Alpine Income Property Trust NYSE: PINE reported second-quarter 2026 funds from operations and adjusted funds from operations growth of about 30% and 32%, respectively, as investment activity expanded its property and commercial loan portfolios.
FFO totaled $0.57 per diluted share for the quarter, while AFFO was $0.58 per diluted share. Total revenue was $20 million, including $12.6 million of lease income and $7.3 million of interest income from commercial loan investments. For the first six months of 2026, FFO and AFFO were $1.10 and $1.11 per diluted share, respectively, while total revenue reached $38.4 million.
Chief Financial Officer Philip Mays said quarterly results included about $300,000 of other income from a non-refundable deposit related to a terminated contract to sell an At Home property to an end user. The amount represented roughly $0.02 per share of earnings, he said.
Investment activity expands portfolio
President and Chief Executive Officer John Albright said the company completed approximately $77 million of total investment activity during the quarter at a blended initial yield of 8.7%.
On the property side, Alpine acquired three properties for $36.6 million at a weighted average initial capitalization rate of 7.4% and a weighted average remaining lease term of 9.2 years. The purchases included a three-property portfolio leased to Aldi, HomeGoods and Petco, as well as properties leased to Lowe’s and Alamo Drafthouse. Alamo Drafthouse is a subsidiary of Sony Group Corporation, which Albright described as A+ rated.
The acquisition activity increased the share of annualized base rent attributable to investment-grade-rated tenants to 55% from 50%. Alpine said 84% of the quarter’s acquisition activity was investment grade. Four of its five largest tenants—Lowe’s, Dick’s Sporting Goods, Walmart and Alamo Drafthouse—were investment grade at quarter-end.
Alpine’s property portfolio ended the quarter with 128 properties totaling 4.5 million square feet across 31 states. Occupancy was 99.5%, the weighted average lease term was 9.2 years, and annualized straight-line base rent was $50 million.
Albright said the company expects to concentrate new activity primarily in net-lease real estate, with acquisition targets generally carrying cap rates in the 7% range or higher. He said the investment pipeline includes high-quality properties leased to investment-grade tenants and that some acquisitions expected in the prior quarter had been delayed.
Commercial loans remain near targeted allocation
During the quarter, Alpine originated a new $40 million first-mortgage loan, funding $6.2 million at an initial yield of 10%. The loan is secured by a 24-acre, 55,000-square-foot anchored retail development. The company also received full repayment on $8 million of commercial loans with an 8% weighted average yield, allowing it to reinvest capital into higher-yielding opportunities.
At quarter-end, the commercial loan portfolio consisted of 13 loans with an outstanding face amount of $167 million and a weighted average coupon rate, including payment-in-kind interest, of 13.2%. The portfolio represented approximately 20% of total undepreciated asset value, the company’s targeted level.
Albright said Alpine does not expect the loan portfolio to move materially above the 20% target other than temporarily because of timing. He said the company has some expected loan payoffs and is evaluating one additional, modest-sized development loan.
Management said significant unfunded loan commitments are expected to be drawn primarily over the next six months, particularly for Publix-anchored developments. Albright said Alpine generally targets higher loan-to-cost levels for these projects, while expecting stabilized loan-to-value ratios of roughly 70% to 75% after development and sales of pad sites.
Capital, debt and dividend outlook
Alpine used its at-the-market equity programs during the quarter, issuing approximately 1.1 million common shares for net proceeds of $21.7 million and about 156,000 Series A preferred shares for net proceeds of $3.9 million. Year to date, the company raised a combined $61.7 million through the programs.
Net debt to pro forma adjusted EBITDA declined to 6.4 times at quarter-end from 6.6 times in the prior quarter. The company had $369.5 million of debt outstanding at a weighted average interest rate of 4.38%, including swaps, and approximately $83 million of available liquidity including cash. Following a credit facility recast earlier in the year, Alpine said it has no debt maturities until 2029.
Mays noted that $100 million of SOFR swaps tied to the company’s 2029 term loan matured in May and were replaced with swaps fixing SOFR at 3.36% for the remaining term. He also said another swap transition associated with the 2031 term loan is expected near the end of January and is expected to increase the applicable rate by roughly 130 to 140 basis points.
The board authorized a 6.7% increase in Alpine’s quarterly common dividend to $0.32 per share beginning in the third quarter, compared with $0.30 per share paid in the second quarter. Albright said the new dividend represented a 55% AFFO payout ratio based on second-quarter AFFO. Mays said the increase was driven by growth in taxable income and the company’s goal of fully distributing taxable income.
Guidance updated
Alpine raised the low end of its full-year outlook. The company now expects 2026 FFO of $2.10 to $2.13 per diluted share and AFFO of $2.12 to $2.15 per diluted share.
The company maintained its investment-volume assumption of $170 million to $200 million, while reducing expected disposition volume to $20 million to $40 million from a prior range of $30 million to $60 million. Albright said the lower disposition outlook was primarily a timing matter, as the company seeks lease extensions or renewals on certain properties before selling them to pursue better valuations.
Management said the company’s principal vacancy remains a former Party City property in Long Island, where it has signed a lease with a new tenant pending permitting. Alpine said it expects the property could resume producing income in early 2027, or potentially late in 2026.
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.
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