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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 3, 2020

 

 

 

ALPINE INCOME PROPERTY TRUST, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland

 

Commission File Number 001-39143

 

 84-2769895

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

1140 N. Williamson Blvd., Suite 140

Daytona Beach, Florida

 32114
(Address of principal executive offices) (Zip Code)

 

Registrant’s Telephone Number, including area code

(386) 274-2202

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities Registered Pursuant to Section 12(b) of the Act

 

Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $0.01 Par Value PINE NYSE

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  x

 

 

 

 

 

Item 7.01. Regulation FD Disclosure.

 

A copy of material that will be used in investor presentations delivered by representatives of Alpine Income Property Trust, Inc. (the “Company”) from time to time is attached to this Current Report on Form 8-K as Exhibit 99.1.

 

The furnishing of these materials is not intended to constitute a representation that such furnishing is required by Regulation FD or other securities laws, or that the presentation materials include material investor information that is not otherwise publicly available. In addition, the Company does not assume any obligation to update such information in the future.

 

The information contained in the Investor Presentation is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in the investor presentation shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, unless it is specifically incorporated by reference therein.

 

Item 9.01. Financial Statements and Exhibits.

 

(d)Exhibits

 

99.1  Investor Presentation – February 3, 2020 

       

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: February 3, 2020

 

Alpine Income Property Trust, Inc.

 

By:   /s/Mark E. Patten                                                                    
Senior Vice President, Chief Financial Officer and Treasurer  
(Principal Financial and Accounting Officer)  

 

 

 

Exhibit 99.1

 

CLIMB STARTING THE YEAR END 2019 INVESTOR PRESENTATION FEBRUARY 2020 (NYSE: PINE)

 

 

Snap Shot of PINE 2 Attractive Valuation with Significant Growth Potential STOCK PRICE (@ IPO) $19.00 Q4 2019 DIVIDEND per diluted SHARE TOTAL DEBT SHARES OUTSTANDING (rounded) (1) ≈$0.06 $10.5mm ≈9,127,000 As of February 3, 2020 unless otherwise noted ESTIMATED FFO/SHARE – FY 2020 $1.20 - $1.30 ESTIMATED AFFO/SHARE – FY 2020 $1.15 - $1.25 EQUITY MARKET CAP (@ 2.3.20) $173mm (1) Includes approximately 1,224,000 OP Units

 

 

Initial Alpine Portfolio Overview 3 (1) Tenant or Tenant’s Parent Company 8.5 Years 100% Occupied with Long Duration Leases » 8.5 year weighted average remaining lease term with no maturities until 2024 58% Contractual Rent Growth » 58% of ABR (B) from leases that have contractual increases in base rent Low Leverage Low Leverage / Strong Growth Runway » Only utilized $10.5mm of $100M line of credit capacity 24 assets Diversified across Geography, Tenant & Asset Type » Portfolio has 24 assets, occupied by 19 tenants across 18 markets in 14 industries and 12 states 89% Credit Tenants (D) Strong Tenants » 89% of ABR (B) is from publicly - traded tenants (1) 37% of ABR (B) is from investment grade tenants (1) 83% Attractive Locations » 83% of ABR (B) from tenants located in MSAs with greater than 1 million people High Quality Single - Tenant Net Leased Portfolio – Low Leverage As of February 3, 2020 unless otherwise noted

 

 

Attractive Portfolio 4 No Leases Expiring until 2024 58% with Contractual Rent Bumps (1) Flat Other Escalation Annual 42% 32% 26% High Quality Portfolio with Diverse Long - Term Cash Flows and No Near - Term Maturities $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 As of February 3, 2020 unless otherwise noted (1) Based on ABR (B)

 

 

