NTST - Alpine Income Property Trust: This REIT Looks Buyable

2024-04-02 11:00:00 ET

Summary

• Alpine Income Property Trust is a small net lease REIT with an enterprise value under $500 million.
• PINE's portfolio consists of retail real estate, with almost two-thirds of rental revenue generated from investment-grade tenants.
• PINE faces challenges such as the departure of its Chief Financial Officer and a portfolio that is not as strong as its peers, but its low valuation makes it an attractive acquisition opportunity for larger REITs like Realty Income.
• Should PINE's multiple fail to expand, PINE's management team may choose to unlock value by inviting interest from an acquisitive competitor.
• We explore PINE and look at five competing net lease REITs.

A common theme amongst our research is diversity amongst REITs. We commonly write "REITs come in a variety of shapes and sizes." There are hundreds if not thousands of REITs, however, a select set of high quality REITs tend to dominate the discussion. The largest and most successful in the industry such as Realty Income Corporation ( O ), Prologis, Inc. ( PLD ), and American Tower Corporation ( AMT ) receive most of the attention from investors with enterprise values in the tens or hundreds of billions. Their fortress balance sheets and enormous portfolios make these REITs some of the largest owners of real estate on the planet....

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