Alpine Income Property Trust, Inc. · NYSE:PINE
Alpine Income Property Trust — Investor Presentation (February 2021)
31 slides from Alpine Income Property Trust's investor presentation, Feb 11, 2021
Slide 1: Investor Presentation February 2021
Investor Presentation February 2021 NYSE: PINE
Slide 2: Forward-Looking Statements & Disclaimer
Forward-Looking Statements & Disclaimer This presentation may contain “forward-looking statements.” Forward-looking statements include statements that may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “e
Slide 3: Company Profile
Company Profile 3 Alpine Income Property Trust is a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality single-tenant net leased commercial income properties. PINE Ticker Symbol on NYSE $261 million Enterprise Value $21.4 million Annualized Base
Slide 4: Why Alpine?
Why Alpine? 4 Significant Discount to Peer Group Meaningful potential upside in valuation as PINE has the lowest 2021E FFO multiple of its net lease peer group. Stable & Attractive Dividend PINE grew its quarterly dividend by 9% in Q1 2021 and has an implied 2021E FFO payout ratio below 70%. Small A
Slide 5: Management Team
Management Team 5 Alpine Income Property Trust is led by an experienced management team with meaningful shareholder alignment, deep industry relationships and a strong long-term track record. John P. Albright President & Chief Executive Officer ▪ Former Co-Head and Managing Director of Archon Capita
Slide 6: External Management Alignment
External Management Alignment 6 Alpine Income Property Trust is externally managed by CTO Realty Growth (NYSE: CTO) under an agreement that, combined with CTO’s ownership in PINE, provides economies of scale, significant shareholder alignment and a flexible/collapsible structure. Notable Management
Slide 7: Investment Strategy & Execution
Investment Strategy & Execution 7 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 8: Investment Strategy & Execution
Investment Strategy & Execution 8 Disciplined investment strategy of investing in income producing properties that exhibit strong real estate fundamentals, leased to high-quality, industry-leading tenants. National focus, with an emphasis on major metropolitan statistical areas that exhibit attracti
Slide 9: Cumulative Investment Activity since Q4 2019
Since its inception in Q4 2019, PINE has demonstrated a consistent ability to invest in high-quality net leased properties, with a focus on investment grade-rated tenants and essential business sectors. Investment Strategy & Execution 9 $46.8 $75.4 $99.3 $116.6 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Cumula
Slide 10: Recent Acquisition: Tacoma, WA
Recent acquisitions represent a mix of strong real estate characteristics, investment grade-rated credit and excellent forecasted supply/demand fundamentals. Investment Strategy & Execution 10 Tacoma, WA ▪ 3-Mile Population: Approximately 118,000 people ▪ 3-Mile Average Household Income: More than $
Slide 11: Recent Acquisition: Glendale, AZ
Recent acquisitions represent a mix of strong real estate characteristics, investment grade-rated credit and excellent forecasted supply/demand fundamentals. Investment Strategy & Execution 11 Glendale, AZ ▪ 3-Mile Population: Approximately 120,000 people ▪ 3-Mile Average Household Income: Nearly $8
Slide 12: COVID-19 Rent Collection and Orange Park, FL
Investment Strategy & Execution 12 PINE deferred or abated an average of 6% of Pre-COVID-19 Contractual Base Rents and has had industry-leading portfolio performance since those deferrals and abatements, with a 100% Contractual Base Rent collection rate from July 2020 through February 2021. Orange P
Slide 13: Single Tenant Portfolio Metrics
Single Tenant Portfolio Metrics 13 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 14: Single Tenant Portfolio Metrics: Properties Map
Single Tenant Portfolio Metrics 14 PINE has assembled a geographically diverse and growing portfolio of high-quality properties occupied by industry-leading tenants, with a strong presence in high-growth, business-friendly states such as Arizona, Florida, Georgia and Texas. Alpine Income Property Tr
Slide 15: Top 30 Real Estate Markets and MSA Exposure
Single Tenant Portfolio Metrics 15 Approximately 77% of ABR comes from markets with more than one million people and nearly 50% of ABR comes from ULI’s top 30 markets for 2021. Rank Market 1 Raleigh 2 Austin 3 Nashville 4 Dallas/Fort Worth 5 Charlotte 6 Tampa 7 Salt Lake City 8 DC – Northern VA 9 Bo
