Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or
“PINE”) today announced its operating results and earnings for the
quarter ended September 30, 2023.
Select Highlights
- Reported Net
Loss per diluted share attributable to the Company of ($0.05) for
the quarter ended September 30, 2023.
- Reported FFO per
diluted share of $0.37 for the quarter ended September 30, 2023, a
decrease of 7.5% from the comparable prior year period.
- Reported AFFO
per diluted share of $0.38 for the quarter ended September 30,
2023, a decrease of 9.5% from the comparable prior year
period.
- Acquired three
retail net lease retail properties during the third quarter of 2023
for total acquisition volume of $19.4 million, reflecting a
weighted average going-in cash cap rate of 9.0%.
- Originated a
$7.8 million first mortgage construction loan at a fixed interest
rate of 8.5%, secured by a 33-acre land development project
anchored by Wawa in a submarket of Indianapolis, Indiana.
- Sold eight
retail net lease properties during the third quarter of 2023 for
total disposition volume of $20.6 million at a weighted average
exit cash cap rate of 6.3%, generating total gains of $2.6
million.
- Increased
investment grade-rated tenant exposure to 64% as of September 30,
2023, up from 49% as of September 30, 2022.
- Repurchased
280,332 shares of the Company’s common stock during the third
quarter of 2023 for a total cost of $4.7 million, or an average
price of $16.78 per share.
- Paid a cash
dividend for the third quarter of 2023 of $0.275 per share,
representing an annualized yield of 6.7% based on the closing price
of the Company’s common stock on October 18, 2023.
- Book value as of September 30, 2023
was $19.12 per share.
CEO Comments
"Our third quarter results were driven by our
differentiated asset recycling program and continued focus on
identifying value in a transactions market that we believe has been
slow to reprice in the rising interest rate environment," said John
P. Albright, President and Chief Executive Officer of Alpine Income
Property Trust. "Our transaction activities during the quarter were
well-diversified, as we took advantage of strong buyer demand for
our non-investment grade assets, acquired properties supported by
attractive real estate fundamentals at above market cap rates, and
invested in our existing portfolio with the repurchase of nearly $5
million of our common equity. As we look forward to the balance of
the year, we’ve reduced our guidance in consideration of more
conservative expectations regarding the timing of investment
activity, a tenant bankruptcy, and increased borrowing costs. Given
that we have significantly upgraded our portfolio over the past few
years, we believe we are well-suited for what is becoming a more
challenging environment.”
Quarterly Operating Results
Highlights
The table below provides a summary of the
Company’s operating results for the quarter ended September 30,
2023 (in thousands, except per share data):
|
|
Three Months Ended September 30,
2023 |
|
Three Months Ended September 30,
2022 |
|
Variance to Comparable Period in the Prior
Year |
Total Revenues |
|
$ |
11,559 |
|
|
$ |
11,520 |
|
$ |
39 |
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(939 |
) |
|
$ |
11,170 |
|
$ |
(12,109 |
) |
(108.4 |
%) |
Net Income (Loss) Attributable
to PINE |
|
$ |
(837 |
) |
|
$ |
9,770 |
|
$ |
(10,607 |
) |
(108.6 |
%) |
Net Income (Loss)
per Diluted Share Attributable to PINE |
$ |
(0.05 |
) |
|
$ |
0.72 |
|
$ |
(0.77 |
) |
(107.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
FFO (1) |
|
$ |
5,867 |
|
|
$ |
5,425 |
|
$ |
442 |
|
8.1 |
% |
FFO per Diluted Share (1) |
|
$ |
0.37 |
|
|
$ |
0.40 |
|
$ |
(0.03 |
) |
(7.5 |
%) |
AFFO (1) |
|
$ |
5,932 |
|
|
$ |
5,676 |
|
$ |
256 |
|
4.5 |
% |
AFFO per Diluted Share
(1) |
|
$ |
0.38 |
|
|
$ |
0.42 |
|
$ |
(0.04 |
) |
