Alpine Drives Growth with $277M in Investments and a Barbell Strategy

Date of Call: Feb 6, 2026

Financials Results

• Revenue: Q4: $16.9M; Full Year 2025: $60.5M
• EPS: Q4 FFO/AFFO: $0.54 per diluted share, up 22.7% YOY; Full Year 2025: $1.88-$1.89 per diluted share, up ~8.6% YOY

Guidance:

• FFO per diluted common share: $2.07 to $2.11 for full year 2026.
• AFFO per diluted common share: $2.09 to $2.13 for full year 2026.
• Investment volume: $70M to $100M.
• Disposition volume: $30M to $60M.
• Growth reflects dispositions generally closing earlier than acquisitions.

Business Commentary:

Investment Volume and Earnings Growth:

• Alpine Income Property Trust reported a record annual investment volume of $277.7 million for 2025, driving an 8.6% increase in AFFO per common share.
• The strong earnings growth was primarily due to this high level of investment activity and disciplined balance sheet management.

Property Acquisitions and Dispositions:

• The company acquired 13 properties for $100.6 million and sold 9 noncore properties for $38.4 million in 2025, representing a strategic barbell approach.
• This strategy aimed to balance investment-grade tenants with higher-yielding properties, enhancing overall portfolio yield.

Commercial Loan Portfolio Expansion:

• Alpine originated $177 million worth of commercial loans in 2025, with a weighted average initial coupon of 12%.
• The growth in this portfolio was fueled by the company's reputation and relationships, enabling access to high-yielding opportunities with quality sponsors.

Capital Markets and Debt Refinancing:

• The company issued $50 million of Series A preferred stock and raised an additional $18.3 million through ATM programs.
• This capital was used to fund investments and was supplemented by a new credit facility that improved pricing and provides more flexibility.

Dividend Increase and Taxable Income:

• The Board increased the quarterly common dividend by 5.3% to $0.30 per share, reflecting a 56% AFFO payout ratio.
• The increase was driven by earnings growth and an increase in taxable income, particularly from the accretive commercial loan portfolio.

Sentiment Analysis:

Overall Tone: Positive

• Management reported a "strong fourth quarter highlighted by 22.7% growth in AFFO per common share" and "record annual investment volume" of $277.7M. The tone is optimistic about the outlook, stating the company is "excited about the outlook" and has "significant scale and momentum."

Q&A:

• Question from Michael Goldsmith (UBS): First question on the loan portfolio. It looks like you set kind of an upward boundary of 20% of the portfolio. So can you just talk a little bit about how you came to setting it at that level? I guess, where the loan portfolio steps today, stands today relative to that and then just how much more you can do to kind of hit that max? And if you expect to hit that this year?
  Response: The 20% threshold is a reasonable, complementary level to the property business. At year-end, the loan portfolio was ~$130M, leaving a runway for an additional $25M-$30M.

• Question from Michael Goldsmith (UBS): My follow-up is you continue to reduce your exposure to some of the tenants that aren't in favor. Walgreens has moved considerably down the list, I guess, just where do you stand with that? Is there more work to do? Are you happy with where you're at? Just trying to get a sense of are we at the end of that activity? Or is there just a little bit more to do?
  Response: There is still some activity to sell additional Walgreens properties; the company is currently working on sales but will be prudent and not forced to sell.

• Question from Jay Kornreich (Cantor Fitzgerald): I guess just following up on that first question about the 20% threshold for the loan investments. That's really been such a strong source of growth for you guys and continues to be -- and as a large swath of the investments this past year was focused on that. So I mean, even though you've outlined how much more room you have to 20%, I mean, why not push much greater beyond that 20% threshold? Do you guys, I guess, consider doing that? Do you want to do that as you think about your opportunities in 2026?
  Response: The company does not intend to push beyond 20% as it wants to maintain focus on the core net lease property business, which is the primary source of investments.

• Question from Jay Kornreich (Cantor Fitzgerald): And then just one follow-up. You talked about some of the capital raising you did in the fourth quarter. And I guess I wanted to talk about the $10 million on the ATM that you adapt. And just curious about how you think about deploying more equity capital at these current stock prices I guess, assessing your cost of equity. I'm assuming that's really being more used for the higher-yield divestment loans. So just curious how you think about deal spreads relative to your cost of capital versus the investment loans, just how you target that and think about issuing more.
  Response: The company will be prudent but sees the math works for funding highly accretive investments, even at current stock prices, as it reissues shares that were previously bought back.

• Question from Wesley Golladay (Baird): Just a question on the dividend. You definitely raised it again. And when you think about that, is that mainly driven by the earnings growth that you have and having to pay out a dividend that's a little bit higher? And why not trying to retain more cash flow?
  Response: The dividend raise was driven by both earnings growth and growth in taxable income, particularly from the loan portfolio which generates income without depreciation tax cover, necessitating a payout to balance.

• Question from Wesley Golladay (Baird): One question on the loan where you have the developer for the Phase I. Are you starting to see any lot sales there? And when can you expect to get repaid? And then a follow-up would be, would you expect the second loan to start funding before the first one starts paying off?
  Response: Lot sales are already repaying the first loan, with repayments expected more late spring. The second loan funding will likely occur before the first loan is fully repaid.

• Question from R.J. Milligan (Raymond James): Just wanted to follow up on the loan book. John, longer term, as some of these loans are paid off, do you expect to continue to redeploy that capital and maintain that 20% allocation over the next several years? Or do you expect that to come down over time?
  Response: The company intends to maintain the 20% allocation long-term, as the pipeline is strong and they see opportunity to refill the portfolio as loans are repaid.

