Tuesday, Truist Securities adjusted its price target for Alpine Income Property Trust (NYSE:PINE), increasing it to $18.00 from the previous $16.00, while maintaining a Hold rating on the stock. The revision follows the company's second quarter 2024 performance.
The firm's analyst cited Alpine's second quarter results as the basis for the updated price target, noting an increase in the 2024 adjusted funds from operations (AFFO) per share estimate to $1.65, up from $1.57. This new estimate falls within the management's guidance range for 2024, which is set between $1.60 and $1.64. Additionally, the 2025 AFFO estimate was raised to $1.79 per share from $1.76.
The updated estimates suggest a year-over-year increase of 10.3% for 2024 and 9% for 2025, with an average annual growth of 2.4% through 2028. The projections are based on assumptions of $80 million in acquisitions with a 7.3% yield and $77 million in dispositions at a 6.5% yield for the year 2024.
The new 12-month price target of $18 is derived from a $22.20 discounted cash flow estimate, which carries a one-third weighting, a 35% assumed discount to the projected net asset value (NAV) a year from now, also with a one-third weighting, and 10 times the estimated 2024 AFFOps, accounting for the remaining third.
Currently, Alpine Income Property Trust trades at a 14% discount to Truist Securities' NAV estimate, compared to the past three-year average discount of 20% to consensus NAV, and at 10 times the 2024 AFFO against a historical average of 12 times.
In other recent news, Alpine Income Property Trust, a real estate investment trust, has reported several key developments. The company announced the extension of its existing management agreement with Alpine Income Property Manager, LLC until January 31, 2025, ensuring continuity in the management of its real estate portfolio. In financial highlights, Alpine reported a 13.9% increase in Funds from Operations (FFO) per share in the first quarter of 2024, reaching $0.41 per share.
Subsequently, 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. This transaction is part of Alpine's broader strategy to manage its investment portfolio and maintain financial flexibility.
Stifel, an independent research firm, maintained a Buy rating on Alpine'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.
InvestingPro Insights
As Alpine Income Property Trust (NYSE:PINE) navigates through its financial year, recent data and analysis from InvestingPro provide additional context to the company's performance and stock valuation. The market capitalization of Alpine stands at a modest $256.11 million, reflecting the scale of the company within the real estate investment trust (REIT) sector. Despite challenges, the company has demonstrated a commitment to shareholder returns, with a notable dividend yield of 6.38%, rewarding investors even in turbulent times. This commitment is further evidenced by the company's track record of raising its dividend for five consecutive years, an InvestingPro Tip that aligns with the positive sentiment from Truist Securities' updated price target.
Another InvestingPro Tip highlights that management has been actively buying back shares, signaling confidence in the intrinsic value of the company. This can be a reassuring sign for investors looking for management alignment with shareholder interests. However, it's worth noting that some analysts have revised their earnings projections downwards for the upcoming period, which could indicate potential headwinds for the company.
Investors should also be aware that Alpine's stock is trading near its 52-week high, at 97.29% of this peak value, which suggests a strong recent performance but may also raise questions about the room for further upside. For those considering an investment, using the coupon code PRONEWS24 can provide up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to InvestingPro, where 10 additional InvestingPro Tips are available to help make more informed investment decisions.
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