(9.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid,
per Share |
|
$ |
0.275 |
|
|
$ |
0.275 |
|
$ |
0.000 |
|
0.0 |
% |
(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,
2023 (in thousands, except per share data):
|
Nine Months Ended September 30,
2023 |
|
Nine Months Ended September 30,
2022 |
|
Variance to Comparable Period in the Prior
Year |
Total Revenues |
$ |
34,063 |
|
$ |
33,599 |
|
$ |
464 |
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
2,896 |
|
$ |
28,430 |
|
$ |
(25,534 |
) |
(89.8 |
%) |
Net Income Attributable to
PINE |
$ |
2,582 |
|
$ |
24,858 |
|
$ |
(22,276 |
) |
(89.6 |
%) |
Net Income per Diluted Share
Attributable to PINE |
$ |
0.16 |
|
$ |
1.84 |
|
$ |
(1.68 |
) |
(91.1 |
%) |
|
|
|
|
|
|
|
|
|
|
FFO (1) |
$ |
17,264 |
|
$ |
18,414 |
|
$ |
(1,150 |
) |
(6.2 |
%) |
FFO per Diluted Share (1) |
$ |
1.10 |
|
$ |
1.36 |
|
$ |
(0.26 |
) |
(19.1 |
%) |
AFFO (1) |
$ |
17,410 |
|
$ |
18,473 |
|
$ |
(1,063 |
) |
(5.8 |
%) |
AFFO per Diluted Share
(1) |
$ |
1.11 |
|
$ |
1.37 |
|
$ |
(0.26 |
) |
(19.0 |
%) |
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid,
per Share |
$ |
0.825 |
|
$ |
0.815 |
|
$ |
0.010 |
|
1.2 |
% |
(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.
Investments
During the three months ended September 30,
2023, the Company acquired three high-quality net lease properties
for total acquisition volume of $19.4 million, reflecting a
weighted average going-in cash cap rate of 9.0%. As of the
acquisition date, the properties had a weighted average remaining
lease term of 12.6 years, were located in three states, and were
leased to tenants operating in three retail sectors, including the
dollar stores, health & fitness, and general merchandise
sectors.
During the nine months ended September 30, 2023,
the Company acquired 12 high-quality net lease properties for total
acquisition volume of $79.9 million, reflecting a weighted average
going-in cash cap rate of 7.4%. As of the acquisition date, the
properties had a weighted average remaining lease term of 8.7
years, were located in seven states, and were leased to tenants
operating in ten retail sectors, including the off-price retail,
general merchandise, quick service restaurant, casual dining,
consumer electronics, sporting goods, home improvement, dollar
stores, and health & fitness sectors. Approximately 61% of
annualized base rents acquired are generated from a tenant or the
parent of a tenant with an investment grade credit rating.
During the three and nine months ended September
30, 2023, the Company entered into a first mortgage construction
loan agreement to provide $7.8 million of funding towards the
development of a 33-acre land development project anchored by Wawa
in a submarket of Indianapolis, Indiana. The two-year first
mortgage is interest-only through maturity, includes an origination
fee, and bears a fixed interest rate of 8.5%.
Dispositions
During the three months ended September 30,
2023, the Company sold eight properties for total disposition
volume of $20.6 million at a weighted average exit cash cap rate of
6.3%, generating total gains of $2.6 million.
During the nine months ended September 30, 2023,
the Company sold 22 properties for total disposition volume of
$99.6 million at a weighted average exit cash cap rate of 6.2%,
generating total gains of $7.8 million.
Property Portfolio
The Company’s portfolio consisted of the
following as of September 30, 2023:
Number of Properties |
138 |
Square Feet |
3.9 million |
Annualized Base Rent |
$39.2 million |
Weighted Average Remaining
Lease Term |
7.1 years |
States where Properties are
Located |
35 |
Occupancy |
99.1% |
|
|
% of Annualized Base Rent
Attributable to Investment Grade Rated Tenants (1)(2) |
64% |
% of Annualized Base Rent
Attributable to Credit Rated Tenants (1)(3) |
87% |
Any differences are a result of rounding.
