PINE - Earnings call 3 2023 | Alpine Income Property Trust, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Alpine Q3 2023 Earnings Conference 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.

Matthew 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

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

earnings on our over at the find most reconciliations to his SEC and John contain which hand remarks. can recent website use non-GAAP presentation, our financial we for call of reports, release alpinereit.com. I'll now measures investor You prepared

John Albright

right the million million. loan morning during $XX.X acquisitions $X.X good a and made $XX.X quarter totaled and the million net investments of quarter in, everyone. investment. Matt up million, totaled lease Thanks Jumping $XX.X during Dispositions

basis quarterly X.X%, second rate XX% This reset activity in highest mortgage Chandler, property. order in post to cap the on XX our was and The investment Contributing to points our acquisition yield yield our the for During rate in cap is above roll Arizona. our the the meaningfully average. The The we volume in history historical is term than rolled prior is property quarter company's which more the acquisition cap including rent was on first of first to set its of acquisition XX-acre that down purchase Wawa, development purchased X net our we negotiated at project outside X%. loan outparcels, have quarter originated PINE. development is rate loan lease includes down the the Kohl's to was rent tenant, a parcel. anchor our investment the extend XXXX. The in on The dispositions Indianapolis acquisitions of during our exit multifamily the and as is was X.X%. cash initial the is X.X% cap a QX quarter, our rate on our outsized

secured an $X.X entire has land assemblage, development year outstanding initial financing. While of fees of X, origination in the X.XX% year increased of as is are our single-tenant term the and X.X% an loan balance our of we for by yield The rate loan in loan million. part of from end the was the years, X proceeds parcels. The of a the X, quarter received

a an our call, be properties opportunities. yields we while strong we sponsorship component investment As to these to These mortgage with discussed investments at our do return. longer-term attractive strategy, in are on see investments first going high-quality as they but tenants opportunity view risk-adjusted last and core we outsized of provide invest minority short-term

These asset million. asset properties operators. total In to of the the which our sales our continued X during we generated non-investment-grade quarter, selling majority investment were franchise $X.X of tenants, recycling strategic leased addition program to activity, restaurant gains

publicly long-term or traded is the during Our quarter come initial roll since with we're with from of the and acquired believe Kohl's our down. The base activity yield more rating are publicly $XX quarter, transaction quarter's the [ less from we acquired XX% whose base yield. traded of adjusted on at investment-grade have while of come tenants our than yield attractive and for improved pleased as net or portfolio is basis quarterly the Overall, generating debt rents spread highest and spread with twice basis average rents our quality properties on million investment difference invested investments XXXX. between risk-adjusted X.X% our the XXX returns. Year-to-date, the we the this we've points XXX tenants third when basis a points which sold is XX% points that XXX ]. credit

is first XX of of who traded either sold portfolio's properties and tenants, tenants publicly rated. comes publicly XX Today, the debt debt or our the million occupied our we've traded million. by whose generating sold investment-grade rent of gains months is $XXX or of not are X of rated during XX% for $X.X publicly XX XX% publicly base properties were have year, sales from Additionally, that not are the tenants rated. of

operators Family did Depot. the From operator, become Dollar, a portfolio liquidation store industry-leading and Valero during such as the second includes as Buy, Walmart, quarter, top X Dollar bankruptcy which Dick's remain General, perspective, and from Home Lowe's, have of Goods, Hobby Best vacant Our Walgreens, notable we Sporting unchanged properties subsequent tenants the result Tree, Dollar Mountain convenience management branded a Express. of quarter Lobby

coming our during buy our pricing well stock on believe continue accretive We'll we the long putting our transaction months X% size proceeds. And at fourth in us revised this by as believe and reinvesting entire modest are be below our to operating in what we be as buyback trading lost we our as quarter of at bankruptcy to million quarter activity active back in in issue finally, operating is largely what third are results nearly the to rate the contained the but bankruptcy all of the this the and of quarter context the trades should These the and marginal is for and implied discount nevertheless, be selling anticipate million and near properties meaningful underlying guidance. The portfolio third as and the contributing impact our a rent value as factors to to stock the common our of value. behind stock as book projected resulting our timing borrowing program portfolio, properties relatively did due costs an $X cap we rents small well increase platform. to are our $XX

over quarterly the call discuss to guidance. our turn I'll balance Matt to and results, sheet revised Now

