Alpine Income Property Trust Q1 2025 Earnings Report

Alpine Income Property Trust EPS Results

• Actual EPS: $0.44
• Consensus EPS: $0.43
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: N/A

Alpine Income Property Trust Revenue Results

• Actual Revenue: $14.21 million
• Expected Revenue: $13.93 million
• Beat/Miss: Beat by +$280.00 thousand
• YoY Revenue Growth: N/A

Alpine Income Property Trust Announcement Details

• Quarter: Q1 2025
• Date: 4/24/2025
• Time: After Market Closes
• Conference Call Date: Friday, April 25, 2025
• Conference Call Time: 9:00AM ET

Alpine Income Property Trust (NYSE:PINE) 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. markets, with properties leased to a range of national and regional food and beverage operators. Alpine Income Property Trust pursues assets that exhibit strong location fundamentals, creditworthy tenants and opportunities for lease escalations over time. Its internally managed platform handles sourcing, underwriting, asset management and property oversight, enabling streamlined decision-making and alignment between management and shareholders.

Alpine Income Property Trust commenced operations in late 2020 through its initial public offering and trades on the New York Stock Exchange under the ticker symbol “PINE.” Since inception, the company has built a portfolio of core net lease properties through targeted acquisitions. Its management team brings extensive experience in real estate finance, investment analysis and structured leasing transactions, with a strategic focus on disciplined growth and tenant diversification.

With a concentration on food and beverage real estate, Alpine Income Property Trust aims to capitalize on the stability of essential consumer products and the value created through sale-leaseback partnerships. The company continues to evaluate additional acquisition opportunities and lease structures designed to enhance income visibility, support long-term lease commitments and promote sustainable portfolio expansion across key U.S. markets.

Alpine Income Property Trust Q1 2025 Earnings Call Transcript

Key Takeaways

• AFFO of $0.44 per diluted share in Q1 rose about 5% year-over-year, and Alpine increased its quarterly dividend to $0.0285, marking its annual upsizing streak since IPO.
• Q1 investment activity totaled $79.2 million at a 9% average initial yield, comprising three property acquisitions (8.6% cap rate) and structured financings (9.5% yield) to diversify the portfolio.
• Portfolio weighted average lease term (WALT) extended to 9 years from 6.9 years year-over-year, as long-term lease acquisitions (14.3 years) and targeted disposals (4.7 years) bolster income stability and reduce concentration.
• Two non-income assets—a Reno theater and a Party City—resulted in an impairment provision and will eliminate roughly $0.08 in quarterly AFFO until those properties are sold.
• Full-year FFO and AFFO guidance was raised to $1.74–$1.77 per share (from $1.70–$1.73), driven by active capital deployment, about $7.6 million in share buybacks, and a $50 million SOFR swap fixed at 3.43%.

Presentation

[Operator]

Good day, and welcome to the Alpine First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call may be recorded.

[Operator]

I would now like to turn the call over to Jenna McKinney, Director of Finance. Please go ahead.

[Jenna McKinney, Director of Finance at CTO Realty Growth]

Thank you. I would like to remind everyone that many of our comments today are considered forward looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward looking statements, and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10 ks, Form 10 Q and other SEC filings. You can find our SEC reports, earnings release and most recent investor presentation, which contain reconciliations of the non GAAP financial measures we use, on our website at www.alpinereit.com.

[Jenna McKinney, Director of Finance at CTO Realty Growth]

