Alpine Income Property Garners Attention For Its Stability And Liquidity, Says Analyst

EF Hutton analyst Gaurav Mehta initiated coverage on Alpine Income Property Trust Inc PINE with a Buy rating and announced a price target of $22.
Alpine is a REIT (Real Estate Investment Trust) that owns net-leased retail properties.
The analyst has a positive view of PINE’s operating performance because of stable occupancy, below-market rents, and minimal lease expiration of 1% in 2023.
Year-to-date, the company has acquired properties for $181.3M at a 7.1% average cap rate.
The company expected cap rate expansion as a result of higher interest rates and highlighted a change in the transaction market reflecting higher cap rates in September.
The analyst believes that the 2023 acquisition volume could depend on the spread between cap rate and cost of capital, and disposition opportunities.
Since 2019, the company has recycled out-of-office properties and increased exposure to investment-grade tenants, which Mehta views as a positive.
Also, the company has access to multiple sources of capital and a credit facility to fund external growth.
There is no debt maturing until 2026, and the analyst marks this as a positive.
Mehta thinks a more internal management model than the external one would do good for Alpine.
Overall, the analyst said the Buy rating was driven by stable operating performance, a growing base of investment-grade tenants, an active asset recycling strategy, a balance sheet with liquidity and a focus on lowering leverage, and a discounted relative valuation.
Price Action: PINE shares are trading higher by 1.62% at $18.79 on the last check Wednesday.