Alpine Income Property Trust Q3 2025 Earnings Report

Alpine Income Property Trust EPS Results

• Actual EPS: -$0.09
• Consensus EPS: $0.43
• Beat/Miss: Missed by -$0.52
• One Year Ago EPS: N/A

Alpine Income Property Trust Revenue Results

• Actual Revenue: $14.56 million
• Expected Revenue: $14.67 million
• Beat/Miss: Missed by -$102.00 thousand
• YoY Revenue Growth: N/A

Alpine Income Property Trust Announcement Details

• Quarter: Q3 2025
• Date: 10/23/2025
• Time: After Market Closes
• Conference Call Date: Friday, October 24, 2025
• Conference Call Time: 9:00AM ET

Alpine Income Property Trust (NYSE:PINE) is a real estate investment trust (REIT) that acquires, owns and operates a portfolio of income-producing commercial properties. The company primarily invests in single-tenant retail and office properties that are generally leased under long-term net lease agreements, under which tenants typically assume responsibility for property taxes, insurance and maintenance expenses.

Alpine’s properties are located across the United States and are leased to a range of national, regional and local tenants. Its portfolio strategy is focused on generating rental income through properties in established markets and on working with tenants that support the stability of its long-term lease portfolio.

Alpine Income Property Trust was formed in 2019 and is externally managed by CTO Realty Growth, Inc., another publicly traded real estate company. The trust is led by John P. Albright, who also serves as president and chief executive officer of CTO Realty Growth. Alpine operates as a REIT and generally must distribute a substantial portion of its taxable income to shareholders to maintain its tax status.

Alpine Income Property Trust Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Surge in short-duration loan originations is generating high yields; management says these loans are repeatable, accretive, and can be financed by selling senior pieces to third parties.
• Neutral Sentiment: Funding for recent investments will come from a mix of asset sales, loan maturities and A‑note/senior-piece sales, with most proceeds expected to be redeployed into new loans while leverage may modestly decline.
• Positive Sentiment: Dispositions are reducing operating drag — the Reno theater sale cut roughly $400k of annual expenses and sale of the former Party City would remove about another ~$400k when completed.
• Negative Sentiment: The percentage of credit‑rated (investment‑grade) tenants fell materially due to downgrades at tenants like At Home and Walgreens, increasing portfolio credit risk.

Presentation

[Operator]

Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press star one-one on your telephone. If your question has been answered, you may remove yourself from the queue. Please press star one-one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Michael Goldsmith with UBS. Your line is open.

[Michael Goldsmith, Analyst at UBS]

Good morning. Thanks a lot for taking my questions. A lot of investment activity, both during the quarter and subsequent to quarter end. Can you just provide a little color in how you're thinking about funding all of this activity?

[John Albright, CEO at Alpine Income Property Trust]

Hey, Michael. It's John. Thanks. You know, look, we, as you know, we've been very busy on the recycling side. Some of that's going to come from asset sales as we keep on continuing to increase the credit quality of our portfolio, and then a little bit of this is our loans maturing. Basically, a little bit is going to be net growth in anticipation of additional sales. A little bit of balance on both sides.

[Michael Goldsmith, Analyst at UBS]

Got it. Thanks for that, John. You know, all this loan activity, you're seeing really nice yields on that. I guess the way it cuts the other way is it can generate lumpiness in the quarters as they come due. Can you talk a little bit about how you're thinking about managing that and lease expiration and these loan expirations just to ensure the AFFO doesn't move around too much?

[John Albright, CEO at Alpine Income Property Trust]

Yeah. Obviously a good question. I mean, when we started this kind of loan program about three years ago, that was a little bit of the pushback, was, well, you can't replace these loans at these rates. Here we are, we're doing it with really existing relationships without even trying. Certainly, as we see more opportunities, part of that funding mechanism that Phil mentioned is selling off a senior pieces of these loans. These loans are very bite size, and there's a lot of capital out there. There's a lot of opportunity. I would say I'm not worried about replacing these and having kind of earnings coming down because these are one-time sort of opportunities. We're seeing a strong pipeline of super high-quality kind of assets and sponsorships.

