Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or
“PINE”) today announced its operating results and earnings for the
quarter and year ended December 31, 2023.
Select Full Year 2023
Highlights
- Reported Net Income per diluted
share attributable to the Company of $0.19 for the year ended
December 31, 2023.
- Reported FFO per diluted share of
$1.47 for the year ended December 31, 2023.
- Reported AFFO per diluted share of
$1.49 for the year ended December 31, 2023.
- Acquired 14 net lease properties
for total acquisition volume of $82.9 million at a weighted average
going-in cash cap rate of 7.4%.
- Originated three first mortgage
investments totaling $38.6 million of funding commitments at a
weighted average initial yield of 9.1%.
- Sold 24 net lease properties for
total disposition volume of $108.3 million at a weighted average
exit cap rate of 6.3%, generating total gains of $9.3 million.
- Increased investment grade-rated
tenant exposure to 65% as of December 31, 2023, up from 54% as of
December 31, 2022.
- Raised approximately $12.4 million
of net proceeds through the Company’s ATM offering program at a
weighted average gross price of $18.96 per share.
- Repurchased 899,011 shares of the
Company’s common stock at a weighted average gross price of $16.23
per share, for a total cost of $14.6 million.
- Paid cash dividends during the full
year 2023 of $1.10 per share, representing a yield of 7.2% based on
the closing price of the Company’s common stock on February 7,
2024.
Select Fourth Quarter 2023
Highlights
- Reported Net Income per diluted
share attributable to the Company of $0.02 for the quarter ended
December 31, 2023.
- Reported FFO per diluted share of
$0.37 for the quarter ended December 31, 2023.
- Reported AFFO per diluted share of
$0.38 for the quarter ended December 31, 2023.
- Acquired two retail net lease
properties for total acquisition volume of $3.0 million, reflecting
a weighted average going-in cash cap rate of 7.3%.
- Originated two first mortgage
investments totaling $30.8 million of funding commitments at a
weighted average initial yield of 9.2%.
- Sold two net lease properties for
total disposition volume of $8.7 million at a weighted average exit
cash cap rate of 7.3%, generating total gains of $1.6 million.
- Repurchased 594,790 shares of the
Company’s common stock at a weighted average gross price of $16.01
per share, for a total cost of $9.5 million.
- Paid a common stock cash dividend
of $0.275 per share.
CEO Comments
“We were opportunistic in 2023, creating value
through core acquisitions and strategic dispositions, share
repurchases, and more recently, originating first mortgage
investments,” said John P. Albright, President and Chief Executive
Officer of Alpine Income Property Trust. “We believe these
transactions have us well-positioned to deliver strong earnings
growth in 2024 and that our laddered debt maturity schedule and
primarily fixed cost of debt will help ensure that our attractive
current dividend yield remains well-covered.”
Quarterly Operating Results
Highlights
The table below provides a summary of the
Company’s operating results for the quarter ended December 31, 2023
(in thousands, except per share data):
|
|
Three Months EndedDecember 31,
2023 |
|
Three Months EndedDecember 31,
2022 |
|
Variance to ComparablePeriod in the Prior
Year |
Total Revenues |
|
$ |
11,581 |
|
$ |
11,592 |
|
$ |
(11) |
|
(0.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
370 |
|
$ |
5,525 |
|
$ |
(5,155) |
|
(93.3%) |
Net Income Attributable to
PINE |
|
$ |
335 |
|
$ |
4,862 |
|
$ |
(4,527) |
|
(93.1%) |
Net Income per Diluted Share
Attributable to PINE |
|
$ |
0.02 |
|
$ |
0.34 |
|
$ |
(0.32) |
|
(93.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
FFO (1) |
|
$ |
5,646 |
|
$ |
5,304 |
|
$ |
342 |
|
6.4% |
FFO per Diluted
Share (1) |
|
$ |
0.37 |
|
$ |
0.37 |
|
$ |
0.00 |
|
0.0% |
AFFO (1) |
|
$ |
5,801 |
|
$ |
5,763 |
|
$ |
38 |
|
0.7% |
AFFO per Diluted
Share (1) |
|
$ |
0.38 |
|
$ |
0.41 |
|
$ |
(0.03) |
|
(7.3%) |
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
Annual Operating Results
Highlights
The table below provides a summary of the
Company’s operating results for year ended December 31, 2023 (in
