Alpine Income Property Trust, Inc. (PINE): Business Model Canvas [11-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
Alpine Income Property Trust, Inc. (PINE) Bundle
Alpine Income Property Trust, Inc. (PINE) stands out in the real estate investment trust (REIT) landscape with its unique business model that prioritizes stable income and diversification. By focusing on net leased properties and fostering strong relationships with tenants and investors, PINE has crafted a strategy that not only generates consistent revenue but also positions itself for growth in a competitive market. Dive deeper to explore the intricacies of their business model canvas and discover how they navigate the complexities of commercial real estate.
Alpine Income Property Trust, Inc. (PINE) - Business Model: Key Partnerships
Externally managed by Alpine Income Property Manager, LLC
Alpine Income Property Trust, Inc. is managed by Alpine Income Property Manager, LLC, a wholly owned subsidiary of CTO Realty Growth, Inc. This external management structure allows PINE to leverage the expertise and resources of CTO, a publicly traded diversified REIT, enhancing operational efficiency and strategic planning.
The management agreement stipulates a base management fee of 0.375% per quarter of total equity, equating to an annual rate of 1.5%. An additional incentive fee is applicable if the total stockholder return exceeds an 8% cumulative annual hurdle rate .
Partnership with CTO Realty Growth, Inc.
PINE maintains a strategic partnership with CTO Realty Growth, Inc., which holds a 7.9% noncontrolling ownership interest in the Operating Partnership as of September 30, 2024. CTO's involvement enhances PINE's capital structure and provides access to additional resources .
As of September 30, 2024, CTO owns an aggregate of 1,223,854 OP Units and 1,138,621 shares of PINE common stock, representing an investment totaling $43.0 million .
Collaboration with commercial property developers
PINE collaborates with various commercial property developers to expand its portfolio of high-quality net lease properties. Recent activities include originating construction loans for development projects, such as:
- 33-acre Wawa-anchored land development project in Greenwood, Indiana for $7.8 million.
- 5-acre land development project anchored by Wawa and McDonald's in Antioch, Tennessee for $6.8 million.
- 11-acre land development project anchored by Publix in Charlotte, North Carolina for $17.8 million.
As of September 30, 2024, the total carrying value of PINE's commercial loans and investments included:
| Description | Date of Investment | Maturity Date | Original Face Amount | Current Face Amount | Carrying Value | Coupon Rate |
|---|---|---|---|---|---|---|
| Construction Loan – Wawa Land Development – Greenwood, IN | July 2023 | July 2025 | $7,800,000 | $7,149,000 | $7,133,000 | 9.25% |
| Construction Loan – Wawa Land Development – Antioch, TN | October 2023 | October 2025 | $6,825,000 | $4,683,000 | $4,655,000 | 11.00% |
| Mortgage Note – Portfolio | November 2023 | November 2026 | $24,000,000 | $22,915,000 | $22,830,000 | 8.75% |
| Construction Loan – Retail Outparcels – Lawrenceville, GA | January 2024 | January 2026 | $7,200,000 | $6,618,000 | $6,558,000 | 11.25% |
These partnerships and collaborations enable PINE to effectively manage its property portfolio while pursuing growth opportunities through strategic investments in commercial real estate.
Alpine Income Property Trust, Inc. (PINE) - Business Model: Key Activities
Acquisition of income-producing properties
During the nine months ended September 30, 2024, Alpine Income Property Trust acquired six properties for a combined purchase price of $53.1 million, including capitalized acquisition costs. The weighted average remaining lease term of these properties at the time of acquisition was 21.7 years.
Of the total acquisition cost, $5.7 million was allocated to land, $15.0 million to buildings and improvements, $2.0 million to intangible assets, and $0.9 million to intangible liabilities. The remaining $31.4 million was attributed to properties acquired through a sale-leaseback transaction, which includes a tenant repurchase option.
| Acquisition Details | Amount (in millions) |
|---|---|
| Total Purchase Price | $53.1 |
| Allocation to Land | $5.7 |
| Allocation to Buildings and Improvements | $15.0 |
| Allocation to Intangible Assets | $2.0 |
| Allocation to Intangible Liabilities | $0.9 |
| Remaining Allocation for Sale-Leaseback Properties | $31.4 |
Management and leasing of real estate assets
For the nine months ended September 30, 2024, the revenue from property operations totaled $34.5 million, reflecting a 1.7% increase from $33.9 million in 2023. This growth was primarily due to the increased volume of property acquisitions.