Portfolio Diversity (1) Based on ABR (B) 5 Portfolio Diversified Across 18 Markets, 12 States and Tenants in 14 Industries 21% 17% 8% 7% 5% 5% 5% 5% 4% 4% 4% 3% 3% 2% 2% 5% Portland Orlando Tampa Reno Austin Boston Whitewater Winston Salem Dallas/Ft. Worth 3 Others Jacksonville Birmingham Atlanta Phoenix Raleigh Cincinnati MSA (1) 26% 21% 10% 10% 8% 5% 5% 4% 4% 3% 4% Florida Oregon North Carolina Georgia Texas Arizona Nevada Massachusetts Wisconsin Alabama 2 Others STATE (1) 21% 17% 10% 9% 7% 7% 7% 5% 5% 5% 3% 4% Financial Services Hospitality Leisure Retailer Entertainment Convenience Store Pharmacy Fitness Home Improvement Home Goods Casual Dining Specialty Retail 3 Others Industry (1) As of February 3, 2020 unless otherwise noted

 

 

Primary Focus on Top U.S. Real Estate Markets 6 Rank Market 1 Austin 2 Raleigh 3 Nashville 4 Charlotte 5 Boston 6 Dallas / Fort Worth 7 Orlando 8 Atlanta 9 Los Angeles 10 Seattle 11 Tampa 12 San Francisco 13 San Jose 14 DC - Northern VA 15 New York - Brooklyn 16 Indianapolis 17 Denver 18 Orange County 19 Charleston 20 Portland 21 Miami 22 Salt Lake City 23 Jacksonville 24 San Antonio 25 Philadelphia (1) As ranked by Urban Land Institute & PWC in the ‘2020 Emerging Trends in Real Estate’ publication 74% of ABR (B) Located in Top 25 Markets As of February 3, 2020 unless otherwise noted Portland, OR (21%) Boston, MA (4%) Raleigh, NC (5%) Charlotte, NC (1%) Atlanta, GA (8%) Tampa, FL (7%) Orlando, FL (17%) Austin, TX (5%) Dallas/Ft. Worth, TX (3%) Jacksonville, FL (3%) Alpine Property in Top 25 Real Estate Markets (percent of ABR (B) ) (1) Location of other Alpine Properties

 

 

Comparison with our Peers 7 Single - Tenant Net Leased Portfolio that Compares Favorably to Peers 2020 AFFO Multiple 23.4x 22.0x 19.1x 19.5x 15.0x 22.4x 14.8x (1) A+ BB+ BBB B+ B NR B - NR B B BBB BBB BBB A+ NR B+ NR NR NR B+ AA - B - B+ B+ B B - BBB BBB BBB BBB BBB AA - BBB BBB B+ (1) Estimate based on $19 price per share (2) Peer info as of most recent published information As of February 3, 2020 unless otherwise noted

 

 

2020 Guidance 8 FY2020 Guidance FFO per diluted share $1.20 - $1.30 AFFO per diluted share $1.15 - $1.25 Acquisition of Income - Producing Assets (A) $12 0mm Target Investment Yield (Initial Yield – Unlevered) 6.5% - 7.5% Earnings per diluted share $0.10 - $0.20 Positioned for Growth – Starting The Climb Guidance is based on current plans and assumptions and is subject to risks and uncertainties more fully described in the Company’s filings with the Securities and Exchange Commission

 

 

Our Board of Directors 9 John P. Albright President & Chief Executive Officer Consolidated - Tomoka Land Co. Good Capital Group Andrew C. Richardson Chief Operating Officer Waypoint Real Estate Investments Mark O. Decker, Jr. President & Chief Executive Officer Investors Real Estate Trust M. Carson Good President Good Capital Group Jeffrey S. Yarckin President & Chief Operating Officer TriGate Capital PINE Chairman Outstanding Board – Respected, Experienced, and Independent

 

 

