Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 11, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39143 | |
Entity Registrant Name | ALPINE INCOME PROPERTY TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 84-2769895 | |
Entity Address, Address Line One | 369 N. New York Avenue | |
Entity Address, Address Line Two | Suite 201 | |
Entity Address, City or Town | Winter Park | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32789 | |
City Area Code | 386 | |
Local Phone Number | 274-2202 | |
Title of 12(b) Security | COMMON STOCK, $0.01 PAR VALUE | |
Trading Symbol | PINE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,623,239 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001786117 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Real Estate: | ||
Land, at Cost | $ 150,327 | $ 149,314 |
Building and Improvements, at Cost | 329,118 | 328,993 |
Total Real Estate, at Cost | 479,445 | 478,307 |
Less, Accumulated Depreciation | (38,931) | (34,714) |
Real Estate-Net | 440,514 | 443,593 |
Assets Held for Sale | 4,410 | 4,410 |
Commercial Loans and Investments | 38,046 | 35,080 |
Cash and Cash Equivalents | 5,145 | 4,019 |
Restricted Cash | 2,833 | 9,712 |
Intangible Lease Assets-Net | 47,019 | 49,292 |
Straight-Line Rent Adjustment | 1,473 | 1,409 |
Other Assets | 19,581 | 17,045 |
Total Assets | 559,021 | 564,560 |
Liabilities: | ||
Accounts Payable, Accrued Expenses, and Other Liabilities | 6,108 | 5,736 |
Prepaid Rent and Deferred Revenue | 3,112 | 2,627 |
Intangible Lease Liabilities-Net | 4,689 | 4,907 |
Long-Term Debt | 272,256 | 275,677 |
Total Liabilities | 286,165 | 288,947 |
Commitments and Contingencies-See Note 19 | ||
Equity: | ||
Preferred Stock, $0.01 par value per share, 100 million shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023 | ||
Common Stock, $0.01 par value per share, 500 million shares authorized, 13,618,108 shares issued and outstanding as of March 31, 2024 and 13,659,207 shares issued and outstanding as of December 31, 2023 | 136 | 137 |
Additional Paid-in Capital | 242,944 | 243,690 |
Dividends in Excess of Net Income | (6,364) | (2,359) |
Accumulated Other Comprehensive Income | 11,436 | 9,275 |
Stockholders' Equity | 248,152 | 250,743 |
Noncontrolling Interest | 24,704 | 24,870 |
Total Equity | 272,856 | 275,613 |
Total Liabilities and Equity | $ 559,021 | $ 564,560 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 13,618,108 | 13,659,207 |
Common Stock, shares outstanding | 13,618,108 | 13,659,207 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Lease Income | $ 11,464 | $ 11,156 |
Interest Income from Commercial Loans and Investments | 903 | |
Other Revenue | 99 | |
Total Revenues | 12,466 | 11,156 |
Operating Expenses: | ||
Real Estate Expenses | 1,928 | 1,434 |
General and Administrative Expenses | 1,542 | 1,515 |
Provision for Impairment | 31 | |
Depreciation and Amortization | 6,382 | 6,335 |
Total Operating Expenses | 9,883 | 9,284 |
Gain on Disposition of Assets | 4,453 | |
Gain on Extinguishment of Debt | 23 | |
Net Income From Operations | 2,583 | 6,348 |
Investment and Other Income | 69 | 10 |
Interest Expense | (2,935) | (2,613) |
Net Income (Loss) | (283) | 3,745 |
Less: Net (Income) Loss Attributable to Noncontrolling Interest | 23 | (406) |
Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. | $ (260) | $ 3,339 |
Per Common Share Data: | ||
Basic (in dollars per share) | $ (0.02) | $ 0.24 |
Diluted (in dollars per share) | $ (0.02) | $ 0.21 |
Weighted Average Number of Common Shares: | ||
Basic (in shares) | 13,621,208 | 14,000,553 |
Diluted (in shares) | 14,845,062 | 15,704,047 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net Income (Loss) | $ (283) | $ 3,745 |
Other Comprehensive Income (Loss) | ||
Cash Flow Hedging Derivative - Interest Rate Swaps | 2,355 | (2,766) |
Total Other Comprehensive Income (Loss) | 2,355 | (2,766) |
Total Comprehensive Income | 2,072 | 979 |
Less: Comprehensive Income Attributable to Noncontrolling Interest | ||
Net (Income) Loss Attributable to Noncontrolling Interest | 23 | (406) |
Other Comprehensive Income Attributable to Noncontrolling Interest | (194) | |
Comprehensive Income Attributable to Noncontrolling Interest | (171) | (406) |
Comprehensive Income Attributable to Alpine Income Property Trust, Inc. | $ 1,901 | $ 573 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Stockholders' Equity | Common Stock at Par | Additional Paid-in Capital | Dividends in Excess of Net Income | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total |
Balance at Dec. 31, 2022 | $ 261,618 | $ 134 | $ 236,841 | $ 10,042 | $ 14,601 | $ 33,757 | $ 295,375 |
Increase (decrease) in shareholders' equity | |||||||
Net Income (Loss) | 3,339 | 3,339 | 406 | 3,745 | |||
Stock Issuance to Directors | 66 | 66 | 66 | ||||
Stock Issuance, Net of Equity Issuance Costs | 12,388 | 7 | 12,381 | 12,388 | |||
Cash Dividend | (3,867) | (3,867) | (469) | (4,336) | |||
Other Comprehensive Income ( Loss) | (2,766) | (2,766) | (2,766) | ||||
Balance at Mar. 31, 2023 | 270,778 | 141 | 249,288 | 9,514 | 11,835 | 33,694 | 304,472 |
Balance at Dec. 31, 2022 | 261,618 | 134 | 236,841 | 10,042 | 14,601 | 33,757 | 295,375 |
Balance at Dec. 31, 2023 | 250,743 | 137 | 243,690 | (2,359) | 9,275 | 24,870 | 275,613 |
Increase (decrease) in shareholders' equity | |||||||
Net Income (Loss) | (260) | (260) | (23) | (283) | |||
Stock Repurchase | (775) | (1) | (774) | (775) | |||
Stock Issuance to Directors | 79 | 79 | 79 | ||||
Stock Issuance, Net of Equity Issuance Costs | (51) | (51) | (51) | ||||
Cash Dividend | (3,745) | (3,745) | (337) | (4,082) | |||
Other Comprehensive Income ( Loss) | 2,161 | 2,161 | 194 | 2,355 | |||
Balance at Mar. 31, 2024 | $ 248,152 | $ 136 | $ 242,944 | $ (6,364) | $ 11,436 | $ 24,704 | $ 272,856 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Common Stock | ||
Cash Dividends (in dollars per share) | $ 0.275 | $ 0.275 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flow From Operating Activities: | ||
Net Income (Loss) | $ (283) | $ 3,745 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 6,382 | 6,335 |
Amortization of Intangible Lease Assets and Liabilities to Lease Income | (110) | (87) |
Amortization of Deferred Financing Costs to Interest Expense | 180 | 174 |
Accretion of Commercial Loans and Investments Origination Fees | (29) | |
Gain on Disposition of Assets | (4,453) | |
Provision for Impairment | 31 | |
Non-Cash Compensation | 79 | 80 |
Decrease (Increase) in Assets: | ||
Straight-Line Rent Adjustment | (65) | (165) |
Other Assets | (416) | (953) |
Increase (Decrease) in Liabilities: | ||
Accounts Payable, Accrued Expenses, and Other Liabilities | 506 | 673 |
Prepaid Rent and Deferred Revenue | 485 | 28 |
Net Cash Provided By Operating Activities | 6,760 | 5,377 |
Cash Flow From Investing Activities: | ||
Acquisition of Real Estate, Including Capitalized Expenditures | (1,138) | (102) |
Proceeds from Disposition of Assets | 55,452 | |
Acquisition of Commercial Loans and Investments | (3,597) | |
Principal Payments Received on Commercial Loan Investments | 630 | |
Net Cash Provided By (Used In) Investing Activities | (4,105) | 55,350 |
Cash Flow from Financing Activities: | ||
Proceeds from Long-Term Debt | 6,000 | 1,250 |
Payments on Long-Term Debt | (9,500) | (19,500) |
Cash Paid for Loan Fees | (14) | |
Repurchase of Common Stock | (775) | |
Proceeds From Stock Issuance, Net | (51) | 12,388 |
Dividends Paid | (4,082) | (4,336) |
Net Cash Used In Financing Activities | (8,408) | (10,212) |
Net Increase (Decrease) in Cash and Cash Equivalents | (5,753) | 50,515 |
Cash and Cash Equivalents and Restricted Cash, Beginning of Period | 13,731 | 13,044 |
Cash and Cash Equivalents and Restricted Cash, End of Period | 7,978 | 63,559 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash Paid for Interest | 2,787 | 2,544 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Unrealized Gain (Loss) on Cash Flow Hedge | $ 2,355 | $ (2,766) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent | Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Reconciliation of Cash to the Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Reconciliation of Cash to the Consolidated Balance Sheets: | ||||
Cash and Cash Equivalents | $ 5,145 | $ 4,019 | $ 4,290 | |
Restricted Cash | 2,833 | 9,712 | 59,269 | |
Total Cash | $ 7,978 | $ 13,731 | $ 63,559 | $ 13,044 |
BUSINESS AND ORGANIZATION
BUSINESS AND ORGANIZATION | 3 Months Ended |
Mar. 31, 2024 | |
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 investment trust (“REIT”) that owns and operates a high-quality portfolio of commercial net lease 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 138 net leased properties located in 35 states. The properties in our portfolio are primarily subject to long-term, net leases, which generally require the tenant to pay directly or reimburse us for property operating expenses such as real estate taxes, insurance, assessments and other governmental fees, utilities, repairs and maintenance and certain capital expenditures. The Company may also acquire or originate commercial loans and investments. Our investments in commercial loans are generally secured by real estate or the borrower’s pledge of its ownership interest in an entity that owns real estate. See Note 4, “Commercial Loans and Investments” for further disclosure related to the Company’s commercial loans and investments. The Company operates in two primary business segments: income properties and commercial loans and investments. 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 REIT and the sole member of our Manager (“CTO”). All of our executive officers also serve as executive officers of CTO, and one of our executive officers and directors, John P. Albright, also serves as an executive officer and director of 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”). 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 March 31, 2024, we have a total ownership interest in the Operating Partnership of 91.8% , with CTO holding, directly and indirectly, an 8.2% 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. Our Board of Directors (the “Board”) oversees our business and affairs. The Company has elected to be taxed as a REIT for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”). 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, determined without regard to the dividends paid deduction and excluding net capital gain, to its stockholders (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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION 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. SEGMENT REPORTING Financial Accounting Standards Board Accounting Standards Codification Segment Reporting 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 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 comprised of the properties in its portfolio, and are stated at cost, less accumulated depreciation and amortization. Such properties are depreciated on a straight-line basis over their estimated useful lives. Renewals and betterments are capitalized to the applicable 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 three months ended March 31, 2024 and March 31, 2023, was $4.2 million, and $4.0 million, respectively. LONG-LIVED ASSETS The Company follows FASB ASC Topic 360-10, Property, Plant, and Equipment, PURCHASE ACCOUNTING FOR ACQUISITIONS OF REAL ESTATE SUBJECT TO A LEASE Clarifying the Definition of a Business 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 management believes that it is likely that the tenant will renew the lease upon expiration, in which case the Company amortizes 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. ASSETS HELD FOR SALE Investments in real estate which are determined to be “held for sale” pursuant to FASB Topic 360-10, Property, Plant, and Equipment SALES OF REAL ESTATE When properties are disposed of, the related cost basis of the real estate, intangible lease assets, and intangible lease liabilities, net of accumulated depreciation and/or amortization, and any accrued straight-line rental income balance for the underlying operating leases are removed, and gains or losses from the dispositions are reflected in net income within gains on dispositions of assets. In accordance with the FASB guidance, gains or losses on sales of real estate are generally recognized using the full accrual method. PROPERTY LEASE REVENUE The rental arrangements associated with the Company’s 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 March 31, 2024 and December 31, 2023, the Company’s allowance for doubtful accounts totaled $0.2 million and $0.4 million, respectively. COMMERCIAL LOANS AND INVESTMENTS Investments in commercial loans and investments held for investment are recorded at historical cost, net of unaccreted origination costs and current expected credit losses (“CECL”) reserve. Pursuant to ASC 326, Financial Instruments - Credit Losses RECOGNITION OF INTEREST INCOME FROM COMMERCIAL LOANS AND INVESTMENTS Interest income on commercial loans and investments includes interest payments made by the borrower and the accretion of loan origination fees, offset by the amortization of loan costs, if any. Interest payments are accrued based on the actual coupon rate and the outstanding principal balance and purchase discounts and loan origination fees are accreted into income using the effective yield method, adjusted for prepayments. OPERATING LAND LEASE EXPENSE The Company is the lessee under operating land leases for certain of its properties, which leases are classified as operating leases pursuant to FASB ASC Topic 842, Leases 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 March 31, 2024 and December 31, 2023 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. RESTRICTED CASH Restricted cash totaled $2.8 million as of March 31, 2024, which is being held in interest, tax, insurance, and/or capital expenditure reserve accounts related to the Company’s commercial loans and investments. