Alpine Income Property Trust, Inc. · NYSE:PINE
Alpine Income Property Trust — Investor Presentation (February 2023)
30 slides from Alpine Income Property Trust's investor presentation, Feb 9, 2023
Slide 1: February 2023 Investor Presentation
February 2023 INVESTOR PRESENTATION
Slide 2: Company Profile
2 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Company Profile Ticker Symbol (NYSE) PINE Equity Market Capitalization $323M Total Enterprise Value (TEV) $562M TEV Per Square Foot $154 Implied Cap Rate 6.9% Net Debt to TEV1 43% Annualized Dividend Yield 5.4% Common Shares & OP Units Out
Slide 3: Investment Highlights
3 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Investment Highlights Meaningful Valuation Upside with In-Place Yield and Long-Term Growth Accretive Asset Recycling Driving Improved Portfolio Metrics Pure play, 100% retail portfolio growing through accretive asset recycling of predomina
Slide 4: Accretive Asset Recycling
4 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Accretive Asset Recycling 5.8% 5.5% 5.8% 5.5% 6.5% Q3 2020 Q3 2021 Q2 2022 Q3 2022 Q4 2022 Retail Disposition Cap Rates Retail Properties Sold As of December 31, 2022. PINE has demonstrated a consistent ability to sell retail properties at
Slide 5: Opportunity to Invest Below Replacement Cost
5 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Opportunity to Invest Below Replacement Cost Valuation Upside with a High-Quality Portfolio PINE’s total enterprise value (TEV) is $154 per square foot, allowing shareholders to invest below estimated replacement cost in a portfolio rooted
Slide 6: Significant Implied Valuation Upside
6 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Significant Implied Valuation Upside 18.3x 17.3x 17.2x 16.4x 14.6x 14.6x 13.4x 11.7x ADC FCPT NTST O EPRT NNN PINE SRC 2023E FFO Multiple 1 PINE trades at a 4.2x multiple discount to the investment grade-oriented peer group average, implyi
Slide 7: Relative Outsized In-Place Dividend Yield
7 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Relative Outsized In-Place Dividend Yield 1. All dividend yields and payout ratios are based on the closing stock price on February 7, 2023, using current annualized dividends and 2023E FFO per share estimates for the peer net lease compan
Slide 8: Disciplined Investment Strategy Emphasizing Attractive Supply/Demand Market Dynamics
8 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Disciplined Investment Strategy Emphasizing Attractive Supply/Demand Market Dynamics National focus, with an emphasis on major metropolitan statistical areas that exhibit attractive population trends, business-friendly policies and strong
Slide 9: Consistent Investment Execution
9 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Consistent Investment Execution $47 $75 $99 $117 $139 $220 $275 $377 $442 $486 $523 $564 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 IPO 2021 Q4 2019 Cumulative Investment Activity Since
Slide 10: Improving Portfolio Size and Diversity
10 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Improving Portfolio Size and Diversity As of December 31, 2022. 1. A credit rated, or investment grade (“IG”) rated tenant (rating of BBB-, Baa3 or NAIC-2 or higher) is a tenant or the parent of a tenant with a credit rating from S&P Glob
Slide 11: Major Market Net Lease Portfolio
11 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Major Market Net Lease Portfolio ▪ Geographically diversified portfolio focused on major markets, benefitting from demographic shifts and attractive supply/demand dynamics ▪ 57% of ABR comes from metropolitan statistical areas1 with more
Slide 12: Excellent Portfolio Demographics
12 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Excellent Portfolio Demographics Houston, TX 12% Philadelphia, PA 5% Detroit, MI 5% Atlanta, GA 5% Rochester, NY 5% Dallas, TX 3% Canton, OH 3% Chicago, IL 2% Tampa, FL 2% New York, NY 2% Logan, WV 2% Tulsa, OK 2% Duluth, MN 2% Reno, NV 2
Slide 13: Excellent Tenant Credit Transparency
13 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Excellent Tenant Credit Transparency Investment Grade 54% Not Rated 21% Non-Investment Grade 25% Sporting Goods 13% Dollar Stores 13% Pharmacy 12% Home Furnishings 9% Home Improvement 8% Grocery 5% Consumer Electronics 5% Health & Fitness
Slide 14: Strong and Stable Top Tenant Base
14 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Strong and Stable Top Tenant Base Credit Rating1 BBB 11% BBB 7% BBB 7% BBB+ 6% BBB 5% BB 5% B- 5% AA 5% N/A 4% B- 4% 41% 100% ABR % OTHER 1% 5% 2% 3% 11% 7% 9% 8% 16% 38% Lease Rollover Schedule % of ABR Expiring 7.6 Years of Weighted Ave
Slide 15: High-Quality Top Tenant Base
