Alpine Income Property Trust Reports First Quarter 2025 Operating and Financial Results
- Closed Investments of
- Increased Dividend Q1 2025 -
- First Quarter Net Loss of
“In the first quarter, we completed investments that approached
First Quarter 2025 Highlights
Operating results for the three months ended
| Three Months Ended | |||||||
| Total Revenues | $ | 14,206 | $ | 12,466 | |||
| Net Loss Attributable to PINE | $ | (1,179 | ) | $ | (260 | ) | |
| Net Loss per Diluted Share Attributable to PINE | $ | (0.08 | ) | $ | (0.02 | ) | |
| FFO (1) | $ | 6,909 | $ | 6,130 | |||
| FFO per Diluted Share (1) | $ | 0.44 | $ | 0.41 | |||
| AFFO (1) | $ | 7,040 | $ | 6,243 | |||
| AFFO per Diluted Share (1) | $ | 0.44 | $ | 0.42 | |||
______________________________
(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.
Investment Activity
Acquisitions for the three months ended
| For the Three Months Ended |
||||
| Number of Investments |
Amount | |||
| Properties | 3 | $ | 39,695 | |
| Commercial Loans and Investments | 4 | 39,540 | ||
| Totals | 7 | $ | 79,235 | |
| Properties - Weighted Average Initial Cash Cap Rate | 8.6% | |||
| Commercial Loans and Investments - Weighted Average Initial Cash Yield | 9.5% | |||
| Total Investments - Weighted Average Initial Cash Yield | 9.0% | |||
| Properties - Weighted Average Remaining Lease Term | 14.3 years | |||
Disposition Activity
Dispositions for the three months ended
| For the Three Months Ended |
||||
| Number of Investments |
Amount | |||
| Properties | 3 | $ | 11,695 | |
| Commercial Loans and Investments | — | — | ||
| Totals | 3 | $ | 11,695 | |
| Properties - Weighted Average Exit Cash Cap Rate | 9.1% | |||
| Commercial Loans and Investments - Weighted Average Cash Yield | —% | |||
| Total Investments - Weighted Average Cash Yield | 9.1% | |||
Property Portfolio (1)
The Company’s property portfolio consisted of the following as of
| Number of Properties | 134 |
| Square Feet | 4.1 million |
| Annualized Base Rent (ABR) | |
| Weighted Average Remaining Lease Term | 9.0 years |
| States where Properties are Located | 35 |
| Industries | 23 |
| Occupancy | 98.6% |
| % of ABR Attributable to Investment Grade Rated Tenants | 50% |
| % of ABR Attributable to Credit Rated Tenants | 81% |
| % of ABR Attributable to Sale-Leaseback Tenants (1) | 8% |
______________________________
(1) During the year ended
The Company’s property portfolio included the following top tenants that represent 2.0% or greater of the Company's total ABR as of
| Tenant | Credit Rating | % of ABR | ||
| Dicks Sporting Goods | BBB / Baa2 | 10% | ||
| Lowe's | BBB+ / Baa1 | 9% | ||
| NR / NR | 8% | |||
| Walgreens | BB- / Ba3 | 7% | ||
| Dollar Tree/Family Dollar | BBB / Baa2 | 7% | ||
| Best Buy | BBB+ / A3 | 5% | ||
| Dollar General | BBB / Baa3 | 5% | ||
| NR / NR | 4% | |||
| Walmart | AA / Aa2 | 4% | ||
| At Home | CCC / Caa3 | 3% | ||
| BB- / Ba3 | 3% | |||
| BJ's Wholesale Club | BB+ / Ba1 | 3% | ||
| BB+ / Ba2 | 3% | |||
| A- / A2 | 2% | |||
| Home Depot | A / A2 | 2% | ||
| Other | 25% | |||
| Total | 100% | |||
The Company’s property portfolio consisted of the following top industries that represent 2.0% or greater of the Company's total ABR as of
| Industry | % of ABR | |
| 16% | ||
| Home Improvement | 12% | |
| Dollar Stores | 12% | |
| 9% | ||
| Pharmacy | 8% | |
| Home Furnishings | 7% | |
| Consumer Electronics | 6% | |
| Entertainment | 5% | |
| Technology, Media & Life Sciences | 4% | |
| Grocery | 4% | |
| Off-Price Retail | 3% | |
| 3% | ||
| General Merchandise | 3% | |
| Other | 8% | |
| Total | 100% | |
The Company’s property portfolio included properties in the following top states that represent 2.0% or greater of the Company’s total ABR as of
| State | % of ABR | |
| 14% | ||
| 10% | ||
| 7% | ||
| 6% | ||
| 6% | ||
| 6% | ||
| 6% | ||
| 4% | ||
| 4% | ||
| 3% | ||
| 3% | ||
| 3% | ||
| 2% | ||
| 2% | ||
| Other | 24% | |
| Total | 100% | |
Balance Sheet and Capital Markets (dollars in thousands, except per share data)
| As of |
||
| Leverage | ||
| Net Debt / Total Enterprise Value | 57.1% | |
| Net Debt / Pro Forma Adjusted EBITDA | 7.9x | |
| Fixed Charge Coverage Ratio | 3.5x | |
| Liquidity | ||
| Available Capacity Under Revolving Credit Facility | $ | 56,358 |
| Cash, Cash Equivalents and Restricted Cash (1) | 8,518 | |
| Total Liquidity | $ | 64,876 |
______________________________
(1) Includes all unrestricted cash and cash equivalents and restricted cash held in escrow accounts to be reinvested through the like-kind exchange structure.