thousands, except per share data):
|
|
Year EndedDecember 31, 2023 |
|
Year EndedDecember 31, 2022 |
|
Variance to ComparablePeriod in the Prior
Year |
Total Revenues |
|
$ |
45,644 |
|
$ |
45,191 |
|
$ |
453 |
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
3,266 |
|
$ |
33,955 |
|
$ |
(30,689) |
|
(90.4%) |
Net Income Attributable to
PINE |
|
$ |
2,917 |
|
$ |
29,720 |
|
$ |
(26,803) |
|
(90.2%) |
Net Income per Diluted Share
Attributable to PINE |
|
$ |
0.19 |
|
$ |
2.17 |
|
$ |
(1.99) |
|
(91.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
FFO (1) |
|
$ |
22,910 |
|
$ |
23,718 |
|
$ |
(808) |
|
(3.4%) |
FFO per Diluted
Share (1) |
|
$ |
1.47 |
|
$ |
1.73 |
|
$ |
(0.26) |
|
(15.0%) |
AFFO (1) |
|
$ |
23,211 |
|
$ |
24,236 |
|
$ |
(1,025) |
|
(4.2%) |
AFFO per Diluted
Share (1) |
|
$ |
1.49 |
|
$ |
1.77 |
|
$ |
(0.28) |
|
(15.8%) |
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid,
per Share |
|
$ |
1.100 |
|
$ |
1.090 |
|
$ |
0.010 |
|
0.9% |
(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 December 31, 2023,
the Company acquired two retail net lease properties for total
acquisition volume of $3.0 million at a weighted average going-in
cash cap rate of 7.3%. As of the acquisition date, the properties
had a weighted average remaining lease term of 9.6 years. The
acquired properties are both located in Arkansas, leased to Family
Dollar/Dollar Tree, and 100% of annualized cash base rents are
generated from a tenant or the parent of a tenant with an
investment grade credit rating.
During the year ended December 31, 2023, the
Company acquired 14 net lease properties for total acquisition
volume of $82.9 million at 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 and were located
in seven states. Approximately 66% of annualized cash base rents
acquired are generated from a tenant or the parent of a tenant with
an investment grade credit rating.
During the three months ended December 31, 2023,
the Company originated two first mortgage investments with a total
funding commitment of $30.8 million at a weighted average initial
yield of 9.2%.
During the year ended December 31, 2023, the
Company originated three first mortgage investments with a total
funding commitment of $38.6 million at a weighted average initial
yield of 9.1%.
The following table presents the Company's three
mortgage investments as of December 31, 2023:
Description |
Location |
Collateral |
FundingCommitment |
FundedBalance |
CouponRate |
InitialTerm |
Land DevelopmentFirst Mortgage |
Greenwood, IN |
33-Acre Development ProjectAnchored by Wawa |
$7.8 million |
$7.0 million |
8.50% |
2 years |
Land DevelopmentFirst
Mortgage |
Antioch, TN |
5-Acre Development
ProjectAnchored by Wawa & McDonald’s |
$6.8 million |
$4.6 million |
11.00% |
2 years |
First Mortgage |
Various |
41 Retail Properties |
$24.0 million |
$24.0 million |
8.75% |
3 years |
Total / Weighted Average |
|
$38.6 million |
$35.6 million |
9.1% |
|
|
|
|
|
|
|
On December 4, 2023, the Company entered into a
revenue sharing agreement with a subsidiary of CTO Realty Growth,
Inc. (“CTO”), its external manager, whereby the Company is expected
to receive a share of the asset management and disposition
management fees, leasing commissions, and other fees related to
CTO’s management and administration of the 41-property portfolio
that serves as collateral to the Company’s $24.0 million first
mortgage (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 $24,000 per month and
will be reduced as single tenant properties within the portfolio
are sold. The forecasted monthly revenue of $24,000 does not
include potential revenue sharing income related to disposition
management fees and leasing commissions.
Dispositions
During the three months ended December 31, 2023,
the Company sold two net lease properties for total disposition
volume of $8.7 million at a weighted average exit cash cap rate of
7.3%. The sale of the properties generated total gains of $1.6
million.
During the year ended December 31, 2023, the
Company sold 24 net lease properties for total disposition volume
of $108.3 million at a weighted average exit cash cap rate of 6.3%.
The sale of the properties generated total gains of $9.3
million.
