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

You're looking for a clear signal in the noise of the net lease real estate investment trust (REIT) sector, and Alpine Income Property Trust, Inc. (PINE) presents a defintely compelling, yet complex, picture as we close out 2025. This isn't just a sleepy income stock; the company has been aggressively growing its asset base, deploying $136 million in investments through September 2025 at a strong weighted-average initial cash yield of 8.9%, which is a smart move in this rate environment. Still, while their trailing twelve-month revenue hit $57.42 million as of September 2025, the market still prices them conservatively, with a Price-to-Funds-From-Operations (P/FFO) ratio of just 8.89 as of mid-November 2025, suggesting a deep value compared to peers. Plus, the forward-looking annualized dividend rate of $1.14 per share translates to a robust forward yield of approximately 6.88%, so the question for you is whether the current valuation is a genuine opportunity or a sign of an underlying risk in their debt structure or tenant quality that the market sees, but you don't yet.

Revenue Analysis

You need to know where Alpine Income Property Trust, Inc. (PINE) is actually making its money, and the simple answer is rent. As a Real Estate Investment Trust (REIT), PINE's revenue is overwhelmingly generated from the long-term, net leases (where the tenant handles most of the operating expenses) on its portfolio of single-tenant commercial properties across the US. It's a straightforward, contractual income model.

PINE operates in two primary business segments: income properties and commercial loans and investments. The 'income properties' segment-the rent from its portfolio of 128 net leased properties in 34 states-is the engine that drives the maximum revenue. The 'commercial loans and investments' segment provides a smaller, supplemental income stream from loans typically secured by real estate.

Growth and Near-Term Revenue Trends

The company's revenue growth in 2025 is defintely a bright spot, mostly fueled by strategic acquisitions. For the trailing twelve months (TTM) ending September 30, 2025, PINE reported total revenue of $57.42 million, a solid year-over-year increase of 14.81%. Here's the quick math on quarterly performance, which shows the impact of new properties coming online:

The TTM growth rate of 14.81% is actually quite strong, outpacing the US REIT-Retail industry's growth rate of 7.54%.

Significant Revenue Stream Changes: Acquisition-Driven Growth

The main shift in the revenue stream isn't a change in what PINE does, but rather the aggressive expansion of its core business. PINE is using a capital recycling strategy-selling lower-yield assets and acquiring higher-yield ones-to drive revenue growth and portfolio quality.

Key drivers of the 2025 revenue increase include:

• Investments of $85.9 million in the first half of 2025 at a weighted average initial cash yield of 9.1%.
• Acquisition of a Sam's Club property for $15.4 million in November 2025, further increasing its presence in the high-growth state of Texas.
• The annualized in-place cash base rent, a key metric for a REIT, totaled $44.7 million as of September 30, 2025.

This focus on accretive (value-adding) acquisitions, like the Sam's Club deal, means the revenue base is expanding, but it also increases the company's debt load, which is a separate risk to monitor. For a deeper dive into the risks and opportunities, you can read the full post: Breaking Down Alpine Income Property Trust, Inc. (PINE) Financial Health: Key Insights for Investors.

Profitability Metrics

When we break down Alpine Income Property Trust, Inc. (PINE)'s profitability, the picture is a classic real estate investment trust (REIT) scenario: high top-line efficiency but significant costs below the gross profit line. For the trailing twelve months (TTM) leading into late 2025, the company reported total revenue of $57.42 million, but the net result is what matters most for investors.

The key takeaway is that while the gross margin is excellent, the operational costs and interest expenses are eating deeply into the bottom line, resulting in a net loss. You need to focus your analysis on the operational efficiency gap between the gross and operating margins.

