Alpine Income Property Trust Q4 Earnings Call Highlights

Alpine Income Property Trust (NYSE:PINE) reported what management described as a strong fourth quarter and record investment year for 2025, driven by a combination of net lease acquisitions, an expanded commercial loan program, and continued asset recycling. On the call, executives also outlined initial 2026 guidance, discussed balance sheet actions taken in late 2025 and early 2026, and announced a higher quarterly common dividend.

Fourth-quarter and full-year results

Chief Financial Officer Philip Mays said total revenue in the fourth quarter was $16.9 million, including $12.7 million of lease income and $4.0 million of interest income from commercial loan investments. Both funds from operations (FFO) and adjusted funds from operations (AFFO) attributable to common stockholders were $0.54 per diluted share, which management said represented 22.7% growth versus the comparable prior-year quarter.

For the full year, Mays reported total revenue of $60.5 million, including $48.7 million of lease income and $11.4 million of interest income. FFO and AFFO attributable to common stockholders were $1.88 and $1.89 per diluted share, respectively, which the company said represented approximately 8.6% growth over the prior year.

Management attributed earnings growth for both the quarter and year primarily to investment activity and “disciplined balance sheet management.”

Record 2025 investment activity

President and CEO John Albright highlighted $142.1 million of investments completed in the fourth quarter and a record $277.7 million of investments for the full year 2025. The company said total investments (property acquisitions plus loan originations) carried a weighted average initial yield of 11.7% in the fourth quarter and 10.3% for the full year.

Within that activity, Alpine acquired eight properties in the fourth quarter for approximately $40 million at a weighted average initial cash cap rate of 6.9%. For the full year, it acquired 13 properties for $100.6 million at a weighted average initial cap rate of 7.4%. Albright said those acquisitions reflected the company’s “strategic barbell approach,” combining investment-grade tenants such as Lowe’s and Walmart with higher-yielding investments like a headquarters and manufacturing facility for Germfree.

The company also continued its recycling strategy, selling nine noncore properties in the fourth quarter for $38.4 million at a weighted average exit cap rate of 7.7%. Full-year disposition volume totaled $72.8 million, including $67.4 million of income-producing property sales at a weighted average exit cap rate of 8%, plus $5.3 million related to vacant properties.

Portfolio composition and tenant mix

Following 2025 acquisition and disposition activity, management said 51% of annual base rent (ABR) is now generated from investment-grade rated tenants. Albright noted that Lowe’s, Dick’s Sporting Goods, and Walmart are now all within the top five tenants and collectively represent 29% of ABR.

Albright also said Walgreens now represents 4% of ABR, has fallen to the company’s ninth-largest tenant, and has five remaining locations in the portfolio. In the Q&A, Albright said there is “definitely a little more to do,” adding the company is actively working to sell an additional Walgreens property but intends to be patient in finding the right buyers rather than “sell it just to sell it.”

At year-end, Alpine’s property portfolio consisted of 127 properties totaling 4.3 million square feet across 32 states, with a weighted average lease term (WALT) of 8.4 years and 99.5% occupancy.

Commercial loan growth and the 20% allocation target

Alpine’s commercial loan platform was a major focus of the call. Albright said the company originated five commercial loan investments and amended one in the fourth quarter, totaling $102.3 million of commitments at a weighted average initial coupon of 13.5%. For the full year, the company originated $177 million of commercial loans at a weighted average initial coupon of 12%, including paid-in-kind (PIK) interest where applicable.

During the quarter, Alpine also sold a $10 million senior interest in a previously announced commercial loan secured by a luxury residential development in the Austin, Texas metro area. Albright said the sale reduced concentration in one of the company’s largest loans, and management may consider additional senior-interest sales from time to time to manage diversification and enhance net interest yield.