[Michael Goldsmith, Analyst at UBS]

Got it. If you're doing this without really trying, it's exciting to see what you do when you put some effort into it. I'm just kidding. Thank you very much. Good luck in the fourth quarter.

[John Albright, CEO at Alpine Income Property Trust]

Thank you.

[Operator]

One moment for our next question. Our next question comes from RJ Milligan with Raymond James. Your line is open.

[RJ Milligan, Analyst at Raymond James]

Hey, good morning, guys. John, with the recent activity now in residential development, I think you guys have a loan in industrial. Can you tell us how you're thinking about other property types and if you're going to continue to pursue things outside of retail?

[John Albright, CEO at Alpine Income Property Trust]

Yeah. It's not, it's not, you know, by design going out here, just these, you know, unique opportunities with very strong sponsors and very, you know, strong assets. The industrial property that we did in Fremont outside of San Francisco, that was actually a retail property that the sponsor is basically converting to industrial to a higher and best use. Under part of our underwriting on that is if we ever had to foreclose as roughly, you know, 50% of the acquisition, it could still be retail and work on our basis. To answer your question, we're going to stay more focused on the retail side for sure. If we see unique opportunities and they're short duration, we're not opposed to taking on those opportunities.

[RJ Milligan, Analyst at Raymond James]

Okay. That's helpful. Phil, you talked about some of the sources of capital next year, some of the loan maturities, potential asset sales. Should we expect that to get reinvested or will those proceeds be used to pay down debt, lower leverage? You know.

[Philip Mays, CFO at Alpine Income Property Trust]

A little bit of both, but I think first they're going to get reinvested into a lot of the loans that were recently done, RJ. The maturities coming back from the 2026 loans are going to, we're just kind of proactively redeploying that capital a little early with the loans going out first, the new loans going out first. A lot of that's going to just recycle into that. On the margin, you could see leverage take down a little bit.

[RJ Milligan, Analyst at Raymond James]

Okay. That's helpful. Thanks, John.

[Operator]

Thanks. One moment for our next question. Our next question comes from Alex Fagan with Baird. Your line is open.

[Alex Fagan, Analyst at Baird]

Good morning, and thanks for taking my question. On the luxury residential development in Austin, can you talk about how you got comfortable with the loan and what stage of development it currently is at?

[John Albright, CEO at Alpine Income Property Trust]

Yeah. We're familiar, if you think back at our origins of CTO and when I got here 14 years ago, we had 14,000 acres of land in Daytona Beach to sell. We are very familiar with residential lot developments through that experience. With regards to kind of where this project is, it's really at the finish line of delivering lots. Actually, there'll be some lot sales starting next week, in fact. It's really kind of coming in at the late stage and not on the early stage.

[Alex Fagan, Analyst at Baird]

Nice. On that loan, how much of the loan are you looking to sell?

[John Albright, CEO at Alpine Income Property Trust]

Probably look to sell potentially 50% of it. It really depends on how fast the proceeds come back. It could be less, but potentially 50% up to 50%.

[Alex Fagan, Analyst at Baird]

Nice. Switching gears a bit, with the vacant assets that were sold in the quarter, how much do we need to remove from operating expenses that you're carrying?

[Philip Mays, CFO at Alpine Income Property Trust]

Yeah. This is Phil. The two largest vacant properties we have are the Theater Reno, which was sold, that had an annual run rate on the expense side of about $400,000. The one that we have left that's large is the former Party City that also has a run rate of close to $400,000 on an annual basis. If you were to run rate the current quarter, that'll come down another about $400,000 on an annual basis once Party City is sold.

[Alex Fagan, Analyst at Baird]

Wait, and Party City wasn't sold this quarter?

[Philip Mays, CFO at Alpine Income Property Trust]

It was not. Reno was sold in the quarter. It was sold early in the quarter, so pretty much the full impact of that is reflected. Party City is not sold yet.