Matthew Partridge

John. Thanks,

bankruptcy, XXX of in the and but of made investment-grade was feet have mentioned, publicly publicly states. Occupancy As totaling of continue consisted to within John of result XX Express tenants million mix a our down remain sectors which majority top generally ratings of and operating the be properties are of industry-leading and as X.X occupied traded. quarter, tenants square the unchanged well-diversified end ticked up Mountain rated XX the portfolio or our of with as operators, credit XX%

representing per over of the third quarter per third XXXX. XXXX $X.XX X.X% third quarter the share, Third representing of FFO XXXX a XXXX decrease X.X% quarter quarter and was compared $X.XX share, to was decrease a AFFO

in cash Our results timing rates. These expense regular and dispositions the of our benefits program, by and incrementally attractive and negatively were increased quarterly impacted repurchase from from program. our restricted count and nonperforming partially investment recycling the from interest year-over-year income issues, increases portfolio, net higher balance from of offset by an share rent asset interest were cash items on within interest sheet increases spreads the lower tenant investments owned share resulting

our management the expenses million, million Our which general included $X.X administrative for quarter totaled manager. external to the fee $X.X and

was by largely our Our fee past current fee run The for to by management driven percentage or the G&A as XX.X% in down rate quarter annual quarter G&A XX% is second of increases total XX of XXXX. the and year-over-year, equity $X.X new issuances before repurchases driven over markets net in months. revenues activities third any a from the increased XX.X%, the equity assumed capital the million, management

first impairment the impairment the bankruptcy, as took disposition gain during of quarter and largely million was the was AFFO a per $X.XX FFO $X.X on share we result per part sale. per and quarter. by approximately during AFFO representing XX% a the of share the FFO when The X decreases to $X.X Both for of items $X.XX compared properties calculation. Year-to-date, for assets months X adjusted offset are XXXX. Express share, Mountain subsequently as classified of As million held of year-over-year our and the was

a share, yield current announced, dividend per representing cash approximately $X.XXX third of company paid previously As X.X%. a quarter annualized of the

respectively. We the at and regular announcing stock for of XX% FFO and quarter quarter XX%, end common third remained ratios cash well dividend AFFO fourth the our payout during covered November. anticipate Our quarterly

average quarter with for stock to times. pro a of and of debt to forma ratio during of we per shares strong a $XX.XX repurchase total total of We XX%, charge of average net program. a X.X active million over coverage total price our cost the net XXX,XXX purchasing John we for stock at the of $X.X shares of of $XX common per previously repurchased over Board our million have $XX.XX ended common maintain debt our We're on continue we share fixed referenced, enterprise at approved $X.X an share. quarter value As share. Year-to-date, were million to XXX,XXX X.Xx, cost of an EBITDA price

through straight-line no approximately no undrawn balance floating maturities portfolio-wide And began restricted and with liquidity the debt cash-based of until place, quarter more transition exposure, Our XXXX has of end was quarter and into we cash total finally, revolver the cash, million. commitments than $XXX sheet quarter fourth as XXXX, and $XX.X we rate interest at rents in million. annualized

third projected timing our markets performance rents guidance assumptions. Express and and updated account the capital full activities bankruptcy, for lost investments, our [ of other and have ] to quarter year various from We XXXX Mountain forecasted dispositions