Property Portfolio
The Company’s property portfolio consisted of
the following as of December 31, 2023:
Number of Properties |
138 |
Square Feet |
3.8 million |
Annualized Base Rent |
$38.8 million |
Weighted Average Remaining
Lease Term |
7.0 years |
States where Properties are
Located |
35 |
Occupancy |
99.1% |
|
|
% of Annualized Base Rent
Attributable to Investment Grade Rated Tenants (1)(2) |
65% |
% of Annualized Base Rent
Attributable to Credit Rated Tenants (1)(3) |
89% |
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. If applicable, in
the event of a split rating between S&P Global Ratings and
Moody’s Investors Services, the Company utilizes the higher of the
two ratings as its reference point as to whether a tenant is
defined as an Investment Grade Rated Tenant.(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 property portfolio included the
following top tenants that represent 2.0% or greater of the
Company's total annualized base rent as of December 31, 2023:
Tenant |
Credit Rating (1) |
|
% of Annualized Base Rent |
Walgreens |
BBB- / Ba2 |
|
12% |
Lowe’s |
BBB+ / Baa1 |
|
9% |
Dick’s Sporting Goods |
BBB / Baa3 |
|
9% |
Dollar Tree/Family Dollar |
BBB / Baa2 |
|
9% |
Dollar General |
BBB / Baa2 |
|
5% |
Walmart |
AA / Aa2 |
|
5% |
Best Buy |
BBB+ / A3 |
|
4% |
At Home |
CCC / Caa3 |
|
4% |
Hobby Lobby |
NR / NR |
|
3% |
Home Depot |
A / A2 |
|
3% |
LA Fitness |
B- / B3 |
|
2% |
Kohl’s |
BB / Ba2 |
|
2% |
Burlington |
BB+ / Ba2 |
|
2% |
Camping World |
B+ / B2 |
|
2% |
Other |
|
|
29% |
Total |
|
|
100% |
Any differences are a result of rounding.(1) Credit Rating is
the available rating from S&P Global Ratings and/or Moody’s
Investors Service, as of December 31, 2023. |
|
The Company’s property portfolio consisted of
the following industries as of December 31, 2023:
Industry |
|
|
% of Annualized Base Rent |
Dollar Stores |
|
|
14% |
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% |
Office Supplies |
|
|
1% |
Quick Service Restaurant |
|
|
1% |
Convenience Stores |
|
|
1% |
Farm & Rural Supply |
|
|
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 December 31, 2023. |
|
The Company’s property portfolio included
properties in the following states as of December 31, 2023:
State |
|
|
% of Annualized Base Rent |
New Jersey |
|
|
12% |
Texas |
|
|
9% |
New York |
|
|
9% |
Michigan |
|
|
8% |
Ohio |
|
|
7% |
Georgia |
|
|
5% |
Florida |
|
|
5% |
Illinois |
|
|
4% |
West Virginia |
|
|
4% |
Oklahoma |
|
|
3% |
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% |
Arkansas |
|
|
1% |
Connecticut |
|
|
1% |
Indiana |
|
|
1% |
New Mexico |
|
|
1% |
Nebraska |
|
|
<1% |
Maine |
|
|
<1% |
North Carolina |
|
|
<1% |
Washington |
|
|
< 1% |
South Dakota |
|
|
< 1% |
California |
|
|
< 1% |
Virginia |
|
|
< 1% |
Kentucky |
|
|
< 1% |
Mississippi |
|
|
< 1% |
Total |
35 States |
|
100% |
Any differences are a result of rounding. |
|
Capital Markets and Balance
Sheet
During the quarter ended December 31, 2023, the
Company completed the following notable capital markets
activities:
- Repurchased 594,790 shares of the
Company’s common stock on the open market under its previously
authorized $15.0 million buyback program for a total cost of $9.5
million, or an average price of $16.01 per share.
During the year ended December 31, 2023, the
Company completed the following notable capital markets
activities:
- Issued 665,929 common shares under
its ATM offering program at a weighted average gross price of
$18.96 per share, for total net proceeds of $12.4 million.
- Repurchased 899,011 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 $14.6
million, or an average price of $16.23 per share.
