Alpine Income (PINE) Reports High Inorganic Growth in Q4

Alpine Income Property Trust, Inc. PINE achieved largest acquisition volume to-date in the fourth quarter of 2021. In the period, PINE acquired 26 net lease retails properties for a total acquisition volume of $101.6 million, reflecting a weighted-average going-in cash cap rate of 6.2%.

With 8.1 years of weighted-average remaining lease term, the properties located in 11 states are net leased to tenants operating in 10 different retail sectors. While, 32% annualized base rents are from the tenant or the tenants’ parent entity with investment-grade rating 34% of annualized base rents are from ground leased properties. Capitalizing on these, PINE is expected to enjoy a steady stream of rental revenues over the long term.

During Dec 31, 2021, Alpine Income acquired 68 net lease retail properties for a total acquisition volume of $260.3 million, reflecting a weighted-average going-in cash cap rate of 6.8%.

As of Dec 31, 2021, Alpine Income owned 113 net lease properties with a weighted-average remaining lease term of 7.8 years. The fully-leased properties generated $36.9 million of annualized based rent.

Per management, “We’re encouraged by the strength of our pipeline and confident our portfolio’s strong demographics, well-performing and defensive retail sectors and attractive real estate fundamentals position us for stability and growth as we head into 2022.”

With regard to disposition activities, Alpine Income in its business update noted that it sold its single tenant office properties in Orlando, FL for $24.5 million during the final quarter. The divested properties net leased to Hilton Grand Vacations reflected an exit cap rate of 7.5%.

For the full year, Alpine Income sold three net lease properties for a total disposition volume of $28.3 million. With a weighted-average exit cap rate of 7.2%, the sale of the properties reaped total gains of $9.7 million.

Tenants belonging to the necessity-based retail industries have been the saving grace during the pandemic. Net leased properties offers tenant, sector and geographic diversity.

Moreover, the acquisition of properties net leased to investment grade-rated entities will likely help PINE enjoy steady rental revenues.

Shares of this currently Zacks Rank #3 (Hold) player have gained 36.6% in the past year compared with the industry’s rally of 34.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some top-ranked stocks from the REIT sector are Extra Space Storage EXR, Cedar Realty Trust CDR and Cubesmart CUBE.

Extra Space flaunts a Zacks Rank #1 (Strong Buy) at present. Shares of EXR have gained 27% in the past six months.

The Zacks Consensus Estimate for Extra Space’s 2021 funds from operations (FFO) per share has been raised 3.3% over the past two months. Over the last four quarters, EXR’s FFO per share surpassed the consensus mark on all occasions, the average being 5.9%.

The Zacks Consensus Estimate for Cedar Realty’s 2021 FFO per share has been raised 2.6% to $2.36 in the past two months. Over the last four quarters, CDR’s FFO per share surpassed the consensus mark twice and missed the same on the remainingtwo occasions, the average beat being 6.4%.

Currently, CDR sports a Zacks Rank of 1. Shares of Cedar Realty have appreciated 49.5% in the past six months.

The Zacks Consensus Estimate for Cubesmart’s 2021 FFO per share has been raised 2.4% over the past two months. Over the last four quarters, CUBE’s FFO per share surpassed the consensus mark on all occasions, the average being 7.1%.

Cubesmart flaunts a Zacks Rank of 1 at present. Shares of CUBE have rallied 13% in the past six months.

Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.

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