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY The Company accounts for its cash flow hedging derivatives in accordance with FASB ASC Topic 815-20, Derivatives and Hedging The Company documented the relationship between the hedging instruments and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transactions. At the hedges’ inception, the Company assessed whether the derivatives that are used in hedging the transactions are highly effective in offsetting changes in cash flows of the hedged items and will continue to do so on a quarterly basis. Changes in fair value of the hedging instruments that are highly effective and designated and qualified as cash-flow hedges are recorded in other comprehensive income and loss, until earnings are affected by the variability in cash flows of the designated hedged items (see Note 13, “Interest Rate Swaps”). FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, restricted cash, accounts receivable included in other assets, accounts payable, and accrued expenses and other liabilities at March 31, 2024 and December 31, 2023, approximate fair value because of the short maturity of these instruments. The carrying value of the Credit Facility, hereinafter defined, approximates current market rates for revolving credit arrangements with similar risks and maturities. The Company estimates the fair value of its commercial loans and investments and term loans based on incremental borrowing rates for similar types of borrowing arrangements with the same remaining maturity and on the discounted estimated future cash payments to be made for other debt. The discount rate used to calculate the fair value of debt approximates current lending rates for loans and assumes the debt is outstanding through maturity. Since such amounts are estimates that are based on limited available market information for similar transactions, which is a Level 2 non-recurring measurement, there can be no assurance that the disclosed value of any financial instrument could be realized by immediate settlement of the instrument. 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. CONCENTRATION OF CREDIT RISK Certain individual tenants in the Company’s portfolio of properties accounted for more than 10% of lease income from the Company’s income properties during the three months ended March 31, 2024 and 2023. During the three months ended March 31, 2024 and 2023, Walgreens accounted for 11% and 12% of total revenues, respectively. As of March 31, 2024 and December 31, 2023, 13%, 11%, and 11% of the Company’s real estate portfolio, based on square footage, was located in the states of Texas, New Jersey, and Michigan, respectively. RECLASSIFICATIONS Certain items in the prior period’s consolidated balance sheet and consolidated statement of operations have been reclassified to conform to the presentation for the three months ended March 31, 2024. Specifically, tax, insurance, and capital expenditure reserve accounts related to the Company’s commercial loans and investments were previously included within Prepaid Rent and Deferred Revenue and are now included within Accounts Payable, Accrued Expenses, and Other Liabilities on the accompanying consolidated balance sheets. Additionally, interest income earned on deposits at financial institutions was previously included within Lease Income and is now included within Investment and Other Income on the accompanying consolidated statement of operations. There was no impact to retained earnings as a result of the reclassifications. |
PROPERTY PORTFOLIO
PROPERTY PORTFOLIO | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY PORTFOLIO | |
PROPERTY PORTFOLIO | NOTE 3. PROPERTY PORTFOLIO As of March 31, 2024, the Company’s property portfolio consisted of 138 properties with total square footage of 3.8 million. Leasing revenue consists of long-term rental revenue from net leased commercial properties, which is recognized as earned, using the straight-line method over the life of each lease. Lease payments below include straight-line base rental revenue as well as the non-cash accretion of above and below market lease amortization. The variable lease payments are comprised of percentage rent payments and reimbursements from tenants for common area maintenance, insurance, real estate taxes, and other operating expenses. The components of leasing revenue are as follows (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Lease Income Lease Payments $ 9,862 $ 10,163 Variable Lease Payments 1,602 993 Total Lease Income $ 11,464 $ 11,156 Minimum Future Rental Receipts. Year Ending December 31, Amounts Remainder of 2024 $ 29,084 2025 37,830 2026 37,021 2027 33,353 2028 30,088 2029 25,817 2030 and Thereafter (Cumulative) 75,096 Total $ 268,289 2024 Activity. 2023 Activity. |
COMMERCIAL LOANS AND INVESTMENT
COMMERCIAL LOANS AND INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
COMMERCIAL LOANS AND INVESTMENTS | |
COMMERCIAL LOANS AND INVESTMENTS | NOTE 4. COMMERCIAL LOANS AND INVESTMENTS On January 30, 2024, the Company originated a construction loan secured by the property and improvements to be constructed thereon for six retail outparcels in Lawrenceville, Georgia for $7.2 million. The construction loan matures on January 30, 2026, bears a fixed interest rate of 11.25% and requires interest-only payments prior to maturity. Funding of the loan will occur as the borrower completes the underlying construction. As of March 31, 2024, the Company has disbursed $3.6 million to the borrower. On July 25, 2023, the Company originated a construction loan secured by the property and improvements to be constructed thereon for a 33-acre Wawa-anchored land development project in Greenwood, Indiana for $7.8 million. The construction loan matures on July 25, 2025, bears a fixed interest rate of 8.50% that increases to 9.25% on July 25, 2024, and requires interest-only payments prior to maturity. Funding of the loan will occur as the borrower completes the underlying construction. As of March 31, 2024, the Company has disbursed $7.1 million to the borrower. On October 30, 2023, the Company originated a construction loan secured by the property and improvements to be constructed thereon for a 5-acre land development project anchored by Wawa and McDonalds in Antioch, Tennessee for $6.8 million with the same borrower as the construction loan secured by the 33-acre Wawa-anchored land development project in Greenwood, Indiana. The construction loan matures on October 30, 2025, bears a fixed interest rate of 11.00% that decreases to 9.50% on October 30, 2024, and requires interest-only payments prior to maturity. Funding of the loan will occur as the borrower completes the underlying construction. As of March 31, 2024, the Company has disbursed $4.6 million to the borrower. On November 15, 2023, the Company originated a $24.0 million first mortgage secured by a portfolio of 41 assets and related improvements (the “Mortgage Note”). The Mortgage Note matures on November 15, 2026, has two one-year extension options, bears a fixed interest rate of 8.75% at the time of acquisition, will increase by 0.25% annually during the initial term, and requires interest-only payments prior to maturity. During the three months ended March 31, 2024, the Company received $0.6 million in principal repayments from the borrower. The Company’s commercial loans and investments were comprised of the following at March 31, 2024 (in thousands): Description Date of Investment Maturity Date Original Face Amount Current Face Amount Carrying Value Coupon Rate Construction Loan – Wawa Land Development – Greenwood, IN July 2023 July 2025 $ 7,800 $ 7,082 $ 7,057 8.50% Construction Loan – Wawa Land Development – Antioch, TN October 2023 October 2025 6,825 4,633 4,592 11.00% Mortgage Note – Portfolio November 2023 November 2026 24,000 23,370 23,265 8.75% Construction Loan – Retail Outparcels – Lawrenceville, GA January 2024 January 2026 7,200 3,601 3,519 11.25% $ 45,825 $ 38,686 $ 38,433 CECL Reserve (387) Total Commercial Loans and Investments $ 38,046 The Company’s commercial loans and investments were comprised of the following at December 31, 2023 (in thousands): Description Date of Investment Maturity Date Original Face Amount Current Face Amount Carrying Value Coupon Rate Construction Loan – Wawa Land Development – Greenwood, IN July 2023 July 2025 $ 7,800 $ 7,014 $ 6,984 8.50% Construction Loan – Wawa Land Development – Antioch, TN October 2023 October 2025 6,825 4,615 4,568 11.00% Mortgage Note – Portfolio November 2023 November 2026 24,000 24,000 23,885 8.75% $ 38,625 $ 35,629 $ 35,437 CECL Reserve (357) Total Commercial Loans and Investments $ 35,080 The carrying value of the commercial loans and investments consisted of the following at March 31, 2024 and December 31, 2023 (in thousands). As of March 31, 2024 December 31, 2023 Current Face Amount $ 38,686 $ 35,629 Unaccreted Origination Fees (253) (192) CECL Reserve (387) (357) Total Commercial Loans and Investments $ 38,046 $ 35,080 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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 not carried at fair value on the consolidated balance sheets at March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Cash and Cash Equivalents - Level 1 $ 5,145 $ 5,145 $ 4,019 $ 4,019 Restricted Cash - Level 1 $ 2,833 $ 2,833 $ 9,712 $ 9,712 Commercial Loans and Investments - Level 2 $ 38,046 $ 39,879 $ 35,080 $ 36,288 Long-Term Debt - Level 2 $ 272,256 $ 256,895 $ 275,677 $ 258,613 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 tables present the fair value of assets measured on a recurring basis by level as of March 31, 2024 and December 31, 2023 (in thousands). See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. Fair Value at Reporting Date Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2024 2026 Term Loan Interest Rate Swap (1) $ 5,012 $ — $ 5,012 $ — 2027 Term Loan Interest Rate Swap (2) $ 6,615 $ — $ 6,615 $ — Credit Facility Interest Rate Swap (3) $ 1,550 $ — $ 1,550 $ — December 31, 2023 2026 Term Loan Interest Rate Swap (1) $ 4,314 $ — $ 4,314 $ — 2027 Term Loan Interest Rate Swap (2) $ 5,793 $ — $ 5,793 $ — Credit Facility Interest Rate Swap (3) $ 716 $ — $ 716 $ — (1) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 2.05% plus 0.10% and the applicable spread on the $100.0 million 2026 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. (2) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 1.18% plus 0.10% and the applicable spread on the $100.0 million 2027 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. The $6.6 million fair value includes $3.9 million attributable to an $80.0 million forward starting swap effective November 29, 2024 as seen in Note 13, “Interest Rate Swaps”. (3) As of March 31, 2024, the Company utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.21% plus 0.10% and the applicable spread on $50.0 million of the outstanding balance on the Credit Facility (hereinafter defined) . See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. |
INTANGIBLE ASSETS AND LIABILITI
INTANGIBLE ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 December 31, 2023 Intangible Lease Assets: Value of In-Place Leases $ 48,267 $ 48,267 Value of Above Market In-Place Leases 2,942 2,942 Value of Intangible Leasing Costs 18,865 18,865 Sub-total Intangible Lease Assets 70,074 70,074 Accumulated Amortization (23,055) (20,782) Sub-total Intangible Lease Assets—Net 47,019 49,292 Intangible Lease Liabilities: Value of Below Market In-Place Leases (6,770) (6,770) Sub-total Intangible Lease Liabilities (6,770) (6,770) Accumulated Amortization 2,081 1,863 Sub-total Intangible Lease Liabilities—Net (4,689) (4,907) Total Intangible Assets and Liabilities—Net $ 42,330 $ 44,385 The following table reflects the net amortization of intangible assets and liabilities during the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Amortization Expense $ 2,165 $ 2,290 Accretion to Properties Revenue (110) (87) Net Amortization of Intangible Assets and Liabilities $ 2,055 $ 2,203 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 Property Revenue Net Future Amortization of Intangible Assets and Liabilities Remainder of 2024 $ 6,301 $ (336) $ 5,965 2025 7,840 (417) 7,423 2026 7,414 (442) 6,972 2027 6,021 (425) 5,596 2028 4,864 (367) 4,497 2029 4,096 (294) 3,802 2030 and Thereafter 8,614 (539) 8,075 Total $ 45,150 $ (2,820) $ 42,330 As of March 31, 2024, the weighted average amortization period of both the total intangible assets and liabilities was 8.8 years. |
PROVISION FOR IMPAIRMENT
PROVISION FOR IMPAIRMENT | 3 Months Ended |
Mar. 31, 2024 | |
PROVISION FOR IMPAIRMENT | |
PROVISION FOR IMPAIRMENT | NOTE 7. PROVISION FOR IMPAIRMENT Income Properties Commercial Loans and Investments During the three months ended March 31, 2024, the Company recorded a charge of less than $0.1 million representing the provision for credit losses related to our commercial loans and investments. The charge of less than $0.1 million was driven by the initial estimated CECL allowance based on our investment activity during the three months ended March 31, 2024. We are unable to use historical data to estimate expected credit losses as we have incurred no losses to date. Management utilizes a loss-rate method and considers macroeconomic factors to estimate its CECL allowance, which is calculated based on the amortized cost basis of the commercial loans. There were no such charges during the three months ended March 31, 2023. |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
OTHER ASSETS | |
OTHER ASSETS | NOTE 8. OTHER ASSETS Other assets consisted of the following (in thousands): As of March 31, 2024 December 31, 2023 Tenant Receivables—Net of Allowance for Doubtful Accounts (1) $ 902 $ 809 Prepaid Insurance 570 838 Deposits on Acquisitions 10 60 Prepaid Expenses, Deposits, and Other 2,505 1,757 Deferred Financing Costs—Net 1,089 1,190 Interest Rate Swaps 13,177 10,957 Operating Leases - Right-of-Use Asset (2) 1,328 1,434 Total Other Assets $ 19,581 $ 17,045 (1) Includes a $0.2 million and $0.4 million allowance for doubtful accounts as of March 31, 2024 and December 31, 2023, respectively. (2) See Note 9, “Operating Land Leases” for further disclosure related to the Company’s right-of-use asset balance as of March 31, 2024. |
OPERATING LAND LEASES
OPERATING LAND LEASES | 3 Months Ended |
Mar. 31, 2024 | |
OPERATING LAND LEASES | |
OPERATING LAND LEASES | NOTE 9. OPERATING LAND LEASES The Company is the lessee under operating land leases for certain of its properties. FASB ASC Topic 842, Leases The Company’s operating land leases do not include variable lease payments and generally provide renewal options, at the Company’s election, to extend the terms of the respective leases. Renewal option periods are included in the calculation of the right-of-use assets and corresponding lease liabilities when it is reasonably certain that the Company, as lessee, will exercise the option to extend the lease. Amortization of right-of-use assets for operating land leases is recognized on a straight-line basis over the term of the lease and is included within real estate expenses in the consolidated statements of operations. Amortization totaled less than $0.1 million during each of the three month periods ended March 31, 2024 and 2023. The following table reflects a summary of operating land leases, under which the Company is the lessee, for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Operating Cash Outflows $ 46 $ 64 Weighted Average Remaining Lease Term 7.2 7.7 Weighted Average Discount Rate 2.0 % 2.0 % Minimum future lease payments under non-cancelable operating land leases, having remaining terms in excess of one year subsequent to March 31, 2024, are summarized as follows (in thousands): Year Ending December 31, Remainder of 2024 $ 138 2025 192 2026 202 2027 202 2028 202 2029 202 2030 and Thereafter 288 Total Lease Payments $ 1,426 Imputed Interest (74) Operating Leases – Liability $ 1,352 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2024 | |
