Alpine Income Property Trust, Inc. · NYSE:PINE
Alpine Income Property Trust — Investor Presentation (April 2021)
32 slides from Alpine Income Property Trust's investor presentation, Apr 22, 2021
Slide 1: Investor Presentation April 2021
Investor Presentation April 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 properties net leased to credit-rated tenants. PINE Ticker Symbol on NYSE $283 million Enterprise Value $22.9 million Annualized Base Rent 5.5
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 has grown its quarterly dividend by 25% over the last 12 months and currently has an an implied 2021E FFO
Slide 5: Q1 2021 Highlights
Q1 2021 Highlights 5 Sector-Leading Earnings Growth ▪ FFO per share of $0.42, a year-over-year increase of 91% when compared to Q1 2020 ▪ AFFO per share of $0.44, a year-over-year increase of 120% when compared to Q1 2020 Consistent Dividend Growth ▪ Q1 2021 cash dividend of $0.24 per share, a 9% in
Slide 6: Management Team
Management Team 6 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 7: External Management Alignment
External Management Alignment 7 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 8: Investment Strategy & Execution
Investment Strategy & Execution 8 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 9: Investment Strategy & Execution
Investment Strategy & Execution 9 Disciplined investment strategy of investing in income producing properties that exhibit strong real estate fundamentals, leased to high-quality, industry-leading, credit-rated tenants. National focus, with an emphasis on major metropolitan statistical areas that ex
Slide 10: Cumulative Investment Activity
PINE has consistently invested in high-quality net leased properties, with a focus on investment grade-rated tenants and essential business sectors, driving outsized risk-adjusted returns and positioning its portfolio for long-term value creation. Investment Strategy & Execution 10 $46.8 $75.4 $99.3
Slide 11: Recent Acquisition: Tacoma, WA
Recent acquisitions represent a mix of strong real estate characteristics, quality tenant credit and excellent forecasted supply/demand fundamentals. Investment Strategy & Execution 11 Tacoma, WA ▪ 3-Mile Population: Approximately 118,000 people ▪ 3-Mile Average Household Income: More than $70,000 ▪
Slide 12: Recent Acquisition: Glendale, AZ
Recent acquisitions represent a mix of strong real estate characteristics, quality tenant credit and excellent forecasted supply/demand fundamentals. Investment Strategy & Execution 12 Glendale, AZ ▪ 3-Mile Population: Approximately 120,000 people ▪ 3-Mile Average Household Income: Nearly $89,000 ▪
Slide 13: Recent Acquisition: Albuquerque, NM
Recent acquisitions represent a mix of strong real estate characteristics, quality tenant credit and excellent forecasted supply/demand fundamentals. Investment Strategy & Execution 13 Albuquerque, NM ▪ 3-Mile Population: Approximately 86,000 people ▪ 3-Mile Average Household Income: More than $70,0
Slide 14: Single Tenant Portfolio Metrics
Single Tenant Portfolio Metrics 14 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 15: Single Tenant Portfolio Metrics: Properties
Single Tenant Portfolio Metrics 15 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 16: Portfolio in Top 30 Markets
Single Tenant Portfolio Metrics 16 Approximately 72% of ABR comes from markets with more than one million people and 45% 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 Boston 10
Slide 17: Tenant Credit Ratings
Single Tenant Portfolio Metrics 17 Unparalleled credit transparency, with 81% of ABR from tenants that are credit rated and nearly 80% of ABR from tenants that are publicly traded. Tenant / DBA Credit Rating(1) ABR (in millions) ABR % of Total A+ $3.1 14% BB 2.5 11% N/A 1.9 9% BBB 1.9 8% B 1.5 7% AA
