Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or
“PINE”) today announced its operating results and earnings for the
quarter ended June 30, 2023.
Select Highlights
- Reported Net
Income per diluted share attributable to the Company of $0.01 for
the quarter ended June 30, 2023.
- Reported FFO per
diluted share of $0.37 for the quarter ended June 30, 2023, a
decrease of 21.3% from the comparable prior year period.
- Reported AFFO
per diluted share of $0.37 for the quarter ended June 30, 2023, a
decrease of 21.3% from the comparable prior year period.
- Acquired nine
retail net lease retail properties during the second quarter of
2023 for total acquisition volume of $60.5 million, reflecting a
weighted average going-in cash cap rate of 6.8%.
- Sold four retail
net lease properties during the second quarter of 2023 for total
disposition volume of $22.9 million at a weighted average exit cash
cap rate of 6.4%, generating total gains of $0.7 million.
- Increased
investment grade-rated tenant exposure to 63% as of June 30, 2023,
up from 48% as of June 30, 2022.
- Repurchased
23,889 shares of the Company’s common stock during the second
quarter of 2023 for a total cost of $0.4 million, or an average
price of $15.22 per share.
- Paid a cash
dividend for the second quarter of 2023 of $0.275 per share, a 1.9%
increase from the comparable prior year period quarterly dividend,
representing an annualized yield of 6.9% based on the closing price
of the Company’s common stock on July 19, 2023.
- Book value as of
June 30, 2023 increased to $19.30 per share.
- In July 2023, the Board approved a
$15.0 million common stock repurchase program.
CEO Comments
"We are pleased to report another strong quarter
of asset recycling as we continue to improve the credit quality of
our tenant base by strategically reinvesting into well-located,
high-quality properties occupied by investment grade-rated
tenants," said John P. Albright, President and Chief Executive
Officer of Alpine Income Property Trust. "During the quarter, we
invested more than $60 million into a number of industry-leading
tenants including Lowe’s, Marshalls, Best Buy, Chick-Fil-A, Dick’s
Sporting Goods, Starbucks, HomeGoods, and Home Depot at a going in
cash cap rate of 6.8%. These strong tenants increased our
portfolio’s investment grade tenant exposure to 63%, further
strengthening the cash flow supporting our attractive 6.6% dividend
yield and the long-term stability of our portfolio.”
Quarterly Operating Results
Highlights
The table below provides a summary of the
Company’s operating results for the quarter ended June 30, 2023 (in
thousands, except per share data):
|
|
Three MonthsEndedJune 30,
2023 |
|
Three MonthsEndedJune 30,
2022 |
|
Variance toComparable Period inthe Prior Year |
Total Revenues |
|
$ |
11,439 |
|
$ |
11,280 |
|
$ |
159 |
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
90 |
|
$ |
16,336 |
|
$ |
(16,246 |
) |
(99.4 |
%) |
Net Income Attributable to PINE |
|
$ |
80 |
|
$ |
14,282 |
|
$ |
(14,202 |
) |
(99.4 |
%) |
Net Income per Diluted Share Attributable to PINE |
$ |
0.01 |
|
$ |
1.05 |
|
$ |
(1.04 |
) |
(99.1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
FFO (1) |
|
$ |
5,770 |
|
$ |
6,393 |
|
$ |
(623 |
) |
(9.7 |
%) |
FFO per Diluted Share (1) |
|
$ |
0.37 |
|
$ |
0.47 |
|
$ |
(0.10 |
) |
(21.3 |
%) |
AFFO (1) |
|
$ |
5,843 |
|
$ |
6,345 |
|
$ |
(502 |
) |
(7.9 |
%) |
AFFO per Diluted Share (1) |
|
$ |
0.37 |
|
$ |
0.47 |
|
$ |
(0.10 |
) |
(21.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid, per Share |
|
$ |
0.275 |
|
$ |
0.27 |
|
$ |
0.005 |
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
