PINE - Earnings call transcript Q1 2020 | Alpine Income Property Trust, Inc.

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Operator

Good day, and welcome to the Alpine Income Property Trust Quarter One 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. CEO. and President Albright, John Please go ahead.

John Albright

ended Good Thank President conference Property & welcome My quarter today's CEO of and to you, Trust is review Albright, the Income operator. call Alpine the to of XXXX. company. morning, operating John XX, March the for name results

a Mark financial with details and and I moment. review our the Dan results Corporate Smith, the call Patten, and Mark On our our Secretary. quarter first of in me is, CFO; General Counsel will

it call turn to regarding you a I'll call. Mark First, over our provide our points with to regarding disclosures comments few the of the today customary format on this and

Mark Patten

Thanks, Good everyone. John. morning,

certain that from reflect company's And we changes release actual in night. During in actual law. the the made. these last be that differ statements. statements Company’s detail may be the results to were to in our these results forward-looking and SEC release federal not after the forward-looking with we'll considered differ issued from the are may in matters statements securities call future time disclosed could make discussed greater to significantly statements to provisions forward-looking today, may time from to cause filings materially statements expectations earnings risks Factors under

our Let website. XXXX me which investor that available we on our QX is note filed presentation now last night,

reference during additional provides presentation call. information you we may this investor may and Our useful find that

turn I'll that, over John. With back to it

John Albright

weighted of our company. properties, $XX term Prior the of our we cap expectations, single-tenant purchased history our our X.X%. net nine The Thanks, million, two the have leased certainly of lease country's deploying onset Mark. months in extraordinary history retail going nine been was properties years. to average and at rate the ahead short XX.X acquisition in Needless weighted as approximately average time in were last pandemic, say, of activities COVID-XX to the

properties annualized of quarter, top top space with of the located XX XX% feet the is our XX over X rent portfolio in of square XX our of rentable base consists ULI, million markets. approximately located end the XX in At inevitably states,

While certainly response focus, have the largest of pandemic were to we to quarter our COVID-XX portfolio are impact properties our to governmental we on retail the indicated the as our to additions the with pleased representing office the two retail lease our of portfolio tenants, given has had in the tenants. XX% properties,

result, we a We're and our terminated we the pandemic, pending as were disruptions our XXXX. hopeful defensive tenants will onset felt of more in million In future the COVID-XX the take for soon withdrew it to And a the the that approximately our specifically, posture of uncertainties terms until at guidance acquisition by we created the subside. economy prudent to activities, pandemic acquisitions. And businesses, $XX was reduced.

first I'll highlight provide balance COVID-XX some I'll of response and elements actions activities. first our additional few to taken Mark a results on turn the to sheet outbreak. over perspective to we it quarter our in summarize have operating But

Mark Patten

Thanks, John.

first pandemic productive quarter, the results our The the I'll terms back of a onset in in which quarter acquisition we As a mention COVID-XX operating for John the in of had mentioned, our impacted half moment. of quarter the activity.

approximately per our $X.XX share. approximately AFFO noted, $X approximately release our FFO or was the million, million As our approximately $X.X was share, total our or and million for quarter $X.XX was revenue $X.X approximately per

of which $XX worth by were approximately of results operating of the acquisitions fuel of million the result termination impacted the that John were Our $XX,XXX expensing of our mentioned. costs,

the of audit recognition annual to the costs with had costs We G&A expected of audit. associated our than also $XXX,XXX higher related to services due approximately XXXX

first the the work audit in stub a period bit IPO, occurred our short for XXXX majority that to in expected. of expense we larger than so the quarter, that was subsequent Given year

an going expense over our this be While we of which IPO. the course this more rapidly up are will particular recognized period, unique circumstance annual from to forward, coming expect we think

