Earnings call transcript: Alpine Income Q2 2025 misses EPS, stock rises

Alpine Income Property Trust Inc (PINE), offering a substantial 7.98% dividend yield, reported its Q2 2025 earnings with a notable revenue beat but a significant EPS miss. The company posted an EPS of -$0.12, falling short of the expected -$0.03, marking a 300% negative surprise. Despite this, the revenue came in at $14.86 million, surpassing forecasts by 3.7%. In reaction, Alpine Income’s stock rose by 5.05% in aftermarket trading, reaching $15.19. According to InvestingPro, the company maintains a "FAIR" overall financial health score, with particularly strong marks in relative value and cash flow management.

Want deeper insights? InvestingPro has identified 6 additional key investment tips for PINE, including crucial information about its dividend consistency and financial stability.

Key Takeaways

• Alpine Income’s revenue exceeded expectations, driven by strong lease income.
• The EPS miss was substantial, suggesting potential operational challenges.
• Stock rose by over 5% in aftermarket trading, indicating positive investor sentiment.
• The company reported a high occupancy rate of 98.2% across its portfolio.
• Continued focus on portfolio optimization and strategic investments.

Company Performance

Alpine Income’s overall performance in Q2 2025 was mixed. While the company achieved a revenue beat, the significant EPS miss raised concerns about its profitability. However, the strong revenue growth, driven by lease renewals and property renovations, highlighted operational resilience. The company’s strategic focus on diversified investments and high occupancy rates contributed positively to its market position.

Financial Highlights

• Revenue: $14.86 million, a 3.7% beat over forecast.
• Earnings per share: -$0.12, missing the forecast of -$0.03.
• FFO and AFFO: $0.44 per diluted share, a 2.3% growth.
• Year-to-date total revenue: $29.1 million.
• Year-to-date FFO and AFFO: $0.88 per share, a 4.8% growth.

Earnings vs. Forecast

Alpine Income’s actual EPS of -$0.12 was significantly below the forecast of -$0.03, representing a 300% negative surprise. This miss contrasts with the company’s historical performance, where such a large deviation from expectations is rare. However, the revenue of $14.86 million exceeded the forecast of $14.33 million by 3.7%, providing a positive offset. The company’s impressive revenue growth of 17.14% over the last twelve months demonstrates strong operational execution despite profitability challenges.

Market Reaction

Following the earnings release, Alpine Income’s stock rose by 5.05% in aftermarket trading, closing at $15.19. This movement suggests that investors focused on the company’s revenue beat and strategic initiatives rather than the EPS miss. The stock’s performance is notable given its 52-week range, with a low of $14.07 and a high of $19.42. Based on InvestingPro’s Fair Value analysis, the stock is currently trading at fair value levels, with analysts setting price targets between $15 and $20.

Outlook & Guidance

Alpine Income has maintained a positive outlook for the remainder of 2025, with full-year guidance for FFO/AFFO set at $1.74-$1.77 per diluted share. The company plans to increase its investment volume to $100-$130 million, focusing on structured loan investments and selective property acquisitions. This strategic direction aims to optimize the portfolio further and enhance shareholder value.

Executive Commentary

CEO John Albright emphasized the company’s proactive approach in optimizing its portfolio, stating, "We’ve been very proactive in the last couple years of pruning through different credits." He also highlighted the attractive investment opportunities in the current market, noting, "We’re seeing yields being as good or even maybe better on some certain situations."

Risks and Challenges

• The substantial EPS miss raises concerns about financial health and profitability.
• High leverage ratio of 8.1x may pose risks, though the company plans gradual reduction.
• Potential tenant bankruptcies, although currently managed, could impact revenue.
• Market volatility and economic uncertainty could affect investment returns.

Q&A

During the earnings call, analysts inquired about the company’s capital allocation strategy, with management reiterating a balanced approach between acquisitions, loans, and share repurchases. Questions also focused on the reduction of Walgreens exposure, with management targeting a decrease to below 5% of ABR.