(1) 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.
(2) 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.
(3) 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 portfolio included the following
top tenants that represent 2.0% or greater of the Company's total
annualized base rent as of September 30, 2023:
Tenant |
Credit Rating (1) |
|
% of Annualized Base Rent |
Walgreens |
BBB |
|
12 |
% |
Lowe’s |
BBB+ |
|
9 |
% |
Dick’s Sporting Goods |
BBB |
|
9 |
% |
Dollar Tree/Family Dollar |
BBB |
|
8 |
% |
Dollar General |
BBB |
|
5 |
% |
Walmart |
AA |
|
5 |
% |
Best Buy |
BBB+ |
|
4 |
% |
At Home |
CCC |
|
4 |
% |
Hobby Lobby |
N/A |
|
3 |
% |
Home Depot |
A |
|
3 |
% |
LA Fitness |
B- |
|
2 |
% |
Kohl’s |
BB |
|
2 |
% |
Burlington |
BB+ |
|
2 |
% |
Other |
|
|
32 |
% |
Total |
|
|
100 |
% |
Any differences are a result of rounding.
(1) Credit rating is from S&P Global
Ratings, Moody’s Investors Service, Fitch Ratings or the National
Association of Insurance Commissioners, as applicable, as of
September 30, 2023. 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.
The Company’s portfolio consisted of the
following industries as of September 30, 2023:
Industry |
|
|
% of Annualized Base Rent |
Dollar Stores |
|
|
13 |
% |
Pharmacy |
|
|
13 |
% |
Home Improvement |
|
|
13 |
% |
Sporting Goods |
|
|
12 |
% |
Home Furnishings |
|
|
8 |
% |
General Merchandise |
|
|
6 |
% |
Consumer Electronics |
|
|
6 |
% |
Grocery |
|
|
5 |
% |
Entertainment |
|
|
5 |
% |
Off-Price Retail |
|
|
4 |
% |
Health & Fitness |
|
|
4 |
% |
Specialty Retail |
|
|
3 |
% |
Automotive Parts |
|
|
2 |
% |
Convenience Stores |
|
|
2 |
% |
Farm & Rural Supply |
|
|
1 |
% |
Office Supplies |
|
|
1 |
% |
Quick Service Restaurant |
|
|
1 |
% |
Casual Dining |
|
|
< 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 1% of the Company’s ABR as of September 30,
2023.
The Company’s portfolio included properties in
the following states as of September 30, 2023:
State |
|
|
% of Annualized Base Rent |
New Jersey |
|
|
12 |
% |
Texas |
|
|
9 |
% |
New York |
|
|
9 |
% |
Michigan |
|
|
8 |
% |
Ohio |
|
|
7 |
% |
Georgia |
|
|
5 |
% |
Florida |
|
|
5 |
% |
Illinois |
|
|
4 |
% |
Oklahoma |
|
|
4 |
% |
West Virginia |
|
|
4 |
% |
Alabama |
|
|
3 |
% |
Minnesota |
|
|
3 |
% |
Kansas |
|
|
3 |
% |
Arizona |
|
|
2 |
% |
Wisconsin |
|
|
2 |
% |
Louisiana |
|
|
2 |
% |
Missouri |
|
|
2 |
% |
Massachusetts |
|
|
2 |
% |
Maryland |
|
|
2 |
% |
Nevada |
|
|
2 |
% |
South Carolina |
|
|
2 |
% |
Pennsylvania |
|
|
2 |
% |
Kentucky |
|
|
1 |
% |
Connecticut |
|
|
1 |
% |
Indiana |
|
|
1 |
% |
New Mexico |
|
|
1 |
% |
Nebraska |
|
|
<1% |
Maine |
|
|
<1% |
Arkansas |
|
|
<1% |
North Carolina |
|
|
< 1% |
Washington |
|
|
< 1% |
South Dakota |
|
|
< 1% |
California |
|
|
< 1% |
Virginia |
|
|
< 1% |
Mississippi |
|
|
< 1% |
Total |
35 States |
|
100 |
% |
Any differences are a result of rounding.
