Alpine Income Property Trust (PINE – Free Report) announced the acquisition of a property leased to Lowe’s Home Improvement (LOW – Free Report) in Knoxville, TN, alongside a strong year-end summary of its investment and disposition activities.
PINE’s $22.5 million purchase of the Lowe’s property in December 2024 reflects the company’s focus on acquiring properties with long lease terms and strong tenant creditworthiness. The lease, which extends for approximately 13 years, ensures stable cash flow from an investment-grade tenant with an S&P rating of BBB+. With this acquisition, Lowe’s becomes PINE’s second-largest tenant based on annual base rent (ABR), further bolstering its tenant roster alongside Dick’s Sporting Goods (DKS – Free Report) , the largest tenant with BBB rating from S&P.
For the full year 2024, PINE completed $134.7 million in investments, achieving a weighted average initial investment yield of 8.7%. This performance underscores management’s ability to identify and secure high-quality assets at attractive valuations, driving long-term shareholder value.
PINE’s active portfolio management strategy was equally evident on the disposition side, where the company executed $75.6 million in property and structured investment sales at a weighted average exit cash cap rate of 6.6%. Particularly in December, the company sold a Walgreens (WBA – Free Report) property, a former Mountain Express convenience store, and an AutoZone location. These sales not only freed up capital for reinvestment but also reduced Walgreens’ contribution to ABR, from the largest tenant at the start of 2024 to the fourth-largest by year-end.
Wrapping Up
By reallocating resources from lower-growth properties to stronger-performing assets, PINE continues to align its portfolio with tenants offering greater financial stability and growth potential. PINE’s portfolio metrics at year-end 2024 reflect a stronger, more resilient foundation. Approximately 51% of ABR now comes from investment-grade tenants, providing greater cash flow stability. Additionally, the weighted average remaining lease term increased from 7.0 years at the start of the year to 8.8 years, extending income visibility and reducing near-term renewal risk.
Shares of this Zacks Rank #1 (Strong Buy) company have rallied 9.8% in the past six months, outperforming the real estate market’s upside of 7.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
The recent estimate revision trends also mark a bullish view of analysts, with the consensus estimate for funds from operations (FFO) per share being revised upward over the past month for both 2024 and 2025.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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