With that, I will turn the call over to John.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Thanks, Jenna. The first quarter was an excellent start to the year for Pine across all areas of our business. Starting with earnings, we achieved AFFO of $0.44 per diluted share for the quarter, representing growth of approximately 5% compared to the first quarter of last year. As previously announced, this growth in earnings and free cash flow provided support for us to raise our common dividend to a new quarterly rate of $0.02 $85 paid in the first quarter, continuing Pine's practice of increasing its annual dividend every year since its IPO. Further, Pine's dividend yield continues to be one of the highest in the sector.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Driving our earnings growth was another successful quarter of investment activity. During the quarter, we acquired three properties for $39,700,000 at a weighted average initial cap rate of 8.6%. We also originated two mortgages plus upsized two existing ones for a combined total of $39,500,000 with a weighted average initial yield of 9.5%. The company's total investment activity for the quarter, including both property acquisitions and structured finance investments totaled 79,200,000 at weighted average initial yield of 9%. Our property acquisitions include Alamo Drafthouse Theatre, co signed by its owner, Sony Pictures with an investment grade credit and Academy Sports and the headquarters and manufacturing facility for Germfree Labs.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Our structured financings in the quarter included $6,200,000 of seller financing for a property leased to At Home that was sold in the quarter, a new $15,500,000 construction loan and upsizing two existing construction loans, one for Wawa and the other for a Publix anchored center. During the quarter, we sold three properties for $11,700,000 including an O'Reilly's, a multi tenanted property including an At Home and a former Valero convenience store at a blended cap rate of 9.1%. Our transaction activity in the first quarter reflects our strategic approach to investing focused on buying a mix of high credit tenants that provide consistent stable cash flows and lesser credits that offer growth and diversification. Continuing to augment and complement our property investments by selectively originating structured investments. Opportunistically selling properties that reduce portfolio risk and improve our industry and tenant concentrations and extending our WALT.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Notably, this quarter's acquisitions had an average WALT of fourteen point three years, while the properties that we sold had a WALT of four point seven years. With this activity, our portfolio WALT is now nine years compared to six point nine years just twelve months ago. Additionally, as Pines common shares have been trading at attractive relative valuation, we have been opportunistically repurchasing shares as Phil will discuss. Finally, I want to provide some context relating to the recent tariff volatility and uncertainty. While there is little visibility into what the ultimate outcome of this extraordinary activity will be, I believe Pine is well positioned given its tenant mix and sector diversification.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

We will continue to monitor the situation that evolves, but as for now we see an attractive pipeline of opportunities across the tenant landscape and remain focused on executing our strategy to deliver growth and stability for Pines investors. With that, now I'll turn the call over to Phil.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Thanks, John. Beginning with financial results. Total revenue was $14,200,000 for the quarter, including lease income of $11,800,000 and interest income from commercial loans of $2,300,000 FFO and AFFO for the quarter were both $0.44 per diluted share, representing growth of 7.34.8%, respectively, compared to the comparable quarter of the prior year. Driving earnings growth for the quarter was investment activity along with prudent and disciplined capital management. During the first quarter, we opportunistically repurchased approximately 274,000 common shares or $4,500,000 at an average price of $16.33 per share.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Further, since quarter end, we have continued to repurchase shares as noted in our press release and Form 10 Q filed last evening. Additionally, in April, when interest rates temporarily dropped in connection with initial tariff announcements, we opportunistically executed a SOFR swap, fixing SOFR for $50,000,000 of principal at 3.43% through 01/01/2027. This swap is being applied to $50,000,000 of borrowings currently outstanding on our revolving credit facility, reducing the interest rate thereon from approximately 6% at quarter end to approximately 5% based on our current leverage and applicable pricing tier. We ended the quarter with net debt to pro form a adjusted EBITDA of 7.9 times. However, it is notable that we have no debt maturing until 2026 and thereafter our debt maturities are well staggered.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Additionally, at quarter end, had $65,000,000 of liquidity consisting of approximately $8,000,000 of cash available for use and $57,000,000 available under our revolving credit facility. Further, with current in place bank commitments, the availability under our revolving credit facility can expand by an additional $36,000,000 as we acquire properties providing total potential liquidity of approximately $100,000,000 John noted that during the first quarter, we increased our common dividend and paid a quarterly cash dividend of $0.02 $85 Even with this increase, our dividend remains well covered and supported by free cash flow with an approximate AFFO payout ratio of 65%. Finally, turning to guidance. We are increasing both our FFO and AFFO guidance for the full year of 2025 to a range of $1.74 to $1.77 per diluted share compared to our prior range of $1.7 to $1.73 per diluted share. Once again, our increase was driven by our successful investment activity to start the year and now assumes investment volume of $70,000,000 to $100,000,000 and dispositions of $50,000,000 to $70,000,000 Specifically with regards to dispositions, in April, we sold one Walgreens and expect to close the sale of another in May.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

This would reduce our Walgreens to eight properties and continue decreasing our ADR derived from Walgreens leases. With that operator, please open the line for questions.

