Alpine Income Property Trust has closed its purchase of a 13-property industrial portfolio for $117.3 million, the single-tenant net lease REIT said in a Nov. 2 release filed with the Securities and Exchange Commission. The deal adds about 1.9 million square feet of manufacturing and distribution buildings to a portfolio that totaled 4.8 million square feet at the end of September.
The Winter Park, Fla.-based company (NYSE: PINE) paid about $63 per square foot for properties spread across 11 states on roughly 209 acres. The buildings are 100% leased to nine tenants under absolute triple-net leases, meaning the tenants pay property taxes, insurance and maintenance. According to the company’s Form 8-K, the purchase closed Oct. 30 and was funded with borrowings under Alpine’s revolving credit facility. The 8-K identifies the seller only as “a certain institutional owner” with no other material relationship to Alpine.
Long leases, older tenants, lower credit share
When it announced the agreement on Oct. 9, Alpine said the leases carry a weighted average remaining term of 10.2 years, with none expiring before late 2031, and include annual rent escalators. It said the tenants have operated at their sites for an average of about 40 years and that many have made significant investments in their facilities.
The portfolio carries less investment-grade credit than the rest of Alpine’s holdings. About 19% of in-place cash rent in the acquired properties comes from tenants that are rated investment grade or are subsidiaries of investment-grade parents, according to the October announcement. In Alpine’s existing property portfolio, 56% of annualized base rent came from investment-grade tenants as of Sept. 30, according to its third-quarter results release. The company has instead emphasized the low purchase price per square foot, the long lease terms and the tenants’ decades at their sites.
“With 10.2 years of weighted average remaining lease term and annual rent escalators built into the leases, this portfolio of mission-critical manufacturing and distribution facilities delivers an attractive initial yield with future cash flow growth,” John P. Albright, Alpine’s president and chief executive, said in the closing announcement. Neither release disclosed the cap rate or initial yield on the purchase.
A bigger, more industrial Alpine
At the end of the third quarter Alpine owned 130 properties totaling 4.8 million square feet in 31 states, with $53.9 million of annualized base rent and 99.6% occupancy. By RealtyWire’s arithmetic, the industrial portfolio increases the company’s square footage by about 40% in a single transaction.
The deal is part of what Alpine called a record investment year. In its Oct. 22 results, Albright said closed and under-contract investments, including the industrial portfolio, exceeded $300 million year to date, “a Company record that surpasses our full-year 2025 total of $278 million.” Alpine raised its 2026 investment volume forecast to $310 million to $350 million, from $170 million to $200 million in July.
It also raised its 2026 guidance for adjusted funds from operations, a REIT cash-earnings measure, to $2.20 to $2.22 per diluted share from $2.12 to $2.15. Third-quarter AFFO was $0.55 a share, up from $0.46 a year earlier, on total revenue of $20.5 million versus $14.6 million.
Financing the growth
Alpine ended September with $198.5 million drawn on a $250 million revolving credit facility and $51.5 million of additional availability. After the quarter it received bank commitments for a new $100 million four-year term loan and a $75 million increase in the revolver’s commitments, to $325 million. The company said the term loan proceeds would be used to repay revolver borrowings, and that the new financing would add $175 million of potential liquidity for pending and future acquisitions.
Alpine is externally managed. CTO Realty Growth, whose chief executive is also Albright, and CTO’s subsidiaries hold about 1.2 million of the operating partnership units outstanding, according to the third-quarter release. Earlier this fall CTO bought a $103 million power center in Lee’s Summit, Mo.
Industrial portfolios have been actively changing hands among net lease buyers this year. Global Net Lease completed a $535 million acquisition of Modiv Industrial, and more deals are tracked in RealtyWire’s commercial real estate coverage.