Capital Markets and Balance Sheet
During the quarter ended September 30, 2023, the
Company completed the following notable capital markets
activity:
- Repurchased 280,332 shares of the
Company’s common stock on the open market under the previously
authorized $15.0 million buyback program for a total cost of $4.7
million, or an average price of $16.78 per share.
The following table provides a summary of the
Company’s long-term debt as of September 30, 2023:
Component of Long-Term Debt |
|
|
Principal |
|
|
Interest Rate |
|
|
Maturity Date |
2026 Term Loan (1) |
|
$ |
100.0 million |
|
SOFR + 10 bps +[1.35% - 1.95%] |
|
May 2026 |
2027 Term Loan (2) |
|
$ |
100.0 million |
|
SOFR + 10 bps +[1.25% - 1.90%] |
|
January 2027 |
Revolving Credit Facility
(3) |
|
$ |
50.0 million |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
January 2027 |
Total Debt/Weighted Average
Rate |
|
$ |
250.0 million |
|
3.36% |
|
|
(1) As of September 30, 2023, the Company
has utilized interest rate swaps to fix SOFR and achieve a weighted
average fixed interest rate of 2.05% plus the SOFR adjustment of
0.10% and the applicable spread for the $100 million 2026 Term Loan
balance.
(2) As of September 30, 2023, the Company
has utilized interest rate swaps to fix SOFR and achieve a weighted
average fixed interest rate of 1.18% plus the SOFR adjustment of
0.10% and the applicable spread for the $100 million 2027 Term Loan
balance.
(3) As of September 30, 2023, the Company
has utilized interest rate swaps to fix SOFR and achieve a weighted
average fixed interest rate of 3.21% plus the SOFR adjustment of
0.10% and the applicable spread for the $50 million balance on the
Company’s Revolving Credit Facility.
As of September 30, 2023, the Company held an
89.0% interest in Alpine Income Property OP, LP, the Company’s
operating partnership (the “Operating Partnership” or “OP”). There
were 1,703,494 OP Units held by third parties outstanding and
13,769,609 shares of the Company’s common stock outstanding, for
total outstanding common stock and OP Units held by third parties
of 15,473,103, as of September 30, 2023.
As of September 30, 2023, the Company’s net debt
to Pro Forma 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, 2023, the Company’s net debt to total
enterprise value was 47.9%. The Company calculates total enterprise
value as the sum of net debt and the market value of the Company's
outstanding common shares and OP Units, as if the OP Units have
been converted to common shares.
Dividend
On August 23, 2023, the Company announced a cash
dividend for the third quarter of 2023 of $0.275 per share, payable
on September 29, 2023 to stockholders of record as of the close of
business on September 14, 2023. The third quarter 2023 cash
dividend represents payout ratios of 74.3% and 72.4% of the
Company’s third quarter 2023 FFO per diluted share and AFFO per
diluted share, respectively.
2023 Outlook
The Company has revised its outlook for 2023 to
take into account the Company’s year-to-date performance and
revised expectations regarding the Company’s investment activities,
forecasted capital markets transactions, and other significant
assumptions.