[Operator]

Thank Our first question comes from Michael Goldsmith with UBS. Your line is open.

[Michael Goldsmith, US REITs Analyst at UBS Securities LLC]

Good morning. Thanks a lot for taking my questions. First question is just on the AFFO guidance raise. Can you walk through kind of you've been quite active during the period, so can you kind of walk through the factors that drove your ability to raise your earnings guidance this quarter? Thanks.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Yeah, Michael. This is Phil. And there's really three things that drove the increase almost equally. One is the stock buyback. If you look at the close in the Q, including purchases after the end of the quarter, we've purchased $7,600,000 worth of stock at an average price now about $16.15 So just lowering the denominator through buybacks and being opportunistic is one of the factors.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Additionally, the swap that I spoke about in my prepared remarks for $50,000,000 which took effect early April, That was floating on the line at about 6%. It immediately drops to about 5%, so 100 bps to pick up. And then finally, on the investments, it's a little bit of volume, a little bit of timing, a little bit of cap rates, so kind of all three factors. So it's almost equally those three things that are each $01 0 point 5 or so. And that's what drove the increase in the guidance.

[Michael Goldsmith, US REITs Analyst at UBS Securities LLC]

That's helpful. And maybe just a clarification. You took the investment guidance up to 70,000,000 to $100,000,000 so up $20,000,000 but it looks like you did $80,000,000 in the quarter. Am I missing something there or just reconcile those numbers?

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

I think it's probably just on the loans and funding. So for the quarter, we did almost $40,000,000 in property acquisitions and we funded close to 20,000,000 in loans. We originated a higher amount, but we funded about 20,000,000 So combined for the quarter, we were about $60,000,000 funded and out the door.

[Michael Goldsmith, US REITs Analyst at UBS Securities LLC]

Got it. Thanks for that.

[Michael Goldsmith, US REITs Analyst at UBS Securities LLC]

And then just a question on the share repurchases. Are you thinking about this going forward? And then just within the grand scheme of capital allocation, you've been doing more loans, you've been acquiring and now you're buying back stock. So can you just kind of walk through like your priorities in terms of capital allocation, how you're thinking you were active in kind of all three in the first quarter. How do you how active do you think you'll be across the board kind of through the balance of the year?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Hey, Michael, it's John. Thanks for the question. Yes, I mean, when the shares are trading at such a big discount to NAV and such a high dividend yield, Certainly, we've had a history both the CTO and Pine to take advantage of that dislocation. We're much better off selling assets and buying and accreting to NAV and accreting earnings by buying at such low prices. But we are coming at the closer to the end of our $10,000,000 buyback.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

So we'll see kind of after the program kind of gets filled up kind of where we sit. But given our free cash flow stance and we can always sell assets and do that, but that obviously is shrinking the company and not exactly the plan. But as we see loan opportunities and some of these loans are going to be maturing here this year, and that will come in and pay down debt and kind of get us in a good spot for acquisitions. As Phil mentioned in his prepared remarks, we've plenty of liquidity. So we're taking trying to take advantage of some good opportunities out there and the pipeline looks good.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

So it's really a mixture of kind of balancing between buybacks and acquisitions and investments.

[Michael Goldsmith, US REITs Analyst at UBS Securities LLC]

Thanks guys. Good luck in the second quarter. Thank you.

[Operator]

You. Our next question comes from Matthew Erdner with Jones Trading. Your line is open.

