Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 10, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001786117 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-39143 | ||
Entity Registrant Name | ALPINE INCOME PROPERTY TRUST, INC. | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 84-2769895 | ||
Entity Address, Address Line One | 1140 N. Williamson Blvd. | ||
Entity Address, Address Line Two | Suite 140 | ||
Entity Address, City or Town | Daytona Beach | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32114 | ||
City Area Code | 386 | ||
Local Phone Number | 274-2202 | ||
Title of 12(b) Security | COMMON STOCK, $0.01 PAR VALUE | ||
Trading Symbol | PINE | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Listing, Par Value Per Share | $ 0.01 | ||
Entity Public Float | $ 107,384,455 | ||
Entity Common Stock, Shares Outstanding | 7,462,341 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Real Estate: | ||
Land, at cost | $ 83,210 | $ 54,387 |
Building and Improvements, at cost | 142,679 | 74,070 |
Total Real Estate, at cost | 225,889 | 128,457 |
Less, Accumulated Depreciation | (6,550) | (417) |
Real Estate—Net | 219,339 | 128,040 |
Cash and Cash Equivalents | 1,894 | 12,342 |
Intangible Lease Assets—Net | 36,881 | 22,358 |
Straight-Line Rent Adjustment | 2,045 | 68 |
Deferred Expenses | 577 | |
Other Assets | 1,431 | 788 |
Total Assets | 261,590 | 164,173 |
Liabilities: | ||
Accounts Payable, Accrued Expenses, and Other Liabilities | 1,984 | 1,472 |
Prepaid Rent and Deferred Revenue | 1,055 | 88 |
Intangible Lease Liabilities—Net | 3,299 | 1,908 |
Long-Term Debt | 106,159 | |
Total Liabilities | 112,497 | 3,468 |
Commitments and Contingencies | ||
Equity: | ||
Preferred Stock, $0.01 par value per share, 100 million shares authorized, no shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively | ||
Common Stock, $0.01 par value per share, 500 million shares authorized, 7,458,755 shares issued and outstanding as of December 31, 2020 and 7,902,737 shares issued and outstanding as of December 31, 2019 | 75 | 79 |
Additional Paid-in Capital | 132,878 | 137,948 |
Dividends in Excess of Net Income | (5,713) | (498) |
Accumulated Other Comprehensive Loss | (481) | |
Stockholders' Equity | 126,759 | 137,529 |
Noncontrolling Interest | 22,334 | 23,176 |
Total Equity | 149,093 | 160,705 |
Total Liabilities and Equity | $ 261,590 | $ 164,173 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred Stock | ||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 500,000,000 | 500,000,000 |
Common Stock, shares issued | 7,458,755 | 7,902,737 |
Common Stock, shares outstanding | 7,458,755 | 7,902,737 |
CONSOLIDATED AND COMBINED STATE
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Revenues: | ||||
Lease Income | $ 1,394 | $ 11,837 | $ 19,248 | $ 11,720 |
Total Revenues | 1,394 | 11,837 | 19,248 | 11,720 |
Operating Expenses: | ||||
Real Estate Expenses | 372 | 1,664 | 2,316 | 1,620 |
General and Administrative Expenses | 339 | 1,683 | 4,660 | 1,184 |
Depreciation and Amortization | 687 | 4,859 | 9,949 | 4,901 |
Total Operating Expenses | 1,398 | 8,206 | 16,925 | 7,705 |
Gain on Disposition of Assets | 287 | |||
Net Income from Operations | (4) | 3,631 | 2,610 | 4,015 |
Interest Expense | 41 | 1,464 | ||
Net Income (Loss) | (45) | 3,631 | 1,146 | 4,015 |
Less: Net (Income) Loss Attributable to Noncontrolling Interest | 6 | (161) | ||
Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. | $ (39) | $ 3,631 | $ 985 | $ 4,015 |
Net Income (loss) Attributable to Alpine Income Property Trust, Inc. | ||||
Basic (in dollars per share) | $ 0.13 | |||
Diluted (in dollars per share) | $ 0.11 | |||
Weighted Average Number of Common Shares: | ||||
Basic (in shares) | 7,902,737 | 7,588,349 | ||
Diluted (in shares) | 9,126,591 | 8,812,203 | ||
Dividends Declared and Paid (in dollars per share) | $ 0.058 | $ 0.82 |
CONSOLIDATED AND COMBINED STA_2
CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. | $ (39) | $ 3,631 | $ 985 | $ 4,015 |
Other Comprehensive Income (Loss) | ||||
Cash Flow Hedging Derivative - Interest Rate Swap | (481) | |||
Total Other Comprehensive Loss | (481) | |||
Total Comprehensive Income (Loss) | $ (39) | $ 3,631 | $ 504 | $ 4,015 |
CONSOLIDATED AND COMBINED STA_3
CONSOLIDATED AND COMBINED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Predecessor Equity | Common Stock at Par | Additional Paid-In Capital | Dividends in Excess of Net Income | Accumulated Other Comprehensive Loss | Stockholders' Equity | Noncontrolling Interest | Total |
Balance at Dec. 31, 2017 | $ 120,380 | $ 120,380 | $ 120,380 | |||||
Increase (decrease) in shareholders' equity | ||||||||
Net Income (Loss) | 4,015 | 4,015 | 4,015 | |||||
Stock Compensation Expense from Consolidated-Tomoka Land Co. | 232 | 232 | 232 | |||||
Net Transactions with Consolidated-Tomoka Land Co. | (438) | (438) | (438) | |||||
Balance at Dec. 31, 2018 | 124,189 | 124,189 | 124,189 | |||||
Increase (decrease) in shareholders' equity | ||||||||
Net Income (Loss) | 3,631 | 3,631 | 3,631 | |||||
Stock Compensation Expense from Consolidated-Tomoka Land Co. | 509 | 509 | 509 | |||||
Net Transactions with Consolidated-Tomoka Land Co. | 19,447 | 19,447 | 19,447 | |||||
Balance at Nov. 25, 2019 | $ 147,776 | 147,776 | 147,776 | |||||
Increase (decrease) in shareholders' equity | ||||||||
Net Income (Loss) | $ (39) | (39) | $ (6) | (45) | ||||
Proceeds from Initial Public Offering | $ 75 | $ 142,425 | 142,500 | 142,500 | ||||
Proceeds from Private Placement | 4 | 7,497 | 7,501 | 7,501 | ||||
Operating Units Issued, Value | 23,253 | 23,253 | ||||||
Payment of Initial Public Offering Transaction Costs | (11,978) | (11,978) | (11,978) | |||||
Payment of Shelf Registration and ATM Transaction Costs | 11,978 | |||||||
Stock Issuance to Directors | 4 | 4 | 4 | |||||
Cash Dividend | (459) | (459) | (71) | (530) | ||||
Balance at Dec. 31, 2019 | 79 | 137,948 | (498) | 137,529 | 23,176 | 160,705 | ||
Increase (decrease) in shareholders' equity | ||||||||
Net Income (Loss) | 985 | 985 | 161 | 1,146 | ||||
Stock Repurchase | (4) | (5,010) | (5,014) | (5,014) | ||||
Payment of Shelf Registration and ATM Transaction Costs | 298 | 298 | 298 | |||||
Stock Issuance to Directors | 238 | 238 | 238 | |||||
Cash Dividend | (6,200) | (6,200) | (1,003) | (7,203) | ||||
Other Comprehensive Income (Loss) | $ (481) | (481) | (481) | |||||
Balance at Dec. 31, 2020 | $ 75 | $ 132,878 | $ (5,713) | $ (481) | $ 126,759 | $ 22,334 | $ 149,093 |
CONSOLIDATED COMBINED STATEMENT
CONSOLIDATED COMBINED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020 | |
Common Stock | ||
Cash Dividends (in dollars per share) | $ 0.058 | $ 0.82 |
CONSOLIDATED AND COMBINED STA_4
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Cash Flow from Operating Activities: | ||||
Net Income (Loss) | $ (45) | $ 3,631 | $ 1,146 | $ 4,015 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||
Depreciation and Amortization | 687 | 4,859 | 9,949 | 4,901 |
Amortization of Intangible Lease Assets and Liabilities to Lease Income | (5) | (234) | (108) | (229) |
Amortization of Deferred Loan Costs to Interest Expense | 16 | 188 | ||
Amortization of Deferred Expenses to Lease Income | 277 | 302 | ||
Gain on Disposition of Assets | (287) | |||
Non-Cash Compensation | 4 | 509 | 268 | 232 |
Decrease (Increase) in Assets: | ||||
Straight-Line Rent Adjustment | (68) | (410) | (1,524) | (451) |
COVID-19 Rent Deferrals, Net | (378) | |||
Deferred Expenses | (1) | |||
Other Assets | (787) | (500) | (830) | 41 |
Increase (Decrease) in Liabilities: | ||||
Accounts Payable, Accrued Expenses, and Other Liabilities | 1,472 | (243) | 2 | (3,158) |
Prepaid Rent and Deferred Revenue | 88 | (343) | 968 | (27) |
Net Cash Provided By Operating Activities | 1,362 | 7,546 | 9,394 | 5,625 |
Cash Flow from Investing Activities: | ||||
Acquisition of Real Estate, Including Capitalized Expenditures | (125,919) | (27,001) | (118,808) | (5,186) |
Proceeds from Disposition of Assets | 4,933 | |||
Net Cash Used In Investing Activities | (125,919) | (27,001) | (113,875) | (5,186) |
Cash Flow from Financing Activities: | ||||
Draws on Credit Facility | 115,500 | |||
Payments on Credit Facility | (8,691) | |||
Repurchase of Common Stock | (5,014) | |||
Cash Received from Initial Public Offering | 142,500 | |||
Cash Received from Private Placement | 7,501 | |||
Cash Paid for Initial Public Offering, Shelf Registration and ATM Transaction Costs | (11,978) | (298) | ||
Net Transactions with CTO Realty Growth, Inc. | 19,447 | (438) | ||
Cash Paid for Loan Fees | (594) | (261) | ||
Dividends Paid | (530) | (7,203) | ||
Net Cash Provided By (Used In) Financing Activities | 136,899 | 19,447 | 94,033 | (438) |
Net Increase (Decrease) in Cash and Cash Equivalents | 12,342 | (8) | (10,448) | 1 |
Cash and Cash Equivalents, Beginning of Period | $ 8 | 12,342 | 7 | |
Cash and Cash Equivalents, End of Period | $ 12,342 | $ 1,894 | $ 8 |
CONSOLIDATED AND COMBINED STA_5
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020 | |
Supplemental Disclosure of Cash Flow Information | ||
Cash Paid for Interest | $ 1,230 | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||
Unrealized Loss on Cash Flow Hedge | $ 481 | |
Contribution of OP Units in Exchange for Predecessor Income Properties | $ 23,253 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2020 | |
BUSINESS AND ORGANIZATION | |
BUSINESS AND ORGANIZATION | NOTE 1. BUSINESS AND ORGANIZATION BUSINESS Alpine Income Property Trust, Inc. (the “Company” or “PINE”) is a real estate company that owns and operates a high-quality portfolio of single-tenant commercial properties. The terms “us,” “we,” “our,” and “the Company” as used in this report refer to Alpine Income Property Trust, Inc. together with our consolidated subsidiaries. Our portfolio consists of 48 single-tenant, primarily net leased, retail and office properties located in 34 markets in 18 states. All of the properties in our portfolio are subject to long-term, primarily triple-net leases, which generally require the tenant to pay all of the property operating expenses such as real estate taxes, insurance, assessments and other governmental fees, utilities, repairs and maintenance and certain capital expenditures. See Note 17, “Subsequent Events”, for information related to the single-tenant income properties acquired subsequent to December 31, 2020. The Company has no employees and is externally managed by Alpine Income Property Manager, LLC, a Delaware limited liability company and a wholly owned subsidiary of CTO Realty Growth, Inc. (our “Manager”). CTO Realty Growth, Inc. (NYSE: CTO) is a Maryland corporation that is a publicly traded, diversified real estate operating company and the sole member of our Manager (“CTO”). ORGANIZATION The Company is a Maryland corporation that was formed on August 19, 2019. On November 26, 2019, the Company closed its initial public offering (“IPO”) of shares of its common stock (the “Offering”) as well as a concurrent private placement of shares of common stock to CTO. The price per share paid in the Offering and the concurrent private placement was $19.00 (the “IPO Price”). The Offering raised $142.5 million in gross proceeds from the issuance of 7,500,000 shares of our common stock. We also raised $7.5 million from the concurrent private placement to CTO from the issuance of 394,737 shares of our common stock (“CTO Private Placement”). Included in the $142.5 million Offering was CTO’s purchase of 421,053 shares of our common stock for $8.0 million, representing a cash investment by CTO of $15.5 million. A total of $125.9 million of proceeds from the Offering were utilized to acquire 15 properties in our initial portfolio from CTO. The remaining five properties in our initial portfolio were contributed by CTO in exchange for 1,223,854 units of the operating partnership (the “OP Units”) for a value of $23.3 million based on the IPO Price. The Company incurred a total of $12.0 million of transaction costs, which included underwriting fees of $9.4 million. Upon completion of the Offering, the concurrent CTO Private Placement, and the other transactions executed at the time of our listing on the New York Stock Exchange (the “NYSE”) under the symbol “PINE” (collectively defined as the “Formation Transactions”), CTO owned 22.3% of our outstanding common stock (assuming the OP Units issued to CTO in the Formation Transactions are exchanged for shares of our common stock on a one-for-one basis). We conduct the substantial majority of our operations through Alpine Income Property OP, LP (the “Operating Partnership”). Our wholly owned subsidiary, Alpine Income Property GP, LLC (“PINE GP”), is the sole general partner of the Operating Partnership. Substantially all of our assets are held by, and our operations are conducted through, the Operating Partnership. As of December 31, 2020, we have a total ownership interest in the Operating Partnership of 85.9%, with CTO holding, directly and indirectly, a 14.1% ownership interest in the Operating Partnership. Our interest in the Operating Partnership generally entitles us to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to our percentage ownership. We, through PINE GP, generally have the exclusive power under the partnership agreement to manage and conduct the business and affairs of the Operating Partnership, subject to certain approval and voting rights of the limited partners. The Board manages our business and affairs. The Company has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) commencing with its short taxable year beginning on November 26, 2019 and ending on December 31, 2019. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company’s annual REIT taxable income, without regard to the dividends paid deduction or net capital gain, to its stockholders (which is computed and which does not necessarily equal net income as calculated in accordance with generally accepted accounting principles). As a REIT, the Company is generally not subject to U.S. federal corporate income tax to the extent of its distributions to stockholders. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal income tax on its taxable income at regular corporate rates and generally will not be permitted to qualify for treatment as a REIT for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Even if the Company qualifies for taxation as a REIT, the Company may be subject to state and local taxes on its income and property and federal income and excise taxes on its undistributed income. COVID-19 PANDEMIC In March 2020, the World Health Organization declared the outbreak of the novel coronavirus as a pandemic (the “COVID-19 Pandemic”), which has spread throughout the United States. The spread of the COVID-19 Pandemic has continued to cause significant volatility in the U.S. and international markets, and in many industries, business activity has experienced periods of almost complete shutdown. There continues to be uncertainty around the duration and severity of business disruptions related to the COVID-19 Pandemic, as well as its impact on the U.S. economy and international economies. See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the Company’s disclosure related to the potential cash flow impact as well as Note 3, “Summary of Significant Accounting Policies” for the accounting treatment of lease modifications associated with tenant rent relief requests due to the COVID-19 Pandemic. |
BASIS OF PRESENTATION AND PRINC
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | 12 Months Ended |
Dec. 31, 2020 | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | NOTE 2. BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION BASIS OF PRESENTATION For the periods prior to November 26, 2019, the accompanying combined financial statements of Alpine Income Property Trust Predecessor (the “Predecessor”) do not represent the financial position and results of operations of one legal entity, but rather a combination of entities under common control that have been “carved out” from CTO’s consolidated financial statements. Historically, financial statements of the Predecessor have not been prepared as it has not operated separately from CTO. These combined financial statements reflect the revenues and expenses of the Predecessor and include certain material assets and liabilities of CTO that are specifically identifiable and generated through, or associated with, an in-place net lease, which have been reflected at CTO’s historical basis. For periods subsequent to November 26, 2019, the accompanying consolidated financial statements represent the consolidated statements of Alpine Income Property Trust, Inc. together with our consolidated subsidiaries. As a result of the Company’s acquisitions of the initial portfolio from CTO, the consolidated financial statements subsequent to November 26, 2019 are presented on a new basis of accounting pursuant to Accounting Standards Codification (“ASC”) 805‑10, Business Combinations . The preparation of these consolidated and combined financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The combined financial statements for the periods prior to November 26, 2019 include an allocation of general and administrative expenses to the Predecessor from CTO. In addition, general and administrative expenses include an allocation of the costs of certain CTO corporate functions, including executive oversight, treasury, finance, human resources, tax compliance and planning, internal audit, financial reporting, information technology and investor relations. General and administrative expenses (including stock-based compensation) represent a pro rata allocation of costs from CTO based on the revenues of the Predecessor as a percentage of CTO’s total revenue. The Company believes the allocation methodology for general and administrative expenses is reasonable. However, the allocated general and administrative expense presented in our combined statements of operations for historical periods does not necessarily reflect what our general and administrative expenses will be as a stand-alone public company for future reporting periods. Additionally, most of the Predecessor entities included in CTO’s financial statements did not have separately established bank accounts for the periods presented, and most cash transactions were historically transacted through bank accounts owned by CTO. The combined statements of cash flows for the periods presented were prepared as if operating, investing, and financing transactions had been transacted through separate bank accounts of the Predecessor. The combined financial statements include, on a carve-out basis, the historical balance sheets and statements of operations and cash flows attributed to the Company. PRINCIPLES OF CONSOLIDATION For periods subsequent to November 26, 2019, the consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and other entities in which we have a controlling interest. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. For periods prior to November 26, 2019, the combined financial statements include, on a carve-out basis, the historical balance sheets and statements of operations and cash flows of the Predecessor. SEGMENT REPORTING ASC Topic 280, Segment Reporting, establishes standards related to the manner in which enterprises report operating segment information. The Company is primarily in the business of acquiring and managing retail real estate which is considered to be one reporting segment. The Company has no other reportable segments. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of allocating and evaluating financial performance. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period presented. Actual results could differ from those estimates. Among other factors, fluctuating market conditions that can exist in the national real estate markets and the volatility and uncertainty in the financial and credit markets make it possible that the estimates and assumptions, most notably those related to PINE’s investment in income properties, could change materially due to continued volatility in the real estate and financial markets, or as a result of a significant dislocation in those markets. REAL ESTATE The Company’s real estate assets are primarily comprised of the income properties in its portfolio, and are stated at cost, less accumulated depreciation and amortization. Such income properties are depreciated on a straight-line basis over their estimated useful lives. Renewals and betterments are capitalized to the applicable income property accounts. The cost of maintenance and repairs is expensed as incurred. The cost of property retired or otherwise disposed of, and the related accumulated depreciation or amortization, are removed from the accounts, and any resulting gain or loss is recorded in the statement of operations. The amount of depreciation of real estate, exclusive of amortization related to intangible assets, recognized for the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018, was $6.2 million, $0.4 million, $3.2 million, and $3.2 million, respectively. LONG-LIVED ASSETS The Company follows Financial Accounting Standards Board (“FASB”) ASC Topic 360‑10, Property, Plant, and Equipment in conducting its impairment analyses. The Company reviews the recoverability of long-lived assets, primarily real estate, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Examples of situations considered to be triggering events include: a substantial decline in operating cash flows during the period, a current or projected loss from operations, an income property not fully leased or leased at rates that are less than current market rates, and any other quantitative or qualitative events deemed significant by management. Long-lived assets are evaluated for impairment by using an undiscounted cash flow approach, which considers future estimated capital expenditures. Impairment of long-lived assets is measured at fair value less cost to sell. PURCHASE ACCOUNTING FOR ACQUISITIONS OF REAL ESTATE SUBJECT TO A LEASE Investments in real estate are carried at cost less accumulated depreciation and impairment losses, if any. The cost of investments in real estate reflects their purchase price or development cost. We evaluate each acquisition transaction to determine whether the acquired asset meets the definition of a business. Under Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , an acquisition does not qualify as a business when there is no substantive process acquired or substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. Transaction costs related to acquisitions that are asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset. Costs of repairs and maintenance are expensed as incurred. In accordance with FASB guidance, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the management believes that it is likely that the tenant will renew the lease upon expiration, in which case both the Company and the Predecessor amortize the value attributable to the renewal over the renewal period. The value of in-place leases and leasing costs are amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off . INCOME PROPERTY LEASE REVENUE The rental arrangements associated with the Company’s income property portfolio are classified as operating leases. The Company recognizes lease income on these properties on a straight-line basis over the term of the lease. Accordingly, contractual lease payment increases are recognized evenly over the term of the lease. The periodic difference between lease income recognized under this method and contractual lease payment terms (i.e., straight-line rent) is recorded as a deferred operating lease receivable and is included in straight-line rent adjustment on the accompanying consolidated balance sheets. The Company’s leases provide for reimbursement from tenants for variable lease payments including common area maintenance, insurance, real estate taxes and other operating expenses. A portion of our variable lease payment revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. The collectability of tenant receivables and straight-line rent adjustments is determined based on, among other things, the aging of the tenant receivable, management’s evaluation of credit risk associated with the tenant and industry of the tenant, and a review of specifically identified accounts using judgment. As of December 31, 2020, the Company recorded an allowance for doubtful accounts of $0.1 million. As of December 31, 2019, and 2018, no allowance for doubtful accounts was required. SALES TAX Sales tax collected on lease payments is recognized as a liability in the accompanying consolidated balance sheets when collected. The liability is reduced at the time payment is remitted to the applicable taxing authority. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, bank demand accounts, and money market accounts having original maturities of 90 days or less. The Company’s bank balances as of December 31, 2020 and 2019 include certain amounts over the Federal Deposit Insurance Corporation limits. The carrying value of cash and cash equivalents is reported at Level 1 in the fair value hierarchy, which represents valuation based upon quoted prices in active markets for identical assets or liabilities. DEFERRED EXPENSES As of December 31, 2020, the Company’s long-term debt includes deferred financing costs associated with the Company’s Credit Facility . These costs are amortized on a straight-line basis over the term of the Credit Facility and are included in interest expense in the Company’s accompanying consolidated and combined statements of operations. As of December 31, 2019, these costs are reflected as deferred expenses on the accompanying consolidated balance sheet as there was no outstanding debt as of December 31, 2019. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY Effective April 30, 2020, in conjunction with the variable-rate Credit Facility (hereinafter defined in Note 9, “Long-Term Debt”), the Company entered into an Interest Rate Swap to fix the interest rate on $50.0 million of the outstanding Credit Facility balance (the “Interest Rate Swap”). The Company accounts for its cash flow hedging derivative in accordance with FASB ASC Topic 815-20, Derivatives and Hedging . Depending upon the Interest Rate Swap’s value at each balance sheet date, the derivative is included in either other assets or accounts payable, accrued expenses, and other liabilities on the consolidated balance sheet at its fair value. On the date the Interest Rate Swap was entered into, the Company designated the derivative as a hedge of the variability of cash flows to be paid related to the recognized long-term debt liabilities. The Company formally documented the relationship between the hedging instrument and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. At the Interest Rate Swap’s inception, the Company formally assessed whether the derivative that is used in hedging the transaction is highly effective in offsetting changes in cash flows of the hedged item, and we will continue to do so on an ongoing basis. As the terms of the Interest Rate Swap and the associated debt are identical, the hedging instrument qualifies for the shortcut method, therefore, it is assumed that there is no hedge ineffectiveness throughout the entire term of the hedging instrument. Changes in fair value of the hedging instrument that are highly effective and designated and qualified as cash-flow hedge are recorded in other comprehensive income and loss until earnings are affected by the variability in cash flows of the designated hedged item. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other liabilities at December 31, 2020 and December 31, 2019, approximate fair value because of the short maturity of these instruments. The carrying value of the Credit Facility approximates current market rates for revolving credit arrangements with similar risks and maturities. FAIR VALUE MEASUREMENTS The Company’s estimates of fair value of financial and non-financial assets and liabilities is based on the framework established by GAAP. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. GAAP describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels: · Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities. · Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques. EARNINGS PER COMMON SHARE Basic earnings per common share is computed by dividing net income attributable to the Company for the period by the weighted average number of shares outstanding for the period. Diluted earnings per common share is based on the assumption that the OP Units issued to CTO in the Formation Transactions are exchanged for shares of our common stock on a one-for-one basis. INCOME TAXES The Company has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code commencing with its short taxable year beginning on November 26, 2019 and ending on December 31, 2019. The Company believes that, commencing with such short taxable year, it has been organized and has operated in such a manner as to qualify for taxation as a REIT under the U.S. federal income tax laws. The Company intends to continue to operate in such a manner. As a REIT, the Company will be subject to U.S. federal and state income taxation at corporate rates on its net taxable income; the Company, however, may claim a deduction for the amount of dividends paid to its stockholders. Amounts distributed as dividends by the Company will be subject to taxation at the stockholder level only. While the Company must distribute at least 90% of its REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain, to qualify as a REIT, the Company intends to distribute all of its net taxable income. The Company is allowed certain other non-cash deductions or adjustments, such as depreciation expense, when computing its REIT taxable income and distribution requirement. These deductions permit the Company to reduce its dividend payout requirement under U.S. federal income tax laws. Certain states may impose minimum franchise taxes. The Company may form one or more taxable REIT subsidiaries (“TRSs”), which will be subject to applicable U.S. federal, state and local corporate income tax on their taxable income. For the periods presented, the Company did not have any TRSs that would be subject to taxation. STOCK-BASED COMPENSATION The Company adopted the Individual Equity Incentive Plan (the “Individual Plan”) and the Manager Equity Incentive Plan (the “Manager Plan”), which are collectively referred to herein as the Equity Incentive Plans. The purpose of the Equity Incentive Plans is to provide equity incentive opportunities to members of the Manager’s management team and employees who perform services for the Company, the Company’s independent directors, advisers, consultants and other personnel, either individually or via grants of incentive equity to the Manager. As of December 31, 2020, the Company has issued restricted shares of common stock pursuant to the Equity Incentive Plan. The Company’s determination of the grant date fair value of the three-year vest restricted stock awards was calculated by multiplying the number of shares issued by the Company’s stock price at the grant date. Compensation cost is recognized on a straight-line basis over the vesting period and is included in general and administrative expenses in the Company’s consolidated and combined statements of operations. Award forfeitures are accounted for in the period in which they occur. CONCENTRATION OF CREDIT RISK Certain of the tenants in the portfolio of 48 single-tenant properties accounted for more than 10% of total revenues during the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018. During the year ended December 31, 2020, the properties leased to Wells Fargo Bank and Hilton Grand Vacations represented 19% and 12% of total revenues, respectively. During the period from November 26, 2019 to December 31, 2019 and the Predecessor period from January 1, 2019 to November 25, 2019, the properties leased to Wells Fargo Bank and Hilton Grand Vacations represented 26% and 17% of total revenues, respectively. During the Predecessor year ended December 31, 2018, the properties leased to Wells Fargo Bank and Hilton Grand Vacations represented 31% and 18% of total revenues, respectively. As of December 31, 2020 and 2019, 13% and 24%, respectively, of the Company’s real estate portfolio, based on square footage, was located in the State of Oregon. As of December 31, 2020 and 2019, 17% and 29%, respectively, of the Company’s real estate portfolio, based on square footage, was located in the State of Florida. Additionally, as of December 31, 2020, individually more than 10% of the Company’s real estate portfolio, based on square footage, was located in the States of North Carolina and Michigan. As of December 31, 2019, more than 10% of the Company’s real estate portfolio, based on square footage, was located in the states of Georgia and North Carolina. Uncertainty of the duration of a prolonged real estate and economic downturn could have an adverse impact on the Company’s real estate values. RECENTLY ISSUED ACCOUNTING STANDARDS Cessation of LIBOR . In January 2021, the FASB issued ASU 2021-01 which is in response to concerns about structural risks of interbank offered rates (“IBORs”), and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators in numerous jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The amendments in ASU 2021-01 are effective immediately and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The Company believes it’s Interest Rate Swap (hereinafter defined) meets the scope of Topic 848-10-15-3A and therefore, Company will be able to continue to apply a perfectly effective assessment method by electing the corresponding optional expedient for subsequent assessments. Lease Modifications. In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of the COVID-19 Pandemic. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and, instead, treat the concession as if it was a part of the existing contract. This guidance is only applicable to lease concessions related to the COVID-19 Pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. As of and for the year ended December 31, 2020, the Company elected to not apply lease modification accounting with respect to rent deferrals as the concessions were related to COVID-19 and there was not a substantial increase in the lessor’s rights under the lease agreement. Accordingly, for leases in which deferred rent agreements were reached, the Company has continued to account for the lease by recognizing the normal straight-line rental income and as the deferred rents are repaid by the tenant, the straight-line receivable will be reduced. The portion of the straight-line adjustment related to COVID-19 concessions has been reflected separately in the Company’s statement of cash flows for the year ended December 31, 2020. With respect to rent abatement agreements, lease modification accounting applies as an extended term was a part of such agreements, accordingly the Company re-calculated straight-line rental income for such leases to recognize over the new lease term. ASC Topic 842, Leases. In February 2016, the FASB issued ASU 2016-02, which requires entities to recognize assets and liabilities that arise from financing and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows pursuant to FASB ASC Topic 842, Leases . The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. During the Company’s and Predecessor’s evaluation of FASB ASC Topic 842, Leases , the following practical expedients and accounting policies with respect to ASC 842 were elected and/or adopted effective January 1, 2019: · The Company, as lessor, will not reassess (i) whether any expired or existing contracts are or contain leases (ii) lease classification for any expired or existing leases or (iii) initial direct costs for any expired or existing leases. · The Company, as lessor, will not separate nonlease components from lease components and, instead, will account for each separate lease component and the nonlease components associated with that lease as a single component if the nonlease components otherwise would be accounted for under ASC Topic 606, Revenue from Contracts with Customers . The primary reason for this election is related to instances where common area maintenance is, or may be, a component of base rent within a lease agreement. |
INCOME PROPERTY PORTFOLIO
INCOME PROPERTY PORTFOLIO | 12 Months Ended |
Dec. 31, 2020 | |
INCOME PROPERTY PORTFOLIO | |
