PINE - Earnings call transcript Q2 2021 | Alpine Income Property Trust, Inc.

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Operator

Good day, and welcome to the Alpine Income Property Trust Second Quarter 2021 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]. is event this note, being recorded. Please now John Albright. would like to to over conference the turn I Please go ahead.

John Albright

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

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

Matt Partridge

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

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

John Albright

rate during Matt. second our achieved starting since Thanks, late IPO a million an business acceleration which year $XX solid X.X%. quarter, for across the quarter going-in in XXXX. at After XX all with most activity our of of active we quarter, investment net a we Most represented properties aspects cap lease with cash first the high-quality notably, in record quarter our experienced retail acquisition weighted-average of our the

and community. very support demonstrated and shareholders owner, the of retail X our private source and These was and ingenuity sources new hard our sales of of previously relationships forward. these we assets achievements more was inaugural equity. on future partially our CTO on quarter resourcefulness of the offering, a OP team transaction, front, going high-quality within properties by well product Of Unit completed us the These and our partners, properties from we clarity a set from and properties a X transaction which our were relationships. our on in X agreements quarter-to-date, related longstanding a manager, Unit portfolio the the with a provided which from partnership for any our high-quality acquire I closed executing finally, comprised investment acquired operating new the were announced On transaction active investors. our representative do the we of Growth. than and to additional funding provided existing it partners, grow ability The also our we and received by follow-on was we pipeline. work and equity offering supported operating banking a the institutional And which capital of appreciative. We first of existing are an portfolio second mentioned so the from attractive opportunities were are regarding from mix form of transaction each retail in our a creativity to relationships of multiple Realty sourced and were funded platform, of through previously of and acquisition obtained sourced direct quarter, to external opportunities basis our by XX that team anticipate diversified which

portfolio. in X we service. added such sectors, operating industry, including the across and We and X exposure new in well-performing to automotive automotive supply restaurants, price retail as off new quick-service states, XX the stores rural tenants growing were And our sectors. in XX and parts, spread convenience improvement, grocery, home different farm added acquisitions Our states sectors quarter that’s & with

industry properties portfolio. Among leading diversity, addition operators addition tenants we In added of XX new tenant Firestone; Circle Hurricane, acquired Lowe's, average years. to new which improving we've geographic remaining meaningfully with and at million, base Tractor acquisition as year. the K, of lease under for we such term to this average rate weighted acquired was Academy just our Sports, earlier Year-to-date Supply our by Orscheln, additions, our Burlington, expanded or $XXX X X.X%, the a cap weighted of XX and going-in

states. the As in X.X growing of square the XX end million of portfolio quarter, consisted feet of our properties totaling XX

Our and our say happy be the tenants paying operate properties to XXX% in XX continue XXX% be continue distinct occupied. to sectors, tenants to I'm

Fargo, Wells Walmart. General, Dollar include At tenants Lobby, top Hobby Walgreens, Home, Vacations, Hilton and Our Grand

capital forward gone moving to anticipate sales the two adjusted redeployment the later will of in strategic where marketing and into prospects other And forward through capital As year. say we quality of activity assets, we the our work look to XXX% we've second I'm office with Part anticipated one which investment process. announced Hilton Wells that strong is our We're can we would within putting our dispositions retail. be portfolio. through prospects pleased portfolio returns our our a believe the other Fargo additional to we've also received pipeline. accretive achieve into high the improve properties office of by of continue half of or excited a with that explore properties we interest about we of evaluating the initiative the year, to our of will as an disposition properties better position risk future we funded I'm this already

prepared tenants. our we're in a platform with the our existing position I'm us We've the with has types of all portfolio market, opportunities pipeline’s seeing to member improve our volume momentum my very continued great new today. across of That's potential the coming and to pipeline, further Speaking and for acquisition continued I have remarks success. our pleased opportunities of to desks for the the addition built top-quality team team and diversity of invest in

the call to the Matt? to activities So, about guidance. talk performance in markets quarter, turn Matt updated our I'll over capital and

