Alpine Income Property Trust (PINE): Losses Worsen 14.8% Annually, Undervalued Shares Spark Debate

Alpine Income Property Trust (PINE) has seen losses widen at an annualized rate of 14.8% over the past five years, and its net profit margin continues to run in the red. The company is forecast to remain unprofitable for at least the next three years, while revenue is expected to grow at just 3.4% per year, which is well behind the broader US market’s projected 10% annual rate. Despite these headwinds, investors will note that PINE shares change hands below both fair value estimates and analyst price targets, offering a potential angle for value-focused buyers.

See our full analysis for Alpine Income Property Trust.

With the headline numbers in focus, let’s see how they compare to the consensus narratives shaping the market’s expectations for PINE.

See what the community is saying about Alpine Income Property Trust

High Leverage Magnifies Risks at 8.1x Net Debt

• Alpine’s net debt to pro forma adjusted EBITDA stands at 8.1x, marking a substantial financial risk if borrowing costs rise or capital access tightens.
• Critics highlight in the consensus narrative that such high leverage could sharply restrict investment ability and expose the trust’s earnings to shocks,
  • a single major tenant, such as DICK's Sporting Goods or Lowe's, accounts for 20% of annualized base rent, so any default may compound balance sheet pressure,
  • and with ongoing retail sector headwinds, management’s ability to actively manage portfolio risk is more critical than ever.

Price-to-Sales Stands Above Peers at 3.4x

• Despite unprofitability, Alpine trades on a price-to-sales ratio of 3.4x, noticeably higher than industry (2.7x) and peer (2.6x) averages, which challenges the view that the shares are a clear bargain.
• Analysts’ consensus view suggests the market is weighing Alpine’s strategic focus on essential single-tenant net lease properties against its slower revenue growth,
  • assuming revenue grows at just 3.4% annually compared to the US market’s 10%,
  • and any valuation upside relies on successful execution of portfolio repositioning and capital recycling to improve risk-adjusted returns.

Share Price Trails Both Fair Value and Analyst Target

• With shares recently trading at $13.81, Alpine sits below both its $17.45 analyst price target and $26.58 DCF fair value, opening up a valuation gap that value-minded investors may find appealing.
• According to analysts’ consensus view, closing this gap would require margins to return to industry norms and consistent execution on lease renewal or rent escalation,
  • with longer lease terms, now averaging 8.9 years, and increased investment-grade tenant exposure seen as key to driving future earnings,
  • but persistent negative margins continue to call into question the timing and durability of any earnings recovery.

See how analysts connect Alpine’s latest financials to the broader market narrative in the full consensus story. 📊 Read the full Alpine Income Property Trust Consensus Narrative.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Alpine Income Property Trust on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Alpine Income Property Trust research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Explore Alternatives

Alpine’s high leverage, persistent negative profit margins, and slow revenue growth point to major financial health risks compared to stronger peers.

If you want to steer clear of these balance sheet concerns, search for companies with sturdier finances and lasting resilience using solid balance sheet and fundamentals stocks screener (1976 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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