Alpine Income Trust Buys Aspen Asset for $10M in High-Yield Deal
The net-lease REIT secured the retail property with an 8.5% initial cap rate and a 50-year term, signaling confidence despite a recent earnings miss.
Alpine Income Property Trust (NYSE: PINE) has acquired a retail property in the prized market of Aspen, Colorado, for $10.0 million, a move that strengthens its portfolio with a long-term, high-yield asset.
The real estate investment trust announced Tuesday that the deal was structured as a 50-year absolute triple-net master lease, minimizing landlord expenses. The acquisition boasts an initial capitalization rate of 8.5% and includes 1.25% annual rent escalations, locking in a predictable and growing income stream.
The investment, while part of its routine business, is significant for the Winter Park, Florida-based company, representing approximately 3.7% of its roughly $270 million market capitalization. Shares of Alpine Income Property Trust traded up about 1% to $17.55 in Tuesday trading, pushing the stock near its 52-week high of $17.64 and suggesting investor approval of the strategic acquisition.
This purchase is a continuation of the REIT's active capital recycling strategy seen throughout 2025. According to company disclosures, Alpine engaged in $277.7 million of new investments last year while disposing of $82.8 million in other properties. This portfolio reshuffling is aimed at enhancing the quality and yield of its holdings.
John P. Albright, President and Chief Executive Officer of Alpine, framed the acquisition as a strategic enhancement of their portfolio. The 6,529-square-foot property's location in a high-barrier-to-entry market like Aspen, combined with the lengthy lease term, provides significant long-term security.
Investor confidence appears robust, with the stock’s performance reflecting optimism in the company's strategic direction and its attractive dividend, which currently yields over 6.5%. This market optimism persists despite some recent financial headwinds. For the third quarter of 2025, Alpine reported an earnings per share of -$0.09 and revenue of $14.56 million, both of which fell short of analyst consensus estimates.
The company's portfolio remains strong on paper, with an occupancy rate of 99.4% and a weighted-average remaining lease term of 8.4 years as of the end of 2025. However, with a negative trailing twelve-month EPS, the market is pricing the company based on its assets and future income potential rather than recent profitability.
Wall Street remains broadly positive on Alpine's prospects. Analyst consensus ratings range from 'Moderate Buy' to 'Strong Buy,' with an average 12-month price target of approximately $18.09, suggesting modest upside from current levels. The company's strategy of acquiring high-quality net-lease properties that generate stable cash flow is a key part of its appeal, particularly for income-focused investors.
Investors will be closely watching for the company's full-year and fourth-quarter 2025 financial results, which are anticipated to be released in early February. The report will provide further insight into the success of its capital recycling program and offer guidance on its outlook for 2026. This latest Aspen acquisition sets a positive tone for the year, demonstrating a commitment to securing stable, long-term income sources.