The Company’s revised outlook for 2023 is as
follows:
|
|
Revised Outlook Range for 2023 |
|
Change from Prior Outlook |
|
|
Low |
|
High |
|
Low |
|
High |
Acquisitions |
|
$100 million |
to |
$125 million |
|
- |
to |
- |
Dispositions |
|
$100 million |
to |
$125 million |
|
- |
to |
- |
FFO per Diluted Share |
|
$1.45 |
to |
$1.47 |
|
($0.05) |
to |
($0.06) |
AFFO per Diluted Share |
|
$1.46 |
to |
$1.48 |
|
($0.06) |
to |
($0.07) |
Weighted Average Diluted
Shares Outstanding |
|
15.6 million |
to |
15.6 million |
|
0.1 million |
to |
(0.4) million |
Third Quarter 2023 Earnings Conference Call &
Webcast
The Company will host a conference call to
present its financial and operating results for the quarter ended
September 30, 2023, on Friday, October 20, 2023, 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 information below and you will be provided with
dial-in details.
|
Webcast: |
https://edge.media-server.com/mmc/p/fg68mtir |
|
|
|
|
Dial-In: |
https://register.vevent.com/register/BI7fdbafb88c2e4305bc44b67274dc0cca |
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.
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 commercial loans and 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, 2022, the Company’s
Quarterly Report on Form 10-Q for the quarter ended September 30,
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
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 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 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 real estate related depreciation and
amortization, including the pro rata share of such adjustments of
unconsolidated subsidiaries.
To derive AFFO, we 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 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 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, and other
non-cash income or expense. Cash interest expense is also excluded
from Pro Forma 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 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 EBITDA may not be comparable
to similarly titled measures employed by other companies.
Contact: Matthew M.
PartridgeSenior Vice President, Chief Financial Officer &
Treasurer(407) 904-3324mpartridge@alpinereit.com
Alpine Income Property Trust,
Inc.Consolidated Balance Sheets(In
thousands, except share and per share data)
|
As of |
|
(Unaudited)September 30,
2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Real Estate: |
|
|
|
|
|
Land, at Cost |
$ |
150,425 |
|
|
$ |
176,857 |
|
Building and Improvements, at Cost |
|
332,654 |
|
|
|
322,510 |
|
Total Real Estate, at Cost |
|
483,079 |
|
|
|
499,367 |
|
Less, Accumulated Depreciation |
|
(31,517 |
) |
|
|
(22,313 |
) |
Real Estate—Net |
|
451,562 |
|
|
|
477,054 |
|
Assets Held for Sale |
|
4,410 |
|
|
|
— |
|
Commercial Loans and
Investments |
|
6,874 |
|
|
|
— |
|
Cash and Cash Equivalents |
|
6,265 |
|
|
|
9,018 |
|
Restricted Cash |
|
11,166 |
|
|
|
4,026 |
|
Intangible Lease
Assets—Net |
|
51,624 |
|
|
|
60,432 |
|
Straight-Line Rent
Adjustment |
|
1,483 |
|
|
|
1,668 |
|
Other Assets |
|
24,293 |
|
|
|
21,233 |
|
Total Assets |
$ |
557,677 |
|
|
$ |
573,431 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Accounts Payable, Accrued Expenses, and Other Liabilities |
$ |
5,625 |
|
|
$ |
4,411 |
|
Prepaid Rent and Deferred Revenue |
|
1,884 |
|
|
|
1,479 |
