024 while incrementally decreasing leverage.”
Quarterly Operating Results Highlights
The table below provides a summary of the Company’s operating results for the quarter ended September 30, 2024 (in thousands, except per share data):
| Three Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | $ Variance | % Variance | ||||||||||||
| Total Revenues | $ | 13,480 | $ | 11,559 | $ | 1,921 | 16.6 | % | |||||||
| Net Income (Loss) | $ | 3,354 | $ | (939 | ) | $ | 4,293 | 457.2 | % | ||||||
| Net Income (Loss) Attributable to PINE | $ | 3,080 | $ | (837 | ) | $ | 3,917 | 468.0 | % | ||||||
| Net Income (Loss) per Diluted Share Attributable to PINE | $ | 0.21 | $ | (0.05 | ) | $ | 0.26 | 520.0 | % | ||||||
| FFO (1) | $ | 6,690 | $ | 5,867 | $ | 823 | 14.0 | % | |||||||
| FFO per Diluted Share (1) | $ | 0.45 | $ | 0.37 | $ | 0.08 | 21.6 | % | |||||||
| AFFO (1) | $ | 6,649 | $ | 5,932 | $ | 717 | 12.1 | % | |||||||
| AFFO per Diluted Share (1) | $ | 0.44 | $ | 0.38 | $ | 0.06 | 15.8 | % | |||||||
| Dividends Declared and Paid, per Share | $ | 0.280 | $ | 0.275 | $ | 0.005 | 1.8 | % | |||||||
| (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 nine months ended September 30, 2024 (in thousands, except per share data):
| Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | $ Variance | % Variance | ||||||||||||
| Total Revenues | $ | 38,436 | $ | 34,063 | $ | 4,373 | 12.8 | % | |||||||
| Net Income | $ | 3,293 | $ | 2,896 | $ | 397 | 13.7 | % | |||||||
| Net Income Attributable to PINE | $ | 3,024 | $ | 2,582 | $ | 442 | 17.1 | % | |||||||
| Net Income per Diluted Share Attributable to PINE | $ | 0.20 | $ | 0.16 | $ | 0.04 | 25.0 | % | |||||||
| FFO (1) | $ | 19,133 | $ | 17,264 | $ | 1,869 | 10.8 | % | |||||||
| FFO per Diluted Share (1) | $ | 1.29 | $ | 1.10 | $ | 0.19 | 17.3 | % | |||||||
| AFFO (1) | $ | 19,291 | $ | 17,410 | $ | 1,881 | 10.8 | % | |||||||
| AFFO per Diluted Share (1) | $ | 1.30 | $ | 1.11 | $ | 0.19 | 17.1 | % | |||||||
| Dividends Declared and Paid, per Share | $ | 0.830 | $ | 0.825 | $ | 0.005 | 0.6 | % | |||||||
| (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 (Loss) to non-GAAP financial measures, including FFO, FFO per diluted share, AFFO, and AFFO per diluted share. |
Investments
During the three months ended September 30, 2024, the Company acquired four net leased retail properties leased to two tenants for
During the three months ended September 30, 2024, the Company purchased and amended one first mortgage construction loan, secured by a Publix-anchored shopping center and three outparcels located in Charlotte, North Carolina. The loan has a total funding commitment of
During the three months ended September 30, 2024, investment activities, which include the Company’s property and structured investment portfolios, totaled
During the nine months ended September 30, 2024, investment activities, which include the Company’s property and structured investment portfolios, totaled
Dispositions
During the three months ended September 30, 2024, the Company sold eight net lease properties leased to Walgreens (two), LA Fitness, Hobby Lobby, Lowes Home Improvement, Chick-fil-A, Tractor Supply, and Long John Silvers, for total disposition volume of
