[Management View]
AFFO per share increased 24.5% YoY to $0.46 per diluted share. The company is focusing on higher-yielding originated loans and expanding acquisition of investment-grade tenants. Lowe’s has become the largest tenant by ABR.

[Outlook]
Increased full-year FFO and AFFO guidance to $1.82-$1.85 per diluted share for 2025. Management plans to use proceeds from loan maturities, senior loan sales, property dispositions, and the credit facility to fund new loan commitments.

[Financial Performance]
Total quarterly revenue was $14.6 million, with $12.1 million from lease income and $2.3 million from interest income on loan investments. FFO and AFFO per share both grew 24.5% YoY to $0.46. Year-to-date revenue was $43.6 million, with FFO and AFFO per share at $1.34, representing 39.1% growth YoY.

[Q&A Highlights]
Question 1: Can you provide color on funding recent investment activity?
Answer: Funding will come from asset sales, loan maturities, and net growth in anticipation of additional sales.

Question 2: How are you managing the lumpiness in AFFO due to loan expirations?
Answer: The company is confident in replacing loans at high rates due to strong existing relationships and a robust pipeline of high-quality assets and sponsorships.

Question 3: Will you continue to pursue property types outside of retail?
Answer: The focus remains on retail, but the company is open to unique opportunities with strong sponsors and assets.

Question 4: Will proceeds from loan maturities and asset sales be reinvested or used to pay down debt?
Answer: Primarily reinvested into new loans, with some potential for leverage reduction.

Question 5: How did you get comfortable with the luxury residential development loan in Austin?
Answer: The project is at the late stage of delivering lots, with some sales starting soon.

Question 6: What is the impact of selling vacant assets on operating expenses?
Answer: The sale of the Reno theater reduced annual expenses by $400,000, with further reductions expected from the sale of the Party City property.

Question 7: Is the sale of large loan interests included in disposition guidance?
Answer: It would be classified as a disposition and could push total 2025 disposition volumes above the high end of guidance.

Question 8: What is left in the property portfolio to sell?
Answer: The focus is on exiting Walgreens, dollar stores, and other lower-rated assets to reinvest in higher credit quality properties.

Question 9: Are property acquisitions targeted towards higher credit quality tenants?
Answer: Yes, the focus is on acquiring high-quality, investment-grade tenants.

Question 10: Is Beachside fully open and producing?
Answer: Yes, all Beachside properties are open and performing better than pre-hurricane levels.

Question 11: Any update on properties leased to At Home?
Answer: Monitoring At Home’s performance, with plans to replace tenants if necessary.

Question 12: Why are recent loan interest rates higher?
Answer: Short duration and high flexibility of loans allow for higher rates.

Question 13: Will loan investments continue to be a significant part of the strategy?
Answer: Yes, loan origination has become a repeatable and permanent fixture in the capital allocation model.

Question 14: Why did the loan amount for Cornerstone Exchange increase?
Answer: Additional leases signed by the developer increased the development size.

Question 15: What is the current LTV for the Austin loans?
Answer: In the seventies on a discounted NPV basis.

Question 16: Why did the percentage of credit-rated tenants drop?
Answer: Downgrades or lost ratings for tenants like Walgreens.

[Sentiment Analysis]
Analysts were positive about the strategic shift towards high-yielding loans and the focus on investment-grade tenants. Management was confident in their ability to manage funding and maintain strong financial performance.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------|---------|---------|------------|
| Total Revenue | $14.6M | $11.7M | +24.8% |
| Lease Income | $12.1M | $9.8M | +23.5% |
| Interest Income | $2.3M | $1.9M | +21.1% |
| FFO per Share | $0.46 | $0.37 | +24.5% |
| AFFO per Share | $0.46 | $0.37 | +24.5% |
| Dividend per Share | $0.285 | $0.275 | +3.6% |
| Property Acquisitions | $21.1M | $18.0M | +17.2% |
| Property Dispositions | $6.2M | $5.5M | +12.7% |

[Risks and Concerns]
- Potential volatility in AFFO due to loan expirations.
- Dependence on successful property and loan dispositions to fund new investments.
- Exposure to tenants with downgraded credit ratings.

[Final Takeaway]
Alpine Income Property Trust demonstrated strong financial performance in Q3 2025, driven by strategic loan origination and portfolio optimization. The company’s focus on high-yielding loans and investment-grade tenants positions it well for continued growth. However, managing the lumpiness in AFFO and addressing tenant credit downgrades remain key challenges. Overall, the outlook for 2025 remains positive with increased guidance and robust investment activity.