Our Management Team 10 Years of Experience Public Company Experience Real Estate Operations / Finance Previous Companies John P. Albright President & Chief Executive Officer 32 19 32 Mark E. Patten SVP & Chief Financial Officer 33 28 18 Daniel E. Smith SVP, General Counsel, Corp. Secretary 27 22 27 E. Scott Bullock VP, Real Estate Theresa Thornton - Hill VP, Assoc. General Counsel & Assistant Corp. Secretary Lisa Vorakoun VP and Controller Other Key Personnel Executive Team Steven R. Greathouse SVP of Investments 18 15 18 Strong Management Team

 

 

11 APPENDIX

 

 

12 Summary of our Portfolio (1) Tenant, or tenant parent, rated entity (C) (2) Ground Leases; rentable SF for both assets is RSF for vertical building - Rentable SF Total and annualized base rent per SF exc lude Alpine Valley Music Theatre (3) Annualized Base Rent as of February 3, 2020 (B) (4) Remaining Lease Term calculated as of February 3, 2020 Tenant Type MSA Credit Rating (1) Rentable Square Feet (2) ABR% (3) Remaining Lease Term (4) 1 Wells Fargo Office Portland-Vancouver-Hillsboro, OR-WA A+ 211,863 21% 5.9 2 Hilton Grand Vacations - MCC Office Orlando-Kissimmee-Sanford, FL BB+ 102,019 12% 6.8 3 LA Fitness Retail Tampa-St. Petersburg-Clearwater, FL B+ 45,000 7% 12.2 4 Container Store Retail Phoenix-Mesa-Scottsdale, AZ B 23,329 5% 10.1 5 At Home Retail Raleigh, NC B+ 116,334 5% 9.6 6 Century Theater Retail Reno, NV BB 52,474 5% 4.8 7 Hilton Grand Vacations - Cambridge Office Orlando-Kissimmee-Sanford, FL BB+ 31,895 5% 6.8 8 Alpine Valley Music Theatre Retail Whitewater-Elkhorn, WI BB- 158 Acres 4% 10.2 9 Hobby Lobby Retail Winston-Salem, NC N/A 55,000 4% 10.2 10 Dick's Sporting Goods Retail Atlanta-Sandy Springs-Roswell, GA N/A 46,315 3% 4.0 11 Jo-Ann Fabric Retail Boston-Cambridge-Newton, MA-NH B- 22,500 3% 9.0 12 Conn's Retail Dallas-Fort Worth-Arlington, TX B 37,957 3% 11.3 13 7-Eleven Retail Austin-Round Rock, TX AA- 6,400 3% 15.0 14 Walgreens Retail Birmingham-Hoover, AL BBB 14,516 2% 9.2 15 Walgreens Retail Atlanta-Sandy Springs-Roswell, GA BBB 15,120 2% 5.7 16 Best Buy Retail Atlanta-Sandy Springs-Roswell, GA BBB 30,038 2% 6.2 17 BP Retail Cincinnati, OH-KY-IN N/A 2,578 2% 10.8 18 Outback Retail Charlottesville, VA BB 7,216 2% 11.7 19 7-Eleven Retail Austin-Round Rock, TX AA- 7,726 2% 15.0 20 Walgreens Retail Albany, GA BBB 14,770 2% 13.0 21 Outback Retail Charlotte-Concord-Gastonia, NC-SC BB 6,297 1% 11.7 22 Scrubbles Retail Jacksonville, FL N/A 4,512 1% 17.7 23 Cheddars Retail Jacksonville, FL BBB 8,146 1% 7.7 24 Family Dollar Retail Boston-Cambridge-Newton, MA-NH BBB- 9,228 1% 4.2 Total/ Weighted Average 871,233 100% 8.5 (2) (2) (2)

 

 

SINGLE - TENANT OFFICE 13 Hillsboro, Oregon MSA: Portland, OR Asset Type: Office Tenant: Wells Fargo S&P Rating: A+ % of Portfolio Rent: ≈21% Square Feet: 211,863 Remaining Lease Term: 5.9 years Year Built: 1978/2009 Escalations: Flat MSA Population: 2,478,810 Investment Highlights: Wells has made $14mm improvements to the building Great location in suburban Portland; 2 - 3 miles from the Nike HQ Portfolio Highlight