During the three months ended September 30, 2024, disposition activities, which include the Company’s property and structured investment portfolios, totaled
During the nine months ended September 30, 2024, disposition activities, which include the Company’s property and structured investment portfolios, totaled
Property Portfolio
The Company’s property portfolio (1) consisted of the following as of September 30, 2024:
| Number of Properties | 133 | |
| Square Feet | 3.6 million | |
| Annualized Base Rent | ||
| Weighted Average Remaining Lease Term (2) | 8.8 years | |
| States where Properties are Located | 34 | |
| Occupancy | ||
| % of Annualized Base Rent Attributable to Investment Grade Rated Tenants (3)(4) | ||
| % of Annualized Base Rent Attributable to Credit Rated Tenants (3)(5) | ||
| (1) | For GAAP purposes, the Tampa Properties are accounted for as a financing arrangement and, as such, the related assets and corresponding revenue are included in the Company’s commercial loans and investments on its consolidated balance sheets and consolidated statements of operations. However, for purposes of describing our property portfolio, including for tenant, industry, and state concentrations, the Company includes the Tampa Properties, as they constitute real estate assets for both legal and tax purposes. |
| (2) | Calculation of weighted average remaining lease term does not assume exercise of any tenant purchase options. |
| (3) | 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. |
| (4) | 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-, or NAIC-2 or higher. If applicable, in the event of a split rating between S&P Global Ratings and Moody’s Investors Services, the Company utilizes the higher of the two ratings as its reference point as to whether a tenant is defined as an Investment Grade Rated Tenant. |
| (5) | 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 property portfolio included the following top tenants that represent
| Tenant | Credit Rating (1) | % of Annualized Base Rent | |||
| Dicks Sporting Goods | BBB / Baa2 | 11 | % | ||
| Walgreens | BB / Ba1 | 9 | % | ||
| Beachside Hospitality Group | NR / NR | 9 | % | ||
| Dollar Tree/Family Dollar | BBB / Baa2 | 8 | % | ||
| Lowe's | BBB+ / Baa1 | 7 | % | ||
| Best Buy | BBB+ / A3 | 5 | % | ||
| Dollar General | BBB / Baa2 | 5 | % | ||
| Walmart | AA / Aa2 | 4 | % | ||
| At Home | CCC / Caa3 | 3 | % | ||
| Bass Pro Shops | BB / Ba3 | 3 | % | ||
| Home Depot | A / A2 | 3 | % | ||
| Kohl's | BB / Ba2 | 2 | % | ||
| Burlington | BB+ / Ba1 | 2 | % | ||
| Other | 26 | % | |||
| Total | 100 | % | |||
| Any differences are a result of rounding. | |
| (1) | Credit Rating is the available rating from S&P Global Ratings and/or Moody’s Investors Service, as applicable, as of September 30, 2024. |
The Company’s property portfolio consisted of the following industries as of September 30, 2024:
| Industry | % of Annualized Base Rent | ||
| Sporting Goods | 17 | % | |
| Dollar Stores | 13 | % | |
| Home Improvement | 11 | % | |
| Pharmacy | 10 | % | |
| Casual Dining | 10 | % | |
| Home Furnishings | 7 | % | |
| Consumer Electronics | 7 | % | |
| Grocery | 4 | % | |
| Entertainment | 4 | % | |
| Off-Price Retail | 4 | % | |
| General Merchandise | 3 | % | |
| Automotive Parts | 2 | % | |
