Alpine Income Property Trust, Inc.

Good day and welcome to the Alpine first quarter 2025 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call may be recorded. I would like to turn the call over to Jenna McKinney, Director of Finance. Please go ahead.

Thank you. I would 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 report, earnings release, and most recent investor presentation, which contain reconciliations of the non-GAAP financial measures we use, on our website at www.alpinerete.com. With that, I will turn the call over to John.

Thanks, Jenna. The first quarter was an excellent start to the year for Pine across all areas of our business. Starting with earnings, we achieved AFFO of $0.44 per diluted share for the quarter. representing growth of approximately 5% compared to the first quarter of last year. As previously announced, this growth in earnings and free cash flow provided support for us to raise our common dividend to a new quarterly rate of 28.5 cents paid in the first quarter, continuing Pine's practice of increasing its annual dividend every year since its IPO. Further, Pine's dividend yield continues to be one of the highest in the sector, Driving our earnings growth was another successful quarter of investment activity. During the quarter, we acquired three properties for $39.7 million and a weighted average initial cap rate of 8.6%. We also originated two mortgages plus upsized two existing ones for a combined total of $39.5 million with a weighted average initial yield of 9.5%. The company's total investment activity for the quarter, including both property acquisitions and structured finance investments, totaled $79.2 million, a weighted average initial yield of 9%. Our property acquisitions include Alamo Drafthouse Theater, co-signed by its owner, Sony Pictures, with an investment-grade credit, and Academy Sports, and the headquarters and manufacturing facility for Germfried Labs. Our structure financings in the quarter included $6.2 million of seller financing for a property lease to At Home that was sold in the quarter, a new $15.5 million construction loan, and upsizing two existing construction loans, one for Wawa and the other for a Publix Anchored Center. During the quarter, we sold three properties for $11.7 million, including an O'Reilly's, a multi-tenanted property, including an At Home, and a former Valero convenience store at a blended cap rate of 9.1%. Our transaction activity in the first quarter reflects our strategic approach to investing focused on buying a mix of high credit tenants that provide consistent stable cash flows and lesser credits that offer growth and diversification. Continuing to augment and complement our property investments by selectively originating structured investments. opportunistically selling properties that reduce portfolio risk and improve our industry and tenant concentrations, and extending our WALT. Notably, this quarter's acquisitions had an average WALT of 14.3 years, while the properties that we sold had a WALT of 4.7 years. With this activity, our portfolio WALT is now nine years compared to 6.9 years just 12 months ago. Additionally, as Pine's common shares have been trading at attractive relative valuation, We have been opportunistically repurchasing shares, as Phil will discuss. Finally, I want to provide some context relating to the recent tariff volatility and uncertainty. While there is little visibility into what the ultimate outcome of this extraordinary activity will be, I believe Pine is well-positioned given its tenant mix and sector diversification. We will continue to monitor the situation that evolves. But as for now, we see an attractive pipeline of opportunities across the tenant landscape and remain focused on executing our strategy to deliver growth and stability for Pines investors. With that, I'll turn the call over to Phil.