Alpine Income Property Trust Q2 Earnings Call Highlights

Alpine Income Property Trust (PINE) reported second-quarter 2026 funds from operations and adjusted funds from operations growth of about 30% and 32%, respectively, as investment activity expanded its property and commercial loan portfolios. FFO totaled $0.57 per diluted share for the quarter, while AFFO was $0.58 per diluted share. Total revenue was $20 million, including $12.6 million of lease income and $7.3 million of interest income from commercial loan investments. For the first six months of 2026, FFO and AFFO were $1.10 and $1.11 per diluted share, respectively, while total revenue reached $38.4 million. Chief Financial Officer Philip Mays said quarterly results included about $300,000 of other income from a non-refundable deposit related to a terminated contract to sell an At Home property to an end user. The amount represented roughly $0.02 per share of earnings, he said. Investment activity expands portfolio President and Chief Executive Officer John Albright said the company completed approximately $77 million of total investment activity during the quarter at a blended initial yield of 8.7%. On the property side, Alpine acquired three properties for $36.6 million at a weighted average initial capitalization rate of 7.4% and a weighted average remaining lease term of 9.2 years. The purchases included a three-property portfolio leased to Aldi, HomeGoods and Petco, as well as properties leased to Lowe’s and Alamo Drafthouse. Alamo Drafthouse is a subsidiary of Sony Group Corporation, which Albright described as A+ rated. The acquisition activity increased the share of annualized base rent attributable to investment-grade-rated tenants to 55% from 50%. Alpine said 84% of the quarter’s acquisition activity was investment grade. Four of its five largest tenants—Lowe’s, Dick’s Sporting Goods, Walmart and Alamo Drafthouse—were investment grade at quarter-end. Alpine’s property portfolio ended the quarter with 128 properties totaling 4.5 million square feet across 31 states. Occupancy was 99.5%, the weighted average lease term was 9.2 years, and annualized straight-line base rent was $50 million. Albright said the company expects to concentrate new activity primarily in net-lease real estate, with acquisition targets generally carrying cap rates in the 7% range or higher. He said the investment pipeline includes high-quality properties leased to investment-grade tenants and that some acquisitions expected in the prior quarter had been delayed. Commercial loans remain near targeted allocation During the quarter, Alpine originated a new $40 million first-mortgage loan, funding $6.2 million at an initial yield of 10%. The loan is secured by a 24-acre, 55,000-square-foot anchored retail development. The company also received full repayment on $8 million of commercial loans with an 8% weighted average yield, allowing it to reinvest capital into higher-yielding opportunities. At quarter-end, the commercial loan portfolio consisted of 13 loans with an outstanding face amount of $167 million and a weighted average coupon rate, including payment-in-kind interest, of 13.2%. The portfolio represented approximately 20% of total undepreciated asset value, the company’s targeted level. Albright said Alpine does not expect the loan portfolio to move materially above the 20% target other than temporarily because of timing. He said the company has some expected loan payoffs and is evaluating one additional, modest-sized development loan. Management said significant unfunded loan commitments are expected to be drawn primarily over the next six months, particularly for Publix-anchored developments. Albright said Alpine generally targets higher loan-to-cost levels for these projects, while expecting stabilized loan-to-value ratios of roughly 70% to 75%.