Alpine Income Property Trust (PINE) 22 Oct 202020 Q3 Earnings call transcript

Good morning, and welcome to the Alpine Income Property Trust Third Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to John Albright, President and CEO. Please go ahead.

operator. you, Thank and the everyone operating for us joining conference Good Income thank Property for Alpine XXXX Trust today call. morning, you third results quarter Officer Partridge, I new have pleased this Matt am Chief to Financial joining me morning. our

over turn customary today’s Before Matt? to regarding Matt it began, provide to we call. I’ll a disclosures

differ SEC update matters I’d no John. duty materially statements. are everyone undertake from Company’s in XX-Q that forward-looking in risks filings. could under statements are remind future other Form expectations actual considered to statements. time-to-time Law. differ actual these to of And The Company’s the many Thanks, Factors greater detail that to Form significantly the results forward-looking and these may results Federal in disclosed discussed like today cause XX-K, from and our from Securities we comments

find You will over reconciliations measures non-GAAP financial our in which alpinereit.com. to release, that, reports on at contain can call our back of turn website the With use SEC we John. earnings our now I

the we is of It as for the Alpine for contractual to months collection achieve third XXX% three within quarter Matt. an base each excellent rent Thanks, work rate quarter.

tenants. were negotiations the both strong real Advance grade by in lease estate the fundamentals of acquired able QX us, the acquisition. from the income rent properties of of average rated going-in to the weighted at the with rate exhibiting of quarter, properties, In time acquisition XX tenants quality X.X%. in in third in producing our million investment third XX Dollar Auto approximately refocus and largely Notably is the an strategy $XX.X growing years behind XXX% quarter base at targeted the Parts, weighted for General and term on average actively states investment With executing we annualized cap to quarter we five company third of invested high investing leads

cap represented acquisition activity, with in-place Outback operating we Virginia rate price quarter in Charlottesville, our a going-in a our basis. their acquired approximately to and adjusted grade addition Year-to-date, accretive on XX X.XX% rate coupled acquisitions a portfolio for of income, Steakhouse cap associated $XX.X credit believe This is risk to properties our weighted on also we’ve third when highly In at rate a sold our of average going-in cap million. million we $X.X which net X.X%. of for investment

and acquisitions our primarily performing that were this credits new sectors. of excited particularly We’re high comprised year

invested of from first coming maintain though three for two doubled with and of now assets the base annualized top XX XX our three five Specifically diversification. and incremental of the through store portfolio the selectively opportunity including in first Dollar investments which tier our tenants, markets These ULI’s all of by which sectors in approximately the outsized rent, we’ve the Dollar convenience markets representing sector in with new of number provided grocery, XX% more quarters notably exposure five top two-thirds parts we increased retail Walmart level our X-Eleven and than even partner nine have of evidenced tenants. able Initially, of to excellent XXXX, concentration to been also leading provide dollar as our months through XX General, of we’ve portfolio auto of Walmart, sectors, rents as up and make annualized our to retail year, base such the operators, an store, nearly top XXXX. new General

respective in of X.X as tenants our their with space top As the comprised rentable of portfolio of third our serving quarter, located XX properties the leaders of nearly million XX occupied was XXX% and of all income end in states consisted square-feet five of industries.

beyond, and prospective there we economy As quarter of tenants. look existing its uncertainty performance on remains the regarding operational our the and and the underlying considerable into impact forward fourth

And have $XXX and to received the activities very increased guidance acquisition million AFFO to our previously our increased pipeline, from acquisition the say With call and base in $XXX contractual activities. I’ll to midpoint happy financial with I’m sheet announced million. XXX% our However, we turn and guidance. rents we’ve of evolving over previously have the transaction FFO provided we our in of to that, now our discuss results Matt for combination October balance

Thanks, John.