As of September 30, 2024, Alpine Income Property Trust owned 133 properties with an aggregate gross leasable area of 3.6 million square feet and a portfolio occupancy rate of 99%. The weighted average remaining lease term for these properties was 8.8 years.
| Property Management Metrics | Value |
|---|---|
| Total Properties Owned | 133 |
| Gross Leasable Area (sq ft) | 3.6 million |
| Occupancy Rate | 99% |
| Weighted Average Remaining Lease Term (years) | 8.8 |
Origination of commercial loans and investments
As of September 30, 2024, Alpine Income Property Trust's commercial loan investment portfolio had a total carrying value of $86.5 million. This portfolio consisted of five construction loans and one mortgage note, along with three properties acquired through a sale-leaseback transaction.
Interest income from commercial loans and investments for the nine months ended September 30, 2024, totaled $3.5 million, a significant increase from $0.1 million in the same period of 2023.
| Commercial Loans and Investments | Value (in millions) |
|---|---|
| Total Carrying Value | $86.5 |
| Interest Income (2024) | $3.5 |
| Interest Income (2023) | $0.1 |
Alpine Income Property Trust, Inc. (PINE) - Business Model: Key Resources
Portfolio of 133 net leased properties
As of September 30, 2024, Alpine Income Property Trust, Inc. owned a portfolio of 133 net leased properties, encompassing a total gross leasable area of 3.6 million square feet. This portfolio is located in 34 states and has a weighted average remaining lease term of 8.8 years. The occupancy rate of the portfolio stood at an impressive 99%.
Access to capital markets for funding
Alpine Income Property Trust has shown robust access to capital markets, which is critical for funding acquisitions and operations. As of September 30, 2024, the company had a total cash balance of $28.1 million, which included $25.5 million in restricted cash. The company also had $79.5 million outstanding on its $250 million revolving credit facility and $200 million in term loans. During the nine months ended September 30, 2024, Alpine sold 623,526 shares under its ATM program for gross proceeds of $11.3 million at a weighted average price of $18.08 per share.
Experienced management team from CTO
The company is externally managed by Alpine Income Property Manager, LLC, a wholly owned subsidiary of CTO, which plays a pivotal role in guiding the company's operations. As of September 30, 2024, CTO held a 7.9% noncontrolling ownership interest in the Operating Partnership. The management team has significant experience in real estate investment and management, contributing to the strategic growth and operational efficiency of Alpine Income Property Trust.
| Key Metrics | Value |
|---|---|
| Number of Properties | 133 |
| Gross Leasable Area | 3.6 million sq. ft. |
| Occupancy Rate | 99% |
| Weighted Average Remaining Lease Term | 8.8 years |
| Total Cash | $28.1 million |
| Restricted Cash | $25.5 million |
| Credit Facility Outstanding | $79.5 million |
| Term Loans Outstanding | $200 million |
| Shares Sold under ATM Program | 623,526 |
| Gross Proceeds from ATM Program | $11.3 million |
Alpine Income Property Trust, Inc. (PINE) - Business Model: Value Propositions
Stable income through net lease structures
Alpine Income Property Trust, Inc. operates primarily under a net lease structure, which provides stable and predictable income streams. For the nine months ended September 30, 2024, the company reported lease income of $34.5 million, reflecting a 1.7% increase from $33.9 million in the same period of 2023. This model allows tenants to cover property expenses, reducing the burden on the landlord and ensuring consistent cash flow.
Diversified portfolio across multiple states
The company has strategically built a diverse portfolio consisting of 133 properties located across 34 states with an aggregate gross leasable area of 3.6 million square feet. This diversification mitigates risk by reducing reliance on any single market or tenant. The properties maintained a high occupancy rate of 99% as of September 30, 2024.
| Metric | Value |
|---|---|
| Number of Properties | 133 |
| States Represented | 34 |
| Gross Leasable Area | 3.6 million sq ft |
| Occupancy Rate | 99% |
Focus on high-quality commercial real estate
Alpine Income Property Trust emphasizes acquiring high-quality commercial real estate, targeting properties with strong credit tenants. In 2024, the company acquired six properties for a total of $53.1 million, which includes the recent acquisition of three single-tenant properties in Tampa for $31.4 million. The weighted average remaining lease term for these properties was 8.8 years at the time of acquisition, enhancing the reliability of cash flows from these investments.