A Deep Dive into Alpine Income Property Trust, Inc. (PINE)'s Profitability

Alpine Income Property Trust, Inc. (PINE) shows a strong performance in its core business of collecting rent, but a less favorable one once all expenses are accounted for. The TTM gross profit stands at approximately $48.6 million, reflecting the nature of net lease properties where the tenant covers most operating expenses (Cost of Revenue is low). Here's the quick math on the TTM margins, which are the closest figures we have to the 2025 fiscal year end:

• Gross Profit Margin: 83.71%
• Operating Profit Margin: 26.72%
• Net Profit Margin: -8.86%

This drop-off from gross to operating margin, and then to a negative net margin, is a defintely clear signal of where the company's financial pressures lie.

Operational Efficiency and Industry Comparison

The high gross margin of 83.71% is a strong indicator of sound asset quality and effective lease structures, especially when compared to the REIT industry average gross margin of 67.74%. This means Alpine Income Property Trust, Inc. (PINE) is highly efficient at converting rent revenue into gross profit.

However, the operating margin of 26.72% is below the industry average of 33.13%. This spread suggests that the company's internal cost management-General and Administrative (G&A) expenses, depreciation, and amortization-is higher than peers or that the cost structure is less optimized. The TTM operating income was only $9.15 million.

The net margin tells the final story. The TTM net loss of $5.09 million results in a negative net profit margin of -8.86%, which is a stark contrast to the REIT industry's average net margin of 22.79%. This negative figure is primarily driven by significant non-operating expenses, particularly interest expense on debt, which is a major headwind in the current interest rate environment.

To understand the full strategic context of these numbers, you should review the company's long-term goals: Mission Statement, Vision, & Core Values of Alpine Income Property Trust, Inc. (PINE).

Profitability Trends and Actionable Insights

The trend shows revenue growth, with Q3 2025 revenue increasing to $14.563 million from $13.480 million in Q3 2024, an increase of about 8.0% year-over-year. Still, the net income flipped from a profit of $3.080 million in Q3 2024 to a net loss of $1.310 million in Q3 2025. This shift signals that rising interest rates and increased operational costs are outpacing revenue growth and accretive acquisitions.

Here's what that means for your decision-making:

The immediate action for management is to manage the debt load or hedge against interest rate hikes more effectively, as the high cost of capital is the main reason the net margin is so far below the sector average.

Debt vs. Equity Structure

You're looking at Alpine Income Property Trust, Inc. (PINE) and wondering how they pay for their growth. It's a crucial question because a REIT's (Real Estate Investment Trust) financing mix is the engine of its returns-and its risk. The direct takeaway? Alpine Income Property Trust, Inc. leans heavily on debt, but they are also using a mix of asset sales and preferred stock to manage their capital structure.

As of the most recent reporting in late 2025, the company's financial leverage is significant. Their debt-to-equity (D/E) ratio stands at a high 1.62. For a net lease REIT, this is on the elevated side, suggesting they are using more debt relative to shareholder equity to fund their properties than some peers. This high leverage is also reflected in their Net Debt / Pro Forma Adjusted EBITDA, which was 7.7x as of September 30, 2025. That's a number to watch; it shows how many years of earnings it would take to pay off the net debt.

Here's the quick math on their current debt load. As of September 30, 2025, Alpine Income Property Trust, Inc.'s total face-value debt was $358.5 million. The good news is that their debt maturity schedule is staggered, so there's no immediate refinancing cliff. They have no debt maturities until the $100.0 million 2026 Term Loan comes due in May 2026. They've been smart about managing interest rate risk on their term loans.

• Revolving Credit Facility: $158.5 million outstanding.
• 2026 Term Loan: $100.0 million at a fixed rate of 3.80%.
• 2027 Term Loan: $100.0 million at a fixed rate of 3.75%.