Slide 18: Portfolio by Sector and Lease Expirations
Single Tenant Portfolio Metrics 18 PINE announced it will explore the sale of one or all of its office properties as it focuses its growth strategy and portfolio makeup on 100% retail properties. Sector ABR (in millions) ABR % of Total General Merchandise $3.3 14% Financial Services 3.1 14% Home Fur
Slide 19: Industry & Peer Comparisons
Industry & Peer Comparisons 19 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 20: Top Six Tenants vs Peer Group
Industry & Peer Comparisons 20 PINE’s top six tenants represent some of the premiere operators in their respective sectors and compare favorably to the top six tenants of the peer group. EDUCATION GROUP Top six tenant information based on published investor presentations available through each compa
Slide 21: 2021E FFO Multiple Peer Comparison
Industry & Peer Comparisons 21 PINE trades at a 7.3x multiple discount to the peer average, representing significant valuation upside. 22.7x 20.9x 20.3x 19.9x 19.0x 18.4x 18.2x 15.1x 13.0x 11.3x 2021E FFO Multiple All multiples are based on the closing stock price on April 21, 2021, using 2021 FFO p
Slide 22: Dividend Yield & 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. 87.0% 84.9% 82.0% 80.9% 80.3% 77.4% 73.8% 73.7% 62.5% 58.2% 3.8% 4.1% 5.4% 4.4% 4.4% 4.1% 3.7% 3.6% 5.5% 4.5% Annualized Dividend Yi
Slide 23: Financial Strength
Financial Strength 23 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 24: Debt Maturities and Valuation
Financial Strength 24 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 $69.3 $69.3 $30.7 $30.7 2021 2022 2023 2024 2025 Fixed Floating Total Commi
Slide 25: Dividend Growth
Financial Strength 25 PINE has grown its dividend by 25% over the past 12 months and currently has an implied payout ratio range on funds from operations per share guidance of 59% to 67% for 2021. $0.06 $0.20 $0.20 $0.20 $0.22 $0.24 $0.25 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Divid
Slide 26: Analyst Ratings and Price Targets
Financial Strength 26 Institution Analyst Rating Price Target Baird Wes Golladay Outperform $21.00 B. Riley Craig Kucera Buy $22.00 BTIG Michael Gorman Buy $21.00 D.A. Davidson Barry Oxford Buy $22.00 Janney Rob Stevenson Buy $21.00 Raymond James RJ Milligan Outperform $23.00 Total / Average 100% Bu
Slide 27: 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 27 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 28: Appendix
Appendix 28 Investment Strategy & Execution Single Tenant Portfolio Metrics Industry & Peer Comparisons Financial Strength Appendix
Slide 29: Tenant Detail Table
Appendix 29 Tenant Sector MSA Credit Rating(1) Square Feet ABR % of Total Lease Term Remaining Wells Fargo Financial Services (Office) Portland-Vancouver-Hillsboro, OR-WA A+ 212,363 14% 4.8 years Hilton Grand Vacations Hospitality (Office) Orlando-Kissimmee-Sanford, FL BB 102,019 8% 5.7 years Walmar
Slide 30: Tenant Detail Table
Appendix 30 Tenant Sector MSA Credit Rating(1) Square Feet ABR % of Total Lease Term Remaining 7-Eleven Convenience Stores Austin-Round Rock, TX AA- 6,400 2% 14.0 years Walgreens Pharmacy Birmingham-Hoover, AL BBB 14,516 2% 8.0 years Walgreens Pharmacy Atlanta-Sandy Springs-Roswell, GA BBB 15,120 2%
Slide 31: Tenant Detail Table
Appendix 31 Tenant Sector MSA Credit Rating(1) Square Feet ABR % of Total Lease Term Remaining Dollar General Dollar Stores Bangor, ME BBB 9,128 <1% 12.6 years Dollar General Dollar Stores Buffalo-Cheektowaga-Niagara Falls, NY BBB 9,199 < 1% 12.4 years Dollar General Dollar Stores Somerset County, M
Slide 32: Investor Presentation NYSE: PINE
Investor Presentation NYSE: PINE
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