 

 

SINGLE - TENANT OFFICE 14 Portfolio Highlight Orlando, Florida MSA: Orlando, FL Asset Type: Office Tenant: Hilton Grand Vacations S&P Rating: BB+ % of Portfolio Rent: ≈12% Square Feet: 102,019 Remaining Lease Term: 6.8 years Year Built: 1988/2000 Escalations: Annual MSA Population: 2,572,962 Investment Highlights: Below market rents Rare high - quality office space in this Orlando submarket MCC Building

 

 

SINGLE - TENANT RETAIL 15 Portfolio Highlight Brandon, Florida MSA: Tampa, FL Asset Type: Retail Tenant: LA Fitness S&P Rating: B+ % of Portfolio Rent: ≈7% Square Feet: 45,000 Remaining Lease Term: 12.2 years Year Built: 2006 Escalations: Every 5 yrs. MSA Population: 3,142,663 Investment Highlights: High performing location for LA Fitness Recent 15 - year renewal

 

 

SINGLE - TENANT RETAIL 16 Portfolio Highlight Glendale, Arizona MSA: Phoenix, AZ Asset Type: Retail Tenant: Container Store S&P Rating: B % of Portfolio Rent: ≈5% Square Feet: 23,329 Remaining Lease Term: 10.1 years Year Built: 2015 Escalations: Every 5 yrs. MSA Population: 4,857,962 Investment Highlights: Access to major artery in Phoenix Outparcel of Macerich’s Arrowhead Mall

 

 

SINGLE - TENANT RETAIL 17 Portfolio Highlight Raleigh, North Carolina MSA: Raleigh, NC Asset Type: Retail Tenant: At Home S&P Rating: B+ % of Portfolio Rent: ≈5% Square Feet: 116,334 Remaining Lease Term: 9.6 years Year Built: 1995/2014 Escalations: Annual MSA Population: 1,362,540 Investment Highlights: Adjacent to mass transit route into Raleigh Below market rents

 

 

SINGLE - TENANT RETAIL 18 Portfolio Highlight Reno, Nevada MSA: Reno, NV Asset Type: Retail Tenant: Century Theatres S&P Rating: BB % of Portfolio Rent: ≈5% Square Feet: 52,474 Remaining Lease Term: 4.8 years Year Built: 2000 Escalations: Flat MSA Population: 469,764 Investment Highlights: Located on full city block in downtown Reno on the Truckee River Century just exercised their second renewal option

 

 

SINGLE - TENANT OFFICE 19 Portfolio Highlight Orlando, Florida MSA: Orlando, FL Asset Type: Office Tenant: Hilton Grand Vacations S&P Rating: BB+ % of Portfolio Rent: ≈5% Square Feet: 31,895 Remaining Lease Term: 6.8 years Year Built: 1988/2000 Escalations: Annual MSA Population: 2,572,962 Investment Highlights: Below market rents Rare high - quality office space in this Orlando submarket Cambridge Building

 

 

SINGLE - TENANT RETAIL 20 Portfolio Highlight East Troy, Wisconsin MSA: Whitewater - Elkhorn, WI Asset Type: Retail Tenant: Live Nation Entertainment S&P Rating: BB - % of Portfolio Rent: ≈4% Square Feet: (NA) 158 Acres Remaining Lease Term: 10.2 years Year Built: 1977 Escalations: Annual MSA Population: 103,718 Investment Highlights: Long - term absolute net lease with over 10 years remaining Tenant is investing capital into property to control market

 

 

