PINE - Earnings call 4 2023 | Alpine Income Property Trust, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Alpine Income Property Trust Fourth Quarter 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. Please go ahead.

Matthew Partridge

thank Property joining Full Trust's Operating Conference and the today Year everyone, Results Income Alpine Fourth Call. morning, you us for for XXXX Good Quarter and CEO President, our is today me John With Albright. and .

comments these company's statements, like matters I'd update discussed from duty under everyone of forward-looking begin, we and results no today Law. may to to considered The Before are Securities the forward-looking we future that undertake in remind statements. many these our actual Federal significantly statements differ

risks time and actual company's to detail Factors and could that results disclosed the XX-Q differ cause are expectations other from materially SEC Form in in from XX-K, Form time filings. to greater

our our You use most earnings we investor alpinereit.com. non-GAAP on SEC our and website of release financial reports, can at measures presentation, find recent reconciliations which contain

I'll over now his . John prepared remarks. for turn call to the

John Albright

morning, Matt, and Thanks, good everyone.

nearly the our program for yielding As investments. to recycling share portfolio and program . we opportunistic execution reposition derisk to quality we XXXX, into implemented liquidity the provide strong look flows years our repurchases at our back higher first emphasize credits asset value-focused allowed and in us X that ago. cash mortgage continue our we needed has This

attractive the majority returns the and in the provide first these compared activity share believe available of mortgage to opportunities market. repurchases, quarter, Within risk-adjusted fourth was the opportunities investment investments investment other our concentrated in and we

X.X%. X.X% for cash acquired on million. nearly rate yield originated and single-tenant The we quarter, of was properties acquisitions our mortgage property cap loan investments the million $X investments the our was of two During first loan net lease $XX and initial

retail secured leverage first mortgage properties. a $XX Our largest by was low investment million XX

asset the CTO's This fees sharing the fee loan, entered a In disposition manager. allows Realty CTO agreement sharing and Growth, management. conjunction share related agreement us of fee to our management receive leasing external a to with into with we

were anchored X-acre quarter Nashville, growing provide during funding investments McDonald's purchase a a and other Tennessee. million of Wawa loan the made the towards project $X.X to by first of of The the we submarket in mortgage development and

for provide strategy, loan options small overall they purchase risk-adjusted catalysts relatively a acquisition for our do as and and they partnership asset sponsors, by tenant and strong and our While investments believe our to our compelling future we base component for well-capitalized with serve opportunities we intend remain sponsors. future yield supported offer the credits of pipeline

investment we we acquisition common leased share fewer average attractive built over repurchased common quarter. of fourth during acquired core to buybacks, price On we relates reluctant at per stock sellers. finally, to Dollar And saw newly the opportunities properties $XX stock Dollar our our just the of $X.X to million Family two it due as front, an Tree, as

X.X% dividend X%, was rating, The annualized credit with simple investments above rate nearly implied that above yield our significantly of rent tenants available of stock cap cap comparable fee a repurchase an $XX pays the which share. our is market. property these considering rates and from investment-grade XX% especially comes per base at in for

X.X%. we Xst three of acquired and rate under commitments $XX mortgage properties of investments full just cash X.X% year million XX the XXXX, a For cap lease at the at [indiscernible] originated yield initial of totaling for net funding

credit in acquisitions of from with Over from acquired XX% XXXX rents rating. investment-grade come base tenants the property

generating of properties million. full side at the million the things, cap of $XXX gains weighted average rate XX we X.X%, exit during year $X.X of On sold disposition a XXXX, for

disposition basis for investment difference the points. yields XXX net year, our Overall, a and investment spread, between our which is yields averaged

recycling in and to over we're the strategy. our driving rates past XX positive access So the increases asset with capital still increase months, flow interest limited the markets even in through cash

year, in a Matt transitioning will given made X-year through to with the progress asset our are later makeup portfolio prepared on to From his we've this our recycling a highlight the outline our wanted perspective, coming strategy. anniversary specifics up But more we I of remarks. take portfolio moment

of of we've company, recycled Since noncredit nearly spreads. properties the the and office off capital inception primarily sold we've positive occupied net as million investment $XXX by and reinvested tenants assets at accretively proceeds

