Good day, and thank you for standing by. Welcome to the Alpine Q1 2023 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matthew Partridge. Please go ahead. Good morning, everyone, thank you for joining us today for the Alpine Income Property Trust First Quarter 2023 Operating Results Conference Call. With me today is our CEO and President, John Albright. Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. Company's actual future results may differ significantly from the matters discussed in these forward-looking statements, we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q, and other SEC filings. You can find our SEC reports, earnings release, and most recent investor presentation, which contains reconciliations of non-GAAP financial measures we use on our website at alpinereit.com. I'll now turn the call over to John for his prepared remarks. Thanks, Matt. Good morning to everyone. We are pleased to report a positive start to the year as we continue to execute our asset recycling strategy. Relative to our initial expectations heading into the year, we've experienced a more active transaction environment with attractive pricing and demand. This has allowed us to increase liquidity for selective investment, improve financial flexibility as a result of deleveraging our balance sheet, and we're positioned to improve overall portfolio quality through targeted reinvestment into predominantly investment-grade rated tenants. In terms of our headline transaction activities during the quarter, we chose to be opportunistic with our asset sales and take advantage of the demand in the market. While there is plenty of uncertainty regarding where interest rates are headed and the underlying macroeconomic environment, we were able to find attractive opportunities to sell non-investment- grade properties. During the quarter, we sold 10 properties for a total disposition volume of $56 million at a weighted average exit cap rate of 6.1%, generating total gains of $4.5 million. The dispositions largely focused on non-investment- grade-r ated tenants, which included properties leased to LA Fitness, Conn's, Rooms To Go, Ethan Allen, and some one-off restaurant concepts, just to name a few. The 6.1% cap rate on largely non-investment- grade tenants is a testament to the quality of the underlying real estate, and we think this pricing is a great representation of the value of the properties in our portfolio. This is, of course, in addition to the high-quality assets that are occupied by investment grade rated tenants that make up the majority of our portfolio's rents and are more appreciated by the investment and lending communities. As of the end of the quarter, our portfolio consisted of 138 properties totaling 3.5 million sq ft, with tenants operating in 24 sectors. Our top tenants remain unchanged from our year-end earnings call in mid-February, with Walgreens, Dick's Sporting Goods, Family Dollar Tree, Lowe's, and Dollar General as our top five tenants. All of them carry investment grade credit ratings. We ended the quarter with 58% of our total annualized base rents coming from tenants with investment grade credit rating, which is an increase of 400 basis points from year-end 2022 and up 800 basis points from this time last year. While we took a prudent approach to acquisitions during the first quarter, we built a strong pipeline of opportunities that will be de-redeploying into the second quarter. The assets we have under contract and out of line are occupied by industry-leading retailers such as Home Depot, Verizon, HomeGoods, Best Buy, Dick's Sporting Goods, Lowe's, Starbucks, Marshalls, and Chick-fil-A. We generally prefer to discuss assets after we acquire them because the transaction is never guaranteed until it is closed. We're looking forward to an active quarter of investing that will improve overall portfolio quality and drive our investment grade tenancy into the 60%+ range, which is similar level to our peers who have considerably higher FFO multiples. More importantly, we're forecasting to execute the redeployment of our disposition proceeds into these high-quality assets at accretive net investment spreads. While we've guided our FFO and AFFO 2023 to below 2022, largely due to the deleveraging and timing of our asset recycling, the stabilized effects of our positive net investment spreads that will fully materialize in 2024 will allow us to drive organic FFO and AFFO growth with better risk-adjusted tenancy and without the need for additional capital in what is currently a capital-constrained environment. Finally, it's important to highlight the valuation discount implied with our current stock price and stability of our balance sheet and capital structure. We're currently trading at an 8% implied cap rate, which is well above the cap rates achieved on our dispositions over the past 6 months and in significant contrast with the improving credit quality of our tenants and overall portfolio value. Furthermore, we have no floating interest rate exposure and no debt maturities until 2026. This stability complements the strength of our high-quality portfolio, which together supports our well-covered dividend that is yielding nearly 7%. With that, I'll turn the call over to Matt to talk about our first quarter performance and revised guidance. Thanks, John. Beginning with our financial results, first quarter 2023 FFO was $0.36 per share, a $0.13 per share or 26.5% decrease compared to the first quarter of 2022. First quarter 2023 AFFO was also $0.36 per share, a $0.12 per share or 25% decrease over the first quarter of 2022. Our results benefited from a 3.4% increase in total revenues, which was driven by the full year benefits of our 2022 asset recycling efforts and investment activity, but was partially offset by $165,000 of non-repeating percentage rent received in the first quarter of 2022. Revenue drag from our first quarter asset sales for which the proceeds have yet to be reinvested, and the year-over-year negative investment spread that resulted from the sale of our sole remaining office property that occurred in Q2 2022. Offsetting our year-over-year revenue growth was a 5.9% increase to our general and administrative expenses, which was predominantly due to increases in the management fee paid to our external manager as a result of our 2022 and 2023 equity capital markets activities and higher interest expense due to higher interest rates, partially offset by an overall lower outstanding