Lastly, $XX,XXX, due facility our that from about in which expense stems more in a defensive with COVID-XX which uncertainty $XX further of million mid-March, was the surrounding higher solidify to in interest enabled pandemic. which our our connection our by credit mentioned, John the was posture draw liquidity us to

the currently position, quarter, credit facility of with borrowing the in capacity $XX our our liquidity. on for we dollars that addition million $XX towards liquidity stands approximately approximately million to of providing terms In the us end million drew the of $XX

basically executed also execution at of fixing the our on balance, at the into swap. goes years, effect just facility, X.XX% The this credit the pleased on to rate rate our of five on swap rate the credit over a of month. note an this after our X.XX% very We're $XX that range bps swap rate puts XX credit us at with facility we Regarding interest half of quarter close, facility. end the which million

terms in Lastly, portfolio as April status with for of of working I in review current XXXX tenants of basically government-mandated shut down they the with pandemic contend economy. rent the the wanted impact the and collections of and our the to COVID-XX our efforts

allowing amounts on of remaining with of total, tenants the we've repayment April As quarter XX%, collected rent. and rent that deferred of monthly of rent of typically our the XXXX in latter of week, we in XX% Friday generally XXXX. the of for reached second XXXX, the rateably deferral, with last part agreement Of XX%

firm or out active weeks. those the agreements coming negotiations remaining ironed we’re tenants otherwise, the have For XX% during of XX%, to that holding and hope in with

open, mentioned XX% open, or of of properties AVR. the that under opened also modified limited either represent properties Those our or XX of fully approximately I'll remained since onset operations our the XX XX pandemic.

it back to Now, turn John. I'll over

John Albright

A few of the that outbreak. I'd the to actions we've like remarks, In we some mentioned response Mark. closing in already. Thanks taken our to summarize have prepared of

during $XX have available we defensive Mark As in remaining credit this of and facility of including uncertainty posture market. the on our position drawn the in period a in us This liquidity puts mentioned, supports approximately capacity. million million $XX the our strong

not Our with approximately in stock through acquire Board the our severe the the average $X an To our a price XXth, nearly of equity program million of a stock shares April view given company's $XX.XX. stock price. discount NAV, $X significant dislocation in we and approved of at being spared our the million XXX,XXX of utilized markets have March, to buyback was

to optimistic and of that challenging our economy the in of shareholders. COVID-XX U.S. and time the impact closing, shareholders, We our our that are friends colleagues nation's the sincere of candidates will history. the so dissipate pandemic remain and during for the I'd benefit In remain well this like our hope all soon express returned and strength our

our At remarks. concludes operator, That time, I'd this like prepared questions. open to for up

Operator

Thank you.

session. question Barry now today from will [Operator Davidson. begin with question-and-answer Instructions] come will the Our Please D.A. Oxford ahead. go first We

Barry Oxford

Great. that deferment? with, of of When guys. all you Thanks, that lack sort that of give probably needs do of you those letters tenants kind look a word, or some in XX% the negotiation the just of come them any you're of some are have form for better won't deferral, at rent

John Albright

Yes, thanks, Barry.

Barry Oxford

Yes

John Albright

get taking of we everyone negotiation to we're something Definitely of approach It's that the a the if can of out agree something form pay and will we it. rent. more only

anyone kind else. So, animals economic as of we're

that's, terrific, looking we if then just are better if for can without position so with make anything we're rent And that's but tenants fine than default the our route. deferral strictly going

Barry Oxford

Right.

type thing? So along and it's blend extend something a of the lines of

John Albright

scenarios. mean kinds all different of I

pay extension would lease the rate of and up our be want an obviously, So they list. kind on something we'll interest at penalty rate, a rate, If a look defer high that.

of board. the kind across it's all So,

Barry Oxford

of withdraw pipeline, that that in pipeline – Right, pricing because you particular in it you hoard – at of was moment? right. the had you look, not want this moved to Switching more the that from and favorable did forward, to horns kind cash push gears to was kind we this acquisitions or rein in of had had the kind felt

John Albright

there far economic, We before this reprice to and A clearly something said, talking needs adjustment. collapse didn't both. repricing. far who little contract go as as a knows? we be just go? We even of mean, bit route under pandemic lockdowns. I – the How Clearly, about that putting didn't

hold we didn't be so conservative just So, better conservative let's the be off deep opportunities pipeline, broad a or nature, the to and that kill may down how and how assets wanting – more so just more knew we tenants issues posture buy and would of and back, the that's lot know, buy there a when have to assets, that road. going to of we've not were

Barry Oxford

the guess when dividend in makes of light the that gap] Right. throughout [audio XXXX. absolutely looking No, that I'm Then I and at last question is, sense.

our kind get into we environment this in say, of at kind here, dividend your flat is we're until in fair safe back to mode. how as, a hold to of look, kind it look dividend? long As way that to forever, Is long, of acquisition can

John Albright

look, mean, reassessed. we'll it's has in end look. how see company chance is But, And of a how kind May just with of negotiating we're the cash the wait matter see with and and that flows up I we the the and Yes, how clearly, capital.

call and so, world And see after basically activity see determine will of the here the days where XX seeing another are where board that we of and is.