average management everyone excellent strong total XXX% that portfolio what repayment each than by As the rent to quarter. contractual the the rent quarter respective John during collection were trends, remind Thanks date. due the effect XXX% $X.X the prior related approximately quarter, of per in less third deferred the the I’ll end include to revenues abatements anticipate to three experienced rate and COVID-XX base prior due payment months. represents deferrals rents rent of rent collection rent or would’ve on agreed results entering month We collection of of in resulting collected rent month XXX% of during the X% referenced, the third collecting to reported million the and contractually rents XXXX. proactive company into been was each we amendments. that Comparatively during of

per were $X.X share share. operations or from quarter of million operations adjusted million or were XXXX, and per $X.XX funds from third the $X.XX For $X funds

the the during quarter from mentioned AFFO agreements. referral announced previously was previously impacted second $XXX,XXX rent As by

repaid in a are AFFO deferrals positive we to repayment. periods, impact subsequent rent will our in periods experience of the those As

revenue believe our more continue to the was For million, which in company’s the expenses our third $XX,XXX AFFO. administrative the quarter, XXXX, quarter rent of as the and General third $X.X percentage execution economies quarter XXXX. inclusive from we repayments, realize totaled points fee scale will of strategy. basis down of XXX impacted the received a over of management just third of which trend We as quarter we of investment second of scheduled positively this deferral

stockholders fourth XX dividend at announced, Directors stockholders Part of annualized business the growth share. and quarterly represents As to underlying FFO of company, Board and strategy our declared cash on XX% dividend and the cash our the a XX, at approximately on December in XX% dividend shareholders. record yield have consideration a the on in third paid XX% of XXXX. we represented ratio and providing consistent reliable $X.XX the to to increase be believe of approved $X.XX policy, of of And This an quarter September of XX. close Company’s a paid dividend previously payout our quarterly of dividend on per of company share, a company AFFO record the dividend the XX, has XXXX a per to September previous December over This quarter of of X.X%.

outstanding at September was our as XX%, cash XX Now the was quarter times. enterprise coverage on and quarter was approximately million. $X.X total X total to Total million while balance fixed $XX.X end the turning to debt value Net hand for approximately ratio of sheet. charge debt was

XX% few that As until is the we announced $XXX revolving extension credit for addition revolving million just maturities option we our relationships. take maturity there one $XXX new no of to facility ago, expanded year debt could the million a increase With banking credit XXXX from days which XXXX the of and a to facility. two that to

to a now as very execute of we in for turn With that, a back I’ll the over call We’re earnings our liquidity his growth drive and John quarter the good growth position closing strategy. summary remarks. to

an growth In to strides as some made the operationally Matt. like the advance our meaningful of Thanks, I’d particularly in of Q&A, organization. highlights, some summarize since we’ve

As month previously noted, we collection have rent this rate the first of fourth quarter. achieved past the for including XXX% months, four

of to expansion want strengthen the this and tenants the drive our and year strategy it time, scale. to their tangible our have the earnings the allowed questions. successes our the on to and fourth liquidity quarter continue disciplined growing support increase within At their up going portfolio for execute guidance thank for we’ll to on share transaction growth. the create our build open economies investment third only of XX% further We during which we execution approximately full a acquiring Operator? dividend quarter, the In momentum shareholders to credit is our X.X%. And facility, on to of team for cash ample I investment by summary, quarter-over-quarter Consistent congratulate our increase per and yield has market outside us and quarter. continued with grade

Instructions] comes ahead. And first go from Davidson. [Operator question our Barry of Please Oxford D.A.

Great. Thanks guys.

a as far If you to you of more maybe far and amount are that could on intent of you’ve acquisition looked the as give can? on extent and maybe at color pipeline, letter dollar close getting to how the us your much where as me you phone as little

Look, pretty Barry. strong. is Thanks, the Sure. pipeline acquisition

negotiation fully a mouth for some sort We our or have happen we’re Thinking not due more in within – into guidance. something may diligence. that of negotiation might some that’s than come

with in seeing So front what far us locations. we’re we’re comfortable of and high credits as quality good very as

Would XXXX to in that XXXX, was XQ a somewhat you to acquisitions you close light? be do little considering in able roughly expect did in that

the Of and year our obviously been course, that success highly more. pandemic – what far to or so accomplish this we’ve the given record even we’re be this that given and that track confident able can replicated year,

that. perfect. Appreciate Right,

Turning to the balance sheet.

any you want metrics position in to, be you at debt to ever of range can of You income, whatever cap would metrics. – look guys metric stellar the outside are at. to you that what debt would want, or it fixed point market you speak to any and debt from to to want But by which EBITDA kind the lift

I’ll Yes. that kind discuss let Matt of point.