Matt Partridge

the collect our deferred portions repayments. rent of to quarter, for another revenues quarter were $X.X Thanks, Total contractual XXXX XX% increase of continuing second over base the a the meaningful collecting the terrific including XXX% John. COVID-XX Operationally, of second General by million, expenses, administrative rents, we last and second continuing had management to than which CTO to of XXXX, include external manager, and XXXX. Growth, compared quarter our XX.X% of more to of trend year-over-year our quarter points improving XXX the decreased basis Realty scale. fees organizational

or $X.X when XXX% For compared XXXX. AFFO in FFO of of operations share from were the share. XXXX, to quarter or second per the funds per quarter the second funds million were $X.X and from growth respectively XX% and operations per $X.XX adjusted and second share of million were XXXX quarter $X.XX

was impacted by $XXX,XXX the to from second mentioned agreements. quarter Our of deferrals the approximately previously repayment the positively AFFO in deferral related rent

XXXX. agreement tenant we one the second related forward, agreed Going remaining scheduled to per XXXX. per six to was the growth have prepayments the AFFO These are $X.XX share, and when representing XX% FFO compared to pandemic. of Year-to-date, of $X.XX COVID-XX be months approximately quarter to per anticipated and rent year-over-year under deferral was share, payments share of previously first $XX,XXX quarter through making XXX%, per respectively,

approximately payout share to on FFO $X.XX quarter March cash of This an share on of AFFO dividend XXXX, XX% and of per the annualized For of company X%. a paid per of XX. ratio and stockholders record per quarterly XX represents the June yield a XX% of share, of second

company than and XX% two of a quarters of FFO of quarter its XXXX, year-to-date since ratio Our dividend by first and of XXXX increased in per marks share the more quarter paid a late dividends increase first These Year-to-date, over dividend fourth share cash $X.XX second AFFO the XX% in quarterly through IPO payout share. XXXX, represent X% dividend. company the the has cash per dividends. per our

As yesterday's quarters concurrent we XXXX We a with of the quarter instead quarter. its cash the quarterly press quarterly announcing for common the its of release, stock quarterly stock practice dividend noted common and for future each second third is of anticipate month in in our respective declaring dividend cash revising company earnings.

a active rate. markets. initial revolving at longer debt capital, loan, loan five new million facility, term of unsecured first our unsecured debt to term on and the reduce addition to lock to of had -- completed profile, our interest of credit banking to attractive term the equally fixed $XX our balance extend we in We acquisition In capital quarter all capital to our rate our on bring and years new an broaden access a partner us an allowing term maturity X.XX%. The has in a rate activity,

assumed that is part As $XX a from mortgage fixed of by X.XX%. subject of Realty the properties million X to interest Growth, CTO secured rate acquisitions we a

October pre-payable the While XXXX, October is mortgage penalty of date XXXX. maturity beginning is without the in in of notice

of proceeds issuing fund of program, equity aftermarket $X.X the of used or in common we stock front, our which acquisitions we On total again a active the for net equity were XXX,XXX shares quarter. million, portion our to on ATM

at we John public exercise mentioned option Partnership net Unit of total underwriters’ follow-on since which the purchase shares of the diversified full offering As quarter. issuance common totaled included also a property, was million. XXX,XXX $XX.X the acquisition $XX.X OP of $X share $XX.XX value X of million. in which million the for OP completed transaction, The the earlier, and offering their underwritten Unit our proceeds million resulting follow-on X.X completed shares portfolio, partially total issuance the IPO, of our of first The funded stock, to per within additional Units through Operating

$XXX over is in forward $XXX.X as quarter EBITDA As powder X.X June the and XX%, sheet end million was balance approximately times. XX debt-to-pro excellent and our quarter, Net and million. was $X.X value have of dry Total cash total we cash forma in restricted at was we into while approximately was net shape. enterprise debt-to-total our debt outstanding look third million,