Barry Oxford

it. Appreciate a Thanks guys. lot, sense? Make

John Albright

Barry. Thanks,

Operator

go Our Raymond next ahead. Please question will come with from Calvin Sullivan James.

Calvin Sullivan

Hey, you. good morning. Thank

durability of moving for office question is First the forward. rents just on me

Specifically measures. Hilton Grand Vacations cost has savings some announced

So your office forward? can your kind some discuss you relief of portfolio of and rent if outlook just component of thought on have form the going they

John Albright

everyone's something. and Obviously, is April. But, certainly that can liquidity they obviously, market paid wouldn’t Sure, for their be to sufficient. as looking their outlandish assume you it cap tell,

we or where is assets have them mission critical. lessee our critical office these their assets with And

like we we them, it's of kind enhance embedded it's -- only can negotiate question, again, with to but if we so, And our an may position.

of kind with we Hilton. that's where So, are

Calvin Sullivan

Okay.

tenants about, bucket rent view deferring other plus Hilton moving part kind But the can actually maybe at guess, I XX% John, rent of April. elaborate the that that, past is just or component would maybe mean, a your but at on check, of that percentage, you there's think upon that duration, of or got kind paid looking there extent you of depending you with moving risk at accommodations portfolio, you April April a rent. So, as hey, the the that this are just Vacations future forward? discussions looking paid Grand I

John Albright

Outside with that of Hilton, Yeah. have just paid a want of those obviously I discussion. us, to which of a April. tenant little there's larger very types tenants is

Calvin Sullivan

That's Okay. helpful.

the look the there, to aren't the cash modestly flows dividend, cash with operating up to So, operating you and maybe the directly, moving the a or dividend I current would if look the in more the reset environment. recognizing there's continue at flows? back maintain potentially to levering to run rate, would uncertainty to of board align guess, dividend current and you lot

John Albright

levering tenants mean, just even -- one would is prudent course, I when the and which they're sort there those of lot it's we But on of at say not is of even want a -- not the appropriate have all -- side. look think -- I amount flows, dividend if you a even they say Well, up, cash dividend. -- really board huge from Fargo, going flow be But, you it's I pay, Wells tenants, have to because cash our these the of versus is, didn't to alternatives.

paying kind of that, I the make that our have would size May board our its not large determination. the company, I But discussion just a to will so, dividend think, that amount. in say later And is a

Kevin Sullivan

Okay.

be sounds to those -- a again, dividend. a where continue comments for or evolving. -- just a situation obviously even is it track XXX%, the to willingness I two the sounds maintain record like willingness kind But it quarter some like exceed there's ratio the of might that establish payout So, take there if if to

fair a takeaway? is that So,

John Albright

skies Yes, meet are are problem. clearing drastic and the a this things that's don't fair going month just to think getting we're better have to we and couple to say time, just I moment in if something do

Kevin Sullivan

buyback talk in buyback that And share just -- kind context moving then just borrowings allocation, helpful. maybe forward? to sticking That's million things just about of repurchases, capacity capital in $X maybe the Okay. of the beyond or willingness move place, and million going your with $X like

John Albright

a really back hope or it think was rates at cap a and it was little and time where clearly it's ridiculous bit stock allocation stock buying time stuff. price, I best these discount all of capital in is and a NAV that the in a Yes, when we kind the of moment moment more implied the

reason some unless wouldn't programmatic that's I to back. So, that for say be things going going revert forward

Kevin Sullivan

down turn I'll press all in and a one the based release, over, what reduced that that where if no as no and -- be agreement Okay. would the for XX% borrowing there think scenario is more And as there's about remaining just a it far of but tenants and me base call borrowing kind if to way of with April to is just commentary rent? it Mark deferral the there

what don't into of -- XX% that run situation, pay look borrowing call If just it would was How some there's due you right in kind base the about quantify just that properties a the that here tenants way there that that moving recognizing the that scenario? of XX-day the the you in like? is pass to and during and kind acquired borrowing because the pieces base, or were of quarter think

