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Alpine Income Property Trust, Inc. (PINE)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered stable cash metrics with FFO/AFFO of $0.44 per diluted share (+7.3% and +4.8% YoY), total revenues of $14.206M, and a GAAP diluted EPS loss of $(0.08) due primarily to an impairment charge and higher interest expense .
  • Versus Wall Street: revenue beat ($14.206M vs $13.93M consensus*), FFO/share beat ($0.44 vs $0.431*), but GAAP EPS missed (−$0.08 vs ~$0.00 consensus*)—the miss was driven by a $2.031M impairment and interest expense .
  • Guidance raised: 2025 FFO/AFFO/share to $1.74–$1.77 (from $1.70–$1.73), investments to $70–$100M (from $50–$80M), dispositions to $50–$70M (from $20–$30M), and diluted shares lowered to 15.5–16.0M (from 16.0–16.5M) .
  • Catalysts: active capital recycling (14.3-year WALT on acquisitions), opportunistic buybacks ($7.6M total noted across Q1 and post-quarter), and a new interest rate swap fixing $50M at 3.43%—all supporting higher full-year guidance and dividend sustainability .

What Went Well and What Went Wrong

What Went Well

  • Elevated investment yields and longer lease terms: $79.2M closed at a 9.0% initial cash yield; property acquisitions’ WALT 14.3 years, lifting portfolio WALT to 9.0 years .
  • Active portfolio pruning and liquidity enhancement: $11.7M of dispositions at a 9.1% exit cap rate; continued reduction of Walgreens exposure with one sale closed in April and another expected in May .
  • Management executed rate and equity actions: “opportunistically executed a SOFR swap…$50 million…3.43%” and continued share repurchases, supporting FFO/AFFO per share and improved guidance .
    • Quote: “We…completed investments that approached $80 million…weighted average initial cash yield of 9.0%…should support our ability to continue to deliver strong results.” — CEO John Albright .

What Went Wrong

  • GAAP earnings pressure: Q1 net loss attributable to PINE was $(1.179)M and diluted GAAP EPS of $(0.08), reflecting a $2.031M impairment charge and higher interest expense ($3.592M) .
  • Leverage elevated: Net Debt/Pro Forma Adjusted EBITDA at 7.9x; Net Debt/TEV 57.1% at quarter-end, though maturities are staggered with no debt maturing until 2026 .
  • Near-term income headwinds from vacancies: Party City paid Q1 but rent ceases afterward; Reno theater has negative NOI; management expects vacant sales this year (included at the high end of dispositions), contributing to guidance assumptions of zero rent for these assets .

Financial Results

Core Financials vs Prior Quarters

MetricQ3 2024Q4 2024Q1 2025
Total Revenues ($USD)$13.480M $13.791M $14.206M
GAAP Diluted EPS ($)$0.21 $(0.06) $(0.08)
FFO per Diluted Share ($)$0.45 $0.44 $0.44
AFFO per Diluted Share ($)$0.44 $0.44 $0.44

Q1 2025 vs Q1 2024

MetricQ1 2024Q1 2025
Total Revenues ($USD)$12.466M $14.206M
GAAP Diluted EPS ($)$(0.02) $(0.08)
FFO per Diluted Share ($)$0.41 $0.44
AFFO per Diluted Share ($)$0.42 $0.44

Revenue Composition

Revenue ComponentQ3 2024Q4 2024Q1 2025
Lease Income ($USD)$11.718M $11.493M $11.826M
Interest Income from Commercial Loans & Investments ($USD)$1.663M $2.209M $2.301M
Other Revenue ($USD)$0.099M $0.089M $0.079M
Total Revenues ($USD)$13.480M $13.791M $14.206M