Year-to-Date Operating Results
Highlights
The table below provides a summary of the
Company’s operating results for the six months ended June 30, 2023
(in thousands, except per share data):
|
|
Six MonthsEndedJune 30, 2023 |
|
Six MonthsEndedJune 30, 2022 |
|
Variance toComparable Period in the Prior
Year |
Total Revenues |
|
$ |
22,605 |
|
$ |
22,079 |
|
$ |
526 |
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
3,835 |
|
$ |
17,260 |
|
$ |
(13,425 |
) |
(77.8 |
%) |
Net Income Attributable to PINE |
|
$ |
3,419 |
|
$ |
15,088 |
|
$ |
(11,669 |
) |
(77.3 |
%) |
Net Income per Diluted Share Attributable to PINE |
|
$ |
0.22 |
|
$ |
1.12 |
|
$ |
(0.90 |
) |
(80.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
FFO (1) |
|
$ |
11,397 |
|
$ |
12,989 |
|
$ |
(1,592 |
) |
(12.3 |
%) |
FFO per Diluted Share (1) |
|
$ |
0.72 |
|
$ |
0.97 |
|
$ |
(0.25 |
) |
(25.8 |
%) |
AFFO (1) |
|
$ |
11,478 |
|
$ |
12,797 |
|
$ |
(1,319 |
) |
(10.3 |
%) |
AFFO per Diluted Share (1) |
|
$ |
0.73 |
|
$ |
0.95 |
|
$ |
(0.22 |
) |
(23.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid, per Share |
|
$ |
0.550 |
|
$ |
0.54 |
|
$ |
0.01 |
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
Acquisitions
During the three months and six months ended
June 30, 2023, the Company acquired nine high-quality net lease
properties for total acquisition volume of $60.5 million,
reflecting a weighted average going-in cash cap rate of 6.8%. As of
the acquisition date, the properties had a weighted average
remaining lease term of 7.5 years, were located in four states, and
were leased to tenants operating in nine retail sectors, including
the off-price retail, general merchandise, quick service
restaurant, casual dining, consumer electronics, sporting goods,
home improvement, and dollar stores. Approximately 85% of
annualized base rents acquired are generated from a tenant or the
parent of a tenant with an investment grade credit rating.
Dispositions
During the three months ended June 30, 2023, the
Company sold four properties for total disposition volume of $22.9
million at a weighted average exit cash cap rate of 6.4%,
generating total gains of $0.7 million.
During the six months ended June 30, 2023, the
Company sold 14 properties for total disposition volume of $79.1
million at a weighted average exit cash cap rate of 6.2%,
generating total gains of $5.2 million.
Property Portfolio
The Company’s portfolio consisted of the
following as of June 30, 2023:
Number of Properties |
|
143 |
Square Feet |
3.9 million |
Annualized Base Rent |
$39.7 million |
Weighted Average Remaining Lease Term |
7.3 years |
States where Properties are Located |
|
34 |
Occupancy |
|
99.5% |
|
|
% of Annualized Base Rent Attributable to Investment Grade Rated
Tenants (1)(2) |
|
63% |
% of Annualized Base Rent Attributable to Credit Rated Tenants
(1)(3) |
|
82% |
|
|
|
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.(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 portfolio included the following
top tenants that represent 2.0% or greater of the Company's total
annualized base rent as of June 30, 2023:
Tenant |
Credit Rating (1) |
|
% of Annualized Base Rent |
Walgreens |
BBB |
|
12 |
% |
Lowe’s |
BBB+ |
|
9 |
% |
Dick’s Sporting Goods |
BBB |
|
9 |
% |
Dollar Tree/Family Dollar |
BBB |
|
8 |
% |
Dollar General |
BBB |
|
5 |
% |
Walmart |
AA |
|
5 |
% |
Hobby Lobby |
N/A |
|
4 |
% |
Best Buy |
BBB+ |
|
4 |
% |
At Home |
CCC |
|
4 |
% |
Home Depot |
A |
|
3 |
% |
LA Fitness |
B- |
|
2 |
% |
Burlington |
BB+ |
|
2 |
% |
Other |
|
|
33 |
% |
Total |
|
|
100 |
% |
|
|
|
|
|
Any differences are a result of rounding.(1) Credit rating is
