Alpine Income Property Trust (PINE) 22 Jul 222022 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Alpine Income Property Trust Second Quarter 2022 Earnings Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Partridge, Senior Vice President, Chief Financial Officer and Treasurer. Please go ahead.

everyone. morning Good for Property you call. today the for And second joining quarter Income Trust conference XXXX Alpine thank us operating results With CEO me our John today Albright. and President, is

I'd to forward-looking statements forward-looking discussed federal many begin, Before results everyone Form could differ to update these actual The Factors cause we in disclosed statements actual that time-to-time SEC under to in results from may today XX-Q, considered from comments these differ undertake greater securities that significantly duty we no other are from materially and of statements. are like XX-K, expectations detail company's our risks future law. and and remind filings. matters in the the Form company's

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

Thanks, Matt. And good morning, everyone.

in earnings cap the interest back high challenged the we more in environment, in quality pricing our acquire backdrop market, As as upward macroeconomics the favorable puts year first volatile properties to debt believe there call, we half on have opportunity quarter rate discussed at an will pressure rising we of rates.

we and tenant locked the result, proceeds stronger better cap capital in a into asset with emphasize second and favorable we the credits redeployed then As adjusted rates. attractive recycling our quarter where in dispositions pricing on more risk opportunity

cap property disposition of gains. million. X.X%, a more blended the remove remaining the per property of $X.X we $XX sale includes retail previously than $XX.X rate X.X%, on of $XX generating a This During of our assets sale from the gain of of cap quarter, sold $X.XX If or generating we of properties loan announced we that of million million generate at rate blended million our office at statistics, $X a office sold million gains share.

or no our reduce dispositions where are exposure the Warehouse, sectors. dining think general execution Sportsman's Home, real investments tenant a operate. property over home furnishing sectors on portfolio, we The below largely of Given longer Lobby, tenants Kitchen, to investment excellent only that part and able we've estate a quality both leased concentrations The acquire non-rated our Hobby that to portfolio the we grade office retail sporting the the years. retail half mark-to-market elevated our which were properties two casual to and Scratch is goods, focused highlight in had relevant been us of more and in to were and and allowing Cheddar’s sold they merchandise At of

as we've retailers more front, becoming discount and grapple power, inflation that to price in pressures benefit maximize from they look their acquisition emphasized the buying conscious of significant should with consumers rising a value cost they as On oriented capital.

During LA Dollar. acquired the nine [ph] Family as Tree states leased Best Dollar XX Little Fitness, Dollar located freight, such properties and General Dollar leading industry Caesars, Buy, quarter operators in we to

Dollar square tenants feet of invested years. top of transactions, sold account quarter, term sheet in over the consists Subsequent and three the lease going X%, a just XXX net XX Our we've in are Lowe's. portfolio X.X% for activity, into the and net scrobbles XXX% properties spread to acquisition of and the Year-to-date, operating these at X.X more investment Today quarter resulting into $XXX our peers XX which tenants a cash property restricted lease have related much now carwash on rate is cap credit weighted Florida year-to-date cap retail property on disposition rate million lease for our with ratings. Walgreens, relative all outs acquisitions retail average acquired our second to cap million purchased were With that Jacksonville, our we in average remaining very weighted who were to third portfolio Lowe's Taking have average all to in a at our we rate a quarter form our now balance XX at of remaining to of higher dispositions. A valuation General a a transaction have XXXX investment properties, much the sectors and proceeds currently rate comparable cash our in attractive of end the cap our X.X% in ins weighted X.X% states. X.X grade multiples. of totaling

improve higher continue rates low our in higher we drive be confident sheet, and and share. AFFO metrics delever per we'll let guidance. performance balance our FFO the at to quarter, our to quality yields, cap now Matt overall As I'll at increased sell and able and market talk property we're activities incrementally about reinvest capital

publicly occupied, from metrics, coming or traded with tenant’s of we XX% our XXX% operating credit level excellent and into Operationally, and our John. trends, have throughout remained portfolio strong companies, Thanks, nearly year. remains traded visibility have corporate which publicly our rents the

