Alpine Income Property Trust (PINE) Q2 2024 earnings summary

Executive summary

• Portfolio consists of 137 net-leased properties in 34 states, 99.1% occupied, with a 6.6-year weighted average lease term and 67% of annualized base rent from investment grade tenants as of June 30, 2024.

• Achieved strong Q2 results with FFO and AFFO per diluted share up 16.2% year-over-year, driven by asset recycling and high-yield loan investments.

• Acquired a $14.6M property leased to Best Buy and Golf Galaxy; disposed of two properties for $6.6M at a 7% blended exit cap rate, and originated a $6.1M first mortgage construction loan at an 11.5% yield.

• Increased full-year 2024 FFO guidance to $1.58–$1.62 and AFFO guidance to $1.60–$1.64 per diluted share, a 4.2% increase at midpoint.

• Dividend yield stands at 7.1% with a conservative payout ratio and a 37.5% increase in quarterly dividend since 2020.

Financial highlights

• Q2 2024 total revenues were $12.5M, up 10.1% year-over-year; net income attributable to shareholders was $0.2M, up from $0.08M in Q2 2023.

• FFO and AFFO per diluted share for Q2 2024 were $0.43, both up 16.2% year-over-year; six-month FFO per diluted share was $0.84 and AFFO was $0.85.

• Q2 2024 lease income was $11.3M; interest income from loans was $1.0M.

• Dividend paid was $0.275 per share in Q2 2024, with a 64%–69% AFFO payout ratio.

• Net debt to enterprise value was 53% and net debt to EBITDA was 7.4x as of June 30, 2024.

Outlook and guidance

• 2024 FFO per diluted share guidance raised to $1.58–$1.62; AFFO per diluted share to $1.60–$1.64, a 4.2% increase at midpoint.

• Investment and disposition activity for 2024 expected in the $50M–$80M range each.

• Guidance assumes stable or improving economic activity and strong tenant business trends.