The Revolving Credit Facility has commitments for up to
Below is a summary of repurchases of shares of common stock under the Company’s
| Repurchase Program | For the Three Months Ended |
|
| Shares Repurchased | 273,825 | |
| Weighted Average Price per Share (Gross) | $ | 16.33 |
| $ | 4,481 | |
Subsequent to
The Company’s long-term debt as of
| As of |
||||||||
| Face Value Debt | Stated Interest Rate | Wtd. Avg. Rate | Maturity Date | |||||
| Revolving Credit Facility (1) | $ | 157,000 | SOFR + 0.10% + [1.25% - 2.20%] |
5.63% | ||||
| 2026 Term Loan (2) | 100,000 | SOFR + 0.10% + [1.35% - 1.95%] |
3.65% | |||||
| 2027 Term Loan (3) | 100,000 | SOFR + 0.10% + [1.25% - 1.90%] |
3.60% | |||||
| Total Debt/Weighted-Average Rate | $ | 357,000 | 4.51% | |||||
______________________________
(1) As of
(2) As of
(3) As of
Subsequent to
As of
Dividends
The Company’s dividends for the three months ended
| For the Three Months Ended |
||
| Dividends Declared and Paid per Share | $ | 0.285 |
| FFO Payout Ratio | 64.8% | |
| AFFO Payout Ratio | 64.8% | |
2025 Outlook
The Company is increasing its FFO, AFFO, and Investments outlook for 2025, to take into account the Company’s year-to-date performance. The Company’s outlook for 2025 is based on current plans and assumptions and subject to risks and uncertainties more fully described in this press release and the Company's reports filed with the
The Company’s revised outlook for 2025 is as follows:
| 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 | 15.5 million | to | 16.0 million | (0.5) million | to | (0.5) million | |||||
Reconciliation of the revised outlook range of the Company’s 2025 estimated Net Loss per Diluted Share to estimated FFO and AFFO per Diluted Share:
| Revised Outlook Range for 2025 |
|||||||
| (Unaudited) | Low | High | |||||
| Net Loss per Diluted Share | $ | (0.22 | ) | $ | (0.19 | ) | |
| Depreciation and Amortization | 1.90 | 1.90 | |||||
| Provision for Impairment (1) | 0.13 | 0.13 | |||||
| Gain on Disposition of Assets (1) | (0.07 | ) | (0.07 | ) | |||
| FFO per Diluted Share | $ | 1.74 | $ | 1.77 | |||
| Adjustments: | |||||||
| Amortization of Intangible Assets and Liabilities to Lease Income | (0.04 | ) | (0.04 | ) | |||
| Straight-Line Rent Adjustment | (0.05 | ) | (0.05 | ) | |||
| Non-Cash Compensation | 0.02 | 0.02 | |||||
| Amortization of Deferred Financing Costs to Interest Expense | 0.05 | 0.05 | |||||
| Other Non-Cash Adjustments | 0.02 | 0.02 | |||||
| AFFO per Diluted Share | $ | 1.74 | $ | 1.77 | |||
(1) Provision for Impairment and Gain on Disposition of Assets represents the actual adjustment for the three months ended
First Quarter 2025 Earnings Conference Call & Webcast
The Company will host a conference call to present its operating results for the quarter ended
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/2z8mw8kf |
| Dial-In: | https://register-conf.media-server.com/register/BIa4784cf846494047b82c5db2965501de |
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
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, tariffs and international trade policies, risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, credit risk associated with the Company investing in commercial loans and investments, illiquidity of real estate investments and potential damages from natural disasters, the impact of epidemics or pandemics on the Company’s business and the business of its tenants and the impact of such epidemics or pandemics on the
Non-GAAP Financial Measures
Our reported results are presented in accordance with accounting principles generally accepted in
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
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 adjustments to 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.
