Investor Presentation
Investor Presentation
National, Investment Grade Tenant-Focused Net Lease Portfolio
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Ticker Symbol (NYSE) |
PINE |
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Equity Market Capitalization |
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Total Enterprise Value (TEV) |
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TEV Per Square Foot |
|
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Implied Cap Rate |
7.9% |
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Annualized Dividend Yield |
6.7% |
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Common Shares & OP Units Outstanding2 |
15.5M |
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Number of |
138 |
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Number of States with a Property |
35 |
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Total Portfolio Square Feet |
3.9M |
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Current Occupancy |
99.1% |
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Annualized Base Rent (ABR) |
|
|
% of ABR from Investment Grade-Rated Tenants1 |
64% |
|
% of ABR from Credit Rated Tenants1 |
87% |
As of
1. A credit rated, or investment grade rated tenant (rating of BBB-, Baa3 or NAIC-2 or higher) is a tenant or the parent of a tenant with a credit rating from
|
2. As of |
2 |
|
© 2023 |
Alpine's Value Proposition
Meaningful Valuation Upside with In-Place Yield and Long-Term Growth
Accretive Asset Recycling Driving Attractive Portfolio Metrics
Pure play, 100% retail portfolio growing through accretive asset recycling of predominantly non-investment grade assets at attractive pricing, with reinvestment focused on investment grade-rated tenants and high-quality assets with strong real estate fundamentals.
Opportunity to Invest Below Replacement Cost
PINE's total enterprise value (TEV) is
Significant Discount to
PINE trades at a significant discount compared to its investment grade-focused peers, implying considerable valuation upside.
Stable & Attractive Dividend
PINE has grown its quarterly dividend by 37.5% since the beginning of 2020 and now
provides one of the highest dividend yields of its net lease peer group.
PINE's top 10 tenants now include investment grade-rated industry leaders such as:
- Total Enterprise Value of
$124 per square foot $100,120 Total Portfolio Weighted Average 5-Mile Average Household Income2- 114,475 Total Portfolio Weighted Average
5-Mile Total Population2
|
1 |
13.9x |
|||||||||||||
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Multiple |
13.6x |
13.5x |
||||||||||||
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12.3x |
12.1x |
11.3x |
||||||||||||
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FFO |
11.0x |
|||||||||||||
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9.2x |
||||||||||||||
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2023E |
||||||||||||||
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ADC |
|
NTST |
EPRT |
O |
PINE |
NNN |
SRC |
|||||||
|
6.7% |
|||||||
|
Payout Ratio % |
PINE |
O |
ADC |
SRC |
NTST |
NNN |
EPRT |
|
|
|||||||
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2023E FFO Payout Ratio1 |
Dividend Yield1 |
As of
1. All dividend yields, payout ratios and 2023E FFO multiples are based on the closing stock price on
|
2. Based on 2023 Average Household Income (5-mile) and 2023 Total Population (5-mile) data from Esri. |
3 |
© 2023
PINE has demonstrated a consistent ability to sell retail properties at attractive valuations, regardless of the tenant credit quality, to drive accretive acquisitions of predominantly investment grade-rated tenants at an average positive spread of more than 100 basis points between its retail disposition and retail acquisition cap rates.
|
5.8% |
5.5% |
5.8% |
5.5% |
6.5% |
6.1% |
6.2% |
6.3% |
Retail Disposition Cap Rates
Retail Properties Sold
|
Q3 2020 |
Q3 2021 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
|
As of |
4 |
© 2023
Opportunity to Invest Below Replacement Cost
Value1 Per Square Foot2
NNN
EPRT
Peer Average
O
ADC
NTST
High-Quality Portfolio with Valuation Upside
PINE's total enterprise value (TEV) is
Better Margin of Safety with Stickier Tenants
With an average cash rent per square foot of
Significant Valuation Discount to
PINE
SRC
Similar tenant exposures in comparable or better markets, with an underlying real estate valuation per square foot 48% below the peer average.
Creating Value Through Capital Recycling
PINE has maintained its disposition guidance, implying it will
|
0 |
50 |
100 |
150 |
200 |
250 |
300 |
Portfolio Size (Square Feet) 2
continue to monetize assets at attractive private market valuations, resulting in accretive net investment spreads once disposition proceeds are reinvested.
