- Earnings call transcript Q3 2022

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

Operator

Good day and thank you for standing by. Welcome to the Alpine Third Quarter 2022 Earnings Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Partridge, Chief Financial Officer. Please go ahead.

Matt Partridge

thank Property joining operating Trust call. and the today results everyone Income Alpine third morning, you us for for conference Good quarter XXXX me John and With our President, is today Albright. CEO

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

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

John Albright

and continue a Thanks, by accretive Matt We and quarter capital our balance recycling improve meaningfully executing quality to as earnings our sheet. strategy had of third solid our the de-risking good morning everyone. we

average other quarter and tenant for exit to tenants. high weighted sales X.X% reinvest our our The Year-to-date, $XX.X $XX.X of These pay quality the attractive impact properties as continue and office for worth been million a sold to our we proceeds of our and investment properties Fabric. We to leased second properties credits have X.X% debt. the lease XX Container quarter, we family XXX, through net total when diverse. of We $XXX rate carwash, average and just Store million, as cap a at and properties generate we correspondingly lease pool the work and Kohl’s, into generating Jo-Ann reduce into allowed down The remains us we strong net in gains volume recycling way quarter. private disposition or for During investment the public fourth to dispositions included REITs weighted net continue total we sold sold to individuals to the of exit million X.X%. assets X of cap sole low the over to and predominantly offices look and property market buyer scrobbles a third removing quarter. grade evaluate sold has net and attractive capital approach to spreads we the opportunistic disposition opportunities remaining plan exposure

going Of fourth have top weighted X.X%. at acquisition tenants weighted In and in leased lease General, located cap Lowe’s, investment net X.X properties trends, quarter assets with tenant weighted tenants acquired XXX average a at of X.X states. Coming of Year-to-date, investment joining including Dollar rate just Our Tree, million Goods. below our and for operating years. a Family Dollar, lease three and than remaining we during high term in we weighted average Dollar, our with grade tenants square Walgreens, million in and opportunistically in Sporting that rents in of Dollar weighted the values sectors replacement Best number acquired a XX the into properties average note, a now Lowe’s feet tenant XX is years layering list. totaling More states tenants an cap $XXX XX Buy X $X.X strong properties national within total, Family grade XX Tree, were owned the rating, Dick’s of Walmart of as over rate average X% XX% term cash cash quarter, come from credit towards Dollar exhibiting quality have operating we acquired the well-located quarter acquisitions while costs. also of in X

While the interest in of volatility approach given to our are acquisitions, lower stock as we a reinvestment, a rates judicious deterioration and require result naturally our and higher some cost price. market taking activities disposition of capital

obviously been be and has actively to While managing specific continue our maximizing company, while not on for our is focused risks. shareholders, this approach to our value will

notable position April tone As impacted the Day we holiday rates active an September communicated investment portfolio rates as we liquidity after in in first and but the and see and ourselves drift the anticipated exercise call, rates balance will rising as management. and in to third our not on opportunity performance, is market. during revised capital spreads we started quarter quarter activities We Matt to our to call our to attractive pressure turns, now to only interest as also talk cap shift earnings I a in Labor cap over believe drive began patience market between acquisitions upward We about upwards. this through have sheet dispositions guidance. turn

Matt Partridge

John. Thanks,

points while expenses our for to quarter the the than by occupied decreased general by revenues and to XXX% Our quarter than XX% collected of during XXX% prior continues base more efficiency our more revenues grew at percentage the of XXX We increased compared by year we as XXXX was well. It QX and a administrative as our reflecting period very X.X%, total growth. perform quarter. basis and of portfolio rents contractual end G&A the

existing in John of gains gains efforts evolving market, the previously been disposition sale to team’s implied able of attractiveness transact portfolio. generated to the to million. speaks our they substantial and and on totaling $XX.X a estate mentioned, have aggregate our quickly ability value real our These As the

per was per share the of quarter X and FFO first was FFO third XXXX. months when an share the per XX.X% respectively over growth and AFFO XXXX Third share, representing a to XXXX per per increase quarter of compared quarter XX.X% was quarter the increase third compared XXXX. was $X.XX representing $X.XX Year-to-date, X.X% third share, share, year-over-year representing of $X.XX XXXX AFFO of XX.X% and to $X.XX

costs our unamortized credit revolving Our $XXX,XXX prior our impacted related FFO by was negatively write-off to financing facility. of of