[Alex Fagan, Analyst at Baird]

Okay. There were two vacant assets sold in the quarter. Is the other one just minor?

[Philip Mays, CFO at Alpine Income Property Trust]

Yeah. We have, no, those are the two largest, Reno and Party City. We have a few. We had former convenience stores that are really small. We sold one during the quarter. There's two left. Altogether, those don't even come up to $100,000 on an annual run rate. They're very small and on the margin.

[Alex Fagan, Analyst at Baird]

Got it. Thank you, guys.

[Operator]

Thank you. One moment for our next question. Our next question comes from Rob Stevenson with Janney Montgomery Scott. Your line is open.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Good morning, guys. Is the sale of the large loan interest that you may do, is that in the disposition guidance, or are dispositions just properties in terms of the guidance?

[Philip Mays, CFO at Alpine Income Property Trust]

If we were, it's not, it would be on the high end, Rob, if that happened, or exceeding the high end if it happens before the end of the year. The timing on it is a little hard to predict. It could be just before the end of the year, or it could be a little bit after the end of the year. If it were to happen before the end of the year, that would put us on the high end or over the high end of guidance on the dispos side.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. You would classify that as a disposition?

[Philip Mays, CFO at Alpine Income Property Trust]

Yes. We've historically put dispositions of loans with properties there. If you look at guidance, we kind of added a line for that, a little bucket, when we put year-to-date actuals. There was a line that had loan sales and it showed zero, just to kind of help clarify that we do kind of look at that as a disposition. If the loan one were to happen, we would probably be just over our high end.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. The reason why I ask is if I look at the year-to-date investment and disposition volumes versus the guidance, they're sort of implying between $50 million and $65 million of net investments in the fourth quarter. You've got $27.5 million in terms of rough numbers from the proceeds from the repayment of Publix and Verizon. Just trying to figure out how you're going to finance that, especially given where the stock price is. I don't know, John, if you're comfortable issuing equity here or whether or not you guys just use the line, but was sort of curious as to how you guys are thinking about the sort of incremental there and where does sort of leverage peak out at here in the fourth quarter, if you do decide to fund any of those net investments on the line?

[Philip Mays, CFO at Alpine Income Property Trust]

Yeah. Just before, I'll let John answer. On the investments, you know, we always put the full amount for the properties, obviously. For the loans, we put the origination or the initial amount committed. You know, today we're sitting at almost $200 million if you include all the subsequent activity on investments. Of that, $130 million, $135 million is loans, Rob, but only $72 million have funded so far. We also, in the guidance, put in brackets there kind of on the loans just to help clarify because it's a great question, you know, how much of the loans have funded year to date. The full amount of that won't fund because the loans won't fully fund by the end of the year.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. The net would wind up being lower than that sort of $50 million-$65 million that you're implying because that's including the full value?

[Philip Mays, CFO at Alpine Income Property Trust]

Yeah, I mean, there could be $50 million, $60 million of that that's loans that are not funded.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. That's helpful because it was looking like the leverage was going to peak out at something more substantial here if you guys did it all on the line.

[Philip Mays, CFO at Alpine Income Property Trust]

There could be $50 to $60 million of that number that's loan-related that's unfunded by year-end. On top of that, you could also see like an A note sale prior to the end of the year that would further help lighten that load for the funding.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. John, what is sort of left within the property portfolio that you want to sell? Is this going through and, you know, sort of cleaning up anything remaining? Is it whittling down some of the dollar stuff? How are you thinking about, you know, when you look at dispositions, not only in the fourth quarter, but in 2026, what are you sort of thinking that you're going to wind up selling? You know, where is the market for those types of assets today?

