Stifel cuts Alpine Income Property Trust target to $19.25, keeps buy rating

On Thursday, Stifel analysts adjusted their outlook on Alpine Income Property Trust (NYSE:PINE) shares by reducing the price target to $19.25 from the previous target of $19.50. Despite the price target adjustment, the firm maintained its Buy rating on the company’s stock. According to InvestingPro data, analyst consensus remains strongly bullish with price targets ranging from $17 to $22, suggesting potential upside. The company has demonstrated consistent shareholder returns, having raised its dividend for 6 consecutive years, with a current yield of 6.8%.

The change in price target follows Alpine Income Property Trust’s disclosure of its first-quarter 2025 transaction activity. The company released an update in the afternoon, detailing its recent acquisitions and dispositions. According to the update, the total investment activity for the quarter amounted to $79.2 million, executed at an approximate 9.0% capitalization rate. InvestingPro analysis indicates the company maintains a healthy financial position with a "GOOD" overall financial health score, and its liquid assets exceed short-term obligations with a strong current ratio.

Alpine’s disposition activity for the same period was reported to have totaled $11.7 million. These dispositions were carried out at a slightly higher capitalization rate of 9.1%. The capitalization rate, commonly referred to as cap rate, is a measure used to estimate the potential return on investment for real estate properties. The company has demonstrated solid operational performance, with revenue growth of 14.4% over the last twelve months and a robust gross profit margin of 83.9%.

The report provided by Stifel reflects the firm’s analysis of Alpine Income Property Trust’s performance and market activities. The maintained Buy rating suggests that the analysts continue to see the company as a favorable investment, despite the minor adjustment in the price target.

Investors and market watchers may consider such updates from financial analysts when making decisions about their portfolios. Alpine Income Property Trust specializes in owning and operating a diverse portfolio of single-tenant commercial properties across the United States.

In other recent news, Alpine Income Property Trust reported its full-year and fourth-quarter 2024 transaction activities, highlighting significant investments. The company acquired a Lowe’s (NYSE:LOW) Home Improvement property in Knoxville, Tennessee, for $22.5 million, contributing to a total fourth-quarter investment of approximately $50.5 million with an average cap rate of around 7.5%. For the full year, Alpine’s acquisition volume reached $134.7 million, yielding an initial return of 8.7%, with 51% of these acquisitions involving investment-grade tenants.

Following these developments, Stifel analysts adjusted their price target for Alpine, lowering it from $20.25 while maintaining a Buy rating, citing confidence in the company’s growth trajectory. Similarly, Lucid (NASDAQ:LCID) Capital Markets revised their outlook, reducing Alpine’s price target from $22.00 to $19.00, while still keeping a Buy rating. This adjustment was influenced by Alpine’s fourth-quarter results and a revision of earnings and net asset value estimates. Lucid Capital noted unexpected vacancies and projected increases in floating rate debt costs, leading to a decrease in the forecasted funds from operations for 2025.

Despite these challenges, Lucid Capital emphasized that Alpine offers a substantial discount to its NAV, with a revised estimate at $20.87. The firm’s investment strategy, balancing lower-yielding investment-grade assets with higher-yielding construction loans, continues to position Alpine favorably in its sector.

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