Alpine Income Property Trust (PINE) 19 Apr 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Alpine Q1 2024 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, Lisa Vorakoun, Chief Accounting Officer. Please go ahead.

thank Property joining Operating Trust Call. and the today Results everyone, Income Alpine First morning, you us for for Conference Good Quarter XXXX me John and With our President, is today Albright. CEO

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

our alpinereit.com. release we financial non-GAAP recent can and of contain at SEC measures which You earnings website most reconciliations our reports presentation, investor the use, on find

would his like turn I over call the remarks. prepared Now John for to to

I'd Lisa, company. We our his his our good to Thanks, and Partridge, contributions him many like morning, well CFO, to Matt new former with wish by from thanking off start opportunity. everyone.

a search new and our us million was mortgage during for million funded started did a firm have we CFO originate traditional Reviewing national loan activity, $X.X $X.X first first interviewing was a candidates. although during investment quiet which for We have quarter investment, the engaged market to the acquisition quarter. the of quarter,

and cap a of towards submarket of during provide for was under was to on X-year loan for million. retail acquisition yield $X by X Atlanta, Chick-fil-A a made acquired pad cash X.X%. growing our $X.X funding million the investment Rouge rate land XX.X%, was Georgia. The We CBS our land a The anchored development Baton in also quarter term, in our investment the initial the a loan with

to the opportunities reluctant fewer front, On attractive sellers. we acquisition core saw the due investment property

However, market more for the further as the may longer to for become that productive rates, adjusts market we anticipate us. higher transaction

better we opportunities, which We seeing to additional in high-yielding and second are pursue risk-adjusted quarter. the loan expect

of our tenants within XXX in portfolio and million quarter, totaling of square occupied operating consisted properties, of with XX X.X XX the As was feet states. end the XX% sectors

top Dollar Walgreens, year-end Our Tree from DICK'S tenants unchanged our tenants. call as earnings X mid-February, remain General, our Dollar Family Goods, in top Dollar, and with Sporting Lowe's,

All of them investment-grade carry credit ratings.

basis from year. quarter increase annualized with the an We with rents coming which an is total of base points ended XXX our XX% this tenants from time credit rating, of last investment-grade

We portfolio. stability have a strong balance XXXX, of the until sheet maturities our strength the high-quality and no debt complements and

an at over attractive trading want the also of will which discount I over million we communicating of on and dividend shares per of approximately in near share. highlight $XX And yield provides yield approximately we Alpine believe average stock implied share, X.X% current cap at an rate $XX valuation with our current per our past a X.XX%. year, over to is Considering the value price, in the is a book share. which the over almost We of $XX.XX an investment community work value capitalization X our company's have future. repurchased price stock with X% and investment, or better

to disposition of This the sell of to active be to the opportunities. organically for area we year. earnings, should recycling recycle on starting assets On this we some higher-yielding side, an activity us more capital into see are grow and like would

turn it Lisa With to guidance. I'll quarter first our talk now capital over markets and to about performance, sheet, that, balance

results. financial Thanks, John. Beginning with our

over a XXXX. a per first share share, of FFO XXXX increase XX.X% was or quarter the First $X.XX per quarter $X.XX

XXXX. increase XX.X% $X.XX AFFO was per quarter $X.XX XXXX over per share or a of increase quarter the share, First first

increase Our our was driven loan from total portfolio. by generated income, results which by an in the benefited XX.X% interest primarily revenues,

impact on income anticipate during a quarter, our new properties created still leases our a on operators half of Express will lease of rent during X XXXX, we Mountain revenues the X with the XXXX. fourth and as former commence commenced the While negative lease first compared quarter second to

revenues for We nearly was percentage properties. first lease are decrease of as a in the active G&A discussions quarter XXX or points. the sale a XX.X%, of potential remaining year-over-year X the of basis in

our fee as Our share from reduced our G&A benefited of repurchases. recent a management external result

X.XX%. annualized the the quarter a the respectively, payout XX%, and paid regular For $X.XXX representing We and of the were AFFO cash over anticipate end the FFO first quarterly first XXXX, XX% cash quarter of yield current company of ratios year. share, a dividend towards quarter last for first down dividend our May. in of from second quarter of XX% per announcing

share, the XX,XXX a of over an share which $XX million previously repurchased the of of We total at for market open repurchase shares per average price stock common completed program. on $XXX,XXX authorized $XX.XX cost

was we balance As sheet at maturities stabilized total no until well quarter discussed, with million. liquidity debt $XXX end and is XXXX our previously

quarter to of ratio pro to very net charge of EBITDA We net XX%, debt ended forma debt remains X.Xx fixed and coverage the with total value healthy at our enterprise X.Xx.

quarter in-place of million annualized cash we million $XX.X of balance the in-place, base to annualized forward look of portfolio-wide rent. base began straight-line second XXXX, with we rent $XX.X or As the

interest from annualized loan as well investments of $X.X As income million.