The quarter our guidance and high $X.XX investment FFO $X.XX investment overall $X.XX ranges incorporate our decreased the by latter reduced to We and of XXX,XXX loan does share, expected and AFFO which fourth respectively. at end the we've our capital equity dispositions shares share was low have and share shares forecasted weighted by the XXX,XXX And average our at to activity. and increased per for full for count activities. third year markets account year and to maintained per end guidance, the quarter net $X.XX

have fourth publicly to X/X rated publicly well confident it nearly we're continue in transparency tenants up coming we through rated that, will accretive as a repurchase issue with and positioned for recycling benefits questions. nearly Combined and credit call economic for the we'll from perform now our open during strongly strategy, rents and XXXX. With of do from believe asset coming we investment-grade tenants. tenant derisked our opportunistic sheet from the to quarter, share with XX% financial rents environment of program, work portfolio any traded strong While Operator? balance we're

Operator

Jones comes [Operator with first from Erdner Instructions] Matthew question Trading. Our

Matthew Erdner

remainder you going and the but is for fits, Express to find like an acquisition year, be sellers? come the XXXX, net opportunistically somewhere expecting activity something seems or guys disposition then to Mountain maybe the of thinking net from you buyers ahead it the that to are So if

John Albright

to dependent But sure. It's markets starting hope we be, obviously, and we're interesting buyers obviously capital clearly, recycling opportunities. more dependent. to Well, net for see

a in of position to taking and continue good sell we where obviously and advantage of we're at can to properties credits so be prices purchase. And kind down

at So looking we're next we'd patiently yes, be love opportunities. a net acquirer to year. obviously, so And

Matthew Erdner

And Yes. to is that, traded. then the as rated XXX% there? follow-up it currently get to publicly eventually to XX% a Is goal or

John Albright

we think Not traded it's more access necessarily, company a that great a but publicly obviously indication private company. has to capital than a

I so point, data kind of think, good for just And a investors.

Operator

from comes question Scott. next with Our Janney Rob Stevenson Montgomery

Robert Stevenson

what's revenue tenant the monthly from impact Matt, or you bankrupt the quarterly for guys?

Matthew Partridge

related quarter estate rent. under a It's $XXX,XXX And so real forth. so taxes base for those to maintenance on obviously, little and then costs a and and there's assets carrying

you the expect, the end So we'll before that can what exit though, year. I think is those hopefully of

Robert Stevenson

XX Kohl's, the I allure was quarter? least there that opportunities months operational on longer-term had the point a or given out lease them otherwise for issues, at then, during tenant even stocks at John, from non-investment-grade having you were why there this the What's ago. X/X what And of Okay. it mean,

John Albright

very -- price infill Chandler, rent roll location, appropriately down. a with Arizona, amazing rent

strong building very there all where, market a in going demographics a fabrication chip just plants got you see these crazy as there. and are you So manufacturers

infill So very location.

this, cost build can't You it basis. the for

of I something plenty think subdivided for a or box [ the takers so ] them, box. And if to happens be there'll

Robert Stevenson

where guys is Are stuff more Okay. more That's to likely and debt? the there that given acquisitions back are are helpful. about versus me. stock, to thinking fourth well, up quarter quarter, close for And more 'XX? one How guidance? teed something as capital dispositions the the last fourth you How buy then relative reduce in in you out deployment into

John Albright

all assets of the process we bit opportunities above. interesting we're the at looking in stock, have we and think of opportunistically. recycle. buying to little investment a some So Obviously, on selling and the market We're

So super all active we're fronts. on

Operator

Wesley question next Baird. from Our comes Golladay with

Wesley Golladay

the point basis versus do comment what spread maybe assets have XXX Question you of on sense going buying the you're forward? looking the can forward, of you of spread. on kind And rate Maybe get can selling? a growth then you

John Albright

there's I that of come properties say would a much maybe know I whether properties where sell you're there, definitely also mean some selling fruition. the to flatter not versus I upgrading interesting there's we don't what buy. Yes. but non-investment-grade of There's they'll can we and investment-grade what spread can portfolio. some opportunities spread as buying trade

definitely So that little of a it's -- combination bit opportunity a are kind some bit of some some spread a there and is then little where neutral.