share, Second of per XX.X% second share, per the was compared increase FFO a quarter quarter or $X.XX XXXX. to XXXX $X.XX

our of per basis $X.XX a down first and of $X.XX XXX quarter or AFFO point. was largely the quarter approximately per fee $X.XX activities by growth a our half Second fee includes over per markets quarter Year-to-date the equity XXXX XX.X% external management XX.X%, General XX% by which expenses respectively, a XXXX AFFO also second the was $XXX,XXX for management XX%, totaled our when second was six administrative the year-over-year year-over-year the to of capital was manager, to year-over-year of per quarter a XX% representing decrease and year-to-date and percentage in year-over-year revenues to in $X.X months G&A share of XX.X% was positively XXXX increase to share, increases first of share, year-over-year offset $X.XX as the of from XXXX. XX%. down and FFO quarter, and revenue driven XXXX. growth from an per second and quarter million. This and of was share share, increase second compared

For a per cash company cash share, $X.XX the year-over-year over the QX XXXX current X% and increase dividend quarter of annualized yield representing an paid a second company's approximately dividend XXXX, the of of X%.

Second towards quarter at quarter and were XX% ratios very end regular we our pay-out announcing the of healthy FFO for AFFO quarterly dividend anticipate third cash the August. and

issuance we debt and which XX,XXX to of with very a the value net [ph] share. common issued half to forma we first We charge quarter, enterprise X.X pro turn the from ended XX%, proceeds fixed healthy times, of total of $XX.XX ATM coverage for a second our quarter, $X.X average a debt of and the total EBITDA to of of stock was of through nearly ratio an program times. shares maintain million, price per and continue quarter net end five the net During down

we the increase do full back per we half and a year economic did the of AFFO While anticipate a slowdown, broader share FFO year markets in guidance.

at guidance portfolio the and million meaningfully scrubbles, curve. at straight better values generate the in down and John year sale count a account million brought than to confidence rent deleveraging we're on assumptions XXXX, projected XXXX interest line to valuations expect of assets properties the occur Our and base guidance to will similar wide net to yield and carwash acquisition for that a in increasing or of reflect is our still share place We increases acquisition of prior begin our more with quarter we continued acquisition place to blended top XXXX disposition earlier. retail third account leased quarter of than guidance allowing which net the believe average the investment before acquire our to now of year And cap base sell end during driving us of for $XXX to weighted of the materialized, lower the rent the We ability rate our acquisitions rates. of conditions yield annualized in of referenced annualized in by We spreads further full redeployment positive offset million lows second occurred are between which attractive is results. cash for steepening July market the the assumed quarter million. These for that in second to $XX.X $XX.X subject which our $XXX proceeds.

$XX As acquisition the million has end we million at match guidance the at activity to million. our looked funder at through Capital disposition high $XX $XXX Creative to been million low $XXX end by recycling, at increased

per and X XXXX to $X.XX by the shares $X.XX increased now share. remarks. increased end. were ranges $X.XX shares $X.XX end, high to year be John low year weighted is million at back average was closing and the for Our year lowered the between full low end AFFO $X.XX at And the the at end full guidance X our AFFO to high share count XXXX projected now for XXXX FFO I'll FFO with his being guidance and share. pass million range by it per to

sales. property perform we're been of liquidity our real well economic it the is The valuation We of our of our have the public and And up our of to very assets quality and all of lease continue appreciate estate, even The portfolio achieve quality in cash At team's real shareholders. focused our we'll our our is Matt. Thanks assets, environment. flows confident believe with the support hard stability transparency net attractiveness well, the positioned. work the we continued built able for us open what out of We and itself portfolio questions. of time, tenants estate in this and will performance highest sector. volatile, broader we've to our the

first from Trading. Our Instructions] Erdner Matthew [Operator comes with question Jones

begin. may You

a Hey, Filling on good this in Stewart guys, for Jason congrats morning. quarter.

