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    PINE
    Earnings call· Jun 2026(Q2 FY26)

    Alpine Income Property Trust, Inc. PINE

    Jul 24, 2026 Source

    Executive summary

    Alpine Income Property Trust Q2 FY26 — Strong AFFO Growth and Strategic Portfolio Enhancement

    Alpine Income Property Trust delivered robust Q2 FY26 results, driven by strategic acquisitions and high-yield commercial loan originations, significantly boosting AFFO per share. The company enhanced its portfolio credit quality and increased its common dividend, while proactively managing its debt profile. Management remains focused on high-quality net lease investments and opportunistic loan placements, despite a slight reduction in disposition expectations due to timing.

    Highlights

    5

    • AFFO per diluted share grew 32% year-over-year to $0.58.

    • Total investment activity reached $77 million at a blended initial yield of 8.7%.

    • ABR from investment-grade tenants increased from 50% to 55% of the portfolio.

    • Quarterly common dividend increased by 6.7% to $0.32 per share, representing a 55% AFFO payout ratio.

    • Net debt to pro forma adjusted EBITDA improved to 6.4x from 6.6x last quarter.

    Concerns

    3

    • Full-year disposition volume expectations lowered to $20 million-$40 million from $30 million-$60 million due to timing issues with lease extensions.

    • Q2 AFFO included a non-recurring $300,000 (approx. $0.02/share) non-refundable deposit from a terminated property sale contract.

    • Interest expense increased due to SOFR swap rate moving up 130 basis points for $100 million of debt, with another similar increase expected in Q1 FY27.

    Guidance & targets

    4
    CategoryTargetConfidence
    FFO per diluted share
    $2.10 to $2.13
    high materiality
    High
    AFFO per diluted share
    $2.12 to $2.15
    high materiality
    High
    Investment volume assumption
    $170 million to $200 million
    medium materiality
    Medium
    Disposition volume expectations
    $20 million to $40 million
    medium materiality
    Medium

    Operational metrics

    27
    FFO per diluted share
    $1.1025% growth YoY
    6 months ended June 30

    FFO for the 6 months ended June 30th.

    AFFO per diluted share
    $1.1126% growth YoY
    6 months ended June 30

    AFFO for the 6 months ended June 30th.

    Total revenue
    $38.4 million
    6 months ended June 30

    Total revenue for the 6 months ended June 30th.

    Lease income
    $25.2 million
    6 months ended June 30

    Lease income for the 6 months ended June 30th.

    Interest income from commercial loans
    $13.1 million
    6 months ended June 30

    Interest income from commercial loans for the 6 months ended June 30th.

    Other income (non-refundable deposit)
    $300,000
    Q2 FY26

    Non-refundable deposit received upon termination of a contract to sell an At Home property.

    ATM Common Stock Issued
    1.1 million shares
    Q2 FY26

    Issued under common stock ATM program.

    ATM Preferred Stock Issued
    156,000 shares
    Q2 FY26

    Issued under Series A preferred ATM program.

    Total ATM Net Proceeds
    $61.7 million
    YTD

    Combined net proceeds from ATM programs year-to-date.

    Common Shares and Units Outstanding
    18,819,000
    Q2 FY26 end

    Total common shares and units outstanding at quarter end.

    Preferred Shares Outstanding
    2,426,000
    Q2 FY26 end

    Total preferred shares outstanding at quarter end.

    Debt Outstanding
    $369.5 million
    Q2 FY26 end

    Total debt outstanding at quarter end.

    Weighted Average Interest Rate
    4.38%
    Q2 FY26 end

    Weighted average interest rate on debt outstanding.

    Available Liquidity
    $83 million
    Q2 FY26 end

    Available liquidity at quarter end.

    SOFR Swap Rate Change (2029 term loan)
    130 bpsincrease
    May 2026

    SOFR swaps associated with 2029 term loan matured and were replaced at a higher rate.

    SOFR Swap Rate Change (2031 term loan)
    130-140 bpsincrease
    end of January

    Another swap will move up towards the end of January.

    Annualized Straight-Line Base Rent
    $50 million
    Q2 FY26 end

    Annualized straight-line base rent for the property portfolio.

    Financing Lease ABR
    $6.3 million
    Q2 FY26 end

    Annualized base rent from properties accounted for as financings.

    Financing Lease Cash Base Rent
    $5.1 million
    Q2 FY26 end

    Annualized in-place cash base rent from properties accounted for as financings.

    Prospective Quarterly Base Management Fee
    just over $1.4 million
    quarterly run rate

    Prospective quarterly run rate for base management fee based on equity issued.

    Commercial loan portfolio target
    20%
    ongoing

    Targeted level for the commercial loan portfolio.

    Loan-to-Cost (Development Loans)
    80%+
    ongoing

    Loan-to-cost target for development loans.

    Loan-to-Value (Development Loans, post-development)
    70-75%
    post-development

    Expected LTV after development and sale of pads/anchor.

    Investment Activity YTD
    $150 million
    YTD

    Investment activity year-to-date, mentioned in context of full-year guidance.

    Party City Vacancy Status
    —
    Q2 FY26

    Only real vacancy, lease signed with new tenant, awaiting permitting for income production.

    Quarterly Common Dividend
    $0.326.7% increase
    Q3 FY26

    Board authorized increase in quarterly common dividend.

    Quarterly Preferred Dividend
    $0.50
    Q3 FY26

    Quarterly cash dividend on preferred stock.