| Convenience Store | 2 | % | |
| Office Supplies | 1 | % | |
| Health & Fitness | 1 | % | |
| Specialty Retail | 1 | % | |
| Farm & Rural Supply | 1 | % | |
| Quick Service Restaurant | 1 | % | |
| Pet Supplies | < 1 | % | |
| Other (1) | < 1 | % | |
| Total - 23 Industries | 100 | % | |
| Any differences are a result of rounding. | |
| (1) | Includes four industries collectively representing less than |
The Company’s property portfolio included properties in the following states as of September 30, 2024:
| State | % of Annualized Base Rent | ||
| New Jersey | 11 | % | |
| Florida | 11 | % | |
| New York | 8 | % | |
| Illinois | 7 | % | |
| Michigan | 7 | % | |
| Texas | 7 | % | |
| Ohio | 7 | % | |
| Georgia | 4 | % | |
| Minnesota | 4 | % | |
| West Virginia | 3 | % | |
| Alabama | 2 | % | |
| Kansas | 2 | % | |
| Arizona | 2 | % | |
| Louisiana | 2 | % | |
| Massachusetts | 2 | % | |
| Missouri | 2 | % | |
| Maryland | 2 | % | |
| Nevada | 2 | % | |
| Wisconsin | 2 | % | |
| South Carolina | 2 | % | |
| Pennsylvania | 1 | % | |
| Virginia | 1 | % | |
| Arkansas | 1 | % | |
| Connecticut | 1 | % | |
| New Mexico | 1 | % | |
| Indiana | 1 | % | |
| Nebraska | 1 | % | |
| Oklahoma | 1 | % | |
| Maine | 1 | % | |
| North Carolina | 1 | % | |
| Washington | 1 | % | |
| Mississippi | < 1 | % | |
| California | < 1 | % | |
| Kentucky | < 1 | % | |
| Total | 100 | % | |
| Any differences are a result of rounding. |
Capital Markets and Balance Sheet
During the quarter ended September 30, 2024, the Company completed the following notable capital markets activity:
- Issued 620,176 common shares under its ATM offering program at a weighted average gross price of
$18.09 per share, for total net proceeds of$11.1 million .
The following table provides a summary of the Company’s long-term debt as of September 30, 2024:
| Face Value Debt (in thousands) | Stated Interest Rate | Wtd. Avg. Rate as of September 30, 2024 | Maturity Date | ||||||||
| Credit Facility (1) | $ | 79,500 | SOFR + [ | 5.31 | % | January 2027 | |||||
| 2026 Term Loan (2) | 100,000 | SOFR + [ | 3.50 | % | May 2026 | ||||||
| 2027 Term Loan (3) | 100,000 | SOFR + [ | 2.58 | % | January 2027 | ||||||
| Total Debt/Weighted-Average Rate | $ | 279,500 | 3.68 | % | |||||||
| (1) | As of September 30, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of |
| (2) | As of September 30, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of |
| (3) | As of September 30, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of |
The Credit Facility has commitments for up to
As of September 30, 2024, the Company’s net debt to Pro Forma Adjusted EBITDA was 6.9 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 3.4 times. As of September 30, 2024, the Company’s net debt to total enterprise value was
As of September 30, 2024, the Company held a
Dividend
On August 20, 2024, the Company announced a cash dividend for the third quarter of 2024 of
2024 Outlook
The Company is increasing its FFO, AFFO, and investments outlook for 2024 to take into account its year-to-date performance. The Company’s outlook for 2024 assumes continued stability in economic activity, stable or positive business trends related to each of our tenants, and other significant assumptions.