The following table provides a summary of the
Company’s long-term debt as of December 31, 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) |
|
$ |
76.5 million |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
January 2027 |
|
|
|
|
|
|
|
|
Total Debt/Weighted Average
Rate |
|
$ |
276.5 million |
|
3.84% |
|
|
(1) As of December 31, 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 December 31, 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 December 31, 2023, the Company utilized an
interest rate swap to fix SOFR and achieve a fixed interest rate of
3.21% plus 0.10% and the applicable spread on $50 million of the
outstanding balance on the Credit Facility. |
|
As of December 31, 2023, the Company held a
91.8% interest in Alpine Income Property OP, LP, the Company’s
operating partnership (the “Operating Partnership” or “OP”). There
were 1,223,854 OP Units held by third parties outstanding and
13,659,207 shares of the Company’s common stock outstanding, for
total outstanding common stock and OP Units held by third parties
of 14,883,061 as of December 31, 2023.
As of December 31, 2023, the Company’s net debt
to Pro Forma EBITDA was 7.7 times, and as defined in the Company’s
credit agreement, the Company’s fixed charge coverage ratio was 3.5
times. As of December 31, 2023, the Company’s net debt to total
enterprise value was 51.1%. 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 redeemed for common shares.
Dividend
On November 21, 2023, the Company announced a
$0.275 per share common stock cash dividend for the fourth quarter
of 2023, payable on December 29, 2023 to stockholders of record as
of the close of business on December 14, 2023. The fourth quarter
2023 cash dividend represents a payout ratio of 74.3% and 72.4% of
the Company’s fourth quarter 2023 FFO per diluted share and AFFO
per diluted share, respectively.
During the year ended December 31, 2023, the
Company paid common stock cash dividends of $1.10 per share, a 0.9%
increase over the Company’s full year 2022 common stock cash
dividends. The dividends paid in 2023 represent payout ratios of
74.8% of full year 2023 FFO per diluted share and 73.8% of full
year 2023 AFFO per diluted share.
2024 Outlook
The Company's outlook and guidance for 2024
assumes stable or improving economic activity, strong underlying
business trends related to each of our tenants and other
significant assumptions.
The Company’s outlook for 2024 is as
follows:
|
|
Outlook Range for 2024 |
|
|
Low |
|
High |
Investments |
|
$50 million |
to |
$80 million |
Dispositions |
|
$50 million |
to |
$80 million |
FFO per Diluted Share |
|
$1.51 |
to |
$1.56 |
AFFO per Diluted Share |
|
$1.53 |
to |
$1.58 |
Weighted Average Diluted
Shares Outstanding |
|
14.9 million |
to |
14.9 million |
|
|
|
|
|
Earnings Conference Call & Webcast
The Company will host a conference call to
present its operating results for the quarter and year ended
December 31, 2023 on Friday, February 9, 2024, 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 details below and you will be provided with dial-in
details.
|
Webcast: |
https://edge.media-server.com/mmc/p/gtd9dd4u |
|
Dial-In: |
https://register.vevent.com/register/BI528cf76e8c0445b8b9cdd986e4713b84 |
|
|
|
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 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 first mortgage 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, 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 real estate related
depreciation and amortization, as well as extraordinary items (as
defined by GAAP) such as 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, including the pro
rata share of such adjustments of unconsolidated subsidiaries.
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 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.