At year-end, Alpine’s net commercial loan portfolio was approximately $129.8 million, up from $48 million at the beginning of 2025. The company said it is targeting the commercial loan portfolio to run at approximately 20% of total undepreciated asset value over time. In response to analyst questions, Albright said 20% was viewed as a “reasonable number” that keeps the program complementary to the net lease business without becoming a distraction, and he emphasized the company does not want to “flip the script” away from its core property strategy.

Mays added that using year-end total undepreciated assets of about $770 million, a 20% allocation implies roughly $155 million to $160 million of loans, suggesting “runway” of about $25 million to $30 million above the year-end balance (noting that repayments and fundings can shift the figure). Management said it intends to maintain the 20% allocation longer term as loans repay and are redeployed.

Mays also noted that two loans totaling $7.2 million were repaid in January 2026. Separately, he discussed that three single-tenant restaurant properties acquired in 2024 through a sale-leaseback are treated as a financing under GAAP, meaning current annual cash payments of about $2.8 million are reflected as interest income rather than lease income, even though the properties are real estate for legal and tax purposes.

Capital markets, refinancings, dividend increase, and 2026 guidance

To fund activity, Alpine raised capital and refinanced its debt. Mays said the company completed a public offering on Nov. 12 of 2 million shares of Series A preferred stock at $25 per share with an 8% coupon. The offering generated $50 million in gross proceeds and $48.1 million in net proceeds.

In addition, from late fourth quarter 2025 into early first quarter 2026, the company issued equity through at-the-market (ATM) programs:

• Series A preferred ATM: just over 116,000 shares at a weighted average price of $24.92, for net proceeds of about $2.8 million
• Common stock ATM: just over 918,000 shares at a weighted average price of $17.13, for net proceeds of about $15.5 million

Mays also said the company closed a new unsecured credit facility and “completely recast” unsecured debt. The new facility includes a $250 million revolving credit facility (four-year term with two six-month extensions), a $100 million three-year term loan, and a $100 million five-year term loan. Proceeds were used to repay and retire prior facilities, leaving the company with no debt maturities for three years. Mays said pricing improved by 10 to 15 basis points and the facility provides more flexibility and borrowing capacity for commercial loan investments.

Alpine ended the year with net debt to pro forma Adjusted EBITDA of 6.7x, improved from 7.4x at the beginning of the year. Liquidity was $65.8 million (about $25.3 million of cash and $40.6 million available under the revolver), with the company noting revolver availability could expand by an additional $31.4 million with in-place bank commitments as acquisitions and loan funding occur.

Looking forward, management issued initial 2026 guidance of $2.07 to $2.11 for FFO per diluted common share and $2.09 to $2.13 for AFFO per diluted common share. Assumptions include $70 million to $100 million of investment volume and $30 million to $60 million of dispositions, with Mays noting guidance reflects dispositions generally closing earlier than acquisitions. He also said 2025 revenue included management and disposition fees tied to third-party properties supporting a portfolio loan—$221,000 in the fourth quarter and $525,000 for the year—which will not be a significant revenue source in 2026 since the assets were largely sold and the loan repaid.

Finally, Albright announced the board increased the quarterly common dividend 5.3% to $0.30 per share beginning in the first quarter of 2026. Mays said the increase was driven by earnings and taxable income growth, adding that the loan portfolio generates taxable income without depreciation to offset it. He said the new dividend level equates to a 56% AFFO payout ratio based on fourth-quarter 2025 AFFO.

About Alpine Income Property Trust (NYSE:PINE)

Alpine Income Property Trust, Inc is a publicly traded real estate investment trust that specializes in acquiring, owning and managing single-tenant net lease properties. The company focuses on sale-leaseback and build-to-suit transactions with food and beverage companies, targeting facilities that support production, distribution and processing operations. By structuring long-term, triple-net leases, Alpine Income Property Trust seeks to deliver stable, predictable cash flow while allowing tenants to unlock capital from real estate assets and reinvest in their core businesses.

The company’s portfolio is diversified across multiple U.S.