General, valuations. share we've Goods, tenants favorably X%, to from the to from Depot taken likes which to at rated Buy, As Dollar Hobby of XX% XX% list, better trade increased Family a by peers of result, to significantly than investment-grade top and Dollar tenant Lobby XX%, industry leaders more Dollar, includes our Walgreens, and our per and our exposure Lowe's, exposure quarterly increased dividend Sporting many Best XX% our Tree, Dicks Home compares Walmart, such as that now OpEx

share. perspective, a X% portfolio of an estate our our real significant From and to valuation rate we're on well per trading book value above currently implied cap discount $XX.XX a

and have projected loan investments a XXXX, strong over months. we opportunity XX per our deleveraging next share growth the AFFO for Additionally, natural provide

maximizing forward bluntly, our it put that we today, value great To shareholders. we're for to value and a look

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

Matthew Partridge

Thanks, John.

who of mentioned, As with XXX year, and comes our portfolio top in our now unchanged. -- or parent sectors from XX% remain tenants an states operating have our John be rent within occupied, of the rating. to as consisted of the annualized continues properties tenants and of feet X.X portfolio tenants totaling ABR million XX largely credit the or end investment-grade XX% of base The tenants XX square

the signed the months leases properties. related as do to the have or we multiple However, anticipate vacant occupancy over signing increasing in process of coming we

$X.XX decrease FFO XXXX quarter of fourth fourth AFFO representing unchanged XXXX per $X.XX XXXX a to was of the when and XXXX. quarter share, quarter over share quarter compared fourth Fourth per the was X.X%

we conference investments well and Express by the during were to impacted primarily as branded quarterly discussed that [ timing related credit third Valero onetime and of tenant properties bankruptcy, quarter the dispositions. Our attributable results ] as expenses loss most notably our to X Mountain call

cash income by and partially were cash from hedges. items interest within from net lower completed the These rate increased by interest recycling owned rent and attractive previously increases portfolio, driven year-over-year expense balance offset sheet on interest of program, effects investment restricted spreads asset regular

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

months. Our activities G&A increased markets result local higher state X.X% and the increases management of taxes the equity past our year-over-year, net driven largely to a by capital and XX over fee

The current repurchases is annual management equity any before new our or fee for million. assumed rate run issuances $X.X

of to of the per respectively, XX%, representing XXXX. and compared full share, $X.XX For was share AFFO the year-over-year when was year, year full per and $X.XX share FFO decreases per XX%

more As announced, of X% current and ] XX% per fourth and [ a share company the previously consistent paid quarter fourth a yield dividend of representing annualized XX%, quarter FFO respectively. AFFO our and ratios than at payout remained cash $X.XXX fairly

nearly $XX.X at total $XX.X cost stock million for In of per share. we for an dividend capital nearly stock at XXX,XXX be our common cash the of an markets of our million stock our repurchased shares continue towards quarter share. price regular $X.X million price program of per perspective, our repurchase announcing we're total we quarter share anticipate quarterly XXXX active of of $XX common Board of cost during We the shares purchasing to average average of an XXXX, end common on for the a first $XX.XX From equity February. XXX,XXX approved

of in the to net We complete share and And ended net million forma value did was $XX repurchase our the X.Xx the pro with January, total to charge we debt ratio remainder enterprise of EBITDA quarter coverage X.Xx. fixed program. healthy XX%, debt a of

our with stabilized press quarter portfolio's undrawn activity release In fee and quality, market John well a reflects and from expected and regarding XXXX capital, than confidence for what sharing access last debt end cash, is with in liquidity total no our $XXX sheet benefits the revolver XXXX until night, restricted initial broader increased cautious our balance and is economic in our The year-over-year the more CTO from maturities we recycling was through cash million. asset current commitments believe guidance at fee agreement referenced, transactions reasonably to environment. stance the the revenue

with income rate base a of We annualized of million. $X.X straight-line cash began and rent XXXX annualized interest investments run million base loan in-place in-place rent annualized from and portfolio-wide $XX.X

is year per $X.XX full And AFFO XXXX XXXX guidance year guidance full $X.XX to per range our share. share. Our FFO to $X.XX range $X.XX is

activity for investment our investment investments. guidance $XX loan million contingent on the $XX XXXX million additional investments, of conditions, market is include potential for Our to guidance and reasonable does

properties, $XX and points million XXXX is of approximately million assuming we spread $XX XXX yields to yield. and basis XX Our our are investment and between disposition our to net currently sell investment guidance between dispositions

repurchase the incorporate XXXX for XX.X of We our remaining million this the and call average approximately I And the finally, effects it earlier. questions. today, the does and count we forecasting million open referenced program weighted for of $XX are joining share now up to portion we'll shares, be completing appreciate everyone share