ASSETS HELD FOR SALE | |
ASSETS HELD FOR SALE | NOTE 10. ASSETS HELD FOR SALE Assets held for sale consisted of the following (in thousands): As of March 31, 2024 December 31, 2023 Real Estate—Net $ 6,374 $ 6,374 Intangible Lease Assets—Net 749 749 Intangible Lease Liabilities—Net (39) (39) Straight-Line Rent Adjustment 173 173 Other Assets 17 17 Assets Prior to Provision for Impairment $ 7,274 $ 7,274 Less Provision for Impairment (2,864) (2,864) Total Assets Held for Sale $ 4,410 $ 4,410 |
ACCOUNTS PAYABLE, ACCRUED EXPEN
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | NOTE 11. ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES Accounts payable, accrued expenses, and other liabilities consisted of the following (in thousands): As of March 31, 2024 December 31, 2023 Accounts Payable $ 20 $ 30 Accrued Expenses 2,977 2,449 Tenant Security Deposits 90 78 Due to CTO 1,079 1,052 Interest Rate Swaps — 134 Loan Reserves 590 539 Operating Leases - Liability (1) 1,352 1,454 Total Accounts Payable, Accrued Expenses, and Other Liabilities $ 6,108 $ 5,736 (1) See Note 9, “Operating Land Leases” for further disclosure related to the Company’s operating lease liability balance as of March 31, 2024 . |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | NOTE 12. LONG-TERM DEBT As of March 31, 2024, the Company’s outstanding indebtedness, at face value, was as follows (in thousands): Face Value Debt Stated Interest Rate Maturity Date Credit Facility (1) $ 73,000 SOFR + 0.10% + January 2027 2026 Term Loan (2) 100,000 SOFR + 0.10% + May 2026 2027 Term Loan (3) 100,000 SOFR + 0.10% + January 2027 Total Debt/Weighted-Average Rate $ 273,000 3.80% (1) As of March 31, 2024, the Company utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.21% plus 0.10% and the applicable spread on $50 million of the outstanding balance on the Credit Facility (hereinafter defined) . See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swap. (2) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 2.05% plus 0.10% and the applicable spread on the $100 million 2026 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. (3) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 1.18% plus 0.10% and the applicable spread on the $100 million 2027 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. Credit Facility. ● the origination of a new senior unsecured revolving credit facility in the amount of $250 million which matures on January 31, 2027, with the option to extend for one year ; ● an accordion option that allows the Company to request additional revolving loan commitments and additional term loan commitments, provided the aggregate amount of revolving loan commitments and term loan commitments shall not exceed $750 million; ● the amendment of certain financial covenants; and ● the addition of a sustainability-linked pricing component pursuant to which the Company will receive interest rate reductions up to 0.025% based on performance against sustainability performance targets. Pursuant to the 2022 Amended and Restated Credit Agreement, the indebtedness outstanding under the Credit Facility accrues at a rate ranging from SOFR plus 0.10% plus 125 basis points to SOFR plus 0.10% plus 220 basis points, based on the total balance outstanding under the Credit Facility as a percentage of the total asset value of the Company, as defined in the 2022 Amended and Restated Credit Agreement. The Company may utilize daily simple SOFR or term SOFR, at its election. The Credit Facility also accrues a fee of 15 or 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. At March 31, 2024, the commitment level under the Credit Facility was $250.0 million and the Company had an outstanding balance of $73.0 million. 2026 Term Loan. and certain other lenders named therein, for a term loan (the “2026 Term Loan”) in an aggregate principal amount of $60.0 million with a maturity of five years. On April 14, 2022, the Company entered into the Amendment, Increase and Joinder to the 2026 Term Loan Credit Agreement (the “2026 Term Loan Amendment”), which increased the term loan commitment under the 2026 Term Loan by $40 million to an aggregate of $100 million. The 2026 Term Loan Amendment also effectuated the transition of the underlying variable interest rate from LIBOR to SOFR. On October 5, 2022, the Company entered into an amendment which, among other things, amended certain financial covenants and added a sustainability-linked pricing component consistent with what is contained in the 2022 Amended and Restated Credit Agreement (the “2026 Term Loan Second Amendment”), effective September 30, 2022. 2027 Term Loan. On September 30, 2022, the Company entered into the 2022 Amended and Restated Credit Agreement which amended and restated the 2027 Term Loan Credit Agreement to include the origination of a new revolving credit facility in the amount of $250.0 million as previously described. The 2022 Amended and Restated Credit Agreement includes an accordion option that allows the Company to request additional revolving loan commitments and additional term loan commitments not to exceed $750.0 million in the aggregate. Long-term debt as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands): March 31, 2024 December 31, 2023 Total Due Within One Year Total Due Within One Year Credit Facility $ 73,000 $ — $ 76,500 $ — 2026 Term Loan 100,000 — 100,000 — 2027 Term Loan 100,000 — 100,000 — Financing Costs, net of Accumulated Amortization (744) — (823) — Total Long-Term Debt $ 272,256 $ — $ 275,677 $ — Payments applicable to reduction of principal amounts as of March 31, 2024 will be required as follows (in thousands): Year Ending December 31, Amount Remainder of 2024 $ — 2025 — 2026 100,000 2027 173,000 2028 — 2029 — 2030 and Thereafter — Total Long-Term Debt - Face Value $ 273,000 The carrying value of long-term debt as of March 31, 2024 consisted of the following (in thousands): Total Current Face Amount $ 273,000 Financing Costs, net of Accumulated Amortization (744) Total Long-Term Debt $ 272,256 In addition to the $0.7 million of financing costs, net of accumulated amortization included in the table above, as of March 31, 2024, the Company also had financing costs, net of accumulated amortization related to the Credit Facility of $1.1 million which is included in other assets on the consolidated balance sheets. These costs are amortized on a straight-line basis over the term of the Credit Facility and are included in interest expense in the consolidated statements of operations. The following table reflects a summary of interest expense incurred and paid during the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Interest Expense $ 2,755 $ 2,439 Amortization of Deferred Financing Costs to Interest Expense 180 174 Total Interest Expense $ 2,935 $ 2,613 Total Interest Paid $ 2,787 $ 2,544 The Company was in compliance with all of its debt covenants as of March 31, 2024. |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 3 Months Ended |
Mar. 31, 2024 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | NOTE 13. INTEREST RATE SWAPS The Company has entered into interest rate swap agreements to hedge against changes in future cash flows resulting from fluctuating interest rates related to the below noted borrowings. The interest rate agreements were 100% effective during the three months ended March 31, 2024 and 2023. Accordingly, the changes in fair value on the interest rate swaps have been classified in accumulated other comprehensive income. The fair value of the interest rate swap agreements are included in other assets and accounts payable, accrued expenses and other liabilities, respectively, on the consolidated balance sheets. Information related to the Company’s interest rate swap agreements is noted below (in thousands): Hedged Item Effective Date Maturity Date Rate Amount Fair Value as of March 31, 2024 2026 Term Loan (1) 5/21/2021 5/21/2026 2.05% + 0.10% + $ 100,000 $ 5,012 2027 Term Loan (2) 9/30/2021 11/29/2024 0.51%+ 0.10% + $ 80,000 $ 2,499 2027 Term Loan (3) 9/30/2022 1/31/2027 3.84%+ 0.10% + $ 20,000 $ 204 2027 Term Loan (4) 11/29/2024 1/31/2027 1.61%+ 0.10% + $ 80,000 $ 3,912 Credit Facility (5) 3/1/2023 3/1/2028 3.21%+ 0.10%+ $ 50,000 $ 1,550 (1) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 2.05% plus 0.10% and the applicable spread on the $100.0 million 2026 Term Loan balance. The weighted average fixed interest rate of 2.05% , is comprised of: (i) rate swaps on $60.0 million of the 2026 Term Loan balance effective May 21, 2021, as amended on April 14, 2022 in connection with the 2026 Term Loan Amendment, to fix SOFR (prior to April 14, 2022, the swap was to fix LIBOR), and (ii) a rate swap on $40.0 million of the 2026 Term Loan Balance effective September 30, 2022, to fix SOFR. (2) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 0.51% plus 0.10% and the applicable spread on $80.0 million of the $100.0 million 2027 Term Loan balance. The weighted average fixed interest rate of 0.51% , is comprised of two rate swaps on $80.0 million of the 2027 Term Loan balance effective September 30, 2021, as amended on April 14, 2022 in connection with the 2027 Term Loan Amendment, to fix SOFR (prior to April 14, 2022, the swap was to fix LIBOR). (3) As of March 31, 2024, the Company has utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.84% plus 0.10% and the applicable spread on $20.0 million of the $100.0 million 2027 Term Loan balance. (4) The interest rate swap agreement hedges $80.0 million of the $100.0 million 2027 Term Loan balance under different terms and commences concurrent to the interest rate agreements maturing on November 29, 2024 to extend the fixed interest rate through maturity on January 31, 2027. (5) As of March 31, 2024, the Company has utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.21% plus 0.10% and the applicable spread on $50.0 million of the outstanding balance on the Credit Facility. The swap was effective on March 1, 2023. The use of interest rate swap agreements carries risks, including the risk that the counterparties to these agreements are not able to perform. To mitigate this risk, the Company enters into interest rate swap agreements with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not currently anticipate that any of the counterparties to the Company’s interest rate swap agreements will fail to meet their obligations. As of March 31, 2024 and December 31, 2023, there were no events of default related to the Company's interest rate swap agreements. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
EQUITY | |
EQUITY | NOTE 14. 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 “2020 Registration Statement”). The Securities and Exchange Commission declared the 2020 Registration Statement effective on December 11, 2020. On September 27, 2023, the Company filed a shelf registration statement on Form S-3, relating to the registration and potential issuance of common stock, preferred stock, debt securities, warrants, rights, and units with a maximum aggregate offering price of up to $350.0 million (the “2023 Registration Statement”). The 2020 Registration Statement was terminated concurrently with the filing of the 2023 Registration Statement. The Securities and Exchange Commission declared the 2023 Registration Statement effective on September 29, 2023. FOLLOW-ON PUBLIC OFFERING In June 2021, the Company completed a follow-on public offering of shares of common stock, which included the full exercise of the underwriters’ option to purchase an additional 420,000 shares of common stock. Upon closing, the Company issued 3,220,000 shares and received net proceeds of $54.3 million, after deducting the underwriting discount and expenses. ATM PROGRAM On December 14, 2020, the Company implemented a $100.0 million “at-the-market” equity offering program (the “2020 ATM Program”) pursuant to which the Company may sell, from time to time, shares of the Company’s common stock. During the year ended December 31, 2022, the Company sold 446,167 shares under the 2020 ATM Program for gross proceeds of $8.7 million at a weighted average price of $19.44 per share, generating net proceeds of $8.6 million after deducting transaction fees totaling $0.1 million. During the year ended December 31, 2021, the Company sold 761,902 shares under the 2020 ATM Program for gross proceeds of $14.0 million at a weighted average price of $18.36 per share, generating net proceeds of $13.8 million after deducting transaction fees totaling $0.2 million. The 2020 ATM Program was terminated in advance of implementing the 2022 ATM Program, hereinafter defined. On October 21, 2022, the Company implemented a $150.0 million “at-the-market” equity offering program (the “2022 ATM Program”) pursuant to which the Company may sell, from time to time, shares of the Company’s common stock. During the three months ended March 31, 2023, the Company sold 665,929 shares under the 2022 ATM Program for gross proceeds of $12.6 million at a weighted average price of $18.96 per share, generating net proceeds of $12.4 million after deducting transaction fees totaling $0.2 million. During the year ended December 31, 2023, the Company sold 665,929 shares under the 2022 ATM Program for gross proceeds of $12.6 million at a weighted average price of $18.96 per share, generating net proceeds of $12.4 million after deducting transaction fees totaling $0.2 million. In the aggregate, under the 2020 ATM Program and 2022 ATM Program, during the year ended December 31, 2022, the Company sold 1,925,408 shares for gross proceeds of $36.5 million at a weighted average price of $18.96 per share, generating net proceeds of $36.0 million after deducting transaction fees totaling $0.5 million. The Company was not active under the 2022 ATM Program during the three months ended March 31, 2024. NONCONTROLLING INTEREST As of March 31, 2024, CTO holds, directly and indirectly, an 8.2% noncontrolling ownership interest in the Operating Partnership as a result of 1,223,854 OP Units issued to CTO at the time of the Company’s IPO. DIVIDENDS The Company has elected to be taxed as a REIT for U.S. federal income tax purposes under the Code. 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 U.S. federal corporate 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 three months ended March 31, 2024 and 2023, the Company declared and paid cash dividends on its common stock and OP Units of $0.275 per share. |
COMMON STOCK AND EARNINGS PER S
COMMON STOCK AND EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
COMMON STOCK AND EARNINGS PER SHARE | |