The company is defintely balancing its capital sources. On the debt side, they've used interest rate swaps to fix the SOFR (Secured Overnight Financing Rate) component on their term loans, locking in rates that look favorable in the current environment. On the equity side, they recently issued $50 million in preferred stock, a hybrid security that acts like equity but pays a fixed dividend, giving them capital without diluting common shareholders as much as a new stock offering would. Plus, they are actively recycling capital, funding new investments-totaling $135.6 million year-to-date 2025-partly through asset sales of $34.3 million and loan repayments. This asset-recycling strategy is key to managing that high leverage ratio. They are also using equity to repurchase common stock, buying back 546,390 shares for $8.8 million year-to-date 2025, which enhances shareholder value. To be fair, the challenge is funding new growth without pushing that leverage number higher, especially when the stock price makes common equity issuance less appealing. You can dive deeper into who is buying the stock over at Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know how easily Alpine Income Property Trust, Inc. (PINE) can cover its short-term bills, and the numbers tell a clear story of a growth-focused Real Estate Investment Trust (REIT) managing its liquidity tightly. The company's liquidity position as of the trailing twelve months (T.T.M.) shows a current ratio of 1.22 and a quick ratio of just 0.08. This means current assets cover current liabilities, but almost all those current assets are not quick-cash items.

Here's the quick math on what that means for your investment: a current ratio (Current Assets / Current Liabilities) of 1.22 is fine-it's above the 1.0 safety line-but the quick ratio (Quick Assets / Current Liabilities) of 0.08 is defintely low. This is typical for a net lease REIT, where most current assets are non-cash items like prepaid expenses, deferred rent, and accounts receivable, not inventory. You're not looking for a high quick ratio here, but you are looking for a stable cash flow to cover the gap. The company's total liquidity, including cash and available borrowing capacity on the revolving credit facility, was a healthy $61.355 million as of September 30, 2025. That's your true near-term safety buffer.

The working capital trend analysis shows a deliberate structure. Working capital (Current Assets - Current Liabilities) is positive, but the low quick ratio means Alpine Income Property Trust, Inc. relies heavily on its operational cash flow and its credit facility to meet immediate obligations, rather than a large pile of on-hand cash. This is a capital-intensive, growth-oriented model, not a cash-hoarding one. The critical question, then, is the quality and stability of the cash flow.

Looking at the cash flow statements overview, the company's operating cash flow is strong, which is the real engine for a REIT. Adjusted Funds From Operations (AFFO), a key measure of cash available for distribution, was $20.909 million for the nine months ended September 30, 2025. This operational cash is what covers the dividend and the low quick ratio. Investing cash flow shows a significant net outflow, reflecting their growth strategy: year-to-date investments through Q3 2025 totaled $136 million, offset by dispositions of $28.2 million. They are actively recycling capital and deploying new funds.

The financing cash flow is where the investment is funded. The company had an outstanding balance of $158.5 million on its revolving credit facility as of September 30, 2025, showing a reliance on debt to fuel property acquisitions. Plus, they spent $8.8 million on share repurchases year-to-date through Q2 2025, returning capital to shareholders. This is a strategic use of capital, but it increases leverage. The risk is that if property sales slow down or interest rates rise further, the cost of this growth-by-leverage model increases.

The main potential liquidity concern isn't immediate bankruptcy-the $60.172 million in available borrowing capacity on the revolver is a solid buffer-but rather the cost of servicing their debt. The total debt is substantial at $361.44 million (T.T.M.). The strength is the high-quality tenant base, with Lowe's and Dick's Sporting Goods as top tenants, contributing to 48% of annualized base rent from investment-grade rated tenants, ensuring reliable rental income to feed that AFFO. For a deeper dive into the shareholder base driving this strategy, check out Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who's Buying and Why?

• Monitor the cost of debt service against AFFO growth.
• Watch the utilization of the revolving credit facility capacity.
• Confirm reliable rent collection from investment-grade tenants.

Valuation Analysis

You're looking to cut through the noise on Alpine Income Property Trust, Inc. (PINE) and figure out if the price you pay today makes sense. Honestly, the valuation picture is mixed, which is common for a Real Estate Investment Trust (REIT) focused on single-tenant net lease properties. The quick takeaway: analysts see a clear upside, but you need to look past the misleading trailing earnings number.

The core valuation ratios tell a story of a company priced close to its asset value but with a strong forward-looking earnings multiple. Specifically, the Price-to-Book (P/B) ratio is sitting right around 1.05, meaning the market is valuing the company almost exactly at its book value (assets minus liabilities). That's defintely not a premium valuation, suggesting the stock isn't overvalued based on its balance sheet assets.