| Acquisition Details | Value |
|---|---|
| Total Properties Acquired (2024) | 6 |
| Total Acquisition Cost | $53.1 million |
| Tampa Properties Acquisition Cost | $31.4 million |
| Weighted Average Lease Term | 8.8 years |
Alpine Income Property Trust, Inc. (PINE) - Business Model: Customer Relationships
Long-term lease agreements with tenants
Alpine Income Property Trust, Inc. (PINE) engages in long-term lease agreements with its tenants to ensure stable and predictable income streams. As of September 30, 2024, the company had a weighted average remaining lease term of 8.8 years across its portfolio of 133 properties, which collectively provide an aggregate gross leasable area of 3.6 million square feet. The occupancy rate stood at 99%, reflecting strong demand for its leased properties.
| Year | Minimum Future Rental Receipts (in thousands) |
|---|---|
| Remainder of 2024 | $9,174 |
| 2025 | $36,512 |
| 2026 | $35,968 |
| 2027 | $32,365 |
| 2028 | $28,696 |
| 2029 | $23,708 |
| 2030 and Thereafter (Cumulative) | $77,609 |
| Total | $244,032 |
Responsive property management services
PINE emphasizes responsive property management services to maintain tenant satisfaction and retention. The company recorded real estate expenses of $5.57 million for the nine months ended September 30, 2024, which included costs associated with property maintenance and tenant services. This investment in management services is key to sustaining occupancy rates and fostering long-term tenant relationships.
Regular communication regarding property performance
PINE maintains regular communication with its tenants regarding property performance and operational updates. The company reported total revenues of $38.4 million for the nine months ended September 30, 2024, which included $34.5 million from lease income. The increase in lease income is reflective of a 1.7% growth compared to the same period in 2023, demonstrating the effectiveness of its communication strategies in addressing tenant needs.
| Revenue Source | Amount (in thousands) as of September 30, 2024 |
|---|---|
| Lease Income | $34,512 |
| Interest Income from Commercial Loans and Investments | $3,552 |
| Other Revenue | $372 |
| Total Revenue | $38,436 |
Alpine Income Property Trust, Inc. (PINE) - Business Model: Channels
Direct leasing to commercial tenants
Alpine Income Property Trust primarily generates revenue through direct leasing to commercial tenants. As of September 30, 2024, the company reported total lease income of $34.5 million for the nine months ended, reflecting a 1.7% increase from $33.9 million in the same period in 2023. The components of lease income during this period included:
| Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Lease Payments | $29,815 | $30,187 |
| Variable Lease Payments | $4,697 | $3,764 |
| Total Lease Income | $34,512 | $33,951 |
The portfolio as of September 30, 2024, comprised 133 properties across 34 states, with an aggregate gross leasable area of 3.6 million square feet and a weighted average remaining lease term of 8.8 years. The portfolio maintained a high occupancy rate of 99%.
Investor relations through quarterly reports
Alpine Income Property Trust engages with its investors through comprehensive quarterly reports. For the nine months ended September 30, 2024, the company reported net income attributable to shareholders of $3.024 million, an increase of 17.1% from $2.582 million in the prior year. The company also reported:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Income | $3,354 | $(939) |
| Net Income from Operations | $12,040 | $10,164 |
| Funds from Operations (FFO) | $19,133 | $17,264 |
| Adjusted Funds from Operations (AFFO) | $19,291 | $17,410 |
These reports provide insights into the company's financial health and performance metrics, enhancing transparency and trust with shareholders.
Marketing through real estate networks
Alpine Income Property Trust utilizes various real estate networks for marketing purposes. The company acquired six properties for a combined purchase price of $53.1 million during the nine months ended September 30, 2024. This acquisition strategy is supported by ongoing marketing efforts to maintain investor interest and attract new tenants.
The company's marketing channels include:
- Online property listings and real estate platforms.
- Partnerships with real estate brokers and agents.
- Presence at real estate investment conferences and events.
In 2024, the company also reported an increase in interest income from commercial loans and investments, totaling $3.552 million, compared to just $112,000 in the previous year, indicating the effectiveness of its marketing efforts in expanding its investment portfolio.
Alpine Income Property Trust, Inc. (PINE) - Business Model: Customer Segments
Retail businesses seeking leased properties
Alpine Income Property Trust, Inc. focuses on leasing properties to retail businesses, which form a significant part of its customer segments. As of September 30, 2024, the company owned 133 properties with a gross leasable area of 3.6 million square feet, located across 34 states. The portfolio was 99% occupied, indicating strong demand from retail tenants.