[Matthew Erdner, Research Associate at Jones Trading]

Hey, good morning guys. Thanks for taking the John, I kind of want to touch on the tariffs that you had talked a little bit earlier. But when it comes to kind of just getting the deals done, obviously, convenience stores, think, are kind of sheltered from that. But could you kind of talk about the process as you're selling the at home or as you kind of look to move on from some of these retail guys that might be affected, just kind of the timing of the deals that it's taking now compared to what it was, say a year ago?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yeah, I mean, we're not seeing any sort of big dislocation with the tariff issues, surprisingly, I guess. Given our platform at CTO that's more obviously leasing involved. We're not seeing some sort of disruption in tenant activity as far as opening new stores, committing to new stores and so forth. So, we're certainly not disruption at the Pine platform as far as tenant issues. Restaurants are doing strong.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

We picked up an Alamo theater outside of Denver that has Sony on the lease and that's been super strong. And so those things are obviously insulated from tariff issues. So we're definitely monitoring it, but so far so good in clear selling, but we certainly have an eye out for any issues that may happen.

[Matthew Erdner, Research Associate at Jones Trading]

Got it. That's helpful. I appreciate the color there. And then kind of as a follow-up, turning back to guidance, what's going to drive you to that kind of higher range of investment guidance? Will that be kind of getting towards that 75 ish million in dispositions and just capital recycling?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yeah, mean, just kind of a step back, given that we do have the advantage of a small company. Have two assets as you know that currently right now are not contributing any income. That's a party city in Long Island, New York, and a theater in Reno. And the theater in Reno we have under contract to sell. And the Party City, we're actively marketing that and have indicative interest now, but we're trying to get a better pricing.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

And so once we sell those assets, which we expect to do this year, having that go to pay down leverage or reinvest is certainly going to be catalyst for the upside of our earnings guidance. But even at the low side of our earnings guidance, look at our multiples like ridiculously low and a high dividend and lots of free cash flow. So if you take the dividend yield of roughly 7% and our free cash flow that add on those percentages, you're getting a nice total return just sitting here. But that's not what we're here to do. We're here to outperform.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

And I think we have an easy kind of roadmap to do that. So we'll try to keep on performing for you.

[Matthew Erdner, Research Associate at Jones Trading]

Right. That's very helpful. I appreciate the time this morning. Thanks, guys.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Thanks.

[Operator]

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

[Rob Stevenson, MD & Head - Real Estate Research at Janney Montgomery Scott]

Good morning, guys. John, so you sold $12,000,000 at a little over 9% cap rate and the guidance is now 50,000,000 to $80,000,000 of full year dispositions. Given the mix of assets that you're looking to sell over the remainder of year, what type of cap rate should we be expecting as reasonable to assume on the remaining, call it, dollars 40,000,000 to $70,000,000 of dispositions? Is it something in that sort of high 8s, low 9s? Is it something substantially lower than that given the mix that you're looking to sell? How should we be thinking about that?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yeah, I think given the mix of possibly having some properties with no income, that could be lower for the mix going forward. However, we are taking the pain with some of the sales that we've just done at higher yields as we talked about pruning the portfolio, making it more fortified by selling some of the Walgreens and so forth, which we've made some good progress. So it's going to be a mixture, but I would say going forward, it will tend to be lower than what it has been.

[Rob Stevenson, MD & Head - Real Estate Research at Janney Montgomery Scott]

Okay. And to that point on the Walgreens, so I think Phil said that you sold one here in April and have another under contract for May sale. What is the market today for Walgreens locations given that sort of weird lease that they have, typically and then the Sycamore deal? Does Sycamore provide given where that stock was trading down, is Sycamore a benefit or is the private equity similar to what you saw with at home where people are running away from private equity backed sponsors with some of these?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

I think it adds a little bit more stability in far as knowing that before Sycamore, there was just an unknown what happens to the company. Are there no buyers? Is the company really going all the way down? That sort of thing. So I think it adds stability in a platform.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

And I think we're actually in talking with some of the merchant developers, some of them are starting to have programs to go after purchasing Walgreens to reformat into other uses, given the sites are generally very strong at corner locations and drive throughs and so forth. So I think you're starting to see in the private market people becoming more aggressive in acquiring these with a tale of lease with Walgreens and with the expectation they'll be able to get the site back and repurpose it for another use. So we're actually, I would say, net net within last sixty days is a more positive view than before.