Other Definitions
Annualized Base Rent represents the annualized in-place straight-line base rent required by the tenant’s lease.
Credit Rated Tenant is a tenant or the parent of a tenant with a credit rating from
Investment Grade Rated Tenant is a tenant or the parent of a tenant with a credit rating from
Weighted Average Remaining Lease Term is weighted by the annualized base rent and does not assume the exercise of any tenant purchase options.
| Consolidated Balance Sheets | |||||||
| (In thousands, except share and per share data) | |||||||
| As of | |||||||
| (Unaudited) |
|||||||
| ASSETS | |||||||
| Real Estate: | |||||||
| Land, at Cost | $ | 146,551 | $ | 147,912 | |||
| Building and Improvements, at Cost | 358,657 | 341,955 | |||||
| 505,208 | 489,867 | ||||||
| Less, Accumulated Depreciation | (48,055 | ) | (45,850 | ) | |||
| Real Estate—Net | 457,153 | 444,017 | |||||
| Assets Held for Sale | 7,427 | 2,254 | |||||
| Commercial Loans and Investments | 110,009 | 89,629 | |||||
| Cash and Cash Equivalents | 6,138 | 1,578 | |||||
| Restricted Cash | 5,434 | 6,373 | |||||
| Intangible Lease Assets—Net | 46,060 | 43,925 | |||||
| Straight-Line Rent Adjustment | 1,661 | 1,485 | |||||
| Other Assets | 13,515 | 15,734 | |||||
| Total Assets | $ | 647,397 | $ | 604,995 | |||
| LIABILITIES AND EQUITY | |||||||
| Liabilities: | |||||||
| Accounts Payable, Accrued Expenses, and Other Liabilities | $ | 8,507 | $ | 8,445 | |||
| Prepaid Rent and Deferred Revenue | 3,684 | 2,412 | |||||
| Intangible Lease Liabilities—Net | 4,326 | 4,774 | |||||
| Obligation Under Participation Agreement | 10,584 | 11,403 | |||||
| Long-Term Debt—Net | 356,511 | 301,466 | |||||
| Total Liabilities | 383,612 | 328,500 | |||||
| Commitments and Contingencies | |||||||
| Equity: | |||||||
| Preferred Stock, |
— | — | |||||
| Common Stock, |
144 | 147 | |||||
| 257,290 | 261,831 | ||||||
| Dividends in Excess of Net Income | (21,048 | ) | (15,722 | ) | |||
| Accumulated Other Comprehensive Income | 4,563 | 6,771 | |||||
| Stockholders' Equity | 240,949 | 253,027 | |||||
| Noncontrolling Interest | 22,836 | 23,468 | |||||
| Total Equity | 263,785 | 276,495 | |||||
| Total Liabilities and Equity | $ | 647,397 | $ | 604,995 | |||
| Consolidated Statements of Operations | |||||||
| (Unaudited) | |||||||
| (In thousands, except share, per share and dividend data) | |||||||
| Three Months Ended | |||||||
| Revenues: | |||||||
| Lease Income | $ | 11,826 | $ | 11,464 | |||
| Interest Income from Commercial Loans and Investments | 2,301 | 903 | |||||
| Other Revenue | 79 | 99 | |||||
| Total Revenues | 14,206 | 12,466 | |||||
| Operating Expenses: | |||||||
| Real Estate Expenses | 2,034 | 1,928 | |||||
| General and Administrative Expenses | 1,716 | 1,542 | |||||
| Provision for Impairment | 2,031 | 31 | |||||
| Depreciation and Amortization | 7,307 | 6,382 | |||||
| Total Operating Expenses | 13,088 | 9,883 | |||||
| Gain on Disposition of Assets | 1,151 | — | |||||
| Net Income From Operations | 2,269 | 2,583 | |||||
| Investment and Other Income | 45 | 69 | |||||
| Interest Expense | (3,592 | ) | (2,935 | ) | |||
| Net Loss | (1,278 | ) | (283 | ) | |||
| Less: Net Loss Attributable to Noncontrolling Interest | 99 | 23 | |||||