to you of basis of escalation, be I side environment? can the the XX% terms about guys it the in lower towards portfolio visibility? the Is macro last it increased in kind is said that given still trending XX quarter, So rent points. XXX know Or of range? what's

XX depend good I from rolling is on activity. the year-to-year it's to I what think over. going a Matt, Matt. to Good Hey, lease don't changed It's transaction hear think to range. range with In XXX is has you. general, that that

run a I forward. that's rate going So think good

tenants better out credit then and of you dispositions. And guys the still going of then rotate those on low kind roll opportunities forward? one looking into Awesome. another to Are

the here you you Yes, going moving to maybe forward. more us expect I do think can can, of same

on a and opportunity have we generating bit that low that higher and cap in So keep rates recycle on into some higher then quite to gains quality healthy tenants. really more properties rates some cap

Got you.

rates, of So seeing still dispositions? to not kind on the cap range X.X% you X%

property smaller amazing, a sales, you're it's institutional more we'd the recycle a thought we mean, seeing rates, so rates been on net they're, on good maybe see bit at buying expansion in haven't properties high from I the seeing cap much of really Yes, and lot but we're worth investors, changed ago, here. a some opportunity six to still these too Cap so, that little months really

of then kind Got locations? Or are you. depends? specific those just is And it in

locational? It cap is forward. are see incredible off sort there no, selling the cap really which low going Or execution. anything get with lower of a to a decent ability portfolio but where tenant, rate improving opportunities some credit, just not do It's rate really, execution, cap but we or get to

still in So we'll with of And recycling rate, barbell cap and credits then and that the then a sell credit. lower mixture, opportunity rates, the low effect, a disposition but the some we'll properties improve higher sell and we'll we'll very portfolio. attractive cap do of have kind really

guys. you thank Awesome,

Thank you.

with next Our question Hau from Truist. comes Anthony

Guys. Hey, morning, guys. Good John.

next pine portfolio. of for, If needs represents disposition portfolio that or end high year guidance year. that doesn't is alternative exploring? the end strategic the is to gap state getting the close current for early is a you What the third hoped the valuation next your So the that board pristine something by of the step

more have, we if mentioned Look, go. to as

makes to we're So mean, not those we're just, no trading connecting going course, where it sense a alternatives keep with yes, to still extremely I we're if we get investors. if trading, into pristine explore to, kind and of of we'll investors and condition, really, this try because

bigger companies a have a lot a will. need showing of value We investors, for lot of if the you appreciation great but portfolio are value, the folks that

NAV portfolio, to of we we better and at those if keep creating trading we're, a a would on So at better of look sorts course, discount scenarios. and

that timeline yourself? a you is And would give there guys

after couple it recycling, I No, of more portfolio. quarters improving think will and be a the self-evident

we if given we're look multiple. out And composition have look you do you investor we a small credit the at as company, there, slide If better our, look have you higher at at and our if locations, you same our just can the composition, multiple presentation, deck, the lowest and that. companies highest credit

resonate a of So, so your, to we buy seven kind a alternatives. is and don't average look people we foot foot it's others is then portfolio to look able XXX with at the in implied the if our and that, and, this you're at need other with, model, pure cap it's, your at XXX clear, or whatever's rate

portfolio? how can a And more disposition this do XXX much high the third end much more how year? guys can of you Because, represents the you after at

I be ton a beyond more Yes, think, that. there'll don't, I don't than

cut core and I think, fruit, we're sure. into hanging the it won't low going for the for

profit and the the these around embedded showing, edges, though So, of really the properties. it's even edges portfolio, around this third is in all a the trimming just in trimming

the value, decent year. and performance obviously, resonates And so, year, awesome look and folks, fairly this we it last had with performance

like it, there top So to three better share which to any keep investors, a at on it's that, by look we have like unhappy we showing tenants. think multiple, not don't would we people can but get our move we see

the after do of, kind you in mean, it's buying the and forehead. Now, kind you right, of comparison, Lowe's, I hit just the right

Thanks, guys.

Thanks.

