Alpine Income Property Trust, Inc. Q4 FY2025 earnings call

• Fourth quarter had 22.7% growth in AFFO per common share and $142.1 million of investments, with annual record $277.7 million of investments. - Acquired 8 properties in Q4 for ~$40M, full year 13 properties for $100.6M. Sold 9 noncore properties in Q4 for $38.4M, full year disposition $72.8M. - 51% of ABR from investment-grade tenants, Lowe's, Dick's, Walmart, Walgreens in top tenants. - Commercial loan portfolio: Originated $102.3M in Q4, full year $177M. Sold $10M senior interest in Austin loan. - Raised $50M via Series A preferred stock, $18.3M via equity raises, new credit facility with $250M revolving, $100M 3-year, $100M 5-year term loans. - Board increased quarterly common dividend to $0.30 per share starting Q1 2026.

For the property portfolio, in the fourth quarter, 8 properties were acquired for approximately $40 million at a weighted average initial cash cap rate of 6.9%. For the full year, 13 properties were acquired for $100.6 million at a weighted average initial cap rate of 7.4%. In the fourth quarter, 9 noncore properties were sold for $38.4 million, and for the full year, property disposition volume was $72.8 million. The property portfolio at year-end consisted of 127 properties, 4.3 million square feet across 32 states, 99.5% occupancy. For the commercial loan portfolio, in the fourth quarter, 5 commercial loan investments were originated and one amended, totaling $102.3 million of commitments at a weighted average initial coupon of 13.5%. Full year commercial loan originations were $177 million at a weighted average initial coupon of 12%. The net commercial loan portfolio was approximately $129.8 million at year-end.

• 2026 FFO per diluted common share guidance $2.07 to $2.11. - 2026 AFFO per diluted common share guidance $2.09 to $2.13. - 2026 investment volume expected $70 million to $100 million. - 2026 disposition volume expected $30 million to $60 million. - Dividend increase to $0.30 per share starting Q1 2026.

• Factors causing actual results to differ from forward-looking statements, disclosed in SEC filings. - Market conditions affecting investment and loan performance. - Tenant-related risks, such as changes in tenant occupancy or creditworthiness.

Q: On the loan portfolio, how was 20% threshold set and current status?

A: John Albright said 20% is a reasonable number, complementary to business. Phil Mays said end of year loan portfolio ~$130M, runway for another $25M-$30M.

Q: Follow-up on Walgreens exposure?

A: John Albright said actively selling additional Walgreens, will continue chipping away.

Q: On 20% loan threshold beyond, plans?

A: John Albright said loan business is complementary but not a distraction.

Q: On dividend increase, reason?

A: Philip Mays said due to earnings growth and taxable income growth.

Q: On loan repayment and funding pipeline?

A: John Albright said loan already repaid with lot sales, pipeline strong with grocery-anchored and investment-grade credit development.

Q: On leverage expectations in 2026?

A: Philip Mays said happy with current leverage, pricing tier good.

Q: On acquisition and disposition guidance, conservatism?

A: John Albright said to curate strong portfolio, not forced into commodity assets.

Q: On funding mix for new investments?

A: John Albright said mix of recycling, loan repayments, ATM and credit facility.

Q: On PIK interest in AFFO?

A: Philip Mays said will continue including PIK interest, added schedule for clarity.

Q: On structured loan participation sales?

A: John Albright said may sell senior participations to fund activity if needed.

Q: On guidance yield and mix?

A: Philip Mays said loan side expected ~$25M-$30M, balance on property side; John Albright said loan yields similar to past, net lease on investment-grade in strong MSAs.