|
Intangible Lease Liabilities—Net |
|
5,184 |
|
|
|
5,050 |
|
Long-Term Debt |
|
249,099 |
|
|
|
267,116 |
|
Total Liabilities |
|
261,792 |
|
|
|
278,056 |
|
Commitments and
Contingencies |
|
|
|
|
|
Equity: |
|
|
|
|
|
Preferred Stock, $0.01 par value per share, 100 million shares
authorized, no shares issued and outstanding as of September 30,
2023 and December 31, 2022 |
|
— |
|
|
|
— |
|
Common Stock, $0.01 par value per share, 500 million shares
authorized, 13,769,609 shares issued and outstanding as of
September 30, 2023 and 13,394,677 shares issued and outstanding as
of December 31, 2022 |
|
138 |
|
|
|
134 |
|
Additional Paid-in Capital |
|
244,300 |
|
|
|
236,841 |
|
Retained Earnings |
|
1,075 |
|
|
|
10,042 |
|
Accumulated Other Comprehensive Income |
|
17,706 |
|
|
|
14,601 |
|
Stockholders' Equity |
|
263,219 |
|
|
|
261,618 |
|
Noncontrolling Interest |
|
32,666 |
|
|
|
33,757 |
|
Total Equity |
|
295,885 |
|
|
|
295,375 |
|
Total Liabilities and Equity |
$ |
557,677 |
|
|
$ |
573,431 |
|
|
|
|
|
|
|
|
|
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, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Lease Income |
$ |
11,447 |
|
|
$ |
11,520 |
|
|
$ |
33,951 |
|
|
$ |
33,599 |
|
Interest Income from Commercial Loans and Investments |
|
112 |
|
|
|
— |
|
|
|
112 |
|
|
|
— |
|
Total Revenues |
|
11,559 |
|
|
|
11,520 |
|
|
|
34,063 |
|
|
|
33,599 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Real Estate Expenses |
|
1,722 |
|
|
|
1,816 |
|
|
|
4,731 |
|
|
|
4,193 |
|
General and Administrative Expenses |
|
1,652 |
|
|
|
1,460 |
|
|
|
4,823 |
|
|
|
4,370 |
|
Provision for Impairment |
|
2,864 |
|
|
|
— |
|
|
|
2,864 |
|
|
|
— |
|
Depreciation and Amortization |
|
6,528 |
|
|
|
5,866 |
|
|
|
19,286 |
|
|
|
17,232 |
|
Total Operating Expenses |
|
12,766 |
|
|
|
9,142 |
|
|
|
31,704 |
|
|
|
25,795 |
|
Gain on Disposition of Assets |
|
2,586 |
|
|
|
11,611 |
|
|
|
7,782 |
|
|
|
27,248 |
|
Gain (Loss) on Extinguishment of Debt |
|
— |
|
|
|
(284 |
) |
|
|
23 |
|
|
|
(284 |
) |
Net Income from Operations |
|
1,379 |
|
|
|
13,705 |
|
|
|
10,164 |
|
|
|
34,768 |
|
Investment and Other Income |
|
125 |
|
|
|
9 |
|
|
|
226 |
|
|
|
9 |
|
Interest Expense |
|
(2,443 |
) |
|
|
(2,544 |
) |
|
|
(7,494 |
) |
|
|
(6,347 |
) |
Net Income (Loss) |
|
(939 |
) |
|
|
11,170 |
|
|
|
2,896 |
|
|
|
28,430 |
|
Less: Net Income (Loss) Attributable to Noncontrolling
Interest |
|
(102 |
) |
|
|
1,400 |
|
|
|
314 |
|
|
|
3,572 |
|
Net Income (Loss) Attributable to Alpine Income Property Trust,
Inc. |
$ |
(837 |
) |
|
$ |
9,770 |
|
|
$ |
2,582 |
|
|
$ |
24,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Attributable to Alpine Income Property Trust,
Inc. |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
0.82 |
|
|
$ |
0.18 |
|
|
$ |
2.11 |
|
Diluted |
$ |
(0.05 |
) |
|
$ |
0.72 |
|
|
$ |
0.16 |
|
|
$ |
1.84 |
|
Weighted Average Number of Common Shares: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
13,946,194 |
|
11,888,171 |
|
|
14,001,774 |
|
|
11,799,151 |
|
Diluted (1) |
15,649,688 |
|
|
13,591,665 |
|
|
15,705,268 |
|
|
13,502,645 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid |
$ |
0.275 |
|
|
$ |
0.275 |
|
|
$ |
0.825 |
|
|
$ |
0.815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes the weighted average impact of
1,703,494 shares 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.