AFFO capital in we full account transactions FFO activities all This outlined revise our guidance markets year and yesterday's of into XXXX our and did takes press revised to-date. As release, guidance.

to equity the Our volume, number not to, the including transaction of yields, Fargo. items. of and business to Hilton Most of Grand the guidance trends each to guidance our acquisition positive disposition a or these second our and properties but assumptions related sale office limited related also assumes half of related and utilization, notably, our tenants, leased includes associated to number and stable Wells debt Vacations of a year, timing the significant

the For call $X.XX and share I'll now now year now guidance FFO back $X.XX John over share. our the remarks. for per diluted turn per diluted is XXXX, his to $X.XX to to $X.XX closing full AFFO guidance is of

John Albright

accomplished key the the offering, capital other our Matt. second a quarter of activities. transaction and increasing and number markets activity milestones in follow-on with We've acquisition Thanks,

our high-quality Our to the and maintain to strategy. that continue disciplined only perform we on our as focus execution investment of well, continues portfolio expect we

congratulate and the quarters our in team our these steps this of it I more and shareholders we'll the steps Operator? At positive to questions. the All positive in we time, up of all to company's are look accomplishments. thank on evolution incremental continued to come. open their taking for forward support want for

Operator

the And question Stevenson from with Instructions]. first Janney. comes [Operator Rob

Rob Stevenson

a of -- given negotiating? those acquisition talk Are little are contract in the assets. sort in there, for what's NOI you what's you ability expectations relatively you are office can fashion from the and quickly timing the currently about to acquisitions? John, backfill and process still those your the or bit under your pipeline, a Where with

John Albright

Rob. Thanks, Sure.

paper are So, them negotiating trading with negotiated contract; company. both One the we at it's to, or regards one, on contract whether we’re is LOI of LOI.

there. activity good So,

quarter, in we're So closing, not early perhaps on our is, quarter, third expectation rush. a fourth

execution. shakes want out gearing of best the buyer buyer, execution it with us or the we best for so basically, -- towards almost the kind the And

So, has not built the strong. to a pipeline for I of trying fair just regards is rush forward. can going as mean, replace pipeline then, very we you pipeline that to them. assets, amount in to those quarter, did really the activity and And with see the the

Rob Stevenson

have dilution reliably a should like that the we of And how for accretion of looks guys cap you about been rate retail for dollar What -- trading assets. standpoint that be retail plus dollar X% value it thinking on value doing assets office from assets?

John Albright

Yes.

as as So, we acquire. it of combination will a IGE far where and non-IGE be

accretive. be basically IGE then probably will be of top and obviously or dilutive. type then, non-IGE And would so slightly on be assets And

hopefully So of through that then, won't But or well. of very friction us the to too that the painful. And allows that is -- hopefully be get strong very think we're much at -- got will properties acquisitions transition kind we'll on be pricing we’re the make and to very that that we all. manage we

Rob Stevenson

where, you it's to, price Unit given Okay. thinking? want stock And thinking are something that you that OP are know, get deal specifics do about I paper then the price if deals, that guys likely from did, you into sort Is is? mean, of that where tax going stock just you at or a are you is? stuff? but you I how don't additional how to, about where the the it, to OP trading you if bit short-term lockups the normal there's little a currency? the Unit premium that the for be plus Are to beyond nature thinking pricing about minus deferral How for of

John Albright

Yes, obviously cost so deal didn't was as we Unit and nature did of than we offering the it. much higher follow-on the the OP did have as where

very And so accretive offering. that was a on versus follow

take the deal with forever. works So, as built some deal, that to to that and a developers yes, instead as us a we're did issuance and for offer The they property price. something transactions basically to forward will for -- And Unit we them pleased where the with to OP partnership. expect they're open transaction a partners go higher have price, stock in between out a sell actually, to looking for deals the OP we'll on talk we -- can partner we OP they obviously going with price certainly, And stock want where team stock keep forward, we're more who that hold and Unit is them, we're into not want we of was stock a seller Units as line that here, to because has to any the do it way rolling can kind go if going to very But with. looking portfolios to with be on of another this there's have to sell be as you far a working, that which great really if wanted great if down portfolio and they us, that. they will, PINE do hoping we're other split us solution and for, with up it, think last I and

life. So, great gun it's we're excited our we one early tool have to got and a in that on

Rob Stevenson

assets and year? acquire then likely to Okay. that are assets And in there any PINE this any -- is CTO additional

John Albright

are well as but has. not there's splitting assets do Alpine, fit that work year some This may of happen. that as CTO could for some them far very centers There out to

And this wouldn't so I expect happen that to year.

