Interactive Brokers shares jump as it secures spot in S&P 500
On Monday, Lucid (NASDAQ:LCID) Capital Markets adjusted its outlook on Alpine Income Property Trust (NYSE:PINE) by reducing the price target from $22.00 to $19.00, while still maintaining a Buy rating on the stock. Currently trading at $16.22, the REIT offers a notable 7% dividend yield and has maintained dividend growth for six consecutive years, according to InvestingPro data. The adjustment follows Alpine’s fourth-quarter 2024 results, which led to a revision of earnings and net asset value (NAV) estimates by Lucid Capital Markets.
Analysts at Lucid Capital cited several reasons for the price target change, including unexpected vacancies and a projected increase in floating rate debt costs. This has resulted in a decrease in the forecasted funds from operations (FFO) for 2025, down from $1.89 to $1.75 per share. Additionally, Lucid Capital has set a 2026 FFO estimate at $1.78 per share. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 14.67, though its overall financial health score is rated as "FAIR."
Despite these adjustments, Lucid Capital Markets believes that Alpine Income Property Trust is positioned to offer investors a substantial discount to its NAV in a sector that generally trades at a premium. Alpine’s investment strategy, described as a "barbell approach," involves balancing lower-yielding investment-grade tenanted assets with higher-yielding construction loans.
The revised NAV for Alpine is now estimated at $20.87, which is based on a weighted average capitalization rate of 7.1%, marking a 25 basis point increase sequentially. Lucid Capital’s $19 price target represents 91% of the revised NAV, which is favorable compared to similar real estate investment trusts (REITs) with market capitalizations under $1.5 billion that are trading at 85% of NAV. Furthermore, the price target is 11 times Lucid Capital’s estimated 2025 FFO for Alpine, compared to an average peer multiple of 11 times and the sector trading at 101% of NAV and 13 times 2025 estimated FFO.
In other recent news, Alpine Income Property Trust has been the subject of considerable discussion due to its latest financial activities and board changes. The company reported a solid capitalization rate from its fourth-quarter 2024 investments, which totaled around $50.5 million. This included the acquisition of a Lowe’s (NYSE:LOW) Home Improvement property in Knoxville, Tennessee, for $22.5 million. The full-year acquisition volume for 2024 reached $134.7 million, achieving an initial yield of 8.7%.
Stifel analysts responded to these developments by adjusting the price target for Alpine Income Property Trust, maintaining a Buy rating on the stock. The company’s focus on optimizing its asset mix and enhancing shareholder value was highlighted in these recent transactions.
In addition to financial updates, Alpine Income Property Trust announced changes to its board. Jeffrey S. Yarckin has stepped down from his director role, and Brenna A. Wadleigh has been appointed as his replacement. Wadleigh brings extensive commercial real estate experience, currently serving as the CEO of N3 Real Estate. These are the latest developments that investors should take note of for Alpine Income Property Trust.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.