PINE - Earnings call transcript Q1 2021 | Alpine Income Property Trust, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Alpine Income Property Trust First Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would like to turn the conference over to John Albright, President and CEO. Please go ahead.

John Albright

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

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

Matt Partridge

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

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

John Albright

Matt. quarter with I strong to the first earning agreements pleased in our solid our a since tenant for activity investment year $XX with first to into report the acquire for five $XX start seven million. million with properties transaction nearly lease and Thanks, IPO single net CTO acquiring to am properties

acquisitions. Ohio of with in of which More and base average start with earlier invested this for Our a activity and cap and of increased average row contractual Texas, continued term rate the dividend X.X us and announcement rents collecting relates Mexico in quarterly we our continue in quarter remaining weighted also of the a as to dividend saw million of it a at time QX strong specifically acquisitions our trend properties week. weighted we the years XXX% our of our for X.X% a growth third lease our $XX.X five

as tenant such such exposure Dollar as to At warehouse. few our of and well General, credits, sports existing a Our as well roster performing a increasing as combination to adding Home acquisitions were and names new

implied process nationally due for a demographics portfolio. strong along As tenant reasonable underwriting chains market their our within strength the combined locations, our Mexico attractive this traffic, throughout properties. The existing compared rent we highly New very us tenant we thoroughfares, with and Ohio the grow and believe went each suggests through at strategically diligence basis, basis broader acquire property, to to our operations adjusted retail present opportunities at cost very And for risk solid ability when our and

the X.X of of General, Wells Fargo, end square portfolio and At Walmart was the XX of As Hilton, XXX% Hobby quarter, million states, in properties Lobby, totalling tenants top that consisted with Home, our Walgreens. Vacations, feet growing Dollar included Grand XX occupied

of the we going We as these Vacations, are Grand we focused of assets Hilton we're our explore and of tenants release, XXX% our announced quality portfolio. in occupy retail office as towards yesterday's very press two Fargo in sale migrate properties top confident the to Wells but

sales Phoenix, potential these look earlier And be start providing feedback. are updates a from in to Burlington, two which quality $XX of as and for CTO the fairly that, acquire tenants very more into have Metro Teeter area we we our leased Lots, markets acquisitions, of prepared six Seattle investment further to now high and beginning of to one Matt. an forward of the growing Orlando. X.X%. to high assets agreements growing lastly, process Worth properties Charlotte, for than turn property Lowe's, overall from property Walgreens, I'll group. weighted just and of that transactions average in major single dense Houston, tenants six over entered transactions, is coming tenant that Lowe's net remarks, at grade XX% Metro rent lease excellent proceeds further DC, diversify portfolio summer include Harris announced Aid, would our portfolio head Big the largest in include Rite our net with the market properties a and of We the The and with cap as and number properties with portfolio million representing as portfolio in And and is growing to are high second into the the quality alluded under we a month, receiving rate seven Washington on strategy. area. I well. into know a pipeline has of its These robust Dallas-Fort simplifying a With investment redeployed from in call The represent the have collective this the to We retail quality the opportunity retail asset we us

Matt Partridge

portfolio quarter, the We're and strong rent have second first rent the all deferrals in course. the of deferred of start agreed base quarter we year. performance contractual Thanks, of for I'll collected where longer John. as of their experiencing first any of rents the into effects highlighting months four our we XXX% run no each previously to by the the

four expenses, improving decreased fourth XXXX quarter more deferred we've rents. repayments XXX% first the for to of associated quarter our months, their deferred rents include scale. general than basis XXXX collected XXXX than the were or XX% and the XXX base compared administrative from quickly by for pleased statistics of for to required. tenants Our quarter the year-over-year XXXX when the over we've million reflecting first rents had our revenues had points each of earlier CTO of Total $X.X basis a first while circumstances the collection include our anticipated pay increase And fee, say management I'm points quarter of reported previously contractual certain XXXX, we do and the which and where and of

funds million compared or FFO of reflecting $X.X and were respectively, share. from were per growth quarter XXX% in the AFFO $X.XX adjusted an of again, increasing share first quarter of of to per the XXXX XX% XXXX $X.XX quarter first first or was when funds from platform. share, and million XXXX operations $X.X scale the and operations The per