• Question from Gaurav Mehta (Alliance Global Partners): I wanted to follow up on the balance sheet and wondering if you would comment on your leverage expectations in 2026?
  Response: The company is happy with current leverage and the pricing tier, expecting it to run roughly where it is for the year unless opportunities change.

• Question from Gaurav Mehta (Alliance Global Partners): Second follow-up on the investment opportunities. In the prepared remarks, you commented on falling a barbell approach in '26. Just wondering if you could comment on, I guess, the opportunities that you're seeing both on the investment and non-investment grade part of the portfolio for acquisitions?
  Response: The company is excited about net lease opportunities, particularly bringing in new investment-grade credits to strengthen the top tenancy.

• Question from Jason Weaver (Jones Trading): Congrats on a big year in '25. First, on the acquisition and disposition guide, which is down a lot versus '25 with the capital base growing. Is there anything we can read into that, just taking from a point of conservatism? Is it some sort of hesitance about market conditions? Or is there something else that is out there?
  Response: The guide is conservative to ensure the company only buys high-quality assets it is comfortable with, not being forced into lower-quality or commodity assets.

• Question from Craig Kucera (Lucid Capital Markets): Phil, you included the PIK interest earned in AFFO, and I understand that makes sense this quarter because there was hardly anything that wasn't collected in cash. Is that your expectation for the foreseeable future?
  Response: Yes, the company will continue to include PIK interest in AFFO and will provide schedules to show cash vs. PIK interest for transparency.

• Question from John Massocca (B. Riley Securities): So maybe just going back to guidance a little bit. What's kind of the -- be kind of broad ranges, but expected yield on the investment volume you're kind of putting into guidance? And I guess, kind of implied in that question is how do you see the mix in that expected volume being demarked between structured investments versus net lease investments?
  Response: Of the $70M-$100M guidance, ~$25M-$30M is expected from loans (ramping in H1) and the balance from properties. Loan yields are similar to historical rates; property cap rates for quality investment-grade credits remain tight but similar to last year.

Contradiction Point 1

Permanence of Loan Portfolio Strategy

Contradiction on whether the loan portfolio is a core, permanent strategy or a temporary growth phase.

What is the current status of the loan portfolio, and is there still more work to be done? - Michael Goldsmith (UBS Investment Bank)

2025Q4: The 20% threshold... the company intends to keep the loan portfolio at this level long-term as the pipeline is strong. - John Albright(CEO)

Is the increased loan activity a permanent or temporary part of the strategy? - John Massocca (B. Riley Securities)

2025Q3: It has become a permanent fixture... make the loan program a core part of the investment strategy. - John Albright(CEO)

Contradiction Point 2

Reinvestment of Proceeds vs. Debt Reduction

Contradiction on the primary use of proceeds from loan maturities and asset sales.

Do you expect those individuals to utilize most of the capital in 2026? Was the loan amendment this quarter solely an extension? - Craig Kucera (Lucid Capital Markets, LLC)

2025Q4: Proceeds will primarily be reinvested into new loan commitments, with some margin for debt reduction. - Philip Mays(CFO)

How are you funding Q4's net investment, and when will leverage peak? - Robert Stevenson (Janney Montgomery Scott)

2025Q3: Proceeds from loan sales and maturities will help fund new investments, limiting leverage increase. - Philip Mays(CFO)

Contradiction Point 3

Capital Allocation for Loan Repayments and Leverage Management

Conflicting priorities on using loan payoffs to reduce leverage versus reinvesting.

John, as loans are paid off, will you redeploy the capital to maintain the 20% allocation over the next several years, or is a decrease expected? - R.J. Milligan (Raymond James & Associates, Inc.)

2025Q4: The company intends to maintain the 20% loan allocation long-term and refill it as loans burn off, given the strong pipeline. - John Albright(CEO)

Will early loan payoffs be allocated to pay down the credit facility instead of being reinvested? - Matthew Erdner (JonesTrading Institutional Services)

2025Q2: Yes, early payoffs... are used to pay down the credit facility. The company will manage leverage by selling assets... if needed to keep leverage reasonable while pursuing new investments. - John Albright(CEO)

Contradiction Point 4

Disposition Guidance and Capital Allocation Approach

Shift from a cautious, selective approach to a more conservative, potentially constrained outlook.

What explains the significant decline in the acquisition and disposition guide compared to '25, given the growing capital base—is it conservatism, hesitance about market conditions, or something else? - Jason Weaver (JonesTrading Institutional Services, LLC)

2025Q4: The lower guidance is conservative and reflects a careful approach to portfolio curation, avoiding forced purchases of lower-quality assets. - John Albright(CEO)

Given the challenging acquisition environment and low stock cap rate, why not sell assets to reduce debt and buy back stock? - Robert Chapman Stevenson (Janney Montgomery Scott)

2025Q2: The company is seeing good, accretive investment opportunities... and is being patient with asset sales... The focus is on deploying capital into value-creating investments... - John Albright(CEO)

Contradiction Point 5

Guidance Conservatism and Future Investment Volume

Contradiction on the approach to setting conservative vs. optimistic investment guidance.

John, as loans are paid off, will you continue redeploying the capital? - R.J. Milligan (Raymond James & Associates, Inc.)

2025Q4: The company intends to maintain the 20% loan allocation long-term and refill it as loans burn off, given the strong pipeline. - John Albright(CEO)

What will drive the upper end of your guidance? - Matthew Erdner (JonesTrading)

2025Q1: The upside in guidance is primarily tied to the **sale of non-income producing assets**... providing a catalyst for earnings growth. - John Albright(CEO)