Alpine Income Property Trust, Inc.

For Q2, total revenue was $20 million, including $12.6 million of lease income and $7.3 million of commercial loan interest income. FFO was $0.57 per diluted share and AFFO was $0.58 per diluted share, up about 3% and 32% year over year, respectively, per management. Year to date, total revenue was $38.4 million, FFO was $1.10 per diluted share, and AFFO was $1.11 per diluted share. Quarter-end annualized straight line base rent was $50 million, the property portfolio totaled 128 properties, occupancy was 99.5%, and WALT was 9.2 years. The quarter included approximately $300 thousand of other income from a nonrefundable deposit tied to the At Home sale contract termination. For 2026, management raised guidance to FFO of $2.10 to $2.13 per diluted share and AFFO of $2.12 to $2.15 per diluted share. Investment volume guidance remains $170 million to $200 million, while disposition volume guidance was lowered to $20 million to $40 million. The quarterly common dividend will rise to $0.32 per share in Q3, and the quarterly preferred dividend remains $0.50 per share.

John Albright framed the quarter as another strong period of execution, emphasizing credit quality, portfolio growth, and disciplined capital allocation. He highlighted the increase in investment-grade exposure to 55% of ABR, the addition of high-quality tenants like Aldi, HomeGoods, Petco, Lowe's, and Alamo Drafthouse, and the fact that the loan portfolio stayed at the targeted 20% of undepreciated asset value. His tone was constructive and confident, especially on the pipeline, which he said includes attractive net-lease opportunities and some additional loan prospects.

Philip Mays focused on the reported numbers, capital markets activity, and guidance mechanics. He said Q2 revenue was $20 million, FFO was $0.57, and AFFO was $0.58 per diluted share, with the quarter benefiting from about $300 thousand of other income tied to a nonrefundable deposit. He also detailed that the company issued about 1.1 million common shares at a gross price of $19.31 and about 156 thousand preferred shares at $25.18, raising $61.7 million year to date through ATM programs. On the balance sheet, he noted net debt to pro forma adjusted EBITDA of 6.4x, $370 million of debt at a 4.38% weighted average rate, $83 million of liquidity, and no debt maturities until 2029. He said the dividend increase was driven by taxable income growth, and he raised full-year 2026 FFO/AFFO guidance while lowering expected dispositions.

Analysts focused on whether the loan book could grow above 20% of assets, how acquisitions would be funded, and why disposition guidance was reduced. Management said the loan portfolio should not move meaningfully above 20% except for timing, and that acquisition funding would initially come from the credit line, with dispositions or equity used if appropriate. On dispositions, management said the lower target reflects timing, as some tenants have expressed interest in longer lease terms and the company wants to wait for extensions or renewals to capture better value. Analysts also asked about the unfunded loan commitments, the dividend increase, and the theater acquisition; management said the commitments are mostly expected to fund over time, the dividend increase was driven by taxable income, and the Alamo Drafthouse ground lease was attractive because of Sony credit, a long lease, Denver location, and improving theater trends.