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Alpine Income (PINE) Completes $187.4M Acquisitions in 2022
Alpine Income Property Trust, Inc. (PINE - Free Report) acquired 51 net lease retail properties for $187.4 million in 2022. This represented a weighted-average going-in cash cap rate of 7.1%.
With a weighted-average remaining lease term of 8.7 years and around 76% of annualized base rents being from a tenant or the parent of a tenant with an investment-grade credit rating, the acquisitions completed in 2022 seems a strategic fit. Capitalizing on these, PINE is expected to enjoy a steady stream of rental revenues over the long term.
In the fourth quarter, the company acquired seven net lease retail properties for $41.7 million. Located in six states, these properties are net leased to tenants operating in four different retail sectors. These include home improvement, grocery, sporting goods and dollar store sectors.
With regard to disposition activities, Alpine Income noted in its business update that for the full year, the company sold 16 net lease properties for $154.6 million. This marked a weighted average exit cap rate of 6.5% and generated aggregate gains of $33.8 million. In the fourth quarter, the company sold five net lease properties for $31.4 million.
As of Dec 31, 2022, Alpine Income owned 148 net lease properties with a weighted average remaining lease term of 7.6 years. This represented $40.4 million of annualized based rent.
Alpine Income’s top five tenants (based on total annualized base rent), Walgreens, Dick’s Sporting Goods, Dollar Tree/Family Dollar, Lowe’s (LOW - Free Report) and Dollar General (DG - Free Report) , maintain investment-grade credit ratings. This is likely to help PINE enjoy steady rental revenues. Tenants belonging to the necessity-based retail industries saved grace during the pandemic and are likely to be resilient during any economic slowdown.
Shares of Alpine Income, which currently carries a Zacks Rank #2 (Buy), have rallied 22.8% in the past three months compared with the industry’s growth of 3.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Lowe’s carries a Zacks Rank of 3 (Hold) at present. Lowe’s long-term growth rate is projected at 13.2%.
Dollar General carries a Zacks Rank of 3 at present. Dollar General’s long-term growth rate is projected at 11.1%.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.