Breaking Down Alpine Income Property Trust, Inc. (PINE) Financial Health: Key Insights for Investors

Are you looking to diversify your investment portfolio with real estate? Have you considered the financial health of Alpine Income Property Trust (NYSE: PINE)? As of April 2025, PINE has been making strategic moves, including first quarter 2025 investment activity totaling $79.2 million in acquisitions and structured investments with a weighted average initial investment yield of 9.0%. But what does this mean for investors like you? In the first quarter of 2025, the company repurchased 273,825 shares of common stock at a weighted average gross price of $16.33 per share, for a total cost of $4.5 million. Keep reading to delve deeper into PINE's financial metrics, balance sheet updates, and strategic decisions, empowering you to make well-informed investment choices.

Alpine Income Property Trust, Inc. (PINE) Revenue Analysis

Alpine Income Property Trust, Inc. (PINE) operates as a real estate investment trust (REIT) primarily focused on owning and operating a portfolio of single-tenant net leased commercial properties. These properties are typically leased to high-credit-quality tenants operating in sectors such as retail, office, and industrial. The company generates revenue primarily through rental income received from these properties.

Analyzing Alpine Income Property Trust, Inc.'s (PINE) revenue streams involves looking at several key factors that drive their financial performance. These include the types of properties they own, the creditworthiness and industries of their tenants, and the geographic locations of their properties. Understanding these elements provides insight into the stability and growth potential of their rental income.

Here's a breakdown of what to consider when evaluating Alpine Income Property Trust, Inc.'s (PINE) revenue:

• Primary Revenue Sources: Rental income forms the backbone of Alpine Income Property Trust, Inc.'s (PINE) revenue. These revenues are derived from leasing commercial properties to a diverse range of tenants under long-term net leases.
• Tenant Mix: The stability of Alpine Income Property Trust, Inc.'s (PINE) income is closely tied to the financial health and reliability of its tenants. A diversified tenant base across various industries can mitigate risks associated with economic downturns in specific sectors.
• Property Portfolio: The types of properties in Alpine Income Property Trust, Inc.'s (PINE) portfolio (retail, office, industrial) influence revenue stability and growth. Each property type carries different risk and return profiles, impacting overall revenue generation.
• Geographic Diversification: The geographical spread of properties helps to balance regional economic risks. Concentrating properties in booming areas can boost revenue, while diversification protects against regional downturns.

For the fiscal year 2024, Alpine Income Property Trust, Inc. (PINE) reported a total revenue of $54.9 million. This figure reflects the income generated from its portfolio of net leased properties. To gain a deeper understanding, let's examine the year-over-year revenue growth:

Alpine Income Property Trust, Inc. (PINE) experienced significant revenue growth over the past few years. In 2022, the company's revenue stood at $42.3 million, which then increased to $52.2 million in 2023. This represents a year-over-year growth rate of approximately 23.4%. Continuing this upward trajectory, the revenue for 2024 reached $54.9 million, marking a further increase of about 5.2% compared to the previous year. This growth can be attributed to strategic acquisitions and effective management of their property portfolio. Let's illustrate this with a table:

Alpine Income Property Trust, Inc. (PINE) focuses on single-tenant net leased properties. This means the tenants are responsible for property taxes, insurance, and maintenance, reducing Alpine Income Property Trust, Inc.'s (PINE) operating expenses and contributing to a stable revenue stream. The revenue is almost entirely derived from rental income.

No significant changes in revenue streams were noted in 2024, with rental income remaining the primary source. However, the growth rate slowed down to 5.2% in 2024 compared to 23.4% in the previous year. This could be attributed to market conditions, the pace of acquisitions, or other strategic factors. Monitoring these trends is crucial for investors.

To gain more insights into the investors of Alpine Income Property Trust, Inc. (PINE), check out this link: Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who’s Buying and Why?

Alpine Income Property Trust, Inc. (PINE) Profitability Metrics

Understanding the profitability of Alpine Income Property Trust, Inc. (PINE) requires a detailed look into its gross profit, operating profit, and net profit margins. These metrics reveal how efficiently PINE generates profit from its revenue and manages its operational costs. Analyzing these figures over time provides insights into the company's financial health and its ability to sustain and grow its earnings.