INCOME PROPERTY PORTFOLIO | NOTE 4. INCOME PROPERTY PORTFOLIO As of December 31, 2020, the Company’s income property portfolio consisted of 48 single-tenant properties with 1.6 million total square feet. See Note 17, “Subsequent Events”, for information related to the single-tenant income properties acquired subsequent to December 31, 2020. Leasing revenue consists of long-term rental revenue from retail and office income properties, which is recognized as earned, using the straight-line method over the life of each lease. The components of lease income are as follows (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Lease Income Lease Payments $ 17,746 $ 1,294 $ 10,810 $ 10,779 Variable Lease Payments 1,502 100 1,027 941 Total Lease Income $ 19,248 $ 1,394 $ 11,837 $ 11,720 Minimum Future Rental Receipts. Minimum future rental receipts under non-cancelable operating leases, excluding percentage rent and other lease payments that are not fixed and determinable, having remaining terms in excess of one year as of December 31, 2020, are summarized as follows (in thousands): Year Ending December 31, Amounts 2021 $ 20,974 2022 20,675 2023 20,825 2024 20,351 2025 19,824 2026 and thereafter (cumulative) 74,894 Total $ 177,543 See Note 3, “Summary of Significant Accounting Policies” for the accounting treatment of potential lease modifications associated with tenant rent relief requests due to the COVID-19 Pandemic and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the amount of such rent relief. 2020 Activity. During the year ended December 31, 2020, the Company acquired 29 single-tenant income properties for a purchase price of $116.6 million, or an acquisition cost of $117.7 million including capitalized acquisition costs. The acquisitions made during the year ended December 31, 2020 were accounted for as asset acquisitions. Of the total acquisition cost, $30.3 million was allocated to land, $70.0 million was allocated to buildings and improvements, $19.1 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees, and above market lease value, and $1.7 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was 10.1 years at acquisition. The single-tenant net lease income properties acquired during the year ended December 31, 2020 are described below: Tenant Description Property Location Date of Acquisition Property Square-Feet Purchase Price ($000's) Remaining Lease Term at Acquisition Date (in years) 7-Eleven Austin, TX 1/13/2020 $ 7-Eleven Georgetown, TX 1/13/2020 Conn's HomePlus Hurst, TX 1/10/2020 Lehigh Gas Wholesale Services, Inc. Highland Heights, KY 2/03/2020 American Multi-Cinema, Inc. Tyngsborough, MA 2/19/2020 Hobby Lobby Tulsa, OK 2/28/2020 Long John Silver's Tulsa, OK 2/28/2020 N/A Old Time Pottery Orange Park, FL 2/28/2020 Freddy's Frozen Custard Orange Park, FL 2/28/2020 Hobby Lobby Arden, NC 6/24/2020 Walmart Howell, MI 6/30/2020 Advanced Auto Parts Severn, MD 9/14/2020 Dollar General Heuvelton, NY 9/14/2020 Dollar General Winthrop, NY 9/14/2020 Dollar General Salem, NY 9/14/2020 Dollar General Harrisville, NY 9/14/2020 Dollar General Newtonsville, OH 9/14/2020 Dollar General Hammond, NY 9/14/2020 Dollar General Barker, NY 9/14/2020 Dollar General Chazy, NY 9/14/2020 Dollar General Milford, ME 9/21/2020 Dollar General Limestone, ME 9/21/2020 Dollar General Bingham, ME 9/21/2020 Dollar General Willis, TX 9/23/2020 Dollar General Somerville, TX 9/23/2020 Dollar General Odessa, TX 9/30/2020 Dollar General Kermit, TX 11/9/2020 Kohl's Glendale, AZ 12/11/2020 Walgreens Tacoma, WA 12/18/2020 Total / Weighted Average $ On September 25, 2020, the Company sold its single-tenant income property, classified as held for sale as of June 30, 2020, leased to Outback Steakhouse located in Charlottesville, Virginia, for total disposition volume of $5.1 million, reflecting an exit cap rate of 5.8%. The Company’s gain on the sale was $0.3 million, or $0.03 per diluted share. Period from November 26, 2019 to December 31, 2019 Activity. On November 26, 2019, the Company closed its initial public offering. The Company used $125.9 million of the net proceeds from the Offering to acquire 15 of the 20 properties in the Company’s initial portfolio from CTO, or the Predecessor. The remaining five properties in the Company’s initial portfolio were contributed by CTO in exchange for 1,223,854 OP Units of the Operating Partnership for a value of $23.3 million based on the public offering price of $19.00 per share. The Company accounted for the 20‑property initial portfolio acquisition as a business combination and recorded the assets and liabilities acquired at their fair value in accordance with the provisions of ASC 805‑10, Business Combinations . No income properties were disposed of during the period from November 26, 2019 to December 31, 2019. In connection with the accounting of the 20-property initial portfolio acquisition as a business combination, the purchase consideration was calculated as follows: November 26, 2019 Total OP Units Issued (number of units) 1,223,854 Company's IPO Price per Share $ 19.00 Total OP Unit Consideration Paid for Initial Portfolio $ 23,253,230 Total Cash Consideration Paid for Initial Portfolio 125,918,773 Total Purchase Consideration Paid for Initial Portfolio $ 149,172,003 The Company utilized valuations by a third party valuation specialist as the basis for determining the allocation of the determined fair value of the asset group to the individual tangible and intangible assets and liabilities. The fair value of the total purchase consideration was allocated as follows: November 26, 2019 Land, at cost $ 54,386,511 Building and Improvements, at cost 74,070,181 Intangible Lease Assets 22,648,727 Intangible Lease Liabilities (1,933,416) Estimated Fair Value of Net Assets Acquired $ 149,172,003 The following presents the unaudited pro forma consolidated financial information of the Company as if the acquisition of the Initial Portfolio was completed on January 1, 2018. The unaudited pro forma financial information includes adjustments for (i) depreciation on acquired building and improvements of approximately $4.3 million for the pro forma years ended 2019 and 2018; (ii) amortization of intangible lease assets and intangible lease liabilities recorded at the date of the transactions of approximately $2.7 million for the pro forma years ended 2019 and 2018; and (iii) the elimination of acquisition related costs of approximately $216,000. This information is presented for informational purposes only and does not purport to be indicative of the results of future operations or the results that would have occurred had the transaction taken place on January 1, 2018: For the Years Ended December 31, 2019 2018 Unaudited Pro Forma Total Revenues $ 13,963,945 $ 14,023,566 Unaudited Pro Forma Net Income Attributable to Alpine Income Property Trust, Inc. 759,512 723,274 Unaudited Pro Forma Basic Net Income per Share 0.10 0.09 Unaudited Pro Forma Diluted Net Income per Share 0.08 0.08 Unaudited Pro Forma Funds from Operations 7,825,645 7,789,407 Unaudited Pro Form Adjusted Funds from Operations 7,437,723 7,345,549 Period from January 1, 2019 to November 25, 2019 Predecessor Activity. During the period from January 1, 2019 to November 25, 2019, Predecessor acquired five single-tenant net lease income properties for an aggregate purchase price of $26.8 million, or an aggregate acquisition cost of $27.0 million including capitalized acquisition costs. The acquisitions made during the period from January 1, 2019 to November 25, 2019 were accounted for as asset acquisitions. Of the total acquisition cost, $10.0 million was allocated to land, $13.8 million was allocated to buildings and improvements, $3.6 million was allocated to intangible assets pertaining to the in-place lease value, leasing costs, and above market lease value, and $0.4 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was 10.6 years at acquisition. No income properties were disposed of during the period from January 1, 2019 to November 25, 2019. 2018 Predecessor Activity. During the year ended December 31, 2018, the Predecessor acquired two single-tenant net lease properties, for an aggregate acquisition cost of $5.1 million, including capitalized acquisition costs. The acquisitions made during the year ended December 31, 2018 were accounted for as asset acquisitions. Of the total acquisition cost, $4.7 million was allocated to land, $0.6 million was allocated to intangible assets pertaining to the in-place lease value, leasing costs and above market lease value, and $0.2 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was 18.6 years at acquisition. No income properties were disposed of during the year ended December 31, 2018. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 5. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying value and estimated fair value of the Company’s financial instruments at December 31, 2020 and December 31, 2019 (in thousands): December 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Cash and Cash Equivalents - Level 1 $ 1,894 $ 1,894 $ 12,342 $ 12,342 Long-Term Debt - Level 2 $ 106,159 $ 106,159 $ — $ — The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The following table presents the fair value of assets measured on a recurring basis by Level as of December 31, 2020, 2020. There were no assets or liabilities measured on a recurring basis by Level as of December 31, 2019 (in thousands). Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs 12/31/2020 Assets (Level 1) (Level 2) (Level 3) Interest Rate Swap $ (481) $ — $ (481) $ — |
INTANGIBLE ASSETS AND LIABILITI
INTANGIBLE ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS AND LIABILITIES | |
INTANGIBLE ASSETS AND LIABILITIES | NOTE 6. INTANGIBLE ASSETS AND LIABILITIES Intangible assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values. Intangible assets and liabilities consisted of the following as of December 31, 2020 and 2019 (in thousands): As of December 31, 2020 December 31, 2019 Intangible Lease Assets: Value of In-Place Leases $ 27,494 $ 14,479 Value of Above Market In-Place Leases 2,187 1,626 Value of Intangible Leasing Costs 11,459 6,544 Sub-total Intangible Lease Assets 41,140 22,649 Accumulated Amortization (4,259) (291) Sub-total Intangible Lease Assets—Net 36,881 22,358 Intangible Lease Liabilities: Value of Below Market In-Place Leases (3,674) (1,933) Sub-total Intangible Lease Liabilities (3,674) (1,933) Accumulated Amortization 375 25 Sub-total Intangible Lease Liabilities—Net (3,299) (1,908) Total Intangible Assets and Liabilities—Net $ 33,582 $ 20,450 The balances as of December 31, 2019 represent the Predecessor’s historical allocation of fair value of the 20 properties, representing the initial portfolio, of which values were adjusted based their fair values as determined on November 26, 2019, the acquisition date, in accordance with the provisions of ASC 805‑10, Business Combinations . The following table reflects the net amortization of intangible assets and liabilities during the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018 (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Depreciation and Amortization Expense $ 3,758 $ 271 $ 1,548 $ 1,544 Increase to Income Properties Revenue (108) (5) (234) (229) Net Amortization of Intangible Assets and Liabilities $ 3,650 $ 266 $ 1,314 $ 1,315 The estimated future amortization expense (income) related to net intangible assets and liabilities is as follows (in thousands): Year Ending December 31, Future Amortization Expense Future Accretion to Income Property Revenue Net Future Amortization of Intangible Assets and Liabilities 2021 $ 4,695 $ (162) $ 4,533 2022 4,695 (162) 4,533 2023 4,694 (162) 4,532 2024 4,467 (151) 4,316 2025 4,224 (150) 4,074 2026 and thereafter 12,175 (581) 11,594 Total $ 34,950 $ (1,368) $ 33,582 As of December 31, 2020, the weighted average amortization period of both the total intangible assets and liabilities was 9.1 years. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
OTHER ASSETS | |
OTHER ASSETS | NOTE 7. OTHER ASSETS Other assets consisted of the following (in thousands): As of December 31, 2020 December 31, 2019 Tenant Receivables—Net (1) $ 67 $ — Accrued Unbilled Tenant Receivables 216 — Prepaid Insurance 606 499 Deposits on Acquisitions 100 200 Prepaid and Deposits - Other 442 89 Total Other Assets $ 1,431 $ 788 (1) As of December 31, 2020, includes $0.1 million allowance for doubtful accounts. |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | NOTE 8. ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands): As of December 31, 2020 December 31, 2019 Accounts Payable $ 450 $ 463 Accrued Expenses 474 — Due to CTO (1) 579 381 Accrual for Tenant Improvement — 628 Interest Rate Swap 481 — Total Accounts Payable, Accrued Expenses, and Other Liabilities $ 1,984 $ 1,472 (1) As of December 31, 2019, includes less than $0.1 million dividends declared and payable of $0.058 per share on the 1,223,854 OP Units due to CTO. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | NOTE 9. LONG-TERM DEBT As of December 31, 2020, the Company’s outstanding indebtedness, at face value, was as follows (in thousands): Face Value Debt Stated Interest Rate Maturity Date Credit Facility $ 106,809 30-Day LIBOR + (1) November 2023 Total Debt/Weighted-Average Rate $ 106,809 1.71% (1) Effective April 30, 2020, the Company utilized an Interest Rate Swap to achieve a fixed interest rate of 0.48% plus the applicable spread on $50.0 million of the outstanding balance on the Credit Facility. Credit Facility. On November 26, 2019, the Company and the Operating Partnership entered into a credit agreement (the “Credit Agreement”) with a group of lenders for a senior unsecured revolving credit facility (the “Credit Facility”) in the maximum aggregate initial original principal amount of up to $100.0 million and includes an accordion feature that may allow the Operating Partnership to increase the availability under the Credit Facility by an additional $50.0 million, subject to meeting specified requirements and obtaining additional commitments from lenders. BMO Capital Markets Corp. and Raymond James Bank, N.A. are joint lead arrangers and joint bookrunners, with Bank of Montreal (“BMO”) as administrative agent. The Credit Facility has a base term of four years, with the ability to extend the base term for one year. On October 16, 2020, the Company executed the second amendment to the Credit Facility (the “Second Amendment”), with the addition of two lenders, Huntington National Bank and Truist Bank. As a result of the Second Amendment, the Credit Facility has a total borrowing capacity of $150.0 million with the ability to increase that capacity up to $200.0 million during the term, utilizing an accordion feature, subject to lender approval. Pursuant to the Credit Agreement, the indebtedness outstanding under the Credit Facility accrues at a rate ranging from the 30-day LIBOR plus 135 basis points to the 30-day LIBOR plus 195 basis points, based on the total balance outstanding under the Credit Facility as a percentage of the total asset value of the Operating Partnership, as defined in the Credit Agreement. The Credit Facility also accrues a fee of 15 to 25 basis points for any unused portion of the borrowing capacity based on whether the unused portion is greater or less than 50% of the total borrowing capacity. The Operating Partnership is subject to customary restrictive covenants under the Credit Facility, including, but not limited to, limitations on the Operating Partnership’s ability to: (a) incur indebtedness; (b) make certain investments; (c) incur certain liens; (d) engage in certain affiliate transactions; and (e) engage in certain major transactions such as mergers. The Credit Facility also contains financial covenants covering the Operating Partnership, including but not limited to, tangible net worth and fixed charge coverage ratios. In addition, the Operating Partnership is subject to additional financial maintenance covenants as described in the Credit Agreement. On June 30, 2020, the Company and the Operating Partnership entered into the first amendment to the Credit Agreement with the lenders whereby the tangible net worth covenant was adjusted to be more reflective of market terms. At December 31, 2020, the current commitment level under the Credit Facility was $150.0 million and the Company had an outstanding balance of $106.8 million. Long-term debt as of December 31, 2020 and December 31, 2019 consisted of the following (in thousands): December 31, 2020 December 31, 2019 Total Due Within One Year Total Due Within One Year Credit Facility $ 106,809 $ — $ — $ — Loan Costs, net of accumulated amortization (650) — — — Total Long-Term Debt $ 106,159 $ — $ — $ — Payments applicable to reduction of principal amounts as of December 31, 2020 will be required as follows (in thousands): Year Ending December 31, Amount 2021 $ — 2022 — 2023 106,809 2024 — 2025 — 2026 and thereafter — Total Long-Term Debt - Face Value $ 106,809 As of December 31, 2020, the Company’s long-term debt includes deferred financing costs of $0.9 million, net of accumulated amortization, of $0.2 million. These costs are amortized on a straight-line basis over the term of the Credit Facility and are included in interest expense in the Company’s accompanying consolidated and combined statements of operations. As of December 31, 2019, these costs were reflected as deferred expenses on the accompanying consolidated balance sheets as there was no outstanding debt as of December 31, 2019. The following table reflects a summary of interest expense incurred and paid during the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018 (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Interest Expense $ 1,276 $ 25 $ — $ — Amortization of Loan Costs 188 16 — — Total Interest Expense $ 1,464 $ 41 $ — $ — Total Interest Paid $ 1,230 $ — $ — $ — The Company was in compliance with all of its debt covenants as of December 31, 2020. |
INTEREST RATE SWAP
INTEREST RATE SWAP | 12 Months Ended |
Dec. 31, 2020 | |
INTEREST RATE SWAP | |
INTEREST RATE SWAP | NOTE 10. INTEREST RATE SWAP During April 2020, the Company entered into an Interest Rate Swap agreement to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR for $50.0 million of the outstanding balance on the Credit Facility as discussed in Note 9, “Long-Term Debt.” During the year ended December 31, 2020, the Interest Rate Swap agreement was 100% effective. Accordingly, the change in fair value on the Interest Rate Swap has been included in accumulated other comprehensive loss. As of December 31, 2020, the fair value of our Interest Rate Swap agreement, which was a loss of $0.5 million, was included in accounts payable, accrued expenses, and other liabilities on the consolidated balance sheets. The Interest Rate Swap was effective on April 30, 2020 and matures on November 26, 2024. The Interest Rate Swap fixed the variable rate debt on the notional amount of related debt of $50.0 million to a fixed rate of 0.48% plus the applicable spread. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