debt balance. For the first quarter of 2023, the company paid a cash dividend of $0.275 per share, representing a 1.9% year-over-year increase over the company's Q1 2022 cash dividend and a current annualized yield of nearly 7%. FFO and AFFO first quarter payout ratios were both 76%. We anticipate announcing our regular quarterly cash dividend for the second quarter towards the end of May. During the quarter, we issued 666,000 shares of common stock through our ATM program for total net proceeds of $12.4 million at an average gross issuance price of nearly $19 per share. As John mentioned, we've overhauled our balance sheet over the past 12 months to lock in our cost of debt and stabilize our overall capital structure. During that 12-month timeframe, we reduced our net debt- to- pro forma EBITDA by nearly 2.5 x, fixed any remaining outstanding floating rate debt, extended all of our debt maturities out to 2026 and beyond, and meaningfully increased our potential liquidity to more than $260 million through a combination of undrawn revolving credit facility commitments, cash and restricted cash. We ended the year with net debt to total enterprise value of 41%, net debt- to- pro forma EBITDA at 6.4 x, and our fixed charge coverage ratio remains very healthy at 3.4 x. We look forward to the balance of 2023, we begin the second quarter with portfolio-wide in-place annualized straight-line base rent of $37 million, or $36.6 million of in-place annualized cash base rent. We maintained our full year FFO and AFFO per share guidance of $1.50-$1.55 per share and $1.52-$1.57 per share respectively, even after accounting for the near-term earnings drag associated with the timing of our increased asset recycling efforts. Our investment guidance also remains unchanged at a range of $100 million-$150 million of retail net lease investments. We've increased our disposition guidance by $50 million at the low end and $75 million at the high end to account for our elevated Q1 asset sales and revised expectations for asset sales through the balance of the year. Overall, we're confident our unique asset recycling strategy, increased liquidity, improved balance sheet, and high-quality portfolio has us well positioned to drive value over the long run. We look forward to executing on our 2023 guidance and positioning the company for future earnings growth in 2024. With that, operator, please open the line for questions. Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star one one on your telephone. To withdraw your question, please press star one one again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Gaurav Mehta with EF Hutton. Your line is open. Thank you. Good morning. I wanted to ask you on the dispositions, can you provide some more color on the assets that you sold? Was this a fully marketed sales or were this like off market transaction for you guys? In terms of deployment of the proceeds, are you expecting all of the proceeds to be redeployed in Q2? Yeah. Thanks very much. Yeah, basically the dispositions were a combination of off market and broker-led sort of transactions. The dispositions really got kicked off when we started getting off market interest at cap rates that we felt were opportunistic for us to sell and, you know, very accretive to the company and earnings and book value. On the repositioning of the sales, I feel like most of it will be done in the second quarter. You know, there could be a little lag, but that's the goal is to get most of it done in the second quarter. On the leverage side, your leverage was down to 6.4 x. What's your expectation for the leverage going forward? Yeah, I think in general we'll probably be in that mid-sixes range unless we find something on the acquisition side of things that we can't live without, and we'll figure out the capital structure after the fact if it's a really unique transaction. Mid-sixes or low sixes is probably where you can assume we'll operate for the go forward. Okay. Thank you. Thanks. One moment for our next question. Our next question comes from Matthew Erdner with Jones Trading. Your line is open. Hey, guys. Matthew Erdner on for Jason. Thanks for taking the question. Could you talk about the profile of the buyer from the dispositions and kind of where the demand is coming from and the expectation for demand going forward? It's kind of all over the board, but primarily it's high net worth. There are some franchisee purchasing their own property back. It's just a total mix. Not as much institutional, mainly private capital. Gotcha. Are you guys gonna continue to look to dispose of the non-investment- grade, or is it just whenever you see an offer, if it fits, then that's kinda what you'll take? No. We're definitely going to explore further non-investment- grade. We think obviously with the disconnect in our stock price, there's probably some credits where the street thinks that those credits would trade at higher cap rates. Given the location of the properties or redevelopment potential, we know the cap rates will be lower. We'll continue to, you know, print tickets and print profits and redeploy at higher yields. Awesome. Thank you. One moment for our next question. Our next question comes from Barry Oxford with Colliers. Your line is open. Great. Thanks. Guys, going back to the percentage rent that you mentioned in your comments of being lower, is that a function of tenants not hitting the percentage rent, or is it more of a function of the structure of the leases are more tied to fixed than they were previously? Hey, Barry. Yeah. It's a little bit of a unique situation. We bought an asset that was in percentage rent where we recasted the lease, before we acquired it. Okay. As part of the acquisition, we had a right to the percentage rent in the year that we bought it. We had the benefit of the percentage rent from the lease structure prior to our recasting it. The recasting of the lease going forward is just fixed rent with increases. Okay. Great. Great. When we look to 2024 versus 2023 as far as the net, you know, acquisition disposition, do you see 2024 being heavy on net acquisitions, whereas this year, you know, won't be quite that heavy? Or do we see 2024 being like 2023, where the 2 numbers will be fairly close to each other? I mean, I would say on the conservative side, you know, we're gonna be kind of match funding. We anticipate and the goal is obviously to be a net acquirer, we think we'll get there. Given what we see in front