Here's an overview of key profitability metrics:

• Gross Profit: As of December 31, 2023, Alpine Income Property Trust reported total revenue of $48.2 million and total expenses of $44.1 million.
• Net Income: The net income attributable to common stockholders was approximately $3.4 million.

To provide a clearer picture, let's delve into the specifics using available data:

While precise margin figures require additional calculations based on comprehensive financial statements, we can infer insights from available data. For instance, a review of Q3 2023 results indicates:

• Revenue: Total revenue increased to $12.3 million.
• Net Income: Net income attributable to common stockholders was approximately $0.8 million, or $0.03 per share.

Comparing PINE's profitability ratios with industry averages helps contextualize its performance. Real Estate Investment Trusts (REITs) have varied profitability profiles depending on their specific market segments (e.g., retail, industrial, residential). Benchmarking against similar REITs provides a more relevant comparison.

Analysis of operational efficiency involves examining cost management and gross margin trends. Effective cost management directly impacts profitability. For example, strategies to reduce operating expenses or increase rental income can improve profit margins.

Here's a look at the quarterly operational highlights:

• Occupancy Rate: The portfolio was 96.4% leased.
• Rent Collection: The company collected 100% of contractual rent.
• Lease Extensions: PINE successfully extended leases, increasing the weighted average lease term of the portfolio to 7.6 years.

The following table provides a snapshot of Alpine Income Property Trust, Inc.'s financial performance metrics for a specific period:

For additional insights, refer to: Breaking Down Alpine Income Property Trust, Inc. (PINE) Financial Health: Key Insights for Investors

Alpine Income Property Trust, Inc. (PINE) Debt vs. Equity Structure

Understanding how Alpine Income Property Trust, Inc. (PINE) manages its debt and equity is crucial for investors. This insight provides a clearer picture of the company’s financial strategy and risk profile. Let's delve into the specifics of PINE's debt levels, ratios, and financing activities.

As of December 31, 2024, Alpine Income Property Trust, Inc. had total debt outstanding of approximately $309.7 million. This includes both:

• $298.2 million outstanding on its senior unsecured credit facility
• $11.5 million in mortgage debt

The senior unsecured credit facility consists of a $250 million revolving line of credit and a $75 million term loan. It's worth noting that during 2024, Alpine Income Property Trust, Inc. increased the capacity of its revolving line of credit from $225 million to $250 million, demonstrating proactive management of its capital resources.

Analyzing the debt-to-equity ratio offers insight into the extent to which a company is using debt to finance its assets. As of the end of 2024, Alpine Income Property Trust, Inc.'s debt-to-equity ratio can be derived from its total debt of $309.7 million and total equity of $299.2 million, resulting in a ratio of approximately 1.04. This indicates that the company's debt is roughly equivalent to its equity. When evaluating this ratio, it's essential to consider industry standards and peer performance to gauge whether PINE's leverage is appropriate for its business model and risk appetite.

Recent financial activities provide additional context. For instance, the company's efforts to manage its debt are reflected in its:

• Amended and restated credit agreement, which increased the revolving line of credit to $250 million.
• Outstanding balance of $298.2 million on the credit facility as of December 31, 2024.

Balancing debt and equity is a strategic decision. While debt can provide leverage and potentially enhance returns, it also introduces financial risk. Equity, on the other hand, can provide a stable capital base but may dilute existing shareholders' ownership. Alpine Income Property Trust, Inc.'s approach involves utilizing its credit facility for acquisitions and other corporate purposes, while also maintaining a focus on managing its leverage ratios. The company’s ability to strategically manage its debt levels is vital for sustaining long-term growth and stability.

For more information about Alpine Income Property Trust, Inc. (PINE) and its investors, check out this profile: Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who’s Buying and Why?

Alpine Income Property Trust, Inc. (PINE) Liquidity and Solvency

When evaluating Alpine Income Property Trust, Inc. (PINE), understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term liabilities. Let's delve into key financial metrics to assess PINE's financial health. For further insights into the investor profile, see: Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who’s Buying and Why?

Analyzing PINE's liquidity involves examining its current and quick ratios. These ratios provide a snapshot of the company's ability to cover its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative measure. For the fiscal year 2024, a healthy current and quick ratio would indicate that PINE possesses sufficient liquid assets to meet its short-term obligations.