EQUITY | |
EQUITY | NOTE 11. EQUITY SHELF REGISTRATION On December 1, 2020, the Company filed a shelf registration statement on Form S-3, relating to the registration and potential issuance of its common stock, preferred stock, warrants, rights, and units with a maximum aggregate offering price of up to $350.0 million. The Securities and Exchange Commission declared the Form S-3 effective on December 11, 2020. ATM PROGRAM On December 14, 2020, the Company implemented a $100.0 million at-the-market (“ATM”) offering program (the “2020 ATM Program”) pursuant to which the Company may sell, from time to time, shares of the Company’s common stock at its current trading prices. As of December 31, 2020, the Company had not sold any shares under the 2020 ATM Program. DIVIDENDS The Company has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code commencing with its short taxable year beginning on November 26, 2019 and ending on December 31, 2019. To qualify as a REIT, the Company must annually distribute, at a minimum, an amount equal to 90% of its taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, and must distribute 100% of its taxable income (including net capital gains) to eliminate corporate federal income taxes payable by the Company. Because taxable income differs from cash flow from operations due to non-cash revenues and expenses (such as depreciation and other items), in certain circumstances, the Company may generate operating cash flow in excess of its dividends, or alternatively, may need to make dividend payments in excess of operating cash flows. During the year ended December 31, 2020, the Company declared and paid cash dividends on its common stock and OP Units of $0.82 per share. See Note 17, “Subsequent Events” for disclosure related to the first quarter 2021 dividend. PREDECESSOR EQUITY The Predecessor equity represents net contributions from and distributions to CTO. |
COMMON STOCK AND EARNINGS PER S
COMMON STOCK AND EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
COMMON STOCK AND EARNINGS PER SHARE | |
COMMON STOCK AND EARNINGS PER SHARE | NOTE 12. COMMON STOCK AND EARNINGS PER SHARE Basic earnings per common share are computed by dividing net income attributable to the Company by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are determined based on the assumption of the conversion of OP Units on a one-for-one basis using the treasury stock method at average market prices for the periods. The following is a reconciliation of basic and diluted earnings per common share (in thousands, except share and per share data): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Net Income Attributable to Alpine Income Property Trust, Inc. $ 985 $ (39) $ 3,631 $ 4,015 Weighted Average Number of Common Shares Outstanding 7,588,349 7,902,737 N/A N/A Common Shares Applicable to OP Units using Treasury Stock Method (1) 1,223,854 1,223,854 N/A N/A Total Shares Applicable to Diluted Earnings per Share 8,812,203 9,126,591 N/A N/A Per Common Share Data: Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. Basic $ 0.13 $ — N/A N/A Diluted $ 0.11 $ — N/A N/A (1) Represents OP Units owned by CTO Realty Growth, Inc. issued in connection with our Formation Transactions. |
SHARE REPURCHASES
SHARE REPURCHASES | 12 Months Ended |
Dec. 31, 2020 | |
SHARE REPURCHASES | |
SHARE REPURCHASES | NOTE 13. SHARE REPURCHASES In March 2020, the Board approved a $5.0 million stock repurchase program (the “$5.0 Million Repurchase Program”). During the first half of 2020, the Company repurchased 456,237 shares of its common stock on the open market for a total cost of $5.0 million, or an average price per share of $11.02 which completed the $5.0 Million Repurchase Program. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 14. STOCK-BASED COMPENSATION In connection with the closing of the IPO, on November 26, 2019, the Company granted restricted shares of common stock to each of the non-employee directors under the Individual Plan. Each of the non-employee directors received an award of 2,000 restricted shares of common stock on November 26, 2019. The restricted shares will vest in substantially equal installments on each of the first, second and third anniversaries of the grant date. As of December 31, 2020, the first increment of this award had vested, leaving 5,336 shares outstanding. In addition, the restricted shares are subject to a holding period beginning on the grant date and ending on the date that the grantee ceases to serve as a member of the Board (the “Holding Period”). During the Holding Period, the restricted shares may not be sold, pledged or otherwise transferred by the grantee. Except for the grant of these 8,000 restricted shares of Common Stock, the Company has not made any grants under the Equity Incentive Plans. Any future grants under the Equity Incentive Plans will be approved by the independent members of the compensation committee of the Board. The 2019 non-employee director share awards had an aggregate grant date fair value of $0.2 million. The Company’s determination of the grant date fair value of the three-year vest restricted stock awards was calculated by multiplying the number of shares issued by the Company’s stock price at the grant date. Compensation cost is recognized on a straight-line basis over the vesting period and is included in general and administrative expenses in the Company’s consolidated statements of operations. During the year ended December 31, 2020 and the period from November 26, 2019 to December 31, 2019 , the Company recognized stock compensation expense totaling $0.1 million and less than $0.1 million, respectively, which is included in general and administrative expenses in the consolidated statement of operations. A summary of activity for these awards during the year ended December 31, 2020 and during the period from November 26, 2019 to December 31, 2019 , is presented below: Non-Vested Restricted Shares Shares Wtd. Avg. Fair Value Outstanding at November 25, 2019 — — Granted 8,000 $ 18.80 Vested — — Expired — — Forfeited — — Outstanding at December 31, 2019 8,000 $ 18.80 Granted — — Vested (2,664) $ 18.80 Expired — — Forfeited — — Outstanding at December 31, 2020 5,336 $ 18.80 As of December 31, 2020, there was $0.1 million of unrecognized compensation cost related to the three-year vest restricted shares, which will be recognized over a remaining period of 1.9 years. Each member of the Board has the option to receive his or her annual retainer in shares of Company common stock rather than cash. The number of shares awarded to the directors making such election is calculated quarterly by dividing the amount of the quarterly retainer payment due to such director by the trailing 20-day average price of the Company’s common stock as of the last business day of the calendar quarter, rounded down to the nearest whole number of shares. During the year ended December 31, 2020, the expense recognized for the value of the Company’s common stock received by non-employee directors totaled $0.2 million, or 14,572 shares, of which 4,098 shares were issued on April 1, 2020, 3,414 shares were issued on July 1, 2020, and 3,474 shares were issued on October 1, 2020 and 3,586 shares were issued on January 1, 2021. During the period from November 26, 2019 to December 31, 2019, the expense recognized for the value of the Company’s common stock received by non-employee directors totaled less than $0.1 million, or 1,269 shares which were issued on January 2, 2020. Stock compensation expense for the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018 is summarized as follows (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Stock Compensation Expense – Director Restricted Stock $ 51 $ 4 $ — $ — Stock Compensation Expense – Director Retainers Paid in Stock 217 — — — Allocation from CTO/Predecessor — — 509 232 Total Stock Compensation Expense (1) $ 268 $ 4 $ 509 $ 232 (1) Director retainers are issued through additional paid in capital in arrears. Therefore, the change in additional paid in capital during the year ended December 31, 2020 is equal to total stock compensation expense of $0.3 million, less the $0.05 million of fourth quarter 2020 director retainers, as those shares were issued on January 1, 2021 plus the fourth quarter 2019 director retainers of $0.02 million, as those shares were issued on January 2, 2020. For the periods prior to November 26, 2019, Predecessor’s stock-based compensation expense, included in general and administrative expenses in the combined statements of operations for the period from January 1, 2019 to November 25, 2019 and the year ended December 31, 2018, reflected an allocation of a portion of the stock compensation expense of CTO for the applicable periods. |
RELATED PARTY MANAGEMENT COMPAN
RELATED PARTY MANAGEMENT COMPANY | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY MANAGEMENT COMPANY | |
RELATED PARTY MANAGEMENT COMPANY | NOTE 15. RELATED PARTY MANAGEMENT COMPANY We are externally managed by the Manager, a wholly owned subsidiary of CTO. In addition to the CTO Private Placement, CTO purchased from us $8.0 million in shares of our common stock, or 421,053 shares, in the IPO. Upon completion of the Formation Transactions, CTO owned 22.3% of our outstanding common stock (assuming the OP Units issued to CTO in the Formation Transactions are exchanged for shares of our common stock on a one-for-one basis). On November 26, 2019, we entered into the Management Agreement. Pursuant to the terms of the Management Agreement, our Manager manages, operates and administers our day-to-day operations, business and affairs, subject to the direction and supervision of the Board and in accordance with the investment guidelines approved and monitored by the Board. Our Manager is subject to the direction and oversight of the Board. We pay our Manager a base management fee equal to 0.375% per quarter of our “total equity” (as defined in the Management Agreement and based on a 1.5% annual rate), calculated and payable in cash, quarterly in arrears. Our Manager has the ability to earn an annual incentive fee based on our total stockholder return exceeding an 8% cumulative annual hurdle rate (the “Outperformance Amount”) subject to a high-water mark price. We would pay our Manager an incentive fee to with respect to each annual measurement period in the amount of the greater of (i) $0.00 and (ii) the product of (a) 15% multiplied by (b) the Outperformance Amount multiplied by (c) the weighted average shares. No incentive fee was due for the year ended December 31, 2020. The initial term of the Management Agreement will expire on November 26, 2024 and will automatically renew for an unlimited number of successive one-year periods thereafter, unless the agreement is not renewed or is terminated in accordance with its terms. Our independent directors will review our Manager’s performance and the management fees annually and, following the initial term, the Management Agreement may be terminated annually upon the affirmative vote of two-thirds of our independent directors or upon a determination by the holders of a majority of the outstanding shares of our common stock, based upon (i) unsatisfactory performance that is materially detrimental to us or (ii) a determination that the management fees payable to our Manager are not fair, subject to our Manager’s right to prevent such termination due to unfair fees by accepting a reduction of management fees agreed to by two-thirds of our independent directors. We may also terminate the Management Agreement for cause at any time, including during the initial term, without the payment of any termination fee, with 30 days’ prior written notice from the Board. During the initial term of the Management Agreement, we may not terminate the Management Agreement except for cause. We will pay directly or reimburse our Manager for certain expenses, if incurred by our Manager. We will not reimburse any compensation expenses incurred by our Manager or its affiliates. Expense reimbursements to our Manager will be made in cash on a quarterly basis following the end of each quarter. In addition, we will pay all of our operating expenses, except those specifically required to be borne by our Manager pursuant to the Management Agreement. During the year ended December 31, 2020 and the period from November 26, 2019 to December 31, 2019, the Company incurred management fee expenses which totaled $2.6 million and $0.3 million, respectively. The Company also paid dividends on the common stock owned by affiliates of its Manager in the amount of $1.7 million and $0.1 million for the year ended December 31, 2020 and the period from November 26, 2019 to December 31, 2019, respectively . There were no Manager dividends or management fees applicable to the Predecessor period from January 1, 2019 to November 25, 2019 or the Predecessor year ended December 31, 2018. The following table represents amounts due from the Company to CTO (in thousands): As of Description December 31, 2020 December 31, 2019 Management Fee due to CTO $ 631 $ 254 Dividend Payable on OP Units — 71 Other (52) 56 Total (1) $ 579 $ 381 (1) Included in Accrued Expenses, see Note 8, “Accounts Payable, Accrued Expenses, and Other Liabilities”. Exclusivity and ROFO Agreement On November 26, 2019, we also entered into an exclusivity and right of first offer (“ROFO”) agreement with CTO. During the term of the exclusivity and ROFO agreement, CTO will not, and will cause each of its affiliates (which for purposes of the exclusivity and ROFO agreement will not include our company and our subsidiaries) not to, acquire, directly or indirectly, a single-tenant, net leased property, without providing us with notice and we have affirmatively rejected the opportunity to acquire the applicable property or properties. The terms of the exclusivity and ROFO agreement do not restrict CTO or any of its affiliates from providing financing for a third party’s acquisition of single-tenant, net leased properties or from developing and owning any single-tenant, net leased property. Pursuant to the exclusivity and ROFO agreement, neither CTO nor any of its affiliates (which for purposes of the exclusivity and ROFO agreement does not include our company and our subsidiaries) may sell to any third party any single-tenant, net leased property that was owned by CTO or any of its affiliates as of the closing date of the IPO; or is owned by CTO or any of its affiliates after the closing date of the IPO, without first offering us the right to purchase such property. The term of the exclusivity and ROFO agreement will continue for so long as the Management Agreement with our Manager is in effect. Conflicts of Interest Conflicts of interest may exist or could arise in the future with CTO and its affiliates, including our Manager, the individuals who serve as our executive officers and executive officers of CTO, any individual who serves as a director of our company and as a director of CTO and any limited partner of the Operating Partnership. Conflicts may include, without limitation: conflicts arising from the enforcement of agreements between us and CTO or our Manager; conflicts in the amount of time that executive officers and employees of CTO, who are provided to us through our Manager, will spend on our affairs versus CTO’s affairs; and conflicts in future transactions that we may pursue with CTO and its affiliates. We do not generally expect to enter into joint ventures with CTO, but if we do so, the terms and conditions of our joint venture investment will be subject to the approval of a majority of disinterested directors of the Board. In addition, we are subject to conflicts of interest arising out of our relationships with our Manager. Pursuant to the Management Agreement, our Manager is obligated to supply us with our senior management team. However, our Manager is not obligated to dedicate any specific CTO personnel exclusively to us, nor are the CTO personnel provided to us by our Manager obligated to dedicate any specific portion of their time to the management of our business. Additionally, our Manager is a wholly owned subsidiary of CTO. All of our executive officers are executive officers and employees of CTO and one of our officers (John P. Albright) is also a member of CTO’s board of directors. As a result, our Manager and the CTO personnel it provides to us may have conflicts between their duties to us and their duties to, and interests in, CTO. We may acquire or sell single-tenant, net leased properties in which our Manager or its affiliates have or may have an interest. Similarly, our Manager or its affiliates may acquire or sell single-tenant, net leased properties in which we have or may have an interest. Although such acquisitions or dispositions may present conflicts of interest, we nonetheless may pursue and consummate such transactions. Additionally, we may engage in transactions directly with our Manager or its affiliates, including the purchase and sale of all or a portion of a portfolio asset. If we acquire a single-tenant, net leased property from CTO or one of its affiliates or sell a single-tenant, net leased property to CTO or one of its affiliates, the purchase price we pay to CTO or one of its affiliates or the purchase price paid to us by CTO or one of its affiliates may be higher or lower, respectively, than the purchase price that would have been paid to or by us if the transaction were the result of arms’ length negotiations with an unaffiliated third party. In deciding whether to issue additional debt or equity securities, we will rely, in part, on recommendations made by our Manager. While such decisions are subject to the approval of the Board, our Manager is entitled to be paid a base management fee that is based on our “total equity” (as defined in the Management Agreement). As a result, our Manager may have an incentive to recommend that we issue additional equity securities at dilutive prices. All of our executive officers are executive officers and employees of CTO. These individuals and other CTO personnel provided to us through our Manager devote as much time to us as our Manager deems appropriate. However, our executive officers and other CTO personnel provided to us through our Manager may have conflicts in allocating their time and services between us, on the one hand, and CTO and its affiliates, on the other. During a period of prolonged economic weakness or another economic downturn affecting the real estate industry or at other times when we need focused support and assistance from our Manager and the CTO executive officers and other personnel provided to us through our Manager, we may not receive the necessary support and assistance we require or that we would otherwise receive if we were self-managed. Additionally, the exclusivity and ROFO agreement does contain exceptions to CTO’s exclusivity for opportunities that include only an incidental interest in single-tenant, net leased properties. Accordingly, the exclusivity and ROFO agreement will not prevent CTO from pursuing certain acquisition opportunities that otherwise satisfy our then-current investment criteria. Our directors and executive officers have duties to our company under applicable Maryland law in connection with their management of our company. At the same time, PINE GP has fiduciary duties, as the general partner, to the Operating Partnership and to the limited partners under Delaware law in connection with the management of the Operating Partnership. These duties as a general partner to the Operating Partnership and its partners may come into conflict with the duties of our directors and executive officers to us. Unless otherwise provided for in the relevant partnership agreement, Delaware law generally requires a general partner of a Delaware limited partnership to adhere to fiduciary duty standards under which it owes its limited partners the highest duties of loyalty and care and which generally prohibits such general partner from taking any action or engaging in any transaction as to which it has a conflict of interest. The partnership agreement provides that in the event of a conflict between the interests of our stockholders on the one hand and the limited partners of the Operating Partnership on the other hand, PINE GP will endeavor in good faith to resolve the conflict in a manner not adverse to either our stockholders or the limited partners; provided, however, that so long as we own a controlling interest in the Operating Partnership, any such conflict that we, in our sole and absolute discretion, determine cannot be resolved in a manner not adverse to either our stockholders or the limited partners of the Operating Partnership shall be resolved in favor of our stockholders, and we shall not be liable for monetary damages for losses sustained, liabilities incurred or benefits not derived by the limited partners in connection with such decisions. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 16. COMMITMENTS AND CONTINGENCIES LEGAL PROCEEDINGS From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of business. While the outcome of the legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon our financial condition or results of operations. CONTRACTUAL COMMITMENTS - EXPENDITURES Through December 31, 2020, the Company incurred $0.9 million of tenant improvements related to the property leased to 7-Eleven in Georgetown, Texas, of which the tenant reimbursed $0.4 million subsequent to year end pursuant to the lease. As of December 31, 2020, $0.1 million of the total $0.9 million was left to be funded. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 17. SUBSEQUENT EVENTS The Company reviewed all subsequent events and transactions through February 16, 2021, the date the consolidated and combined financial statements were issued. COVID-19 Pandemic – 2021 Collections Update The Company has received payments for CBR due in January and February 2021 from tenants representing 100% of the CBR due during such periods. Income Property Acquisitions On January 25, 2021 the Company acquired three single-tenant income properties in three separate transactions for an aggregate purchase price of $4.4 million, reflecting a weighted-average going-in cash cap rate of 6.5%. The three properties are located in Cut and Shoot, Del Rio, and Seguin, Texas and are leased to Dollar General. As of the acquisition date, the properties had a weighted-average remaining lease term of 14.3 years. First Quarter 2021 Dividend The Company declared a first quarter 2021 cash dividend of $0.24 per share, representing a 9.1% increase from the fourth quarter of 2020. The dividend is payable on March 31, 2021 to stockholders of record as of the close of business on March 22, 2021. There were no other reportable subsequent events or transactions. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION For periods subsequent to November 26, 2019, the consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and other entities in which we have a controlling interest. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements. For periods prior to November 26, 2019, the combined financial statements include, on a carve-out basis, the historical balance sheets and statements of operations and cash flows of the Predecessor. |
SEGMENT REPORTING | SEGMENT REPORTING ASC Topic 280, Segment Reporting, establishes standards related to the manner in which enterprises report operating segment information. The Company is primarily in the business of acquiring and managing retail real estate which is considered to be one reporting segment. The Company has no other reportable segments. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of allocating and evaluating financial performance. |
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS | USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period presented. Actual results could differ from those estimates. Among other factors, fluctuating market conditions that can exist in the national real estate markets and the volatility and uncertainty in the financial and credit markets make it possible that the estimates and assumptions, most notably those related to PINE’s investment in income properties, could change materially due to continued volatility in the real estate and financial markets, or as a result of a significant dislocation in those markets. |
REAL ESTATE | REAL ESTATE The Company’s real estate assets are primarily comprised of the income properties in its portfolio, and are stated at cost, less accumulated depreciation and amortization. Such income properties are depreciated on a straight-line basis over their estimated useful lives. Renewals and betterments are capitalized to the applicable income property accounts. The cost of maintenance and repairs is expensed as incurred. The cost of property retired or otherwise disposed of, and the related accumulated depreciation or amortization, are removed from the accounts, and any resulting gain or loss is recorded in the statement of operations. The amount of depreciation of real estate, exclusive of amortization related to intangible assets, recognized for the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018, was $6.2 million, $0.4 million, $3.2 million, and $3.2 million, respectively. |
LONG-LIVED ASSETS | LONG-LIVED ASSETS The Company follows Financial Accounting Standards Board (“FASB”) ASC Topic 360‑10, Property, Plant, and Equipment in conducting its impairment analyses. The Company reviews the recoverability of long-lived assets, primarily real estate, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Examples of situations considered to be triggering events include: a substantial decline in operating cash flows during the period, a current or projected loss from operations, an income property not fully leased or leased at rates that are less than current market rates, and any other quantitative or qualitative events deemed significant by management. Long-lived assets are evaluated for impairment by using an undiscounted cash flow approach, which considers future estimated capital expenditures. Impairment of long-lived assets is measured at fair value less cost to sell. |
PURCHASE ACCOUNTING FOR ACQUISITIONS OF REAL ESTATE SUBJECT TO A LEASE | PURCHASE ACCOUNTING FOR ACQUISITIONS OF REAL ESTATE SUBJECT TO A LEASE Investments in real estate are carried at cost less accumulated depreciation and impairment losses, if any. The cost of investments in real estate reflects their purchase price or development cost. We evaluate each acquisition transaction to determine whether the acquired asset meets the definition of a business. Under Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , an acquisition does not qualify as a business when there is no substantive process acquired or substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. Transaction costs related to acquisitions that are asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred. Improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset. Costs of repairs and maintenance are expensed as incurred. In accordance with FASB guidance, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the management believes that it is likely that the tenant will renew the lease upon expiration, in which case both the Company and the Predecessor amortize the value attributable to the renewal over the renewal period. The value of in-place leases and leasing costs are amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off . |
INCOME PROPERTY LEASE REVENUE | INCOME PROPERTY LEASE REVENUE The rental arrangements associated with the Company’s income property portfolio are classified as operating leases. The Company recognizes lease income on these properties on a straight-line basis over the term of the lease. Accordingly, contractual lease payment increases are recognized evenly over the term of the lease. The periodic difference between lease income recognized under this method and contractual lease payment terms (i.e., straight-line rent) is recorded as a deferred operating lease receivable and is included in straight-line rent adjustment on the accompanying consolidated balance sheets. The Company’s leases provide for reimbursement from tenants for variable lease payments including common area maintenance, insurance, real estate taxes and other operating expenses. A portion of our variable lease payment revenue is estimated each period and is recognized as rental income in the period the recoverable costs are incurred and accrued. The collectability of tenant receivables and straight-line rent adjustments is determined based on, among other things, the aging of the tenant receivable, management’s evaluation of credit risk associated with the tenant and industry of the tenant, and a review of specifically identified accounts using judgment. As of December 31, 2020, the Company recorded an allowance for doubtful accounts of $0.1 million. As of December 31, 2019, and 2018, no allowance for doubtful accounts was required. |
SALES TAX | SALES TAX Sales tax collected on lease payments is recognized as a liability in the accompanying consolidated balance sheets when collected. The liability is reduced at the time payment is remitted to the applicable taxing authority. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, bank demand accounts, and money market accounts having original maturities of 90 days or less. The Company’s bank balances as of December 31, 2020 and 2019 include certain amounts over the Federal Deposit Insurance Corporation limits. The carrying value of cash and cash equivalents is reported at Level 1 in the fair value hierarchy, which represents valuation based upon quoted prices in active markets for identical assets or liabilities. |
DEFERRED EXPENSES | DEFERRED EXPENSES As of December 31, 2020, the Company’s long-term debt includes deferred financing costs associated with the Company’s Credit Facility . These costs are amortized on a straight-line basis over the term of the Credit Facility and are included in interest expense in the Company’s accompanying consolidated and combined statements of operations. As of December 31, 2019, these costs are reflected as deferred expenses on the accompanying consolidated balance sheet as there was no outstanding debt as of December 31, 2019. |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY Effective April 30, 2020, in conjunction with the variable-rate Credit Facility (hereinafter defined in Note 9, “Long-Term Debt”), the Company entered into an Interest Rate Swap to fix the interest rate on $50.0 million of the outstanding Credit Facility balance (the “Interest Rate Swap”). The Company accounts for its cash flow hedging derivative in accordance with FASB ASC Topic 815-20, Derivatives and Hedging . Depending upon the Interest Rate Swap’s value at each balance sheet date, the derivative is included in either other assets or accounts payable, accrued expenses, and other liabilities on the consolidated balance sheet at its fair value. On the date the Interest Rate Swap was entered into, the Company designated the derivative as a hedge of the variability of cash flows to be paid related to the recognized long-term debt liabilities. The Company formally documented the relationship between the hedging instrument and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. At the Interest Rate Swap’s inception, the Company formally assessed whether the derivative that is used in hedging the transaction is highly effective in offsetting changes in cash flows of the hedged item, and we will continue to do so on an ongoing basis. As the terms of the Interest Rate Swap and the associated debt are identical, the hedging instrument qualifies for the shortcut method, therefore, it is assumed that there is no hedge ineffectiveness throughout the entire term of the hedging instrument. Changes in fair value of the hedging instrument that are highly effective and designated and qualified as cash-flow hedge are recorded in other comprehensive income and loss until earnings are affected by the variability in cash flows of the designated hedged item. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other liabilities at December 31, 2020 and December 31, 2019, approximate fair value because of the short maturity of these instruments. The carrying value of the Credit Facility approximates current market rates for revolving credit arrangements with similar risks and maturities. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company’s estimates of fair value of financial and non-financial assets and liabilities is based on the framework established by GAAP. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. GAAP describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels: · Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities. · Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques. |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per common share is computed by dividing net income attributable to the Company for the period by the weighted average number of shares outstanding for the period. Diluted earnings per common share is based on the assumption that the OP Units issued to CTO in the Formation Transactions are exchanged for shares of our common stock on a one-for-one basis. |
INCOME TAXES | INCOME TAXES The Company has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code commencing with its short taxable year beginning on November 26, 2019 and ending on December 31, 2019. The Company believes that, commencing with such short taxable year, it has been organized and has operated in such a manner as to qualify for taxation as a REIT under the U.S. federal income tax laws. The Company intends to continue to operate in such a manner. As a REIT, the Company will be subject to U.S. federal and state income taxation at corporate rates on its net taxable income; the Company, however, may claim a deduction for the amount of dividends paid to its stockholders. Amounts distributed as dividends by the Company will be subject to taxation at the stockholder level only. While the Company must distribute at least 90% of its REIT taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain, to qualify as a REIT, the Company intends to distribute all of its net taxable income. The Company is allowed certain other non-cash deductions or adjustments, such as depreciation expense, when computing its REIT taxable income and distribution requirement. These deductions permit the Company to reduce its dividend payout requirement under U.S. federal income tax laws. Certain states may impose minimum franchise taxes. The Company may form one or more taxable REIT subsidiaries (“TRSs”), which will be subject to applicable U.S. federal, state and local corporate income tax on their taxable income. For the periods presented, the Company did not have any TRSs that would be subject to taxation. |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company adopted the Individual Equity Incentive Plan (the “Individual Plan”) and the Manager Equity Incentive Plan (the “Manager Plan”), which are collectively referred to herein as the Equity Incentive Plans. The purpose of the Equity Incentive Plans is to provide equity incentive opportunities to members of the Manager’s management team and employees who perform services for the Company, the Company’s independent directors, advisers, consultants and other personnel, either individually or via grants of incentive equity to the Manager. As of December 31, 2020, the Company has issued restricted shares of common stock pursuant to the Equity Incentive Plan. The Company’s determination of the grant date fair value of the three-year vest restricted stock awards was calculated by multiplying the number of shares issued by the Company’s stock price at the grant date. Compensation cost is recognized on a straight-line basis over the vesting period and is included in general and administrative expenses in the Company’s consolidated and combined statements of operations. Award forfeitures are accounted for in the period in which they occur. |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK Certain of the tenants in the portfolio of 48 single-tenant properties accounted for more than 10% of total revenues during the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018. During the year ended December 31, 2020, the properties leased to Wells Fargo Bank and Hilton Grand Vacations represented 19% and 12% of total revenues, respectively. During the period from November 26, 2019 to December 31, 2019 and the Predecessor period from January 1, 2019 to November 25, 2019, the properties leased to Wells Fargo Bank and Hilton Grand Vacations represented 26% and 17% of total revenues, respectively. During the Predecessor year ended December 31, 2018, the properties leased to Wells Fargo Bank and Hilton Grand Vacations represented 