    Industry KPIs

    5
    MetricValueDetails
    Occupancy rate99.5%%
    Disposition volume$20 million-$40 millionUSD
    Investment volume closed$36.6 millionUSD
    Net debt adjusted EBITDA6.4xx
    Ffo core ffo normalized ffo per share$0.58USD/share

    Orderbook & backlog

    1
    Unfunded Commercial Loan Commitments$85.4 millionQ2 FY26 end

    Approximately 50% chance of full funding, as borrowers may find alternative financing or sell property before full draw.

    Deals & partnerships

    4
    ALDI, HomeGoods, PetcoAcquisition of a 3-property portfolio$36.6 million9.2 years WALT

    Acquisition of a portfolio of 3 properties leased to ALDI, HomeGoods, and Petco.

    Lowe'sAcquisition of a ground-leased property

    Acquisition of a property ground-leased to Lowe's.

    Alamo Drafthouse (Sony Group Corporation subsidiary)Acquisition of a ground-leased property

    Acquisition of a property ground-leased to Alamo Drafthouse, a subsidiary of A-plus rated Sony Group Corporation, located in Denver.

    Not stated (Publix-anchored retail development)Origination of a new first mortgage loan$40 million

    Originated a new first mortgage loan, following a similar grocery shadow-anchored development loan in Q1.

    Risks & headwinds

    4
    Disposition Timing and Value OptimizationFY26

    Full-year disposition guidance lowered to $20 million-$40 million from $30 million-$60 million.

    Mitigation: Delaying dispositions to allow for lease extensions and renewals to achieve better cap rate valuations and extract more value from properties.

    Non-Recurring Revenue Impact on EarningsQ2 FY26 (one-time)

    $300,000 (approx. $0.02/share) of other income in Q2 FY26.

    Mitigation: Acknowledged as a one-time item; future earnings run rate adjusted to exclude this non-recurring benefit.

    Rising Interest Expense from SOFR SwapsOngoing, with another increase in Q1 FY27

    130 bps increase on $100 million of SOFR swaps (from 2.05% to 3.36%) in May 2026. Another 130-140 bps increase expected for 2031 term loan swap in Q1 FY27.

    Mitigation: Refinanced credit facility earlier in the year, pushing out debt maturities until 2029, providing longer-term stability despite higher swap rates.

    Uncertainty of Unfunded Loan DrawdownsNext 6 months (for most significant draws)

    $85.4 million in unfunded loan commitments.

    Mitigation: Recognized that there's a 50-50 chance borrowers may not fully draw if they find alternative financing or sell properties, potentially leading to early termination fees.

    What to watch in Q3 FY26

    5

    Disposition Volume Execution

    Next quarter
    Current$0 million (Q2 FY26)
    TargetProgress towards $20M-$40M full-year target

    Why it matters

    Indicates ability to recycle capital and optimize portfolio value through strategic sales.

    However, we are lowering our disposition volume expectations to a new range of $20 million to $40 million from the previous range of $30 million to $60 million.

    Q&A highlights

    7

    Will the loan portfolio exceed the 20% cap, and how will net lease acquisitions be funded?

    The loan portfolio will not exceed 20% long-term, with current pipeline focused on net lease. Acquisitions will be funded by the credit line, disposals, and potentially ATM programs.

    “you won't see the loan portfolio get above 20%. If it does, it's only a timing issue. It goes above 20%, but then we have some payoffs coming, which we do have some payoffs coming.”

    asked by Jay Kornreich · answered by John Albright

    2 min read5 chapters

    Detailed Narrative

    01

    Portfolio Composition and Quality

    The property portfolio now comprises 128 properties totaling 4.5 million square feet across 31 states, maintaining a high occupancy rate of 99.5% and a weighted average remaining lease term (WALT) of 9.2 years. The company's focus on high-quality tenants is evident, with 55% of annualized base rent (ABR) derived from investment-grade-rated tenants, up from 50% due to recent acquisitions being 84% investment-grade. Four of the top five tenants are now investment-grade-rated.

    02

    Commercial Loan Strategy

    The commercial loan portfolio, consisting of 13 loans with an outstanding face amount of $167 million and a 13.2% weighted average coupon, remains at its targeted level of approximately 20% of total undepreciated asset value. This strategy complements the property portfolio by increasing overall asset yield, with new originations focused on development loans for high-quality assets like Publix-anchored retail. The company targets 80%+ loan-to-cost for these development loans, expecting 70-75% LTV post-development.

    03

    Capital Recycling and ATM Utilization

    The company actively recycled capital, receiving full repayment of $8 million in commercial loans at an 8% yield, which was redeployed into higher-yielding investments. Opportunistic use of ATM programs raised $21.7 million from common stock and $3.9 million from preferred stock in the quarter, contributing to $61.7 million year-to-date net proceeds to fund investment activity. This capital market activity supports the robust investment pipeline.

    04

    Dividend Policy and Payout

    Reflecting strong earnings growth and a positive taxable income outlook, the Board authorized a 6.7% increase in the quarterly common dividend to $0.32 per share, effective Q3 2026. This new rate represents a conservative 55% AFFO payout ratio on Q2 2026 AFFO, indicating strong dividend coverage and commitment to shareholder returns. The quarterly cash dividend on 8% Series A preferred stock was $0.50 per share.

    05

    Accounting for Financing Leases

    The company's portfolio includes 5 properties (4 sale-leaseback, 1 sales-type lease, including the Alamo Drafthouse acquired this quarter) that, while real estate for legal and tax purposes, are accounted for as financings under GAAP. These properties represent 12.6% of straight-line ABR ($6.3 million) and 10.6% of annualized in-place cash base rent ($5.1 million), with cash payments recorded as interest income rather than lease income.

    AI-generated summary of the company’s earnings call. Not investment advice.