Working capital trends offer additional insights into PINE's liquidity management. Working capital is the difference between a company's current assets and current liabilities. Monitoring the changes in working capital over time can reveal whether the company is efficiently managing its short-term resources. An increasing working capital balance generally suggests improved liquidity, while a decreasing balance may signal potential challenges.

Cash flow statements are essential for understanding PINE's liquidity position. The cash flow statement categorizes cash flows into three main activities: operating, investing, and financing. Analyzing the trends in each category can provide valuable information about the company's cash generation and usage.

• Operating Cash Flow: This reflects the cash generated from PINE's core business operations. A positive and consistent operating cash flow indicates that the company is generating sufficient cash from its properties to cover its expenses and obligations.
• Investing Cash Flow: This includes cash flows related to the purchase and sale of long-term assets, such as properties. Monitoring investing cash flow can reveal PINE's investment strategy and its impact on liquidity.
• Financing Cash Flow: This involves cash flows related to debt, equity, and dividends. Analyzing financing cash flow can provide insights into how PINE is funding its operations and managing its capital structure.

Potential liquidity concerns or strengths can be identified by examining these cash flow trends. For example, a significant increase in debt financing may raise concerns about PINE's ability to meet its debt obligations, while strong operating cash flow could indicate a solid liquidity position.

Below is a sample table illustrating how key liquidity ratios might be presented (Note: Actual values for 2024 would be inserted here):

Alpine Income Property Trust, Inc. (PINE) Valuation Analysis

Determining whether Alpine Income Property Trust, Inc. (PINE) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. Here's a breakdown to provide a comprehensive view:

Price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios

• P/E Ratio: As of January 2025, Alpine Income Property Trust has a Price/Earnings (Normalized) ratio of 256.31. A high P/E ratio suggests that the stock might be overvalued compared to its earnings. Compared to its peers, Alpine Income Property Trust's P/E ratio is higher than the peer average of 37.3x. Additionally, compared to the Global REITs industry average of 17.2x, PINE's P/E ratio suggests it may be overvalued.
• Forward P/E: The Forward P/E 1 Yr is 9.47.
• P/B Ratio: The Price/Book Value is 0.96.

Stock price trends over the last 12 months (or longer)

• 52 Week High/Low: The 52 Week High is $19.42 and the 52 Week Low is $14.325.
• 1-Year Return: PINE shows a 20.80% 1-Year Return, outperforming the S&P 500's 5.19%.

Dividend yield and payout ratios (if applicable)

• Annual Dividend: PINE pays an annual dividend of $1.12 per share.
• Dividend Yield: The current dividend yield for Alpine Income Property Trust as of January 24, 2025 is 6.83%. As of March 16, 2025, the Dividend Yield % of Alpineome Property Trust is 6.93%.
• Payout Ratio: Alpine Income Property Trust's Dividend Payout Ratio for the months ended in December 2024 was 13.33. However, another source indicates a payout ratio of 740%, which is considered unsustainable because PINE's past year earnings per share was $0.15, and their annual dividend per share is $1.12. GuruFocus data indicates a dividend payout ratio of 28.46, which seems too high.

Analyst consensus on stock valuation (buy, hold, or sell)

• Analyst Rating: The analyst rating consensus is a Strong Buy.
• Average Price Target: The average price target for Alpine Income Property Trust Inc in the past 3 months is $19.63. Based on 6 Wall Street analysts offering 12 month price targets for Alpine Income Property Trust Inc in the last 3 months. The average price target is $19.63 with a high forecast of $22.00 and a low forecast of $17.00.

For more insights into the company's values, see Mission Statement, Vision, & Core Values of Alpine Income Property Trust, Inc. (PINE).

Alpine Income Property Trust, Inc. (PINE) Risk Factors

Understanding the risks associated with Alpine Income Property Trust, Inc. (PINE) is crucial for investors. These risks can be categorized into internal and external factors that may impact the company's financial health. Here's an overview of some key risk areas:

Overview of Internal and External Risks:

Several factors can influence Alpine Income Property Trust's financial stability. These include:

• Industry Competition: The REIT sector is competitive, with numerous companies vying for similar investment opportunities.
• Regulatory Changes: Changes in tax policies or zoning regulations can significantly affect REITs. For example, REITs are subject to specific tax regulations, such as the requirement to distribute a minimum of 90% of their taxable income as dividends. As of 2024, Alpine Income Property Trust distributed 92.3%.
• Market Conditions: Economic downturns, changes in interest rates, and fluctuations in commercial real estate values can all pose risks.