KPIs and Portfolio Metrics

KPIQ3 2024Q4 2024Q1 2025
Annualized Base Rent (ABR) ($USD)$41.5M $44.3M $47.1M
Occupancy (%)99.1% 98.0% 98.6%
Weighted Avg Remaining Lease Term (Years)8.8 8.7 9.0
Properties (#)133 134 134
% of ABR from Investment Grade Tenants52% 51% 50%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Investments ($)FY 2025$50M–$80M $70M–$100M Raised
Dispositions ($)FY 2025$20M–$30M $50M–$70M Raised
FFO per Diluted Share ($)FY 2025$1.70–$1.73 $1.74–$1.77 Raised
AFFO per Diluted Share ($)FY 2025$1.70–$1.73 $1.74–$1.77 Raised
Weighted Avg Diluted Shares (M)FY 202516.0–16.5 15.5–16.0 Lowered
Dividend ($/share)Q2 2025$0.285 (declared)$0.285 (declared)Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Capital recycling, WALT extensionRaised WALT to 8.8 years; disposed lower-yield assets; increased 2024 FFO/AFFO guidance Acquired with 14.3-year WALT, portfolio WALT now 9.0 years; dispositions at 9.1% cap Improving
Walgreens exposureMultiple disposals in 2024 One sold in April; another expected in May, continuing reduction De-risking
Construction loans and funding pacePublix-anchored loan initiated; 10.25% initial yield New $15.5M construction loan; upsized Wawa loans; funding schedule relatively even through mid-year Ongoing
Share repurchasesATM usage in 2024 New $10M buyback authorized (Feb 12), repurchased ~274k shares in Q1; additional ~193k post-quarter Accretive
Interest rate managementSwaps in place on term loans New SOFR swap on $50M at 3.43% through Jan 2027 Positive
Tariffs/macro watchNot highlightedManagement monitoring; “so far, so good” on tenant activity Neutral watch
Vacancies (Party City, theater)2025 outlook assumed ~$0.08/share impact from vacancies Party City rent stops after Q1; theater negative NOI, sale under negotiation Near-term headwind

Management Commentary

  • “We completed investments that approached $80 million with a weighted average initial cash yield of 9.0%…our property portfolio with a weighted average remaining lease term of 9.0 years…should support our ability to continue to deliver strong results.” — John P. Albright, CEO .
  • “Total revenue was $14.2 million…FFO and AFFO…$0.44 per diluted share…we opportunistically repurchased approximately 274,000 common shares…[and] executed a SOFR swap fixing…$50 million…3.43%…We are increasing both our FFO and AFFO guidance…to a range of $1.74 to $1.77.” — Philip R. Mays, CFO .
  • “Our transaction activity…focused on buying a mix of high credit tenants…[and] opportunistically selling properties that reduce portfolio risk…and extending our WALT.” — John P. Albright .

Q&A Highlights

  • Guidance drivers: The raise was driven roughly equally by buybacks (~$7.6M at ~$15.15 avg), the $50M swap (floating ~6% to ~5%), and investment volume/timing/cap rates—each adding ~$0.01–$0.015 to EPS guidance .
  • Capital allocation: Balancing buybacks (NAV accretive) with acquisitions/investments; expects loan maturities and asset sales to provide debt paydown capacity and acquisition dry powder .
  • Dispositions cap rates: Mix expected to be lower than Q1’s 9.1% as sales may include non-income properties; portfolio pruning continues (Walgreens) .
  • Walgreens outlook: Sycamore ownership viewed as stabilizing; private market interest emerging to repurpose sites, improving sentiment over the last ~60 days .
  • Dollar Tree/Family Dollar exposure: ~31 total; ~25 Family Dollar, with roughly half retaining Dollar Tree credit post-spin; average remaining term 8+ years .
  • Vacancies: Party City paid Q1 then ceases payments; theater has negative NOI; vacant asset sales included at high end of dispositions; rent assumed zero in guidance .

Estimates Context

MetricQ1 2025 ActualQ1 2025 ConsensusSurprise
Total Revenues ($USD)$14.206M $13.930M*Beat
GAAP Diluted EPS ($)$(0.08) $0.003*Miss
FFO / Share (REIT) ($)$0.44 $0.431*Beat
Revenue - # of Estimates—7*—
Primary EPS - # of Estimates—4*—
Target Price Consensus Mean ($)—$17.68*—
  • Why the mixed outcome: Revenue and FFO beats reflect incremental lease and interest income from investment activity and disciplined capital actions (buybacks, swap); GAAP EPS miss was driven by a $2.031M impairment and higher interest expense in the quarter .

