Alpine Income Property Trust, Inc. (NYSE:PINE) Q3 2022 Earnings Conference Call October 21, 2022 9:00 AM ET

Company Participants

Matt Partridge - Chief Financial Officer

John Albright - President and Chief Executive Officer

Conference Call Participants

Rob Stevenson - Janney Montgomery Scott

RJ Milligan - Raymond James

Jason Stewart - Jones Trading

Craig Kucera - B. Riley Securities

Operator

Good day and thank you for standing by. Welcome to the Alpine Third Quarter 2022 Earnings Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Partridge, Chief Financial Officer. Please go ahead.

Matt Partridge

Good morning, everyone and thank you for joining us today for the Alpine Income Property Trust third quarter 2022 operating results conference call. With me today is our CEO and President, John Albright.

Before we begin, I’d like to remind everyone that many of our comments today are considered forward-looking statements under federal securities laws. Company’s actual future results may differ significantly from the matters discussed in these forward-looking statements and we undertake no duty to update these statements. Factors and risks that could cause the actual results to differ materially from expectations are disclosed from time-to-time in greater detail in the company’s Form 10-K, Form 10-Q and other SEC filings. You can find our SEC reports, earnings release and most recent investor presentation, which contain reconciliations of non-GAAP financial measures we use on our website at alpinereit.com.

With that, I will now turn the call over to John.

John Albright

Thanks, Matt and good morning everyone. We had a solid third quarter as we continue to improve the quality of our earnings by executing our accretive capital recycling strategy and meaningfully de-risking our balance sheet.

During the quarter, we sold 6 net lease properties for a total disposition volume of $50.5 million, generating total gains of $11.6 million and a weighted average exit cap of 5.5%. The dispositions included properties leased to scrobbles carwash, Container Store 711, Kohl’s, and Jo-Ann Fabric. These sales allowed us to reduce our exposure to low quality tenant credits and correspondingly reinvest the proceeds into predominantly investment grade tenants. Year-to-date, we have sold 11 properties for just over $123 million at a weighted average exit cap rate of 6.5% or 5.6% when removing the impact of the sole remaining office property we sold in the second quarter.