from S&P Global Ratings, Moody’s Investors Service, Fitch
Ratings or the National Association of Insurance Commissioners, as
applicable, as of June 30, 2023. 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 Associated of Insurance
Commissioners of Baa3, BBB-, or NAIC-2 or higher. |
The Company’s portfolio consisted of the
following industries as of June 30, 2023:
Industry |
|
|
% of Annualized Base Rent |
Dollar Stores |
|
|
13 |
% |
Pharmacy |
|
|
13 |
% |
Home Improvement |
|
|
13 |
% |
Sporting Goods |
|
|
12 |
% |
Home Furnishings |
|
|
7 |
% |
Consumer Electronics |
|
|
6 |
% |
Grocery |
|
|
5 |
% |
General Merchandise |
|
|
5 |
% |
Entertainment |
|
|
5 |
% |
Off-Price Retail |
|
|
4 |
% |
Convenience Stores |
|
|
4 |
% |
Specialty Retail |
|
|
3 |
% |
Quick Service Restaurant |
|
|
2 |
% |
Automotive Parts |
|
|
2 |
% |
Health & Fitness |
|
|
2 |
% |
Farm & Rural Supply |
|
|
1 |
% |
Office Supplies |
|
|
1 |
% |
Casual Dining |
|
|
1 |
% |
Pet Supplies |
|
|
<1% |
Other (1) |
|
|
< 1% |
Total |
25 Industries |
|
100 |
% |
|
|
|
|
|
Any differences are a result of rounding.(1) Includes six
industries collectively representing less than 1% of the Company’s
ABR as of June 30, 2023. |
The Company’s portfolio included properties in
the following states as of June 30, 2023:
State |
|
|
% of Annualized Base Rent |
New Jersey |
|
|
12 |
% |
Texas |
|
|
9 |
% |
New York |
|
|
8 |
% |
Ohio |
|
|
8 |
% |
Michigan |
|
|
7 |
% |
Florida |
|
|
5 |
% |
Georgia |
|
|
4 |
% |
Illinois |
|
|
4 |
% |
Oklahoma |
|
|
4 |
% |
West Virginia |
|
|
3 |
% |
Alabama |
|
|
3 |
% |
North Carolina |
|
|
3 |
% |
Minnesota |
|
|
3 |
% |
Wisconsin |
|
|
2 |
% |
Louisiana |
|
|
2 |
% |
Kansas |
|
|
2 |
% |
Missouri |
|
|
2 |
% |
Massachusetts |
|
|
2 |
% |
Maryland |
|
|
2 |
% |
Nevada |
|
|
2 |
% |
Nebraska |
|
|
2 |
% |
South Carolina |
|
|
2 |
% |
Pennsylvania |
|
|
2 |
% |
Kentucky |
|
|
1 |
% |
Connecticut |
|
|
1 |
% |
Mississippi |
|
|
1 |
% |
Indiana |
|
|
1 |
% |
New Mexico |
|
|
1 |
% |
Maine |
|
|
<1% |
Arizona |
|
|
< 1% |
Washington |
|
|
< 1% |
South Dakota |
|
|
< 1% |
California |
|
|
< 1% |
Virginia |
|
|
< 1% |
Total |
34 States |
|
100 |
% |
|
|
|
|
|
Any differences are a result of rounding. |
|
|
|
|
Capital Markets and Balance Sheet
During the quarter ended June 30, 2023, the
Company completed the following notable capital markets
activity:
- Repurchased 23,889 shares of the
Company’s common stock on the open market under the previously
authorized $5.0 million buyback program for a total cost of $0.4
million, or an average price of $15.22 per share.
The following table provides a summary of the
Company’s long-term debt as of June 30, 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) |
|
$ |
50.0 million |
|
SOFR + 10 bps +[1.25% - 2.20%] |
|
January 2027 |
Total Debt/Weighted Average Rate |
|
$ |
250.0 million |
|
3.36% |
|
|
|
(1) As of June 30, 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 June 30, 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 June 30, 2023, the Company has utilized
interest rate swaps to fix SOFR and achieve a weighted average
fixed interest rate of 3.21% plus the SOFR adjustment of 0.10% and
the applicable spread for the $50 million balance on the Company’s
Revolving Credit Facility. |
As of June 30, 2023, the Company held an 89.2%
interest in Alpine Income Property OP, LP, the Company’s operating
partnership (the “Operating Partnership” or “OP”). There were
1,703,494 OP Units held by third parties outstanding and 14,045,001
shares of the Company’s common stock outstanding, for total
outstanding common stock and OP Units held by third parties of
15,748,495, as of June 30, 2023.