$XXX credit facility, to prior was which facility, to XXXX, of with our was set million prior new terminated expire included conjunction in in revolver. increase which compared million revolving $XXX our a origination a Our

of busy market. I sustainability their partners like January certain maturity in credit certain based meets as Our grid end would support rate interest banking facility if as thank pricing company new leverage component very well the the also and been of improved for and our of our the includes terms sustainability lower what new efficient performance linked financing and acknowledge date targets a covenants applicable changes to all a at pricing a reduces revolving in and execution that XXXX. has pricing margin

fixing over recently update, rate entered the portions corporate of life Additionally, our of and in loans. term into SOFR unhedged the we term as previously announced XXXX XXXX interest we swaps loans the remaining for our

efficient until interest a our have maturing As of result is new quarter to only of swaps, maintaining strides exposure strong facility earnings continue healthy to X.Xx and no to credit and we the forma We fixed free ample be date of this improve our debt total maturity driving sheet floating positive we cash liquidity value our growth Overall, our debt debt opportunistic with coverage ended to and balance. and revolving new related maintain very a continue market flow. rate XX%, X.Xx. of credit net in balance volatile EBITDA sheet make on rate and we to while to the revolving facilities’ XXXX enterprise charge have extended our net ratio we pro balance

a and share, September cash As representing annualized of dividend dividend the yield cash X.X% year-over-year the paid to current XXXX compared a on company previously $X.XXX of XX company’s announced, X.X%. a per quarter approximately increase when third QX

third cash We common fourth announcing very at XX% quarter stock quarter regular the of quarterly AFFO ratios payout Our strong dividend and for FFO XX% our towards end and respectively. November. anticipate remain the

XXXX begin we we As other balance based and and line acquisition QX the yield guidance results year, XXXX of our portfolio-wide towards cash revised $XX.X markets to in-place expectations the of of fourth rent for quarter XXXX capital the straight of million revised our have our and disposition influential curve assumptions. transactions, of a year rent million. We with account look annualized base activities, in-place the $XX.X annualized for steepening and full

assumption $X.XX meaningful X.X shares million which our the FFO between range at high Our increased end and end and guidance full end. our range end to increased the $X.XX AFFO at guidance $X.XX per high removes shares $X.XX year $X.XX $X.XX share. and lowered X was be guidance low range per and XXXX. the is was of end the and to FFO at was $X.XX projected the by at at in count average to year by the the equity increased issuance low The by XXXX share the XXXX weighted for $X.XX low at now share million a end, XXXX year full high AFFO was and

asset for reflect pass raising it end of now expectations through revised to third tightening range acquisitions brought for disposition We down I we have sales guidance to guidance, the of including John in year. account are our the for end top midpoint the will quarter and to our our John the to the earlier remarks. the our patience his back alluded results of closing

John Albright

Thanks, Matt.

the operational this us for is and been am our put to to work we we and the At Question-and-Answer as of one our Session the approach our team’s we build to of that the confident success. public As highest open consistently all long support strong shareholders. collections our as X-year I track portfolio, and we very appreciate and dividend continued the will anniversary of up with shareholders roadmap pleased have company, strong assets our I We delivered net will which we continue record of our industry. of it run a improve in enable questions. to have over the am time, outperform hard growth quality together way lease able

Operator

question Rob Montgomery you. [Operator Scott. comes first Instructions] Our Stevenson Janney with Thank from

line now Your open. is

Rob Stevenson

be you stuff guys absolute dispositions, looking given here the are environment are current still continuing how looking going talked about or at John, morning. in going pricing for but are current quarter? transaction the You thinking for look in cash you are to you transactions if how buying guys acquisitions your position? and your tight holding stuff criteria, you to meets Good to the and on be best fourth

John Albright

Thanks, Yes. Rob.

of some definitely waiting we moment So that kind And definitely we for pitch in still on wide. pursuing, are opportunities. are are we but bidding active

we get of the that the the So – the will the more year. system at pronounced think stress towards end in

we I stretching So were opportunities be are deal a that there so we’re not sure. good but for active, will make – think to

Rob Stevenson

assets, is there the note? into year back improvements Okay. this any in of any capital XXXX then of material And the half existing contemplated

John Albright

looks the are that just deal working a another much that We us retailer like more we we on have favorable old-time on. pottery piece for

year. next that, be that start So but would of kind

Rob Stevenson

you business can then talk seeing anything margins the change about And theater the you Okay. at movie there? are if