$X.XX share, share, our year to AFFO of per $X.XX to per $X.XX FFO maintained and full We and respectively. $X.XX guidance

additional the a million million range loan market potential Our investments, remains reasonable investments. at of $XX investment to and contingent on unchanged of guidance for $XX conditions includes

unchanged remains also guidance and dispositions million at $XX $XX million. between of a range Our

closing call turn to remarks. back the that, now John I'll for over With his

we're XXXX. ample in executing Lisa. positioning us liquidity, we earnings XXXX has to look long Overall, portfolio forward the our derisked run. asset strategy, well over our confident to recycling sheet high-quality future value drive unique and balance guidance Thanks, on positioned us for And growth and

team operator, Please for thank that, With line continued hard the shareholders for the open to want our their for business questions. and support. work partners their I and

Instructions] Our Gaurav first will Mehta coming [Operator Global from question Alliance Partners. of be

your your traditional opportunities I wanted on your event to traditional that was ask market. how in comments the and the acquisition you're much you wondering loan grow don't see to opportunities? you acquisition portfolio attractive in guidance willing I seeing the acquisition you are on

Yes.

So good it's a question.

We are seeing a little more bit in the movement market.

we'd optimistic some are to we definitely on as that be the seeing our sell. like movement We're able properties targets. to So we'll a bit well acquisition more little of that hit

that So be some able non-IG sell and and recycle to we're credit IG credits. optimistic we'll

a with with the in what trajectory. seeing we're as rates kind now higher comfortable of So market, the we're are pretty sticking

have plans. I just that rate moving they plans going maybe hoping were ahead a their business little folks business go that better with start think to and on environment are

Okay.

have the takes the on some $X.XX XQ of remaining on Second you that assumptions is the question sort just FFO the Maybe rate year that of $X.XX reported. for $X.XX I guidance. you I what are wondering run was from guidance? $X.XX, to

Yes.

a lot appropriately. got we on questions look, that of So

of So model a lag sell earnings expect a bit is acquisitions. to we that on assets the little the and have

So escrow and acquire we missing revenue to as you're we're in as some -- of kind assets. we'll waiting they're sell assets be missing

kind to sell that the our sell has really as amortizes And of loan a loan, it up assets. at they loan is set of loan. on the borrower the And bit more of short-term assets as Micromont loan on like little hyper side, the the the

And assets, don't that so the more loan lose if we'll income investment active we become it. they in selling if from replace

later conservative. tax a from little And and fees left of higher not with bit bit at forth. side in March, the we -- we general, Matt a do in remodeling lot Obviously, looking -- so from a audit the the are little of on of and and G&A end year. But kind the were to being

And So appropriate, we'll year. we're next revisit it. obviously, if early quarter, in the it's

Weaver And our be from Jason coming next JonesTrading. will of question

increases us any of hoping the any about balance I if color same? And over the rate was during give can lease expect upcoming year? you turnovers the rental you

little Yes. year. this lease I very have mean, turnover we

in have the Reno theater at November. end We of a

of of will, turnover, not is So the for lease everything only year. you But if this one month pretty much a there. else lot lag

far the basically increase, we're rent a year the roughly On rent balance the portfolio. as as a point over of whole obviously, about escalations

think of leases and we X -- have that an on have we some escalate basis, flat kind a leases -- of aggregate our some a every kind usually do it's it, you As percent. lot of years about and on

at remain the deployment then we priority it. loans Got much look capital hypothetical. And how sort versus the next for is in repurchase? longer, this for one new transaction you share do environment retail acquiring between of the If depressed

Yes.

that we very basis, on we're the quarter. Board obviously last obviously, and in little and share bit that year repurchases the the risk-adjusted basically opportunistic quarterly we're how see a -- I and quarter see seeing execute We'll like we'd we'll a But are how discusses where to yields. say, on this go. So active out opportunities would high very very, we start things some loan getting

so some And to wait side. see acquisition see and if kind on flow of free the deploy good some have a there's -- strong capital, core way that's as we cash opportunities

want stock opportunity, So presents try I the may is that now, don't of sure. if we'll kind that. share to go balance to side. kind we like more the of But revisit buyback it where incredibly for into

will question Scott. of Janney Rob Montgomery next Stevenson come Our from

is the exposure or that sort guess next by case it loan year is want to and case? how are there guys I sitting over have, with Or any respect would Board here at you John, boundary the thinking you a point? have of loans, big of about two? to this the upper How you

Yes.