Mark Patten

I way mean there's a it. about think to

could extreme the replace we've first do way it, acquired assets first to yet look I you be take the to I to assets extreme. that most the them. got things base, that's are think would it the not that so since nine borrowing although but other probably at that's probably think put if XX% extreme, we've offer that be My that would first that measured I is reaction onto the

to also, acquisition resume that's think -- in way activity I earnest, we if when that. could You another you buffer

six real think But fall do using the but all were to it. we occur. have the hard you you've first of come other we’d I your for out, do to try not off, couple XX% they tried reason with thing days scenario, I that went if different think point past, And off? do got a it they assets. backfill levers looking acquired is thing to some if the for been me, to Again, So,

Kevin Sullivan

it. Got

the $XX that at able around assets, Is given like in the seeing the you would in the but takeaway bring a more was even to from moving $XX sounds maybe where this? fair piece relative where necessarily acquired to don't end. million what number, you some quarter remain recently in feel $XX dramatic million to necessarily being that capacity, number a don't reduction it of base data borrowing it seeing you that full severe get borrowing So, a you don't scenario base

John Albright

Yeah. That's right. Yeah.

Kevin Sullivan

in Okay. it back queue. I'll turn over guys. Thanks, and jump

John Albright

Kevin. Thanks,

Operator

Our question from next come with Milligan Baird. Please go will RJ ahead.

RJ Milligan

on the hit that for but the the And previously, been preserve the be the guys. but acquisition gains year good press In and and previous magnitude acquisition to morning, what current likely liquidity. to or Hey, now, since curious, possibility that, shutdown liquidity thoughts on have I'm the duration release, withdrawn guidance million. have you are a just what's mentioned over right still you your to of obviously, recession, there's looking depending $XXX ensuing

out judge idea assets? do versus the you to acquire and of how that look preserving So liquidity continuing

John Albright

you as Thanks. have liquidity. plenty Obviously, you as we of capacity mentioned, and

where up opportunities, to a can or properties find we – well portfolio some our feels locations with our and fit with don't that portfolio. trying are opening acquisitions certainly looking at we pursuing So great given that get things look really phenomenal bit. would really like it We're really

no there out are those of needs, patient care probably as pipeline but we XXXX the market be huge at the market because is around not problem The So XXXX there's kind of as satisfied going their we right now. looking with what's of money. taken far of to think we have buyers there be being more once be buyers, a the getting opportunities, XXXX rates market. buyers, XXXX in so private will just something we're dislocation, some there'll have And

be rates quality interesting away, evaporates, once think properties. high for So the goes that cap will we pool buyer

RJ Milligan

if exposure now year, two you just than the of this, paying in pipeline, of gone industrial the bulk general terms months that the have U.S. obviously, then Okay. the growth of deals all looking And not the external And in That's through retail the retail we've been category. in office and earlier assets. were were – more rent at I this helpful. think

so, you little if there is here And considering actually And defensive this looking any offices, viewed side? now there in because environment. think bit on a more at to curious be office it's the you're going if more opportunities current some as I'm

John Albright

sure, side, our up opportunity definitely office on has I’ll our mentioned, answer company. for we the your see office, and you and would investors will the very there's well, consider former as held latter, hopefully to big for as because to question, be plus that answer strong of component going portfolio a that

special But situations office have time the the at who looking -- would eye the I some of this been long-term are So out meets we're tenant, tenants still all during whole have an those for criteria, we’d do retail. lease. say location, looking keep great that that we where period. great at retail definitely opened

just So you retail, survivors world have the that sort it's had -- of in of whether the thing. necessary

of So now. where that's kind right our is outlook

RJ Milligan

my within categories retailer? health type that you're today necessarily portfolio that about within of any specific that long-term there term the And of category, concerned final question is, the terms -- industry longer are in not

John Albright

fine, Luckily have, but and the see the basis in mean, so Yeah, challenges of more far away. will think I have those you its we're I sectors. have us going us all the that of -- look, have, think, the properties not from of tenants may their challenges, not I casual sector going as some dining, that locations that obviously, have theater, future, into away think of And we we're they'll to as moving get can go to to we won't you that acquiring I that. more looking be see a

RJ Milligan

Great. guys. Thanks,

John Albright

RJ. Thanks,

Operator

disconnect. today's attending will presentation. session, today's question-and-answer today's Thank you conclude for And conference. as now may you This well as

Alpine Income Property Trust (PINE) 28 Apr 202020 Q1 Earnings call transcript