SINGLE - TENANT RETAIL 21 Portfolio Highlight Winston - Salem, North Carolina MSA: Winston - Salem, NC Asset Type: Retail Tenant: Hobby Lobby S&P Rating: N/A % of Portfolio Rent: ≈4% Square Feet: 55,000 Remaining Lease Term: 10.2 years Year Built: 2015 Escalations: Every 5 years MSA Population: 671,456 Investment Highlights: Located on major retail corridor in Winston - Salem Below market rents

 

 

SINGLE - TENANT RETAIL 22 Portfolio Highlight McDonough, Georgia MSA: Atlanta, GA Asset Type: Retail Tenant: Dick's Sporting Goods S&P Rating: N/A % of Portfolio Rent: ≈3% Square Feet: 46,315 Remaining Lease Term: 4.0 years Year Built: 2006 Escalations: Flat MSA Population: 5,949,951 Investment Highlights: Suburb of Atlanta with strong demographics Tenant commitment to location by closing nearby store

 

 

SINGLE - TENANT RETAIL 23 Portfolio Highlight Saugus, Massachusetts MSA: Boston, MA Asset Type: Retail Tenant: Jo - Ann Fabric S&P Rating: B - % of Portfolio Rent: ≈3% Square Feet: 22,500 Remaining Lease Term: 9.0 years Year Built: 2009 Escalations: Every 5 years MSA Population: 4,875,390 Investment Highlights: Located on the main route to Boston (~11mi away) Top 5 performing store in New England region

 

 

SINGLE - TENANT RETAIL 24 Portfolio Highlight Hurst, Texas MSA: Dallas/Ft. Worth, TX Asset Type: Retail Tenant: Conn’s Credit Rating: B % of Portfolio Rent: ≈3% Square Feet: 37,957 Remaining Lease Term: 11.3 Year Built: 1982/2019 Escalations: Flat MSA Population: 7,539,711 Investment Highlights: Strategically located near The Shops at NorthEast Mall in Fort Worth Tenant relocated to property to increase physical store footprint

 

 

SINGLE - TENANT RETAIL 25 Portfolio Highlight Austin, Texas MSA: Austin, TX Asset Type: Retail Tenant: 7 - Eleven S&P Rating: AA - % of Portfolio Rent: ≈3% Square Feet: 6,400 Remaining Lease Term: 15.0 years Year Built: 2019 Escalations: In Year 10 MSA Population: 2,168,316 Investment Highlights: Located near retail corridor South of Austin Purchase and remodel of existing convenience store

 

 

SINGLE - TENANT RETAIL 26 Portfolio Highlight Birmingham, Alabama MSA: Birmingham, AL Asset Type: Retail Tenant: Walgreens S&P Rating: BBB % of Portfolio Rent: ≈3% Square Feet: 14,516 Remaining Lease Term: 9.2 years Year Built: 2003 Escalations: Flat MSA Population: 1,151,801 Investment Highlights: High visibility corner adjacent to top performing Publix Well located in Birmingham

 

 

SINGLE - TENANT RETAIL 27 Portfolio Highlight Alpharetta, Georgia MSA: Atlanta, GA Asset Type: Retail Tenant: Walgreens S&P Rating: BBB % of Portfolio Rent: ≈2% Square Feet: 15,120 Remaining Lease Term: 5.7 years Year Built: 2000 Escalations: Flat MSA Population: 5,949,951 Investment Highlights: Affluent suburb of Atlanta

 

 

SINGLE - TENANT RETAIL 28 Portfolio Highlight McDonough, Georgia MSA: Atlanta, GA Asset Type: Retail Tenant: Best Buy S&P Rating: BBB % of Portfolio Rent: ≈2% Square Feet: 30,038 Remaining Lease Term: 6.2 years Year Built: 2006 Escalations: Flat MSA Population: 5,949,951 Investment Highlights: Suburb of Atlanta with strong demographics Recently extended lease

 

 

