PINE - Earnings call transcript Q4 2020 | Alpine Income Property Trust, Inc.

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Operator

Good morning, and welcome to the Alpine Income Property Trust Fourth Quarter and Full Year Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to John Albright, President and CEO. Please go ahead.

John Albright

thank Property joining yearend Trust results call. and the today XXXX everyone conference Income Alpine fourth morning, you us for for operating Good quarter and Partridge, Chief With our is Matt Financial me Officer. new

customary turn I’ll to provide call. began, we disclosures it today’s Before regarding Matt over to the Matt?

Matt Partridge

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

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

John Albright

our rate full beating at filled Matt. PINE. Thanks, here macroenvironment, first X%. properties quarter, XXXX a number and challenges the We us strong recollections, challenged by growth full of for $XX.X in and capping dividend State In weighted was Washington highlighted acquisition cap unprecedented had with the year very in significant first notable for a guidance. year strong a a fourth fourth and In of achievements off operating average invested outstanding we despite Arizona quarter, our three Texas, at million year

Dollar Walgreens also the our high-quality weighted time our at we term tenants. to investment-grade list where average to second nearly years quarter continue and portfolio our required XXX% quarter in while to rent exposure of XX the fourth a investments acquisition. from Kohl's of of of The of was For row lease adding add tenants General

performing Walgreens an we such parts, was spite maintained of resource. general Hobby best-in-class the acquired focused tenants, automotive and Dollar challenges of store, acquisitions guidance exceeding full-year of at volume concentrated store, to tenants performing our X.X% General, many weighted rate consumer rent the the year, top our with XX% sectors entertainment, back a of real was operators viability of QSR exposure cap throughout the and estate. we mix a with XXXX operational on dollar the towards were the Walmart, the long-term We furnishings, step various end operations related as the including in grocery, and success merchandising associated XX% tenants made rents XX better XX% base grocery, merchandise XXXX in have profile home convenience high the million performance the general credit non-rated investment-grade including properties pandemic. $XXX.X quality and guidance. and Kohl's a faced dollar rated locations. the throughout Taking acquired at during to pharmacy, XX was acquired able we who Lobby sector-leading during of for to rate annualized rents sourcing XX% XXX, electronics, cap XXXX, tenants Over acquired and the at pandemic attractiveness For invest average of credits demonstrated of in acquisition This industry-leading sectors the looking in added

were Austin, MSAs and where Our the rent par Of Phoenix, no nearly with across population XX medium business XX suggest concentrated acquisitions, attractive markets, acquisitions Boston, of rent acquired that demographics. and and larger such trends which long-term [ph] we've markets seen the made XX% base top Jacksonville of in is XX within we spread volumes Dallas. during the shifts as states the include XXXX year and in markets was our XX were where XX% Texas on

Virginia in the throughout the assets valuation activity our the outback point believe for steakhouse market. cash cap one-off a a not the underlying net of for gain the acquisition our to ongoing data we representative $XXX,XXX, in addition is of we the an regarding estate which X.XX In September in stability rate quality year, lease the our but of real transaction and of attractiveness portfolio of sold and

square with leaders of As that of year, their Lobby, Dollar top Walmart XX our respective in growing and the totaling industries. of the end of X.X tenants occupied in Hilton, states Fargo, Hobby Wells XX Walgreens, which included all portfolio are and consisted XXX% property with General, million feet

We from our more monitor powerfully powerfully of XXXX, annualized base the where continue us comes giving comes level rated corporate XX% transparency traded our as credit XX% financial rent to tenants and of can are we efficiently tenants from the and tenants of profiles into performance of rent outstanding than favor of end corporate stability who and tenants. our

the am announce during out Within pottery parking Jacksonville control in with we old-time their gained the through portfolio, negotiations I within of an excited to field that Florida. had parcel restructuring,

accretive the asset. ongoing of generate $XX,XXX to sell at parcel of or the with ground buyers been number has of and a of earnings team believe contract out or parcel operators our in we ground million will original conversations, working price XXXX QX which to least Based potential call. signed have by the will our be $X rent we'll investment sell we believe and value highly a Our lease on

the in made the Shifting points encouraged to the data into tenant and properties ground when of of been anticipate maintaining our the leases believe historically portfolio, increasing Year coming tenant there to exposure a by some of are lease the makes significant half is to this progress and ground business of ongoing positive New have or rents a as we portion for the rebounding and we combat being our meaningful we now XXXX, month currently We are structure, have to we potential not pandemic. do from related activity the asset. stability lease a X.X% the investment While better improvements