|
1. |
Value is based on Total Enterprise Value for each peer net lease company is from the Stifel Triple- |
5 |
|
2. |
Portfolio size is based on total square feet and is from available information within each company's published information available through each company's website, as of |
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|
© 2023 |
Significant Implied Valuation Upside
2023E FFO Multiple1
13.9x
|
13.6x |
13.5x |
Investment Grade-Focused Peer Average 13.7x |
|
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PINE trades at a 2.4x |
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multiple discount to |
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the investment grade- |
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focused peer group |
|||
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12.3x |
average, implying |
||
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12.1x |
significant valuation |
||
|
upside |
11.3x
11.0x
9.2x
|
ADC |
|
NTST |
EPRT |
O |
PINE |
NNN |
SRC |
|
|
IG |
68% |
59% |
68% |
Not |
40% |
64% |
18% |
19% |
|
Disclosed |
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RATED |
Disclosed % of Rents from Investment Grade-Rated Tenants2,3
As of
- All dividend yields, payout ratios and 2023E FFO multiples are based on the closing stock price on
September 30, 2023 , using current annualized dividends and 2023E FFO per share estimates for the peer net lease companies from the Stifel Triple-Net REITs Comp Sheets 10/1/2023 report. 2023E FFO per share for PINE reflects the midpoint of guidance provided onOctober 19, 2023 . - A credit rated, or investment grade ("IG") rated tenant (rating of BBB-, Baa3 or NAIC-2 or higher) is a tenant or the parent of a tenant with a credit rating from
S&P Global Ratings ,Moody's Investors Service , Fitch Ratings or theNational Association of Insurance Commissioners .
|
3. Percentage of rents associated with investment grade-rated tenants based on published information available through each company's website as of |
6 |
|
© 2023 |
Relative Outsized In-Place Dividend Yield
PINE's dividend is strongly supported by a conservative payout ratio and a portfolio built with an intense focus on real estate fundamentals, high-quality tenancy and long-term stability.
|
8.0% |
|||||||
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6.7% |
|||||||
|
6.1% |
6.4% |
Peer |
|||||
|
6.1% |
Average |
||||||
|
6.1% |
|||||||
|
5.3% |
5.3% |
5.2% |
|||||
|
83% |
76% |
75% |
74% |
74% |
71% |
70% |
64% |
|
|
PINE |
O |
ADC |
SRC |
NTST |
NNN |
EPRT |
|
2023E FFO Payout Ratio |
Dividend Yield |
1. All dividend yields and payout ratios are based on the closing stock price on
|
FFO per share for PINE reflects the midpoint of guidance provided on |
7 |
|
© 2023 |
Disciplined Investment Strategy
National Focus, Emphasizing Attractive Supply/Demand Dynamics
National focus, with an emphasis on major metropolitan statistical areas that exhibit attractive population trends, business-friendly policies and strong underlying supply/demand fundamentals
Real Estate Fundamentals and Analytics Driven Underwriting
Real estate-oriented underwriting utilizing consumer location data analytics, competition indexing, market rent benchmarking and comprehensive risk assessments
Industry-Leading Tenants and Well-Performing Operating Sectors
Focused on aligning with tenants operating in essential business sectors, displaying stable and resilient operating trends and/or a forward-thinking,omni-channel strategy
Relative Asset Value Investing Through Long-Term Relationships
Concentrated on relative value-investing through deep broker, developer and tenant
relationships and management's ability to identify high-qualityrisk-adjusted opportunities in a highly fragmented transaction market
8
© 2023
Thoughtful Investment Execution
PINE has prudently invested capital into stable tenants with attractive underlying real estate and strong demographics.
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IPO |
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Since |
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Activity |
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Investment |
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Cumulative |
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Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
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2020 |
2020 |
2020 |
2020 |
2021 |
2021 |
2021 |
2021 |
2022 |
2022 |
2022 |
2022 |
2023 |
2023 |
2023 |
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IPO |
2021 |
2022 |
2023 |
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Q4 2019 |
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As of |
9 |
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$ in millions. |
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© 2023 |
Improving Portfolio Size, Diversity and Quality
|
2019 (IPO) |
2020 |
2021 |
2022 |
2023 |
|||||||
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Number of |
20 |
48 |
113 |
148 |
138 |
||||||
|
Number of States with a Property |
12 |
18 |
32 |
34 |
35 |
||||||
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Total Portfolio Square Feet |
0.9M |
1.6M |
3.3M |
3.7M |
3.9M |
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Annualized Base Rent (ABR) |
|
|
|
|
|
||||||
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Top Tenant as a % of ABR |
21% |
15% |
8% |
11% |
12% |
||||||
|
Wells Fargo (S&P: A+) |
Wells Fargo (S&P: A+) |
Wells Fargo (S&P: A+) |
Walgreens (S&P: BBB) |
Walgreens (S&P: BBB) |
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Top Sector as a % of ABR |
21% |
15% |
12% |
13% |
13% |
||||||
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Financial Services |
General Merchandise |
Home Furnishings |
Sporting Goods |
Dollar Stores |
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Top State as a % of ABR |
26% |
21% |
18% |
17% |
12% |
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% of ABR from IG Rated Tenants1 |
36% |
46% |
45% |
54% |
64% |
||||||
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% of ABR from Credit Rated Tenants1 |
89% |
83% |
74% |
79% |
87% |
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% of ABR from |
43% |
27% |
8% |
- % |
- % |
||||||
|
As of |
10 |
|
1. A credit rated, or investment grade ("IG") rated tenant (rating of BBB-, Baa3 or NAIC-2 or higher) is a tenant or the parent of a tenant with a credit rating from |
© 2023
Attachments
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