and Our from of repayment the positively although quarter first XXXX $XXX,XXX future our of mentioned of deferred related quarter repayments. AFFO agreements. in the the expect the quarter largest experience XXXX represents repayments a deferrals positive first previously to to approximately impact periods the to do related the rent, by of was scheduled impacted AFFO in deferral We previously rent to continued

per March XX on quarter share, first to a XX. on more paid of company payout of a of our of of This share record per quarter and XX% the increase stockholders X% the per XXXX, For and $X.XX fourth XXXX dividend. AFFO a March FFO XX% than over quarterly cash represented quarterly dividend share ratio

release, has on has highlighted approved company of and our close quarter in a press record of June the per to June board the we stockholders XX on $X.XX of yesterday's of cash second be declared XXXX. of to XXXX paid as dividend directors As share XX business

Our increase and to first increase second the of compared company's second XXXX. XX% year-over-year of over represents cash quarter the a when a quarter quarter dividend X.X% dividend

and dividend X.X% our the [ph] cash our policy XXXX cash and represents communicated shareholders. consideration of by in of a reliable board an stuff of dividend and previously quarter second to annualized consistent The yield approximately providing

a includes number limited economy of guidance which significant but including these outside acquisition number AFFO and we to a reaffirmed capital FFO to yesterday's volume, year in full of XXXX in timing and associated related assumptions and and continued broader Our disposition improvement release items. yields, not the

share For AFFO the guidance be and year diluted remains $X.XX guidance FFO per continues to full to per XXXX, share. $X.XX to of $X.XX diluted our $X.XX

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

As through and we loan. noted, is six of $XX currently previously special a we're Alpine working an or assumption process CTO this from property service subject portfolio we're acquiring CMBS the similar million loan to to

the the that the six the process the market finally, time or the first a And or week assumption of represented program. asset much quarter July, ATM will our the loan equity in at faster expect and portfolio next likely transaction move occur first Our estimate do acquisition on two. Burlington pace, current in but closing we we is active property to were

turn stock As and efficient now to first closing a acquisitions proceeds ATM portion of total serve markets our shares our of common John in a for the our an XXXX, capital on increased transactions. of issue program growing company, gives another we the the his to to were our $X.X call for used stock us our as improve toolbox of fund quarter. match net can of the In back over million. quarter I'll liquidity These potentially proceeds fund remarks. to way capital tool that access XXX,XXX

John Albright

Thanks, and shareholders momentum delivered that will have for their We're quarterly strong our support quality time, markets, about the demonstrated very growth, Operator? open At access accomplishments. where congratulate coming high up continued questions. portfolio. our on digit Matt. out to the excited we of increase triple to have quarter third we capital our dividend, first consecutive the AFFO expanded I a to thank want this team pipeline their to all we'll for our continue diversify it and our

Operator

with instructions] Our BTIG. will come go first ahead. the Michael begin [Operator We'll Please now from Gorman question-and-answer question session.

Michael Gorman

thanks. opportunities what it's kind there caused in you assets, assets, if discussion think Yes, whether talking the about the Good portfolio guys. the seeing the I the on about the and wonder retail minute on about office we could better as you office inbound side, what another if spend John, morning, of brought you're portfolio? saw just interest just the change

John Albright

Sure.

capital and them, and multiple selling the retail against lease help to, a contribution we should know, pandemic, become a view terrific get comfortable the even becoming questions you office discount the the that the strong apparent contribution. XXX% we was expand ourselves as space. it's narrow kind to and a A very lot the the and we office XXX% of the think a them net of and company the to office I the retail very, be good with about peers bit in we're think that in very But assets to as lot, of using portfolio that retail distraction. though during should the did investors

they've really of that even and less with we're to a them, platform retail So, kind though done we investors. distraction pure very of to well become comfortable become and want

Michael Gorman

you we your the all CTO that one And process transactions. of lines great, I discussion sale the expect try in you're And these with noticed of up Where sort sale acquisition sales? maybe your going very we you're dilution process? the of kind sense. run office summer disciplined parallel? should with over Now, potential any the to have pipeline makes fund going been assume the the that match to from raising. Should that of Or with term capital short to

