Alpine Income Property Trust, Inc. (PINE) Bundle
Understanding Alpine Income Property Trust, Inc. (PINE) Revenue Streams
Understanding Alpine Income Property Trust, Inc.’s Revenue Streams
Revenue from Property Operations: For the nine months ended September 30, 2024, revenue from property operations totaled $34.5 million compared to $33.9 million for the same period in 2023, reflecting a year-over-year increase of 1.7%. Lease income specifically amounted to $34.5 million in 2024, up from $33.9 million in 2023, indicating a growth of $561,000.
Interest Income from Commercial Loans: Interest income from commercial loans and investments surged to $3.5 million for the nine months ended September 30, 2024, compared to just $0.1 million in 2023, marking an astounding increase of 3071.4%.
Other Revenue: Other revenues totaled $372,000 for the nine months ended September 30, 2024, with no comparable revenue in the previous year.
Year-over-Year Revenue Growth Rate
The total revenue for the nine months ended September 30, 2024, was $38.4 million, a 12.8% increase from $34.1 million in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | 2024 Amount (in millions) | 2023 Amount (in millions) | Year-over-Year Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Lease Income | $34.5 | $33.9 | $0.6 | 1.7% |
| Interest Income from Commercial Loans | $3.5 | $0.1 | $3.4 | 3071.4% |
| Other Revenue | $0.4 | $0.0 | $0.4 | 100.0% |
| Total Revenue | $38.4 | $34.1 | $4.3 | 12.8% |
Contribution of Different Business Segments to Overall Revenue
In terms of contribution, lease income remains the primary revenue driver, accounting for approximately 89.9% of total revenue in 2024. Interest income from commercial loans has shown significant growth, now making up about 9.1% of the total revenue.
Analysis of Significant Changes in Revenue Streams
The substantial increase in interest income is attributed to the expansion of the commercial loan portfolio, which included five construction loans and one mortgage note by September 30, 2024. The addition of other revenue streams, such as fees from revenue-sharing agreements, also marks a noteworthy diversification in revenue sources.
This diversification strategy appears effective, as evidenced by the overall revenue growth and increased profitability metrics observed in the latest reporting period.
A Deep Dive into Alpine Income Property Trust, Inc. (PINE) Profitability
A Deep Dive into Alpine Income Property Trust, Inc.'s Profitability
Gross Profit, Operating Profit, and Net Profit Margins
For the three months ended September 30, 2024, the gross profit was $11.7 million, resulting in a gross margin of 86.9%. The operating profit for the same period was $6.5 million, yielding an operating margin of 48.3%. The net profit attributable to the company was $3.08 million, translating to a net profit margin of 22.9%.
Trends in Profitability Over Time
In comparison to the previous year, during the three months ended September 30, 2023, the gross profit was $11.4 million, with a gross margin of 86.5%. The operating profit for this period was $1.4 million, which resulted in an operating margin of 11.9%. The net profit was a loss of $0.837 million, marking a significant improvement in profitability year-over-year.
Comparison of Profitability Ratios with Industry Averages
The industry average for net profit margins in the real estate investment trust sector is approximately 20%. Alpine Income Property Trust, Inc.'s net profit margin of 22.9% for Q3 2024 exceeds this benchmark, indicating a strong competitive position.
Analysis of Operational Efficiency
The operational efficiency is demonstrated through the direct costs of revenue, which amounted to $1.8 million for Q3 2024, resulting in a gross margin of 86.9%. General and administrative expenses totaled $1.84 million, reflecting an increase of 11.6% from the previous year. The provision for impairment significantly decreased to $422,000 from $2.9 million, indicating improved asset management.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Gross Profit | $11.7 million | $11.4 million | $0.3 million | 2.6% |
| Operating Profit | $6.5 million | $1.4 million | $5.1 million | 368.5% |
| Net Profit | $3.08 million | -$0.837 million | $3.917 million | 468.0% |
| General and Administrative Expenses | $1.84 million | $1.65 million | $0.19 million | 11.6% |
| Provision for Impairment | $422,000 | $2.9 million | -$2.478 million | -85.3% |
Conclusion
The financial performance of Alpine Income Property Trust, Inc. in terms of profitability has shown significant improvement from the previous year, with key metrics indicating effective operational management and a favorable market position.
Debt vs. Equity: How Alpine Income Property Trust, Inc. (PINE) Finances Its Growth
Debt vs. Equity: How Alpine Income Property Trust, Inc. Finances Its Growth
As of September 30, 2024, the company's long-term debt consists of:
- $79.5 million on a $250 million revolving credit facility.
- $200 million in term loans outstanding.
The total liabilities reported were $307.0 million.
The debt-to-equity ratio stands at approximately 1.23 based on total equity of $271.954 million as of September 30, 2024.
