Alpine Income Property Trust, Inc. (NYSE:PINE) Q2 2022 Earnings Conference Call July 22, 2022 8:30 AM ET

Company Participants

John Albright - President and Chief Executive Officer

Matt Partridge - Chief Financial Officer

Conference Call Participants

Matthew Erdner - Jones Trading

Anthony Hau - Truist

Rob Stevenson - Janney

RJ Milligan - Raymond James

Craig Kucera - B. Riley Securities

Operator

Good day and thank you for standing by. Welcome to the Alpine Income Property Trust Second 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, Senior Vice President, Chief Financial Officer and Treasurer. Please go ahead.

Matt Partridge

Good morning everyone. And thank you for joining us today for the Alpine Income Property Trust second 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 law. The 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 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 back over to John.

John Albright

Thanks, Matt. And good morning, everyone. As we discussed there in our first quarter earnings call, we believe we will have an opportunity to acquire high quality properties at more favorable pricing in the back half of the year as the rising interest rate environment, challenged debt market, in volatile macroeconomics backdrop puts upward pressure on cap rates. As a result, we emphasize capital recycling in the second quarter where we locked in attractive pricing on our asset dispositions and then redeployed the proceeds into better risk adjusted opportunity with stronger tenant credits and more favorable cap rates.

During the quarter, we sold $73 million of properties at a blended cap rate of 7.1%, generating gains on sale of $15.6 million or $1.15 per share. This includes the previously announced sale of our loan remaining office property that generate a gain of $7 million.