Operator

[Operator the Montgomery Instructions] from to question come Rob Janney with our first Stevenson line of Scott. is going And

Robert Stevenson

would Is the slide $XXX of dispositions you there Is on that the that acquisition million to $XXX push one to just follow something your up the comments. conversely range? down AFO notable guidance $X.XX just latter or to that Matt, the up million else range? Is between and or there?

Matthew Partridge

repayments. a to is the move Part acquisition not whether then intended is bit timing. it the get portfolio. be And liquidated loan for that component or could million $XX a Most and the specifically loan that is we Yes. disposition of around other that little where

income year. that so the be to of period And could cause reduced over the interest

Robert Stevenson

Is are be to year? looking wind all point? the latest going How stuff? some that Okay. -- that you of what some re-tenanted? sales is terms And going the of Mountain to up guys that it? Is at the Express being in this this at of

Matthew Partridge

Yes.

in leases working other three two preliminary to publicly leased two. We're term. more, We've locations. in the We're but just medium discussions number discussions the a discussions on given of then publicly we're on them tenants, on all anticipating our focus got active near we're with of in active two that of traded selling signed we're to operators. the still or in have and So on rated

Robert Stevenson

with bottom paper? of Okay. you'd a how assets majority unless be guys sold found of where you this done with when only thinking the recycling Is something guys it likely the want if this somebody still strong pretty versus take -- How you are portfolio, the is of clean forward? if you that offer. are how likely an to much at look And sheet compelling point you of the makes the going extremely is mean, was a portfolio portfolio of and there where started in versus candidates much very you I disposition a comes buy. at it is the XX% about

John Albright

Yes.

still bottom We whole monetize cap rate some barbell. selling I a the portfolio we and may into to really recycle low that have Mountain always decide cap continuing Express. part by think then off a little the and as to the it's a like of portfolio the bit of properties upgrade higher rates

So on we'll stronger. levers super two will work have we the so . of and portfolio to bottom upgrade high-quality some But the continue even to basically -- there the

Robert Stevenson

then industry one new going adding And needle tenant you guys Okay. obviously, guys forward? new you your even thinking, size, concentrations given about or industry you But guys for how moves how one thinking are the still. are and tenant

-- that you is guys of point Dollar to quarter at sort -- Is XX%? XX% disposition of would added keep lower XX% at take you people some candidate couple XX. at Do that and which lot down this about about exposure you Dollar can you up ask a a not acquiring a think Walgreens how stores? questions concentration. you below just that thinking that Walgreens, -- And that I are to stores,

John Albright

Yes.

question. So good

just and continue there the But them on we're upgrading getting and like at the we'll Walgreens not to look Walmart, and to but up way. right a difficult more list. Home but home, portfolio So exposure also rush, time. definitely not hunting We're Depots going but that lower portfolio credits it's find over the upgrading those mad higher pursue the in for ones, the it's to to Lowe's,

Robert Stevenson

your then And appetite Dollar to taking continue stores? . about What's up what that

John Albright

Yes, think you'll we're to I active not on see . us the going Dollar acquisition side. -- don't store

Robert Stevenson

a quarter? just of ones. the were two the assets What you guys then during And Okay. data sold . couple that

Matthew Partridge

a overall and I'm puzzle. minimis was the as It a is a similar Tractor drawing sorry. But and to the of I'm one, Bomgaar, blank convenience Bomgaars, property. X-tenant a be store the it one a was other on Supply branded was -- which other BP ] to piece it a was Rob, [ then used -- was de a One which sorry, Yes.

Robert Stevenson

Okay. of share if data-wise. new what that? And me, And was last size for so, repurchase Board plan? then the the a one Did reauthorized

John Albright

our announcement had We would they that had. basically in if

So things there on we'll if monitor goes reflect of change. kind kind and what of

Robert Stevenson

Have good the Appreciate a time. weekend.