Rob Stevenson

in to Matt, earnings me. for reason out any the dividend than of timing it one last other then for crowded change period? And Okay. move a

Matt Partridge

get the That's standard, more payment only reason, which with we wanted to in line is industry to really just the closer date.

we're So, one absolutely no change yet. in dividend policy. declaring not Obviously,

So, a will I can't what QX dividend purely speak to be, but issue. it's timing the is

Operator

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

Michael Gorman

about I certainly side a lot John, think pipeline. million the and guidance you're on a the thinking well targets and about are I assumed on you XXX back the look acquisition the of acquisition How recall, you to that? strong positive How business about obviously, talked are put way half? previously of thinking to about at If the I there. you mean, plenty full-year of capital as obviously work. you traction

John Albright

certainly has the it, assets. we built about think with pipeline only transactions the mean, than in less in about additional led the discussions that’s we're completed to I -- so we're further half if And especially states. Yes, you

field so got even a we California, acquisitions. We're playing of And to us. plenty territory got of in front so do we've in large not

certainly, the in we're first basically half of went through what the now replicated And stop year. half. the up, done we take so have in pit we now -- we've it capital confident into very that field and we that can the and be the second we're And the can end

Michael Gorman

the that are to -- being still acquisition to there? range be assumptions new any conservative guidance is include clear, And you or change does Matt, just

Matt Partridge

going assumption would per similar front share, that's the it a the volume, -- on the look formal a pretty volume back give from of people. year but half we're said, is Just good I and AFFO that the half FFO to We acquisition didn't year. how should as guidance just guide of perspective

Michael Gorman

the sense beyond of what want in a at give non-strategic John, and portfolio the going Can looking them or of kind makes out move on maybe there. the just for elsewhere? capital that those assets, then disposition deploy looking one that at assets or you're office you're seeing you you And two there's to

John Albright

office about you properties? talking just about you're talking any the Maybe are particular or other

Michael Gorman

the the office beyond ones. ones No,

John Albright

certainly Well, Beyond. we selling we are open assets to if get pricing. premium

lot And so associated rate where we that the certain really that a the think credit market about can is a would cap it's sell credit where higher. with

shows our really strength estate. it So the portfolio real to regards of with the

price and And reinvest on that accretively you'll not a rationale credit so in only can accretively, we're the well. as when credit but we it, of sold announced obviously basis, would up that those drifting at that we well, rate see think better kind getting it we as a you cap so proceeds

we're So asset an market that of it's taking is a advantage really where for cap getting the the rate. thinks higher market stock premium pricing

Michael Gorman

about then for opportunities seems seeing lease pricing little John, that assets the Can kind less you talk of you you some underwrite how lease a term? some weighted and -- it there's like for you're what's in average how that there's And credit think as a just your at maybe about me. duration. maybe perspective? total, with look last just level comfort And maybe one better from bit where portfolio, strategically, you

John Albright

Yes.

very The Those we So durations. on rent lease to you comfortable to certain operations store detrimental the would retailer probably numbers. that situations we’re locations is change profitability. doing there be lot are short a The below -- is very over market. because for assets as a indicated, with strong the we're like store

regards keep talk we're time better lease retailer and extending equations, the to term lease. the until to not to afraid burning of sort kind those a down go love of we it's the So to

to very where find the we out having real all sticky knowing so to durations good finding from regards obviously are sales properties, the shorter rates into know estate, the all coming the retailer, to will, But where very we compares type the it's strong at that how the in of of it's really the higher goes where location, portfolio fundamentals, lease that cap the to comps are with where kind traffic, data looking those with a that regards with about with that's lease So, you of Placer comparable if regards with location sort locations it. alpha, tenant. best find

