Alpine Income Property Trust, Inc.

The conference will begin shortly. To raise your hand during Q&A, you can dial star 11. Good day, and thank you for standing by. Welcome to the Alpine Third Quarter 2022 Earnings 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. To ask a question during the session, you will need to press star 11 on your telephone. 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.

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 law. Companies' 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'll now turn the call over to John.

Thanks, Matt, and good morning, everyone. We had a solid third quarter as we continued 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 six net lease properties for a total disposition volume of $50.5 million, generating total gains of $11.6 million at a weighted average exit cap of 5.5%. The dispositions included properties leased to Scrubbles, Car Wash, Container Store, 7-Eleven, Kohl's, and Joann Fabrics. 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've sold 11 properties for just over $123 million at a weighted average exit cap rate of 6.5%. are 5.6% when removing the impact of the sole remaining office property we sold in the second quarter. The market for net lease assets remained strong through the third quarter, and our buyer pool has been diverse. We sold properties to family offices and other public and private REITs and high net worth individuals, and we continue to evaluate attractive disposition opportunities as we work our way into the fourth quarter. We plan to continue our opportunistic approach to capital recycling as we look to generate attractive net investment spreads and pay down debt. Our acquisitions in the quarter were weighted towards high-quality national tenants exhibiting strong operating trends while also opportunistically layering in well-located assets at values below replacement costs. In total, during the quarter, we acquired nine properties located in eight states that have a weighted average lease term of seven and a half years and a weighted average cash cap rate of 7.1%. More than 75% of the acquired rents come from tenants with an investment grade credit rating, including Lowe's, Family Dollar, Dollar Tree, and Dick's Sporting Goods. Year to date, we've acquired 44 net lease properties for just over $145 million and a weighted average going in cash cap rate of 7% and a weighted average remaining lease term at acquisition of 8.9 years. Coming into the fourth quarter, we owned 146 properties totaling 3.4 million square feet with tenants operating in 26 sectors within 35 states. Of note, Lowe's is now our number three tenant, joining Walgreens, Family Dollar, Dollar Tree, Dollar General, Walmart, and Best Buy as investment grade tenants in our top 10 tenant list. While our disposition activities naturally require some reinvestment, we are taking a judicious approach to acquisitions given the market volatility and deterioration in our cost of capital as a result of higher interest rates and lower stock price. While this is obviously not specific to our company, our approach has been and will continue to be focused on maximizing value for our shareholders while actively managing risk. As we communicated in April during our first quarter earnings call, we anticipated upward pressure on cap rates as rising interest rates have not only impacted investment returns, but also liquidity in the market. We started to see a notable shift in tone in September after the Labor Day holiday as cap rates began to drift upwards. We believe this is an opportunity as we exercise patience and position ourselves to drive attractive spreads between our acquisitions and dispositions through active portfolio management. I'll now turn the call over to Matt to talk about our third quarter performance balance sheet and capital market activities and revised guidance.