In comparison, the industry average debt-to-equity ratio for similar real estate investment trusts (REITs) is generally around 0.9 to 1.1. This indicates that the company is leveraging more debt relative to its equity compared to its peers.
Recent debt activity includes:
- The sale of a $13.6 million A-1 participation interest in a $23.4 million mortgage note.
- The origination of a $6.1 million construction loan on June 14, 2024, maturing on September 14, 2025.
- On September 18, 2024, a construction loan of $17.8 million was secured for a land development project.
As of September 30, 2024, the company’s cash position includes $28.1 million, with $25.5 million classified as restricted cash.
The company balances its financing strategy by utilizing both debt and equity. For instance, during the nine months ended September 30, 2024, it sold 623,526 shares under its ATM program, raising $11.3 million.
| Type of Financing | Amount (in millions) | Notes |
|---|---|---|
| Long-Term Debt | $200.0 | Term loans outstanding |
| Revolving Credit Facility | $79.5 | Outstanding balance |
| Equity Issuance | $11.3 | From ATM program (2024) |
| Cash (Total) | $28.1 | Including restricted cash |
As of September 30, 2024, the company reported an interest expense of $8.9 million for the nine-month period, an increase from $7.5 million in the same period of the previous year.
Assessing Alpine Income Property Trust, Inc. (PINE) Liquidity
Assessing Liquidity and Solvency of Alpine Income Property Trust, Inc.
Current and Quick Ratios
As of September 30, 2024, the current ratio is calculated as follows:
- Current Assets: $28.1 million
- Current Liabilities: $79.5 million (from revolving credit facility)
Current Ratio = Current Assets / Current Liabilities = $28.1 million / $79.5 million = 0.35
The quick ratio, which excludes inventory from current assets, remains similar because the company primarily operates in real estate with minimal inventory.
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is negative:
- Working Capital = Current Assets - Current Liabilities
- Working Capital = $28.1 million - $79.5 million = ($51.4 million)
This negative working capital indicates potential liquidity concerns.
Cash Flow Statements Overview
For the nine months ended September 30, 2024, cash flow trends are as follows:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Operating Cash Flow | $12.04 |
| Investing Cash Flow | ($53.1) (due to property acquisitions) |
| Financing Cash Flow | $11.3 (from ATM program) |
Overall, the cash flow from operations is positive, but significant cash outflows for investing activities reflect aggressive acquisition strategies.
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company has:
- Cash: $28.1 million (including $25.5 million in restricted cash)
- Long-Term Debt: $79.5 million (revolving credit facility) + $200 million (term loans)
The high level of long-term debt coupled with low current assets poses liquidity risks. The reliance on debt financing could impact the company's ability to meet short-term obligations.
Is Alpine Income Property Trust, Inc. (PINE) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis of the company includes key financial ratios, stock price trends, dividend metrics, and analyst consensus, providing insights into whether the company is overvalued or undervalued.
Price-to-Earnings (P/E) Ratio
The current P/E ratio stands at 82.73. This is based on a trailing twelve months (TTM) earnings per share (EPS) of $0.22 and a current share price of $18.20.
Price-to-Book (P/B) Ratio
The P/B ratio is calculated at 1.40, with total equity attributed to shareholders amounting to $248.2 million and total shares outstanding being 13.7 million.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is currently 23.58. This is derived from an enterprise value of approximately $285 million and EBITDA of $12.1 million for the most recent fiscal year.
Stock Price Trends
| Time Period | Stock Price ($) | % Change |
|---|---|---|
| 12 Months Ago | 15.00 | +21.33% |
| 6 Months Ago | 17.00 | +7.06% |
| 3 Months Ago | 18.00 | +1.11% |
| Current Price | 18.20 | -1.11% |
Dividend Yield and Payout Ratios
The current dividend yield stands at 4.62%, calculated based on an annual dividend payment of $0.84 per share. The dividend payout ratio is approximately 380% based on TTM earnings.
Analyst Consensus on Stock Valuation
- Buy: 4 analysts
- Hold: 2 analysts
- Sell: 1 analyst
Analysts express a generally positive outlook, with a consensus target price of $20.00, suggesting a potential upside of 10% from the current trading price.
Key Risks Facing Alpine Income Property Trust, Inc. (PINE)
Key Risks Facing Alpine Income Property Trust, Inc.
Alpine Income Property Trust, Inc. faces several internal and external risk factors that could impact its financial health. These risks include industry competition, regulatory changes, and fluctuations in market conditions.
Industry Competition
The real estate investment trust (REIT) sector is highly competitive. As of September 30, 2024, the company reported total revenues of $38.4 million, an increase of 12.8% compared to $34.1 million for the same period in 2023. This growth reflects ongoing competition in securing profitable leasing agreements and property acquisitions. The competitive landscape may constrain rental growth and impact occupancy rates across the portfolio.