Full transcript - Alpine Income Property Trust Inc (PINE) Q2 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to the Alpine Q2 twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your speaker today, Gina McKinney. Please go ahead.

Gina McKinney, Investor Relations, Alpine REIT: Thank you. Joining me and participating on the call this morning are John Albright, President and CEO Bill Mayes, CFO and other members of the executive team that will be available to answer questions during the call. As a reminder, many of our comments today are considered forward looking statements under federal securities laws. The company’s actual future results may differ significantly from the matters discussed in these forward looking statements, and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company’s Form 10 ks, Form 10 Q, and other SEC filings.

You can find our SEC reports, earnings release, and most recent investor presentation, which contain reconciliations of the non GAAP financial measures we use on our website at www.alpinereit.com. With that, I will turn the call over to John.

John Albright, President and CEO, Alpine REIT: Thank you, Jenna, and good morning, everyone. We are pleased to report FFO per share growth of 2.3% in the quarter and 4.8% year to date compared to the same period last year. This earnings growth was driven by our investment activity over the last year. We remain focused on our barbell investment strategy pairing higher yielding acquisitions supported by quality tenants and solid real estate fundamentals with select investment grade tenants to maintain a diversified and balanced portfolio that delivers favorable risk adjusted returns. Maintaining discipline and adhering to our underwriting criteria, we did not complete any additional property acquisitions this quarter following a busy first quarter in which we closed 39,700,000 of property acquisitions at a weighted average initial yield of 8.6%.

However, we are actively pursuing multiple interesting investment opportunities and anticipate some closing in the second half of the year. Turning to property dispositions during the quarter, we sold five net lease properties for $16,500,000 at a weighted average exit cap of 7.9%. These sales included two Walgreens, a Dollar Tree, Verizon, and Old Time Pottery. We have now reduced our Walgreens exposure over the past year by 500 basis points to 7% of ABR and have moved it from our largest tenant concentration a year ago to currently our fifth largest. Further we continue to make progress on our recently vacated properties.

The theater in Reno is under contract to be sold and we are actively negotiating the potential sale of our Long Island property previously leased by Party City. On the commercial loan front this quarter we provided seller financing in conjunction with our old time pottery disposition and originated one first mortgage loan. Combined these loans totaled $6,600,000 and were fully funded at closing with a weighted average initial yield of 9.8%. This brings our year to date loan closings to $46,200,000 with a weighted average initial yield of 9.1%. The ability to originate select commercial loans is another tool at our disposal to further diversify our income streams and deploy capital at attractive returns.

Further, the lending relationships we have cultivated are generating some unique loan investment opportunities. We are actively underwriting several high yielding loans backed by high quality sponsors with strong credit metrics and real estate fundamentals and expect one or two of these transactions to close in the back half of the year. Moving to our property portfolio. As of quarter end our portfolio consists of 129 properties totaling 3,900,000 square feet across 34 states. It was 98.2% occupied.

Our top two tenants are investment grade, day exporting goods and Lowe’s that together represent 20% of the portfolio ABR. More broadly 51% of our portfolio ABR is derived from investment grade rated tenants. Notably our weighted average remaining lease term now stands at eight point nine years up from six point six years just a year ago. Lastly a couple of specific tenant updates. Bass Pro Shops completed its full renovation of approximately 66,000 square foot building located on nine acres in Minnesota.

This property formerly leased to Camping World was assigned to Bass Pro Shops and we amended the lease to a new twenty year initial lease term which commits upon their opening in Mid Bay. Additionally, At Home filed for bankruptcy in June however both of our properties leased At Home paid rent in July and neither were on the initial closure list. With that I’ll turn the call over to Phil. Thanks John. Beginning with financial results.