The retail sector is vital for PINE, as it generates substantial lease income. For the nine months ended September 30, 2024, lease income totaled $34.5 million, reflecting a year-over-year increase of 1.7% from $33.9 million during the same period in 2023.
Investors looking for stable income through REITs
Another critical customer segment for Alpine Income Property Trust is investors seeking stable income through Real Estate Investment Trusts (REITs). The company has positioned itself as a reliable investment vehicle by consistently paying dividends. For the nine months ended September 30, 2024, PINE declared dividends of $0.830 per share, a slight increase from $0.825 per share in the same period of the previous year.
As of September 30, 2024, net income attributable to Alpine Income Property Trust, Inc. reached $3.0 million, an increase of 17.1% from $2.6 million in the same period of 2023, further enhancing its appeal to income-focused investors.
Commercial developers needing financing solutions
PINE also serves commercial developers by providing financing solutions through commercial loans and investments. As of September 30, 2024, the company’s commercial loan investments portfolio had a total carrying value of $86.5 million, comprising five construction loans, one mortgage note, and three properties acquired through a sale-leaseback transaction.
In the nine months ended September 30, 2024, interest income from commercial loans and investments surged to $3.5 million, a dramatic increase from just $0.1 million in the same period of 2023, illustrating the growing demand for PINE's financing solutions.
| Customer Segment | Key Metrics | Performance Indicators |
|---|---|---|
| Retail Businesses | 133 properties; 3.6 million sq. ft. | 99% occupancy; $34.5 million lease income |
| Investors | $3.0 million net income | $0.830 per share dividends; 17.1% increase in net income |
| Commercial Developers | $86.5 million in commercial loans | $3.5 million interest income from loans |
Alpine Income Property Trust, Inc. (PINE) - Business Model: Cost Structure
Property management and operational expenses
The direct costs of revenues for Alpine Income Property Trust, Inc. totaled $5.5 million during the nine months ended September 30, 2024, compared to $4.7 million for the same period in 2023. This reflects an increase of $0.8 million, primarily due to increased reimbursable expenses as well as non-recoverable portfolio expenses and vacancies.
Interest expenses on commercial loans
Interest expense for the nine months ended September 30, 2024, totaled $8.9 million, which is an increase from $7.5 million during the same period in 2023. This increase of $1.4 million can be attributed to a higher average outstanding debt balance and interest expenses related to the sale of participation interests in the company’s $23.4 million mortgage note.
General administrative costs for operations
General and administrative expenses for the three months ended September 30, 2024, amounted to $1.843 million, up from $1.652 million in the same period in 2023, marking an increase of $191,000. This rise was primarily due to a $243,000 increase in additional general and administrative expenses, reflecting higher corporate legal and consulting fees.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Direct Costs of Revenues | $5.5 | $4.7 | $0.8 |
| Interest Expense | $8.9 | $7.5 | $1.4 |
| General Administrative Expenses | $1.843 | $1.652 | $0.191 |
Alpine Income Property Trust, Inc. (PINE) - Business Model: Revenue Streams
Lease Income from Real Estate Properties
For the nine months ended September 30, 2024, lease income totaled $34.5 million, an increase from $33.9 million during the same period in 2023, reflecting a 1.7% growth. During the three months ended September 30, 2024, lease income was $11.7 million, compared to $11.4 million in 2023, marking a 2.4% increase.
| Period | Lease Income (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $11.7 | 2.4% |
| Q3 2023 | $11.4 | - |
| YTD Q3 2024 | $34.5 | 1.7% |
| YTD Q3 2023 | $33.9 | - |
Interest Income from Commercial Loans
Interest income from commercial loans and investments significantly increased to $3.5 million for the nine months ended September 30, 2024, compared to $0.1 million in the prior year, reflecting a 3071.4% increase. For the three months ended September 30, 2024, interest income was $1.7 million, up from $0.1 million in 2023.
| Period | Interest Income (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $1.7 | 1566.7% |
| Q3 2023 | $0.1 | - |
| YTD Q3 2024 | $3.5 | 3071.4% |
| YTD Q3 2023 | $0.1 | - |
Other Revenue from Fees and Agreements
Other revenue for the nine months ended September 30, 2024, amounted to $0.4 million, attributed to fees from a revenue-sharing agreement. In contrast, there were no other revenue streams recorded for the same period in 2023.
| Period | Other Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $0.1 | - |
| Q3 2023 | $0.0 | - |
| YTD Q3 2024 | $0.4 | 100% |
| YTD Q3 2023 | $0.0 | - |
Updated on 16 Nov 2024
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.