Alpine Income Property Trust Announces $24 Million First Mortgage Investment Secured by 41-Property Portfolio
16 November 2023 - 1:30PM
Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company”)
announced today that it has entered into an agreement to provide a
$24.0 million first mortgage (the “Loan”) secured by 41 retail
properties located throughout the United States (the “Portfolio”).
The three-year Loan was fully funded at closing and is
interest-only through maturity. The Loan includes an origination
fee and bears an initial fixed interest rate of 8.75% for the first
year, before increasing to 9.0% in year two and 9.25% in year
three.
In addition to the Loan investment, the Company
anticipates entering into a revenue sharing agreement with a
subsidiary of CTO Realty Growth, Inc. (“CTO”), its external
manager. It is expected that the revenue sharing agreement will
allow PINE to receive a share of the asset management fees,
disposition management fees, leasing commissions and other fees
related to CTO’s management and administration of the Portfolio
(the “Revenue Sharing Agreement”). The Company’s share of the fees
under the Revenue Sharing Agreement will be based on fees earned by
CTO associated with the single tenant properties within the
Portfolio. The Company’s revenue from the Revenue Sharing Agreement
is forecasted to be approximately $16,000 per month and will be
reduced as single tenant properties within the Portfolio are sold.
The forecasted monthly revenue does not include potential revenue
sharing income related to disposition management fees and leasing
commissions.
“As we seek out longer duration core investment
opportunities with more compelling yields than what is currently
available in the market today, we’re excited about the opportunity
to invest in this low leverage, shorter duration first mortgage
loan that provides what we believe is an outsized current yield and
attractive fee stream,” noted John P. Albright, President and Chief
Executive Officer of Alpine Income Property Trust, Inc.
The Company also announced today that is has
entered into a first mortgage construction loan agreement to
provide $6.8 million of funding towards the development of a 5-acre
land development project anchored by Wawa and McDonalds in a
submarket of Nashville, Tennessee. The two-year first mortgage is
interest-only through maturity, includes an origination fee, and
bears an initial fixed interest rate of 11.0%.
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 &
Disclosures
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,” “potential” and
similar references to future periods, or by the inclusion of
forecasts or projections. Statements, among others, relating to the
Company’s entry into the Revenue Share Agreement, the terms of the
Revenue Sharing Agreement (including the Company’s anticipated
share of the fees under the Revenue Sharing Agreement), and the
Company’s forecasted revenue from the Revenue Sharing Agreement,
are forward-looking statements, and the Company cannot provide
assurance that it will achieve such results. 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, 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.
Contact: |
Matthew M. PartridgeSenior Vice
President, Chief Financial Officer & Treasurer(407)
904-3324mpartridge@alpinereit.com |
|
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