Slide 16: Credit Transparency by Tenant
Single Tenant Portfolio Metrics 16 Unparalleled credit transparency, with 83% of ABR from tenants that are credit rated and more than 80% of ABR from tenants that are publicly traded. Tenant / DBA Credit Rating(1) ABR (in millions) ABR % of Total A+ $3.1 15% BB 2.5 12% N/A 1.9 9% BBB 1.9 9% AA 1.4 6
Slide 17: Sector Mix and Lease Expirations
Single Tenant Portfolio Metrics 17 PINE has no material leases expiring until 2024 and 43% of its leases have contractual rent increases. Sector ABR (in millions) ABR % of Total General Merchandise $3.3 15% Financial Services 3.1 15% Hospitality 2.5 12% Dollar Stores 2.0 10% Home Furnishings 1.9 9%
Slide 18: Industry & Peer Comparisons
Industry & Peer Comparisons 18 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 19: Top Six Tenants vs Peer Group
Industry & Peer Comparisons 19 PINE’s top six tenants represent the premiere operators in their respective sectors, account for approximately 57% of ABR and compare favorably to the top six tenants of the peer group. EDUCATION GROUP Top six tenant information based on published investor presentation
Slide 20: 2021E FFO Multiple Discount to Peers
Industry & Peer Comparisons 20 Alpine trades at a 5.3x multiple discount to the peer average, representing significant potential upside in valuation. 19.0x 18.6x 18.3x 17.4x 16.9x 16.7x 14.7x 13.6x 11.4x 11.0x 2021E FFO Multiple All peer information per the Stifel Triple-Net REITs Comp Sheets 2/7/20
Slide 21: Annualized Dividend Yield & 2021E FFO Payout Ratio
PINE’s dividend is strongly supported by a conservative payout ratio and a portfolio built with an intensive focus on real estate fundamentals and long-term stability. 84.7% 83.9% 83.3% 79.9% 75.6% 73.8% 71.6% 71.3% 60.0% 47.1% 6.2% 4.6% 4.5% 4.6% 5.1% 4.4% 4.3% 3.8% 5.5% 4.1% Annualized Dividend Yi
Slide 22: Financial Strength
Financial Strength 22 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 23: Debt Maturities and Valuation
Financial Strength 23 Including extension options, PINE has no debt maturities until November 2024 and a weighted average interest rate on its debt outstanding of approximately 1.7%. Debt Maturities (in millions) $50.0 $50.0 $60.3 $60.3 $39.7 $39.7 2021 2022 2023 2024 2025 Fixed Floating Total Commi
Slide 24: Dividend Growth Since IPO
Financial Strength 24 PINE has increased its dividend three times since its IPO, including increasing it by 9% in Q1 2021, implying a payout ratio range on funds from operations guidance of 56% to 64% for 2021. $0.06 $0.20 $0.20 $0.20 $0.22 $0.24 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 Q4 2019 Q1
Slide 25: Analyst Coverage and NAV
Financial Strength 25 Institution Analyst Report Date Rating NAV Baird Wes Golladay December 16, 2020 Outperform $19.11 B. Riley Craig Kucera October 19, 2020 Buy $19.65 BTIG Michael Gorman January 22, 2021 Buy $18.73 D.A. Davidson Barry Oxford October 22, 2020 Buy $19.00 Janney Rob Stevenson Januar
Slide 26: Full Year 2021 Guidance
PINE’s 2021 guidance implies year-over-year per share FFO growth of 22% to 38% and per share AFFO growth of 40% to 58% as compared to 2020. Financial Strength 26 Full Year 2021 Guidance FFO Per Diluted Share $1.50 - $1.70 AFFO Per Diluted Share $1.45 - $1.65 FFO and AFFO guidance was provided in the
Slide 27: Appendix
Appendix 27 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 28: Appendix: Tenant Detail
Appendix 28 Tenant Sector MSA Credit Rating(1) Square Feet ABR % of Total Lease Term Remaining Wells Fargo Financial Services Portland-Vancouver-Hillsboro, OR-WA A+ 212,363 15% 4.9 years Hilton Grand Vacations Hospitality Orlando-Kissimmee-Sanford, FL BB 102,019 9% 5.8 years Walmart Grocery Detroit-
Slide 29: Appendix: Tenant Detail
Appendix 29 Tenant Sector MSA Credit Rating(1) Square Feet ABR % of Total Lease Term Remaining Walgreens Pharmacy Atlanta-Sandy Springs-Roswell, GA BBB 15,120 2% 4.8 years Best Buy Consumer Electronics Atlanta-Sandy Springs-Roswell, GA BBB 30,038 2% 5.2 years Cross America (BP) Convenience Stores Ci
Slide 30: Appendix: Tenant Detail
Appendix 30 Tenant Sector MSA Credit Rating(1) Square Feet ABR % of Total Lease Term Remaining Dollar General Dollar Stores Lewis County, NY BBB 9,309 < 1% 12.9 years Dollar General Dollar Stores Ogdensburg-Massena, NY BBB 9,342 < 1% 11.8 years Dollar General Dollar Stores Binghamton, NY BBB 9,275 <
Slide 31: Investor Presentation NYSE: PINE
Investor Presentation NYSE: PINE
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