Our next your Rob is open. line Rob Stevenson with question from Janney. comes Stevenson,

is sale? top and Hobby Or with down locations those? Good -- off multiple of you the morning, own Is the home at XX did guys. the Lobby tenants

own the the in locations. bottom XX. of we still And They've the XX. They're multiple moved top towards end top

at lows or What and term the lease there? ground the land. And sort it cap guys lease of buy that what was a remaining then type building you And of Okay. do was rate at?

Rob. ground There building and yes, rate. was to on approximately and was it cap sixes lease, No, years low XX so lease land. mid a not a called was the it It remaining was

today, home today a is up to and is are I you if low for your winds somebody an And mean, grade? with be sixes mid versus of I similar that's, were that return it? you question getting, buy Okay. on I Lowe's? I asset indicative to guess what's type if add similar or to deploy putting being alternative where dollar sized a money not go what something want the of you that amount versus mean, that you Lowe's like mean, somebody investment or your like

for the and at was uses below us. even, have we when property. it's, had of we'll of home we're type the alternatives, if Those a it's, for barbell, bashful a that really a of sold, that's definitely Lowe's see at so just market really we, lease think for again, do junky now I is Rob, where bit the type so we been more about opportunity, it's Yes, far property buying a not bought transactions, not little we as And, as a credit, property instance, that but credit rate. something alternative terrific not the we're and, is many successful that home

so be a mixture. So, it'll

the what the rough then to end the those dispositions And timing of the second at very of of Matt, bulk the come quarter? quarter was dispositions Okay.

No of before here. see earnings, sale they have were would out towards couple even really. they the quarter. think April, spread end. a in I throughout kind office the I the But hit occurred that say the QX you Let’s

average. spread on was it pretty well So out

rent today? in base annualized the is what Okay, the portfolio

is of $XX.X the million. annualized the After Lowe's, base acquisition the rent

you is of for Obviously, there, the, you XX the you've you how Because sort in do some I'm take get the there's of sales, acceleration there weren't, from the you dispositions. essentially go done today? did Okay. that what last up something etcetera. abnormal $X.XX anything around year some each $X.XX about the the you're question end with second how But year. of being, call of here I quarters get implies How do But winds impact two end, dispositions? the is, to how, guidance the the the that and the back you quarter. do from, high half to Is at of very have leading just the of guess or the if dispositions if of

it's Yes, we and of half assumed and is of that, cap back there's we've the market. acceleration dispositions if which further there's that to rates, so And going I on sort we of then raises done the an rates of equity maximize to get we're de QX guidance, the year be an And beginning of if, a said to cap that expansion assume lever. think sooner. fair top we to and can achieve dispositions, want assuming of that slowdown the in of in to want QX there end those

So the assume towards amount a guidance is disposition of share wide shares, decent and of on a range, the end in the pretty year. count the coming average does

lower So that's share. earnings what's the per sequential driving

likely we're certainly to the not did they quarter second then. likely in when as level, and quarter, happen the that of not the be Okay, not acquisitions are to weighted material third acquisitions as are we in you quarter much see any fourth more

So quarter, a net the disposition, and you're act then disposition, acquire high fourth to third be quarter. going net in

back of occur say they're acquisitions Other the most assuming lows, for the would I pipeline is market than that that usually the works. how will obviously, firming transaction QX, we're And we're end but the probably up the QX. weighted, going towards end to then which be of

material given at? $XX that? looking the amount of comment, are How amount finally, was million, just we dollar rough was dollar the then what lowest the And Okay. $XX transaction? that or what million,

million. $XX

Thanks, guys. Yes. million. time. the Perfect. right. All Appreciate $XX

Rob. Thanks,

comes next James. Raymond Milligan RJ from with Our question

line open. now is Your

Hey, good morning, guys.