Alpine Income Property Trust, Inc.Consolidated
Balance Sheets(In thousands, except share and per share data) |
|
|
As of |
|
|
December 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
Real Estate: |
|
|
|
|
|
|
Land, at Cost |
|
$ |
149,314 |
|
$ |
176,857 |
Building and Improvements, at Cost |
|
|
328,993 |
|
|
322,510 |
Total Real Estate, at Cost |
|
|
478,307 |
|
|
499,367 |
Less, Accumulated Depreciation |
|
|
(34,714) |
|
|
(22,313) |
Real Estate—Net |
|
|
443,593 |
|
|
477,054 |
Assets Held for Sale |
|
|
4,410 |
|
|
— |
Commercial Loans and Investments |
|
|
35,080 |
|
|
— |
Cash and Cash Equivalents |
|
|
4,019 |
|
|
9,018 |
Restricted Cash |
|
|
9,712 |
|
|
4,026 |
Intangible Lease Assets—Net |
|
|
49,292 |
|
|
60,432 |
Straight-Line Rent Adjustment |
|
|
1,409 |
|
|
1,668 |
Other Assets |
|
|
17,045 |
|
|
21,233 |
Total Assets |
|
$ |
564,560 |
|
$ |
573,431 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Accounts Payable, Accrued Expenses, and Other Liabilities |
|
$ |
5,197 |
|
$ |
4,411 |
Prepaid Rent and Deferred Revenue |
|
|
3,166 |
|
|
1,479 |
Intangible Lease Liabilities—Net |
|
|
4,907 |
|
|
5,050 |
Long-Term Debt |
|
|
275,677 |
|
|
267,116 |
Total Liabilities |
|
|
288,947 |
|
|
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 December 31,
2023 and December 31, 2022 |
|
|
— |
|
|
— |
Common Stock, $0.01 par value per share, 500 million shares
authorized, 13,659,207 shares issued and outstanding as of December
31, 2023 and 13,394,677 shares issued and outstanding as of
December 31, 2022 |
|
|
137 |
|
|
134 |
Additional Paid-in Capital |
|
|
243,690 |
|
|
236,841 |
Retained Earnings (Dividends in Excess of Net Income) |
|
|
(2,359) |
|
|
10,042 |
Accumulated Other Comprehensive Income |
|
|
9,275 |
|
|
14,601 |
Stockholders' Equity |
|
|
250,743 |
|
|
261,618 |
Noncontrolling Interest |
|
|
24,870 |
|
|
33,757 |
Total Equity |
|
|
275,613 |
|
|
295,375 |
Total Liabilities and Equity |
|
$ |
564,560 |
|
$ |
573,431 |
Alpine Income Property Trust, Inc.Consolidated
Statements of Operations(In thousands, except share, per share and
dividend data) |
|
|
(Unaudited)Three Months
Ended |
|
Year Ended |
|
|
December 31,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Lease Income |
|
$ |
11,016 |
|
$ |
11,592 |
|
$ |
44,967 |
|
$ |
45,191 |
Interest Income from Commercial Loans and Investments |
|
|
525 |
|
|
— |
|
|
637 |
|
|
— |
Other Revenue |
|
|
40 |
|
|
— |
|
|
40 |
|
|
— |
Total Revenues |
|
|
11,581 |
|
|
11,592 |
|
|
45,644 |
|
|
45,191 |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Expenses |
|
|
1,849 |
|
|
1,242 |
|
|
6,580 |
|
|
5,435 |
General and Administrative Expenses |
|
|
1,478 |
|
|
1,414 |
|
|
6,301 |
|
|
5,784 |
Provision for Impairment |
|
|
356 |
|
|
— |
|
|
3,220 |
|
|
— |
Depreciation and Amortization |
|
|
6,472 |
|
|
6,332 |
|
|
25,758 |
|
|
23,564 |
Total Operating Expenses |
|
|
10,155 |
|
|
8,988 |
|
|
41,859 |
|
|
34,783 |
Gain on Disposition of Assets |
|
|
1,552 |
|
|
6,553 |
|
|
9,334 |
|
|
33,801 |
Gain (Loss) on Extinguishment of Debt |
|
|
— |
|
|
(443) |
|
|
23 |
|
|
(727) |
Net Income from Operations |
|
|
2,978 |
|
|
8,714 |
|
|
13,142 |
|
|
43,482 |
Investment and Other Income |
|
|
63 |
|
|
3 |
|
|
289 |
|
|
12 |
Interest Expense |
|
|
(2,671) |
|
|
(3,192) |
|
|
(10,165) |
|
|
(9,539) |
Net Income |
|
|
370 |
|
|
5,525 |
|
|
3,266 |
|
|
33,955 |
Less: Net Income Attributable to Noncontrolling Interest |
|
|
(35) |
|
|
(663) |
|
|
(349) |
|
|
(4,235) |
Net Income Attributable to Alpine Income Property Trust, Inc. |
|
$ |
335 |
|
$ |
4,862 |
|
$ |
2,917 |
|
$ |
29,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Alpine Income Property Trust, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.02 |