and of results of on broader by targeted With the has such expanded later estate approach unique I on I'll said, have where towards that about its the in adoption have our of owners operating trends she share maintain [ph] and am sectors career focusing regarding probably run the do acquisitions companies operators from guidance tenants. believe Elias and to position six uncertainty benefiting listening anticipation our real balance being are many had performance the top and at continue an we being events her focused be has That and that, advised has to many Board XX on of prepared relevant And she various with a improvement, value. commercial and of strong on implied Rachel future quality we EOI growth ICSC of both sectors AFFO data-driven of us having to Alpine However, REIT the and to illustrious estate XXXX real our members demand for the to addition a Matt strategy has will driven Wein. which investment to as consumer see where outline where financial long-term our and Directors Practice. her in Rachel very trends, the senior as finally a perspective turn should suggestibility looking Prior to a and continued our as through and issues all and I think excited his of Plus. conviction say effectively underwriting of trends, recent company a execute Rachel our stable Estate and with operators we'll lease announcement have operating board. REIT over her underlying serving we Wein and operational both you economic per served the into prospective Advisory remarks. positive firm With brings presence. Matt associate E&Y fundamentals a more exhibited ability Wein similar call assumptions that remains and existing which we're Needless active of to portfolio performance, activities. forward Kroger, our set detail Rachel the FFO sheet founding to development for that our Plus, of very discuss REIT Public announced the executive advised Real which net in with the in advisory PINE public central number digital tenant

Matt Partridge

Thanks John.

to due calculation each and of the excellent month of assets base or that the of XXX% of the our of the been less to collection that negative for rent fourth resulted When if the quarter what rents entered prior where contractually had repayments month. per during and comparing previously each we would've revenues excluding XXXX XXXX the referenced, and The I'll XXX% payment of contractual recollections were base rate agreed quarter were the of and recollections quarter we rent remind COVID-XX and rent due rent of approximately stability amendments, XXXX X.X% month. Total fourth revenues deferred quality were total in respective $X.X rents fourth date. represents in percentage during for rent effect for positive of collected deferrals abatements deferred the two to contractual months into million. on our everyone related repayments the tenants collected of average was full-year the our not previously include $XX.X required includes John rent As XXXX and first million for the

abatements the expects for say deferrals. and I'm the experience final to However, COVID-related month pleased negative to that company was from impact December which rents the to

fourth share. $X.X quarter from XXXX were $X.X of million share $X.XX operations or or the and $X.XX For million were operations adjusted from funds funds per per

deferrals of positively the deferrals net $XXX,XXX rent deferral Our was the to mentioned AFFO fourth related the agreed in from repayments agreements. impacted approximately and quarter to impact previously previously of by

AFFO related positive experience previously We impact repayments continued periods expect a to deferred in future the of rent. scheduled our to to

being XXXX operations were by per $X.XX net abatements of agreed of deferrals repayment share and million funds the share full-year operations and impact $XXX,XXX $X.X of per $XX.X the impacted were with For from to negatively rent. from million AFFO from previously adjusted or approximately deferred funds or $X.XX

XX% As and of of XX% XX. represented AFFO per ratio FFO paid share. dividends record payout The $X.XX ratio fourth of of company cash for of previously per payout to per the $X.XX announced, and full-year of share cash paid share This a December represented of December the of XX stockholders of for dividend quarterly the on XX% of a per FFO XX% share. quarter the share share, on per per company AFFO which XXXX

yesterday's Board of business have first declared $X.XX on X.X% compared of when XX% XXXX company's to of cash a dividend quarter on of This March increase quarterly company's increase close the cash dividend represents previous over quarter as of March year-over-year the company highlighted and the to approved press dividend. XX, and first XXXX. our be paid to share a dividend release, per cash stockholders of Directors XXXX has record the in of quarter As XX, a first

the For consistent cash dividend first board dividend communicated previously XXXX, providing to our reliable approximately shareholders. policy quarter of our yield an and represents of annualized consideration cash X.X% a the $X.XX in of and

provide to we and For mentioned, yesterday. broader disposition approximately the and share XXXX includes guidance the of a AFFO John continued and today's to This and press our XXXX, economy volume per limited, $X.XX to XX% not share. FFO remarks, $X.XX over AFFO of prepared FFO XX% to $X.XX growth results release related guidance is FFO the yesterday's full-year yields, capital, and growth assumptions As acquisition in AFFO release communicated XXXX. suggests XX% share share a $X.XX within XXXX Based in AFFO improvement including per approximately associated FFO diluted XXXX guidance full-year per and over timing but per to outside number in of guidance XXXX guidance number items, diluted to XX% of is on summarized significant of and our these