[John Albright, CEO at Alpine Income Property Trust]

Yeah. As we discussed previously, we still have some Walgreens that we definitely are moving through. We, you know, dollar stores, as you hit on, certainly will be something we'll trim back on. There's some other, you know, that we've sold, Advance Auto Parts and that sort of things and Tractor Supply. Those sort of assets will continue to kind of grind through, if you will, as we see good pricing. It's just really using that as a way to kind of reinvest in some of the high credits that we put on this quarter, and loans and so forth. You'll see us be active at the end of the year here with continuingly bringing in some real super high-quality type credits. We're looking forward to kind of what this company looks like starting next year.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Given the acquisition of the Lowe’s, was that opportunistic or, just from your standpoint, is the property acquisitions going forward going to be more targeted towards the higher credit quality and basically investment grade and above quality tenants? Are you still looking to acquire stuff across the spectrum on a property-specific basis?

[John Albright, CEO at Alpine Income Property Trust]

Yeah. On the Lowe’s, that was off-market. It was relationship-driven. We had seen these assets before, a couple of years ago, and they were pulled off the market. We’re extremely excited about having those in our portfolio. With regards to, you’ll see more of the high-quality, credit, big box sort of assets coming in. You probably won’t see us be active in buying a generic tractor supply. Clearly, we don’t have any car washes. We like that distinction, that no car washes in the portfolio. We feel like we’re set up pretty strong to kind of offer investors something a little bit different. Getting the Lowe’s and DICK’s in the top five just gives investors an exposure that they can’t get in other locations.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. Last one for me, is all of Beachside open and producing at this point, or is there still some of that stuff that's down, and that you're getting insurance payments on?

[John Albright, CEO at Alpine Income Property Trust]

No, it's all been open for a while. I mean, they opened those up less than four months after the hurricane last year. Interestingly enough, they still, when they opened, they weren't obviously as polished looking as they were previous to the hurricane, but they did better sales than they did pre-hurricane. A lot of pent-up demand from customers and, unfortunately, some of their competition did not reopen. It just kind of drove more traffic to those restaurants.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. Rent coverage today is actually higher than where it was pre-hurricane?

[John Albright, CEO at Alpine Income Property Trust]

Yes.

[Rob Stevenson, Analyst at Janney Montgomery Scott]

Okay. Thanks, guys. Appreciate the time and have a great weekend.

[John Albright, CEO at Alpine Income Property Trust]

You too.

[Operator]

One moment for our next question. Our next question comes from Gaurav Mehta with Alliance Global Partners. Your line is open.

[Gaurav Mehta, Analyst at Alliance Global Partners]

Thank you. Good morning. I wanted to ask you if you had any update on your properties that are leased to At Home?

[John Albright, CEO at Alpine Income Property Trust]

Yes. Those properties, as we kind of, the one is in Concord, North Carolina, that could be sold in the not too distant future. The others are a same situation where we're monitoring what At Home's doing. If they come back, we're working on replacement tenants. The idea would be if At Home vacated one of the properties, we would have a replacement tenant in, and then we would sell it at a better cap rate than as an At Home. It's a manageable exposure and potential upside.

[Gaurav Mehta, Analyst at Alliance Global Partners]

Okay. Second question. I want to go back to the two loans that you did after September. The interest rates on both of them are higher than the year-to-date loan activity. Can you provide some color on why the rates were higher at 17% and 16%?

[John Albright, CEO at Alpine Income Property Trust]

Phil, you want to handle it?

[Philip Mays, CFO at Alpine Income Property Trust]

Yeah, he was just asking about why the interest rates on the residential and the mixed-use are significantly higher than the blended rate for the portfolio.

[John Albright, CEO at Alpine Income Property Trust]

Yeah. On that, basically, because it's such a short-duration loan, to give you more background than maybe you want, the competition for a loan for that sort of product would be mainly from an opportunity fund or a credit fund. Those funds really aren't looking to invest where the duration is less than two years in order to get a multiple. We're able to give a highly flexible loan, but for that, we charge a much higher rate. Just the flexibility of our loan and the short duration gives us that higher interest rate investment.

[Gaurav Mehta, Analyst at Alliance Global Partners]

All right. That's all I had. Thank you.

[Operator]

One moment for our next question. Our next question comes from John Massocca with B. Riley Securities. Your line is open.

