Alpine Income Property Trust Announces $24 Million First Mortgage Investment Secured by 41-Property Portfolio

WINTER PARK, Fla., Nov. 16, 2023 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company”) announced today that it has entered into an agreement to provide a $24.0 million first mortgage (the “Loan”) secured by 41 retail properties located throughout the United States (the “Portfolio”). The three-year Loan was fully funded at closing and is interest-only through maturity. The Loan includes an origination fee and bears an initial fixed interest rate of 8.75% for the first year, before increasing to 9.0% in year two and 9.25% in year three.

In addition to the Loan investment, the Company anticipates entering into a revenue sharing agreement with a subsidiary of CTO Realty Growth, Inc. (“CTO”), its external manager. It is expected that the revenue sharing agreement will allow PINE to receive a share of the asset management fees, disposition management fees, leasing commissions and other fees related to CTO’s management and administration of the Portfolio (the “Revenue Sharing Agreement”). The Company’s share of the fees under the Revenue Sharing Agreement will be based on fees earned by CTO associated with the single tenant properties within the Portfolio. The Company’s revenue from the Revenue Sharing Agreement is forecasted to be approximately $16,000 per month and will be reduced as single tenant properties within the Portfolio are sold. The forecasted monthly revenue does not include potential revenue sharing income related to disposition management fees and leasing commissions.

“As we seek out longer duration core investment opportunities with more compelling yields than what is currently available in the market today, we’re excited about the opportunity to invest in this low leverage, shorter duration first mortgage loan that provides what we believe is an outsized current yield and attractive fee stream,” noted John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust, Inc.

The Company also announced today that is has entered into a first mortgage construction loan agreement to provide $6.8 million of funding towards the development of a 5-acre land development project anchored by Wawa and McDonalds in a submarket of Nashville, Tennessee. The two-year first mortgage is interest-only through maturity, includes an origination fee, and bears an initial fixed interest rate of 11.0%.