As of June 30, 2023, the Company’s net debt to
Pro Forma EBITDA was 6.4 times, and as defined in the Company’s
credit agreement, the Company’s fixed charge coverage ratio was 3.3
times. As of June 30, 2023, the Company’s net debt to total
enterprise value was 46.5%. 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 converted to common shares.
Dividend
On May 22, 2023, the Company announced a cash
dividend for the second quarter of 2023 of $0.275 per share,
payable on June 30, 2023 to stockholders of record as of the close
of business on June 8, 2023. The second quarter 2023 cash dividend
represents a 1.9% increase over the comparable prior year period
quarterly dividend and a payout ratio of 74.3% of the Company’s
second quarter 2023 FFO per diluted share and AFFO per diluted
share.
2023 Outlook
The Company has revised its outlook for 2023 to
take into account the Company’s year-to-date performance and
revised expectations regarding the Company’s investment activities,
forecasted capital markets transactions, and other significant
assumptions.
The Company’s revised outlook for 2023 is as
follows:
|
|
Revised Outlook Range for 2023 |
|
Change from Prior Outlook |
|
|
Low |
|
High |
|
Low |
|
High |
Acquisitions |
|
$100 million |
to |
$125 million |
|
- |
to |
($25) million |
Dispositions |
|
$100 million |
to |
$125 million |
|
$25 million |
to |
|
- |
|
FFO per Diluted Share |
|
$1.50 |
to |
$1.53 |
|
- |
to |
|
($0.02) |
|
AFFO per Diluted Share |
|
$1.52 |
to |
$1.55 |
|
- |
to |
|
($0.02) |
|
Weighted Average Diluted
Shares Outstanding |
|
15.5 million |
to |
16.0 million |
|
(0.3) million |
to |
(0.3) million |
Second Quarter 2023 Earnings Conference Call &
Webcast
The Company will host a conference call to
present its financial and operating results for the quarter ended
June 30, 2023, on Friday, July 21, 2023, 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 information below and you will be provided with
dial-in details.
|
Webcast: |
https://edge.media-server.com/mmc/p/nzs8pyib |
|
|
Dial-In: |
https://register.vevent.com/register/BI1ea680d7359344a78f2070767b24ec7b |
|
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 commercial income 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, 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, 2022 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 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.
To derive AFFO, we 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 |
|
(Unaudited)June 30, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Real Estate: |
|
|
|
|
|
Land, at Cost |
$ |
151,703 |
|
|
$ |
176,857 |
|
Building and Improvements, at Cost |
|
332,202 |
|
|
|
322,510 |
|
Total Real Estate, at Cost |
|
483,905 |
|
|
|
499,367 |
|
Less, Accumulated Depreciation |
|
(28,569 |
) |
|
|
(22,313 |
) |
Real Estate—Net |
|
455,336 |
|
|
|
477,054 |
|
Assets Held for Sale |
|
5,488 |
|
|
|
— |
|
Cash and Cash Equivalents |
|
7,755 |
|
|
|
9,018 |
|
Restricted Cash |
|
20,100 |
|
|
|
4,026 |
|
Intangible Lease
Assets—Net |
|
53,402 |
|
|
|
60,432 |
|
Straight-Line Rent
Adjustment |
|
1,736 |
|
|
|
1,668 |
|
Other Assets |
|
22,868 |
|
|
|
