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Alpine Income shares gain Buy rating as 4Q investments drive solid cap rates

EditorAhmed Abdulazez Abdulkadir
Published 01/03/2025, 06:22 AM
PINE
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On Friday, Stifel analysts lowered the price target on Alpine Income Property Trust (NYSE:PINE) to $-- from the previous target of $20.25, while still upholding a Buy rating on the stock.

According to InvestingPro data, analyst targets currently range from $18 to $22, with the stock trading at a P/E ratio of 67.8. The adjustment followed the company's disclosure of its full-year and fourth-quarter 2024 transaction activity.

Alpine Income Property Trust, which boasts a robust 6.71% dividend yield and has raised its dividend for six consecutive years, announced it had acquired a Lowe's (NYSE:LOW) Home Improvement property located in Knoxville, Tennessee, for $22.5 million.

The company's investment activities for the fourth quarter totaled approximately $50.5 million, with an average capitalization rate, or cap rate, of around 7.5%. The full-year 2024 acquisition volume reached $134.7 million, achieving an initial yield of 8.7%.

The transactions for the year included a significant proportion of investment-grade tenants, constituting 51.0% of the acquisitions made in 2024. Investment-grade tenants are typically considered lower risk due to their strong credit ratings.

The company's strategic moves, including the recent purchase in Knoxville, reflect its ongoing efforts to strengthen its property portfolio. Alpine Income Property Trust's focus on acquisition and disposition activities aims to optimize its asset mix and enhance shareholder value. InvestingPro analysis reveals the company maintains a "Good" financial health score, with additional insights available in the comprehensive Pro Research Report covering this $258.49 million market cap REIT.

Stifel's revised price target reflects the firm's continued confidence in Alpine Income Property Trust's growth trajectory despite the adjustments made based on the company's latest financial activities and market conditions.

In other recent news, Alpine Income Property Trust has seen several significant developments. The company announced a reshuffling of its board, with the departure of Jeffrey S. Yarckin and the appointment of Brenna A. Wadleigh. Wadleigh, the CEO of N3 Real Estate, brings extensive experience in commercial real estate to the board.

In financial news, Alpine reported robust Q3 results, with total revenue reaching $13.5 million and significant growth in funds from operations (FFO) and adjusted funds from operations (AFFO). The company also raised its 2024 adjusted funds from operations per share forecast, surpassing the Street's consensus.

The company's strategic asset management has been a highlight, with successful asset recycling and a high-yielding loan portfolio. Alpine has acquired four net lease properties for $37.5 million and sold eight properties for $48.6 million.

Stifel, a financial services firm, adjusted Alpine's stock price target and maintained a Buy rating, reflecting the company's positive financial trajectory. The company has also raised its expectations for property acquisitions and dispositions for 2024.

Despite a constrained lending environment, Alpine's management remains optimistic about transaction opportunities and capital availability, actively managing its portfolio and evaluating positions in dollar stores and Dick's Sporting Goods (NYSE:DKS). However, the company is cautious about increasing its exposure to Dick's Sporting Goods beyond 11%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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