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Alpine Income on Acquisition Spree, Adds 2 Retail Properties

Zacks Equity Research

Alpine Income Property Trust, Inc. PINE has been focusing on the expansion of its portfolio of single-tenant net leased properties on the back of acquisitions. In line with such efforts, the company recently announced the buyout of two single-tenant, net-leased retail income properties for an aggregate price of $3.2 million.

The properties are situated in Texas and leased to Dollar General. Also, Dollar General is one of the company’s top five largest tenants, based on the percentage of the annualized base rent.

The transaction indicates a weighted average going-in cap rate of 6.48%. Each asset has 14.8 years remaining on the initial lease term. This along with the investment-grade rating of the tenants’ parent entity suggests that the company will enjoy a steady stream of rental revenues in the long term.

Moreover, the purchase was funded with the company’s line of credit.

Earlier this month, the company acquired 12 single-tenant retail properties across two transactions for $18.85 million. Specifically, three such acquired properties were located in Maine and leased for the long term to an affiliate of Dollar General. The leases have 13.1 years remaining on the initial lease term.

Other acquisitions include eight single-tenant net-leased retail income properties situated in New York and Ohio, and another in Maryland. The properties in New York and Ohio are also leased to Dollar General. Further, while the Maryland-based property is leased to Advance Auto Parts AAP, this portfolio has a weighted average remaining lease term of 12.4 years.

Through such buyouts, the company expanded its portfolio and geographic footprint to 45 properties across 32 markets and 18 states. In fact, it shelled $97.5 million for the purchase of single-tenant net leased properties year to date.

Such moves are a strategic fit and will drive revenues in the long term.

Shares of Alpine Income have lost 17.9% compared with the industry’s decline of 11.5% over the past year.

 


The company carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Duke Realty Corporation’s DRE Zacks Consensus Estimate for 2020 FFO per share has been revised 3.5% upward to $1.49 over the past two months. The company currently carries a Zacks Rank of 2.

Sabra Healthcare REIT, Inc.’s SBRA FFO per share estimates for the ongoing year have been revised 1.2% upward to $1.74 over the past month. The company currently carries a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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Duke Realty Corporation (DRE) : Free Stock Analysis Report
 
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
 
Sabra Healthcare REIT, Inc. (SBRA) : Free Stock Analysis Report
 
Alpine Income Property Trust, Inc. (PINE) : Free Stock Analysis Report
 
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