[John Massocca, Analyst at B. Riley Securities]

Good morning.

[John Albright, CEO at Alpine Income Property Trust]

Morning.

[John Massocca, Analyst at B. Riley Securities]

Given all of the investment activity on the loan front, particularly subsequent to quarter end, do you view that as maybe kind of the max level you want to be at in terms of a loan balance if this all kind of blends out? Or could you pursue more of that and become, I guess, maybe more of like a mixed loan net lease type REIT? It feels like the amount of loan investments are starting to, certainly in terms of the investment activity, outweigh the net lease transactions.

[John Albright, CEO at Alpine Income Property Trust]

I would say that it just kind of really came together here this last quarter. The loan activity could tick up from here for sure, as it's a little bit in anticipation of things burning off, paying down, paying off. We are super active on the core net lease side with larger type assets. You'll see this similar balance, but we think we're delivering, and we know we're delivering, really strong free cash flow and high earnings. There are other net lease REITs out there that do the loan program as well. You have REITs like Vichy that have a balance of net lease and loans. It's not like we're in a new frontier here.

[John Massocca, Analyst at B. Riley Securities]

No, it's true. I just remember thinking, and maybe I'm misremembering, the loans were kind of an opportunistic thing a couple of years ago, and now it feels like they've become a bigger part of the investment strategy. I'm wondering if that's something you view as permanent on a go-forward basis or if it's still something that's temporary where you found this kind of opportunistic way to accretively deploy your capital even in a, you know, a challenged equity market.

[John Albright, CEO at Alpine Income Property Trust]

No, it's definitely a good point. Yeah. When we were opportunistically thinking that it was like a one-time opportunity, it's become repeat. Customers are coming back to us because of the flexibility and the speed that we can transact on. They're willing to pay a higher rate. As you know, we get right of first refusal on acquiring these assets. If the market stalls and cap rates tick up, we have the opportunity to bring these into our portfolio. Like I've said before, we're getting paid a much higher yield than going out and buying some sort of generic net lease property out in the middle of nowhere. We're basically in Austin with very opportunistic type yields with very high-quality sponsor and high-quality asset. The Publix that we had pay off in Charlotte, a Publix in Charlotte, I think that paid off because they sold it at a 5.25% cap.

[John Albright, CEO at Alpine Income Property Trust]

These are, we're getting double-digit unlevered yields on assets that will sell for really, really low cap rates. It's great to see the opportunities that we're able to kind of, it's become more of a permanent fixture as the sponsors are still very active in the development side on these credit tenants. The banking system just really is slower, less proceeds. We're just basically providing an answer to their capital needs in a much more efficient fashion.

[John Massocca, Analyst at B. Riley Securities]

Okay. Understood. Maybe on a very micro level, with Cornerstone Exchange, pretty significant jump up in the amount you're kind of lending on that project. Why, I guess, maybe why did it increase by so much?

[John Albright, CEO at Alpine Income Property Trust]

They ended up signing some additional leases. As they've proven out their development with leases, we wouldn't loan on it until they have a signed lease. That's what happened. The development's gotten larger as they've signed leases.

[John Massocca, Analyst at B. Riley Securities]

Yep. That makes sense, and that's it for me. Thank you very much.

[John Albright, CEO at Alpine Income Property Trust]

Great. Thanks.

[Operator]

One moment for our next question. Our next question comes from Craig Kucera with Lucid Capital Markets. Your line is open.

[Craig Kucera, Analyst at Lucid Capital Markets]

Yeah. Hey, good morning, guys. John, I want to circle back with a few questions on the Austin loans. It sounds like you're not taking any entitlement or approval risk, at least on phase one. Is that a fair assessment? Does phase two need to be approved?

[John Albright, CEO at Alpine Income Property Trust]

It's a fair assessment on both. You know, the entitlements are there for both phases and everything needed to basically deliver.

[Craig Kucera, Analyst at Lucid Capital Markets]

Okay. Great. What is the current LTV at those loans, you know.