The Company’s revised outlook for 2024 is as follows:
| Revised Outlook Range for 2024 | Change from Prior Outlook | ||||||||||
| (Unaudited) | Low | High | Low | High | |||||||
| Investments | to | to | |||||||||
| Dispositions | to | to | |||||||||
| FFO per Diluted Share | to | to | |||||||||
| AFFO per Diluted Share | to | to | |||||||||
| Weighted Average Diluted Shares Outstanding | 15.1 million | to | 15.1 million | 0.2 million | to | 0.2 million | |||||
The following table provides a reconciliation of the revised outlook range of the Company’s 2024 estimated Net Income per Diluted Share to estimated FFO and AFFO per Diluted Share:
| Revised Outlook Range for 2024 | |||||||
| (Unaudited) | Low | High | |||||
| Net Income per Diluted Share | $ | 0.20 | $ | 0.22 | |||
| Depreciation and Amortization | 1.69 | 1.69 | |||||
| Provision for Impairment (1) | 0.07 | 0.07 | |||||
| Gain on Disposition of Assets (1) | (0.29 | ) | (0.29 | ) | |||
| FFO per Diluted Share | $ | 1.67 | $ | 1.69 | |||
| Adjustments: | |||||||
| Amortization of Intangible Assets and Liabilities to Lease Income | (0.03 | ) | (0.03 | ) | |||
| Straight-Line Rent Adjustment | (0.03 | ) | (0.03 | ) | |||
| Non-Cash Compensation | 0.02 | 0.02 | |||||
| Amortization of Deferred Financing Costs to Interest Expense | 0.05 | 0.05 | |||||
| Other Non-Cash Adjustments | 0.01 | 0.01 | |||||
| AFFO per Diluted Share | $ | 1.69 | $ | 1.71 | |||
| (1) | Provision for Impairment and Gain on Disposition of Assets represents the actual adjustment for the nine months ended September 30, 2024. The Company’s revised outlook excludes projections related to these measures. |
Third Quarter 2024 Earnings Conference Call & Webcast
The Company will host a conference call to present its operating results for the quarter ended September 30, 2024, on Friday, October 18, 2024, 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/v8ugyxn3 | |
| Dial-In: | https://register.vevent.com/register/BI9e749ff3c69349f6b8f82ed6ff6377d5 | |
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 seeks to deliver attractive risk-adjusted returns and dependable cash dividends by investing in, owning and operating a portfolio of single tenant net leased commercial income 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.
| Contact: | Philip R. Mays |
| Senior Vice President, Chief Financial Officer and Treasurer | |
| (407) 904-3324 | |
| pmays@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.
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 Adjusted 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 Adjusted 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 real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries.
To derive AFFO, we further modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to non-cash revenues and expenses such as loss on extinguishment of debt, amortization of above- and below-market lease related intangibles, straight-line rental revenue, amortization of deferred financing costs, 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 Adjusted 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 impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination and/or payoff, 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, loss on extinguishment of debt, above- and below-market lease related intangibles, non-cash compensation, other non-cash income or expense, and other non-recurring items such as disposition management fees and commission fees. Cash interest expense is also excluded from Pro Forma Adjusted 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 Adjusted 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 Adjusted 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 | |||||||
| September 30, 2024 (Unaudited) | December 31, 2023 | ||||||
