How Alpine Income Property Trust's 2025 Deals Reshaped Its Portfolio

Alpine Income Property Trust PINE wrapped up 2025 with a record $277.7 million in investment activity, alongside $82.8 million of property dispositions, signaling an active year of portfolio repositioning. By selling some assets and redeploying capital into higher-yielding structured investments and acquisitions, Alpine aims to enhance long-term cash flow generation for shareholders, blending income stability with growth-oriented capital deployment. 

Throughout the fourth quarter, the company completed $142.1 million in acquisitions and structured investments at a high weighted average initial cash yield of 11.7 %, including new first mortgage loan commitments. These disciplined capital placements complement Alpine’s net leased portfolio, potentially strengthening recurring income while selectively managing risk. Full-year investments achieved a 10.3 % weighted average initial cash yield, reflecting solid cash return expectations. 

Disposition activity included sales of net-lease properties and structured investment participation interests, allowing Alpine to recycle capital into assets with stronger return profiles. While divesting, the company maintained a 99.4 % occupied portfolio with an 8.4-year weighted average remaining lease term as of Dec. 31, 2025, supporting durable rent streams as the REIT navigates the broader commercial real estate environment.  Approximately 51% of annualized base rent comes from investment-grade tenants, providing greater cash flow stability.

Alpine also reported that Walmart is now its fourth-largest tenant, joining a roster led by high-credit tenants such as Lowe’s and Dick’s Sporting Goods. This shift increases exposure to strong, investment-grade rent sources. Meanwhile, Walgreens slipped to the ninth position by annualized base rent, with five remaining leased properties in the portfolio.

Wrapping Up on PINE

Alpine Income’s 2025 transaction activity underscores a deliberate strategy of capital recycling and yield enhancement. With robust occupancy, a long lease term profile and growing investment-grade tenant exposure, the REIT positions itself for resilient cash flow and income stability. For investors, these developments reflect thoughtful portfolio management aimed at strengthening returns amid shifting market conditions. 

Shares of this Zacks Rank #3 (Hold) company have rallied 22.8% in the past three months, outpacing the industry, which fell 1.8%. 

The recent estimate revision trends also mark a bullish view of analysts, with the consensus estimates for funds from operations (FFO) per share being revised upward over the past two months for both 2025 and 2026 to $1.81 and $1.94, suggesting a year-over-year increase of 4.62% and 7.29%, respectively.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Digital Realty Trust DLR and Terreno Realty TRNO. Both Digital Realty and Terreno Realty carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Digital Realty’s 2025 FFO per share is pegged at $7.35, which indicates year-over-year growth of 9.5%.

The Zacks Consensus Estimate for Terreno Realty’s full-year FFO per share stands at $2.80, which calls for an increase of 15.70% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research