Alpine Income Property Trust, Inc. (NYSE:PINE) Q4 2023 Earnings Conference Call February 9, 2024 9:00 AM ET

Company Participants

Matthew Partridge - CFO

John Albright - President and CEO

Conference Call Participants

Robert Wesley Golladay - Baird Janney Montgomery Scott

Wesley Golladay - Baird

Matthew Erdner - JonesTrading

R.J. Milligan - Raymond James

Anthony Hau - Truth Securities

John Massocca - B. Riley

Operator

Good day, and thank you for standing by. Welcome to the Alpine Income Property Trust Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [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.

Matthew Partridge

Good morning, everyone, and thank you for joining us today for the Alpine Income Property Trust's fourth quarter and full year 2023 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 our non-GAAP financial measures we use on our website at alpinereit.com.

I'll now turn the call over to John for his prepared remarks.

John Albright

Thanks, Matt, and good morning, everyone. As we look back at our execution in 2023, we continue to emphasize the value-focused asset recycling program, we implemented nearly two years ago. This program has allowed us to reposition our portfolio into higher quality credits that de-risk our cash flows, and provide the liquidity needed for our opportunistic share repurchases, and strong yielding first mortgage investments.

Within the fourth quarter, the majority of our investment activity was concentrated in the first mortgage investments and share repurchases, and we believe these investment opportunities provide attractive risk-adjusted returns, compared to other opportunities available in the market.

During the quarter, we originated nearly $31 million of first mortgage loan investments and acquired two single-tenant net lease properties for $3 million. The initial yield on our loan investments was 9.2% and the cash cap rate of our property acquisitions was 7.3%. Our largest investment was a low leverage $24 million first mortgage secured, by 41 retail properties.