For the quarter total revenue was $14,900,000 including lease income of

Bill Mayes, CFO, Alpine REIT: $12,000,000 and interest income from commercial loans of $2,700,000 FFO and AFFO for the quarter were both $0.44 per diluted share, representing 2.3% growth over the comparable quarter of the prior year. Year to date total revenue was $29,100,000 including lease income of $23,800,000 and interest income from commercial loans of $5,000,000 FFO and AFFO year to date were both $0.88 per share representing 4.83.5% growth respectively over the comparable period of the prior year. Consistent with the prior quarter, given the relative attractive valuation of Pines common shares, we continue to opportunistically repurchase shares. During the quarter, we repurchased approximately 273,000 common shares for $4,300,000 at an average price of $15.81 per share. And year to date, we have now repurchased approximately 546,000 shares for $8,800,000 at an average price of $15.07 per share.

With regards to our common dividend, as previously announced, during the first quarter, we increased our quarterly cash dividend to $0.02 $85 per share and maintain that rate in the second quarter, providing a current attractive dividend yield close to 8%. Even with this increase, our dividend remains well covered at approximately AFFO payout ratio of 65%. Moving to the balance sheet. We ended the quarter with net debt to pro form a adjusted EBITDA at 8.1 times and $57,000,000 of liquidity consisting of approximately $9,000,000 of cash available for use and $48,000,000 available under our revolving credit facility. However, with inputting bank commitments, the available capacity of our revolving credit facility can expand an additional $49,000,000 as we acquire properties, providing total potential liquidity of almost $100,000,000 A quick note on the $2,800,000 of noncash impairment charges recorded this quarter.

This amount includes noncash impairment charges related to our two largest vacant properties, a theater located in Reno and a former party city located on Long Island. Given the interesting investment opportunities we are seeing, we have determined it’s more likely we will simply sell these properties and redeploy the proceeds as opposed to incurring the interim curing costs and capital that would be required to retain and release them. We ended the quarter with portfolio wide in place annual base rent of $45,300,000 on a straight line basis. As a reminder, this includes approximately $3,800,000 of straight line rent related to three single tenant restaurant properties acquired in 2024 through sale leaseback transactions. Under GAAP, these specific sale leaseback transactions are accounted for as financing.

Accordingly, we are currently recognizing on an annual basis approximately $2,600,000 of GAAP interest income in our segment of operations as opposed to $3,800,000 of straight line rent income from these properties. Now turning to guidance. We are reaffirming both our FFO and AFFO guidance range of $1.74 to $1.77 per diluted share for the full year of 2025. The assumptions underlying our guidance remain largely unchanged except for investment volume, which we are increasing by $30,000,000 to a new range of $100,000,000 to $130,000,000 for the year. A final note about earnings.

A few days after quarter end,

: our construction loan for a

Bill Mayes, CFO, Alpine REIT: public land development in Charlotte, North Carolina with an outstanding balance of $25,500,000 and a yield of 9.5% was fully repaid. Accordingly, our interest income from commercial loans will decrease until the withdrawal of existing loans and or new loans are funded. With that operator, please open the call to questions.

Conference Operator: Thank you. Our first question is going to come from the line of Matthew Edner Your line is open. Please go ahead.

Matthew Edner, Analyst: Hey, good morning guys. Thanks for taking the question. With the given increase to the investment guidance and the opportunities that you guys kind of mentioned within the loan book, how should we kind of look at investments for the remainder of the year? Is it still kind of along those fifty-fifty lines between properties and loans? Any help there would be great.

Thank you.

John Albright, President and CEO, Alpine REIT: Hi, John. Sorry, I’m at a loud airport, but I’ll take the first part there. We’re seeing right now pretty active on both acquisition front and loan front, but I would say that more the structured loan investment activity seems to be closer to happening than the acquisitions. So we’re hopeful that in the next sixty days, we’re going to have some activity here on the structured loan investments that we’re very excited about. On the acquisition side, we’re pursuing things, but it’s pretty competitive, as you know, and so less sure about the timing of those investments.