Note: Values marked with * are from S&P Global.

Key Takeaways for Investors

  • Cash flow stability intact: FFO/AFFO/share sustained at $0.44 with a 65% AFFO payout ratio, supporting the $0.285 quarterly dividend and a sector-high yield profile .
  • Positive estimate momentum likely: Raised 2025 FFO/AFFO guidance and reduced share count assumptions—constructive for per-share metrics and potential consensus revisions .
  • Active de-risking and portfolio quality: Accelerated Walgreens reduction and sale of short-WALT/underperforming assets; acquisitions bring 14.3-year WALT and high initial yields .
  • Balance sheet watch: Leverage at 7.9x Pro Forma Adjusted EBITDA, but maturities are well staggered and liquidity ~$65M with potential to expand via facility capacity as assets are added .
  • Capital allocation catalyst: Continued buybacks at discounts to NAV, coupled with structured finance returns and swap-driven interest savings, offer near-term EPS tailwinds .
  • Tactical vacancy management: Expected sales of Party City and Reno theater assets should alleviate drag and could support leverage normalization in 2H25 .
  • Trading implications: Near-term—focus on FFO/AFFO beats and guidance raise; medium-term—watch dispositions mix/cap rates, Walgreens pace, loan repayments, and accretive redeployment to sustain per-share growth .
Sources: Q1 2025 8-K and press release, investor presentation, Q1 2025 earnings call transcript, Q4 2024 and Q3 2024 press releases, dividend and buyback press releases **[1786117_0001558370-25-005412_pine-20250424x8k.htm:0]** **[1786117_0001558370-25-005412_pine-20250424xex99d1.htm:0]** **[1786117_0001558370-25-005412_pine-20250424xex99d1.htm:1]** **[1786117_0001558370-25-005412_pine-20250424xex99d1.htm:2]** **[1786117_0001558370-25-005412_pine-20250424xex99d1.htm:3]** **[1786117_0001558370-25-005412_pine-20250424xex99d1.htm:4]** **[1786117_0001558370-25-005412_pine-20250424xex99d1.htm:8]** **[1786117_0001558370-25-005412_pine-20250424xex99d1.htm:9]** **[1786117_0001558370-25-005412_pine-20250424xex99d2.htm:1]** **[1786117_8d4cd1cb3b214106b5b14651cd477338_0]** **[1786117_8d4cd1cb3b214106b5b14651cd477338_2]** **[1786117_8d4cd1cb3b214106b5b14651cd477338_3]** **[1786117_8d4cd1cb3b214106b5b14651cd477338_4]** **[1786117_5a346f29b97c4286a3d0abc2466ed605_0]** **[1786117_5a346f29b97c4286a3d0abc2466ed605_1]** **[1786117_5a346f29b97c4286a3d0abc2466ed605_2]** **[1786117_5a346f29b97c4286a3d0abc2466ed605_3]** **[1786117_5a346f29b97c4286a3d0abc2466ed605_4]** **[1786117_201a02e8018146228bbace6888a7b25a_0]** **[1786117_201a02e8018146228bbace6888a7b25a_1]** **[1786117_201a02e8018146228bbace6888a7b25a_2]** **[1786117_201a02e8018146228bbace6888a7b25a_3]** **[1786117_201a02e8018146228bbace6888a7b25a_14]** **[1786117_8ca37b48496d48ee946f6a82ca0a0bcb_0]** **[1786117_03315fcb6e4c493197e50634eb227cc8_0]** **[1786117_PINE_3423427_0]** **[1786117_PINE_3423427_1]** **[1786117_PINE_3423427_2]** **[1786117_PINE_3423427_4]** **[1786117_PINE_3423427_5]** **[1786117_PINE_3423427_7]** **[1786117_PINE_3423427_8]** **[1786117_PINE_3423427_9]** **[1786117_PINE_3423427_10]** **[1786117_PINE_3423427_11]** **[1786117_PINE_3423427_12]** **[1786117_PINE_3423427_13]** **[1786117_PINE_3423427_15]** **[1786117_PINE_3423427_16]**.  
Note: Estimate values marked with * are from S&P Global.