Here's the quick math on earnings and enterprise value:

• Trailing P/E Ratio: The P/E based on the last twelve months of earnings is a negative -45.7x. This is because the company reported a net loss, so this ratio is effectively useless for comparison.
• Forward P/E Ratio: A more useful metric, the forward P/E is 9.53. This is based on expected future earnings, and it suggests the stock is reasonably priced relative to its peers in the net lease space.
• EV/EBITDA Ratio: The Enterprise Value-to-EBITDA ratio is 16.02. This is a critical metric for a REIT like PINE, as it accounts for debt and non-cash expenses (like depreciation), giving you a clearer view of the operating cash flow multiple.

When you look at the stock price trend over the last 12 months, you see a stock that has been under pressure. As of mid-November 2025, the stock price has decreased 6.89% over the past year. The 52-week trading range shows a low of $13.10 and a high of $18.24. The recent closing price of around $16.43 puts it closer to the high end of its recent trading range, reflecting a recent bounce, but still below the 52-week high.

The dividend is a major part of the investment thesis here. PINE's common dividend for Q4 2025 is $0.285 per share, which translates to a robust current dividend yield of approximately 6.9%. The payout ratio is a manageable 59%, which is a healthy level for a REIT, suggesting the dividend is well-covered by cash flow and not putting undue stress on the balance sheet. This yield is a clear opportunity for income-focused investors.

Finally, the Wall Street consensus is decidedly bullish. Analysts are not sitting on the fence; the consensus rating is a Buy (or Strong Buy), based on 8 buy ratings, 2 hold ratings, and 0 sell ratings. The median price target is $18.05, which implies a decent upside from the current trading price. That's a strong vote of confidence from the professional community, but still, you should always do your own work.

To dive deeper into who is actually buying and selling this stock, you should check out Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who's Buying and Why?

Risk Factors

You need to know where the fault lines are in an investment, and for Alpine Income Property Trust, Inc. (PINE), the primary concern is its elevated leverage and the market's skepticism about its valuation. While the portfolio is strong, financial engineering risks are defintely present, so you need to weigh the high dividend yield against the balance sheet's structure.

Financial Leverage and Cost of Capital

The most immediate financial risk is the company's debt load. As of the third quarter of 2025, the net debt to Total Enterprise Value (TEV) stood at a high 62.1%. More telling is the net debt to pro forma adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio, which is relatively high at 7.7 times. This high leverage is why the market gives Alpine Income Property Trust, Inc. a lower valuation, trading at an 8.1x multiple of 2025 estimated Adjusted Funds From Operations (AFFO), which is substantially below the peer average of 14.0x. The debt-to-equity ratio is also high at 1.62. That's a lot of debt for a Real Estate Investment Trust (REIT).

The good news is they are managing interest rate exposure. As of September 30, 2025, Alpine Income Property Trust, Inc. used interest rate swaps to fix the Secured Overnight Financing Rate (SOFR) on $100 million of its Revolving Credit Facility at a weighted average fixed rate of 3.32% plus the applicable spread. They did the same for their Term Loans at a fixed rate of 2.05% plus spread, which hedges against rising rates.

Operational and Credit Quality Headwinds

Despite a near-perfect occupancy rate of 99.4%, operational risks are cropping up, particularly around tenant credit and earnings stability. The Q3 2025 earnings report showed a significant earnings per share (EPS) miss, reporting -$0.09 compared to a forecast of -$0.01. That's an 800% negative surprise, which tells you there are non-recurring or operational challenges not fully captured by the portfolio's stability.

The company also recorded a $1.9 million impairment charge in Q3 2025 related to a Walgreens property under contract for sale, and the credit rating of some tenants, including Walgreens, has recently dropped. This signals a gradual erosion in the overall credit quality of the portfolio, even though 48% of Annual Base Rent (ABR) still comes from investment-grade tenants.

