• AFFO per Diluted Share (Annual): $1.74, representing growth of 17%.
• Quarterly Dividend: Increased to $0.285 per share, annualized to $1.14.
• Property Acquisitions (Q4): 6 properties for $50.5 million at a 7.6% cap rate.
• Total Investments (2024): $134.7 million at an average yield of 8.7%.
• Property Dispositions (2024): $62 million at a 6.9% cap rate.
• Total Revenue (Q4): $13.8 million, including $11.5 million lease income and $2.2 million interest income.
• FFO and AFFO per Diluted Share (Q4): $0.44, growth of 19% and 16% respectively.
• Total Revenue (Annual): $52.2 million, including $46 million lease income and $5.8 million interest income.
• Net Debt to EBITDA: 7.4 times at year-end, down from 7.7 times.
• Liquidity: $95 million, with $5 million cash and $90 million under revolving credit.
• 2025 Earnings Guidance: FFO and AFFO per diluted share range of $1.70 to $1.73.
• Impact of Party City Bankruptcy and Reno Theater: Expected to reduce 2025 FFO and AFFO per share by $0.08.

• Warning! GuruFocus has detected 7 Warning Signs with PINE.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alpine Income Property Trust Inc (NYSE:PINE) achieved AFFO growth of 17% for the year, reaching $1.74 per diluted share.
• The company raised its quarterly dividend to $0.285, marking an annualized dividend of $1.14, continuing its trend of annual dividend increases since its IPO.
• PINE successfully acquired 12 properties in 2024 for $103.6 million at a weighted average cash cap rate of 8.2%, enhancing its portfolio with investment-grade tenants.
• The company originated three commercial loans totaling $31.1 million at a weighted average yield of 10.7%, contributing to a total investment of $134.7 million at an average yield of 8.7%.
• PINE ended the year with a strong liquidity position of $95 million, including $5 million in cash and $90 million available under its revolving credit facility.

Negative Points

• Party City's bankruptcy and Cinemark's lease non-renewal present short-term earnings headwinds, impacting 2025 FFO and AFFO by approximately $0.08 per share.
• The company faces challenges with its Walgreens and At Home properties, which may require strategic dispositions to manage risk.
• Real estate expenses increased due to the expiration of the Reno lease, impacting financial performance.
• PINE's net debt to EBITDA ratio remains relatively high at 7.4 times, despite a slight improvement from the previous year.
• The company anticipates potential impacts on its 2025 earnings guidance due to uncertainties in property acquisitions and dispositions.

Q & A Highlights

Q: You decreased your Walgreens exposure in the quarter. Should we expect a further paring down of this tenant type? A: John Albright, President and CEO: We have another Walgreens property in the pipeline for sale, but we're timing it with acquisitions. Despite challenges, there is a market for these properties, and we may sell another one this quarter.

Q: Within your investment outlook for 2025, can you provide any color on your appetite for acquisitions versus construction loans? A: John Albright, President and CEO: We see robust opportunities in both loans and acquisitions. We like loan opportunities due to enhanced credit and higher yields. We might pursue a 50-50 investment strategy between loans and acquisitions.

Q: You have four commercial loans maturing in 2025. What are your expectations? A: Philip Mays, CFO: One loan will likely pay off, and three will probably extend. We expect to replace the one that pays off mid-year and maintain or grow the balance towards the end of the year.

Q: Are The Beachside Group assets back to full capacity after storm damage? A: John Albright, President and CEO: Yes, they are open and performing, some even better than pre-hurricane levels. The sandbar isn't at max capacity yet but is trending positively. They had business interruption insurance to cover any missing revenue.

Q: Beyond Party City and Cinemark, are there any other locations expected to be vacant in 2025 or early 2026? A: John Albright, President and CEO: No other expected vacancies. We're proactive with tenants on our watch list, like At Home, and are actively discussing selling some of those properties.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.