COMMON STOCK AND EARNINGS PER SHARE | NOTE 15. COMMON STOCK AND EARNINGS PER SHARE Basic earnings per common share are computed by dividing net income attributable to the Company for the period by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per common share are determined based on the assumption of the redemption 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): Three Months Ended March 31, 2024 March 31, 2023 Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. $ (260) $ 3,339 Weighted Average Number of Common Shares Outstanding 13,621,208 14,000,553 Weighted Average Number of Common Shares Applicable to OP Units using Treasury Stock Method (1) 1,223,854 1,703,494 Total Shares Applicable to Diluted Earnings per Share 14,845,062 15,704,047 Per Common Share Data: Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. Basic $ (0.02) $ 0.24 Diluted $ (0.02) $ 0.21 (1) Includes the weighted average of 1,223,854 and 1,703,494 shares during the three months ended March 31, 2024 and 2023, respectively, underlying OP Units including (i) 1,223,854 shares underlying OP Units issued to CTO and (ii) 479,640 shares underlying OP Units issued to an unrelated third party, which OP Units were redeemed by PINE for an equivalent number of shares of common stock of PINE during the three months ended December 31, 2023. |
SHARE REPURCHASES
SHARE REPURCHASES | 3 Months Ended |
Mar. 31, 2024 | |
SHARE REPURCHASES | |
SHARE REPURCHASES | NOTE 16. SHARE REPURCHASES In May 2023, the Board approved a $5.0 million stock repurchase program (the “2023 $5.0 Million Repurchase Program”). Under the 2023 $5.0 Million Repurchase Program, the Company repurchased 23,889 shares of its common stock on the open market for a total cost of $0.4 million, or an average price per share of $15.22, during the year ended December 31, 2023. There were no repurchases of the Company’s common stock during the three months ended March 31, 2023. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 17. STOCK-BASED COMPENSATION Each non-employee member of the Board has the option to receive his or her annual retainer fee in shares of Company common stock rather than cash. The number of shares issued to the directors making such election is calculated quarterly by dividing the amount of the quarterly retainer fee payment due to such director by the 20-day trailing average closing 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 three months ended March 31, 2024, the expense recognized for the value of the Company’s common stock received by non-employee directors totaled $0.08 million, or 5,131 shares, which were issued on April 1, 2024. During the three months ended March 31, 2023, the expense recognized for the value of the Company’s common stock received by non-employee directors totaled $0.08 million, or 4,776 shares, which were issued on April 3, 2023. Stock compensation expense for the three months ended March 31, 2024 and 2023 is summarized as follows (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Stock Compensation Expense – Director Restricted Stock $ — $ — Stock Compensation Expense – Director Retainers Paid in Stock 79 80 Total Stock Compensation Expense $ 79 $ 80 (1) Director retainers are issued through additional paid in capital in arrears. Therefore, the change in additional paid in capital during the three months ended March 31, 2024 and 2023 reported on the consolidated statements of stockholders’ equity does not agree to the total non-cash compensation reported on the consolidated statements of cash flows. |
RELATED PARTY MANAGEMENT COMPAN
RELATED PARTY MANAGEMENT COMPANY | 3 Months Ended |
Mar. 31, 2024 | |
RELATED PARTY MANAGEMENT COMPANY | |
RELATED PARTY MANAGEMENT COMPANY | NOTE 18. RELATED PARTY MANAGEMENT COMPANY We are externally managed by the Manager, a wholly owned subsidiary of CTO. Subsequent to the IPO, through March 31, 2024, CTO has purchased an aggregate of 293,024 shares of PINE common stock in the open market including (i) 129,271 shares purchased during the year ended December 31, 2023 for $2.1 million, or an average price per share of $16.21, (ii) 155,665 shares purchased during the year ended December 31, 2022 for $2.7 million, or an average price per share of $17.57 and (iii) 8,088 shares purchased during the year ended December 31, 2021 for $0.1 million, or an average price per share of $17.65. CTO did not purchase any shares of PINE common stock during the three months ended March 31, 2024. As of March 31, 2024, CTO owns, in the aggregate, 1,223,854 OP Units and 1,108,814 shares of PINE common stock, inclusive of (i) 394,737 shares of common stock totaling $7.5 million issued in connection with a private placement that closed concurrently with the IPO, (ii) 421,053 shares of common stock totaling $8.0 million issued in connection with the IPO, and (iii) 293,024 shares of common stock totaling $5.0 million purchased by CTO subsequent to the IPO. The aggregate 1,223,854 OP Units and 1,108,814 shares of PINE common stock held by CTO represent an investment totaling $35.6 million, or 15.7% of PINE’s outstanding equity, as of March 31, 2024. Management Agreement On November 26, 2019, the Operating Partnership and PINE entered into a management agreement with the Manager (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. 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 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, 2023. 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 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 two We pay directly or reimburse our Manager for certain expenses, if incurred by our Manager. We do not reimburse any compensation expenses incurred by our Manager or its affiliates. Expense reimbursements to our Manager are made in cash on a quarterly basis following the end of each quarter. In addition, we pay all of our operating expenses, except those specifically required to be borne by our Manager pursuant to the Management Agreement. The Company incurred management fee expenses totaling $1.0 million and $1.1 million during the three months ended March 31, 2024 and 2023, respectively. The Company also paid dividends on the common stock and OP Units owned by affiliates of the Manager in the amount of $0.6 million for the three months ended March 31, 2024 and 2023. The following table represents amounts due to (from) CTO (in thousands): As of Description March 31, 2024 December 31, 2023 Management Fee due to CTO $ 1,046 $ 1,062 Other 33 (10) Total (1) $ 1,079 $ 1,052 (1) Included in accrued expenses, see Note 11, “Accounts Payable, Accrued Expenses, and Other Liabilities”. ROFO Agreement On November 26, 2019, PINE also entered into an Exclusivity and Right of First Offer Agreement with CTO (the “ROFO Agreement”). During the term of the ROFO Agreement, CTO will not, and will cause each of its affiliates (which for purposes of the ROFO Agreement will not include our company and our subsidiaries) not to, acquire, directly or indirectly, a single-tenant, net leased property, unless CTO has notified us of the opportunity and we have affirmatively rejected the opportunity to acquire the applicable property or properties. The terms of the 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 ROFO Agreement, neither CTO nor any of its affiliates (which for purposes of the 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 that is developed and 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 ROFO Agreement will continue for so long as the Management Agreement with our Manager is in effect. On April 6, 2021, the Company entered into a purchase and sale agreement with a certain subsidiary of CTO for the purchase of one net lease property for $11.5 million. The acquisition was completed on April 23, 2021. On April 2, 2021, the Company entered into a purchase and sale agreement with certain subsidiaries of CTO for the purchase of six net lease properties (the “CMBS Portfolio”). The terms of the purchase and sale agreement, as amended on April 20, 2021, provided a total purchase price of $44.5 million for the CMBS Portfolio. The acquisition of the CMBS Portfolio was completed on June 30, 2021. On January 5, 2022, the Company entered into a purchase and sale agreement with a certain subsidiary of CTO for the purchase of one net lease property for $6.9 million. The acquisition was completed on January 7, 2022. The entry into these purchase and sale agreements, and subsequent completion of the related acquisitions, are a result of the Company exercising its right to purchase the aforementioned properties under the ROFO Agreement. 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, sell, or finance net leased properties that would potentially fit the investment criteria for our Manager or its affiliates. Similarly, our Manager or its affiliates may acquire, sell, or finance net leased properties that would potentially fit our investment criteria. Although such acquisitions or dispositions could 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 of assets. If we acquire a net leased property from CTO or one of its affiliates or sell a 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 arm’s 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 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 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. Revenue Sharing Agreement On December 4, 2023, CTO entered into an asset management agreement directly with the borrower under the Mortgage Note (as described in Note 4, “Commercial Loans and Investments”) to manage the portfolio of assets secured by the Mortgage Note. The Company entered into a revenue sharing agreement with CTO whereby the Company is expected to receive a share of the asset management fees, disposition management fees, leasing commissions, and other fees related to CTO’s management and administration of the portfolio (the “Revenue Sharing Agreement”). The Company’s share of the fees under the Revenue Sharing Agreement will be based on fees earned by CTO associated with the single tenant properties within the portfolio. During the three months ended March 31, 2024, the Company recognized $0.1 million of revenue pursuant to the Revenue Sharing Agreement, which is included in other revenue on the Company’s consolidated statement of operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 19. 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. The Company is not currently a party to any pending or threatened legal proceedings that we believe could have a material adverse effect on the Company’s business or financial condition. CONTRACTUAL COMMITMENTS – EXPENDITURES The Company is committed to fund three construction loans as described in Note 4, “Commercial Loans and Investments”. The unfunded portion of the construction loans totaled $6.5 million as of March 31, 2024. |
BUSINESS SEGMENT DATA
BUSINESS SEGMENT DATA | 3 Months Ended |
Mar. 31, 2024 | |
BUSINESS SEGMENT DATA | |
BUSINESS SEGMENT DATA | NOTE 20. BUSINESS SEGMENT DATA The Company operates in two primary business segments: income properties and commercial loans and investments. Our income property operations consist of lease income from income producing properties and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 89% of our identifiable assets as of March 31, 2024 and December 31, 2023, and 92% and 100% of our consolidated revenues for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, our commercial loans investment portfolio consisted of four commercial loan investments. The Company’s chief operating decision maker evaluates segment performance based on operating income. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skill. Information about the Company’s operations in different segments for the three months ended March 31, 2024 and 2023 is as follows (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Revenues: Lease Income $ 11,464 $ 11,156 Interest Income from Commercial Loans and Investments 903 — Other Revenue 99 — Total Revenues $ 12,466 $ 11,156 Operating Income (Loss): Lease Income $ 9,536 $ 9,722 Interest Income from Commercial Loans and Investments 903 — Other Revenue 99 — General and Corporate Expenses (7,924) (7,850) Provision for Impairment (31) — Gain on Disposition of Assets — 4,453 Gain (Loss) on Extinguishment of Debt — 23 Total Operating Income $ 2,583 $ 6,348 Depreciation and Amortization: Income Properties $ 6,382 $ 6,335 Total Depreciation and Amortization $ 6,382 $ 6,335 Capital Expenditures: Income Properties $ 1,138 $ 102 Commercial Loans and Investments 3,597 — Total Capital Expenditures $ 4,735 $ 102 Identifiable assets of each segment as of March 31, 2024 and December 31, 2023 are as follows (in thousands): As of March 31, 2024 December 31, 2023 Identifiable Assets: Income Properties $ 497,944 $ 503,291 Commercial Loans and Investments 38,306 35,080 Corporate and Other 22,771 26,189 Total Assets $ 559,021 $ 564,560 Operating income represents income from continuing operations before interest expense, and investment and other income. General and corporate expenses are an aggregate of general and administrative expenses and depreciation and amortization expense. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Corporate and other assets consist primarily of cash and restricted cash as well as the interest rate swaps. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 21. SUBSEQUENT EVENTS Subsequent events and transactions were evaluated through April 18, 2024, the date the consolidated financial statements were issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION 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. |
SEGMENT REPORTING | SEGMENT REPORTING Financial Accounting Standards Board Accounting Standards Codification Segment Reporting |
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 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 comprised of the properties in its portfolio, and are stated at cost, less accumulated depreciation and amortization. Such properties are depreciated on a straight-line basis over their estimated useful lives. Renewals and betterments are capitalized to the applicable 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 three months ended March 31, 2024 and March 31, 2023, was $4.2 million, and $4.0 million, respectively. |
LONG-LIVED ASSETS | LONG-LIVED ASSETS The Company follows FASB ASC Topic 360-10, Property, Plant, and Equipment, |
PURCHASE ACCOUNTING FOR ACQUISITIONS OF REAL ESTATE SUBJECT TO A LEASE | PURCHASE ACCOUNTING FOR ACQUISITIONS OF REAL ESTATE SUBJECT TO A LEASE Clarifying the Definition of a Business 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 management believes that it is likely that the tenant will renew the lease upon expiration, in which case the Company amortizes 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. ASSETS HELD FOR SALE Investments in real estate which are determined to be “held for sale” pursuant to FASB Topic 360-10, Property, Plant, and Equipment SALES OF REAL ESTATE When properties are disposed of, the related cost basis of the real estate, intangible lease assets, and intangible lease liabilities, net of accumulated depreciation and/or amortization, and any accrued straight-line rental income balance for the underlying operating leases are removed, and gains or losses from the dispositions are reflected in net income within gains on dispositions of assets. In accordance with the FASB guidance, gains or losses on sales of real estate are generally recognized using the full accrual method. |
