On Monday, Stifel adjusted the price target for Alpine Income Property Trust (NYSE:PINE) to $18.00, down from the previous target of $18.75, while retaining a Buy rating on the stock. The adjustment follows a review of the company's loan investment portfolio, which was initiated with a $24 million loan in November 2023, secured by 41 properties.
Since then, two properties have been sold, reducing the loan balance to $23.4 million. Alpine Income Property Trust's investment now stands at approximately $9.8 million, with an increased interest rate of 9.94%.
Alpine Income Property Trust distributes a quarterly dividend of $0.275 per share, totaling an annualized dividend of $1.10. This dividend provides a yield of 7.0% and corresponds to a 69.8% payout ratio of the company's forecasted adjusted funds from operations (AFFO) for 2025.
Stifel has also revised its AFFO estimates for Alpine Income Property Trust, lowering the 2024 forecast to $1.61 from $1.64, the 2025 estimate to $1.58 from $1.63, and maintaining the 2026 estimate at $1.58.
As of March 31, the company's net-debt plus preferred to EBITDA ratio was reported at 7.4 times. The ongoing loan repayments are expected to reduce the company's leverage. Currently, Alpine Income Property Trust's net debt plus preferred equity to enterprise value (EV) stands at 51.9%, which is higher than the average of 36.3% for its peer group.
In terms of valuation, Stifel's first-quarter net asset value (NAV) estimate for Alpine Income Property Trust is $20.25, based on a capitalization rate of 7.00%. The estimated NAV range for the first quarter is between $23.00 and $17.75, reflecting a capitalization rate range of 6.5% to 7.5%. Presently, the company's stock is trading at an implied capitalization rate of 8.0%.
InvestingPro Insights
In light of Stifel's recent price target adjustment for Alpine Income Property Trust (NYSE:PINE), current data from InvestingPro offers additional insights into the company's financial health and market performance. The company's market cap stands at a modest $212.79 million, which is a critical figure for investors gauging the size and stability of PINE in the market. Despite negative sentiment, as indicated by a negative P/E ratio of -321.02, PINE's dedication to shareholder returns is evident with a noteworthy dividend yield of 7.02%, which aligns with the article's mention of a solid 7.0% yield.
InvestingPro Tips highlight that management's confidence is reflected through aggressive share buybacks, and the company's commitment to income is shown by raising its dividend for 5 consecutive years. However, analysts' downward revisions for upcoming earnings and the expectation of a net income drop this year suggest caution. It's also worth noting that PINE has not been profitable over the last twelve months, which is an essential consideration for potential investors.
For those interested in a deeper dive into PINE's financials and future outlook, there are more InvestingPro Tips available at https://www.investing.com/pro/PINE. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could inform investment decisions. There are 6 additional tips listed in InvestingPro to further guide your analysis on Alpine Income Property Trust.
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