Matt. Thanks, Great.

to show, but EBITDA. X debt run they net a want average investors it, times around somewhere to I put on company ceiling road during that wanted told don’t long-term to a the the

we obviously that to We’re that’s may level, intended below approaching a going comfortable that average. operating and longer-term be certainly be but above

in I So depend us. us, front to for going opportunities of the think on it’s

all Thanks, great. me. Great, guys. That’s for

Thank you.

Thanks.

Janney. question from Rob come will go next Stevenson ahead. of Please Our

level and be XXXX who Good attractive you the more pay of motivated some of Outback, end pricing? beyond the might John, morning, by assets over what with the more to to years, those sell to few deals that the you year is you even today portfolio and want more next provide in may guys. close to better buyers think

there there’s we our still thanks and took to implied cap intentionally look have. property we Yes. the to market, disconnect rate the for base between relative mean, I disconnect I – question. and think stock that is mean on because a price asset – I a out

think appreciate shareholders didn’t that. I So probably

been at dining we’ve certainly, appetite during the a investor ground strong that, assets. for still look very You we of this casual those pandemic, type but and challenged on there’s knew

of universe. demonstrate investor of almost that the we the portfolio and asset and hit So to the out the strength strength

longer credit, accretive highly sell higher was be able a lease, redeploy dining of basically casual that investment. and sort into so that credit And to sector to a

a in lot certainly wanted we a So of have we roundabout that to at more we this plans if to, do way, could don’t point.

off then into And that Okay. feeding of piggybacking of question. Barry’s and sort

million the guidance acquisitions implies the $XX So of fourth about in quarter.

Do at the the preferred? having us target regarding conversations next guys talking that Matt especially with But levels $XX capacity think the the you at stock over company’s give You and quarters? the to you few board you about and you acquisitions, million the just give Can the assets on line glimpse how the about funding when next look additional you financing more a sales? of change, growth room leverage you there. the into thinking do increase was are about, with you are $XX

certainly but this capacity. to lever cap dining could to Yes. Certainly, not it just see up portfolio, if or different the take we certainly do with very lever what did rate casual If stock we did have the investments with keep then some plans don’t working was we not and capacity thing the there’s, investment nice low have a will, and you It’s down, just up unique this opportunity, if the going performing. we opportunities thing have. we’re sales to

the the different back. of are just for options. leverage or us sitting doing just have don’t we all So intention there and But opportunities different flexible

comes about. the So at of as kind time we’ll opportunities different that look

Okay. Appreciate it. guys. Thanks

you. Thank

from Kucera go Riley Our Craig Please ahead. next of question comes Securities. B.

welcome And morning, Matt, aboard. guys. Good

Craig. Thanks,

about First of you’re going talk about tell this all, I kind quarter? the us that you Dollar want so significantly the compelling General’s so third of what in acquired quarter. Can to you was

driven during very That’s a very it look, credit turns strong very that a necessity into successful is a I well growing and – we operator. like done mean credit, lot. business, the pandemic it’s that very credit

certainly, whole a we see lot to I into of more but more mind we very So it a good having excited with good them, great lease opportunities if of more that don’t a expect the we’re wouldn’t length, company company. credit and onboard. have

corporate can quarter? there leases on any you you some executed us guarantee this the sort Okay, or the give were Dollar with of color that support level? And General great. Is at

a credit. certainly Well, corporate it’s

So we’re getting into the mother ship.

certainly wouldn’t if get credit. be we So the we didn’t full it buying

of Okay, great. like But And you of thinking assets mentioned you feel office more versus in thoughts still performance it earlier – your might you what office that your even the the retail, add way? had John, today? performed well. Are pandemic Are current kind tilted look I towards to given you pipeline the and thoughts retail? so that because had in are to

guidance. being Yes. the of or below have office at open high-quality to looking The really looked are acquisition office do we’ve still retail our keep pipeline the single-tenant that kind XXX% is We sense made moment. priced acquisitions, something at

to open right pipeline us. a the is So it’s still retail. we’re it’s it situation special and now for – got be to But

I back is an sort I forward? about AFFO. it. I’m this a maybe the sure raising circle to was the think appreciated Was Or the about the want initial level FFO How thinking XX% higher of increase the investors dividend, quarters, based dividend how should XX% board forward? this a think XX% to recurring cash going direction the on Got payout of to in of of payout was of investors going about dividend ratios sort the step flow? which

to and grow somewhere board, of we Matt. the Obviously, intentions the In think between portfolio. with it’s have XX% long-term Craig, the conversations AFFO. I targets XX%

to retaining the so dividend with to continue longer for as mind, payout continue that QX increase flow is top certainly for a is. term And step but of towards evaluate cash And that the ratio. grow, where we we’ll

been any Or great. are be a week, up laying I last they Vacations, discussions been I great? downsizing Okay, announced space people to regarding of want there they that’d with on amount off. that – circle you? them any they’d think Hilton healthy Grand Had from color

