Alpine Income Property Trust Inc (PINE, Financial) released its Q3 2023 earnings report on October 19, 2023. Despite a challenging environment marked by rising interest rates and a slow transactions market, PINE's asset recycling program and focus on value creation have driven its Q3 results.
Financial Highlights
For the quarter ended September 30, 2023, PINE reported a net loss of $939,000, a significant drop from the net income of $11.17 million in the same period last year. Despite the net loss, the company's total revenues slightly increased by 0.3% to $11.56 million from $11.52 million in Q3 2022. The company's FFO increased by 8.1% to $5.87 million from $5.43 million in the same period last year.
Our third quarter results were driven by our differentiated asset recycling program and continued focus on identifying value in a transactions market that we believe has been slow to reprice in the rising interest rate environment," said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust.
Investments and Dispositions
In Q3 2023, PINE acquired three high-quality net lease properties for a total acquisition volume of $19.4 million, reflecting a weighted average going-in cash cap rate of 9.0%. On the other hand, the company sold eight properties for a total disposition volume of $20.6 million at a weighted average exit cash cap rate of 6.3%, generating total gains of $2.6 million.
Portfolio and Balance Sheet
As of September 30, 2023, PINE's portfolio consisted of 138 properties with an annualized base rent of $39.2 million. The company's net debt to Pro Forma EBITDA was 6.9 times, and its net debt to total enterprise value was 47.9%.
Outlook
Given the more challenging environment, PINE has revised its outlook for 2023 to take into account its year-to-date performance and revised expectations regarding its investment activities, forecasted capital markets transactions, and other significant assumptions.