[Rob Stevenson, MD & Head - Real Estate Research at Janney Montgomery Scott]

Okay, that's very helpful. And then can you remind us how many of the Family Dollar, Dollar Tree locations you have currently in the portfolio and whether or not they are predominantly Family Dollars or Dollar Trees?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yes, I'm going to introduce you to Steven Greathouse, our Chief Investment Officer. I'm out of the office at different locations. So Stephen, you want to give Rob a little bit of color on that?

[Steven Greathouse, SVP - Investments at Alpine Income Property Trust]

Sure. Hey, Rob. I think we have about 31 total between Dollar Tree and Family Dollar. And on the spin when they go out sorry, twenty five and thirty one Dollar General, I guess. But 25 Dollar Trees. And then when they spin, we're all kind of waiting to happen what's going to happen with the dual branded ones. But about half of those have Dollar Tree credit that will stay on with the spin. So I think we're well positioned on those. And they were all relatively new, so they've got eight plus years of term left on them.

[Rob Stevenson, MD & Head - Real Estate Research at Janney Montgomery Scott]

Okay. So 31 total, 25 of those are Dollar Tree, so six are Family Dollars and three of those Family Dollars keep the Dollar Tree credit and the other three will have the Brigade Mycelium or whatever it is credit on it. Is that I got that correct?

[Steven Greathouse, SVP - Investments at Alpine Income Property Trust]

No, it was 25 Family Dollars and about half of those have the Dollar Tree credit on them.

[Rob Stevenson, MD & Head - Real Estate Research at Janney Montgomery Scott]

Okay. So, it was six Dollar Tree's 20 five Family Dollars and half of those 25 or so have the Dollar Tree credit and the other half have the private equity credit?

[Steven Greathouse, SVP - Investments at Alpine Income Property Trust]

There you go. That's right.

[Rob Stevenson, MD & Head - Real Estate Research at Janney Montgomery Scott]

Okay. All right. That's helpful. Thanks guys. Appreciate the time this morning.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Thanks Rob.

[Operator]

Thank you. Our next question comes from Wesley Golladay with Baird. Your line is open.

[Wesley Golladay, Senior Research Analyst at Robert W. Baird & Co]

Hey, good morning, everyone. For the seller financing for the at home, was that to a developer?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

It was. It would be kind of investor developer.

[Wesley Golladay, Senior Research Analyst at Robert W. Baird & Co]

Okay. And then when you're looking to sell the theater, does that actually have a negative NOI right now? And then will you provide seller financing if the deal goes through?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

It does have a negative NOI. And yes, we would offer up seller financing on that. And the deal that we're negotiating with now, don't want our financing. They're all cash.

[Wesley Golladay, Senior Research Analyst at Robert W. Baird & Co]

Okay. And then maybe can you talk about the germ free? Will you see more deals like that? Is that like a one off type deal for you?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

We hope so, but right now it's kind of a one off. We don't see anything in the future, but it's super unique. It's really one where we had a competitive advantage given that we're local to this investment opportunity. Germfree has been around over fifty years, private equity group bought them. They have no leverage.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

They're using part of the proceeds to invest in the facility. It's a headquarter and manufacturing facility for unique mobile lab development for hospitals and they have a worldwide footprint. So if you have a nasty virus like COVID, you're going to buy one of their mobile labs if you're a hospital because you don't want to be dealing with a virus within a hospital where it could escape and be bad news. You want to have it out in the parking lot or in the back in a mobile lab.

[Wesley Golladay, Senior Research Analyst at Robert W. Baird & Co]

Okay. One last one for me. You had two loans that were upsized on the construction side. What is driving that?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Basically, a little bit of construction costs or you could have a situation where the developer has another pad site user that has come on and that they need site development work for that. But mainly, it was probably an escalation of development costs.