21,233 |
|
Total Assets |
$ |
566,685 |
|
|
$ |
573,431 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Liabilities: |
|
|
|
|
|
Accounts Payable, Accrued Expenses, and Other Liabilities |
$ |
6,547 |
|
|
$ |
4,411 |
|
Prepaid Rent and Deferred Revenue |
|
1,776 |
|
|
|
1,479 |
|
Intangible Lease Liabilities—Net |
|
5,062 |
|
|
|
5,050 |
|
Long-Term Debt |
|
249,020 |
|
|
|
267,116 |
|
Total Liabilities |
|
262,405 |
|
|
|
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 June 30, 2023
and December 31, 2022 |
|
— |
|
|
|
— |
|
Common Stock, $0.01 par value per share, 500 million shares
authorized, 14,045,001 shares issued and outstanding as of June 30,
2023 and 13,394,677 shares issued and outstanding as of December
31, 2022 |
|
140 |
|
|
|
134 |
|
Additional Paid-in Capital |
|
248,958 |
|
|
|
236,841 |
|
Retained Earnings |
|
5,731 |
|
|
|
10,042 |
|
Accumulated Other Comprehensive Income |
|
16,214 |
|
|
|
14,601 |
|
Stockholders' Equity |
|
271,043 |
|
|
|
261,618 |
|
Noncontrolling Interest |
|
33,237 |
|
|
|
33,757 |
|
Total Equity |
|
304,280 |
|
|
|
295,375 |
|
Total Liabilities and Equity |
$ |
566,685 |
|
|
$ |
573,431 |
|
Alpine Income Property Trust, Inc. |
|
Consolidated Statements of Operations |
|
(Unaudited) |
|
(In thousands, except share, per share and dividend data) |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Lease Income |
$ |
11,439 |
|
|
$ |
11,280 |
|
|
$ |
22,605 |
|
|
$ |
22,079 |
|
|
Total Revenues |
|
11,439 |
|
|
|
11,280 |
|
|
|
22,605 |
|
|
|
22,079 |
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Expenses |
|
1,575 |
|
|
|
1,285 |
|
|
|
3,009 |
|
|
|
2,377 |
|
|
General and Administrative Expenses |
|
1,656 |
|
|
|
1,479 |
|
|
|
3,171 |
|
|
|
2,910 |
|
|
Depreciation and Amortization |
|
6,423 |
|
|
|
5,694 |
|
|
|
12,758 |
|
|
|
11,366 |
|
|
Total Operating Expenses |
|
9,654 |
|
|
|
8,458 |
|
|
|
18,938 |
|
|
|
16,653 |
|
|
Gain on Disposition of Assets |
|
743 |
|
|
|
15,637 |
|
|
|
5,196 |
|
|
|
15,637 |
|
|
Gain on Extinguishment of Debt |
|
— |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
|
Net Income from Operations |
|
2,528 |
|
|
|
18,459 |
|
|
|
8,886 |
|
|
|
21,063 |
|
|
Interest Expense |
|
2,438 |
|
|
|
2,123 |
|
|
|
5,051 |
|
|
|
3,803 |
|
|
Net Income |
|
90 |
|
|
|
16,336 |
|
|
|
3,835 |
|
|
|
17,260 |
|
|
Less: Net Income Attributable to Noncontrolling Interest |
|
(10 |
) |
|
|
(2,054 |
) |
|
|
(416 |
) |
|
|
(2,172 |
) |
|
Net Income Attributable to Alpine Income Property Trust, Inc. |
$ |
80 |
|
|
$ |
14,282 |
|
|
$ |
3,419 |
|
|
$ |
15,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to Alpine Income Property Trust, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.01 |
|
|
$ |
1.21 |
|
|
$ |
0.24 |
|
|
$ |
1.28 |
|
|
Diluted |
$ |
0.01 |
|
|
$ |
1.05 |
|
|
$ |
0.22 |
|
|
$ |
1.12 |
|
|
Weighted Average Number of Common Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
14,059,173 |
|
11,844,108 |
|
|
14,030,025 |
|
|
11,773,904 |
|
|
Diluted (1) |
15,762,667 |
|
|
13,547,602 |
|
|
15,733,519 |
|
|
13,457,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared and Paid |
$ |
0.275 |
|
|
$ |
0.270 |
|
|
$ |
0.550 |
|
|
$ |