Operator

to And our the Baird. Wesley next question come Golladay line is going with . of from

Wesley Golladay

Just investment guidance. would share that priority a a $XX the ] the question on Does top at for [ and the Visa buyback include buyback capital. be

Matthew Partridge

would a not investment question does to implied good $XX That buyback we're at addition activity. be and cap -- So the Wes. guidance rate. include It I an any well over obviously X% in a share, mean,

have So Board program. think about of discussion a I the we'll in a certainly potential that's something with that terms new

Wesley Golladay

the of talked . you leases Matt, what guidance have And Okay. for about just some do you from in assumed signing then, leasing curious rent and of properties? the kind

Matthew Partridge

and that's the We far it. we've two so have signed that

Wesley Golladay

we're model to guess, to the model, rent? Obviously, it build is total -- in put then then exit the guess upside a and assets. trying the need them, and but dispositions -- the in you're monetize going model build then what our the get to I Okay. we to I sell in

current the assets? the from from have the rate, much you rent on So I how run how much, re-leasing guess, upside

Matthew Partridge

Yes.

the for to this come run them, would includes away months rate We'll signed, we'll two those say, doing again. fruition, right? current the two from report obviously, assume then we've And nothing. So it, I call as now,

another provide numbers and we'll then. so then And the update update

Wesley Golladay

borrowing throughout base for last the how at the for do Okay. your that spread? What assumed does looking And impact one you then base And year? me. leverage have

Matthew Partridge

Yes.

we're to rate into there's based interest year guidance XXXX. on we forecast closer slight should to the and end spread debt So some delevering of which EBITDA, net assuming the going fit sort Xx the should

Operator

question next Matthew Trading. from our come Jones Erdner is with And going the to line of

Matthew Erdner

dispositions I be risk you of capital up what the these So adjusted X-year guess, for the And seeing I to like would that want moment? more comfortable period? they the . you at off so, of do don't amount guys a allocating strategy that Are but to getting you this you kind know pretty the acquisitions, is to some comfortable there solid if look loans provide returns. back, than this would be certain

John Albright

-- seeing be top of you're think where to I the want mean that's of the on I kind on we level loans.

loans. off pieces either the do see paying down we're or So is loan what loans you'll to really of selling new

the get don't think So any portfolio larger. loans I you're going see of to

Matthew Erdner

terms of Got to or the get are for you What the of coming you. then in guys market, of there? transaction rate sidelines? think money Fed do it kind what you really again? And you see need it thinking cuts of kind Is to off going

John Albright

we're more bit think activity see So or -- now. to I starting to starting you're a little see

to interest think cut people more. rolling I hanging been bit rate for have higher debt a the is in costs over starting on a as little bite

makes making of kind but debt just want it given costs decisions lot and really a are assets don't people sell, so they to harder sense that forth. high so about now And selling of

camp of seem . that the as on further rate far optimistic as be transaction out seeing activity the rates pretty to more you're market. as So cuts, much

Operator

question come is from the James. of next with to line R.J. Our Milligan Raymond going

R.J. Milligan

Most of asked answered. been just on my have I'm curious, questions and Walgreens. John,

exposure maybe it's credit about about a think of . in just feel can seeing general, given that specific credit rating been in industry. you to and rated terms talk we've I how what in you -- the split pharmacies

John Albright

headlines. cutting mean, credit, with at and properties we in obviously, some the Walgreens their look, off good if tenant found become you there's of new selling tenant, is management news have lot dividend company and I locations. divisions, very out locations are Yes. for and clearly, our obviously, the a even so the and they're to there another locations, good The healthier demand a going

these developer a developer prolific and can't two than a kinds was various less box who's days. with ago, of $XXX retailers of for a I you days build all

active over going to tenant spaces. you're So very -- tenant in so being see other taking

if backdrop a that I the some think demand with boxes. of tenant issues there's particular So you out lot is had there

about basis. all So it's

a our think lot basis, And portfolio, at room we trading a foot with there. the along I of got $XXX square whole

sleepless we will not for So having the we're exposure nights pruning sure. of kind Walgreens, be but over

Operator

And Truth Hau of line the our next . Anthony with comes question from Securities.