John Albright

So, only you as we know, theaters. have two

when We as right a like working in It’s site, on site. hotel on interested we in ask it about calls theater the very the the mentioned, I now theaters looks a developer many are people and have really Reno in redevelopment. fantastic

alternative the are So better uses economics should us. really which having we than produce working theater on into rather for

So do are we AMC, and buyer with spending property And out. the there. the that’s that time works if where then execute it will on interest have look we it, to some we other property,

solution will be theater that us. So for of the kind

Rob Stevenson

a theater, that the that be keep it’s done If something disposition? on would once or the is route that likely hotel one is you something to you that is go

John Albright

a we is wouldn’t to lease, portfolio. won’t be that There Likely development a a see the be in hotel you a it our disposition. be, but ground of chance form in could

Rob Stevenson

your Okay. guys given Matt, expected be one me, about of then in last at you comments dividend, And are taxable current run-rate? the earnings terms where of to the payout for

Matt Partridge

at be how the plan XXX% dividend manage and should that’s going XXXX we We to forward. really for

Rob Stevenson

Okay.

a it’s to not mean of the have if room I you increase forward not So dividend lot that’s like going right? earnings grows, that

Matt Partridge

right. That’s

XXX% of to We cash income and are trying taxable flow. manage to maximize free

Rob Stevenson

good Have Okay, thanks, the time. a weekend. guys. Appreciate

John Albright

Yes, too. you

Operator

Thank you.

from James. line the Milligan RJ question next comes Raymond with of Our

Your line open. is now

RJ Milligan

you here, Rob’s lagging on question. cautious of given guys. more are good obviously, capital. wanted your higher bit cost the John, rates I morning, But and just follow-up a Hey, cap little to

acquisitions, versus how I So, between next disposition the proceeds more over quarters? acquisitions you few if And curious allocating you think Alpine the de-lever? versus trade-off about into dispositions am think will do do now say

John Albright

Yes. Thanks.

assets, the activity assets where of sense sell that continuing think is recycling we to makes deleveraging. higher So, yielding it and form on a into

However, have, the to that on would look we some pay we non-XXXX and line. sell properties down just

So, both kind de-lever opinion non-XXXX de-levers, more will assets. some in our of on direct but be

RJ Milligan

some could a for given a just guess John, then And you am market, a of it. the more a to, recycling the Got lot sites? there having more lot the include I asset which benefit you see, am curious Alpine buyers of reboot this and small portfolio. size, of has to you but not the six, couple sold I I described there broader of sales, out enough but demand a do your that is to asking about do isn’t

John Albright

There is every time – market. on the deal more title. it’s still sure. kind transaction, so market is There right, methodically, on It’s really it of And just smaller been thing. for active just doing than because just the assets LOI is a contract everything and rather and XXXX consuming, we have a very

a dynamic So, XXXX market. the there answer is is, yes, still

something very strong apartment rate. are that sold or Florida at low-cap recent type buying five multiple our at industrial our to or of project they lease are where they using properties, and acquisitions has whether from dispositions they net low-cap a still six Some properties. have rate are sold very someone Jacksonville, lease markets net buy happened And markets –

it’s still there. broader have markets the less think answer of going it’s is but not So, I transaction kind larger as – stuff dissipating on, of the that yes,

RJ Milligan

have? My curve issue and any side, is improved of you there where clearly overall of portfolios were office the be given of credit the in headwinds last guys some curious might certainly on forward, the going macro especially sort front, the dispositions question but concerns ahead quality, the we and

John Albright

dispositions, the leaned some looking at certainly into – Yes. you Store, is, now. Container credits we I could so we of concern, obviously, there Joanne’s, some that of have the sold we mean sold that The on look, we we our and portfolio

it that just New kind the, credits weaker setting, Oceanside, it’s in New we in but have one like, was let’s in those of and of York. Some York, party say

that it we foot below versus So, and bought it, when infill and it’s market. that located knowing kind very rents, like we it’s market bought of square per low

So, else. it something into could be redeveloped

So, kind longer. there what if tenant no of strategy a was behind is that

just it. all monitoring So, an we we far, keep But that’s will keep the on on one so credits. example. good. But But eye so

RJ Milligan

you. Thank

John Albright

you. Thank

Operator

you. Thank

Our of Jones Trading. next from comes with Jason line Stewart question the

is now line Your open.