• Q3 2025 Revenue: $14.6 million.
• Q3 2025 Net Loss: $(1.31) million.
• Full-Year 2025 FFO Guidance: $1.82-$1.85 per share.

Mitigation and Strategic Actions

Management is clearly aware of the leverage and valuation concerns. Their primary mitigation strategy is asset recycling, which is just a fancy way of saying they are selling older assets to buy newer, better ones. They are actively selling assets and using loan maturities to fund new investments, with the goal of improving the portfolio's credit quality.

To address the potential for lumpiness in AFFO-which is Funds From Operations adjusted for recurring capital expenditures, and a key metric for REITs-due to the timing of commercial loan expirations, the CEO mentioned plans to sell senior tranches of loans. This helps stabilize earnings by reducing exposure to the full repayment cycle. They are also raising their full-year 2025 FFO/AFFO guidance to $1.82 to $1.85 per share, which shows confidence in their ability to execute on their investment pipeline. Breaking Down Alpine Income Property Trust, Inc. (PINE) Financial Health: Key Insights for Investors

The strategy is sound: use asset sales to fund higher-quality acquisitions, which is a necessary step to close that valuation gap. But still, the high leverage means they have less room for error if the retail real estate market hits a snag.

Growth Opportunities

You're looking for a clear path forward for Alpine Income Property Trust, Inc. (PINE), and the simple takeaway is this: their growth is defintely driven by smart capital recycling, not just broad market expansion. The company is actively selling lower-credit assets to fund higher-yielding, better-quality acquisitions, which is a key strategy in a tighter capital market.

For the 2025 fiscal year, the company's forecast annual revenue growth rate is modest at just 0.89%, which is slower than the overall US REIT - Retail industry average. But that number hides the quality of the portfolio upgrades. Management is focused on boosting Adjusted Funds from Operations (AFFO)-a key measure of a REIT's cash flow-and they've raised their full-year 2025 guidance to a range of $1.82 to $1.85 per diluted share. That's a strong signal of confidence in their current deals.

Strategic Capital Recycling and Acquisitions

The core growth driver for Alpine Income Property Trust, Inc. is its 'Barbell investment strategy,' which means they balance stable, lower-yield properties with opportunistic, higher-yield investments. This isn't about buying everything; it's about buying better. Year-to-date in 2025, they've executed on this by completing $85.9 million in acquisitions and structured investments, achieving a weighted average initial yield of 9.1%.

Here's the quick math on their asset upgrade: they've paired those buys with dispositions (property sales) totaling $34.3 million through Q3 2025. This capital recycling is specifically designed to reduce exposure to weaker tenants, like Walgreens, and increase the percentage of Annual Base Rent (ABR) derived from investment-grade tenants, which currently sits at 48%.

Recent acquisitions show this focus on quality and yield:

• Acquisition of a Sam's Club property for $15.4 million.
• Two ground leases with Lowe's for $21.1 million.
• A three-property portfolio (Hardee's, Jiffy Lube) for $2.8 million, yielding an 8.5% cash yield.

Commercial Loan Origination and Earnings Outlook

Alpine Income Property Trust, Inc. isn't just a landlord; they're also a lender, and this is a significant growth lever. They've successfully originated high-yielding commercial loans with strong sponsors, achieving a weighted average initial yield of 10.6%. This loan activity helps diversify their income stream and provides a higher return than many traditional net-lease acquisitions right now.

While the net earnings for 2025 are still projected to be a loss of approximately -$5,088,000, the focus should be on their Funds from Operations (FFO) and AFFO, which are the true measures of a REIT's operational performance. The raised FFO guidance to $1.82-$1.85 per diluted share for 2025 shows the underlying cash flow generation is strong, despite non-cash charges like the $1.9 million impairment charge recorded on a Walgreens property sale.

The company's operational metrics remain exceptionally strong, giving them a competitive edge:

This high occupancy rate is a clear competitive advantage in the retail real estate sector. If you want to dive deeper into who is betting on this strategy, you should read Exploring Alpine Income Property Trust, Inc. (PINE) Investor Profile: Who's Buying and Why?