February 10, 2022 16:10 ET | Source: Alpine Income Property Trust Alpine Income Property Trust
Daytona Beach, Florida, UNITED STATES
DAYTONA BEACH, Fla., Feb. 10, 2022 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or “PINE”) today announced its operating results and earnings for the quarter and year ended December 31, 2021.
The table below provides a summary of the Company’s operating results for the quarter ended December 31, 2021 (in thousands, except per share data):
The table below provides a summary of the Company’s operating results for the year ended December 31, 2021 (in thousands, except per share data):
“Our record fourth quarter capped off a very productive year as we exceeded our FFO and AFFO guidance, meaningfully grew our cash dividend, significantly increased the size and diversity of our high-quality net lease portfolio and provided one of the best total returns in the net lease REIT sector,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. “We enter 2022 with excellent momentum, an outsized relative dividend yield and a robust acquisition pipeline that has us well-positioned to continue to drive strong growth and attractive risk-adjusted returns.”
During the three months ended December 31, 2021, the Company acquired 26 high-quality net lease properties for total acquisition volume of $101.6 million, reflecting a weighted average going-in cash cap rate of 6.2%. As of the acquisition date, the properties had a weighted average remaining lease term of 8.1 years, were located in 11 different states, and were leased to tenants operating in 12 retail sectors including the sporting goods, home improvement, home furnishings, dollar stores, casual dining, convenience store and farm & rural supply sectors. Approximately 32% of annualized base rents acquired are generated from a tenant or the parent of a tenant with an investment grade credit rating and more than 34% of annualized base rents acquired are from ground leased properties.
During the year ended December 31, 2021, the Company acquired 68 net lease properties for total acquisition volume of $260.3 million, reflecting a weighted average going-in cash cap rate of 6.8%. As of the acquisition date, the properties had a weighted average remaining lease term of 8.1 years and were located in 26 different states. Approximately 37% of annualized base rents acquired are generated from a tenant or the parent of a tenant with an investment grade credit rating and more than 14% of annualized base rents acquired are from ground leased properties.
During the three months ended December 31, 2021, the Company sold two office properties located in Orlando, Florida leased to Hilton Grand Vacations for a sales price of $24.5 million, representing an exit cap rate of 7.5%. The sale of the properties generated a gain of $9.1 million.
During the year ended December 31, 2021, the Company sold three net lease properties for total disposition volume of $28.3 million, representing a weighted average exit cap rate of 7.2%. The sale of the properties generated aggregate gains of $9.7 million.
During the year ended December 31, 2021, the Company signed a new store development lease with an established grocer to develop and construct a 23,000 square foot building on an undeveloped outparcel at one of the Company’s existing properties in Jacksonville, Florida (the “Development Opportunity”). The Development Opportunity will have an initial lease term of 15 years, is anticipated to begin construction in 2022 and is subject to customary due diligence and approvals.
The Company’s portfolio consisted of the following as of December 31, 2021:
The Company’s portfolio included the following top tenants as of December 31, 2021:
The Company’s portfolio consisted of the following industries as of December 31, 2021:
The Company’s portfolio included properties in the following states as of December 31, 2021:
Any differences a result of rounding.
Capital Markets and Balance Sheet
During the quarter ended December 31, 2021, the Company completed the following notable capital markets activities:
During the year ended December 31, 2021, the Company completed the following notable capital markets activities:
The following table provides a summary of the Company’s long-term debt as of December 31, 2021:
As of December 31, 2021, the Company held an 87.1% interest in Alpine Income Property OP, LP, the Company’s operating partnership (the “Operating Partnership” or “OP”). There were 1,703,494 OP Units held by third parties outstanding and 11,454,815 shares of the Company’s common stock outstanding, for total outstanding common stock and OP Units held by third parties of 13,158,309, as of December 31, 2021.