XXXX value total enterprise total to approximately Turning balance and times. debt at end net debt was to XX, on million December hand million. EBITDA approximately as the was quarter $X.X was cash was XX% of or Net $XXX.X sheet, X.X outstanding to debt total

previously we through new from of facility the during relationships. million million two As announced, expanded $XXX addition to quarter $XXX credit banking our the fourth revolving

with remarks. position facility credit XXXX closing no at call million continue on we the maturities back to and over I'll turn until the to late his With of availability be that, debt in strong So year-end. John a $XXX for

John Albright

Thanks Matt.

continued accomplishments holds As future shareholders looking about we're a on our the this for strategy of the the what guidance their to our IPO, to evidenced portfolio I up performance want congratulate questions. our thank time, year. Alpine. XXXX investment and terrific At since Operator? we'll execution in excited for by open and our it for forward strong team support

Operator

Please question of comes instructions] D.A. begin the ahead. go first The Davidson. session. from We'll now Barry question-and-answer Oxford [Operator

Barry Oxford

don't John can type of to currently relates that pipeline tenants acquisition currently that little tenant, at of know of you if mention color you could now, the give of me me the in I on specific give looking right it you're a are but you the tenants to that a as types if kind kind pipeline? want

John Albright

of ownership. includes who tenants we don't have So the various amounts pipeline in presently

be would great of operations. the with very well-known it So tenants diversity their on substantial

in too I estate sector in company's another store this the that their strong very So the very be categories operations at feel much in we want work that the into are for don't if probably to dominant operations real will go whether and we're is so strong performing future tenants strong the that and or real for looking that even confident operator. estate but

of the in mix tenants mix, a of it's good a ownership. news the we little So is it's presently that bit don't a but

Barry Oxford

you competitive now there saying environment and buyers seen? these than it types any are what are the table guys different up previously? for not is more maybe are than What when you And showing at typically then competing had of today was the acquisitions, you are that

John Albright

really really for see you're store rates you're I'd type or something XXXX property, unusually rates cap compressing of to seeing competition the whether it's that, and like of lot favored grocery years cap some a Yeah that a say XX low than traditional. going with tenant

opportunities we're strength looking have part of and flop we quick. -- for the it's a that real quality where So on we're quick really we're renewed And very different at it's really can may to XXXX where tenant there attraction pockets our finding we're it mom-and-pop durability, can execute of we lot but is but too is type strong, potential just the big as really capital. for what looking a focus a transaction kind of good opportunities and and estate and finding one-off

So before it gets far into out too the competition.

Barry Oxford

touched that deep to that. that how sector. lastly, lease then right at of you how on is the ground little and the Well do And ground category a me lease volume looking more is kind favored give of you just John a now? you market much wanted such Can of obviously maybe and you're sense a

portfolio trading on we're looking unusual going to incredible ground it's we for we to -- companies future. ground in ground highlighting had but at that at looking with and we that we more leases, leases we so the we but So can us own acquisition, leases, an to our people multiple, in wanted whether origination acquisitions before it never these highlighted it’s that that are structure are not us you're given see execute or to need it an highlight at decide have definitely

Operator

The next Janney. ahead. question from Rob of comes Please Stevenson go

Rob Stevenson

first $X.X level what thus guidance, on? acquisitions million based beyond the it done that the in Matt, far the of you’ve is quarter

Matt Partridge

fluid of impactful, nature those assumptions, is of the going and probably of size most the company a specifics. given a we're there disclose of the to in Yeah timing Rob, obviously lot the guidance the and assumptions lot

not end, it's outline the and on active based am volume I going to the you the us front. can low-end on because but assumptions this acquisition So pretty expect are be the what high year to very

Rob Stevenson

here is guys at up. XXXX? obviously how early your cash then about It's with at as equation thinking still side question position, And guess how capacity equity for would etcetera, raising are this on well, wind the but capital capital got the Okay. the given stock price up I being guys debt of about other in market are strong thinking you point a that preferred like you you least the

