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Stifel raises PINE stock target, maintains Buy rating

EditorTanya Mishra
Published 21/10/2024, 13:46
PINE
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Stifel, a financial services firm, adjusted the price target for Alpine Income Property Trust (NYSE: PINE), increasing it to $20.25 from the previous $19.75.

The firm also reiterated its Buy rating on the stock. The adjustment comes as PINE updated its guidance for the year 2024, citing expected growth and increased activity in property acquisitions and dispositions.

Alpine Income Property Trust has raised its 2024 adjusted funds from operations (AFFO) per share forecast to the range of $1.69 to $1.71, up from the earlier projection of $1.60 to $1.64. This update represents a 14.1% growth at the midpoint, surpassing the Street's consensus of $1.67.

The company has also revised its expectations for property acquisitions, now anticipating spending between $100 million and $110 million, an increase from the former range of $50 million to $80 million.

In addition to acquisition expectations, Alpine Income Property Trust has also increased its forecast for property dispositions to a new range of $70 million to $75 million, up from the previous $50 million to $80 million. Stifel's third-quarter net asset value (NAV) estimate for PINE stands at $21.50, reflecting a capitalization rate of 7.1%. The firm's NAV value range for the third quarter is set between $24.00 and $19.25, based on cap rates ranging from 6.6% to 7.6%.

In other recent news, Alpine Income Property Trust has reported strong Q3 results, with notable growth in funds from operations (FFO) and adjusted funds from operations (AFFO). The company's strategic asset management, which includes successful asset recycling and a high-yielding loan portfolio, has been a highlight. Notably, Alpine Income Property Trust has acquired four net lease properties for $37.5 million and sold eight properties for $48.6 million, reducing its exposure to Walgreens.

The company's total revenue for Q3 was $13.5 million, with FFO per diluted share up 22% to $0.45 and AFFO per diluted share up 16% to $0.44. In a show of confidence in its financial position and future prospects, the company has raised its quarterly dividend from $0.275 to $0.28 per share and increased its full-year FFO guidance to $1.67 to $1.69 per share.

Despite a constrained lending environment, management remains optimistic about the transaction funnel and capital availability. The company is actively managing its portfolio, focusing on opportunistic selling and evaluating positions in dollar stores and Dick's Sporting Goods (NYSE:DKS).

However, it is cautious about increasing its exposure to Dick's Sporting Goods beyond 11%. Despite a one-time increase in general and administrative expenses due to legal costs, Alpine Income Property Trust's recent developments suggest a positive trajectory.

InvestingPro Insights

Alpine Income Property Trust's (NYSE: PINE) recent guidance update aligns with several key metrics and insights from InvestingPro. The company's stock is currently trading near its 52-week high, with a significant price uptick of 28.41% over the last six months, reflecting investor confidence in its growth prospects. This positive momentum is further supported by the company's revenue growth of 9.55% over the last twelve months, with a notable 16.62% increase in the most recent quarter.

InvestingPro Tips highlight that PINE has raised its dividend for 5 consecutive years, which is particularly relevant given the company's increased AFFO guidance. The current dividend yield stands at an attractive 6.06%, potentially appealing to income-focused investors. Additionally, PINE's liquid assets exceeding short-term obligations suggest a solid financial position to support its ambitious acquisition plans.

It's worth noting that PINE is trading at a high earnings multiple, with a P/E ratio of 80.7, which may be justified by the company's growth expectations. Investors seeking more comprehensive analysis can access additional InvestingPro Tips, with 7 more tips available for PINE on the InvestingPro platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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