PROPERTY LEASE REVENUE | PROPERTY LEASE REVENUE The rental arrangements associated with the Company’s 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 March 31, 2024 and December 31, 2023, the Company’s allowance for doubtful accounts totaled $0.2 million and $0.4 million, respectively. |
COMMERCIAL LOANS AND INVESTMENTS | COMMERCIAL LOANS AND INVESTMENTS Investments in commercial loans and investments held for investment are recorded at historical cost, net of unaccreted origination costs and current expected credit losses (“CECL”) reserve. Pursuant to ASC 326, Financial Instruments - Credit Losses |
RECOGNITION OF INTEREST INCOME FROM COMMERCIAL LOANS AND INVESTMENTS | RECOGNITION OF INTEREST INCOME FROM COMMERCIAL LOANS AND INVESTMENTS Interest income on commercial loans and investments includes interest payments made by the borrower and the accretion of loan origination fees, offset by the amortization of loan costs, if any. Interest payments are accrued based on the actual coupon rate and the outstanding principal balance and purchase discounts and loan origination fees are accreted into income using the effective yield method, adjusted for prepayments. |
OPERATING LAND LEASE EXPENSE | OPERATING LAND LEASE EXPENSE The Company is the lessee under operating land leases for certain of its properties, which leases are classified as operating leases pursuant to FASB ASC Topic 842, Leases |
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 March 31, 2024 and December 31, 2023 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. |
RESTRICTED CASH | RESTRICTED CASH Restricted cash totaled $2.8 million as of March 31, 2024, which is being held in interest, tax, insurance, and/or capital expenditure reserve accounts related to the Company’s commercial loans and investments. |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITY The Company accounts for its cash flow hedging derivatives in accordance with FASB ASC Topic 815-20, Derivatives and Hedging The Company documented the relationship between the hedging instruments and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transactions. At the hedges’ inception, the Company assessed whether the derivatives that are used in hedging the transactions are highly effective in offsetting changes in cash flows of the hedged items and will continue to do so on a quarterly basis. Changes in fair value of the hedging instruments that are highly effective and designated and qualified as cash-flow hedges are recorded in other comprehensive income and loss, until earnings are affected by the variability in cash flows of the designated hedged items (see Note 13, “Interest Rate Swaps”). |
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, restricted cash, accounts receivable included in other assets, accounts payable, and accrued expenses and other liabilities at March 31, 2024 and December 31, 2023, approximate fair value because of the short maturity of these instruments. The carrying value of the Credit Facility, hereinafter defined, approximates current market rates for revolving credit arrangements with similar risks and maturities. The Company estimates the fair value of its commercial loans and investments and term loans based on incremental borrowing rates for similar types of borrowing arrangements with the same remaining maturity and on the discounted estimated future cash payments to be made for other debt. The discount rate used to calculate the fair value of debt approximates current lending rates for loans and assumes the debt is outstanding through maturity. Since such amounts are estimates that are based on limited available market information for similar transactions, which is a Level 2 non-recurring measurement, there can be no assurance that the disclosed value of any financial instrument could be realized by immediate settlement of the instrument. |
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. |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK Certain individual tenants in the Company’s portfolio of properties accounted for more than 10% of lease income from the Company’s income properties during the three months ended March 31, 2024 and 2023. During the three months ended March 31, 2024 and 2023, Walgreens accounted for 11% and 12% of total revenues, respectively. As of March 31, 2024 and December 31, 2023, 13%, 11%, and 11% of the Company’s real estate portfolio, based on square footage, was located in the states of Texas, New Jersey, and Michigan, respectively. |
RECLASSIFICATIONS | RECLASSIFICATIONS Certain items in the prior period’s consolidated balance sheet and consolidated statement of operations have been reclassified to conform to the presentation for the three months ended March 31, 2024. Specifically, tax, insurance, and capital expenditure reserve accounts related to the Company’s commercial loans and investments were previously included within Prepaid Rent and Deferred Revenue and are now included within Accounts Payable, Accrued Expenses, and Other Liabilities on the accompanying consolidated balance sheets. Additionally, interest income earned on deposits at financial institutions was previously included within Lease Income and is now included within Investment and Other Income on the accompanying consolidated statement of operations. There was no impact to retained earnings as a result of the reclassifications. |
PROPERTY PORTFOLIO (Tables)
PROPERTY PORTFOLIO (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
PROPERTY PORTFOLIO | |
Schedule of components of leasing revenue | The components of leasing revenue are as follows (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Lease Income Lease Payments $ 9,862 $ 10,163 Variable Lease Payments 1,602 993 Total Lease Income $ 11,464 $ 11,156 |
Schedule of minimum future base rental revenue on non-cancelable leases | Minimum Future Rental Receipts. Year Ending December 31, Amounts Remainder of 2024 $ 29,084 2025 37,830 2026 37,021 2027 33,353 2028 30,088 2029 25,817 2030 and Thereafter (Cumulative) 75,096 Total $ 268,289 |
COMMERCIAL LOANS AND INVESTME_2
COMMERCIAL LOANS AND INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
COMMERCIAL LOANS AND INVESTMENTS | |
Schedule of commercial loans and investments | The Company’s commercial loans and investments were comprised of the following at March 31, 2024 (in thousands): Description Date of Investment Maturity Date Original Face Amount Current Face Amount Carrying Value Coupon Rate Construction Loan – Wawa Land Development – Greenwood, IN July 2023 July 2025 $ 7,800 $ 7,082 $ 7,057 8.50% Construction Loan – Wawa Land Development – Antioch, TN October 2023 October 2025 6,825 4,633 4,592 11.00% Mortgage Note – Portfolio November 2023 November 2026 24,000 23,370 23,265 8.75% Construction Loan – Retail Outparcels – Lawrenceville, GA January 2024 January 2026 7,200 3,601 3,519 11.25% $ 45,825 $ 38,686 $ 38,433 CECL Reserve (387) Total Commercial Loans and Investments $ 38,046 The Company’s commercial loans and investments were comprised of the following at December 31, 2023 (in thousands): Description Date of Investment Maturity Date Original Face Amount Current Face Amount Carrying Value Coupon Rate Construction Loan – Wawa Land Development – Greenwood, IN July 2023 July 2025 $ 7,800 $ 7,014 $ 6,984 8.50% Construction Loan – Wawa Land Development – Antioch, TN October 2023 October 2025 6,825 4,615 4,568 11.00% Mortgage Note – Portfolio November 2023 November 2026 24,000 24,000 23,885 8.75% $ 38,625 $ 35,629 $ 35,437 CECL Reserve (357) Total Commercial Loans and Investments $ 35,080 |
Schedule of carrying value of the commercial loans and investments | The carrying value of the commercial loans and investments consisted of the following at March 31, 2024 and December 31, 2023 (in thousands). As of March 31, 2024 December 31, 2023 Current Face Amount $ 38,686 $ 35,629 Unaccreted Origination Fees (253) (192) CECL Reserve (387) (357) Total Commercial Loans and Investments $ 38,046 $ 35,080 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 not carried at fair value on the consolidated balance sheets at March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Cash and Cash Equivalents - Level 1 $ 5,145 $ 5,145 $ 4,019 $ 4,019 Restricted Cash - Level 1 $ 2,833 $ 2,833 $ 9,712 $ 9,712 Commercial Loans and Investments - Level 2 $ 38,046 $ 39,879 $ 35,080 $ 36,288 Long-Term Debt - Level 2 $ 272,256 $ 256,895 $ 275,677 $ 258,613 |
Schedule of fair value of assets (liabilities) measured on recurring basis by Level | The following tables present the fair value of assets measured on a recurring basis by level as of March 31, 2024 and December 31, 2023 (in thousands). See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. Fair Value at Reporting Date Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2024 2026 Term Loan Interest Rate Swap (1) $ 5,012 $ — $ 5,012 $ — 2027 Term Loan Interest Rate Swap (2) $ 6,615 $ — $ 6,615 $ — Credit Facility Interest Rate Swap (3) $ 1,550 $ — $ 1,550 $ — December 31, 2023 2026 Term Loan Interest Rate Swap (1) $ 4,314 $ — $ 4,314 $ — 2027 Term Loan Interest Rate Swap (2) $ 5,793 $ — $ 5,793 $ — Credit Facility Interest Rate Swap (3) $ 716 $ — $ 716 $ — (1) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 2.05% plus 0.10% and the applicable spread on the $100.0 million 2026 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. (2) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 1.18% plus 0.10% and the applicable spread on the $100.0 million 2027 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. The $6.6 million fair value includes $3.9 million attributable to an $80.0 million forward starting swap effective November 29, 2024 as seen in Note 13, “Interest Rate Swaps”. (3) As of March 31, 2024, the Company utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.21% plus 0.10% and the applicable spread on $50.0 million of the outstanding balance on the Credit Facility (hereinafter defined) . See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. |
INTANGIBLE ASSETS AND LIABILI_2
INTANGIBLE ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 (in thousands): As of March 31, 2024 December 31, 2023 Intangible Lease Assets: Value of In-Place Leases $ 48,267 $ 48,267 Value of Above Market In-Place Leases 2,942 2,942 Value of Intangible Leasing Costs 18,865 18,865 Sub-total Intangible Lease Assets 70,074 70,074 Accumulated Amortization (23,055) (20,782) Sub-total Intangible Lease Assets—Net 47,019 49,292 Intangible Lease Liabilities: Value of Below Market In-Place Leases (6,770) (6,770) Sub-total Intangible Lease Liabilities (6,770) (6,770) Accumulated Amortization 2,081 1,863 Sub-total Intangible Lease Liabilities—Net (4,689) (4,907) Total Intangible Assets and Liabilities—Net $ 42,330 $ 44,385 |
Schedule of amortization of intangible assets and liabilities | The following table reflects the net amortization of intangible assets and liabilities during the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Amortization Expense $ 2,165 $ 2,290 Accretion to Properties Revenue (110) (87) Net Amortization of Intangible Assets and Liabilities $ 2,055 $ 2,203 |
Schedule of estimated future amortization expense (income) related to net intangible 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 Property Revenue Net Future Amortization of Intangible Assets and Liabilities Remainder of 2024 $ 6,301 $ (336) $ 5,965 2025 7,840 (417) 7,423 2026 7,414 (442) 6,972 2027 6,021 (425) 5,596 2028 4,864 (367) 4,497 2029 4,096 (294) 3,802 2030 and Thereafter 8,614 (539) 8,075 Total $ 45,150 $ (2,820) $ 42,330 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
OTHER ASSETS | |
Schedule of components of other assets | Other assets consisted of the following (in thousands): As of March 31, 2024 December 31, 2023 Tenant Receivables—Net of Allowance for Doubtful Accounts (1) $ 902 $ 809 Prepaid Insurance 570 838 Deposits on Acquisitions 10 60 Prepaid Expenses, Deposits, and Other 2,505 1,757 Deferred Financing Costs—Net 1,089 1,190 Interest Rate Swaps 13,177 10,957 Operating Leases - Right-of-Use Asset (2) 1,328 1,434 Total Other Assets $ 19,581 $ 17,045 (1) Includes a $0.2 million and $0.4 million allowance for doubtful accounts as of March 31, 2024 and December 31, 2023, respectively. (2) See Note 9, “Operating Land Leases” for further disclosure related to the Company’s right-of-use asset balance as of March 31, 2024. |
OPERATING LAND LEASES (Tables)
OPERATING LAND LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
OPERATING LAND LEASES | |
Summary of operating land leases | The following table reflects a summary of operating land leases, under which the Company is the lessee, for the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Operating Cash Outflows $ 46 $ 64 Weighted Average Remaining Lease Term 7.2 7.7 Weighted Average Discount Rate 2.0 % 2.0 % |
Schedule of minimum future lease payments under non-cancelable operating land leases | Minimum future lease payments under non-cancelable operating land leases, having remaining terms in excess of one year subsequent to March 31, 2024, are summarized as follows (in thousands): Year Ending December 31, Remainder of 2024 $ 138 2025 192 2026 202 2027 202 2028 202 2029 202 2030 and Thereafter 288 Total Lease Payments $ 1,426 Imputed Interest (74) Operating Leases – Liability $ 1,352 |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
ASSETS HELD FOR SALE | |
Schedule of asset held for sale | Assets held for sale consisted of the following (in thousands): As of March 31, 2024 December 31, 2023 Real Estate—Net $ 6,374 $ 6,374 Intangible Lease Assets—Net 749 749 Intangible Lease Liabilities—Net (39) (39) Straight-Line Rent Adjustment 173 173 Other Assets 17 17 Assets Prior to Provision for Impairment $ 7,274 $ 7,274 Less Provision for Impairment (2,864) (2,864) Total Assets Held for Sale $ 4,410 $ 4,410 |
ACCOUNTS PAYABLE, ACCRUED EXP_2
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 December 31, 2023 Accounts Payable $ 20 $ 30 Accrued Expenses 2,977 2,449 Tenant Security Deposits 90 78 Due to CTO 1,079 1,052 Interest Rate Swaps — 134 Loan Reserves 590 539 Operating Leases - Liability (1) 1,352 1,454 Total Accounts Payable, Accrued Expenses, and Other Liabilities $ 6,108 $ 5,736 (1) See Note 9, “Operating Land Leases” for further disclosure related to the Company’s operating lease liability balance as of March 31, 2024 . |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LONG-TERM DEBT | |