Matt Partridge

the got We're days, stock performance at. yesterday point company John's probably a well obviously very we've has price driving the lot risk over done day returns. of on acquisitions on for we're the looking from standpoint. the focused last Yeah best XX opportunities good pretty adjusted a To pipeline,

the and So we'll then are high-quality they we're the portfolio right that fund find to materialize. to trying opportunities those capital transactions to evaluate are additive as that

Rob Stevenson

a adding company, that to need as and the diversify board a Dollar category? you to there the store I at within incremental How Was upper you feel you is hey, within or Dollar those General the guys beginning the operators with stuff and few comfortable limit of with? quarters. the the there upper inherited You limited over from standpoint Generals, say but exposure wells last before Okay. the bunch have Helton comfortable it's a obviously even merchandise do you're if feel of of dollar done other you that

Matt Partridge

that done of that's the Yeah but invest we've safe think now. lately, kind General so mentioned I lot can you’ve think I for it's a say to Dollar you of as

so grow operator. performance get as you we certainly exposure forward this exposure going we're and -- like They're but we and can go the definitely, have we credits. with grow see and credit their see in leases year very we other almost the as the company, that as like of can the will you we So portfolio as down long certainly part strong that yield probably

Rob Stevenson

Okay. me dividend the and have versus market you been board growth last be happened, the the that held back have in aggressive for how had much growth year? dividend would And one just more over if given the never prudent John, really then much environment COVID how last the to

John Albright

see just move being Look on obviously but the conservative there is growth, as up. room for we payout as more it can you ratio you're

as what we a So will to move it for we as REIT just out given sure. certainly have progress, pay up

just it it. to increase be about to looking it not we're methodical So pull and going dramatically forward

Rob Stevenson

And the of payout are dividend versus Matt, new net taxable you level given where earnings?

John Albright

just weren’t Obviously over were of XXXX. XXX% at we the the invested throughout so we fully taxable year, Yes end income.

little dividend. had the to we bit a So grow to and

XXX% form efficient target attractive most cash to guidance the taxable going payout a flow Free right our pretty to now. with expect is of point, existing think I us income. you're equity but around it's John's to ratio

Operator

The go of ahead. Michael next question BTIG. Please Gorman comes from

Michael Gorman

Good dividend, If can as cash morning. you I a flow Thanks. that equity. of source on the follow-up one about talked on free

the think payout that versus of to growth how balance of you XXXX? there, As in but strike continue that balancing equity source shareholders or you you room to you cash plenty that flow returning about to do your about do have definitely think do fund you balance? having how ratio, How that

John Albright

it question for Michael. at good so and we try our on year quarterly have a talking about. internal this Yes year payout were beyond and with the balance basis. that growth we The ratios own projections board the to looks it's Obviously, we a the

I think first important for covered well pretty size and and given but point this shareholders, for and us, consideration providing predictable debt dividend board. the foremost profiles is the a probably and at consistent dividend a for our growth

Michael Gorman

and on of markets talked activity cap your markets? or moves of traditional versus you pandemic? some some and in your John And seen what down what I cap wonder seeing that some more the seen you're move seen concentrations you’ve coastal-type XXXX? XXXX in arbitrage of rates any Have target rate you demographic rate based about cap the of happened just any because of happened in in Have cap movement some the market you trend and if market yet rate between

John Albright

much not think lot a the cap improvement rate buyers. little bit, but seeing more you're as seeing I Yes a you're

investors definitely that those California looking something and focus the Texas for still or forth. at now showing is capital investors strong a are in but so definitely like or California the from Northeast shifted have up even So and Arizona market

much cap more not but So buyers, not you're as seeing compression. rates

Michael Gorman

apologize if the I or of up was it, given What the of obviously lease, unlocking other missed value with the out conversations rights add. in the that could which ground great but side your parcel? the mentioned for giving I location is out the you consideration if you them share on up And then kind parcel that

John Albright

have is chance default, bankruptcy and through that just a a basically very site parcel. had because have large they're they and very terminate had of gone and very them their had paying they to had the Yeah low and rent we we that or attractive they lease

a come or already cell so execute go into back whether them, And we we lease, got we so ground lease have on out the approval it's several parcel allowing a for in and offers to lease. the us sale in them combination and of out from the out can parcel

just of have strength plenty shows opportunity it location there. So we the the of that

best far as So can we'll how to credit, rent that's we it but pick try the shook and as out.