Thanks for question. the Yes.

properties. outside Vacations So we’re door had Grand we half position of We shorter regards more feel Hilton lease their obviously them to they announced and duration. buildings two expanded timeshare have that are space next the our in in layoffs and that corporate with has like very good expensive properties office with in buildings

they’ll buildings. heard consolidate of that we’ve the discussions is So into had already those been plan – operations we’ve and some our that

the most office only efficient, their of out So where storey office to single cost them space, buildings the and in they’re probably we’re Orlando, cheapest where the tenant.

of elevator other and And they an so if you don’t get think are have about this buildings thing. to other tenants or they buildings world, that other tenants. spaces of that in COVID there other with multi-storey with kind sort have And

the So and building. this gives them in the efficiency of – security being our of

is where And of that So them. occupancies. we’re other are kind with their rent very confident paying also they’re us we the than less

one me. more just Got it. And for

you you on heading trouble out or the little categories a outlook sort your into give that’s As are Can deferred. – October, we X% still any abated of and of bit us having still worked got stand that rent getting of rent here about in XXXX? you here being and color

Craig. Yes,

been So able that’s theaters agreements. and participation also we’re a with the The those those to existing deferral though obviously the the but the collecting is areas income into with post length some we’ve rights specifically as of deferrals them entered received and entertainment of part obligations, deferral we’ve XXX% space, agreements lease, where of Alpine are enhance gotten agreements.

with being like good we point, a paid. all this place, feel pretty rents in October So especially at we’re

Appreciate Thanks. Okay. it.

go RJ Milligan Our Raymond James. next from of ahead. Please question comes

Good morning.

we touch in we that’s as X% abatements? the expect recover? of what’s either or – XXXX of curious expectation XXXX, to bucket? back you from into to wanted do that Just levels sort just as on deferrals into pre-COVID I Matt, much to Or look the So that how move recover

Yes.

talked prepared up way the and about the on for ramps some that of were it range which I QX, QX agreements in really the $XX,XXX. QX in out, same deferral then XXXX. laid slight So It’s and generally was of QX, there remarks in repayment

balance be the all through to expect we deferrals XXXX. so repaid And the of

Okay. And that and the bucket? mix what’s point deferral abatement basis XXX in between

Yes.

abatement the year. then So and the everything else that on is this X%. abatement of piece through is through abatements, is months And The the otherwise depending was X% between end but only deferrals. with it’s lease the

Okay. That makes rent’s then, of And collected sense. obviously, for billed third the a XXX% and quarter.

are term John, risk of concerning already that going We’re if or just curious, longer for fallout going rent. categories the might paid thoughts But be be those any forward what have concerned forward? on might potential you

Yes.

to really rejecting just them watch going a they and percentage one, got and if out they’re that good look through like lease say the go addition Obviously, can on with part they the mean, spot to It on we theaters and really come in them but accepting always we’re is with a if good feel So, certain spot a deal, instance, feel base we I a negotiations rent. the leases. obviously had them I let’s in say extended COVID we’re for of think and we goes small in because ones look the because only see rent at with we and and forth like so our We which – AMC. bankrupt. process

little at look either operations their strong AMC very competition. market us a very a were the it’s in cheap very and And so you pre-COVID and and paying rent with

very a that happens. and are we going of to through if that be strong properties be So type bankruptcy base feel those accepted

labor high pain. you’re going rent think like if some very very to is more our some I see sort costs, pass-throughs real that’s of concerning with had say we theater, expensive And versus feel we and let’s where not so urban exposure expensive

it, we very kind look comfortable. of that’s that feel of but stay at now. right top So on how it With we we

Okay. Thanks all I guys. That’s have.

Thank you.

to This concludes closing to any remarks. question-and-answer the I John like Albright session. turn back over for our would conference

joining I Thank to you throughout call. the quarter. And to the you talking for look forward

conference may The Thank now presentation is today’s you attending for concluded. disconnect. and you now