John Albright

perfectly, think we're love to going be to you to mean to, but things look, I I work we're match we'd not not everything to up out try going perfect.

and some sale acquisitions pipeline, fairly then the quickly far assume be thereafter. a of sort disposition as a acquisitions. between may But streamlined there and given be So lag it'll robust as I

Michael Gorman

retail Great. the on And then one last one me from side.

about year are longer tenant we're way that in of from conversations some target may a you a just than in about retail either forward? general, potential potential think In portfolio looking into the the it, categories going is pandemic, Now change you're as as effects? any you obviously, that the acquisitions categories great the or at shape, seeing those term more industries

John Albright

interesting gotten it actually have across so obviously the us better. of but, what made Yes, our our, done has the most pandemic credits quite board,

wish Home if I lucky, Home quite have able At could to category, and, look or So and buy we acquisition compressed of Dollar the in at is Generals Generals, just fire At Home what on as we're we the couple estate. Dollar you At dramatically buy, not because, on stock our the months. rates real latest cap a we're bought last

so the categories forth. sheets strengthened mean, have the most of balance I better, pandemic, all our and and been are for during all so part, So,

Michael Gorman

guys. Appreciate it. thanks, Great,

John Albright

you. Thank

Operator

come Rob ahead. Janney. Our from go next Stevenson question will Please with

Rob Stevenson

the guys. office value book John, what's rough the Good from the morning, assets IPO? of

John Albright

handle one? Matt let I’ll that

Matt Partridge

where range. today I is Yes. is million value. pretty me. attractive terms But the market of book think numbers market where in Rob, in is have It's $XX book the pretty we value attractive. it's front versus don't exact the in of

Rob Stevenson

you if trying would type just out to were obviously proceeds, to Okay, an being what that. of figure access market wind sell to the up

to does move So figure within that not office you open opportunities of just class trying Or acquire Pine, an what you're And net source CTO that to forward that company? be? with? asset funds for going additional out triple to then a exit within would is space the that Still office? if

John Albright

we as keep wouldn't, targeting Yes, lines. of CTO, as defined just we be office clear, wouldn't kind net lease much, basically

Rob Stevenson

Okay. acquiring? how that at pine And then are left would after fit for CTO, many the natural transaction interest in a that have you've assets announced, strong there

John Albright

we fruit. ones announced the are Well, the hanging definitely low

are threshold there a as kind as for far rates of may be cap the investment of But, Alpine, For Alpine. they others CTO. couple below as

I went it as went, are a lot think, I as of to I when shadow CTO, think of there having pipeline So a couple. but

Rob Stevenson

recovered? next to theaters Do operators prices how you for make months to are the look appetite tight that things are roll of back you would at pandemic have, only get decision buy you big when six continue, year the to or Do normal? hold future? going a operations to then price to And out? or the maybe as movie How also disposing thinking for, movie Okay. but you located well not and your a what sell that? them guys in in presumably, own or the movie you over feeling discount the you about really theaters normal assets has about, whether a Do prepaid level? not the into closer so you vaccinations when acquiring start returned

John Albright

looking acquisitions the not for we're Yes, theater new space. in

that we only when comes lease obviously, redeveloped, about us could about. maybe could that we located an thing exit is acres that the you're opportunity we lately. doing like With think be well have, But regards see. I I what anything to may the that with talking buy that something that see seen a XX where be we have, would to comfortable ground what probably under haven't we're opportunity would but see

viewing we're how world. of kind that's So the

Rob Stevenson

raise or if the out is do, number at all Okay. the guidance, your the range. maintaining basically almost of standpoint, then, level how I All whatever, mean, just from you things And quarters right. Matt, basically this of static hold forward, going guidance end top the guidance delusion happening office a out from a given trading are the assets? move strong assets into as four first of up, the capital much what's Or quarter might you up the near of the retail Why wind didn't in term, results? thinking conservatism?