Schedule of outstanding indebtedness, at face value | As of March 31, 2024, the Company’s outstanding indebtedness, at face value, was as follows (in thousands): Face Value Debt Stated Interest Rate Maturity Date Credit Facility (1) $ 73,000 SOFR + 0.10% + January 2027 2026 Term Loan (2) 100,000 SOFR + 0.10% + May 2026 2027 Term Loan (3) 100,000 SOFR + 0.10% + January 2027 Total Debt/Weighted-Average Rate $ 273,000 3.80% (1) As of March 31, 2024, the Company utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.21% plus 0.10% and the applicable spread on $50 million of the outstanding balance on the Credit Facility (hereinafter defined) . See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swap. (2) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 2.05% plus 0.10% and the applicable spread on the $100 million 2026 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. (3) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 1.18% plus 0.10% and the applicable spread on the $100 million 2027 Term Loan (hereinafter defined) balance. See Note 13, “Interest Rate Swaps” for further disclosure related to the Company’s interest rate swaps. |
Schedule of components of long-term debt | Long-term debt as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands): March 31, 2024 December 31, 2023 Total Due Within One Year Total Due Within One Year Credit Facility $ 73,000 $ — $ 76,500 $ — 2026 Term Loan 100,000 — 100,000 — 2027 Term Loan 100,000 — 100,000 — Financing Costs, net of Accumulated Amortization (744) — (823) — Total Long-Term Debt $ 272,256 $ — $ 275,677 $ — |
Schedule of payments applicable to reduction of principal amounts | Payments applicable to reduction of principal amounts as of March 31, 2024 will be required as follows (in thousands): Year Ending December 31, Amount Remainder of 2024 $ — 2025 — 2026 100,000 2027 173,000 2028 — 2029 — 2030 and Thereafter — Total Long-Term Debt - Face Value $ 273,000 |
Schedule of carrying value of long-term debt | The carrying value of long-term debt as of March 31, 2024 consisted of the following (in thousands): Total Current Face Amount $ 273,000 Financing Costs, net of Accumulated Amortization (744) Total Long-Term Debt $ 272,256 |
Schedule of interest expense on debt | The following table reflects a summary of interest expense incurred and paid during the three months ended March 31, 2024 and 2023 (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Interest Expense $ 2,755 $ 2,439 Amortization of Deferred Financing Costs to Interest Expense 180 174 Total Interest Expense $ 2,935 $ 2,613 Total Interest Paid $ 2,787 $ 2,544 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
INTEREST RATE SWAPS | |
Schedule of interest rate swap agreements | Information related to the Company’s interest rate swap agreements is noted below (in thousands): Hedged Item Effective Date Maturity Date Rate Amount Fair Value as of March 31, 2024 2026 Term Loan (1) 5/21/2021 5/21/2026 2.05% + 0.10% + $ 100,000 $ 5,012 2027 Term Loan (2) 9/30/2021 11/29/2024 0.51%+ 0.10% + $ 80,000 $ 2,499 2027 Term Loan (3) 9/30/2022 1/31/2027 3.84%+ 0.10% + $ 20,000 $ 204 2027 Term Loan (4) 11/29/2024 1/31/2027 1.61%+ 0.10% + $ 80,000 $ 3,912 Credit Facility (5) 3/1/2023 3/1/2028 3.21%+ 0.10%+ $ 50,000 $ 1,550 (1) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 2.05% plus 0.10% and the applicable spread on the $100.0 million 2026 Term Loan balance. The weighted average fixed interest rate of 2.05% , is comprised of: (i) rate swaps on $60.0 million of the 2026 Term Loan balance effective May 21, 2021, as amended on April 14, 2022 in connection with the 2026 Term Loan Amendment, to fix SOFR (prior to April 14, 2022, the swap was to fix LIBOR), and (ii) a rate swap on $40.0 million of the 2026 Term Loan Balance effective September 30, 2022, to fix SOFR. (2) As of March 31, 2024, the Company has utilized interest rate swaps to fix SOFR and achieve a weighted average fixed interest rate of 0.51% plus 0.10% and the applicable spread on $80.0 million of the $100.0 million 2027 Term Loan balance. The weighted average fixed interest rate of 0.51% , is comprised of two rate swaps on $80.0 million of the 2027 Term Loan balance effective September 30, 2021, as amended on April 14, 2022 in connection with the 2027 Term Loan Amendment, to fix SOFR (prior to April 14, 2022, the swap was to fix LIBOR). (3) As of March 31, 2024, the Company has utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.84% plus 0.10% and the applicable spread on $20.0 million of the $100.0 million 2027 Term Loan balance. (4) The interest rate swap agreement hedges $80.0 million of the $100.0 million 2027 Term Loan balance under different terms and commences concurrent to the interest rate agreements maturing on November 29, 2024 to extend the fixed interest rate through maturity on January 31, 2027. (5) As of March 31, 2024, the Company has utilized an interest rate swap to fix SOFR and achieve a fixed interest rate of 3.21% plus 0.10% and the applicable spread on $50.0 million of the outstanding balance on the Credit Facility. The swap was effective on March 1, 2023. |
COMMON STOCK AND EARNINGS PER_2
COMMON STOCK AND EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): Three Months Ended March 31, 2024 March 31, 2023 Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. $ (260) $ 3,339 Weighted Average Number of Common Shares Outstanding 13,621,208 14,000,553 Weighted Average Number of Common Shares Applicable to OP Units using Treasury Stock Method (1) 1,223,854 1,703,494 Total Shares Applicable to Diluted Earnings per Share 14,845,062 15,704,047 Per Common Share Data: Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. Basic $ (0.02) $ 0.24 Diluted $ (0.02) $ 0.21 (1) Includes the weighted average of 1,223,854 and 1,703,494 shares during the three months ended March 31, 2024 and 2023, respectively, underlying OP Units including (i) 1,223,854 shares underlying OP Units issued to CTO and (ii) 479,640 shares underlying OP Units issued to an unrelated third party, which OP Units were redeemed by PINE for an equivalent number of shares of common stock of PINE during the three months ended December 31, 2023. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCK-BASED COMPENSATION | |
Schedule of stock compensation expense | Stock compensation expense for the three months ended March 31, 2024 and 2023 is summarized as follows (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Stock Compensation Expense – Director Restricted Stock $ — $ — Stock Compensation Expense – Director Retainers Paid in Stock 79 80 Total Stock Compensation Expense $ 79 $ 80 (1) Director retainers are issued through additional paid in capital in arrears. Therefore, the change in additional paid in capital during the three months ended March 31, 2024 and 2023 reported on the consolidated statements of stockholders’ equity does not agree to the total non-cash compensation reported on the consolidated statements of cash flows. |
RELATED PARTY MANAGEMENT COMP_2
RELATED PARTY MANAGEMENT COMPANY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
RELATED PARTY MANAGEMENT COMPANY | |
Schedule of amount due to (from) parent company | The following table represents amounts due to (from) CTO (in thousands): As of Description March 31, 2024 December 31, 2023 Management Fee due to CTO $ 1,046 $ 1,062 Other 33 (10) Total (1) $ 1,079 $ 1,052 (1) Included in accrued expenses, see Note 11, “Accounts Payable, Accrued Expenses, and Other Liabilities”. |
BUSINESS SEGMENT DATA (Tables)
BUSINESS SEGMENT DATA (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
BUSINESS SEGMENT DATA | |
Schedule of operations in different segment | Information about the Company’s operations in different segments for the three months ended March 31, 2024 and 2023 is as follows (in thousands): Three Months Ended March 31, 2024 March 31, 2023 Revenues: Lease Income $ 11,464 $ 11,156 Interest Income from Commercial Loans and Investments 903 — Other Revenue 99 — Total Revenues $ 12,466 $ 11,156 Operating Income (Loss): Lease Income $ 9,536 $ 9,722 Interest Income from Commercial Loans and Investments 903 — Other Revenue 99 — General and Corporate Expenses (7,924) (7,850) Provision for Impairment (31) — Gain on Disposition of Assets — 4,453 Gain (Loss) on Extinguishment of Debt — 23 Total Operating Income $ 2,583 $ 6,348 Depreciation and Amortization: Income Properties $ 6,382 $ 6,335 Total Depreciation and Amortization $ 6,382 $ 6,335 Capital Expenditures: Income Properties $ 1,138 $ 102 Commercial Loans and Investments 3,597 — Total Capital Expenditures $ 4,735 $ 102 |
Schedule of Identifiable assets of each segment | Identifiable assets of each segment as of March 31, 2024 and December 31, 2023 are as follows (in thousands): As of March 31, 2024 December 31, 2023 Identifiable Assets: Income Properties $ 497,944 $ 503,291 Commercial Loans and Investments 38,306 35,080 Corporate and Other 22,771 26,189 Total Assets $ 559,021 $ 564,560 |
BUSINESS AND ORGANIZATION - Bus
BUSINESS AND ORGANIZATION - Business (Details) | 3 Months Ended |
Mar. 31, 2024 employee state property segment | |
Description of business | |
Number of real estate properties | 138 |
Number of states in which entity operates | state | 35 |
Number of operating segments | segment | 2 |
Entity number of employees | employee | 0 |
Single-tenant | |
Description of business | |
Number of real estate properties | 138 |
BUSINESS AND ORGANIZATION - Org
BUSINESS AND ORGANIZATION - Organization (Details) - Operating Partnership | 3 Months Ended |
Mar. 31, 2024 | |
PINE GP | |
Class of Stock [Line Items] | |
Ownership interest in Operating partnership | 91.80% |
CTO | |
Class of Stock [Line Items] | |
Ownership interest of manager in operating partnership | 8.20% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - General Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Number of operating segments | segment | 2 | ||
Number of reportable segments | segment | 0 | ||
Real estate depreciation, excluding intangible assets amortization | $ | $ 4.2 | $ 4 | |
Allowance for doubtful accounts | $ | $ 0.2 | $ 0.4 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Restricted Cash | |||
Restricted Cash | $ 2,833 | $ 9,712 | $ 59,269 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk - Revenues (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Benchmark | Customer Concentration Risk | Walgreens | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 11% | 12% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk - Square Footage (Details) - Real Estate Portfolio, Square Footage [Member] - Geographic Concentration Risk [Member] | 3 Months Ended |
Mar. 31, 2024 | |
Texas | |
Concentration Risk [Line Items] | |
Company's real estate portfolio (as a percent) | 13% |
New Jersey | |
Concentration Risk [Line Items] | |
Company's real estate portfolio (as a percent) | 11% |
Michigan | |
Concentration Risk [Line Items] | |
Company's real estate portfolio (as a percent) | 11% |
PROPERTY PORTFOLIO - Portfolio
PROPERTY PORTFOLIO - Portfolio Information (Details) ft² in Millions | Mar. 31, 2024 ft² property |
PROPERTY PORTFOLIO | |
Number of real estate properties | property | 138 |
Area of real estate property | ft² | 3.8 |
PROPERTY PORTFOLIO - Leasing Re
PROPERTY PORTFOLIO - Leasing Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease Income | ||
Lease Payments | $ 9,862 | $ 10,163 |
Variable Lease Payments | 1,602 | 993 |
Total Lease Income | $ 11,464 | $ 11,156 |
PROPERTY PORTFOLIO - Minimum Fu
PROPERTY PORTFOLIO - Minimum Future Base Rental Revenue on Non-cancelable Leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Minimum future base rental revenue on non-cancelable leases | |
Remainder of 2024 | $ 29,084 |
2025 | 37,830 |
2026 | 37,021 |
2027 | 33,353 |
2028 | 30,088 |
2029 | 25,817 |
2030 and Thereafter (Cumulative) | 75,096 |
Total | $ 268,289 |
PROPERTY PORTFOLIO - Properties
PROPERTY PORTFOLIO - Properties Acquired and Disposed (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) property | Mar. 31, 2023 USD ($) property | |
PROPERTY PORTFOLIO | ||
Number of real estate properties | 138 | |
Number of real estate properties disposed | 0 | |
Sales price | $ | $ 1,000 | |
Gain on Disposition of Assets | $ | $ 4,453 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
PROPERTY PORTFOLIO | ||
Number of real estate properties disposed | 10 | |
Sales price | $ | $ 56,200 | |
Gain on Disposition of Assets | $ | $ 4,500 | |
Single-tenant Net Lease Income Properties Acquired in 2024 | ||
PROPERTY PORTFOLIO | ||
Number of real estate properties | 1 | |
Single-tenant Net Lease Income Properties Acquired in 2023 | ||
PROPERTY PORTFOLIO | ||
Number of real estate properties | 0 |
COMMERCIAL LOANS AND INVESTME_3
COMMERCIAL LOANS AND INVESTMENTS - General Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Oct. 30, 2024 | Jul. 25, 2024 | Jan. 30, 2024 USD ($) item | Nov. 15, 2023 USD ($) Asset item | Oct. 30, 2023 USD ($) a | Jul. 25, 2023 USD ($) a | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Principal Payments Received on Commercial Loan Investments | $ 630 | |||||||
Borrowing Amount | 3,597 | |||||||
Original Face Amount | 45,825 | $ 38,625 | ||||||
Current Face Amount | 38,686 | 35,629 | ||||||
Carrying Value | 38,433 | 35,437 | ||||||
CECL Reserve | (387) | (357) | ||||||
Total Commercial Loans and Investments | 38,046 | 35,080 | ||||||
Wawa Land Development - Greenwood, IN | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Original Face Amount | 7,800 | |||||||
Current Face Amount | 7,014 | |||||||
Carrying Value | $ 6,984 | |||||||
Coupon Rate | 8.50% | |||||||
Wawa and McDonalds Anchored Land Development Antioch, TN | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Original Face Amount | 6,825 | $ 6,825 | ||||||
Current Face Amount | 4,633 | 4,615 | ||||||
Carrying Value | $ 4,592 | $ 4,568 | ||||||
Coupon Rate | 11% | 11% | ||||||
Mortgage Note - Portfolio | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Number of Portfolio assets | Asset | 41 | |||||||
Mortgage loans on real estate, extension term, number of option | item | 2 | |||||||
Mortgage loans on real estate, extension term | 1 year | |||||||
Increasing interest rate of mortgage loans | 0.25% | |||||||
Principal Payments Received on Commercial Loan Investments | $ 600 | |||||||
Original Face Amount | $ 24,000 | $ 24,000 | ||||||
Current Face Amount | $ 24,000 | 23,370 | 24,000 | |||||
Carrying Value | $ 23,265 | $ 23,885 | ||||||
Coupon Rate | 8.75% | 8.75% | 8.75% | |||||
Retail Outparcels Lawrenceville Ga [Member] | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Original Face Amount | $ 7,200 | $ 7,200 | ||||||
Current Face Amount | 3,601 | |||||||
Carrying Value | $ 3,519 | |||||||
Coupon Rate | 11.25% | |||||||
Construction Loan | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Coupon Rate | 11.25% | |||||||
Construction Loan | Wawa Land Development - Greenwood, IN | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Area of Land | a | 33 | 33 | ||||||
Borrowing Amount | $ 3,600 | $ 7,100 | ||||||
Original Face Amount | $ 7,800 | 7,800 | ||||||
Current Face Amount | 7,082 | |||||||
Carrying Value | $ 7,057 | |||||||
Coupon Rate | 9.25% | 8.50% | 8.50% | |||||
Construction Loan | Wawa and McDonalds Anchored Land Development Antioch, TN | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Area of Land | a | 5 | |||||||
