Houston, Texas – Alpine Income Property Trust, a real estate investment trust based in the United States, is making waves in the retail sector with its impressive portfolio of 137 net lease properties across 34 states. With a remarkable 99.1% occupancy rate reported in the second quarter of fiscal year 2024, Alpine stands out among its peers in the industry.

Since its initial public offering in 2019, Alpine has seen substantial growth, increasing its property count nearly sevenfold and expanding its annualized base rent from $13.3 million to $39.8 million. The company has also diversified its tenant base, reducing its reliance on top tenants from 21% at IPO to 12% in the second quarter of fiscal year 2024.

Alpine’s focus on credit-rated tenants adds to the stability of its rental income. With 67% of its annualized base rent coming from investment-grade tenants, the company is well-positioned to weather economic uncertainties. Most of Alpine’s properties are strategically located in densely populated areas like Houston, Atlanta, Chicago, and New York, providing a strong economic foundation for its tenants.

One key highlight for investors is Alpine’s projected growth prospects and well-structured maturity ladder. The company’s undervalued shares, coupled with a high dividend yield relative to the REIT sector, make it an appealing investment opportunity. Alpine’s conservative cash flow distribution leaves room for potential dividend increases in the future, further enhancing its attractiveness to investors.

In the second quarter, Alpine executed strategic moves by selling two properties housing investment-grade tenants and acquiring a property that added to its adjusted funds from operations per share. The company is actively reducing its exposure to Walgreens properties, a strategic move considering the challenges facing the brand in the market. Management’s focus on growth is evident, with a low adjusted funds from operations payout ratio compared to industry peers.

Alpine’s balance sheet strength is a key asset, with no debt maturing until 2026 and minimal floating interest rate exposure. The company’s access to over $184 million in liquidity positions it well to capitalize on potential opportunities in the market. Additionally, Alpine’s debt ratios compare favorably against industry peers, providing financial stability in changing economic conditions.

Despite some risks associated with tenant exposure to macroeconomic conditions, Alpine’s attractive valuation and growth potential make it a compelling investment opportunity. With a strong focus on increasing shareholder value through accretive acquisitions and conservative financial strategies, Alpine Income Property Trust presents a promising outlook for investors seeking exposure to the small-cap REIT sector.