Matthew Partridge

there the but about growth. there has of then not has what we're this on market we or be rent Yes. half growth, might at be because bought may a that a be the the on in I existing options. it increases. time increases investment term, And year have what buying would if may Kohl's rent not lease buy roll should right, but specific on contractual contractual the going down, the that it It's lease, shorter-term growth notwithstanding. it, available to is say Wes, if And it's depending on the Obviously, we

Wesley Golladay

on can liquidation list Fantastic. of year. with it could comment a probably back this And like have been it your Okay. then then And and the at your you wouldn't you base of You [ watch pared now? bankruptcy, start what maybe some happened the tenants? definitely your comment case on looks smaller ]

John Albright

just and basically discuss I'll the Mountain liquidation of general, company. has sold. equity the but on to to a standoff equity decided the kind teed the -- of the company, some between that let liquidate up is There Express Matt private in be was lenders in private that,

So a parties interested change, these that that have kind that come followed process to we've in of but multiple had had us startling properties.

So actively sold. on discussion in we're those getting

an active been the let over watch sale On starting I'll the But Matt be of year little ago that bit lot and we've a very Wes, could continuing we're on process you list, and clearly, granular. that credits a as know, focusing discuss on issue, process. a more

Matthew Partridge

Yes.

you in get quarter, restaurant to to it if investing that, referenced John franchise on or look XXX% at on of sold focused we comes a expand what that we're while we rated that its have in their to when -- trying where financials. to Just lot earlier, the that publicly third clear operators tenants are traded publicly route not transparency

us opportunistically And so a to are portfolio, the market tenants appropriate there our pricing. amount, other look if small exit within that gives we'll

Wesley Golladay

the next It pricing on final looks Matt, at then And did expense start Okay. you year. of the one at you, to just balance one for like grid interest the balance Do for of be pop year? sheet. expect lower the the

Matthew Partridge

Yes.

a how we're So leverage year-end. we'll is spread goal -- reduce back to through materialize that into all a the we -- the on point our by our end of of the see to lower debt on slide but dispositions year,

Operator

Milligan with Our from R.J. next question Raymond comes James.

R.J. Milligan

how quarter Two modeling just I quarter in Matt, curious a I'm quick you follow-ups. said tenant for you think purposes? third the got $XXX,XXX for bankruptcy. much the

Matthew Partridge

the third it of most got quarter. we in purposes, modeling For

R.J. Milligan

roll Okay. in effective what's rate cap acquisitions down, the And then the quarter? with on the the Kohl's

Matthew Partridge

cap is roll X.X% the happens a once rate. effective cash cap rate The down Yes.

R.J. Milligan

just broadly, trended? given Okay. buyer report first of and the seeing what And then, and some you competitive just John, guys that pool there to of you where then here net I'm you're seeing opportunities commentary. mentioned out provide capital more cost terms you in the lease more curious, pricing out just the there, are but has are REIT

John Albright

the would Yes. standoff sellers. buyers tepid I in the -- market's and that, say between there's still very

more coming and looking trying heard sure. we've happening clearly properties see is so situations to not there. patient So transactions people out that market We the there's But kind there. of only looking going lot of to to where that to on sell, about be for think of for people we're what are need a be kind liquidity

right is And of super the [indiscernible] it's when another obviously across so to kind now. we're interesting see hope, debt creating factor opportunities to that, the with not market river. some that we the some We're but challenged, super be and seeing going in waiting of

R.J. Milligan

widened.or Are are non-investment What seeing... a grade that versus rates tightened? spread grade? seeing you from difference Has cap you meaningful in investment

John Albright

everyone wants Yes, for grade the definitely, via investment sure.

grade not it's widened so the investment non-investment the moved. bit. grade certainly has And is moving, a Yes, quite

Operator

conference Thank Thank this call. for today's participating. And concludes you you.

You may now disconnect.

Alpine Income Property Trust (PINE) 20 Oct 232023 Q3 Earnings call transcript