In the latest update, Alpine Income Property Trust, Inc. PINE disclosed that its third-quarter total investment activity, including acquisitions and structured investments, reached $55.3 million at a weighted average initial investment yield of 9.2%. With this, PINE’s total investment activity since the beginning of the year through Sept. 24 aggregates 84.2 million at a weighted average initial investment yield of 9.4%.
Its investment activity also incorporates the September purchase and amendment of a first mortgage construction loan secured by a Publix-anchored shopping center and three outparcels in Charlotte, NC. While the current loan commitment is for $17.8 million, of this, $10 million was funded at closing at an initial interest rate of 10.25%.
Alpine is focused on recycling efforts and continues to invest proceeds from lower-yielding dispositions into better-positioned, higher-yielding and higher-quality properties. This relieves pressure off its balance sheet even during growth endeavors and is expected to boost both earnings and portfolio diversification.
So far, its third-quarter total disposition volume, inclusive of property and structured investment sales, aggregates $44.1 million at a weighted average exit cash cap rate of 6.7%. Also, its year-to-date disposition volume reached $64.3 million at a weighted average exit cash cap rate of 7%.
Going forward, PINE’s focus on investing in, owning and operating a portfolio of single-tenant net leased properties, predominately leased to high-quality publicly traded and credit-rated tenants, is likely to help it enjoy steady rental revenues.
Analysts also seem bullish on this stock as the Zacks Consensus Estimate for 2024 funds from operations (FFO) per share has been revised 2.5% north over the past two months to $1.64.
Though shares of this Zacks Rank #2 (Buy) company have risen 19.1% in the past three months, underperforming the industry’s growth of 20.8%, it marks a good entry point for investors.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the REIT sector are Cousins Properties CUZ and Lamar Advertising LAMR, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share has been raised marginally over the past month to $2.67.
The Zacks Consensus Estimate for Lamar Advertising’s current-year FFO per share has moved marginally north in the past two months to $8.09.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