31% and 18% of total revenues, respectively. As of December 31, 2020 and 2019, 13% and 24%, respectively, of the Company’s real estate portfolio, based on square footage, was located in the State of Oregon. As of December 31, 2020 and 2019, 17% and 29%, respectively, of the Company’s real estate portfolio, based on square footage, was located in the State of Florida. Additionally, as of December 31, 2020, individually more than 10% of the Company’s real estate portfolio, based on square footage, was located in the States of North Carolina and Michigan. As of December 31, 2019, more than 10% of the Company’s real estate portfolio, based on square footage, was located in the states of Georgia and North Carolina. Uncertainty of the duration of a prolonged real estate and economic downturn could have an adverse impact on the Company’s real estate values. |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS Cessation of LIBOR . In January 2021, the FASB issued ASU 2021-01 which is in response to concerns about structural risks of interbank offered rates (“IBORs”), and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators in numerous jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The amendments in ASU 2021-01 are effective immediately and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The Company believes it’s Interest Rate Swap (hereinafter defined) meets the scope of Topic 848-10-15-3A and therefore, Company will be able to continue to apply a perfectly effective assessment method by electing the corresponding optional expedient for subsequent assessments. Lease Modifications. In April 2020, the FASB issued interpretive guidance relating to the accounting for lease concessions provided as a result of the COVID-19 Pandemic. In this guidance, entities can elect not to apply lease modification accounting with respect to such lease concessions and, instead, treat the concession as if it was a part of the existing contract. This guidance is only applicable to lease concessions related to the COVID-19 Pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. As of and for the year ended December 31, 2020, the Company elected to not apply lease modification accounting with respect to rent deferrals as the concessions were related to COVID-19 and there was not a substantial increase in the lessor’s rights under the lease agreement. Accordingly, for leases in which deferred rent agreements were reached, the Company has continued to account for the lease by recognizing the normal straight-line rental income and as the deferred rents are repaid by the tenant, the straight-line receivable will be reduced. The portion of the straight-line adjustment related to COVID-19 concessions has been reflected separately in the Company’s statement of cash flows for the year ended December 31, 2020. With respect to rent abatement agreements, lease modification accounting applies as an extended term was a part of such agreements, accordingly the Company re-calculated straight-line rental income for such leases to recognize over the new lease term. ASC Topic 842, Leases. In February 2016, the FASB issued ASU 2016-02, which requires entities to recognize assets and liabilities that arise from financing and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows pursuant to FASB ASC Topic 842, Leases . The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. During the Company’s and Predecessor’s evaluation of FASB ASC Topic 842, Leases , the following practical expedients and accounting policies with respect to ASC 842 were elected and/or adopted effective January 1, 2019: · The Company, as lessor, will not reassess (i) whether any expired or existing contracts are or contain leases (ii) lease classification for any expired or existing leases or (iii) initial direct costs for any expired or existing leases. · The Company, as lessor, will not separate nonlease components from lease components and, instead, will account for each separate lease component and the nonlease components associated with that lease as a single component if the nonlease components otherwise would be accounted for under ASC Topic 606, Revenue from Contracts with Customers . The primary reason for this election is related to instances where common area maintenance is, or may be, a component of base rent within a lease agreement. |
INCOME PROPERTY PORTFOLIO (Tabl
INCOME PROPERTY PORTFOLIO (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME PROPERTY PORTFOLIO | |
Schedule of components of leasing revenue | The components of lease income are as follows (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Lease Income Lease Payments $ 17,746 $ 1,294 $ 10,810 $ 10,779 Variable Lease Payments 1,502 100 1,027 941 Total Lease Income $ 19,248 $ 1,394 $ 11,837 $ 11,720 |
Schedule of minimum future base rental revenue on non-cancelable leases | Minimum Future Rental Receipts. Minimum future rental receipts under non-cancelable operating leases, excluding percentage rent and other lease payments that are not fixed and determinable, having remaining terms in excess of one year as of December 31, 2020, are summarized as follows (in thousands): Year Ending December 31, Amounts 2021 $ 20,974 2022 20,675 2023 20,825 2024 20,351 2025 19,824 2026 and thereafter (cumulative) 74,894 Total $ 177,543 |
Schedule of single-tenant net lease income properties acquired | The single-tenant net lease income properties acquired during the year ended December 31, 2020 are described below: Tenant Description Property Location Date of Acquisition Property Square-Feet Purchase Price ($000's) Remaining Lease Term at Acquisition Date (in years) 7-Eleven Austin, TX 1/13/2020 $ 7-Eleven Georgetown, TX 1/13/2020 Conn's HomePlus Hurst, TX 1/10/2020 Lehigh Gas Wholesale Services, Inc. Highland Heights, KY 2/03/2020 American Multi-Cinema, Inc. Tyngsborough, MA 2/19/2020 Hobby Lobby Tulsa, OK 2/28/2020 Long John Silver's Tulsa, OK 2/28/2020 N/A Old Time Pottery Orange Park, FL 2/28/2020 Freddy's Frozen Custard Orange Park, FL 2/28/2020 Hobby Lobby Arden, NC 6/24/2020 Walmart Howell, MI 6/30/2020 Advanced Auto Parts Severn, MD 9/14/2020 Dollar General Heuvelton, NY 9/14/2020 Dollar General Winthrop, NY 9/14/2020 Dollar General Salem, NY 9/14/2020 Dollar General Harrisville, NY 9/14/2020 Dollar General Newtonsville, OH 9/14/2020 Dollar General Hammond, NY 9/14/2020 Dollar General Barker, NY 9/14/2020 Dollar General Chazy, NY 9/14/2020 Dollar General Milford, ME 9/21/2020 Dollar General Limestone, ME 9/21/2020 Dollar General Bingham, ME 9/21/2020 Dollar General Willis, TX 9/23/2020 Dollar General Somerville, TX 9/23/2020 Dollar General Odessa, TX 9/30/2020 Dollar General Kermit, TX 11/9/2020 Kohl's Glendale, AZ 12/11/2020 Walgreens Tacoma, WA 12/18/2020 Total / Weighted Average $ |
Schedule of purchase consideration, calculation | November 26, 2019 Total OP Units Issued (number of units) 1,223,854 Company's IPO Price per Share $ 19.00 Total OP Unit Consideration Paid for Initial Portfolio $ 23,253,230 Total Cash Consideration Paid for Initial Portfolio 125,918,773 Total Purchase Consideration Paid for Initial Portfolio $ 149,172,003 |
Schedule of purchase consideration, units issued | November 26, 2019 Total OP Units Issued (number of units) 1,223,854 Company's IPO Price per Share $ 19.00 Total OP Unit Consideration Paid for Initial Portfolio $ 23,253,230 Total Cash Consideration Paid for Initial Portfolio 125,918,773 Total Purchase Consideration Paid for Initial Portfolio $ 149,172,003 |
Schedule of fair value of the total purchase consideration | November 26, 2019 Land, at cost $ 54,386,511 Building and Improvements, at cost 74,070,181 Intangible Lease Assets 22,648,727 Intangible Lease Liabilities (1,933,416) Estimated Fair Value of Net Assets Acquired $ 149,172,003 |
Schedule of unaudited pro forma consolidated financial information | This information is presented for informational purposes only and does not purport to be indicative of the results of future operations or the results that would have occurred had the transaction taken place on January 1, 2018: For the Years Ended December 31, 2019 2018 Unaudited Pro Forma Total Revenues $ 13,963,945 $ 14,023,566 Unaudited Pro Forma Net Income Attributable to Alpine Income Property Trust, Inc. 759,512 723,274 Unaudited Pro Forma Basic Net Income per Share 0.10 0.09 Unaudited Pro Forma Diluted Net Income per Share 0.08 0.08 Unaudited Pro Forma Funds from Operations 7,825,645 7,789,407 Unaudited Pro Form Adjusted Funds from Operations 7,437,723 7,345,549 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of carrying value and estimated fair value of financial instruments | The following table presents the carrying value and estimated fair value of the Company’s financial instruments at December 31, 2020 and December 31, 2019 (in thousands): December 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Cash and Cash Equivalents - Level 1 $ 1,894 $ 1,894 $ 12,342 $ 12,342 Long-Term Debt - Level 2 $ 106,159 $ 106,159 $ — $ — |
Schedule of fair value of assets measured on recurring basis by Level | There were no assets or liabilities measured on a recurring basis by Level as of December 31, 2019 (in thousands). Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs 12/31/2020 Assets (Level 1) (Level 2) (Level 3) Interest Rate Swap $ (481) $ — $ (481) $ — |
INTANGIBLE ASSETS AND LIABILI_2
INTANGIBLE ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INTANGIBLE ASSETS AND LIABILITIES | |
Schedule of components of intangible lease assets and liabilities | Intangible assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values. Intangible assets and liabilities consisted of the following as of December 31, 2020 and 2019 (in thousands): As of December 31, 2020 December 31, 2019 Intangible Lease Assets: Value of In-Place Leases $ 27,494 $ 14,479 Value of Above Market In-Place Leases 2,187 1,626 Value of Intangible Leasing Costs 11,459 6,544 Sub-total Intangible Lease Assets 41,140 22,649 Accumulated Amortization (4,259) (291) Sub-total Intangible Lease Assets—Net 36,881 22,358 Intangible Lease Liabilities: Value of Below Market In-Place Leases (3,674) (1,933) Sub-total Intangible Lease Liabilities (3,674) (1,933) Accumulated Amortization 375 25 Sub-total Intangible Lease Liabilities—Net (3,299) (1,908) Total Intangible Assets and Liabilities—Net $ 33,582 $ 20,450 |
Schedule of amortization of intangible assets and liabilities | The following table reflects the net amortization of intangible assets and liabilities during the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018 (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Depreciation and Amortization Expense $ 3,758 $ 271 $ 1,548 $ 1,544 Increase to Income Properties Revenue (108) (5) (234) (229) Net Amortization of Intangible Assets and Liabilities $ 3,650 $ 266 $ 1,314 $ 1,315 |
Schedule of estimated future amortization and accretion of intangible lease assets and liabilities | The estimated future amortization expense (income) related to net intangible assets and liabilities is as follows (in thousands): Year Ending December 31, Future Amortization Expense Future Accretion to Income Property Revenue Net Future Amortization of Intangible Assets and Liabilities 2021 $ 4,695 $ (162) $ 4,533 2022 4,695 (162) 4,533 2023 4,694 (162) 4,532 2024 4,467 (151) 4,316 2025 4,224 (150) 4,074 2026 and thereafter 12,175 (581) 11,594 Total $ 34,950 $ (1,368) $ 33,582 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER ASSETS | |
Schedule of components of other assets | Other assets consisted of the following (in thousands): As of December 31, 2020 December 31, 2019 Tenant Receivables—Net (1) $ 67 $ — Accrued Unbilled Tenant Receivables 216 — Prepaid Insurance 606 499 Deposits on Acquisitions 100 200 Prepaid and Deposits - Other 442 89 Total Other Assets $ 1,431 $ 788 As of December 31, 2020, includes $0.1 million allowance for doubtful accounts. |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | |
Schedule of components of accounts payable accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities consisted of the following (in thousands): As of December 31, 2020 December 31, 2019 Accounts Payable $ 450 $ 463 Accrued Expenses 474 — Due to CTO (1) 579 381 Accrual for Tenant Improvement — 628 Interest Rate Swap 481 — Total Accounts Payable, Accrued Expenses, and Other Liabilities $ 1,984 $ 1,472 As of December 31, 2019, includes less than $0.1 million dividends declared and payable of $0.058 per share on the 1,223,854 OP Units due to CTO. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LONG-TERM DEBT | |
Schedule of outstanding indebtedness, at face value | As of December 31, 2020, the Company’s outstanding indebtedness, at face value, was as follows (in thousands): Face Value Debt Stated Interest Rate Maturity Date Credit Facility $ 106,809 30-Day LIBOR + (1) November 2023 Total Debt/Weighted-Average Rate $ 106,809 1.71% Effective April 30, 2020, the Company utilized an Interest Rate Swap to achieve a fixed interest rate of 0.48% plus the applicable spread on $50.0 million of the outstanding balance on the Credit Facility. |
Schedule of components of long-term debt | Long-term debt as of December 31, 2020 and December 31, 2019 consisted of the following (in thousands): December 31, 2020 December 31, 2019 Total Due Within One Year Total Due Within One Year Credit Facility $ 106,809 $ — $ — $ — Loan Costs, net of accumulated amortization (650) — — — Total Long-Term Debt $ 106,159 $ — $ — $ — |
Schedule of payments applicable to reduction of principal amounts | Payments applicable to reduction of principal amounts as of December 31, 2020 will be required as follows (in thousands): Year Ending December 31, Amount 2021 $ — 2022 — 2023 106,809 2024 — 2025 — 2026 and thereafter — Total Long-Term Debt - Face Value $ 106,809 |
Schedule of interest expense on debt | The following table reflects a summary of interest expense incurred and paid during the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018 (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Interest Expense $ 1,276 $ 25 $ — $ — Amortization of Loan Costs 188 16 — — Total Interest Expense $ 1,464 $ 41 $ — $ — Total Interest Paid $ 1,230 $ — $ — $ — |
COMMON STOCK AND EARNINGS PER_2
COMMON STOCK AND EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMON STOCK AND EARNINGS PER SHARE | |
Schedule of computation of earnings per share | The following is a reconciliation of basic and diluted earnings per common share (in thousands, except share and per share data): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Net Income Attributable to Alpine Income Property Trust, Inc. $ 985 $ (39) $ 3,631 $ 4,015 Weighted Average Number of Common Shares Outstanding 7,588,349 7,902,737 N/A N/A Common Shares Applicable to OP Units using Treasury Stock Method (1) 1,223,854 1,223,854 N/A N/A Total Shares Applicable to Diluted Earnings per Share 8,812,203 9,126,591 N/A N/A Per Common Share Data: Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. Basic $ 0.13 $ — N/A N/A Diluted $ 0.11 $ — N/A N/A (1) Represents OP Units owned by CTO Realty Growth, Inc. issued in connection with our Formation Transactions. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION | |
Summary of nonvested restricted stock award activity | Non-Vested Restricted Shares Shares Wtd. Avg. Fair Value Outstanding at November 25, 2019 — — Granted 8,000 $ 18.80 Vested — — Expired — — Forfeited — — Outstanding at December 31, 2019 8,000 $ 18.80 Granted — — Vested (2,664) $ 18.80 Expired — — Forfeited — — Outstanding at December 31, 2020 5,336 $ 18.80 |
Summary of activity for stock option awards | Stock compensation expense for the year ended December 31, 2020, the period from November 26, 2019 to December 31, 2019, the Predecessor period from January 1, 2019 to November 25, 2019, and the Predecessor year ended December 31, 2018 is summarized as follows (in thousands): For the Year Ended December 31, 2020 For the Period from November 26, 2019 to December 31, 2019 For the Period from January 1, 2019 to November 25, 2019 For the Year Ended December 31, 2018 The Company Predecessor Stock Compensation Expense – Director Restricted Stock $ 51 $ 4 $ — $ — Stock Compensation Expense – Director Retainers Paid in Stock 217 — — — Allocation from CTO/Predecessor — — 509 232 Total Stock Compensation Expense (1) $ 268 $ 4 $ 509 $ 232 Director retainers are issued through additional paid in capital in arrears. Therefore, the change in additional paid in capital during the year ended December 31, 2020 is equal to total stock compensation expense of $0.3 million, less the $0.05 million of fourth quarter 2020 director retainers, as those shares were issued on January 1, 2021 plus the fourth quarter 2019 director retainers of $0.02 million, as those shares were issued on January 2, 2020. |
RELATED PARTY MANAGEMENT COMP_2
RELATED PARTY MANAGEMENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY MANAGEMENT COMPANY | |
Schedule of amount due to parent company | The following table represents amounts due from the Company to CTO (in thousands): As of Description December 31, 2020 December 31, 2019 Management Fee due to CTO $ 631 $ 254 Dividend Payable on OP Units — 71 Other (52) 56 Total (1) $ 579 $ 381 Included in Accrued Expenses, see Note 8, “Accounts Payable, Accrued Expenses, and Other Liabilities”. |
BUSINESS AND ORGANIZATION - Bus
BUSINESS AND ORGANIZATION - Business (Details) | Dec. 31, 2020employeestateitemproperty |
Description of business | |
Number of real estate properties | 48 |
Number of markets in which entity operates | item | 34 |
Number of states in which entity operates | state | 18 |
Entity Number of Employees | employee | 0 |
Single-tenant | |
Description of business | |
Number of real estate properties | 48 |
BUSINESS AND ORGANIZATION - Org
BUSINESS AND ORGANIZATION - Organization (Details) $ / shares in Units, $ in Thousands | Nov. 26, 2019USD ($)property$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2020 |
Class of Stock [Line Items] | |||
Gross proceeds form the issuance of common stock | $ 142,500 | ||
Share issued | shares | 421,053 | ||
Cash investment | $ 15,500 | ||
Cash Received from Private Placement | $ 125,900 | $ 7,501 | |
OP units exchanged | shares | 1,223,854 | ||
Value of OP units converted | $ 23,300 | ||
Net Transactions with Consolidated-Tomoka Land Co. | 12,000 | ||
Underwriting fees | $ 9,400 | ||
Percentage of outstanding common stock | 22.30% | ||
Stock split ratio | 1 | ||
REIT Eligibility, Distributable , Minimum Percentage of Taxable Income, Excluding Net Capital Gains | 90.00% | ||