[Wesley Golladay, Senior Research Analyst at Robert W. Baird & Co]

Okay, thank you.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yep, thanks Wes.

[Operator]

Thank you. Our next question comes from Guav Mehta with Alliance Global Partners. Your line is open.

[Gaurav Mehta, Managing Director at Alliance Global Partners]

Yeah, thank you. Good morning. I wanted to ask you on a provision for impairment charge that you had in first quarter. Can you provide some details on that?

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Yeah, this is Phil. On the impairment charge for the first quarter, there wasn't anything that we sold in the quarter. It's more related to properties that we anticipate selling in the short term, such as like the Walgreens that I mentioned that we have one under contract and one sold. So it's more related to upcoming dispositions. And we were just given we know where they're going to trade, it was cleaning up and getting our bases in line with that.

[Gaurav Mehta, Managing Director at Alliance Global Partners]

Okay. And then second on the loan side, can you provide some color on timing of funding the unfunded commitments within your portfolio?

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

What was the question?

[Gaurav Mehta, Managing Director at Alliance Global Partners]

The funding, the unfunded commitments within the loan portfolio?

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Just the timing of funding on the loan portfolio?

[Gaurav Mehta, Managing Director at Alliance Global Partners]

Yeah.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

So currently, the word currently stands, it should be relatively consistent like that for the first half of the year. We do have, call it, in the third quarter one of the larger loans maturing. But there'll be new fundings that will fill in.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

So it may assuming we don't do any additional ones, it'll be pretty even, maybe a little less towards the end of the year. But we're hopeful that maybe we'll do some additional loans, and the funding amount will stay very similar over the year.

[Gaurav Mehta, Managing Director at Alliance Global Partners]

Okay, thank you. That's all I had.

[Operator]

Thank you. Our next question comes from R. J. Milligan with Raymond James. Your line is open.

[RJ Milligan, Managing Director at Raymond James]

Hey, good morning guys. Just a couple of follow ups. I guess we'll start with the capital allocation questioning that started the call. But just curious how you think leverage is going to trend. It ticked up here in the first quarter. I know you guys have some loan payoffs and some dispositions coming.

[RJ Milligan, Managing Director at Raymond James]

And I'm just curious where you think you might end up the year on the leverage side.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yes, I'll take kind of the general on that and then Phil can dive deeper. Thanks RJ for the question. Given that we have this active share buyback program and given that we had a very active investment quarter, certainly the leverage ticked up. But as Phil mentioned in prepared remarks, we still have a lot of liquidity. But given that we have some of our loans will be paying down and paying off this year.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

And we, as I mentioned, expect to sell our vacant properties this year. I don't I don't anticipate at the end of the year having more leverage than we are now and and and maybe less.

[RJ Milligan, Managing Director at Raymond James]

And then my my second question is, you know, obviously, we can look at the the top tenant list and get an understanding of, you know, who's who's on the credit watch list. But I'm just curious, looking at the structured investment portfolio, is there anybody there that you would classify as sort of on the tenant watch list because it's obviously a lot more difficult to underwrite from our perspective?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yeah, no, structured investment program has basically been geared towards loans on very high quality credits that we wouldn't be able to purchase on our own because of where they trade on a very low cap rate. Talk about Publix grocer or Wawa's. There's no tenant issues from our perspective on the structure investment program. So, super strong assets and we'd love to own them if we could.

[RJ Milligan, Managing Director at Raymond James]

Great. And then my last question is for Phil. Just thinking about run rate of NOI from the first quarter going forward, is there anything in there that we should be thinking about for the next three quarters?

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

No, just probably the only item I'd note, RJ, is Party City. So if you remember when we gave our initial guidance, we said there was about an $08 head related to the theater, which quit paying rent towards the end of 'twenty four and then also Party City. And that was steady since it was spread almost equally between the $2.00 $4 and $04 Theater did exit right at the end of last year, so the current quarter had nothing in it from them. But Party City did pay as we anticipated for the entire first quarter. And now they will no longer pay the rest of the year.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

So the Party City will go away, call it, a couple hundred grand a quarter going forward, starting in the second quarter. But other than that, it would just be acquisition and disposition volume.