Michael Gorman

release, then stock one made last a didn’t Matt, guys just any happened I at of on the year-to-date use price? for And have to basis what's me see looking you just ATM in the the it

Matt Partridge

haven’t used ATM the we No year-to-date.

Operator

from next The of Robert. go Golladay Wes question ahead. comes Please

Wes Golladay

schedule Did rent? guess guys I repayments benefit from much you year from the the this deferred of mention how

John Albright

have which specific Hey the so at for Wes a no, net repayments, you deferrals for and item that's a of financials, if good impact a question, COVID $XXX,XXX had XXXX. line look XXXX we

to for be repayment of expect relatively We count the basis. XXXX around that the on impact call it current $XXX,XXX share for is which upside AFFO $X.XX on are positive a

Wes Golladay

and long And look kind but term the would I timing market going guess you loan this at? if is talk then the about if you maybe balance sheet. the numbers, I of the borrow probably the know to to to maybe what just rate picture, one so, transactions do move bank year, you were big with a you plans of could could

John Albright

availability $XX obviously million facility. currently So the we've got of over on

continue balances is So the strategy. foreseeable is do and and grow uses I near-term other bank facility continuing then we future, grow how in maturities the to sources us the what the expect capital materialized, stager for the relationships, terms loan can banking the the long-term I group and grow the probably outstandings relationships, you to out we'll think out the but the term as the think term on to out banking to through see

Wes Golladay

the the there capital? deal constraints constraint rebounded, for are a price would company, Is company. clearly at than one has be equity or there maybe anything what other that outside now on equity that then flow of resources potential the there any I And is but acquisitions, guess

John Albright

shape. good we're in Look

kind executing in the run We a about everything structured. front last and people so some on we'll good in first of well acquisitions see really us things a have all team and pipeline of and it’s concentrating is shape executing We we on good quarter and that's us progress. then and in how for have year

Operator

comes B. Kucera Please of go ahead. Craig Riley from question Securities. next The

Craig Kucera

the color deferred for make on XXXX? that Thanks activity the weighted the to expectation that last throughout fourth the or was Is the rent. XXXX? of be think quarter more I quarter half ratable first that does in the towards going more a little bit

John Albright

That's be a first more really good second question, Craig. weighted the and quarter. towards It will

you So in can half and the I throughout ratable rest bit then little the approximately it's that think of year. of the expect first quarter more a

Craig Kucera

you the I as year far at? large that primarily performed very at half two assets think in the of of looking office you the Are assets as second as potentially office retail looking well And COVID. any during you're were pipeline you goes, have the

John Albright

we're is There but office the on mainly retail. retail. It's in focused XXX% a pipeline, no

Craig Kucera

a larger time, or company Got of a office it additional more as play and you better the sources in capital of do long-term to become just over those become retail are become pure holds? potentially assets

John Albright

definitely pure value of we but those retail, it that to the become could be opportunity properties. Look know

there by that have fully execute being we cell the we buyer. the So where a to recognized on value know

to going be anytime that's market. things nothing it's So future macro when stabilize in soon, in the but could the happen

Craig Kucera

know opportunity needed accordion is million I existing room an credit capital, on Got the have it. still an or some there there it plus, back feature you if to just line you circling $XX and

John Albright

the group. obviously is the the take in commitments we the accordion when up also expanded from we lender with There additional -- to facility $XXX fourth it million expanded quarter, to

Operator

Raymond next go ahead. comes our of from Milligan [Operator instructions] And Please RJ question James.

RJ Milligan

been have questions through CGO, year, much CTO do do this revenue? through curious source my answered, but I'm the you that expect to do you expect pipeline available to potentially to captive how from expect become -- more of much Most on how you

John Albright

this some type work and feel we sure selling properties, CTO still there Look be for year. attractive to for through opportunity assets the at like as tenant some this Alpine continues are single CTO

RJ Milligan

think a over the or to mix total be of smaller you to portion acquisitions? say two do overall to three years increase Do you the expect of acquisitions from going CTO next that's the

John Albright

next I they would next the a really if there's that buy attractive some see will the XX would say to it's XX that opportunity probably months months? you activity be good so for cap in Alpine rates, in

Operator

turn This any concludes like back closing to for session. John question-and-answer Albright conference over the to I'd remarks. our

John Albright

Thank much you the very attending for call. conference

Operator

The for has today's may concluded. and now conference you attending presentation you Thank disconnect. now

Alpine Income Property Trust (PINE) 12 Feb 212020 Q4 Earnings call transcript