Operator

with question Please ahead. go comes from Golladay Wes The Baird. next

Wes Golladay

Just a deals that annual talking the and going be X%, no about on X%. had Everyone is it's question have days no escalator, CPI escalators. to these X%,

So make its way shying are people deals. where I'm that's market wondering away these if the starting from into to private

John Albright

Yes. lot Look, of across it's a lease The a almost credits credits. function have these escalations. board IGE no of the

a which between the bit it's escalations pick exposure, will which of a less of non-IGE, in you then a dance So IGE escalation. lease the up and the will little bump have

X% So, basis, not year seeing now so CPI and a on the basically forth. it's portfolio on on too right But much per dialogue portfolio.

I kind that's our But are think lease reaction of kind new of do for going leases. fixed to people still escalations to it.

Matt Partridge

Yes, get conversation when portfolio, add tenants the just our the their Wes, we would exercise bumps do the lease from duration other around thing I the option. is, of

duration, lease with shorter other than growth more So, near-term implied portfolios out there is of as some that. our result a probably maybe there

Wes Golladay

few maybe angle little was escalators. like that are read? look to the maybe I buyers the this that. appreciate moment. of, Is are showing because It people assets, They’re the maybe the you're acquire past of so CPI. willing at the credit competing a at guess IGE to on looking more focused I them just up, concerned correct sounds a I they're these against that And about

John Albright

Yes.

think right. I that's

pretty market competitive I now, right grade credit. investment especially think for is the

are I an really for impact those think So, rent don't the of having on pricing types escalations assets.

Wes Golladay

less less looking look years Parts look Got this at Auto for you it we those it. quarter, -- term lease to doing, shorter of four was will leases And than these then after How remaining. get renewal? soon some that this Advance you're like year, deals at

John Albright

concerned about the Obviously, kind that lease we market of duration. know

lease we'd too rather for negotiation deal a little run than that a get to expiration it to further So, going better early. rather closer

the dynamics, not could some feel in start tenants. for So, kind we're portfolio like portfolio and question through answer important to rush. is we going approaching it's if a the we But of

Operator

ahead. Craig The instructions]. [Operator with from Kucera B. Securities. question next comes go Riley Please

Craig Kucera

the the Most on want been out answered. my that up are was Unit finding unique to Are other transaction. have any of kind with But one-off there parties looking in party? Or that OP pipeline? take follow to a you of that OP Units

John Albright

when and But dealing a and to right portfolio holders that transaction, it's have because more one attractive. family haven't reaching want regards well plan be acquisition now some because counterparty time on out to will that a of inbound busy transaction a of transaction office off. certainly bit with we think developer. unique it that explain it's our net regarded pipeline, I We little with groups. chance lease amount we're really we had to We market out on and large our to be guess think so win-win to go to properties I we of is

saw And so communicate great they'd that transaction. I from they to the how be help think

we those and trying get So, on to more of of groups we some do speaking plan definitely one to type with to time have out that kind there, transactions.

Craig Kucera

dispositions, for Got million as you as about I think it. And X held had sale. far

office? looking beyond dispositions for the we're But be do they'll well think the sort sale course you held what's of as Of as office. meaningful for currently

John Albright

-- will we strength again, and to assets that the No, know if portfolio, of meaningful, not if opportunity the the that to the be to part comes in about happy accretively only easy demonstrate reinvest. we're market with

Operator

now like any would for John conference turn have over we session. our further to this Albright questions, remarks. closing back concludes question-and-answer As to no the I

John Albright

attending Thank much for you very the call.

Operator

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

may You disconnect. now

Alpine Income Property Trust (PINE) 23 Jul 212021 Q2 Earnings call transcript