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Alpine Income Property Trust, Inc. (PINE)·Q2 2025 Earnings Summary

Executive Summary

  • Revenue grew 19.0% year over year to $14.86M and increased 4.6% sequentially; Q2 beat S&P Global consensus revenue by ~$0.39M, driven by higher interest income from commercial loans ($2.74M) and stable lease income ($12.02M) .*
  • GAAP diluted EPS was a loss of $0.12, below S&P Global consensus (−$0.03) due to $2.8M of non-cash impairment on two vacant assets and higher interest expense; FFO/AFFO were $0.44, modestly above/in-line with consensus and up 2.3% YoY .*
  • Guidance: FY25 FFO/AFFO reaffirmed at $1.74–$1.77; investment volume guidance raised to $100–$130M (from $70–$100M in Q1) with dispositions maintained at $50–$70M; dividend held at $0.285/share, ~65% payout .
  • Capital recycling and tenant de-risking continued: five property dispositions ($16.5M, 7.9% exit cap), Walgreens exposure reduced to ~7% of ABR and moved to fifth-largest tenant; WALT extended to 8.9 years .
  • Subsequent event: $25.5M Publix land development loan repaid on July 2; management expects a roughly “just over 1 cent per quarter” temporary drag until redeployment, a near-term earnings headwind but leverage-proactive .

What Went Well and What Went Wrong

What Went Well

  • Accretive capital recycling with improving portfolio quality: sold five properties at a 7.9% exit cap; Walgreens concentration cut to fifth largest tenant (~7% ABR) and WALT extended to 8.9 years (“up from 6.6 a year ago”) .
  • Consistent earnings power: FFO and AFFO were both $0.44 per diluted share (+2.3% YoY), supported by $2.74M interest income from loans and steady lease income .
  • Dividend coverage and shareholder returns: dividend maintained at $0.285/share with ~65% FFO/AFFO payout, and 273K shares repurchased in Q2 (546K YTD); CFO emphasized an “attractive dividend yield close to 8%” and disciplined buybacks .

Quote: “We continued to effectively execute our strategy focused on accretive capital recycling and have supplemented it with opportunistic common stock repurchases during the first half of the year” — John P. Albright, CEO .

What Went Wrong

  • GAAP EPS miss: Q2 GAAP diluted EPS −$0.12 (vs consensus −$0.03), driven by $2.803M impairment on two largest vacant assets (Reno theater, Long Island Party City) and higher interest expense ($4.32M) .*
  • Elevated leverage: Net debt/Pro Forma Adjusted EBITDA was 8.1x; management aims to sell assets/pay down revolver, but buybacks and investment pace can pressure leverage temporarily .
  • Slower property acquisition activity in Q2 (no new property acquisitions; only $6.6M of loans) amid competitive market; pipeline skewed near term to structured loans .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Total Revenues ($USD)$13.79M $14.21M $14.86M
GAAP Diluted EPS−$0.06 −$0.08 −$0.12
FFO per Diluted Share$0.44 $0.44 $0.44
AFFO per Diluted Share$0.44 $0.44 $0.44
Revenue Composition ($USD)Q2 2024Q1 2025Q2 2025
Lease Income$11.33M $11.83M $12.02M
Interest Income (Loans)$0.99M $2.30M $2.74M
Other Revenue$0.17M $0.08M $0.10M
Total Revenues$12.49M $14.21M $14.86M
Margins (%)Q1 2025Q2 2025
EBITDA Margin %73.04%*73.30%*
Net Income Margin %−8.30%*−11.04%*

Values marked with * retrieved from S&P Global.

Estimates vs Actuals (S&P Global)Q1 2025Q2 2025Q3 2025
Revenue Consensus Mean ($USD)$13.93M*$14.42M*$14.67M*
Revenue Actual ($USD)$14.21M $14.86M $14.56M*
Primary EPS Consensus Mean ($)$0.00*−$0.03*−$0.01*
GAAP Diluted EPS Actual ($)−$0.08 −$0.12 −$0.094*
FFO/Share Consensus Mean ($)$0.431*$0.444*$0.432*
FFO/Share Actual ($)$0.44 $0.44 N/A

Additional estimate metadata: Revenue – # of Estimates: Q1: 7*, Q2: 6*, Q3: 7*; Primary EPS – # of Estimates: Q1: 4*, Q2: 5*, Q3: 6*.

S&P Global disclaimer: Consensus estimates values marked with * are retrieved from S&P Global.

KPIsQ1 2025Q2 2025
Number of Properties134 129
ABR (GAAP)$47.1M $45.3M
Occupancy98.6% 98.2%
WALT9.0 years 8.9 years
Investment-Grade % of ABR50% 51%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
InvestmentsFY 2025$70M–$100M $100M–$130M Raised
DispositionsFY 2025$50M–$70M $50M–$70M Maintained
FFO per Diluted ShareFY 2025$1.74–$1.77 $1.74–$1.77 Maintained
AFFO per Diluted ShareFY 2025$1.74–$1.77 $1.74–$1.77 Maintained
Weighted Avg Diluted SharesFY 202515.5M–16.0M 15.5M Slightly Lower Midpoint
Dividend per ShareQ2 2025$0.285 (declared) $0.285 (declared) Maintained

Reconciliation disclosures provided in 8-K exhibits .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Capital recycling2024 dispositions $75.6M at 7.1% exit yield; Walgreens reduced; WALT 8.7 yrs Dispositions $11.7M at 9.1% exit cap; continued pruning Sold 5 properties ($16.5M, 7.9% exit cap); Walgreens at ~7% ABR Ongoing de-risking
Structured loan originationLaid groundwork for loans; loans $31.1M in 2024 at 10.7% $39.5M loans at 9.5% in Q1 $6.6M loans at 9.8% (seller financing + new first mortgage); loan repayments post-Q2 Growing pipeline, high yields
Tenant credit/watchlistWalgreens reduced; At Home 5% of ABR Walgreens 7%; At Home 3% ABR Walgreens ~6.6–7%; At Home bankruptcy noted, rents paid in July Continues pruning; monitoring At Home
Leverage/liquidityNet debt/Adj EBITDA 7.4x; liquidity $95.1M Net debt/Adj EBITDA 7.9x; liquidity $64.9M Net debt/Adj EBITDA 8.1x; liquidity $57.3M; potential >$100M with commitments Stable-to-slightly higher; active paydowns
Dividend & buybacksDividend increased to $0.285; payout ~64% Dividend maintained; repurchases 274K shares Dividend maintained; repurchases 273K Q2 (546K YTD) Shareholder-friendly returns
Acquisition marketRobust 2024 investments $134.7M @8.7% $79.2M Q1 @9.0% No property acquisitions in Q2; competitive environment; focus on loans near term Timing delays; selectivity

Management Commentary

  • Strategy and portfolio quality: “We remain focused on our Barbell investment strategy, pairing higher yielding acquisitions supported by quality tenants…with select investment-grade tenants” — John P. Albright .
  • Capital deployment mix: “More of the structured loan investment activity seems to be closer to happening than the acquisitions…we’re very excited about [loan] opportunities” — John P. Albright .
  • Dividend and coverage: “We increased our quarterly cash dividend to $0.285…providing a current attractive dividend yield close to 8%. Even with this increase, our dividend remains well covered at approximately an FFO/AFFO ratio of 65%” — Philip Mays .
  • Impairment and vacant assets: “$2.8M of non-cash impairment…related to our two largest vacant properties…we have determined it is more likely we will simply sell these properties and redeploy the proceeds” — Philip Mays .

Q&A Highlights

  • Deployment outlook and mix: Pipeline skewed to structured loans; acquisitions remain competitive; expect loan closings in next 60 days .
  • Publix loan repayment impact: $25.5M repaid at 9.5% yield; expected “a little more than a full penny a quarter” drag until redeployment .
  • Funding and term loans: Five-year term loan “around 5% all in” if swapped today; balanced approach to leverage management .
  • Walgreens/At Home markets: Active buyer interest; Walgreens cap rates high-7% to low-11% depending on location/term; At Home boxes are often below market rents, garnering user interest; targeting Walgreens below 5% ABR over time .
  • Bass Pro Shops lease: Full renovation complete; new 20-year term; rent +$40–$50K per month ($500K/year) .

Estimates Context

  • Q2 2025: Revenue beat ($14.86M actual vs $14.42M consensus); GAAP EPS missed (−$0.12 actual vs −$0.03 consensus) due to impairment and higher interest expense; FFO/Share was in-line/slight beat ($0.44 actual vs $0.444 consensus). Revenue estimates had six contributors; EPS had five contributors.*
  • Near-term adjustments: Management disclosed the Publix loan repayment will reduce near-term interest income until redeployment, which may prompt modest downward adjustments to near-term GAAP EPS and potentially FFO until new loans fund .*

S&P Global disclaimer: Consensus estimates values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue and FFO resilience amid portfolio pruning; Q2 revenue beat driven by higher interest income from loans and stable rents .*
  • GAAP EPS miss was primarily non-cash impairment; core FFO/AFFO performance remained steady at $0.44 per share .
  • Guidance supports continued accretive growth: investment volume raised to $100–$130M with reaffirmed FFO/AFFO ranges, indicating confidence in the pipeline .
  • Portfolio de-risking continues: Walgreens down to ~7% ABR with more sales planned; WALT increased to 8.9 years, enhancing forward stability .
  • Liquidity and balance sheet: $57.3M available liquidity today with potential to exceed $100M; net debt/Adj EBITDA at 8.1x suggests asset sales and repayments remain prudent .
  • Near-term watch items: Loan redeployment timing, At Home bankruptcy process (both assets paid July rent and aren’t on closure list), and acquisition competitiveness .
  • Trading implications: Expect sensitivity to loan redeployment updates and Walgreens disposition cadence; positive catalysts include loan originations at double-digit yields and further tenant diversification .