• AFFO per Share: $0.44 per diluted share, 4.8% growth year-over-year.
• Total Revenue: $14.2 million for the quarter.
• Lease Income: $11.8 million.
• Interest Income from Commercial Loans: $2.3 million.
• Dividend per Share: Increased to $0.285 per quarter.
• Investment Activity: $79.2 million total, with a weighted average initial yield of 9%.
• Property Acquisitions: Three properties for $39.7 million at an 8.6% cap rate.
• Structured Finance Investments: $39.5 million with a 9.5% yield.
• Property Sales: Three properties sold for $11.7 million at a 9.1% cap rate.
• Net Debt to Pro Forma Adjusted EBITDA: 7.9 times.
• Liquidity: $65 million, with $8 million in cash and $57 million available under the credit facility.
• FFO and AFFO Guidance for 2025: Increased to $1.74 to $1.77 per diluted share.

• Warning! GuruFocus has detected 8 Warning Signs with PINE.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alpine Income Property Trust Inc (NYSE:PINE) achieved AFFO of $0.44 per diluted share for the quarter, representing a growth of approximately 5% compared to the first quarter of last year.
• The company raised its common dividend to a new quarterly rate of $0.285, continuing its practice of increasing the annual dividend every year since its IPO.
• PINE's investment activity included acquiring three properties for $39.7 million at a weighted average initial cap rate of 8.6% and originating two mortgages with a combined total of $39.5 million at a weighted average initial yield of 9.5%.
• The company's portfolio weighted average lease term (WALT) increased to 9 years from 6.9 years a year ago, reflecting strategic acquisitions with longer lease terms.
• PINE opportunistically repurchased approximately 274,000 common shares for $4.5 million at an average price of $16.33 per share, enhancing shareholder value.

Negative Points

• Net debt to pro forma adjusted EBITDA was at 7.9 times, indicating a relatively high leverage level.
• The company has two assets, a Party City in Long Island and a theater in Reno, that are currently not contributing any income.
• PINE's guidance includes potential dispositions of properties with no income, which could impact earnings if not executed as planned.
• The company faces uncertainty due to recent tariff volatility and its potential impact on tenant operations.
• There is a provision for impairment charge related to properties anticipated to be sold in the short term, reflecting potential losses on these assets.

Q & A Highlights

Q: Can you explain the factors that led to the increase in AFFO guidance this quarter? A: Philip Mays, CFO, explained that the increase was driven by three main factors: stock buybacks, a SOFR swap that reduced interest rates, and successful investment activities. Each of these contributed approximately $0.01 to $0.015 to the guidance increase.

Q: How are you prioritizing capital allocation given your activities in share repurchases, loans, and acquisitions? A: John Albright, CEO, stated that with shares trading at a discount to NAV, they are taking advantage of this by repurchasing shares. They are balancing this with acquisitions and investments, leveraging their liquidity and free cash flow to capitalize on opportunities.

Q: What impact do tariffs have on your deal-making process, especially for retail properties? A: John Albright noted that they have not seen significant disruption due to tariffs. Their tenant mix, including convenience stores and theaters, remains strong and insulated from tariff issues.

Q: What cap rate should we expect for the remaining dispositions this year? A: John Albright indicated that future dispositions might have lower cap rates than previous sales due to the mix of properties, including some with no income. They are focusing on fortifying the portfolio by selling higher-yield properties like Walgreens.

Q: Can you provide details on the impairment charge in the first quarter? A: Philip Mays explained that the impairment charge was related to properties anticipated for sale, such as Walgreens, aligning their bases with expected sale prices.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.