[John Albright, CEO at Alpine Income Property Trust]

I would put that one in kind of on a discount MTV basis, we're in the 70s.

[Craig Kucera, Analyst at Lucid Capital Markets]

Okay, if you were to sell the senior tranche or a portion of those loans, and I think Phil mentioned it might be upwards of 50%, what would your yield be if you're holding the junior piece?

[John Albright, CEO at Alpine Income Property Trust]

You know.

[John Albright, CEO at Alpine Income Property Trust]

I don't want to go out there. I mean, it'll be higher. I don't want to give you specific numbers.

[Craig Kucera, Analyst at Lucid Capital Markets]

Fair enough. All right. Changing gears, to Lake Coxway, mixed-use development. Is that just raw land now, or has the developer started, or kind of where in the process is that development?

[John Albright, CEO at Alpine Income Property Trust]

Yeah. The developer has started. We're coming in when they really need to start doing some additional work and delivering pads and that sort of thing.

[Craig Kucera, Analyst at Lucid Capital Markets]

Okay. That's it for me. Thanks, guys.

[John Albright, CEO at Alpine Income Property Trust]

Thank you.

[Operator]

One moment for our next question. Our next question comes from Barry Oxford with Colliers International. Your line is open.

[Barry Oxford, Analyst at Colliers International]

Great. Thanks, guys. John, real quick, a couple of questions on the dividend. Given what I'm hearing on the conference call, you want to retain as much capital as possible. Is it fair to say that, you know, even though you could raise the dividend, for lack of a better word, substantially, any dividend increase will probably be minimal because you want to retain as much capital from an asset allocation?

[John Albright, CEO at Alpine Income Property Trust]

That's right. As we progress here and earnings grow, there'll be pressure to raise a dividend just based on what we need to pay out as a REIT.

[Barry Oxford, Analyst at Colliers International]

Right. You don't run afoul of the REIT rules.

[John Albright, CEO at Alpine Income Property Trust]

We don't want to pay a check to the IRS. We'd rather give it to our shareholders.

[Barry Oxford, Analyst at Colliers International]

Right. One thing that I noticed in the press release was the credit-rated tenants. Now, your investment-grade tenants, the percent of the portfolio was still roughly the same, but you had a fairly good drop with the credit-rated tenants. What was going on there?

[Philip Mays, CFO at Alpine Income Property Trust]

Just the credit-rated as a % of the total portfolio. At the end of the last quarter, it was 51%.

[Barry Oxford, Analyst at Colliers International]

Yeah, it went from 81% to 66%.

[Philip Mays, CFO at Alpine Income Property Trust]

Oh, from the credit-rated.

[Barry Oxford, Analyst at Colliers International]

Yeah, the credit is fine.

[Philip Mays, CFO at Alpine Income Property Trust]

That was more, Barry, that's more the Walgreens and the like that used to have a credit rating dropping them that were very, very low and had gone from credit rated to, you know, not or from investment-grade to not investment-grade, but were still carrying a rating. It's more for, related to a couple of tenants like that, like At Home, Walgreens, and such, dropping the credit rating altogether. That's what caused that decrease.

[Barry Oxford, Analyst at Colliers International]

Okay. Makes sense. All right, guys. Thanks. Have a good weekend.

[Philip Mays, CFO at Alpine Income Property Trust]

You're welcome.

[John Albright, CEO at Alpine Income Property Trust]

Thanks.

[Operator]

I'm not showing any further questions at this time. As such, this does conclude today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.

Participants

Executives

• John Albright, CEO
• Philip Mays, CFO

Analysts

• Gaurav Mehta, Analyst at Alliance Global Partners
• Barry Oxford, Analyst at Colliers International
• John Massocca, Analyst at B. Riley Securities
• Michael Goldsmith, Analyst at UBS
• Rob Stevenson, Analyst at Janney Montgomery Scott
• RJ Milligan, Analyst at Raymond James
• Alex Fagan, Analyst at Baird
• Craig Kucera, Analyst at Lucid Capital Markets