IPO | |||
Class of Stock [Line Items] | |||
Price per share | $ / shares | $ 19 | ||
Gross proceeds form the issuance of common stock | $ 142,500 | ||
Share issued | shares | 7,500,000 | ||
Private Placement | |||
Class of Stock [Line Items] | |||
Share issued | shares | 394,737 | ||
Stock Issuance to Directors | $ 7,500 | ||
Single-tenant | |||
Class of Stock [Line Items] | |||
Number of properties acquired | property | 15 | ||
Number of contributed properties | property | 5 | ||
PINE GP | Operating Partnership | |||
Class of Stock [Line Items] | |||
Ownership interest in Operating partnership | 85.90% | ||
CTO | |||
Class of Stock [Line Items] | |||
Stock Issuance to Directors | $ 8,000 | ||
Percentage of outstanding common stock | 22.30% | ||
Stock split ratio | 1 | ||
CTO | Operating Partnership | |||
Class of Stock [Line Items] | |||
Ownership interest of Manager in Operating partnership | 14.10% |
BASIS OF PRESENTATION AND PRI_2
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION (Details) - segment | Nov. 26, 2019 | Dec. 31, 2020 |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | ||
Financial Designation, Predecessor and Successor | Predecessor | |
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - General Information (Details) $ in Thousands | Nov. 26, 2019 | Dec. 31, 2019USD ($) | Nov. 25, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Real estate depreciation, excluding intangible assets amortization | $ 400 | $ 3,200 | $ 6,200 | $ 3,200 | ||
Allowance for doubtful accounts | $ 0 | $ 100 | $ 0 | $ 0 | ||
Debt outstanding | $ 0 | |||||
Stock split ratio | 1 | |||||
REIT Eligibility, Distributable , Minimum Percentage of Taxable Income, Excluding Net Capital Gains | 90.00% | 90.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-based Compensation (Details) - USD ($) $ in Millions | Nov. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Apr. 30, 2020 |
Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted shares | 8,000 | |||
Granted (in shares) | 8,000 | |||
Credit Facility | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Interest rate swap | $ 50 | |||
Non employee | Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted shares | 2,000 | 8,000 | 0 | |
Aggregate grant date fair value | $ 0.2 | |||
Granted (in shares) | 2,000 | 8,000 | 0 | |
Vesting period | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - property | Nov. 30, 2019 | Dec. 31, 2019 | Nov. 25, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Product Information [Line Items] | ||||||||
Number of real estate properties | 48 | |||||||
Real estate property at Oregon | ||||||||
Product Information [Line Items] | ||||||||
Real estate portfolio (as a percent) | 13.00% | 24.00% | ||||||
Real estate property at Florida | ||||||||
Product Information [Line Items] | ||||||||
Real estate portfolio (as a percent) | 17.00% | 29.00% | ||||||
Single-tenant | ||||||||
Product Information [Line Items] | ||||||||
Number of real estate properties | 48 | |||||||
Hilton Grand Vacations | Consolidated revenues | ||||||||
Product Information [Line Items] | ||||||||
Concentration risk ( as a percent) | 17.00% | 17.00% | 17.00% | 17.00% | 17.00% | 12.00% | 18.00% | |
Wells Fargo Bank, NA | Consolidated revenues | ||||||||
Product Information [Line Items] | ||||||||
Concentration risk ( as a percent) | 26.00% | 26.00% | 26.00% | 26.00% | 26.00% | 19.00% | 31.00% | |
Minimum | Real estate property located at Georgia And North Carolina | ||||||||
Product Information [Line Items] | ||||||||
Real estate portfolio (as a percent) | 10.00% | |||||||
Minimum | Real estate property located At North Carolina And Michigan [Member] | ||||||||
Product Information [Line Items] | ||||||||
Real estate portfolio (as a percent) | 10.00% | |||||||
Revenue risk | Minimum | Consolidated revenues | ||||||||
Product Information [Line Items] | ||||||||
Concentration risk ( as a percent) | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Standards - General Information (Details) - Accounting Standards Update 2016-02 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2019 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Standards - Practical Expedients (Details) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Lease, Practical Expedients, Package | true |
Lease, Practical Expedient, Lessor Single Lease Component | true |
INCOME PROPERTY PORTFOLIO - Por
INCOME PROPERTY PORTFOLIO - Portfolio Information (Details) ft² in Millions | Dec. 31, 2020ft²property |
INCOME PROPERTY PORTFOLIO | |
Number of real estate properties | property | 48 |
Area of real estate property | ft² | 1.6 |
INCOME PROPERTY PORTFOLIO - Lea
INCOME PROPERTY PORTFOLIO - Leasing Revenue (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Lease Income | ||||
Lease Payments | $ 1,294 | $ 10,810 | $ 17,746 | $ 10,779 |
Variable Lease Payments | 100 | 1,027 | 1,502 | 941 |
Total Lease Income | $ 1,394 | $ 11,837 | $ 19,248 | $ 11,720 |
INCOME PROPERTY PORTFOLIO - Min
INCOME PROPERTY PORTFOLIO - Minimum Future Base Rental Revenue on Non-cancelable Leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Minimum future base rental revenue on non-cancelable leases | |
2021 | $ 20,974 |
2022 | 20,675 |
2023 | 20,825 |
2024 | 20,351 |
2025 | 19,824 |
2026 and thereafter (cumulative) | 74,894 |
Total | $ 177,543 |
INCOME PROPERTY PORTFOLIO - Pro
INCOME PROPERTY PORTFOLIO - Properties Acquired - General Information (Details) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 25, 2019USD ($)property | Dec. 31, 2020USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2019USD ($) | |
INCOME PROPERTY PORTFOLIO | ||||
Number of real estate properties | property | 48 | |||
Acquired intangible liabilities for the below market lease | $ 3,299 | $ 1,908 | ||
Single-tenant Net Lease Income Properties Acquired in 2020 | ||||
INCOME PROPERTY PORTFOLIO | ||||
Number of real estate properties | property | 29 | |||
Purchase price | $ 116,633 | |||
Acquired properties, cost | 117,700 | |||
Initial cost of land | 30,300 | |||
Initial cost of building and improvements | 70,000 | |||
Acquired in-place lease value, leasing fees, and above market lease value | 19,100 | |||
Acquired intangible liabilities for the below market lease | $ 1,700 | |||
Weighted average amortization period of intangible liabilities | 10 years 1 month 6 days | |||
Single-tenant Net Lease Income Properties Acquired in 2019 | ||||
INCOME PROPERTY PORTFOLIO | ||||
Number of real estate properties | property | 5 | |||
Purchase price | $ 26,800 | |||
Acquired properties, cost | 27,000 | |||
Initial cost of land | 10,000 | |||
Initial cost of building and improvements | 13,800 | |||
Acquired in-place lease value, leasing fees, and above market lease value | 3,600 | |||
Acquired intangible liabilities for the below market lease | $ 400 | |||
Weighted average amortization period of intangible liabilities | 10 years 7 months 6 days | |||
Single-tenant Net Lease Income Properties Acquired in 2018 | ||||
INCOME PROPERTY PORTFOLIO | ||||
Number of real estate properties | property | 2 | |||
Acquired properties, cost | $ 5,100 | |||
Initial cost of land | 4,700 | |||
Acquired in-place lease value, leasing fees, and above market lease value | 600 | |||
Acquired intangible liabilities for the below market lease | $ 200 | |||
Weighted average amortization period of intangible liabilities | 18 years 7 months 6 days |
INCOME PROPERTY PORTFOLIO - P_2
INCOME PROPERTY PORTFOLIO - Properties Acquired - Tabular Disclosure (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)ft² | |
Single-tenant Net Lease Income Properties Acquired in 2020 | |
INCOME PROPERTY PORTFOLIO | |
Property square-feet | ft² | 786,898 |
Purchase price | $ | $ 116,633 |
Single-tenant Net Lease Income Properties Acquired in 2020 | Weighted Average | |
INCOME PROPERTY PORTFOLIO | |
Remaining lease term at acquisition | 10 years 7 months 6 days |
Single-tenant Net Lease Income Property, 7-Eleven, Austin, Texas | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Jan. 13, 2020 |
Property square-feet | ft² | 6,400 |
Purchase price | $ | $ 5,762 |
Remaining lease term at acquisition | 15 years |
Single-tenant Net Lease Income Property, 7-Eleven, Georgetown, Texas | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Jan. 13, 2020 |
Property square-feet | ft² | 7,726 |
Purchase price | $ | $ 4,301 |
Remaining lease term at acquisition | 15 years |
Single-tenant Net Lease Income Property, Conn's HomePlus, Hurst, Texas | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Jan. 10, 2020 |
Property square-feet | ft² | 37,957 |
Purchase price | $ | $ 6,100 |
Remaining lease term at acquisition | 11 years 7 months 6 days |
Single-tenant Net Lease Income Property, Lehigh Gas Wholesale Services, Inc, Highland Heights, Kentucky | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Feb. 3, 2020 |
Property square-feet | ft² | 2,578 |
Purchase price | $ | $ 4,250 |
Remaining lease term at acquisition | 10 years 9 months 18 days |
Single-tenant Net Lease Income Property, American Multi-Cinema, Inc, Tyngsborough, Massachusetts | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Feb. 19, 2020 |
Property square-feet | ft² | 39,474 |
Purchase price | $ | $ 7,055 |
Remaining lease term at acquisition | 10 years 1 month 6 days |
Single-tenant Net Lease Income Property, Hobby Lobby, Tulsa, Oklahoma | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Feb. 28, 2020 |
Property square-feet | ft² | 84,180 |
Purchase price | $ | $ 12,486 |
Remaining lease term at acquisition | 10 years 9 months 18 days |
Single-tenant Net Lease Income Property, Long John Silver's, Tulsa, Oklahoma | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Feb. 28, 2020 |
Property square-feet | ft² | 3,000 |
Purchase price | $ | $ 264 |
Single-tenant Net Lease Income Property, Old Time Pottery, Orange Park, Florida | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Feb. 28, 2020 |
Property square-feet | ft² | 84,180 |
Purchase price | $ | $ 6,312 |
Remaining lease term at acquisition | 10 years 4 months 24 days |
Single-tenant Net Lease Income Property, Freddy's Frozen Custard, Orange Park, Florida | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Feb. 28, 2020 |
Property square-feet | ft² | 3,200 |
Purchase price | $ | $ 303 |
Remaining lease term at acquisition | 6 years 9 months 18 days |
Single-tenant Net Lease Income Property, Hobby Lobby, Arden, North Carolina | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Jun. 24, 2020 |
Property square-feet | ft² | 55,000 |
Purchase price | $ | $ 7,987 |
Remaining lease term at acquisition | 11 years 2 months 12 days |
Single-tenant Net Lease Income Property, Walmart, Howell, Michigan | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Jun. 30, 2020 |
Property square-feet | ft² | 214,172 |
Purchase price | $ | $ 20,590 |
Remaining lease term at acquisition | 6 years 7 months 6 days |
Single-tenant Net Lease Income Property, Advanced Auto Parts, Severn, Maryland | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 6,876 |
Purchase price | $ | $ 2,588 |
Remaining lease term at acquisition | 14 years 6 months |
Single-tenant Net Lease Income Property, Dollar General, Heuvelton, New York | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,342 |
Purchase price | $ | $ 1,462 |
Remaining lease term at acquisition | 12 years 1 month 6 days |
Single-tenant Net Lease Income Property, Dollar General, Winthrop, New York | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,167 |
Purchase price | $ | $ 1,589 |
Remaining lease term at acquisition | 11 years |
Single-tenant Net Lease Income Property, Dollar General, Salem, New York | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,199 |
Purchase price | $ | $ 1,485 |
Remaining lease term at acquisition | 13 years |
Single-tenant Net Lease Income Property, Dollar General, Harrisville, New York | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,309 |
Purchase price | $ | $ 1,466 |
Remaining lease term at acquisition | 13 years 3 months 18 days |
Single-tenant Net Lease Income Property, Dollar General, Newtonsville, Ohio | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,290 |
Purchase price | $ | $ 1,164 |
Remaining lease term at acquisition | 9 years 8 months 12 days |
Single-tenant Net Lease Income Property, Dollar General, Hammond, New York | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,219 |
Purchase price | $ | $ 1,384 |
Remaining lease term at acquisition | 12 years 3 months 18 days |
Single-tenant Net Lease Income Property, Dollar General, Barker, New York | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,275 |
Purchase price | $ | $ 1,439 |
Remaining lease term at acquisition | 13 years 2 months 12 days |
Single-tenant Net Lease Income Property, Dollar General, Chazy, New York | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 14, 2020 |
Property square-feet | ft² | 9,277 |
Purchase price | $ | $ 1,673 |
Remaining lease term at acquisition | 11 years |
Single-tenant Net Lease Income Property, Dollar General, Milford, Maine | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 21, 2020 |
Property square-feet | ft² | 9,128 |
Purchase price | $ | $ 1,606 |
Remaining lease term at acquisition | 13 years 1 month 6 days |
Single-tenant Net Lease Income Property, Dollar General, Limestone, Maine | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 21, 2020 |
Property square-feet | ft² | 9,167 |
Purchase price | $ | $ 1,456 |
Remaining lease term at acquisition | 13 years 1 month 6 days |
Single-tenant Net Lease Income Property, Dollar General, Bingham, Maine | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 21, 2020 |
Property square-feet | ft² | 9,345 |
Purchase price | $ | $ 1,522 |
Remaining lease term at acquisition | 13 years 1 month 6 days |
Single-tenant Net Lease Income Property, Dollar General, Willis, Texas | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 23, 2020 |
Property square-feet | ft² | 9,138 |
Purchase price | $ | $ 1,774 |
Remaining lease term at acquisition | 14 years 10 months 24 days |
Single-tenant Net Lease Income Property, Dollar General, Somerville, Texas | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 23, 2020 |
Property square-feet | ft² | 9,252 |
Purchase price | $ | $ 1,472 |
Remaining lease term at acquisition | 14 years 9 months 18 days |
Single-tenant Net Lease Income Property, Dollar General, Odessa, Texas | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Sep. 30, 2020 |
Property square-feet | ft² | 9,127 |
Purchase price | $ | $ 1,792 |
Remaining lease term at acquisition | 14 years 9 months 18 days |
Single-tenant Net Lease Income Property, Dollar General, Kermit, Texas | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Nov. 9, 2020 |
Property square-feet | ft² | 10,920 |
Purchase price | $ | $ 1,941 |
Remaining lease term at acquisition | 14 years 9 months 18 days |
Single-tenant Net Lease Income Property, Kohl’s, Glendale, Arizona | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Dec. 11, 2020 |
Property square-feet | ft² | 14,125 |
Purchase price | $ | $ 11,600 |
Remaining lease term at acquisition | 9 years 1 month 6 days |
Single-tenant Net Lease Income Property, Walgreens, Tacoma, Washington | |
INCOME PROPERTY PORTFOLIO | |
Date of acquisition | Dec. 18, 2020 |
Property square-feet | ft² | 87,875 |
Purchase price | $ | $ 3,810 |
Remaining lease term at acquisition | 9 years 7 months 6 days |
INCOME PROPERTY PORTFOLIO - P_3
INCOME PROPERTY PORTFOLIO - Properties Acquired - Business Combination - General Information (Details) | Nov. 26, 2019USD ($)property$ / sharesshares | Dec. 31, 2020property |
Consideration transferred | ||
Number of real estate properties | property | 48 | |
Predecessor properties | ||
Date of acquisition | ||
Effective date of acquisition | Nov. 26, 2019 | |
Consideration transferred | ||
Cash consideration paid for initial portfolio | $ | $ 125,918,773 | |
OP Unit consideration paid for initial portfolio | $ | $ 23,253,230 | |
Number of real estate properties | property | 20 | |
OP Units issued (in shares) | shares | 1,223,854 | |
Public offering price per share (in dollars per share) | $ / shares | $ 19 | |
Predecessor properties, acquired | ||
Consideration transferred | ||
Cash consideration paid for initial portfolio | $ | $ 125,900,000 | |
Number of real estate properties | property | 15 | |
Predecessor properties, contributed | ||
Consideration transferred | ||
OP Unit consideration paid for initial portfolio | $ | $ 23,300,000 | |
Number of real estate properties | property | 5 | |
OP Units issued (in shares) | shares | 1,223,854 | |
Public offering price per share (in dollars per share) | $ / shares | $ 19 |
INCOME PROPERTY PORTFOLIO - P_4
INCOME PROPERTY PORTFOLIO - Properties Acquired - Business Combination - Units Issued (Details) - Predecessor properties | Nov. 26, 2019USD ($)$ / sharesshares |
Purchase consideration | |
Total OP Units Issued (number of units) (in shares) | shares | 1,223,854 |
Company's IPO Price per Share (in dollars per share) | $ / shares | $ 19 |
Total OP Unit Consideration Paid for Initial Portfolio | $ | $ 23,253,230 |
INCOME PROPERTY PORTFOLIO - P_5
INCOME PROPERTY PORTFOLIO - Properties Acquired - Business Combination - Consideration (Details) - Predecessor properties | Nov. 26, 2019USD ($) |
Consideration transferred | |
Total OP Unit Consideration Paid for Initial Portfolio | $ 23,253,230 |
Total Cash Consideration Paid for Initial Portfolio | 125,918,773 |
Total Purchase Consideration Paid for Initial Portfolio | $ 149,172,003 |
INCOME PROPERTY PORTFOLIO - P_6
INCOME PROPERTY PORTFOLIO - Properties Acquired - Business Combination - Estimated Fair Value of Net Assets Acquired (Details) - Predecessor properties | Nov. 26, 2019USD ($) |
Land, and Buildings and Improvements, at cost | |
Land, at cost | $ 54,386,511 |
Buildings and Improvements, at cost | 74,070,181 |
Intangible Lease Assets | |
Intangible Lease Assets | 22,648,727 |
Intangible Lease Liabilities | |
Intangible Lease Liabilities | (1,933,416) |
Estimated Fair Value of Net Assets Acquired | $ 149,172,003 |
INCOME PROPERTY PORTFOLIO - P_7
INCOME PROPERTY PORTFOLIO - Properties Acquired - Business Combination - Pro Forma - General Information (Details) - Predecessor properties - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unaudited Pro Forma Information | ||
Pro Forma Depreciation | $ 4,300 | $ 4,300 |
Pro Forma Amortization of Intangible Lease Assets and Lease Liabilities | 2,700 | 2,700 |
Pro Forma Elimination of Acquisition Related Costs | $ 216 | $ 216 |
