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DAYTONA BEACH, Fla., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or “PINE”) today announced its operating results and earnings for the quarter ended September 30, 2021.
Select Quarterly Highlights
Quarterly Operating Results Highlights
The table below provides a summary of the Company’s operating results for the quarter ended September 30, 2021 (in thousands, except per share data):
| Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Variance to Comparable Period in the Prior Year | |||||||||
| Total Revenues | $ | 8,171 | $ | 5,101 | $ | 3,070 | 60.2 | % | |||
| Net Income | $ | 1,056 | $ | 636 | $ | 420 | 66.0 | % | |||
| Net Income Attributable to PINE | $ | 918 | $ | 546 | $ | 372 | 68.1 | % | |||
| Net Income per Diluted Share Attributable to PINE | $ | 0.07 | $ | 0.06 | $ | 0.01 | 16.7 | % | |||
| FFO (1) | $ | 4,820 | $ | 3,043 | $ | 1,777 | 58.4 | % | |||
| FFO per Diluted Share (1) | $ | 0.37 | $ | 0.35 | $ | 0.02 | 5.7 | % | |||
| AFFO (1) | $ | 4,797 | $ | 2,907 | $ | 1,890 | 65.0 | % | |||
| AFFO per Diluted Share (1) | $ | 0.37 | $ | 0.34 | $ | 0.03 | 8.8 | % | |||
| Dividends Declared and Paid, per Share | $ | 0.255 | $ | 0.20 | $ | 0.055 | 27.5 | % | |||
(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 nine months ended September 30, 2021 (in thousands, except per share data):
| Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Variance to Comparable Period in the Prior Year | |||||||||
| Total Revenues | $ | 20,658 | $ | 13,863 | $ | 6,795 | 49.0 | % | |||
| Net Income | $ | 1,913 | $ | 930 | $ | 983 | 105.7 | % | |||
| Net Income Attributable to PINE | $ | 1,662 | $ | 799 | $ | 863 | 108.0 | % | |||
| Net Income per Diluted Share Attributable to PINE | $ | 0.16 | $ | 0.09 | $ | 0.07 | 77.8 | % | |||
| . | |||||||||||
| FFO (1) | $ | 12,283 | $ | 7,646 | $ | 4,637 | 60.6 | % | |||
| FFO per Diluted Share (1) | $ | 1.15 | $ | 0.86 | $ | 0.29 | 33.7 | % | |||
| AFFO (1) | $ | 12,539 | $ | 6,083 | $ | 6,456 | 106.1 | % | |||
| AFFO per Diluted Share (1) | $ | 1.18 | $ | 0.69 | $ | 0.49 | 71.0 | % | |||
| Dividends Declared and Paid, per Share | $ | 0.745 | $ | 0.60 | $ | 0.145 | 24.2 | % | |||
(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.
CEO Comments
“This was another solid quarter of consistent execution from our team as we continue to find differentiated opportunities in the market to further strengthen and diversify our 100% occupied portfolio. During the third quarter, we acquired more than $55 million of high-quality net leased properties leased to 14 different tenants operating in numerous well-performing sectors in 12 different states,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. “Our strong performance to-date has allowed us to raise our dividend in each of the past four quarters to a very attractive 5.4% current annualized yield with an implied 2021 AFFO payout ratio below 70%. Looking forward to the fourth quarter, we continue to work through the sales process for our office properties where we currently have one under contract and the other going through a marketed process. As a result of our growing pipeline, improved cost of debt from our new term loan, and the progress related to the sale of our office properties, we are raising our 2021 AFFO guidance by 5% at the midpoint to a range of $1.48 - $1.51 per share.”
Acquisitions
During the three months ended September 30, 2021, the Company acquired 19 high-quality net lease properties for total acquisition volume of $55.4 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 8.2 years, were leased to tenants operating in the home improvement, grocery, convenience store, auto parts, dollar store, specialty retail, consumer electronics, farm & rural supply, general merchandise, home furnishing, office supply, and quick service restaurant sectors, and were located in twelve different states. Approximately 43% of annualized base rents acquired are generated from a tenant or the parent of a tenant with an investment grade credit rating.