Alpine Income Property Trust,
Inc.Non-GAAP Financial
MeasuresFunds From Operations and Adjusted Funds
From Operations(Unaudited)(In thousands, except per share
data)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Net Income (Loss) |
$ |
(939 |
) |
|
$ |
11,170 |
|
|
$ |
2,896 |
|
|
$ |
28,430 |
|
Depreciation and Amortization |
|
6,528 |
|
|
|
5,866 |
|
|
|
19,286 |
|
|
|
17,232 |
|
Provision for Impairment |
|
2,864 |
|
|
|
— |
|
|
|
2,864 |
|
|
|
— |
|
Gain on Disposition of Assets |
|
(2,586 |
) |
|
|
(11,611 |
) |
|
|
(7,782 |
) |
|
|
(27,248 |
) |
Funds from Operations |
$ |
5,867 |
|
|
$ |
5,425 |
|
|
$ |
17,264 |
|
|
$ |
18,414 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Straight-Line Rent Adjustment |
|
(112 |
) |
|
|
(209 |
) |
|
|
(386 |
) |
|
|
(737 |
) |
Loss (Gain) on Extinguishment of
Debt |
|
— |
|
|
|
284 |
|
|
|
(23 |
) |
|
|
284 |
|
COVID-19 Rent Repayments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
45 |
|
Non-Cash Compensation |
|
79 |
|
|
|
79 |
|
|
|
238 |
|
|
|
236 |
|
Amortization of Deferred Financing Costs to Interest Expense |
|
179 |
|
|
|
150 |
|
|
|
530 |
|
|
|
407 |
|
Amortization of Intangible Assets and Liabilities to Lease
Income |
|
(110 |
) |
|
|
(78 |
) |
|
|
(299 |
) |
|
|
(248 |
) |
Other Non-Cash Expense |
|
29 |
|
|
|
25 |
|
|
|
86 |
|
|
|
72 |
|
Adjusted Funds from Operations |
$ |
5,932 |
|
|
$ |
5,676 |
|
|
$ |
17,410 |
|
|
$ |
18,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per Diluted Share |
$ |
0.37 |
|
|
$ |
0.40 |
|
|
$ |
1.10 |
|
|
$ |
1.36 |
|
AFFO per Diluted Share |
$ |
0.38 |
|
|
$ |
0.42 |
|
|
$ |
1.11 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alpine Income Property Trust,
Inc.Non-GAAP Financial
MeasuresReconciliation of Net Debt to Pro Forma
EBITDA(Unaudited)(In thousands)
|
Three Months Ended |
|
September 30, 2023 |
Net Income (Loss) |
$ |
(939 |
) |
Adjustments: |
|
|
Depreciation and
Amortization |
|
6,528 |
|
Provision for Impairment |
|
2,864 |
|
Gains on Disposition of
Assets |
|
(2,586 |
) |
Straight-Line Rent
Adjustment |
|
(112 |
) |
Non-Cash Compensation |
|
79 |
|
Amortization of Deferred
Financing Costs to Interest Expense |
|
179 |
|
Amortization of Intangible Assets
and Liabilities to Lease Income |
|
(110 |
) |
Other Non-Cash Expense |
|
29 |
|
Interest Expense, Net of Deferred
Financing Costs Amortization |
|
2,264 |
|
EBITDA |
$ |
8,196 |
|
|
|
|
Annualized EBITDA |
$ |
32,784 |
|
Pro Forma Annualized Impact of
Current Quarter Acquisitions and Dispositions, Net (1) |
|
949 |
|
Pro Forma EBITDA |
$ |
33,733 |
|
|
|
|
Total Long-Term Debt |
|
249,099 |
|
Financing Costs, Net of
Accumulated Amortization |
|
901 |
|
Cash and Cash Equivalents |
|
(6,265 |
) |
Restricted Cash |
|
(11,166 |
) |
Net Debt |
$ |
232,569 |
|
|
|
|
Net Debt to Pro Forma EBITDA |
|
6.9x |
|
(1) Reflects the pro forma annualized
impact on Annualized EBITDA of the Company’s investments and
disposition activity during the three months ended September 30,
2023.
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