Matthew Edner, Analyst: Got it. That’s helpful there. And then as a follow-up to that, with these loans as they kind of come in and pay off, I know that you don’t have any maturities for the remainder of the year. But if you were to experience any early payoffs, should we expect that those are going to go towards paying down the credit facility rather than reinvestment?

John Albright, President and CEO, Alpine REIT: Yes. I mean, just like Phil had mentioned, as far as on the Publix loan in Charlotte, that basically paid off and went to pay down the facility. We’re working really hard to sell the Party City and the theater in Reno, and of course, that would go to pay down the facility as well. But as we see these structured finance investments, we’ll make those, and if we need to, we’ll either sell off something or sell an asset and just keep the leverage reasonable.

Matthew Edner, Analyst: Got it. Thank you, guys. I appreciate it.

Conference Operator: One moment as we move on to our next question. Our next question is going to come from the line of RJ Milligan with Raymond James. Your line is open. Please go ahead.

RJ Milligan, Analyst, Raymond James: Hey, good morning, guys.

John Albright, President and CEO, Alpine REIT: Two questions for Phil. Just curious, with the payoff, the public’s payoff in July, what should be the what’s going to be the quarterly AFFO impact on that?

Bill Mayes, CFO, Alpine REIT: Yes, RJ. So with $25,500,000 it was yielding 9.5 percent. It’ll go ahead and pay down the line, the variable portion of line, which is around six. So it’s around 300 basis point, a little more spread, impact a couple of $100 a quarter or just kind of a little bit more than a full penny a quarter.

John Albright, President and CEO, Alpine REIT: Okay. And then, Phil, a second question is just in terms of we’ve seen quite a few other REITs go out and issue debt or get term loans. I’m curious where you think the market is today for Pine in terms of doing a term loan.

Bill Mayes, CFO, Alpine REIT: Yeah, so if Pine were to go do a five year term loan now with the banks and swap it, it would be around five, All in.

RJ Milligan, Analyst, Raymond James: Okay. I think that’s it for me,

Bill Mayes, CFO, Alpine REIT: guys. Thanks.

Conference Operator: Thank you. And one moment for our next question. Our next question is going to come from the line of Michael Goldsmith with UBS. Your line is open. Please go ahead.

Michael Goldsmith, Analyst, UBS: Good morning. Thanks a for taking my questions. Just first on Walgreens, you continue to pare down your exposure there. So can you just talk a little bit about what the market is like for Walgreens as well as at home? Who are the potential buyers?

What sort of cap rates are we looking at there? And just the overall level of interest in boxes from those two tenants? Thanks.

John Albright, President and CEO, Alpine REIT: Thanks, Michael. Yeah, so in general, the market is fairly active. So as we see reasonable pricing, we’ll keep moving through the Walgreens, and we’re actually working on a couple more sales. Pricing just obviously depends on location, of course, and your lease term. But the cap rates can be anywhere from high 7s to early 10s or 11s, just depending on, again, location and quality.

And we’re seeing basically people that a lot of high net worth people buying Walgreens and saying, okay, I’m going to take the rest of the term and get good yield, and then it’s a great location or a good location, and I know another tenant’s going to want it, because these are corners and drive throughs. So they’re not really worried about knowing exactly who’s gonna backfill it, just knowing that on a macro sense, it’s a good investment. So fairly active market on the Walgreens side. Like at homes, you’re seeing users that want to get these big box positions. And as you know, most of the at homes are low rent payers, so a lot of these are in the money as far as market rates versus what at home is paying.

And so it’s really, as big boxes become less available, there’s a fair amount of people, again, if it’s a good location, good market, that people are interested in taking those down and either redeveloping them or their users that will take the box or split up. I hope that’s helpful.

Michael Goldsmith, Analyst, UBS: No, John, that was particularly helpful. Thanks for that. And just as a follow-up, right, like you got the loan repaid, there was a bit of a slower deployment of capital quarter after a busy first quarter. And so just and then you are also a share repurchase. So just as you think about how you want to allocate your capital going forward, it sounds like the pipeline is building and the acquisitions will be and loans will be a focus going forward, which is can you talk about just the balance between all the different options as well as reducing leverage and just how you’re thinking through all of that?