As of December 31, 2021, the Company’s net debt to Pro Forma EBITDA was 8.1 times, and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 6.2 times. As of December 31, 2021, the Company’s net debt to total enterprise value was 49.6%. The Company calculates total enterprise value as the sum of net debt and the market value of the Company's outstanding common shares and OP Units, as if the OP Units have been converted to common shares.
On November 22, 2021, the Company announced a cash dividend for the fourth quarter of 2021 of $0.27 per share, payable on December 30, 2021 to stockholders of record as of the close of business on December 9, 2021. The 2021 fourth quarter cash dividend represented a 5.9% increase over the Company’s previous quarterly dividend and a payout ratio of 64.3% and 65.9% of the Company’s 2021 fourth quarter FFO per diluted share and AFFO per diluted share, respectively.
During year ended December 31, 2021, the Company paid cash dividends of $1.015 per share, a 23.8% increase over the Company’s full year 2020 cash dividends. The dividends paid in 2021 represent payout ratios of 64.2% of full year 2021 FFO per diluted share and 63.8% of full year 2021 AFFO per diluted share.
The Company’s initial 2022 outlook assumes stable or improving economic activity, strong underlying business trends related to each of our tenants and other significant assumptions.
The Company’s outlook for 2022 is as follows:
Fourth Quarter 2021 Earnings Conference Call & Webcast
The Company will host a conference call to present its operating results for the quarter and year ended December 31, 2021 tomorrow, Friday, February 11, 2022, at 9:00 AM ET. Stockholders and interested parties may access the earnings call via teleconference or webcast:
Please dial in at least fifteen minutes prior to the scheduled start time and use the code 3796094 when prompted.
A webcast of the call can be accessed at: https://edge.media-server.com/mmc/p/mqy6ijb4. To access the webcast, log on to the web address noted above or go to http://www.alpinereit.com and log in at the investor relations section of the website.
About Alpine Income Property Trust, Inc.
Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality net leased commercial income properties.
We encourage you to review our most recent investor presentation which is available on our website at http://www.alpinereit.com.
This press release may contain “forward-looking statements.” Forward-looking statements include statements that may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include general business and economic conditions, continued volatility and uncertainty in the credit markets and broader financial markets, risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments and potential damages from natural disasters, the impact of the COVID-19 Pandemic and its variants on the Company’s business and the business of its tenants and the impact on the U.S. economy and market conditions generally, other factors affecting the Company’s business or the business of its tenants that are beyond the control of the Company or its tenants, and the factors set forth under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also disclose Funds From Operations (“FFO”) Adjusted Funds From Operations (“AFFO”), and Pro Forma Earnings Before Interest, Taxes, Depreciation and Amortization (“Pro Forma EBITDA”), all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.
FFO, AFFO, and Pro Forma EBITDA do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.
We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries.
To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, amortization of above- and below-market lease related intangibles, non-cash compensation, and other non-cash income. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. We use AFFO as one measure of our performance when we formulate corporate goals.
To derive Pro Forma EBITDA, GAAP net income or loss is adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, above- and below-market lease related intangibles, non-cash compensation, and other non-cash income or expense. Cash interest expense is also excluded from Pro Forma EBITDA, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions and other similar activities.
FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains or losses on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that AFFO is an additional useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. We also believe that Pro Forma EBITDA is an additional useful supplemental measure for investors to consider as it allows for a better assessment of our operating performance without the distortions created by other non-cash revenues, expenses or certain effects of the Company’s capital structure on our operating performance. FFO, AFFO, and Pro Forma EBITDA may not be comparable to similarly titled measures employed by other companies.
Alpine Income Property Trust, Inc. Consolidated Balance Sheets (In thousands, except share and per share data)
Alpine Income Property Trust, Inc. Consolidated Statements of Operations (In thousands, except share, per share and dividend data)
Alpine Income Property Trust, Inc. Non-GAAP Financial Measures Funds From Operations and Adjusted Funds From Operations (Unaudited) (In thousands, except per share data)
Alpine Income Property Trust, Inc. Non-GAAP Financial Measures Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited) (In thousands)