So we're there. almost

much you do. limit us Given of on of our how activity kind credit the facilities loan can

exposure bounds now. the million are $XX So where from roughly upward is that we of

be the opportunities. we as recycling we see of loans Now some may

is, amount So call the -- the in but it, aggregate mid-XXs.

that by buyers disposition delaying of selling to And given for Okay. at about is be are in the to? about where is per have moved the banks, that to able strings robust this fund of your year? et rates that cetera? market? this given you comments be reluctance the And a your sort to then you assets ability of how sellers, the guys tighter of factor some point, for That's helpful. going feeling And How assets

I become the acquisition mean, Yes. side. on actually to more capital we're amount with a productive people starting of fair seeing

they're rather lot the goes quarter As by basically and I on think if capital, movement they're see of would a change. deploy is in market another rather than things if view not and now the sitting seeing they're

and you starting sidelines people I to step are of out see think the be more active. So

million, side, $X my XXXX they selling seeing that the $X have an On if you have million, to they're if something developer below still a some you're a I sub-X you're restaurant XXXX -- was that under with pad yesterday non-IG. talking to caps very market. surprise, productive if you're sites

very a the cap, And seeing XXXX really you're million, basically you're market of if are Those minus. $X below dealing still. they're efficient wall with larger. or properties a have you laws, still if X So then bit little plus kind

been. So how amazing sticky that sector has it's

All the then last X% guys? for Where right. vacant And is is me. you asset for Where one vacancy? the

Sure.

really what when market properties, tenant. we a call, Express have I Mountain talked came evicted is then the them, re-leased on So in. couple that of we Boston last And our is about, they back think, we our

that So delta up there. makes really the

what's the... And

And Rob, far along Mountain re-leased. getting we're Express the pretty is on

higher And see have to better market, Lisa more come on backfill next the quarter Boston about we talked and that online. activity to that's as kind revenue a opportunity in of with starting credit nice you'll some -- So of the this rent. regards then

our next from be Golladay And Wes Baird. will of question coming

question a line new income called statement. other revenue. quick on A There's the

I amortizes? thing sharing onetime the a agreement. that revenue first in Is is Or something that think just tied to that's the quarter? that

Yes.

stream this is million though, on. loan. revenue to consistent you're a fees that is, related from of to about worth under our number sales So in bucket portfolio, the that that managing really for Included the in on $XX,XXX onetime going $XX of we're what dispositions that see revenue share that assets quarter,

quarter. $XX,XXX it you can $XX,XXX -- a So between you'll probably call but be and see consistent, number that

the you how then that about the And talk thinking Is at versus Okay. beginning spread? pretty consistent of you acquisition the year? were to can disposition

able say situations the IG closer be of rates higher. is we're Yes. some buy because flat cap sell to do that be or would and similar to some what looking at I to Well, might non-IG

going high-grading but much we basically a the same not positive there you So simply would as time. pickup to spread. of as nice spread some little at But we're be in there will think as the non-IG, portfolio if were bit be

Got it. on the do regarding And Boston sense tenant, then a you the of market mark-to-market lease? have that is what

from mark-to-market that, the going. where I on on XX% say say, it's, would that would I next a tenant is

be of our question Riley from Massocca Securities. And coming next will John B.

today? much more acquisition things in kind the environment this a way the acquisition of you're in is of come seeing acquisition your pipeline of is think initial deals, as more. just [indiscernible]. kind How it of side of kind of reflected that little kind the bit of just kind across timing of volumes Or on of at kind Kind in about digging attractive think of desk? the we stage I'm terms should mostly

some Yes. the or I hands, issues, conservative coming we're bidding just bidding but see would a kind really has that some if of cash because be portfolio. has of one that wide lot, on places you on to due loose will, a we're in stress who other debt flow

mad a not rush. So need feel we be in we we're don't -- like to

for sure. push quarter would the So to I third and fourth it

with of of on came or from lease big just know kind properties that I strokes, Walgreens And portfolio? just kind broad the of lot portfolio a Okay. those that remaining what's deal. your then assets, duration one that

trying about think just is So how left to on assets? those still term much

years. Yes, it's roughly X

Okay. call Or out of item that the rate onetime-ish helpful. a in there steady line And is quick anything run just modeling pretty kind then one number? question. maybe Very Was number? revenue

Yes.

very just from so a that other there's revenue $XX,XXX item, call So that many apart in very not it, small, line things. onetime or was

BTIG. will And question our coming Michael next be Gorman from of

in some follow on John, acquisitions comments on market. one here. color I your give you Can just of if previously just the going could on up what's us more

wide. bidding mentioned You

Gap] the well? are just this would where Or as closing? the are a deals on you market those bidding is there are market? function staying the of those where -- Is flow and pricing deals great. [Audio Or the adjusted. -- could down give for they deals Any wide, be hasn't ultimately So color you