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Alpine Income (PINE) Grabs Diversified Portfolio for $14.8M

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Alpine Income Property Trust, Inc. PINE has been eyeing the expansion of its portfolio of net leased properties on the back of acquisitions. In line with such efforts, the company recently announced the purchase of a diversified portfolio for $14.8 million. The acquired portfolio offers tenant, sector and geographic diversity.

The company has acquired a portfolio of nine high-quality retail net lease properties, and is under agreement to acquire a 10th property. These 10 properties are located across eight states. The acquisition has been made through a partial operating partnership unit transaction.

The move is a strategic fit for Alpine Income as these properties are net leased to leading operators in e-commerce resistant and necessity-based retail industries. The tenants come from the auto parts, auto service, quick service restaurant and dollar store sectors.

This, along with the investment-grade rating of majority of tenants, suggests that the company will enjoy a steady stream of rental revenues over the long term. In fact, almost 65% of the annualized base rent comes from properties leased to, or with leases guaranteed by investment grade-rated entities.

Markedly, during first-quarter 2021, Alpine Income acquired five net lease properties for a total acquisition volume of $21.9 million, reflecting a weighted-average going-in cash cap rate of 8.2%.

Such inorganic growth efforts are a strategic fit and will drive the top line over the long haul. Specially, having tenants belonging to the necessity-based retail industries has been the saving grace amid the tepid retail real estate environment and therefore, the company’s focus on boosting its tenant roster with such tenants is encouraging. Nevertheless, amid concerns over a protracted recovery of its asset category, the Zacks Consensus Estimate for 2021 funds from operations (FFO) per share moved 1.2% south over the past month.

Shares of this Zacks Rank #4 (Sell) company have gained 6.5% in the past three months compared with the industry’s rally of 11.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Mack-Cali Realty Corporation’s CLI Zacks Consensus Estimate for 2021 FFO per share moved up marginally over the past week. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

National Storage Affiliates Trust’s NSA consensus estimate for the current-year FFO per share moved 4.7% north to $1.99 in a month’s time. Currently, the company carries a Zacks Rank of 2.

Braemar Hotels & Resorts Inc. BHR holds a Zacks Rank of 2, at present. The consensus estimate for the ongoing year’s FFO per share has been revised 4.5% upward to 46 cents over the past month.

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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MackCali Realty Corporation (CLI) : Free Stock Analysis Report

National Storage Affiliates Trust (NSA) : Free Stock Analysis Report

BRAEMAR HOTELS & RESORTS INC. (BHR) : Free Stock Analysis Report

Alpine Income Property Trust, Inc. (PINE) : Free Stock Analysis Report

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