SINGLE - TENANT RETAIL 29 Portfolio Highlight Highland Heights, Kentucky MSA: Cincinnati, OH Asset Type: Retail Tenant: BP S&P Rating: NA % of Portfolio Rent: ≈2% Square Feet: 2,578 Remaining Lease Term: 10.8 years Year Built: 1991 Escalations: Annual MSA Population: 2,190,209 Investment Highlights: Strategically located within dense retail corridor surrounded by national tenants Located one mile from Northern Kentucky University

 

 

SINGLE - TENANT RETAIL 30 Portfolio Highlight Charlottesville, Virginia MSA: Charlottesville, VA Asset Type: Retail Tenant: Outback S&P Rating: BB % of Portfolio Rent: ≈2% Square Feet: 7,216 Remaining Lease Term: 11.7 years Year Built: 1984 Escalations: Annual MSA Population: 235,232 Investment Highlights: High performing restaurant Located in top retail market within leading college market

 

 

SINGLE - TENANT RETAIL 31 Portfolio Highlight Georgetown, Texas MSA: Austin, TX Asset Type: Retail Tenant: 7 - Eleven S&P Rating: AA - % of Portfolio Rent: ≈2% Square Feet: 7,726 Remaining Lease Term: 15.0 years Year Built: 2019 Escalations: In Year 10 MSA Population: 2,168,316 Investment Highlights: Located near Interstate 35 just North of Austin Brand new build - to - suit construction for 7 - Eleven, Inc.

 

 

SINGLE - TENANT RETAIL 32 Portfolio Highlight Albany, Georgia MSA: Albany, GA Asset Type: Retail Tenant: Walgreens S&P Rating: BBB % of Portfolio Rent: ≈2% Square Feet: 14,770 Remaining Lease Term: 13.0 years Year Built: 2007 Escalations: Flat MSA Population: 153,009 Investment Highlights: Tenant closed nearby property in favor of this one Situated along main retail corridor

 

 

SINGLE - TENANT RETAIL 33 Portfolio Highlight Charlotte, North Carolina MSA: Charlotte, NC Asset Type: Retail Tenant: Outback S&P Rating: BB % of Portfolio Rent: ≈2% Square Feet: 6,297 Remaining Lease Term: 11.7 years Year Built: 1997 Escalations: Annual MSA Population: 2,569,213 Investment Highlights: In strong location on major access road High performing restaurant

 

 

SINGLE - TENANT RETAIL 34 Portfolio Highlight Jacksonville, Florida MSA: Jacksonville, FL Asset Type: Ground Lease Tenant: Scrubbles S&P Rating: N/A % of Portfolio Rent: ≈1% Square Feet: 4,512 Remaining Lease Term: 17.7 years Year Built: 2017 Escalations: Every 5 years MSA Population: 1,534,701 Investment Highlights: Ground lease within leading retail corridor in Jacksonville Advantageous ground lease structure

 

 

SINGLE - TENANT RETAIL 35 Portfolio Highlight Jacksonville, Florida MSA: Jacksonville, FL Asset Type: Ground Lease Tenant: Cheddars S&P Rating: BBB % of Portfolio Rent: ≈1% Square Feet: 8,146 Remaining Lease Term: 7.7 years Year Built: 2017 Escalations: Every 5 years MSA Population: 1,534,701 Investment Highlights: Ground lease within leading retail corridor in Jacksonville Located adjacent to St. John's town center

 

 

SINGLE - TENANT RETAIL 36 Portfolio Highlight Lynn, Massachusetts MSA: Boston, MA Asset Type: Retail Tenant: Family Dollar S&P Rating: BBB - % of Portfolio Rent: ≈1% Square Feet: 9,228 Remaining Lease Term: 4.2 years Year Built: 2014 Escalations: Flat MSA Population: 4,875,390 Investment Highlights: Dense submarket of Boston Located adjacent to commuter rail into Boston

 

 