| Net Loss Attributable to |
$ | (1,179 | ) | $ | (260 | ) | |
| Per Common Share Data: | |||||||
| Net Loss Attributable to |
|||||||
| Basic and Diluted | $ | (0.08 | ) | $ | (0.02 | ) | |
| Weighted Average Number of Common Shares: | |||||||
| Basic | 14,628,921 | 13,621,208 | |||||
| Diluted (1) | 15,852,775 | 14,845,062 | |||||
| Dividends Declared and Paid | $ | 0.285 | $ | 0.275 | |||
______________________________
(1) Includes 1,223,854 shares during the three months ended
| Non-GAAP Financial Measures | |||||||
| Funds From Operations and Adjusted Funds From Operations | |||||||
| (Unaudited) | |||||||
| (In thousands, except per share data) | |||||||
| Three Months Ended | |||||||
| Net Loss | $ | (1,278 | ) | $ | (283 | ) | |
| Depreciation and Amortization | 7,307 | 6,382 | |||||
| Provision for Impairment | 2,031 | 31 | |||||
| Gain on Disposition of Assets | (1,151 | ) | — | ||||
| Funds From Operations | $ | 6,909 | $ | 6,130 | |||
| Adjustments: | |||||||
| Amortization of Intangible Assets and Liabilities to Lease Income | (80 | ) | (110 | ) | |||
| Straight-Line Rent Adjustment | (131 | ) | (65 | ) | |||
| Non-Cash Compensation | 95 | 79 | |||||
| Amortization of Deferred Financing Costs to Interest Expense | 190 | 180 | |||||
| Other Non-Cash Adjustments | 57 | 29 | |||||
| Adjusted Funds From Operations | $ | 7,040 | $ | 6,243 | |||
| FFO per Diluted Share | $ | 0.44 | $ | 0.41 | |||
| AFFO per Diluted Share | $ | 0.44 | $ | 0.42 | |||
| Non-GAAP Financial Measures | ||||
| Reconciliation of Net Debt to Pro Forma Adjusted EBITDA | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| Three Months Ended |
||||
| Net Loss | $ | (1,278 | ) | |
| Adjustments: | ||||
| Depreciation and Amortization | 7,307 | |||
| Provision for Impairment | 2,031 | |||
| Gain on Disposition of Assets | (1,151 | ) | ||
| Amortization of Intangible Assets and Liabilities to Lease Income | (80 | ) | ||
| Straight-Line Rent Adjustment | (131 | ) | ||
| Non-Cash Compensation | 95 | |||
| Amortization of Deferred Financing Costs to Interest Expense | 190 | |||
| Other Non-Cash Adjustments | 57 | |||
| Other Non-Recurring Items | (13 | ) | ||
| Interest Expense, Net of Deferred Financing Costs Amortization and Interest on Obligation Under Participation Agreement | 3,188 | |||
| Adjusted EBITDA | $ | 10,215 | ||
| Annualized Adjusted EBITDA | $ | 40,860 | ||
| Pro Forma Annualized Impact of Current Quarter Investment Activity (1) | 3,389 | |||
| Pro Forma Adjusted EBITDA | $ | 44,249 | ||
| Total Long-Term Debt | $ | 356,511 | ||
| Financing Costs, Net of Accumulated Amortization | 489 | |||
| Cash and Cash Equivalents | (6,138 | ) | ||
| Restricted Cash (2) | (2,381 | ) | ||
| Net Debt | $ | 348,481 | ||
| Net Debt to Pro Forma Adjusted EBITDA | 7.9 | x | ||
______________________________
(1) Reflects the pro forma annualized impact on Annualized Adjusted EBITDA of the Company’s investment and disposition activity during the three months ended
(2) Includes only restricted cash held in escrow accounts to be reinvested through the like-kind exchange structure.
Contact: Investor Relations ir@alpinereit.com
Source: Alpine Income Property Trust