Borrowing Amount | $ 4,600 | |||||||
Original Face Amount | $ 6,800 | |||||||
Coupon Rate | 9.50% | 11% | ||||||
Construction Loan | Retail Outparcels Lawrenceville Ga [Member] | ||||||||
COMMERCIAL LOANS AND INVESTMENTS | ||||||||
Retail outparcels | item | 6 |
COMMERCIAL LOANS AND INVESTME_4
COMMERCIAL LOANS AND INVESTMENTS - Carrying Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
COMMERCIAL LOANS AND INVESTMENTS | ||
Current Face Amount | $ 38,686 | $ 35,629 |
Unaccreted Origination Fees | (253) | (192) |
CECL Reserve | (387) | (357) |
Total Commercial Loans and Investments | $ 38,046 | $ 35,080 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Carrying value and estimated fair value of financial instruments | |||
Restricted Cash | $ 2,833 | $ 9,712 | $ 59,269 |
Commercial Loans and Investments | 38,046 | 35,080 | |
Reported Value Measurement | Fair Value, Inputs, Level 1 | |||
Carrying value and estimated fair value of financial instruments | |||
Cash and Cash Equivalents | 5,145 | 4,019 | |
Restricted Cash | 2,833 | 9,712 | |
Reported Value Measurement | Fair Value, Inputs, Level 2 | |||
Carrying value and estimated fair value of financial instruments | |||
Commercial Loans and Investments | 38,046 | 35,080 | |
Long-Term Debt | 272,256 | 275,677 | |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | |||
Carrying value and estimated fair value of financial instruments | |||
Cash and Cash Equivalents | 5,145 | 4,019 | |
Restricted Cash | 2,833 | 9,712 | |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | |||
Carrying value and estimated fair value of financial instruments | |||
Commercial Loans and Investments | 39,879 | 36,288 | |
Long-Term Debt | $ 256,895 | $ 258,613 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ 13,177 | $ 10,957 |
Face amount of debt | 273,000 | |
2026 Term Loan Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ 5,012 | |
Interest rate | 2.05% | |
Face amount of debt | $ 100,000 | |
Interest rate swaps amount | $ 100,000 | |
2026 Term Loan Interest Rate Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Assets, Fair Value Disclosure [Abstract] | ||
Applicable spread | 0.10% | |
2027 Term Loan Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ 6,600 | |
Interest rate | 1.18% | |
Face amount of debt | $ 100,000 | |
2027 Term Loan Interest Rate Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Assets, Fair Value Disclosure [Abstract] | ||
Applicable spread | 0.10% | |
Interest Rate Swaps, 2027 Term Loan, Effective 30 September 2021, Matures 31 January 2027 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps amount | $ 80,000 | |
Interest Rate Swap, 2027 Term Loan, Effective 29 November 2024, Matures 31 January 2027 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ 3,912 | |
Interest rate | 1.61% | |
Interest rate swaps amount | $ 80,000 | |
Interest Rate Swap, 2027 Term Loan, Effective 29 November 2024, Matures 31 January 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Assets, Fair Value Disclosure [Abstract] | ||
Applicable spread | 0.10% | |
Credit Facility Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ 1,550 | |
Interest rate | 3.21% | |
Face amount of debt | $ 50,000 | |
Interest rate swaps amount | $ 50,000 | |
Credit Facility Interest Rate Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Assets, Fair Value Disclosure [Abstract] | ||
Applicable spread | 0.10% | |
Fair Value, Recurring | 2026 Term Loan Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ 5,012 | 4,314 |
Fair Value, Recurring | 2027 Term Loan Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | 6,615 | 5,793 |
Fair Value, Recurring | Credit Facility Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | 1,550 | 716 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | 2026 Term Loan Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | 5,012 | 4,314 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | 2027 Term Loan Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | 6,615 | 5,793 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Credit Facility Interest Rate Swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest Rate Swap | $ 1,550 | $ 716 |
INTANGIBLE ASSETS AND LIABILI_3
INTANGIBLE ASSETS AND LIABILITIES - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | $ 70,074 | $ 70,074 |
Accumulated Amortization | (23,055) | (20,782) |
Sub-total Intangible Lease Assets-Net | 47,019 | 49,292 |
Intangible Lease Liabilities | ||
Value of Below Market In-Place Leases | (6,770) | (6,770) |
Sub-total Intangible Lease Liabilities | (6,770) | (6,770) |
Accumulated Amortization | 2,081 | 1,863 |
Sub-total Intangible Lease Liabilities -Net | (4,689) | (4,907) |
Total Intangible Assets and Liabilities-Net | 42,330 | 44,385 |
Value of In-Place Leases | ||
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | 48,267 | 48,267 |
Value of Above Market In-Place Leases | ||
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | 2,942 | 2,942 |
Value of Intangible Leasing Costs | ||
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | $ 18,865 | $ 18,865 |
INTANGIBLE ASSETS AND LIABILI_4
INTANGIBLE ASSETS AND LIABILITIES - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INTANGIBLE ASSETS AND LIABILITIES | ||
Amortization Expense | $ 2,165 | $ 2,290 |
Accretion to Properties Revenue | (110) | (87) |
Net Amortization of Intangible Assets and Liabilities | $ 2,055 | $ 2,203 |
INTANGIBLE ASSETS AND LIABILI_5
INTANGIBLE ASSETS AND LIABILITIES - Summary of Estimated Amortization and Accretion (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Future Amortization Expense | ||
Sub-total Intangible Lease Assets-Net | $ 47,019 | $ 49,292 |
Future Accretion to Property Revenue | ||
Sub-total Intangible Lease Liabilities -Net | (4,689) | $ (4,907) |
Net Future Amortization of Intangible Assets and Liabilities | ||
Remainder of 2024 | 5,965 | |
2025 | 7,423 | |
2026 | 6,972 | |
2027 | 5,596 | |
2028 | 4,497 | |
2029 | 3,802 | |
2030 and Thereafter | 8,075 | |
Total | $ 42,330 | |
Amount allocated of total acquisition cost | ||
Weighted average amortization period | 8 years 9 months 18 days | |
Future Amortization | ||
Future Amortization Expense | ||
Remainder of 2024 | $ 6,301 | |
2025 | 7,840 | |
2026 | 7,414 | |
2027 | 6,021 | |
2028 | 4,864 | |
2029 | 4,096 | |
2030 and Thereafter | 8,614 | |
Sub-total Intangible Lease Assets-Net | 45,150 | |
Future Accretion to Income Property Revenue | ||
Future Accretion to Property Revenue | ||
Remainder of 2024 | (336) | |
2025 | (417) | |
2026 | (442) | |
2027 | (425) | |
2028 | (367) | |
2029 | (294) | |
2030 and Thereafter | (539) | |
Sub-total Intangible Lease Liabilities -Net | $ (2,820) |
PROVISION FOR IMPAIRMENT (Detai
PROVISION FOR IMPAIRMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
PROVISION FOR IMPAIRMENT | ||
Impairment charge | $ 31 | |
Income Properties | ||
PROVISION FOR IMPAIRMENT | ||
Impairment charge | 0 | $ 0 |
Commercial Loans and Investments | ||
PROVISION FOR IMPAIRMENT | ||
Impairment charge | $ 100 | $ 0 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Assets | ||
Tenant Receivables - Net of Allowance for Doubtful Accounts | $ 902 | $ 809 |
Prepaid Insurance | 570 | 838 |
Deposits on Acquisitions | 10 | 60 |
Prepaid Expenses, Deposits, and Other | 2,505 | 1,757 |
Deferred Financing Costs-Net | 1,089 | 1,190 |
Interest Rate Swaps | 13,177 | 10,957 |
Operating Leases - Right-of-Use Asset | 1,328 | 1,434 |
Total Other Assets | 19,581 | 17,045 |
Allowance for doubtful accounts | $ 200 | $ 400 |
OPERATING LAND LEASES - General
OPERATING LAND LEASES - General Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Operating Leases - Right-of-Use Asset | $ 1,328 | $ 1,434 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Other Assets | Other Assets | |
Operating Leases - Liability | $ 1,352 | $ 1,454 | |
Operating Lease, Liability, Statement of Financial Position | Accounts Payable, Accrued Expenses, and Other Liabilities | Accounts Payable, Accrued Expenses, and Other Liabilities | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Amortization expenses | $ 100 | $ 100 |
OPERATING LAND LEASES - Summary
OPERATING LAND LEASES - Summary of Operating Land Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING LAND LEASES | ||
Operating Cash Outflows | $ 46 | $ 64 |
Weighted Average Remaining Lease Term | 7 years 2 months 12 days | 7 years 8 months 12 days |
Weighted Average Discount Rate | 2% | 2% |
OPERATING LAND LEASES - Minimum
OPERATING LAND LEASES - Minimum Future Lease Payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Lease Payments | |
Remainder of 2024 | $ 138 |
2025 | 192 |
2026 | 202 |
2027 | 202 |
2028 | 202 |
2029 | 202 |
2030 and Thereafter | 288 |
Total Lease Payments | $ 1,426 |
OPERATING LAND LEASES - Gross D
OPERATING LAND LEASES - Gross Difference (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Lease Liabilities, Gross Difference, Amount [Abstract] | ||
Total Lease Payments | $ 1,426 | |
Imputed Interest | (74) | |
Operating Leases - Liability | $ 1,352 | $ 1,454 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets Held for Sale | ||
Real Estate-Net | $ 6,374 | $ 6,374 |
Intangible Lease Assets-Net | 749 | 749 |
Intangible Lease Liabilities-Net | (39) | (39) |
Straight-Line Rent Adjustment | 173 | 173 |
Other Assets | 17 | 17 |
Assets Prior to Provision for Impairment | 7,274 | 7,274 |
Less Provision for Impairment | (2,864) | (2,864) |
Total Assets Held for Sale | $ 4,410 | $ 4,410 |
ACCOUNTS PAYABLE, ACCRUED EXP_3
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ACCOUNTS PAYABLE, ACCRUED EXPENSES, AND OTHER LIABILITIES | ||
Accounts Payable | $ 20 | $ 30 |
Accrued Expenses | 2,977 | 2,449 |
Tenant Security Deposits | 90 | 78 |
Due to CTO | 1,079 | 1,052 |
Interest Rate Swap | 134 | |
Loan Reserves | 590 | 539 |
Operating Leases - Liability | 1,352 | 1,454 |
Total Accounts Payable, Accrued Expenses, and Other Liabilities | $ 6,108 | $ 5,736 |
Other Liability, Related Party, Type | Related party | Related party |
LONG-TERM DEBT - Outstanding In
LONG-TERM DEBT - Outstanding Indebtedness (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Sep. 30, 2021 | May 21, 2021 | |
Long-term debt | |||
Total Debt | $ 273,000 | ||
Weighted-Average Rate | 3.80% | ||
Credit Facility | |||
Long-term debt | |||
Total Debt | $ 73,000 | ||
Stated Interest Rate | 3.21% | ||
Interest Rate | 0.10% | ||
Outstanding on credit facility | $ 50,000 | ||
Credit Facility | Minimum | |||
Long-term debt | |||
Interest Rate | 1.25% | ||
Credit Facility | Maximum | |||
Long-term debt | |||
Interest Rate | 2.20% | ||
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Long-term debt | |||
Interest Rate | 0.10% | ||
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | |||
Long-term debt | |||
Interest Rate | 1.25% | ||
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | |||
Long-term debt | |||
Interest Rate | 2.20% | ||
2026 Term Loan | |||
Long-term debt | |||
Total Debt | $ 100,000 | $ 60,000 | |
Weighted-Average Rate | 2.05% | ||
2026 Term Loan | Minimum | |||
Long-term debt | |||
Interest Rate | 1.35% | ||
2026 Term Loan | Maximum | |||
Long-term debt | |||
Interest Rate | 1.95% | ||
2026 Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Long-term debt | |||
Interest Rate | 0.10% | ||
2027 Term Loan | |||
Long-term debt | |||
Total Debt | $ 100,000 | $ 80,000 | |
Weighted-Average Rate | 1.18% | ||
2027 Term Loan | Minimum | |||
Long-term debt | |||
Interest Rate | 1.25% | ||
2027 Term Loan | Maximum | |||
Long-term debt | |||
Interest Rate | 1.90% | ||
2027 Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Long-term debt | |||
Interest Rate | 0.10% |
LONG-TERM DEBT - Credit Facilit
LONG-TERM DEBT - Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Long-term debt | ||
Long-term debt | $ 272,256 | $ 275,677 |
Credit Facility | ||
Long-term debt | ||
Interest at a fixed rate | 0.10% | |
Percentage of borrowing capacity | 50% | |
Current commitment under credit facility, amount | $ 250,000 | |
Amount outstanding | 50,000 | |
Long-term debt | $ 73,000 | |
Credit Facility | Minimum | ||
Long-term debt | ||
Interest at a fixed rate | 1.25% | |
Marginal rate of fee on unused credit limit | 0.15% | |
Credit Facility | Maximum | ||
Long-term debt | ||
Percentage of interest rate deductions | 0.025% | |
Interest at a fixed rate | 2.20% | |
Marginal rate of fee on unused credit limit | 0.25% | |
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Long-term debt | ||
Interest at a fixed rate | 0.10% | |
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||
Long-term debt | ||
Interest at a fixed rate | 1.25% | |
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||
Long-term debt | ||
Interest at a fixed rate | 2.20% | |
Credit Facility Maturing January 31, 2027 | ||
Long-term debt | ||
Maximum borrowing capacity | $ 250,000 | |
Extension term | 1 year | |
Term Loan | ||
Long-term debt | ||
Maximum borrowing capacity including accordion feature | $ 750,000 |
LONG-TERM DEBT - Term Loan (Det
LONG-TERM DEBT - Term Loan (Details) - USD ($) $ in Thousands | May 21, 2021 | Mar. 31, 2024 | Apr. 14, 2022 | Sep. 30, 2021 |
Long-term debt | ||||
Face amount of debt | $ 273,000 | |||
Term Loan | ||||
Long-term debt | ||||
Maximum borrowing capacity including accordion feature | 750,000 | |||
Credit Facility Maturing January 31, 2027 | ||||
Long-term debt | ||||
Maximum borrowing capacity | 250,000 | |||
2026 Term Loan | ||||
Long-term debt | ||||
Face amount of debt | $ 60,000 | 100,000 | ||
Debt instrument term (in years) | 5 years | |||
Additional borrowing capacity | $ 40,000 | |||
Aggregate amount of incremental Term loan | 100,000 | |||
2027 Term Loan | ||||
Long-term debt | ||||
Face amount of debt | $ 100,000 | $ 80,000 | ||
Additional borrowing capacity | 20,000 | |||
Aggregate amount of incremental Term loan | $ 100,000 |
LONG-TERM DEBT - Mortgage Notes
LONG-TERM DEBT - Mortgage Notes Payable (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
LONG-TERM DEBT | |
Face amount of debt | $ 273,000 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Long-term debt | ||
Long-Term Debt, Gross | $ 273,000 | |
Financing Costs, net of Accumulated Amortization | (744) | $ (823) |
Total Long-Term Debt | 272,256 | 275,677 |
Credit Facility | ||
Long-term debt | ||
Long-Term Debt, Gross | 73,000 | 76,500 |
Total Long-Term Debt | 73,000 | |
2026 Term Loan | ||
Long-term debt | ||
Long-Term Debt, Gross | 100,000 | 100,000 |
2027 Term Loan | ||
Long-term debt | ||
Long-Term Debt, Gross | $ 100,000 | $ 100,000 |
LONG-TERM DEBT - Payments Appli
LONG-TERM DEBT - Payments Applicable to Reduction of Principal (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Payments applicable to reduction of principal amounts | |
Remainder of 2024 | $ 0 |
2025 | 0 |
2026 | 100,000 |
2027 | 173,000 |
2028 | 0 |
2029 | 0 |
2030 and Thereafter | 0 |
Total Long-Term Debt - Face Value | $ 273,000 |
LONG-TERM DEBT - Carrying Value
LONG-TERM DEBT - Carrying Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
LONG-TERM DEBT | ||