INCOME PROPERTY PORTFOLIO - P_8
INCOME PROPERTY PORTFOLIO - Properties Acquired - Business Combination - Pro Forma - Tabular Disclosure (Details) - Predecessor properties - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unaudited Pro Forma Information | ||
Unaudited Pro Forma Total Revenues | $ 13,963,945 | $ 14,023,566 |
Unaudited Pro Forma Net Income Attributable to Alpine Income Property Trust, Inc. | $ 759,512 | $ 723,274 |
Unaudited Pro Forma Basic Net Income per Share (in dollars per share) | $ 0.10 | $ 0.09 |
Unaudited Pro Forma Diluted Net Income per Share (in dollars per share) | $ 0.08 | $ 0.08 |
Unaudited Pro Forma Funds from Operations | $ 7,825,645 | $ 7,789,407 |
Unaudited Pro Form Adjusted Funds from Operations | $ 7,437,723 | $ 7,345,549 |
INCOME PROPERTY PORTFOLIO - P_9
INCOME PROPERTY PORTFOLIO - Properties Sold (Details) $ / shares in Units, $ in Thousands | Sep. 25, 2020USD ($)property$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019property | Nov. 25, 2019property | Dec. 31, 2018property |
Income Properties Sold | |||||
Gain on sale of assets | $ 287 | ||||
Number of properties sold | property | 1 | 0 | 0 | 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Single-tenant Net Lease Income Property, Outback Steakhouse, Charlottesville, Virginia | |||||
Income Properties Sold | |||||
Sales price | $ 5,100 | ||||
Percentage leased (as a percent) | 5.80% | ||||
Gain on sale of assets | $ 300 | ||||
Gain on sale of assets per diluted share | $ / shares | $ 0.03 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Carrying value and estimated fair value of financial instruments | ||
Cash and Cash Equivalents | $ 1,894 | $ 12,342 |
Carrying Value | Significant Other Observable Inputs (Level 2) | ||
Carrying value and estimated fair value of financial instruments | ||
Long-Term Debt | 106,159 | |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Carrying value and estimated fair value of financial instruments | ||
Cash and Cash Equivalents | 1,894 | $ 12,342 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||
Carrying value and estimated fair value of financial instruments | ||
Long-Term Debt | $ 106,159 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Measured on a Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ (481) | $ 0 |
Derivatives liabilities | $ 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ (481) |
INTANGIBLE ASSETS AND LIABILI_3
INTANGIBLE ASSETS AND LIABILITIES - Components (Details) $ in Thousands | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Nov. 26, 2019property |
Intangible Assets And Liabilities [Line Items] | |||
Sub-total Intangible Lease Assets | $ 41,140 | $ 22,649 | |
Accumulated Amortization | (4,259) | (291) | |
Sub-total Intangible Lease Assets—Net | 36,881 | 22,358 | |
Intangible Lease Liabilities | |||
Value of Below Market In-Place Leases | (3,674) | (1,933) | |
Sub-total Intangible Lease Liabilities | (3,674) | (1,933) | |
Accumulated Amortization | 375 | 25 | |
Sub-total Intangible Lease Liabilities —Net | (3,299) | (1,908) | |
Total Intangible Assets and Liabilities—Net | $ 33,582 | 20,450 | |
INCOME PROPERTY PORTFOLIO | |||
Number of Real Estate Properties | property | 48 | ||
Predecessor properties | |||
INCOME PROPERTY PORTFOLIO | |||
Number of Real Estate Properties | property | 20 | ||
Value of In-Place Leases | |||
Intangible Assets And Liabilities [Line Items] | |||
Sub-total Intangible Lease Assets | $ 27,494 | 14,479 | |
Value of Above Market In-Place Leases | |||
Intangible Assets And Liabilities [Line Items] | |||
Sub-total Intangible Lease Assets | 2,187 | 1,626 | |
Value of Intangible Leasing Costs | |||
Intangible Assets And Liabilities [Line Items] | |||
Sub-total Intangible Lease Assets | $ 11,459 | $ 6,544 |
INTANGIBLE ASSETS AND LIABILI_4
INTANGIBLE ASSETS AND LIABILITIES - Amortization (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
INTANGIBLE ASSETS AND LIABILITIES | ||||
Depreciation and Amortization Expense | $ 271 | $ 1,548 | $ 3,758 | $ 1,544 |
Increase to Income Properties Revenue | (5) | (234) | (108) | (229) |
Net Amortization of Intangible Assets and Liabilities | $ 266 | $ 1,314 | $ 3,650 | $ 1,315 |
INTANGIBLE ASSETS AND LIABILI_5
INTANGIBLE ASSETS AND LIABILITIES - Summary of Estimated Amortization and Accretion (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Future Amortization Amount | ||
Sub-total Intangible Lease Assets—Net | $ 36,881 | $ 22,358 |
Future Accretion to Income Property Revenue | ||
Sub-total Intangible Lease Liabilities —Net | (3,299) | $ (1,908) |
Net Future Amortization of Intangible Assets and Liabilities | ||
2021 | 4,533 | |
2022 | 4,533 | |
2023 | 4,532 | |
2024 | 4,316 | |
2025 | 4,074 | |
2026 and thereafter | 11,594 | |
Total | $ 33,582 | |
Amount allocated of total acquisition cost | ||
Weighted average amortization period of intangible assets | 9 years 1 month 6 days | |
Future Amortization | ||
Future Amortization Amount | ||
2021 | $ 4,695 | |
2022 | 4,695 | |
2023 | 4,694 | |
2024 | 4,467 | |
2025 | 4,224 | |
2026 and thereafter | 12,175 | |
Sub-total Intangible Lease Assets—Net | 34,950 | |
Future Accretion to Income Property Revenue | ||
Future Accretion to Income Property Revenue | ||
2021 | (162) | |
2022 | (162) | |
2023 | (162) | |
2024 | (151) | |
2025 | (150) | |
2026 and thereafter | (581) | |
Sub-total Intangible Lease Liabilities —Net | $ (1,368) |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER ASSETS | |||
Tenant Receivables | $ 67 | ||
Accrued Unbilled Tenant Receivables | 216 | ||
Prepaid Insurance | 606 | $ 499 | |
Deposits on Acquisitions | 100 | 200 | |
Prepaid and Deposits - Other | 442 | 89 | |
Total Other Assets | 1,431 | 788 | |
Allowance for doubtful accounts | $ 100 | $ 0 | $ 0 |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)item$ / shares |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | ||
Accounts Payable | $ 450 | $ 463 |
Accrued Expenses | 474 | |
Due to CTO | 579 | 381 |
Dividend Payable | 100 | |
Accrual for Tenant Improvement | 628 | |
Interest Rate Swap | 481 | |
Total Accounts Payable, Accrued Expenses, and Other Liabilities | $ 1,984 | 1,472 |
Dividends declared and payable | $ 100 | |
Dividend declared and payable (in dollars per share) | $ / shares | $ 0.058 | |
Number of OP units due to Consolidated Tomoka Land Co | item | 1,223,854 |
LONG-TERM DEBT - Outstanding In
LONG-TERM DEBT - Outstanding Indebtedness (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Dec. 31, 2020 | |
Long-term debt | ||
Total Debt | $ 106,809 | |
Stated Interest Rate (as a percent) | 1.71% | |
LIBOR | Interest Rate Swap | ||
Long-term debt | ||
Margin added to variable rate basis (as a percent) | 0.48% | |
Stated Interest Rate (as a percent) | 0.48% | |
Credit Facility | ||
Long-term debt | ||
Total Debt | $ 106,809 | |
Interest rate swap | $ 50,000 | |
Credit Facility | LIBOR | Minimum | ||
Long-term debt | ||
Margin added to variable rate basis (as a percent) | 1.35% | |
Credit Facility | LIBOR | Maximum | ||
Long-term debt | ||
Margin added to variable rate basis (as a percent) | 1.95% |
LONG-TERM DEBT - Credit Facilit
LONG-TERM DEBT - Credit Facility (Details) $ in Thousands | Oct. 16, 2020USD ($)Lender | Nov. 26, 2019USD ($) | Dec. 31, 2020USD ($) |
Long-term debt | |||
Amount outstanding | $ 150,000 | ||
Long-term Debt. | 106,159 | ||
Credit Facility | |||
Long-term debt | |||
Maximum borrowing capacity | $ 150,000 | $ 100,000 | |
Credit facility term | 4 years | ||
Extension term | 1 year | ||
Additional borrowing capacity | $ 50,000 | ||
Number Of Lenders | Lender | 2 | ||
Maximum borrowing capacity including accordion feature | $ 200,000 | ||
Long-term Debt. | $ 106,809 | ||
Credit Facility | LIBOR | Minimum | |||
Long-term debt | |||
Margin added to variable rate basis (as a percent) | 1.35% | ||
Marginal rate of fee on unused credit limit | 0.15% | ||
Credit Facility | LIBOR | Maximum | |||
Long-term debt | |||
Margin added to variable rate basis (as a percent) | 1.95% | ||
Marginal rate of fee on unused credit limit | 0.25% |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Apr. 30, 2020 |
Long-term debt | ||
Loan Costs, net of accumulated amortization | $ (650) | |
Long-Term Debt | 106,159 | |
Credit Facility | ||
Long-term debt | ||
Gross Long-term debt | $ 50,000 | |
Long-Term Debt | $ 106,809 |
LONG-TERM DEBT - Payments Appli
LONG-TERM DEBT - Payments Applicable to Reduction of Principal (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Payments applicable to reduction of principal amounts | |
2023 | $ 106,809 |
Total Long-Term Debt - Face Value | $ 106,809 |
LONG-TERM DEBT - Debt and finan
LONG-TERM DEBT - Debt and financing costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
LONG-TERM DEBT | ||
Long term debt, deferred financing costs | $ 0.9 | |
Net of accumulated amortization | $ 0.2 | |
Debt outstanding | $ 0 |
LONG-TERM DEBT - Interest Expen
LONG-TERM DEBT - Interest Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020 | |
LONG-TERM DEBT | ||
Interest Expense | $ 25 | $ 1,276 |
Amortization of Loan Costs | 16 | 188 |
Total Interest Expense | $ 41 | 1,464 |
Total Interest Paid | $ 1,230 |
INTEREST RATE SWAP (Details)
INTEREST RATE SWAP (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Dec. 31, 2020 | |
INTEREST RATE SWAP | ||
Outstanding on credit facility | $ 150 | |
Interest Rate Swap | ||
INTEREST RATE SWAP | ||
Loss of interest rate swap | $ 0.5 | |
Credit Facility | ||
INTEREST RATE SWAP | ||
Interest rate swap | $ 50 | |
Notional amount | 50 | |
Revolving credit facility | ||
INTEREST RATE SWAP | ||
Outstanding on credit facility | $ 50 | |
Revolving credit facility | Interest Rate Swap | ||
INTEREST RATE SWAP | ||
Effective percentage of interest rate swaps percentage | 100.00% | |
LIBOR | Interest Rate Swap | ||
INTEREST RATE SWAP | ||
Spread fixed rate | 0.48% |
EQUITY - Shelf Registration (De
EQUITY - Shelf Registration (Details) - USD ($) $ in Millions | Dec. 14, 2020 | Dec. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||
Number of shares sold | 7,458,755 | 7,902,737 | ||
ATM Program | ||||
Class of Stock [Line Items] | ||||
Aggregate offer price | $ 100 | |||
Number of shares sold | 0 | |||
Maximum | ||||
Class of Stock [Line Items] | ||||
Aggregate offer price | $ 350 |
EQUITY - Additional Information
EQUITY - Additional Information (Details) - $ / shares | 1 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2020 | |
Dividends | ||
Minimum taxable income excluding capital gain to be distributed to be taxed as a REIT | 90.00% | |
Minimum taxable income including capital gain to be distributed to be taxed as a REIT | 100.00% | |
Dividends on common stock and OP Units declared | $ 0.058 | $ 0.82 |
Dividends on common stock and OP Units paid | $ 0.058 | $ 0.82 |
COMMON STOCK AND EARNINGS PER_3
COMMON STOCK AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Income Available to Common Shareholders: | ||||
Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. | $ (39) | $ 3,631 | $ 985 | $ 4,015 |
Net Income Attributable to Alpine Income Property Trust, Inc. - Basic | (39) | 3,631 | 985 | 4,015 |
Net Income Attributable to Alpine Income Property Trust, Inc. - Diluted | $ (39) | $ 3,631 | $ 985 | $ 4,015 |
Weighted Average Number of Common Shares Outstanding (in shares) | 7,902,737 | 7,588,349 | ||
Common Shares Applicable to Stock | ||||
Common Shares Applicable to OP Units using Treasury Stock Method (in shares) | 1,223,854 | 1,223,854 | ||
Total Shares Applicable to Diluted Earnings Per Share (in shares) | 9,126,591 | 8,812,203 | ||
Net Income (loss) Attributable to Alpine Income Property Trust, Inc. | ||||
Basic (in dollars per share) | $ 0.13 | |||
Diluted (in dollars per share) | $ 0.11 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | |
SHARE REPURCHASES [Line Items] | |||
Stock repurchased amount | $ 5,014 | ||
$5 Million Repurchase Program | |||
SHARE REPURCHASES [Line Items] | |||
Stock repurchase program authorized amount | $ 5,000 | $ 5,000 | |
Shares repurchased (in shares) | 456,237 | ||
Stock repurchased amount | $ 5,000 | ||
Average price per share of stock repurchased | $ 11.02 |
STOCK-BASED COMPENSATION - IPO
STOCK-BASED COMPENSATION - IPO (Details) - Restricted shares - USD ($) $ in Millions | Dec. 31, 2020 | Nov. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 8,000 | |||
Non employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 2,000 | 8,000 | 0 | |
Vested (in shares) | 5,336 | 0 | 2,664 | |
Aggregate grant date fair value | $ 0.2 | |||
Vesting period | 3 years |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
STOCK-BASED COMPENSATION | ||||
Stock compensation expense | $ 4 | $ 509 | $ 268 | $ 232 |
General and Administrative Expense [Member] | ||||
STOCK-BASED COMPENSATION | ||||
Stock compensation expense | $ 100 | $ 100 |
STOCK-BASED COMPENSATION - Non-
STOCK-BASED COMPENSATION - Non-Vested Restricted Shares (Details) - $ / shares | Dec. 31, 2020 | Nov. 26, 2019 | Dec. 31, 2019 | Dec. 31, 2020 |
Non employee | ||||
Weighted Average Fair Value | ||||
Outstanding (in dollars per share) | $ 0 | $ 0 | $ 18.80 | |
Granted (in dollars per share) | 18.80 | 0 | ||
Vested (in dollars per share) | 0 | 18.80 | ||
Expired (in dollars per share) | 0 | 0 | ||
Forfeited (in dollars per share) | 0 | 0 | ||
Outstanding (in dollars per share) | $ 18.80 | $ 18.80 | $ 18.80 | |
Restricted shares | ||||
Shares | ||||
Granted (in shares) | 8,000 | |||
Restricted shares | Non employee | ||||
Shares | ||||
Outstanding (in shares) | 0 | 0 | 8,000 | |
Granted (in shares) | 2,000 | 8,000 | 0 | |
Vested (in shares) | (5,336) | 0 | (2,664) | |
Expired (in shares) | 0 | 0 | ||
Forfeited (in shares) | 0 | 0 | ||
Outstanding (in shares) | 5,336 | 8,000 | 5,336 |
STOCK-BASED COMPENSATION - Unre
STOCK-BASED COMPENSATION - Unrecognized Compensation (Details) - Non employee - Restricted shares $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 0.1 |
Vesting period | 3 years |
Compensation cost to be recognized over a remaining period | 1 year 10 months 24 days |
STOCK-BASED COMPENSATION - Gene
STOCK-BASED COMPENSATION - General Information (Details) $ in Thousands | Jan. 01, 2021shares | Oct. 01, 2020shares | Jul. 01, 2020shares | Apr. 01, 2020shares | Jan. 02, 2020shares | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)Dshares |
STOCK-BASED COMPENSATION | |||||||
Stock Issuance to Directors | $ 4 | $ 238 | |||||
Non employee | |||||||
STOCK-BASED COMPENSATION | |||||||
Stock Issuance to Directors | $ 100 | ||||||
Non employee | Restricted shares | |||||||
STOCK-BASED COMPENSATION | |||||||
Period for average closing price | D | 20 | ||||||
Stock Issuance to Directors | $ 200 | ||||||
Shares issued (in shares) | shares | 3,586 | 3,474 | 3,414 | 4,098 | 1,269 | 14,572 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 4 | $ 509 | $ 268 | $ 232 | ||
CTO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 509 | $ 232 | ||||
Director Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 4 | 51 | ||||
Director Retainers Paid in Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 50 | $ 20 | $ 217 |
RELATED PARTY MANAGEMENT COMP_3
RELATED PARTY MANAGEMENT COMPANY - General Information (Details) - USD ($) | Nov. 26, 2019 | Dec. 31, 2019 | Nov. 25, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||||||
Share issued | 421,053 | ||||||
Percentage of outstanding common stock | 22.30% | ||||||
Stock split ratio | 1 | ||||||
IPO | |||||||
Related Party Transaction [Line Items] | |||||||
Share issued | 7,500,000 | ||||||
CTO | |||||||
Related Party Transaction [Line Items] | |||||||
Stock Issuance to Directors | $ 8,000,000 | ||||||
Percentage of outstanding common stock | 22.30% | ||||||
Stock split ratio | 1 | ||||||
CTO | Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Quarterly base management fee (as a percent) | 0.375% | ||||||
Annual base management fee (as a percent) | 1.50% | ||||||
Cumulative annual hurdle rate (as a percent) | 8.00% | ||||||
Incentive fee | $ 0 | ||||||
Multiplying factor of outperformance amount with weighted average shares (as a percent) | 15.00% | ||||||
Management agreement renewal term | 1 year | ||||||
Voting rights (as a percent) | 66.67% | ||||||
Notice period | 30 days | ||||||
Payment of management fees | $ 300,000 | $ 2,600,000 | |||||
Payment of dividend | $ 100,000 | $ 1,700,000 | |||||
Payment of managers dividend and management fee | $ 0 | $ 0 | $ 0 | $ 0 |
RELATED PARTY MANAGEMENT COMP_4
RELATED PARTY MANAGEMENT COMPANY - Due from the Company to CTO (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
RELATED PARTY MANAGEMENT COMPANY | ||
Management Fee due to CTO | $ 631 | $ 254 |
Dividend Payable on OP Units | 71 | |
Other | (52) | 56 |
Total | $ 579 | $ 381 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Georgetown, Texas $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) |
Commitments | ||
Funding for tenant improvements | $ 0.9 | $ 0.9 |
Expected tenant improvement expenses | 0.1 | 0.1 |
Refund of tenant improvements | $ 0.4 | $ 0.4 |
SUBSEQUENT EVENTS - COVID-19 Pa
SUBSEQUENT EVENTS - COVID-19 Pandemic (Details) | Feb. 19, 2021 | Jan. 01, 2021 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Percentage of contractual base rent received (as a percent) | 100.00% | 100.00% |
SUBSEQUENT EVENTS - Income Prop
SUBSEQUENT EVENTS - Income Property Acquisitions (Details) $ in Millions | Jan. 25, 2021USD ($)property | Dec. 31, 2020property |
SUBSEQUENT EVENTS | ||
Number of real estate properties | 48 | |
Subsequent Event | Single-tenant Net Lease Income Properties, Dollar General, Cut and Shoot, Texas, Del Rio, Texas, and Seguin, Texas | ||
SUBSEQUENT EVENTS | ||
Date of acquisition | Jan. 25, 2021 | |
Number of real estate properties | 3 | |
Purchase price | $ | $ 4.4 | |
Weighted-average going-in cash cap rate (as a percent) | 6.50% | |
Subsequent Event | Single-tenant Net Lease Income Properties, Dollar General, Cut and Shoot, Texas, Del Rio, Texas, and Seguin, Texas | Weighted Average | ||
SUBSEQUENT EVENTS | ||
Remaining lease term at acquisition | 14 years 3 months 18 days |
SUBSEQUENT EVENTS - Dividend (D
SUBSEQUENT EVENTS - Dividend (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2019 | |
SUBSEQUENT EVENTS | ||
Dividend declared and payable (in dollars per share) | $ 0.058 | |
Subsequent Event | ||
SUBSEQUENT EVENTS | ||
Dividend declared and payable (in dollars per share) | $ 0.24 | |
Percentage of increase in cash dividend | 9.10% | |
Dividend payable, date payable | Mar. 31, 2021 | |
Dividend payable, record date | Mar. 22, 2021 |