• FFO (Funds From Operations): $0.45 per diluted share, up 22% from $0.37 in Q3 2023.

• AFFO (Adjusted Funds From Operations): $0.44 per diluted share, up 16% from $0.38 in Q3 2023.

• Total Revenue: $13.5 million, including lease income of $11.7 million and interest income from commercial loans of $1.7 million.

• Property Acquisitions: Four net lease properties acquired for $37.5 million at a weighted average initial cap rate of 8.8%.

• Property Dispositions: Eight properties sold for $48.6 million at a weighted average cash cap rate of 6.8%, generating aggregate gains of $3.4 million.

• Loan Portfolio: Aggregate outstanding balance of $43.2 million at a weighted average yield of 10.4%.

• Equity Capital Raised: $11.1 million through the common ATM program.

• Net Debt to EBITDA: Improved to 6.9 times from 7.4 times last quarter.

• Quarterly Dividend: Increased from $0.275 per share to $0.28 per share, with an AFFO payout ratio of 64%.

• Full-Year 2024 FFO Guidance: Raised to a range of $1.67 to $1.69 per share.

• Full-Year 2024 AFFO Guidance: Raised to a range of $1.69 to $1.71 per share.

• Investment Guidance: Increased to a range of $100 million to $110 million.

• Disposition Guidance: Adjusted to a range of $70 million to $75 million.

• Warning! GuruFocus has detected 9 Warning Signs with PINE.

Release Date: October 18, 2024

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) reported strong earnings growth for the third quarter, with FFO increasing by 22% and AFFO by 16% compared to the same period last year.

• The company successfully executed accretive asset recycling, acquiring four net lease properties for $37.5 million at a weighted average initial cap rate of 8.8%.

• PINE reduced its exposure to Walgreens, which dropped from the largest tenant concentration to the second largest, and plans to continue reducing this exposure.

• The company raised its quarterly dividend from $0.275 to $0.28 per share, reflecting increased earnings and a healthy AFFO payout ratio of 64%.

• PINE increased its full-year 2024 guidance for FFO and AFFO, as well as its investment guidance, indicating confidence in continued growth and performance.

Negative Points

• Some properties acquired in the Tampa Bay area sustained damage during recent hurricanes, although they are expected to reopen by the end of the year or early next year.

• The company's exposure to non-investment-grade tenants increased due to recent acquisitions, which may pose higher risks compared to investment-grade tenants.

• There are concerns about potential credit loss, particularly with tenants like At Home, which has balance sheet issues.

• The GAAP treatment of certain transactions, such as sale-leasebacks, resulted in some discrepancies in reported income, potentially causing confusion.

• The company has a relatively high net debt to EBITDA ratio of 6.9 times, although it has improved from the previous quarter.