Thank you.

John Albright, President and CEO, Alpine REIT: Yeah, sure. Look, we are seeing more opportunities, very interesting opportunities, good sponsors, and unfortunately, the deals are taking a little bit longer, so we didn’t get one the quarter, one we were very hopeful to get in the quarter. But they’re actually discussing with the tenant about expanding, it’s going to take a little while for them to go through a real estate committee and all that kind of stuff. So unfortunately, didn’t happen in the quarter, but hopefully this quarter will. But we’ll keep on selling through some of the credits that we don’t like going forward.

And maybe a little bit of selling assets and paying down debt, which as Phil mentioned on the loan repayment, there’s obviously a little bit of hit to earnings. But given that we’re such a low multiple stock, we’re not worried about kind of managing that. We just want to do the right thing. And we are very optimistic about the acquisitions and loan investments in front of us, which we think will be very accretive to the company and will be eventually reflected in the stock price, we hope. But I think we’ll be fairly active this quarter, so we’re pretty excited about what by the opportunities that we see.

John Albright, President and CEO, Alpine REIT: Thanks,

Michael Goldsmith, Analyst, UBS: Corvette. Luck in the back half and safe travels.

John Albright, President and CEO, Alpine REIT: Thanks. Appreciate it.

Conference Operator: Thank you. And one moment for our next question. And our next question is gonna come from the line of Wesley Golladay with Baird. Your line is open. Please go ahead.

Wesley Golladay, Analyst, Baird: Hey. Good morning, guys. Can we look at the at homes, the ones that you have currently operating? Would those be, you know, better productivity sites for them? Do you have any insight into that?

John Albright, President and CEO, Alpine REIT: Yeah, so they are. So we don’t expect them to reject these whatsoever. They have good operations, so good locations, so don’t see that. And actually, we have people that are more interested in them being gone than being there, So we’ll monitor it, but so far so good.

Wesley Golladay, Analyst, Baird: Okay, and then how does the watch list look going forward after at home?

John Albright, President and CEO, Alpine REIT: After at home, I mean, it’s not we’ve been, as you know, very proactive in the last couple years of pruning through different credits, and it’s just really not very deep. We’ve kind of taken the hits where it’s happened, there’s not really anything that kind of keeps us up at night, if you will.

Wesley Golladay, Analyst, Baird: Okay. And then you mentioned looking to sell the two vacant assets. Would those both be in the held for sale bucket? And any insight into how much, I guess, have a little bit negative NOI from those assets, what would the drag be?

John Albright, President and CEO, Alpine REIT: Sure, I’ll let Phil talk about the accounting of that.

Bill Mayes, CFO, Alpine REIT: Yeah, so these are classified as held for sale. I was just on the call, kind of giving you a heads up that we’re kind of more likely, I think, at this point to just avoid the carry cost and move on with the interesting investment opportunities we’re seeing. There’s not a big negative drag on those. It’s just kind of the

John Albright, President and CEO, Alpine REIT: I mean, you got real estate taxes, insurers, probably, man. So it’s it’s not huge, but it’s definitely not fun. So once once those are sold, you know, and you’re paying down your your leverage, it’s quickly accretive.

Wesley Golladay, Analyst, Baird: Yeah. Okay. Thanks, guys.

Conference Operator: Thank you. And one moment as we move on to our next question. And our next question is going to come from the line of Gurav Mehta with Alliance Global Partners. Your line is open. Please go ahead.

: Thank you. Good morning. I wanted to go back to the acquisition market and wanted to get some more color on what kind of properties you’re targeting. Are you looking for investment grade properties that longer lease terms? Or are you kind of open to what you’re seeing in the market?