During the nine months ended September 30, 2021, the Company acquired 42 net lease properties for total acquisition volume of $158.7 million, reflecting a weighted-average going-in cash cap rate of 7.2%. As of the acquisition date, the properties had a weighted-average remaining lease term of 8.1 years and were located in 22 different states. Approximately 39% 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 September 30, 2021, the Company sold its Outback Steakhouse in Huntersville, North Carolina for a sale price of $3.8 million, reflecting an exit cap rate of 5.5%.
Development
The Company signed a new store development lease with an established grocer to develop a new location on an undeveloped outparcel at one of the Company’s existing properties in Jacksonville, Florida (the “Development Opportunity”). The Development Opportunity is anticipated to begin construction in 2022 and is subject to customary due diligence and approvals.
Income Property Portfolio
The Company’s portfolio consisted of the following as of September 30, 2021:
| Number of Properties | 89 | |
| Square Feet | 2.7 million | |
| Weighted-Average Remaining Lease Term | 7.8 years | |
| States where Properties are Located | 28 | |
| Occupancy | 100% | |
| % of Annualized Base Rent attributable to Retail Tenants (1) | 83% | |
| % of Annualized Base Rent attributable to Office Tenants (1) | 17% | |
| % of Annualized Base Rent subject to Rent Escalations (1) | 47% | |
| % of Annualized Base Rent attributable to Investment Grade Rated Tenants (1)(2) | 44% | |
| % of Annualized Base Rent attributable to Credit Rated Tenants (1)(3) | 80% | |
Any differences a result of rounding.
(1) Annualized Base Rent (“ABR”) represents the annualized in-place 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 Associated of Insurance Commissioners of Baa3, BBB-, 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 as of September 30, 2021:
| Tenant | Credit Rating(1) | % of Annualized Base Rent | |
| Wells Fargo | A+ | 10% | |
| Hilton Grand Vacations | B+ | 8% | |
| At Home | B | 7% | |
| Hobby Lobby | N/A | 7% | |
| Dollar General | BBB | 6% | |
| Walmart | AA | 5% | |
| Walgreens | BBB | 5% | |
| LA Fitness | CCC+ | 3% | |
| Lowe’s | BBB+ | 3% | |
| 7-Eleven | A | 3% | |
| Total | 57% |
Any differences 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 September 30, 2021.
The Company’s portfolio consisted of the following industries as of September 30, 2021:
| Industry | % of Annualized Base Rent | ||
| General Merchandise | 13% | ||
| Home Furnishings | 11% | ||
| Financial Services (Office) | 10% | ||
| Hospitality (Office) | 8% | ||
| Dollar Stores | 8% | ||
| Grocery | 7% | ||
| Pharmacy | 7% | ||
| Entertainment | 5% | ||
| Sporting Goods | 5% | ||
| Convenience Store | 5% | ||
| Consumer Electronics | 3% | ||
| Home Improvement | 3% | ||
| Health & Fitness | 3% | ||
| Automotive Parts | 3% | ||
| Off-Price Retail | 3% | ||
| Specialty Retail | 2% | ||
| Quick Service Restaurant | 2% | ||
| Other (1) | 2% | ||
| Total | 25 Industries | 100% |
Any differences a result of rounding.(1) Includes eight industries collectively representing 2% of the Company’s ABR as of September 30, 2021.
The Company’s portfolio included properties in the following states as of September 30, 2021:
| State | % of Annualized Base Rent | ||
| Florida | 14% | ||
| Texas | 12% | ||
| Oregon | 10% | ||
| North Carolina | 9% | ||
| Arizona | 6% | ||
| Michigan | 5% | ||
| Georgia | 5% | ||
| Oklahoma | 4% | ||
| Massachusetts | 4% | ||
| Ohio | 4% | ||
| New Jersey | 3% | ||
| New Mexico | 3% | ||
| Minnesota | 3% | ||
| Washington | 3% | ||
| New York | 2% | ||
| Nevada | 2% | ||
| Wisconsin | 2% | ||
| South Carolina | 2% | ||
| Alabama | 2% | ||
| Maryland | 1% | ||
| Kentucky | 1% | ||
| Maine |