Jason Stewart

investing do guys yet, that you is any of sort Matt, and John Thanks. come distressed or to something see still? opportunities for that’s

John Albright

Yes.

it’s a too early. think I little

elevated they on rates the are costs that store We are can are growth. developing build developers are kind of longer of in the in sell. to for comfortable interest hearing and tightening, having these no tenants Because the developers stress construction new and spread banks still could they what fairly a on what

we that And of stress, if so hearing are sort you will.

risk. So, what’s worth or are they keep not the money more want either the I they be over is to to that’s developers that themselves are have going pay development to able think going to happen for to to going going expanding, going think take retailers is to something, make really, or the I to because rent, have it’s on to

getting the it seeing that So, them early helping and as zone developers it’s buy we But right far on property. for a some that having is development a too are opportunities way. as funding to now, right opportunity but to heading maybe

Jason Stewart

And what – your where underwriting probably in Yes. they and be cap exit of would could your developers today? rates, expectation what is for terms where were

John Albright

that’s they what call they think spread – thin going margin. from [ph] just sell. to I you spread can XXX a can mean from bases I what to it XXX are bases that’s originate And

Jason Stewart

Yes.

Okay. Thank you.

John Albright

you. Thank

Operator

you. Thank

Our of next Kucera from Securities. from B. comes line Riley question Craig the

is line now open. Your

Craig Kucera

think break about mentioned maybe here versus in you as earlier But, Yes. increase. in Can about, third thought And quarter back of they that and September earlier first saw saw a where in your it’s or the you maybe quarter, a October basis XX the little things you quarter cap to I second start are seeing commentary second real in did. you I the would than September. of point know a kind you in well? quarter talk John, Thanks. Good to from year, what you maybe go guys. rates year, up morning

John Albright

guess. Orlando is We ago. the And even available happy we goes then for activity, that Atlanta debt markets, incredibly it week, capital give debt a is And to transactions. it last no about incredibly was had everyone projects. some obvious Yes. of ago, about incredibly market was always positive. maybe just that prospects. pretty of over I month for regional a as in And there I month were And ICSE was the talk, Atlanta and had really by tidbit, it the interesting last you week was engaged, downer. retailers, very little will ICSE, Everyone a glum it event the lots kind development, was

it’s capital less the on more on or needed so and development. And to acquire leasing side, do the properties

that’s rates. net of really cap sort any out higher dynamics for the so So, last XX the of talk. I spreads more that’s the into XX than space, translating lease sizable on are more sure, widened pronounced the Less days just of kind say, transactions, for will kind But definitely days. on that in multitalented

in think But that sell we old that like to little good people but expect same mind. is from trajectory. bit an of soon. going and to some a still back standstill I think expects the I have So, properties don’t it there days, anytime old anyone price

do So, sell. you like there, out some they decide shadow would break and kind to at I that think have of just people transact. maybe And to price inventory that possible, point,

But is are sticking there expectations. of some well with creeping as sellers is their up as price sure. it for So, transactions less

Craig Kucera

is any moving boats or things you starting are in pretty tide? And or see sectors the particular sort to grade when debt are becoming seeing of all much still sinking the at with the grade or change mispriced you non-investment are because versus are you investment it looking it. markets, Got of where

John Albright

Yes.

the saw We out. of investor Matt are you much our REITs net investment for lease look the if are mean grade almost put much, I at not think When has our XX%. multiple as presentation investment Their looking – than ours. anymore. portfolio more are non-investment who at probably the And look other I you exposure been higher. multiples grade that where much the is much same our have and grade you

grade angle higher that’s weighting. of we that march to is the kind so investment are And continue going to

in behind yes, really And so that higher than can non-investment But have good are is it. participating moved story cap you faster assume unless we the a not there market non-investment the grade. grade the grade investment rates

Craig Kucera

the Thanks Okay. color. for

John Albright

Thank you.

Operator

you. over Thank back like showing currently am turn no And I this would of to for questions closing to further time. John Albright at End call remarks. the Q&A I

John Albright

very Appreciate it. for you much the attending call. Thank

Operator

This concludes you participation. today’s conference for your call. Thank

may disconnect. You now

Alpine Income Property Trust (PINE) 21 Oct 222022 Q3 Earnings call transcript