Anthony Hau

this Completely leverage you growing that balance right buying you doing close while So right? gap. leverage? gap leverage pull initiatives to the guys those like float? back valuation in what And equity XXXX, are So stock things, is numerous other the do like and right? not close between reducing all can the rewarding to you the market for year how But actions,

John Albright

Yes. I to we're discounts be look and and more these to shareholders to to really high total mean look, NAV accreting rates implied we'll massive NAV synopsis. basically clearly, cap at strong stock continues high yield, stock if because going and the trade getting dividend buy a return

trading say you do, why if you higher yield. valuation, where give we lower kind and of rate to at so would the exposure same basis cap it And at you a we're take of have to look shareholders when versus implied risk to value a kind lower trying comps, cap much know than which dividend to higher could better rate IG you higher the we're proposition

down taken more shares to proposition it there. try We'll So the market but is best then communicate the buy look and and to leverage our the has to keep value it, we'll assets not sell back neutral.

It's there. times have We've rocket and feel not out been good science. So many like this pretty we easy. through it's opportunities

just working it. through keep And kind of so we'll

Anthony Hau

not are other pretty limited, because is like ], I nets. liquidity those right, rewarding a of to compared stock feel the your triple one -- think right? investors Because why cash main of XX that's I the reasons is [ So the like actions

stock buying you keeping investors? that like do between back and like how balance liquidity for So

John Albright

at Yes. we obviously our can't what, times certain X -- mean you mean we really buyback I -- trading. problematic. mean almost sensitive. investors of million can't are can't I price the And buyback on can't And were we we certain to able I we of want basically shares everything. give as are are buyback. -- in very the basically with have -- buy know, investors programs -- volume look, percentage But with we certainly everything. days shares as we buyback

shares able million were those So we relatively X buy even with all easy. parameters, to

So just fast day, probably -- hey, you rule you're hard per kind amount just investors touch a of can basically below that, shares the if thing. they buy just have They shares. trading we certain of can't

-- but So you buy shares. can the

I mean, we've demonstrated that.

more So for on investors of proposition. the latch of sort seem which kind value the understand holding investors more value long-term of seem to to it's

Operator

from the John Riley. Massocca comes question next Our B. line with of

John Massocca

maybe should disposition just get to expecting some kind in roughly, these today? guidance that on assume investments Question I the guidance. repayment some this mean, of of repaid are kind you And what of we is of mortgage that year?

Matthew Partridge

there's John. third quarter were balance when in the a we get $XX rate question, limited loan call efficient different that really the We probably and starting into we're half interest the will fourth amount more environment. think to quarter. ramp of talking, meaningful we up back and into Good a the amount. intuited a the environment hopefully But not million so of transaction XXXX, of that related Yes. XX% repayment in over it, a

John Massocca

that that? of of maybe kind of than it down as uncertain execution does the assets or guess in And rate I that think what in that to pool? an world, terms variables view in mean, the on I is all cause about based kind that just that of can collateral selling the be could kind impact Or different Okay. we world are guidance? essentially, change external

Matthew Partridge

once pool, borrower mean the other and refinancing it's Yes, open transaction borrower. for that I a those loans, with think the deems it's appropriate. gets But pricing opportunity for environment collateral to operating, both. it's I be active the think tenant the specific development are either a more on I think loans I then where two that

it's, like at interest the So an they obviously, have efficient can transaction that where it again, the influence market or they sell appropriate an feel would on rate environment price.

John Massocca

between out. kind And a on of of maybe in at mind dispositions there balance the bigger difference any of year. guidance, then The picture kind expectation the investments in each of of kind midpoint and deploying course capital Is timing the other capital and obviously recycling? your

Matthew Partridge

assuming years. itself of certainly, balances all the mean be. We're that out will I there sort over

ahead we a Sometimes sell buy of selling. -- relatively ahead it's buying of approach. balanced but we sometimes assumes and guidance

John Massocca

Okay. the free matches swapped, revolver sheet, kind the then seems it to And amount the balance of over fair floating kind it it the loan of is little like over pool. on intermediate least assume but the bit have a at amount you the that's Is term? of kind

Matthew Partridge

Yes.

float. you redeployment we'll paying that as And down then that I are the think that's will can assume loans evaluate the market potentially in get these going repaid, floating options evaluation what to and debt. include rate

Operator

This session. for question-and-answer Thank conference you This concludes concludes participating. today's today's also call.

may You disconnect.

Alpine Income Property Trust (PINE) 9 Feb 242023 Q4 Earnings call transcript