Matt Partridge

Good question.

a a the of it's guidance, talked we that lot the size. assumptions in into fluid call, go about set So given assumptions, last obviously, of there's the like somewhat especially of

pricing. I can't has early exactly capital dilution into some models assumptions the also to to on in office So we process have speak what impact would terms a the guidance. in be the timing obviously pretty that of assets, our went material because in And that we're

we timing first of keep last where the and impacted, where the is set a of it of all the raise strength influence chose So all was guidance quarter, why capital, of to the which how those, price pretty quarter. given we is significant has it

Rob Stevenson

that. Appreciate guys. thanks, Okay,

John Albright

Rob. Thanks,

Operator

Wes from ahead. with come Baird. question will next Golladay go Our Please

Wes Golladay

sales, of leases morning, there can want at do the as extend enhance to time, you such good office anything I the value? look potential ahead is guys. Yes, to

John Albright

where I long leases but could, where the right tenants in not to We are that's mean, head be, reality, is the now. enough,

haven't taken We've that the the aware, we made obviously, So process. tenants approach. of

queue the So really on because come that's as deal portfolio. length with that, not issues that's their point, to near really that's, lease something not this leases really tenants there's for about enough but at the in in more consider that just term we're they could the

Wes Golladay

of that it. for an how about, X%? rate that you drove the cap X%? talk assets? you competition And, quarters calculate can above acquisition you And Got face much this And north what for

John Albright

Bass find we it's to, to found some Cabela's stronger, happy the being we the the at Pro, during pricing, came to very when assets the even in sportsman we're look, merged assets for pre-pandemic. think, And next pandemic like, whole lot to a instance, followed, and out well and and I and right we Costco. of how did Yes, saw, now

So on And seeing, pounce portfolio more. we that to of at good, activity. good we saw we're go where to that home pipeline we're a kind And opportunity, acquisition, quick it. when We well. pursue back just are hope have they do to hope, fast we see just strong and very very or

Wes Golladay

look cap that And end is to that if similar were right of rates around I or it of we year's the now, like at X% range? guess the last pipeline more more cap rates

John Albright

of find Yes, last X%, but some year? more went like I I to a to so lot more. when expect hope mean,

Wes Golladay

taking for questions. Thanks it. Got the

Operator

question, ahead. will next next James. go Our our come RJ Raymond Milligan question from with Please

RJ Milligan

Hey, good morning, guys.

a whether in assets of be that the for terms to on capital cap you able thinking of terms what and expect not curious recycle rate office Just pricing in basis to or you're creatively.

John Albright

early expect it's book would kind pick I'm little if retail. definitely there value look on a said, where shareholders. on to kind dilution, of you We're up Matt rate transition, of say being think I as I Yes, is we give still sort cap we'll comfortable property said guidance. favorable and basis the to a of too in that it's it a length lease sure that will, very pure And if

so the little a kind guidance give further bit when of we're little road. a anyway So, down bit further we'll

RJ Milligan

Okay, Thanks all had. that guys. was I

Operator

next with Kucera B. from come ahead. Instructions] Craig go [Operator Please Riley. will Our question

Craig Kucera

was I or CTO good from so? coming Hey, morning, may outside size have what quarter of this. acquisition the guys. missed the over assets of the you're at over pipeline, the But next looking

John Albright

some the mode. actively XXX competition kind a some know have of more, are million to that closer, a range. pipeline XXX wide Look, we're pursuing. more in and far you I of are But that know, as the million we call of things it discussions as kind of

Craig Kucera

in renegotiation got like lease. an had going that that? quarter, and back you last Is a a we're to any Jacksonville ground update try pottery out old sell maybe time got and Okay, parcel either to feel with And or get it. I on there

John Albright

XXX those regards next wish class because problem as quarter, that just about were some as the and far hang I so property, had of we'll I hopefully, we to with Yes, dialogue news. a high having tight, have

Craig Kucera

thanks. Okay, me. That's it for

Operator

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

John Albright

to and Thank the you couple on forward to of call participating in next look weeks. we you for the talking

Operator

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

disconnect. now may You

Alpine Income Property Trust (PINE) 23 Apr 212021 Q1 Earnings call transcript