Matt, clearly, But, I curious, to already of portfolio and diversification, to reduce, is a upgrading see. of you slowdown. proving slowdown, potential your further guys or sort been any questions watch Most got sort of guidance Just for economic about you'd have incorporated we're just are categories But list. you of just you broader have curious and preparing that of mean, comments like the started expectation there which sort in we've answered. categories, And, one talked the if on been question. my this the any

I'll take RJ. that

mean, we'll have terrific it's, the reduce as that rates it lease the I below really sort makes and casual sector, of as, that where far ones we locations, certainly are dining, but market. sense, So, very, are whether

declined for we've us in come And actually, them. and renewals, so, tenants to we've had early

of, So it's there's a by And that shape. where move be later. a maybe challenged where really, and But something more located. in where portfolio, through that would so tertiary kind certainly they're little in pretty or kind location, situation be really and, we through it's this recession, in of case, good look case about than the a sooner tenant bit would go a we're often rather quite we'll to that

contemplating So and there's, we're kind already really on. stands there's nothing at working that of out us that not

this, on we've So see what you'll Pretty as probably those. we it. addressed working next good so, more of in we're, think rates, far we're as quarter, cap

was tail to perspective, like multiple the improvement off and Sorry, a a discount retailers space, home like is, price mean from seen end. we I say dollar the sectors of do RJ… has I Yes, obviously, stores. years And we like targeted like we which the

we're are sectors those I And few to work. where say putting of dollars so would the a

attractive increased of we've coming lot you're then talk markets, some, individuals. that the seeing you're And the shakes still about a high follow finding terms costs. as net where move in you terms just curious buyers think out of just seeing of market competition terms landscape? debt what the in have of in just there sort into competition, are can a of obviously, there into sort Thanks. out obviously, and the about of I'm market, what the we pretty XXXX heard levered competitive guys But do as worth up, you And disposition, you the given the left out

backdrop. Yes, market better very be competition, strong, is the strong. macro mean, pretty where hunting I we but be hope consider that, less there'll it'd if the you actually,

over. going are them sides. kind attention had have they want get challenging where is, off harder lot to they're financing we're acquiring may of So for we there, debt, secured and for acquisition Or a that's them sell very to properties, side. focusing to who to it's some, be the roll of on pad some developers Because

more great very strong. in they So of we're to market to, still kind that's see as where as bring properties, general opportunity just to is going versus far

seeing So a very, bit were market there'd efficient a we you're, very a we little be you're thought where little surprised, disconnect. more

guys. Thank you,

Our B. Instructions] Kucera next from [Operator Securities. Riley you. Craig comes Thank question with

line now open. Your is

Yes, morning, guys. hey, good

some tenants sales from your in Looking tenants any to exit Did as entirely was at the you the top such there movement. list, sports second in exposure warehouse? quarter

one to and still No, have Hobby have exposure At to still we more And, continue Home Sportsman's [ph], warehouse. we and Darden Lobby.

last this Matt, was Got that receive And it? to of the you're form repayment? any I guess quarter, COVID expecting

Yes, place. deferred agreement we repayment received all of that that in were the have rent put

Great. you the potentially curious, considerations were I that the got, development? that of any or I'm you to sort you've or parcel Jacksonville just in in looking you And potential the for underwriting change believe economy develop of change timing had this out as

so elevated. seeing that are on tenant the still wants still conversations, construction we're to any And, Construction is definitely costs still there. costs. not and help in where be we're one, Yes,

is they we would it's that rent the tenant want. us And conversation for more need the pay to to really with yield so get

and us conversation. slightly conversation, all side very make that's costs to that And value that's it down going help engineer as on on-going having out so come that or very, figure They're it higher, it, construction trying on-going but higher what to well. and work a rent an so a conversation, how to constructive an just, hopefully

great. Thanks, Okay, guys.

you. Thank

from next [Indiscernible] Factset. Our question comes with

currently showing remarks. call for further like Albright to John at I'm time. now over the button. is no back [Indiscernible] to line this mute Your I'd open. questions And closing

attending you you. forward Thank post following Thank today's call. look operator. with call up you, you for and to Thank we everyone

This concludes today's conference Thank call. participating. you for

disconnect. may You now