End Notes 37 End Notes references utilized in this presentation A. There can be no assurances regarding the likelihood of acquisitions occurring or the timing or final terms thereof . B. Annualized Base Rent (“ABR”) is calculated based on our current portfolio as of February 3 , 2020 reflecting : (i) annualized straight - line base rent as of February 3 , 2020 . C. Dividends, subject to the required dividends to maintain our qualification as a REIT, are set by the Board of Directors and declared on a quarterly basis, there can be no assurances as to the likelihood or amount of dividends in the future . D. Investment grade tenants are defined as tenants with a credit rating of BBB - or higher from a nationally recognized rating agency and is based on our annualized rental revenue that is generated from income properties leased to investment grade tenants, including properties leased to subsidiaries of investment grade companies .

 

 

38 This presentation 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 si milar 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 regardin g capital market conditions, the Company’s business, the economy and other future conditions. Because forward - looking statements relate to the future, by their nature, the y are subject to inherent uncertainties, known and unknown risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may diffe r m aterially from those contemplated by the forward - looking statements. Important factors that could cause actual results to differ materially from those in the forward - looking sta tements include general business and economic conditions, continued volatility and uncertainty in the credit markets and broader financial markets, the availability of cap ita l, risks related to the Company’s status as a REIT, risks inherent in the real estate business, including tenant defaults, local real estate conditions, increases in operating c ost s, the preferences and financial condition of the Company’s tenants, potential liability relating to environmental matters, illiquidity of real estate investments and potentia l d amages from natural disasters, and other factors. Additional information concerning these and other factors that could cause actual results to differ materially from these for war d - looking statements is contained from time to time in the Company’s filings with the Securities and Exchange Commission (the “Commission”), including those set forth under “Ris k F actors” in the Company’s Registration Statement on Form S - 11 and the Company’s Annual Report on Form 10 - K for the year ended December 31, 2019 which will be filed by early March 2020 (the “Company 10 - K”). Copies of each filing may be obtained from the Company’s or the Commission’s website. Any forward - looking statement made in this presentation speaks only as of the date on which it is made. Such forward - looking statements should be regarded solely as reflections of the Company’s current oper ating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this presentation. The Company undertakes no obligation t o p ublicly release the results of any revisions to these forward - looking statements that may be made to reflect events or circumstances after the date these statements were made. The Co mpany undertakes no obligation to publicly update or revise any forward - looking statement, whether as a result of new information, future developments or otherwise. Use of Non - GAAP Financial Information Our reported results are presented in accordance with GAAP. We also disclose Funds From Operations (‘FFO’) and Adjusted Funds Fr om Operations (‘AFFO’) both of which are non - GAAP financial measures. We believe these two non - GAAP financial measures are useful to investors because they are widel y accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO do not represent cash generated from operating activities and are not necessarily indicative of cash available t o f und 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 st atement 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 In vestment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sa les of depreciable real estate assets, impairment write - downs associated with depreciable real estate assets and real estate related depreciation and amortization, inc luding the pro rata share of such adjustments of unconsolidated subsidiaries. To derive AFFO, we modify the NAREIT computation of FFO to include other adjustme nts to GAAP net income related to non - cash revenues and expenses such as straight - line rental revenue, amortization of deferred financing costs, amortization of capit alized lease incentives and above - and below - market lease related intangibles, and non - cash compensation. Such items may cause short - term fluctuations in net income bu t 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. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between perio ds and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on histor ica l 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 AF FO is an additional useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortion s c reated by other non - cash revenues or expenses. FFO and AFFO may not be comparable to similarly titled measures employed by other companies. Disclaimer

 

 

CLIMB STARTING THE YEAR END 2019 INVESTOR PRESENTATION FEBRUARY 2020 (NYSE: PINE) 1140 N. Williamson Boulevard, Suite 140 Daytona Beach, FL 32114 P: 386.274.2202 Info@alpinereit.com For additional information, please see our website www.AlpineREIT.com. Contact Us Investor Relations: Mark E. Patten P: 386.944.5643 mpatten@alpinereit.com