Discussion of Operational, Financial, or Strategic Risks:

Recent earnings reports and filings highlight several operational and financial risks:

• Tenant Concentration: While Alpine Income Property Trust (PINE) has been actively managing its portfolio, risks associated with tenant concentration remain.
• Lease Renewals: The company faces risks related to lease renewals, particularly with shorter lease terms on new acquisitions. For instance, year-to-date 2024 acquisitions had relatively short lease terms, which might pose renewal risks.
• Leverage: Alpine Income Property Trust (PINE) carries higher leverage than a typical REIT. While the company has made efforts to reduce this ratio, it remains a point of concern.
• External Management: Being externally managed by CTO Realty Growth (CTO) introduces potential conflicts of interest and management fees. PINE pays CTO a quarterly management fee of 0.375%.

Mitigation Strategies or Plans:

Alpine Income Property Trust (PINE) has implemented several strategies to mitigate these risks:

• Portfolio Diversification: The company actively manages its portfolio by acquiring properties leased to nationally recognized tenants and strategically selling non-core assets. In 2024, Alpine Income Property Trust (PINE) invested over half of its market capitalization in high-quality properties and investments located in strong markets.
• Strategic Acquisitions and Dispositions: Alpine Income Property Trust (PINE) focuses on acquiring properties with strong tenants and favorable lease terms. For example, in December 2024, Alpine Income Property Trust (PINE) acquired a property leased to Lowe's Home Improvement for $22.5 million.
• Interest Rate Management: The company uses interest rate swaps to fix SOFR, achieving a weighted average fixed interest rate of 3.21% plus the SOFR adjustment of 0.10% and the applicable spread on $50 million of the outstanding balance on its Revolving Credit Facility as of December 31, 2024.
• Debt Management: Alpine Income Property Trust (PINE) is focused on reducing its leverage ratio through earnings growth and strategic asset sales.

For more insights into Alpine Income Property Trust, Inc. (PINE), check out: Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who’s Buying and Why?

Alpine Income Property Trust, Inc. (PINE) Growth Opportunities

Alpine Income Property Trust, Inc. (PINE) is poised for future growth driven by several key factors. These include strategic acquisitions, market expansions, and proactive asset management. Understanding these drivers is crucial for investors evaluating the company's potential.

Key growth drivers for Alpine Income Property Trust, Inc. (PINE) include:

• Strategic Acquisitions: PINE focuses on acquiring high-quality, net-leased properties in growth-oriented markets. These acquisitions are typically single-tenant properties leased to strong creditworthy tenants.
• Market Expansions: Identifying and investing in markets with strong demographic trends and economic growth potential. This allows PINE to capitalize on areas where demand for net-leased properties is increasing.
• Proactive Asset Management: Optimizing the performance of its existing portfolio through lease renewals, property improvements, and strategic dispositions. This ensures a stable and growing income stream.

While specific future revenue growth projections and earnings estimates for Alpine Income Property Trust, Inc. (PINE) beyond 2024 require referencing updated financial analysis reports, we can analyze the strategic initiatives that may drive future growth. These include:

• Focusing on high-growth Sun Belt markets: Investing in regions experiencing significant population and job growth, which supports increased demand for commercial real estate.
• Maintaining a diversified tenant base: Reducing risk by leasing properties to tenants across various industries, ensuring stability even if one sector faces challenges.
• Actively managing the portfolio: Identifying opportunities to increase rental income and property values through strategic improvements and lease negotiations.

Alpine Income Property Trust, Inc. (PINE) possesses several competitive advantages that position it for growth:

• Experienced Management Team: A leadership team with a proven track record in net-lease investing and property management.
• Disciplined Investment Strategy: A focus on acquiring properties that meet specific criteria, such as strong tenant creditworthiness and favorable lease terms.
• Access to Capital: The ability to raise capital through various sources, enabling the company to fund acquisitions and growth initiatives.

Here's a look at some potential factors influencing Alpine Income Property Trust, Inc. (PINE)'s growth:

For more insights into Alpine Income Property Trust, Inc. (PINE)'s financial health, check out: Breaking Down Alpine Income Property Trust, Inc. (PINE) Financial Health: Key Insights for Investors