0.540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes the weighted average impact of 1,703,494 shares
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. |
Alpine Income Property Trust, Inc. |
Non-GAAP Financial Measures |
Funds From Operations and Adjusted Funds From
Operations |
(Unaudited) |
(In thousands, except per share data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Net Income |
$ |
90 |
|
|
$ |
16,336 |
|
|
$ |
3,835 |
|
|
$ |
17,260 |
|
Depreciation and Amortization |
|
6,423 |
|
|
|
5,694 |
|
|
|
12,758 |
|
|
|
11,366 |
|
Gain on Disposition of Assets |
|
(743 |
) |
|
|
(15,637 |
) |
|
|
(5,196 |
) |
|
|
(15,637 |
) |
Funds from Operations |
$ |
5,770 |
|
|
$ |
6,393 |
|
|
$ |
11,397 |
|
|
$ |
12,989 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Straight-Line Rent Adjustment |
|
(109 |
) |
|
|
(234 |
) |
|
|
(274 |
) |
|
|
(528 |
) |
Gain on Extinguishment of Debt |
|
— |
|
|
|
— |
|
|
|
(23 |
) |
|
|
— |
|
COVID-19 Rent Repayments |
|
— |
|
|
|
22 |
|
|
|
— |
|
|
|
45 |
|
Non-Cash Compensation |
|
79 |
|
|
|
78 |
|
|
|
159 |
|
|
|
157 |
|
Amortization of Deferred Financing Costs to Interest Expense |
|
177 |
|
|
|
132 |
|
|
|
351 |
|
|
|
257 |
|
Amortization of Intangible Assets and Liabilities to Lease
Income |
|
(102 |
) |
|
|
(69 |
) |
|
|
(189 |
) |
|
|
(170 |
) |
Other Non-Cash Expense |
|
28 |
|
|
|
23 |
|
|
|
57 |
|
|
|
47 |
|
Adjusted Funds from Operations |
$ |
5,843 |
|
|
$ |
6,345 |
|
|
$ |
11,478 |
|
|
$ |
12,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per Diluted Share |
$ |
0.37 |
|
|
$ |
0.47 |
|
|
$ |
0.72 |
|
|
$ |
0.97 |
|
AFFO per Diluted Share |
$ |
0.37 |
|
|
$ |
0.47 |
|
|
$ |
0.73 |
|
|
$ |
0.95 |
|
Alpine Income Property Trust, Inc. |
Non-GAAP Financial Measures |
Reconciliation of Net Debt to Pro Forma
EBITDA |
(Unaudited) |
(In thousands) |
|
Three Months Ended |
|
June 30, 2023 |
Net Income |
$ |
90 |
|
Adjustments: |
|
|
Depreciation and Amortization |
|
6,423 |
|
Gains on Disposition of Assets |
|
(743 |
) |
Gain on Extinguishment of Debt |
|
— |
|
Straight-Line Rent Adjustment |
|
(109 |
) |
Non-Cash Compensation |
|
79 |
|
Amortization of Deferred Financing Costs to Interest Expense |
|
177 |
|
Amortization of Intangible Assets and Liabilities to Lease
Income |
|
(102 |
) |
Other Non-Cash Expense |
|
28 |
|
Interest Expense, Net of Deferred Financing Costs Amortization |
|
2,261 |
|
EBITDA |
$ |
8,104 |
|
|
|
|
Annualized EBITDA |
$ |
32,416 |
|
Pro Forma Annualized Impact of Current Quarter Acquisitions and
Dispositions, Net (1) |
|
2,515 |
|
Pro Forma EBITDA |
$ |
34,931 |
|
|
|
|
Total Long-Term Debt |
|
249,020 |
|
Financing Costs, Net of Accumulated Amortization |
|
1,350 |
|
Cash and Cash Equivalents |
|
(7,755 |
) |
Restricted Cash |
|
(20,100 |
) |
Net Debt |
$ |
222,515 |
|
|
|
|
Net Debt to Pro Forma
EBITDA |
|
6.4x |
|
(1) Reflects the pro forma annualized impact on Annualized
EBITDA of the Company’s investment activity during the three months
ended June 30, 2023. |
Contact: |
Matthew M. PartridgeSenior Vice President, Chief Financial Officer
& Treasurer(407) 904-3324mpartridge@alpinereit.com |
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