[RJ Milligan, Managing Director at Raymond James]

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

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Thanks RJ.

[Operator]

Thank you. Our next question comes from John Massocca with B. Riley Securities. Your line is open.

[John Massocca, Senior Research Analyst at B Riley Financial]

Good morning.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Good morning.

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Good morning.

[John Massocca, Senior Research Analyst at B Riley Financial]

Let me just clarify around that on the guidance front. Does guidance include any resolution around the Reno Cedar and Party City assets, either at the high end or midpoint? Or is that just kind of totally there's zeros for the rest of the year in terms of guidance?

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Yes. In terms of rent, there's zeros for the rest of the year. If we sell them, they would obviously get some cash, pay down debt, and there'd be some interest savings. They're going to be incrementally favorable, but they're not going to be huge movers to our earnings for this year.

[John Massocca, Senior Research Analyst at B Riley Financial]

Okay. But they could are they in guidance is like the high end, maybe dispositions is like vacant sales?

[Philip Mays, SVP, CFO & Treasurer at Alpine Income Property Trust]

Yeah, our disposition volume, yeah, if you want to include them in there in the high end.

[John Massocca, Senior Research Analyst at B Riley Financial]

Okay. And then at home, I know you've talked about it a little bit already, but what was kind of the amount of financing relative to your kind of basis in the property? And I guess does the current percentage exposure in the deck to at home reflects the interest income from the seller financing? Or is that just the remaining at homes you have in your portfolio?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

That's just the remaining that we have in our portfolio. And it was the seller financing was around 65 percent LTV.

[John Massocca, Senior Research Analyst at B Riley Financial]

Okay. And then maybe just kind of big picture on the Germfree Labs property. I guess kind of what I mean, you can't talk little bit about the tenant and why they're attractive, but maybe the asset itself. I mean, what kind of fungible is that property if something were to ever happen in the future and just kind of maybe some more details on what the asset actually is and could be repurposed for?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yeah. Good question. Yeah. It's very fungible in your terms. It's a manufacturing facility with very high ceilings, and they've just basically made this into kind of their headquarters, both small amount of office and manufacturing.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

But this would be in high demand as far as industrial use if they weren't there. And it's a very low per square foot basis. We bought a 125 square foot. So big land footprint, lots of parking, and very usable in this industrial market.

[John Massocca, Senior Research Analyst at B Riley Financial]

And geographically in the Central Florida area, or is that just where the company is based?

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Yeah, Central Florida, closer to our Daytona office. Again, this company has been around over fifty years, so it's well suited for them, and they're basically expanding their manufacturing operations. They're using part of the proceeds to go into the property.

[John Massocca, Senior Research Analyst at B Riley Financial]

Okay. I appreciate the color. That's it for me. Thank you.

[John Albright, President, CEO & Director at Alpine Income Property Trust]

Sure.

[Operator]

Thank you. There are no further questions at this time. This does conclude the question and answer session. Thank you for your participation. You may now disconnect. Everyone, have a great day.

Participants

Executives

• John Albright, President, CEO & Director
• Philip Mays, SVP, CFO & Treasurer
• Steven Greathouse, SVP - Investments

Analysts

• Jenna McKinney, Director of Finance at CTO Realty Growth
• Michael Goldsmith, US REITs Analyst at UBS Securities LLC
• Matthew Erdner, Research Associate at Jones Trading
• Rob Stevenson, MD & Head - Real Estate Research at Janney Montgomery Scott
• Wesley Golladay, Senior Research Analyst at Robert W. Baird & Co
• Gaurav Mehta, Managing Director at Alliance Global Partners
• RJ Milligan, Managing Director at Raymond James
• John Massocca, Senior Research Analyst at B Riley Financial