Alpine Income Property Trust Reports 16.6% Revenue Growth, Net Income Turnaround in Q3 2024

Alpine Income Property Trust, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. Total assets increased to $578.99 million from $564.56 million at the end of 2023. However, the net value of real estate decreased to $407.39 million, down from $443.59 million, while commercial loans and investments surged to $86.55 million from $35.08 million.

For the three months ended September 30, 2024, total revenues rose to $13.48 million, a 16.6% increase from $11.56 million in the same period of 2023. Net income from operations saw a substantial increase to $6.46 million, compared to $1.38 million in the prior year, marking a 368.5% rise. Overall net income for the quarter was $3.35 million, a significant turnaround from a net loss of $0.94 million in Q3 2023.

The nine-month results also reflected growth, with total revenues reaching $38.44 million, up from $34.06 million, and net income increasing to $3.29 million from $2.90 million. The company attributed these improvements to higher lease income and increased interest income from commercial loans, which rose to $3.50 million from $0.10 million year-over-year.

Alpine's operational strategy included the acquisition of six properties for $53.1 million during the nine months ended September 30, 2024, and the sale of ten properties for $55.2 million, generating gains of $4.3 million. The company’s property portfolio consisted of 133 net leased properties across 34 states, with an occupancy rate of 99%.

In terms of financial management, total liabilities increased to $307.03 million from $288.95 million, while total equity decreased slightly to $271.95 million. The company issued additional common stock, increasing shares outstanding to 14.25 million. Dividends in excess of net income rose to $(10.65 million) from $(2.36 million), indicating a shift in dividend policy.

The company also reported a significant increase in capital expenditures, totaling $49.26 million for the quarter, compared to $26.59 million in the same period of 2023. This included $42.68 million for commercial loans and investments, reflecting a strategic pivot towards expanding its investment in this area.

Overall, Alpine Income Property Trust, Inc. demonstrated robust revenue growth and improved profitability, driven by strategic acquisitions and a focus on commercial loans, despite some declines in real estate values and total equity.