John Albright, President and CEO, Alpine REIT: Yeah, mean, we’re definitely doing the barbell approach, as we mentioned in the call that we’re looking for investment grade, longer duration leases, or at least good locations where we think we can do an extended and blend after acquiring a property, and then basically coupling that with the kind of higher return yielding sort of investments. So we’re pursuing on both sides, and we feel like we’ll get something done here for sure this quarter. But in general is like we’re going for a higher quality on the acquisition side to couple that with the loan investment side.

: Okay. And then second question on the balance sheet, your leverage was 8.1 times as of 2Q. Can you provide some more color on how you think about the leverage and where you guys are targeting that number?

John Albright, President and CEO, Alpine REIT: Yeah, I mean, as we’re selling assets that will come down and it would have come down in the quarter if the loan payoff happened in the quarter, but it happened a day after. So we can easily manage that on the leverage side. And obviously, buying back stock accretively on earnings and accretively on NAV drives up the leverage a little bit, but it’s the right thing to do. And we have nice free cash flow, so we use that to keep leverage in check as well. But looking for the opportunities to make investments that would basically tick up the leverage a little bit, but then quickly sell through the Walgreens to bring it back down.

So just appropriately managing the balance sheet.

: Okay. And then maybe lastly on the Walgreens. You obviously brought down that exposure. Where do think that target number is for you guys as far as how much ABR you’re getting from Walgreens?

Bill Mayes, CFO, Alpine REIT: Phil? At the end of the quarter, you’re asking about Walgreens, it’s down to about seven. I think it’s actually just a little under like six point point six six, percent, 6.7% of ABR is where it currently stands. Target, I think we’d like to get it down below 5%.

: Okay. Thank you. That’s all I had.

John Albright, President and CEO, Alpine REIT: Great. Thank you.

Conference Operator: Thank you. And our next question is going to come from the line of Craig Kucera with Lucid Capital Markets. Your line is open. Please go ahead.

Gina McKinney, Investor Relations, Alpine REIT0: Yeah. Thanks. Good morning, guys. John, I think earlier this year, you were seeing some compression on structured finance yields versus last year. Is that still the situation today?

John Albright, President and CEO, Alpine REIT: No. Most interesting thing, you would think that the banks would be back at it and it would be competitive, but all of a sudden, talking to very high quality sponsors with very high quality projects, they said that the banks are shrinking again, at least for the activities that these folks are taking on. And so, we’re seeing yields being as good or even maybe better on some certain situations. So luckily, we’re back to a target rich environment.

Gina McKinney, Investor Relations, Alpine REIT0: Got it. That makes sense. And Phil, I just want to go back to the guidance, particularly as it relates to the investment guidance increasing $30,000,000 Is that basically just saying, hey, we got back 27,000,000 $28,000,000 and we’re going to redeploy that? Or are we have you are you lifting like the total amount or the net amount by 30,000,000 versus the prior guide?

Bill Mayes, CFO, Alpine REIT: Yeah, so we did get the 25,000,000 back. And I think just with the interesting opportunities we’re seeing in particular on the loan side, we think later in the year, we can get that redeployed. And so that was kind of the real reason for the pickup.

Gina McKinney, Investor Relations, Alpine REIT0: Okay. Just wanted to double check there. And just one more for me. You’ve got the Bass Pro Shops lease taking occupancy here in the third quarter. Was there any lift in that lease or any change?

Bill Mayes, CFO, Alpine REIT: Yeah, there was. The rent rolled up about $40.50000 dollars a quarter per month and almost $05,000,000 a year. Okay. And then additionally, the lease term that was remaining prior to that assignment was less than ten years. And now it’s twenty years.

Got it. Thanks.

Conference Operator: Thank you. And one moment for our next question. Our next question is going to come from the line of John Masilka with B. Riley Securities. Your line is open.

Please go ahead.

Gina McKinney, Investor Relations, Alpine REIT1: Good morning, everyone. So maybe looking at the loan portfolio again, I know it wasn’t a particularly early prepayment, but do any of the other loans have kind of early repayment options? Could that be kind of a significant thing here if interest rates were to decline, call it, in the next six to twelve months?