|
$ |
0.39 |
|
$ |
0.21 |
|
$ |
2.48 |
Diluted |
|
$ |
0.02 |
|
$ |
0.34 |
|
$ |
0.19 |
|
$ |
2.17 |
Weighted Average Number of Common Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
13,698,617 |
12,500,785 |
|
13,925,362 |
|
11,976,001 |
Diluted (1) |
|
15,131,010 |
|
14,204,279 |
|
15,560,524 |
|
13,679,495 |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid |
|
$ |
0.275 |
|
$ |
0.275 |
|
$ |
1.100 |
|
$ |
1.090 |
(1) Includes the weighted average of 1,432,393 shares during
the three months ended December 31, 2023, 1,635,162 shares during
the year ended December 31, 2023, and 1,703,494 shares during the
three months and year ended December 31, 2022 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, which OP Units were redeemed by
PINE for an equivalent number of shares of common stock of PINE
during the three months ended December 31, 2023. |
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 |
|
Year Ended |
|
|
December 31,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
Net Income |
|
$ |
370 |
|
$ |
5,525 |
|
$ |
3,266 |
|
$ |
33,955 |
Depreciation and Amortization |
|
|
6,472 |
|
|
6,332 |
|
|
25,758 |
|
|
23,564 |
Provision for Impairment |
|
|
356 |
|
|
— |
|
|
3,220 |
|
|
— |
Gain on Disposition of Assets |
|
|
(1,552) |
|
|
(6,553) |
|
|
(9,334) |
|
|
(33,801) |
Funds from Operations |
|
$ |
5,646 |
|
$ |
5,304 |
|
$ |
22,910 |
|
$ |
23,718 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Loss (Gain) on Extinguishment of Debt |
|
|
— |
|
|
443 |
|
|
(23) |
|
|
727 |
Amortization of Intangibles to Lease Income |
|
|
(118) |
|
|
(80) |
|
|
(417) |
|
|
(328) |
Straight-Line Rent Adjustment |
|
|
(16) |
|
|
(198) |
|
|
(402) |
|
|
(935) |
COVID-19 Rent Repayments, Net |
|
|
— |
|
|
— |
|
|
— |
|
|
45 |
Non-Cash Compensation |
|
|
80 |
|
|
74 |
|
|
318 |
|
|
310 |
Amortization of Deferred Financing Costs to Interest Expense |
|
|
180 |
|
|
192 |
|
|
710 |
|
|
599 |
Other Non-Cash Expense |
|
|
29 |
|
|
28 |
|
|
115 |
|
|
100 |
Adjusted Funds from Operations |
|
$ |
5,801 |
|
$ |
5,763 |
|
$ |
23,211 |
|
$ |
24,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per Diluted Share |
|
$ |
0.37 |
|
$ |
0.37 |
|
$ |
1.47 |
|
$ |
1.73 |
AFFO per Diluted Share |
|
$ |
0.38 |
|
$ |
0.41 |
|
$ |
1.49 |
|
$ |
1.77 |
Alpine Income Property Trust, Inc.Non-GAAP
Financial MeasuresReconciliation of Net Debt to Pro Forma
EBITDA(Unaudited)(In thousands) |
|
Three Months Ended |
|
December 31, 2023 |
Net Income |
$ |
370 |
Adjustments: |
|
|
Depreciation and Amortization |
|
6,472 |
Provision for Impairment |
|
356 |
Gain on Disposition of Assets |
|
(1,552) |
Straight-Line Rent Adjustment |
|
(16) |
Non-Cash Compensation |
|
80 |
Amortization of Deferred Financing Costs to Interest Expense |
|
180 |
Amortization of Intangible Assets and Liabilities to Lease
Income |
|
(118) |
Other Non-Cash Expense |
|
29 |
Interest Expense, Net of Deferred Financing Costs Amortization |
|
2,491 |
EBITDA |
$ |
8,292 |
|
|
|
Annualized EBITDA |
$ |
33,168 |
Pro Forma Annualized Impact of Current Quarter Acquisitions and
Dispositions, Net (1) |
|
849 |
Pro Forma EBITDA |
$ |
34,017 |
|
|
|
Total Long-Term Debt |
$ |
275,677 |
Financing Costs, Net of Accumulated Amortization |
|
823 |
Cash and Cash Equivalents |
|
(4,019) |
Restricted Cash |
|
(9,712) |
Net Debt |
$ |
262,769 |
|
|
|
Net Debt to Pro Forma EBITDA |
|
7.7x |
(1) Reflects the pro forma annualized impact on Annualized
EBITDA of the Company’s acquisition and disposition activities
during the three months ended December 31, 2023. |
|
Contact:Matthew M. PartridgeSenior Vice
President, Chief Financial Officer & Treasurer(407)
904-3324mpartridge@alpinereit.com
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