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Alpine Income's Q1 Investments Total $79.2M, Dispositions Reach $11.7M

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In the recent update, Alpine Income Property Trust, Inc. (PINE - Free Report) disclosed that its first-quarter total investment activity, including acquisitions and structured investments, reached $79.2 million at a weighted average initial investment yield of 9.0%. 

Its investment activity incorporated the acquisition of three net lease properties for $39.7 million. This marked a weighted average going-in cash cap rate of 8.6% and a weighted average remaining lease term of 14.3 years. This underscores management’s ability to identify and secure high-quality assets at attractive valuations, driving long-term shareholder value. Located in three states, the properties are net leased to three tenants, Academy Sports, GermFree, and Alamo Drafthouse. 

Apart from these acquisitions, Alpine Income originated one seller financing structured investment together with the disposition of a property in Canton, OH, leased to At Home, and originated a new construction loan, aggregating $21.7 million of principal, with a current balance of $12.6 million and a weighted average initial yield of 9.6%. The REIT also amended four existing structured investments.

Its first-quarter total disposition volume aggregates $11.7 million at a weighted average exit cash cap rate of 9.1%. In particular, the company sold three net lease properties, which included properties leased to O’Reilly and At Home as tenants and a vacant parcel previously leased to a convenience store. 

Going forward, PINE’s focus on investing in, owning and operating a portfolio of single-tenant net leased properties, predominantly leased to high-quality publicly traded and credit-rated tenants, is likely to help it enjoy steady rental revenues. With no debt maturities until 2026, the company enjoys flexibility to support its growth endeavors. However, macroeconomic uncertainty remains a concern.

Shares of this Zacks Rank #3 (Hold) company have rallied 9.0% in the past year, outperforming the real estate market’s upside of 4%.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower Inc. (WELL - Free Report) and Cousins Properties Incorporated (CUZ - Free Report) . Welltower and Cousins Properties carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s 2025 FFO per share is pegged at $4.93, which indicates year-over-year growth of 14.1%.

The Zacks Consensus Estimate for Cousins’ 2025 FFO per share is pegged at $2.79, which implies a year-over-year increase of 3.7%.

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.


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