| ASSETS | |||||||
| Real Estate: | |||||||
| Land, at Cost | $ | 132,433 | $ | 149,314 | |||
| Building and Improvements, at Cost | 317,260 | 328,993 | |||||
| Total Real Estate, at Cost | 449,693 | 478,307 | |||||
| Less, Accumulated Depreciation | (42,302 | ) | (34,714 | ) | |||
| Real Estate—Net | 407,391 | 443,593 | |||||
| Assets Held for Sale | 4,100 | 4,410 | |||||
| Commercial Loans and Investments | 86,549 | 35,080 | |||||
| Cash and Cash Equivalents | 2,560 | 4,019 | |||||
| Restricted Cash | 25,495 | 9,712 | |||||
| Intangible Lease Assets—Net | 40,574 | 49,292 | |||||
| Straight-Line Rent Adjustment | 1,366 | 1,409 | |||||
| Other Assets | 10,951 | 17,045 | |||||
| Total Assets | $ | 578,986 | $ | 564,560 | |||
| LIABILITIES AND EQUITY | |||||||
| Liabilities: | |||||||
| Accounts Payable, Accrued Expenses, and Other Liabilities | $ | 7,279 | $ | 5,736 | |||
| Prepaid Rent and Deferred Revenue | 3,319 | 2,627 | |||||
| Intangible Lease Liabilities—Net | 4,358 | 4,907 | |||||
| Obligation Under Participation Agreement | 13,178 | — | |||||
| Long-Term Debt | 278,898 | 275,677 | |||||
| Total Liabilities | 307,032 | 288,947 | |||||
| Commitments and Contingencies | |||||||
| Equity: | |||||||
| Preferred Stock, | — | — | |||||
| Common Stock, | 143 | 137 | |||||
| Additional Paid-in Capital | 254,110 | 243,690 | |||||
| Dividends in Excess of Net Income | (10,652 | ) | (2,359 | ) | |||
| Accumulated Other Comprehensive Income | 4,641 | 9,275 | |||||
| Stockholders' Equity | 248,242 | 250,743 | |||||
| Noncontrolling Interest | 23,712 | 24,870 | |||||
| Total Equity | 271,954 | 275,613 | |||||
| Total Liabilities and Equity | $ | 578,986 | $ | 564,560 | |||
| Alpine Income Property Trust, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except share, per share and dividend data) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Lease Income | $ | 11,718 | $ | 11,447 | $ | 34,512 | $ | 33,951 | |||||||
| Interest Income from Commercial Loans and Investments | 1,663 | 112 | 3,552 | 112 | |||||||||||
| Other Revenue | 99 | — | 372 | — | |||||||||||
| Total Revenues | 13,480 | 11,559 | 38,436 | 34,063 | |||||||||||
| Operating Expenses: | |||||||||||||||
| Real Estate Expenses | 1,841 | 1,722 | 5,569 | 4,731 | |||||||||||
| General and Administrative Expenses | 1,843 | 1,652 | 4,987 | 4,823 | |||||||||||
| Provision for Impairment | 422 | 2,864 | 1,110 | 2,864 | |||||||||||
| Depreciation and Amortization | 6,340 | 6,528 | 19,074 | 19,286 | |||||||||||
| Total Operating Expenses | 10,446 | 12,766 | 30,740 | 31,704 | |||||||||||
| Gain on Disposition of Assets | 3,426 | 2,586 | 4,344 | 7,782 | |||||||||||
| Gain on Extinguishment of Debt | — | — | — | 23 | |||||||||||
| Net Income From Operations | 6,460 | 1,379 | 12,040 | 10,164 | |||||||||||
| Investment and Other Income | 61 | 125 | 186 | 226 | |||||||||||
| Interest Expense | (3,167 | ) | (2,443 | ) | (8,933 | ) | (7,494 | ) | |||||||
| Net Income (Loss) | 3,354 | (939 | ) | 3,293 | 2,896 | ||||||||||
| Less: Net (Income) Loss Attributable to Noncontrolling Interest | (274 | ) | 102 | (269 | ) | (314 | ) | ||||||||
| Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. | $ | 3,080 | $ | (837 | ) | $ | 3,024 | $ | 2,582 | ||||||
| Per Common Share Data: | |||||||||||||||
| Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. | |||||||||||||||
| Basic | $ | 0.22 | $ | (0.06 | ) | $ | 0.22 | $ | 0.18 | ||||||
| Diluted | $ | 0.21 | $ | (0.05 | ) | $ | 0.20 | $ | 0.16 | ||||||
| Weighted Average Number of Common Shares: | |||||||||||||||
| Basic | 13,744,232 | 13,946,194 | 13,663,752 | 14,001,774 | |||||||||||
| Diluted (1) | 14,968,086 | 15,649,688 | 14,887,606 | 15,705,268 | |||||||||||
| Dividends Declared and Paid | $ | 0.280 | $ | 0.275 | $ | 0.830 | $ | 0.825 | |||||||
