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Alpine Income Property Trust (PINE) is a retail Real Estate Investment Trust (REIT) that invests in owning and operating a portfolio of single-tenant, net leased commercial income properties. Lessees are largely high-quality public tenants, explains Marty Fridson, editor of Forbes/Fridson Income Securities.

The REIT’s tenants include the likes of Walmart, Lowes, Home Depot, Dick’s Sporting Goods, CVS, Walgreens, Dollar General, Best Buy, Tractor Supply, Darden Restaurants, 7-Eleven, and Advance Auto Parts. PINE’s portfolio is well diversified geographically, spread over 138 properties in 103 markets in 35 states as of Sept. 30, 2023.

The company continues to improve the credit quality of its tenant exposure; as of Sept. 30, 2023, 64% of tenants were investment grade, up from 49% a year earlier. On that date, occupancy stood at 99.1%, with strong prospects for remaining at a high level. 

Specifically, occupancy costs for PINE’s portfolio tenants are materially below market rents, reflecting the inflationary pressure on building and land costs. This implies a high likelihood that tenants will exercise their renewal options at expiration.

On the financial side, PINE has a well-staggered debt maturity schedule, with $100 million due in 2026, $100 million in 2027, and $49 million in 2028. On Sept. 30, 2023, outstanding debt was down 7% from a year earlier.

The company has also grown its quarterly dividend by 37.5% since the beginning of 2020. PINE recently traded at around $16.04 and with an indicated yield of approximately 6.4%. Distributions are taxed as ordinary income. We consider this common stock suitable for medium-risk tax-deferred portfolios.

About the Author

Martin Fridson is the publisher of Income Securities Investor and according to Investment Dealers' Digest, he is "perhaps the most well-known figure in the high-yield world." He has served as a CFA Institute governor and consultant to the Federal Reserve Board. In 2002 the Financial Management Association International named Mr. Fridson the Financial Executive of the Year. The CFA Society New York gave him its Ben Graham Award in 2017.

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