15 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com High-Quality Top Tenant Base Disclosed % of Rents from Investment Grade-Rated Tenants1,2 68% 65% 62% 54% Not Disclosed RATED IG 20% As of December 31, 2022, unless otherwise noted. 1. A credit rated, or investment grade (“IG”) rated tenan
Slide 16: Consistent Dividend Growth
16 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Consistent Dividend Growth Well-Covered Dividend ▪ Current midpoint of 2023 guidance1 implies a 72% 2022E FFO per share dividend payout ratio ▪ Seven dividend raises since the IPO, five increases in the last two years ▪ 37.5% increase in
Slide 17: Research Coverage
17 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Research Coverage Near Unanimous Buy or Outperform rated by Independent Analysts Baird Wes Golladay Outperform $21.00 B. Riley Craig Kucera Buy $21.00 BTIG Mike Gorman Buy $23.00 Colliers Barry Oxford Buy $20.00 EF Hutton Gaurav Mehta Buy
Slide 18: Financial Strength
18 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Financial Strength PINE has a demonstrated access to capital, is focused on maintain reasonable leverage and has completely fixed its attractive cost of debt. Equity Market Capitalization1 $323M Net Debt Outstanding1,2 $239M Total Enterpr
Slide 19: 2023 Guidance
19 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com 2023 Guidance Range Acquisitions $100 million - $150 million Dispositions $25 million - $50 million FFO Per Diluted Share $1.50 - $1.55 AFFO Per Diluted Share $1.52 - $1.57 Weighted Average Diluted Shares Outstanding 16.0 million - 16.4 m
Slide 20: 2022 Highlights
20 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com 2022 Highlights As of December 31, 2022. $ in millions, except per share data. 1. See the “Non-GAAP Financial Information” section and tables at the end of this presentation for a discussion and reconciliation of Net Income to non-GAAP fi
Slide 21: Corporate Responsibility
21 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Corporate Responsibility Alpine Income Property Trust, through its external manager, is committed to sustainability, strong corporate governance, and meaningful corporate social responsibility programs. Committed Focus Committed to mainta
Slide 22: External Management Alignment
22 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com External Management Alignment As of February 9, 2023. Aligned Ownership CTO currently owns an approximate 14% interest in PINE, meaningfully aligning its interests with PINE shareholders Independent Board of Directors PINE has its own ind
Slide 23: Board of Directors
23 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Board of Directors Our Board has a well-balanced mix of perspectives and experiences and maintains relevant policies to ensure shareholder alignment, risk management, corporate oversight and the highest ethical standards. Andrew C. Richar
Slide 24: Key Takeaways
24 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Key Takeaways Significant Discount to Peer Group Meaningful upside opportunity as PINE has one of the lowest 2023E FFO multiples of its net lease peer group. Stable & Growing Dividend PINE has grown its quarterly dividend by 37.5% since t
Slide 25: Disclaimer
25 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com 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,” “se
Slide 26: Non-GAAP Financial Information
26 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Non-GAAP Financial Information Our reported results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also disclose Funds From Operations (“FFO”), Adjusted Funds From Op
Slide 27: Statement of Operations
27 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Statement of Operations Alpine Income Property Trust, Inc. Consolidated Statements of Operations (In thousands, except share, per share and dividend data) (Unaudited) Three Months Ended Year Ended December 31, 2022 December 31, 2021 Decem
Slide 28: Non-GAAP Financial Measures Reconciliation
28 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Non-GAAP Financial Measures Reconciliation Three Months Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net Income $ 5,525 $ 9,549 $ 33,955 $ 11,462 Depreciation and Amortization 6,332 5,025 23,564
Slide 29: Net Debt-to-EBITDA Pro Forma Reconciliation
29 © 2023 Alpine Income Property Trust, Inc. | alpinereit.com Net Debt-to-EBITDA Pro Forma Reconciliation Alpine Income Property Trust, Inc. Non-GAAP Financial Measures Reconciliation of Net Debt to Pro Forma EBITDA (Unaudited) (In thousands) Three Months Ended December 31, 2022 Net Income $ 5,525 A
Slide 30: Investor Inquiries
Investor Inquiries: Matthew M. Partridge, Chief Financial Officer, (407) 904-3324, mpartridge@alpinereit.com
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