John Albright, President and CEO, Alpine REIT: Yeah, you’re not going to see as much early repayments, because it’s really inefficient for these sponsors. Loans are fairly short duration anyway. They’re not gonna go do a refi to save $203,100 bps in spread. It’s really they’re looking to sell these assets primarily. So if interest rates drop, I wouldn’t expect any sort of like mass payoff, early payoffs.

Gina McKinney, Investor Relations, Alpine REIT1: Okay. That’s understandable. And then as you think about the timing of investments, given the increase to the investment volume guidance, should we expect maybe the delta between what’s kind of currently in guidance and what was in guidance at the time of 1Q earnings to close really late in the year? I’m just trying to kind of circle the square, if you will, of the increase in investment volume guidance and the fact that kind of AFFO guidance stayed flat.

John Albright, President and CEO, Alpine REIT: I would say that go ahead, Phil.

Bill Mayes, CFO, Alpine REIT: No, I would say, yes, we would expect that to kind of get deployed later in the year.

Gina McKinney, Investor Relations, Alpine REIT1: Is there anything in when I think about guidance in 2Q versus 1Q, anything baked in there in terms of maybe additional conservatism around at home? Obviously I know the two assets you have are thus far retained. But are you kind of factoring in something as this kind of bankruptcy process is ongoing that obviously probably going to get paid here for the next couple of months, but that could change in the back half of the year?

Bill Mayes, CFO, Alpine REIT: Both of the at home, neither of them again were on the list for closure. Both of them paid to lot rent and we generally expect to collect rent for the remainder of the year. So there’s nothing specific in there. But I mean, it is one of the reasons why we give a range is because unexpected things can happen. But at this point in time, we fully expect to get paid on our at homes.

Gina McKinney, Investor Relations, Alpine REIT1: Okay. That’s it for me. Thank you very much.

Conference Operator: Thank you. And one moment for our next question. And our next question comes from the line of Rob Stevenson with Janney Montgomery Scott. Your line is open. Please go ahead.

RJ Milligan, Analyst, Raymond James: Phil, the 50,000,000 to $70,000,000 disposition guidance, that’s just properties that doesn’t include loan repayments, does it?

Bill Mayes, CFO, Alpine REIT: That’s correct. That’s just property of the disposition side.

RJ Milligan, Analyst, Raymond James: Okay. Then John, given your comments about the difficult acquisition environment these days, you increased the investment guidance, but left the dispositions the same. Why

Michael Goldsmith, Analyst, UBS: not

RJ Milligan, Analyst, Raymond James: look to sell more assets, especially with the stock trading at roughly an implied 10 cap rate and use those proceeds to both lower debt and buy back stock?

John Albright, President and CEO, Alpine REIT: Think that certainly could be a possibility, but we are seeing good investments that are accretive to the company rather than shrinking the company. I think we’re seeing some really good investment opportunities, which will make the enterprise worth more. So, you won’t see us rapidly selling just to buy back stock. As we’re selling assets, we’re being patient about it, not some sort of fire sale. So it’s a little bit just kind of taking our time with it, Unless we see a big acquisition happen and we really want to speed it up, which we would do that.

RJ Milligan, Analyst, Raymond James: Okay. And then, Phil, other than the I think you said it was a zero drag between the yield on the public loan versus the repayment of debt associated with that. Anything other than that, that’s a headwind in the back half of this year earnings wise as we think about the quarterly progression and the investments being back half stacked?

Bill Mayes, CFO, Alpine REIT: No, nothing overly specific. The repayment of loan will be the only really identified drag there. Other than that, look, Rob, it’s just going to depend on the timing of acquisitions and dispositions and kind of which leads.

RJ Milligan, Analyst, Raymond James: Okay. All right. Thanks, guys. Have a good weekend.

John Albright, President and CEO, Alpine REIT: Thanks. You too.

Conference Operator: Thank you. This concludes today’s question and answer session. This also concludes today’s conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.

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