| (1) | Includes the weighted average of 1,223,854 shares during the three and nine months ended September 30, 2024 and 1,703,494 shares during the three and nine months ended September 30, 2023, in each case, 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, which OP Units were redeemed by PINE for an equivalent number of shares of common stock of PINE during the three months ended December 31, 2023. |
| 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 | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| Net Income (Loss) | $ | 3,354 | $ | (939 | ) | $ | 3,293 | $ | 2,896 | ||||||
| Depreciation and Amortization | 6,340 | 6,528 | 19,074 | 19,286 | |||||||||||
| Provision for Impairment | 422 | 2,864 | 1,110 | 2,864 | |||||||||||
| Gain on Disposition of Assets | (3,426 | ) | (2,586 | ) | (4,344 | ) | (7,782 | ) | |||||||
| Funds From Operations | $ | 6,690 | $ | 5,867 | $ | 19,133 | $ | 17,264 | |||||||
| Adjustments: | |||||||||||||||
| Gain on Extinguishment of Debt | — | — | — | (23 | ) | ||||||||||
| Amortization of Intangible Assets and Liabilities to Lease Income | (136 | ) | (110 | ) | (361 | ) | (299 | ) | |||||||
| Straight-Line Rent Adjustment | (216 | ) | (112 | ) | (370 | ) | (386 | ) | |||||||
| Non-Cash Compensation | 79 | 79 | 238 | 238 | |||||||||||
| Amortization of Deferred Financing Costs to Interest Expense | 180 | 179 | 540 | 530 | |||||||||||
| Other Non-Cash Adjustments | 52 | 29 | 111 | 86 | |||||||||||
| Adjusted Funds From Operations | $ | 6,649 | $ | 5,932 | $ | 19,291 | $ | 17,410 | |||||||
| FFO per Diluted Share | $ | 0.45 | $ | 0.37 | $ | 1.29 | $ | 1.10 | |||||||
| AFFO per Diluted Share | $ | 0.44 | $ | 0.38 | $ | 1.30 | $ | 1.11 | |||||||
| Alpine Income Property Trust, Inc. Non-GAAP Financial Measures Reconciliation of Net Debt to Pro Forma Adjusted EBITDA (Unaudited) (In thousands) | ||||
| Three Months Ended | ||||
| September 30, 2024 | ||||
| Net Income | $ | 3,354 | ||
| Adjustments: | ||||
| Depreciation and Amortization | 6,340 | |||
| Provision for Impairment | 422 | |||
| Gain on Disposition of Assets | (3,426 | ) | ||
| Amortization of Intangible Assets and Liabilities to Lease Income | (136 | ) | ||
| Straight-Line Rent Adjustment | (216 | ) | ||
| Non-Cash Compensation | 79 | |||
| Amortization of Deferred Financing Costs to Interest Expense | 180 | |||
| Other Non-Cash Adjustments | 52 | |||
| Other Non-Recurring Items | (26 | ) | ||
| Interest Expense, Net of Deferred Financing Costs Amortization and Interest on Obligation Under Participation Agreement | 2,712 | |||
| Adjusted EBITDA | $ | 9,335 | ||
| Annualized Adjusted EBITDA | $ | 37,340 | ||
| Pro Forma Annualized Impact of Current Quarter Investment Activity (1) | (233 | ) | ||
| Pro Forma Adjusted EBITDA | $ | 37,107 | ||
| Total Long-Term Debt | $ | 278,898 | ||
| Financing Costs, Net of Accumulated Amortization | 602 | |||
| Cash and Cash Equivalents | (2,560 | ) | ||
| Restricted Cash | (22,365 | ) | ||
| Net Debt | $ | 254,575 | ||
| Net Debt to Pro Forma Adjusted EBITDA | 6.9 | x | ||
| (1) | Reflects the pro forma annualized impact on Annualized Adjusted EBITDA of the Company’s investments and disposition activity during the three months ended September 30, 2024. |
FAQ
What was Alpine Income Property Trust's net income per diluted share for Q3 2024?
How much did Alpine Income Property Trust's FFO per diluted share increase in Q3 2024?
What was the total revenue for Alpine Income Property Trust in Q3 2024?
How much did Alpine Income Property Trust raise through its ATM stock offering in Q3 2024?
What is the updated full-year 2024 FFO guidance for Alpine Income Property Trust?
What is the updated full-year 2024 AFFO guidance for Alpine Income Property Trust?
