Alpine Income Property Trust extends management deal

Published 19/07/2024, 22:08
Alpine Income Property Trust extends management deal

Alpine Income Property Trust, Inc. (NYSE:PINE), a real estate investment trust, announced on Thursday an amendment to its existing management agreement, extending the initial term of the contract. The amendment, dated July 18, 2024, prolongs the agreement with Alpine Income Property Manager, LLC until January 31, 2025.

The original management agreement, which was set to expire on November 26, 2024, has been in place since November 26, 2019. According to the filing, aside from the extension of the term, all other material terms of the Management Agreement remain unchanged.

This extension provides continuity in the management of Alpine Income Property Trust's real estate portfolio. The trust, incorporated in Maryland, has its principal executive offices in Winter Park, Florida.

The details of the amendment were filed with the Securities and Exchange Commission (SEC) and can be found in the Exhibit 10.1 of the Current Report on Form 8-K. The report was signed by Philip R. Mays, Senior Vice President, Chief Financial Officer, and Treasurer of Alpine Income Property Trust, Inc.

In other recent news, Alpine Income Property Trust has been the subject of several recent developments. The company reported a 13.9% increase in Funds from Operations (FFO) per share in the first quarter of 2024, reaching $0.41 per share. Additionally, Alpine sold a $13.6 million A-1 participation interest in a $23.4 million loan investment, reducing its investment in the loan to roughly $9.8 million.

Stifel, an independent research firm, maintained a Buy rating on Alpine Income Property Trust's stock but adjusted the price target to $18.00 from $18.75. This adjustment came after a review of the company's loan investment portfolio. Stifel also revised its estimates for Alpine's adjusted funds from operations (AFFO), lowering the 2024 forecast to $1.61 from $1.64, and the 2025 estimate to $1.58 from $1.63, while maintaining the 2026 estimate at $1.58.

These are recent developments that have transpired within the company. However, they do not offer a comprehensive view of Alpine Income Property Trust's future performance. It is always advisable for investors to conduct their due diligence or consult with a financial advisor before making investment decisions.

InvestingPro Insights

Alpine Income Property Trust (NYSE:PINE) has demonstrated a commitment to shareholder returns, as reflected in the company's consistent dividend growth, with dividends raised for five consecutive years. This dedication to providing steady income to investors is complemented by a solid balance sheet, where liquid assets surpass short-term obligations. These factors contribute positively to the company's financial health and are noteworthy for income-focused investors.

On the flip side, the company is currently grappling with challenges as analysts have revised their earnings expectations downwards for the upcoming period, and net income is expected to drop this year. Moreover, the company is not projected to be profitable within this fiscal year, which may raise concerns for growth-oriented investors. However, management's aggressive share buyback strategy could be a signal of confidence in the company's value and future prospects. For a more comprehensive analysis and additional InvestingPro Tips, investors can explore the full suite of insights available on InvestingPro, which currently lists 6 more tips for Alpine Income Property Trust.

From a valuation standpoint, Alpine Income Property Trust is trading at a high EBIT valuation multiple and near its 52-week high, with a price percentage of the peak at 94.81%. The market cap stands at $229.96 million USD, and despite a negative P/E ratio of -94.99 for the last twelve months as of Q1 2024, the trust maintains a high gross profit margin of 84.3%. Investors may find the dividend yield of 6.56% particularly attractive, especially in the current interest rate environment. For those considering an investment in Alpine Income Property Trust, using coupon code PRONEWS24 can provide up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription on InvestingPro.

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