Regulatory Changes
Changes in federal and state regulations regarding real estate ownership, leasing, and taxation can pose significant risks. As a REIT, Alpine must distribute at least 90% of its taxable income to maintain its tax-exempt status. This requirement limits retained earnings that could be used for reinvestment or to weather downturns in revenue.
Market Conditions
Market conditions, including interest rates and economic cycles, greatly influence the company's operations. As of September 30, 2024, the company had an outstanding balance of $79.5 million on its $250 million revolving credit facility, alongside $200 million in term loans. Rising interest rates could increase debt servicing costs, impacting profitability.
Operational Risks
Operational risks include property management and maintenance costs. The company reported general and administrative expenses of $4.99 million for the nine months ended September 30, 2024, a slight increase from $4.82 million in 2023. Increased operational costs can erode margins and affect overall profitability.
Financial Risks
Financial risks stem from the company's capital structure and cash flow management. As of September 30, 2024, cash totaled $28.1 million, including $25.5 million in restricted cash. While this provides liquidity, significant cash reserves may be needed to cover upcoming obligations and potential property impairments.
Impairment Charges
The company recorded an impairment charge of $1.1 million during the nine months ended September 30, 2024. This charge reflects the potential for decreased asset values, which could impact future earnings and investor confidence.
Mitigation Strategies
The company employs various mitigation strategies, such as diversifying its property portfolio and maintaining a disciplined acquisition approach. As of September 30, 2024, the company had acquired six properties for a total purchase price of $53.1 million. This strategy aims to enhance revenue stability and reduce reliance on any single property or tenant.
| Risk Factor | Description | Impact | 2024 Financial Data |
|---|---|---|---|
| Industry Competition | High competition in securing leases and acquisitions | Potentially lower rental growth | Total Revenues: $38.4 million |
| Regulatory Changes | Changes in laws affecting REIT operations | Impact on tax strategy and retained earnings | Must distribute 90% of taxable income |
| Market Conditions | Fluctuations in interest rates and economic cycles | Increased debt servicing costs | Outstanding debt: $79.5 million |
| Operational Risks | Property management and maintenance challenges | Increased operational costs | G&A Expenses: $4.99 million |
| Financial Risks | Capital structure and cash flow management | Liquidity constraints | Cash: $28.1 million |
| Impairment Charges | Potential decrease in asset values | Impact on earnings | Impairment Charge: $1.1 million |
Future Growth Prospects for Alpine Income Property Trust, Inc. (PINE)
Future Growth Prospects for Alpine Income Property Trust, Inc.
Key Growth Drivers
Alpine Income Property Trust, Inc. is poised for growth through several strategic initiatives and market conditions. The company has actively expanded its property portfolio, acquiring six properties for a combined purchase price of $53.1 million during the nine months ended September 30, 2024. Additionally, the weighted average remaining lease term for these properties stands at 21.7 years, providing a stable revenue stream.
Future Revenue Growth Projections
Revenue from property operations increased to $34.5 million in the nine months ended September 30, 2024, compared to $33.9 million in the same period in 2023, reflecting a growth of 1.7%. Interest income from commercial loans surged dramatically by 3071.4%, rising to $3.5 million in 2024 from just $0.1 million in 2023. This indicates a strong potential for revenue growth driven by an expanding investment portfolio.
Strategic Initiatives and Partnerships
In January 2024, the company originated a construction loan for $7.2 million secured by a retail development in Georgia, demonstrating its commitment to diversifying its investment portfolio. Furthermore, the company entered into a revenue-sharing agreement, which contributed an additional $0.4 million in revenue for the nine months ended September 30, 2024.
Competitive Advantages
Alpine Income Property Trust, Inc. benefits from a diverse portfolio, currently comprising 133 properties across 34 states, with an aggregate gross leasable area of 3.6 million square feet. The company's properties were reported to be 99% occupied as of September 30, 2024, ensuring a steady occupancy rate that enhances revenue stability.
Financial Overview
| Financial Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Lease Income | $11.7 million | $11.4 million | $0.3 million (2.6%) |
| Interest Income from Commercial Loans | $1.7 million | $0.1 million | $1.6 million (1600%) |
| Total Revenues | $13.5 million | $11.6 million | $1.9 million (16.3%) |
| Net Income | $3.4 million | ($0.9 million) | $4.3 million (477.8%) |
As of September 30, 2024, the company reported total assets of $578.99 million and total liabilities of $307.03 million, resulting in total equity of $271.95 million. The company's focus on strategic acquisitions and partnerships is expected to continue to drive growth and enhance its financial health moving forward.
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Resources:
- Alpine Income Property Trust, Inc. (PINE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alpine Income Property Trust, Inc. (PINE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alpine Income Property Trust, Inc. (PINE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.