Current Face Amount | $ 273,000 | |
Financing Costs, net of Accumulated Amortization | (744) | $ (823) |
Total Long-Term Debt | 272,256 | 275,677 |
Deferred financing costs-net | $ 1,089 | $ 1,190 |
LONG-TERM DEBT - Interest Expen
LONG-TERM DEBT - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
LONG-TERM DEBT | ||
Interest Expense | $ 2,755 | $ 2,439 |
Amortization of Deferred Financing Costs to Interest Expense | 180 | 174 |
Total Interest Expense | 2,935 | 2,613 |
Total Interest Paid | $ 2,787 | $ 2,544 |
INTEREST RATE SWAPS (Details)
INTEREST RATE SWAPS (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) instrument | Dec. 31, 2023 USD ($) | Sep. 30, 2021 USD ($) | |
INTEREST RATE SWAPS | |||
Effective percentage of interest rate swaps percentage | 100% | ||
Face amount of debt | $ 273,000 | ||
Fair Value | $ 13,177 | $ 10,957 | |
Derivative Asset, Statement of Financial Position | Other Assets | Other Assets | |
Derivative Liability, Statement of Financial Position | Accounts Payable, Accrued Expenses, and Other Liabilities | Accounts Payable, Accrued Expenses, and Other Liabilities | |
2027 Term Loan | |||
INTEREST RATE SWAPS | |||
Face amount of debt | $ 100,000 | $ 80,000 | |
2026 Term Loan Interest Rate Swap | |||
INTEREST RATE SWAPS | |||
Interest rate | 2.05% | ||
Interest rate swaps amount | $ 100,000 | ||
Face amount of debt | 100,000 | ||
Fair Value | $ 5,012 | ||
2026 Term Loan Interest Rate Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
INTEREST RATE SWAPS | |||
Applicable spread | 0.10% | ||
2026 Term Loan balance effective May 21, 2021 | |||
INTEREST RATE SWAPS | |||
Interest rate swaps amount | $ 60,000 | ||
2026 Term Loan Balance effective September 30, 2022 | |||
INTEREST RATE SWAPS | |||
Interest rate swaps amount | $ 40,000 | ||
2027 Term Loan Interest Rate Swap | |||
INTEREST RATE SWAPS | |||
Interest rate | 1.18% | ||
Face amount of debt | $ 100,000 | ||
Fair Value | $ 6,600 | ||
2027 Term Loan Interest Rate Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
INTEREST RATE SWAPS | |||
Applicable spread | 0.10% | ||
Interest Rate Swaps, 2027 Term Loan, Effective 30 September 2021, Matures 31 January 2027 | |||
INTEREST RATE SWAPS | |||
Derivative, number of instruments held | instrument | 2 | ||
Interest rate swaps amount | $ 80,000 | ||
Interest Rate Swap, 2027 Term Loan, Effective 30 September 2021, Matures 29 November 2024 | |||
INTEREST RATE SWAPS | |||
Interest rate | 0.51% | ||
Interest rate swaps amount | $ 80,000 | ||
Fair Value | $ 2,499 | ||
Interest Rate Swap, 2027 Term Loan, Effective 30 September 2021, Matures 29 November 2024 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
INTEREST RATE SWAPS | |||
Applicable spread | 0.10% | ||
Interest Rate Swap, 2027 Term Loan, Effective 29 November 2024, Matures 31 January 2027 | |||
INTEREST RATE SWAPS | |||
Interest rate | 1.61% | ||
Interest rate swaps amount | $ 80,000 | ||
Fair Value | $ 3,912 | ||
Interest Rate Swap, 2027 Term Loan, Effective 29 November 2024, Matures 31 January 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
INTEREST RATE SWAPS | |||
Applicable spread | 0.10% | ||
Interest Rate Swap, 2027 Term Loan, Effective 30 September 2022, Matures 31 January 2027 | |||
INTEREST RATE SWAPS | |||
Interest rate | 3.84% | ||
Interest rate swaps amount | $ 20,000 | ||
Fair Value | $ 204 | ||
Interest Rate Swap, 2027 Term Loan, Effective 30 September 2022, Matures 31 January 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
INTEREST RATE SWAPS | |||
Applicable spread | 0.10% | ||
Credit Facility Interest Rate Swap | |||
INTEREST RATE SWAPS | |||
Interest rate | 3.21% | ||
Interest rate swaps amount | $ 50,000 | ||
Face amount of debt | 50,000 | ||
Fair Value | $ 1,550 | ||
Credit Facility Interest Rate Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
INTEREST RATE SWAPS | |||
Applicable spread | 0.10% |
EQUITY - Shelf Registration & A
EQUITY - Shelf Registration & ATM Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 27, 2023 | Oct. 21, 2022 | Dec. 14, 2020 | Dec. 01, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity | |||||||||
Proceeds from Issuance of Stock | $ (51) | $ 12,388 | |||||||
Net proceeds | $ (51) | $ 12,388 | |||||||
ATM Program | |||||||||
Equity | |||||||||
Proceeds from Issuance of Stock | $ 100,000 | ||||||||
Share issued | 446,167 | 761,902 | |||||||
Gross proceeds form the issuance of common stock | $ 8,700 | $ 14,000 | |||||||
Average price per share | $ 19.44 | $ 18.36 | |||||||
Net proceeds | $ 8,600 | $ 13,800 | |||||||
Payment of Initial Public Offering Transaction Costs | $ 100 | $ 200 | |||||||
Market Equity Offering Program 2022 | |||||||||
Equity | |||||||||
Proceeds from Issuance of Stock | $ 150,000 | ||||||||
Share issued | 665,929 | 665,929 | 1,479,241 | ||||||
Gross proceeds form the issuance of common stock | $ 12,600 | $ 12,600 | $ 27,800 | ||||||
Average price per share | $ 18.96 | $ 18.96 | $ 18.81 | ||||||
Net proceeds | $ 12,400 | $ 12,400 | $ 27,400 | ||||||
Payment of Initial Public Offering Transaction Costs | $ 200 | $ 200 | $ 400 | ||||||
Market Equity Offering 2020 and 2022 Program | |||||||||
Equity | |||||||||
Share issued | 1,925,408 | ||||||||
Gross proceeds form the issuance of common stock | $ 36,500 | ||||||||
Average price per share | $ 18.96 | ||||||||
Net proceeds | $ 36,000 | ||||||||
Payment of Initial Public Offering Transaction Costs | $ 500 | ||||||||
Maximum | |||||||||
Equity | |||||||||
Proceeds from Issuance of Stock | $ 350,000 | $ 350,000 |
EQUITY - Follow-on Public Offer
EQUITY - Follow-on Public Offering (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity | |||
Net proceeds | $ (51) | $ 12,388 | |
Follow on Public Offering | |||
Equity | |||
Share issued | 3,220,000 | ||
Net proceeds | $ 54,300 | ||
Over-Allotment Option | |||
Equity | |||
Share issued | 420,000 |
EQUITY - Noncontrolling Interes
EQUITY - Noncontrolling Interest (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||
Partners' capital account, units issued | 479,640 | |
CTO | ||
Class of Stock [Line Items] | ||
Partners' capital account, units issued | 1,223,854 | |
CTO | Operating Partnership | ||
Class of Stock [Line Items] | ||
Ownership interest of manager in operating partnership | 8.20% | |
Partners' capital account, units issued | 1,223,854 |
EQUITY - Dividends (Details)
EQUITY - Dividends (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends | ||
Dividends on common stock and OP Units declared | $ 0.275 | $ 0.275 |
COMMON STOCK AND EARNINGS PER_3
COMMON STOCK AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Available to Common Shareholders: | ||||
Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. - Basic | $ (260) | $ 3,339 | ||
Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. - Diluted | $ (260) | $ 3,339 | ||
Common Shares Applicable to Stock | ||||
Weighted Average Number of Common Shares Outstanding (in shares) | 13,621,208 | 14,000,553 | ||
Weighted Average Number of Common Shares Applicable to OP Units using Treasury Stock Method (in shares) | 1,223,854 | 1,703,494 | 1,703,494 | |
Total Shares Applicable to Diluted Earnings Per Share (in shares) | 14,845,062 | 15,704,047 | ||
Per Common Share Data: | ||||
Basic (in dollars per share) | $ (0.02) | $ 0.24 | ||
Diluted (in dollars per share) | $ (0.02) | $ 0.21 | ||
Partners' capital account, units issued | 479,640 | |||
CTO | ||||
Per Common Share Data: | ||||
Partners' capital account, units issued | 1,223,854 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jul. 31, 2023 | May 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase | $ 775 | ||||
Repurchases of common stock | $ 0 | ||||
$5 Million Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 5,000 | ||||
Shares repurchased (in shares) | 23,889 | ||||
Stock Repurchase | $ 400 | ||||
Average price per share of stock repurchased | $ 15.22 | ||||
2023 $5.0 Million Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 5,000 | ||||
2023 $15.0 Million Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 15,000 | $ 15,000 | $ 15,000 | ||
Shares repurchased (in shares) | 45,768 | 875,122 | |||
Stock Repurchase | $ 800 | $ 14,200 | |||
Average price per share of stock repurchased | $ 16.90 | $ 16.26 |
STOCK-BASED COMPENSATION - Gene
STOCK-BASED COMPENSATION - General Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) D shares | Mar. 31, 2023 USD ($) shares | |
STOCK-BASED COMPENSATION | ||
Stock compensation expense | $ 79 | $ 80 |
Non employee | Restricted Shares | ||
STOCK-BASED COMPENSATION | ||
Period for average closing price | D | 20 | |
Shares issued (in shares) | shares | 5,131 | 4,776 |
Stock compensation expense | $ 80 | $ 80 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 79 | $ 80 |
Director Retainers Paid in Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 79 | $ 80 |
RELATED PARTY MANAGEMENT COMP_3
RELATED PARTY MANAGEMENT COMPANY - General Information (Details) | 3 Months Ended | 12 Months Ended | 52 Months Ended | ||||||||||||
Sep. 27, 2023 USD ($) | Jan. 05, 2022 USD ($) property | Apr. 20, 2021 USD ($) | Apr. 06, 2021 USD ($) property | Dec. 01, 2020 USD ($) | Nov. 27, 2019 USD ($) shares | Nov. 26, 2019 USD ($) | Mar. 31, 2024 USD ($) property shares | Dec. 31, 2023 $ / shares shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Mar. 31, 2024 property shares | Apr. 02, 2021 property | |
Related Party Transaction [Line Items] | |||||||||||||||
Stock Issuance, Net of Equity Issuance Costs | $ (51,000) | $ 12,388,000 | |||||||||||||
Partners' Capital Account, Units Issued | shares | 479,640 | ||||||||||||||
Number of properties sold | property | 0 | 0 | |||||||||||||
Revenue | $ 99,000 | ||||||||||||||
Revenue Sharing Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenue | 100,000 | ||||||||||||||
Maximum | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock Issuance, Net of Equity Issuance Costs | $ 350,000,000 | $ 350,000,000 | |||||||||||||
CTO Realty Growth, Inc. and Certain of its Subsidiaries | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of properties sold | property | 1 | 1 | 6 | ||||||||||||
Sales price of property | $ 6,900,000 | $ 44,500,000 | $ 11,500,000 | ||||||||||||
CTO | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock Issuance, Net of Equity Issuance Costs | $ 5,000,000 | $ 2,100,000 | $ 2,700,000 | $ 100,000 | |||||||||||
Share issued | shares | 293,024 | 0 | 129,271 | 155,665 | 8,088 | 293,024 | |||||||||
Average price per share | $ / shares | $ 16.21 | $ 16.21 | $ 17.57 | ||||||||||||
Partners' Capital Account, Units Issued | shares | 1,223,854 | ||||||||||||||
CTO | Revenue Sharing Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Incentive fee | $ 0 | ||||||||||||||
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% | ||||||||||||||
Incentive fee | $ 0 | ||||||||||||||
Multiplying factor of outperformance amount with weighted average shares (as a percent) | 15% | ||||||||||||||
Management agreement renewal term | 1 year | ||||||||||||||
Voting rights (as a percent) | 66.67% | ||||||||||||||
Notice period | 30 days | ||||||||||||||
Payment of management fees | $ 1,000,000 | 1,100,000 | |||||||||||||
Payment of dividend | $ 600,000 | $ 600,000 | |||||||||||||
CTO | Subsidiaries [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Share issued | shares | 1,108,814 | ||||||||||||||
Average price per share | $ / shares | $ 17.65 | ||||||||||||||
Percentage of outstanding common stock | 15.70% | ||||||||||||||
Cash investment | $ 35,600,000 | ||||||||||||||
CTO | IPO | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock Issuance, Net of Equity Issuance Costs | $ 8,000,000 | ||||||||||||||
Share issued | shares | 421,053 | ||||||||||||||
CTO | Private Placement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Stock Issuance, Net of Equity Issuance Costs | $ 7,500,000 | ||||||||||||||
Share issued | shares | 394,737 |
RELATED PARTY MANAGEMENT COMP_4
RELATED PARTY MANAGEMENT COMPANY - Due to (from) CTO (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Related Party Transaction [Line Items] | ||
Other liabilities | $ 1,079 | $ 1,052 |
CTO | CTO Realty Growth, Inc. | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 1,079 | 1,052 |
CTO | Management Fee | CTO Realty Growth, Inc. | ||
Related Party Transaction [Line Items] | ||
Other liabilities | 1,046 | 1,062 |
CTO | Other | CTO Realty Growth, Inc. | ||
Related Party Transaction [Line Items] | ||
Other liabilities | $ 33 | |
Other receivables | $ (10) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Mar. 31, 2024 USD ($) loan |
Other Commitments [Line Items] | |
Number of construction loans committed to fund | loan | 3 |
Construction Loan | |
Other Commitments [Line Items] | |
Other commitment | $ | $ 6.5 |
BUSINESS SEGMENT DATA - General
BUSINESS SEGMENT DATA - General Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 loan segment | Mar. 31, 2023 | Dec. 31, 2023 | |
BUSINESS SEGMENT DATA | |||
Number of operating segments | segment | 2 | ||
Commercial Real Estate Portfolio Segment | |||
BUSINESS SEGMENT DATA | |||
Number of commercial loan investment | loan | 4 | ||
Product concentration | Identifiable Assets | Income Properties | |||
BUSINESS SEGMENT DATA | |||
Concentration risk (as a percent) | 89% | 89% | |
Product concentration | Base Rent Revenues | Income Properties | |||
BUSINESS SEGMENT DATA | |||
Concentration risk (as a percent) | 92% | 100% |
BUSINESS SEGMENT DATA - Operati
BUSINESS SEGMENT DATA - Operations in Different Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Lease Income | $ 11,464 | $ 11,156 |
Interest Income from Commercial Loans and Investments | 903 | |
Other Revenue | 99 | |
Total Revenues | 12,466 | 11,156 |
Operating Income (Loss): | ||
General and Corporate Expenses | (7,924) | (7,850) |
Provision for Impairment | (31) | |
Gain on Disposition of Assets | 4,453 | |
Gain (Loss) on Extinguishment of Debt | 23 | |
Total Operating Income | 2,583 | 6,348 |
Depreciation and Amortization | 6,382 | 6,335 |
Capital Expenditures | 4,735 | 102 |
Other | ||
Operating Income (Loss): | ||
Gross profit | 99 | |
Income Properties | Operating Segments | ||
Operating Income (Loss): | ||
Gross profit | 9,536 | 9,722 |
Depreciation and Amortization | 6,382 | 6,335 |
Capital Expenditures | 1,138 | $ 102 |
Commercial Loan Investments | Operating Segments | ||
Operating Income (Loss): | ||
Gross profit | 903 | |
Capital Expenditures | $ 3,597 |
BUSINESS SEGMENT DATA - Identif
BUSINESS SEGMENT DATA - Identifiable Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
BUSINESS SEGMENT DATA | ||
Total Assets | $ 559,021 | $ 564,560 |
Corporate and Other | ||
BUSINESS SEGMENT DATA | ||
Total Assets | 22,771 | 26,189 |
Income Properties | Operating Segments | ||
BUSINESS SEGMENT DATA | ||
Total Assets | 497,944 | 503,291 |
Commercial Loan Investments | Operating Segments | ||
BUSINESS SEGMENT DATA | ||
Total Assets | $ 38,306 | $ 35,080 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (260) | $ 3,339 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |