News

Alpine Income Property Trust, Inc. PINE has provided an update on its year-to-date investment and disposition activities.

The company purchased a two-tenant net leased retail property during the second quarter for $14.6 million. This property, spanning approximately 101,000 square feet and situated on 7.38 acres, is fully leased to investment-grade-rated tenants, namely Best Buy and Golf Galaxy (Dick’s Sporting Goods). The tenants have a weighted average remaining lease term of 4.6 years.

The acquisition of properties net leased to investment-grade-rated entities will likely help PINE enjoy steady rental revenues.

Moreover, in the quarter, Alpine Income originated a 15-month first mortgage structured investment aggregating $6.1 million, with an initial yield of 11.5%. The company funded approximately $4.6 million at the start of the loan. The underlying loan collateral consists of three retail outparcels leased or under a letter of intent with a national convenience store and a national quick service restaurant located in Cincinnati, OH.

Alpine Income has recorded a year-to-date total investment activity of $28.9 million as of Jun 24, 2024. This figure encompasses both its acquisition and structured investment activities, with a weighted average initial investment yield of 9.85%.

During the second quarter, Alpine Income completed the sale of two net lease properties, which were leased to Hobby Lobby & Festival Foods. The total disposition volume amounted to $6.6 million, with a weighted average exit cap rate of 7.04%. The sale of these properties generated aggregate gains of $0.9 million.

The company has successfully concluded its total investment sales of $20.2 million, at a yield of 7.69%. This included the previously announced sale of the $13.6 million A-1 participation of its $24 million portfolio loan.

Per the first-quarter 2024 earnings release, management expects both 2024 investments and dispositions to be within $50-$80 million.

Shares of this Zacks Rank #3 (Hold) company have gained 0.9% in the past three months against the industry’s decline of 1.6%.

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Stocks to Consider

Some better-ranked stocks from the retail REIT sector are Realty Income O and Kite Realty Group Trust KRG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for O’s 2024 funds from operations (FFO) per share has moved marginally northward over the past month to $4.21.

The Zacks Consensus Estimate for KRG’s current-year FFO per share has been raised marginally over the past two months to $2.05.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.