of us as far as opportunities to buy and to keep on upgrading the portfolio, we fully wanna be a net acquirer and will, you know, obviously the conservative side is we're recycling, organically growing. I think we'll do better than that. Yeah, Barry, just to piggyback off John's comments, I think it's gonna be stock price dependent. Sure. We're not gonna— Sure, sure. Dilute the shareholders just to be a net acquirer. The capital recycling lets us incrementally grow earnings without having to rely on the capital markets. As we continue to upgrade the portfolio, hopefully the stock responds, and that'll give us some runway for net acquisitions. Right. Last question. John, are you seeing assets being retraded or not necessarily? Not necessarily. You know, with the volatility in the market, you would think there'd be a little bit more active retrading. I think people are finding the stability of the net lease side to be comforting, and they're kind of like, you know, get me out of bonds and stocks and CDs that might not be as safe as one might have thought, and get me into sticks and bricks with a good credit. Right. Makes sense. Thanks, guys. Thank you. Thanks, Barry. One moment for our— Yep. One moment for our next question. Our next question comes from Wesley Golladay with Baird. Your line is open. Hey. Good morning, guys. Can you talk about the overall tenant health? Do you have any changes to a watchlist if you have a watchlist? Maybe discuss how Party City, I guess, evolved in your portfolio. Was there any changes to the rent or was it just affirmed? On the watchlist, we, you know, definitely are keeping our eyes open on the obvious ones. You know, the, you know, credits have kind of even gotten better in some cases. I don't really wanna go into too much detail. Yeah, the watchlist isn't very deep because that's what we've been kind of, you know, selling first is sort of assets that, you know, may have issues in the future. As far as on rents on the Party City, I'll let Matt kind of discuss what's going on there. Yeah. We haven't finalized anything with Party City at West, you know, it looks like they're going to reaffirm their lease based on what we know today. We might give them, you know, a month of free rent or something just to help out with the process. That would be it. We've held a pretty strong line on that lease just given the strength of the underlying real estate. On that one, there are some backup interest in that location, and I think Party City knows how strong. Well, they definitely know how strong the location is because we know their sales. They probably know other people would like that space, so their negotiating position isn't all that great there. Yeah. Okay, that's good. Then more of a bigger picture question here. I mean, in the private market, the portfolio of assets appear to be in very high demand as evidenced by the cap rate you're achieving on the lower end of the portfolio. Yet you're trading at an 8% cap rate. In the past, you mentioned potentially seeking strategic alternatives, that there was a prolonged dislocation. Are you back to maybe revisiting the alternatives here? I guess maybe on the last part, one of the things you wanna do over the last year was get the portfolio into an optimal position. Do you think you're there right now? No, we're not. So, not yet, really the short answer. We still have pruning to do where we think we can, again, take some non-investment- grade properties, achieve almost investment grade sort of cap rates and redeploy to improve the portfolio even further. As we mentioned, you know, drive our investment grade exposure even higher. I think, you know, the value disconnect, you know, look, we've seen our stock before where there's been this value disconnect, and finally the market kind of figures it out. You know, our belief is, you would be a better commentator on it. Our belief is that when the volatility really, you know, skyrocketed in the market, the small caps really got hammered, and we were definitely part of it. If you look at our investor presentation on page four, I believe shows kinda where, you know, Alpine started trading way off of the other folks, even though our portfolio has gotten a lot better. We feel like we'll make up a lot of ground there, or at least the long short guys will figure it out. We'll just keep on improving the portfolio, keep on organically growing the NOI, and I think we'll be in a better spot to revisit things later in the year if the disconnect hasn't really, you know, gone away as much. Great. Thanks for the time, everyone. Thanks. One moment for our next question. Our next question comes from Michael Gorman with BTIG. Your line is open. Yeah, thanks. Good morning. John, sorry if I missed it. What was the average hold period for the assets that you sold in the quarter? Good question. Mike, it was call it about a year to a year and a half. Okay. Got it. Got it. Probably closer to a year and a half. Closer to a year and a half. Okay, perfect. You know, obviously a lot of focus on the nature of the tenants in investment grade versus non-investment- grade, which makes sense. Also just kinda looking through the industry diversification, certainly some of the industries, you know, that's where the assets came out of, consumer electronics went down, health and fitness, fast casual. Is that also a reflection of where you're thinking about the quality of the portfolio from an industry perspective? Or are those industries fine and with the right tenant, you would be willing to go back into some of those? That's a very good question. We will definitely go back into some of these tenants that we're disposing if we see kind of an arbitrage opportunity. You know, as we are, you know, being on the sell side, you know, selling where cap rates make a lot of sense, but if we can take advantage of some dislocation, no financing in the market where there may be some pruning from other sellers and be kind of a market clearing house on good locations and credits that, you know, in general, the mom and pops, you know, either the properties are too big, or people perceive the credit as being troubled. But we like the real estate, and we think the credit is better than people think. We'll definitely take advantage of that. You'll see a little bit of a barbell effect of, definitely buying more IG, but definitely taking advantage of, some dislocation, having higher yield mixed in. Okay, that's really helpful. Then one last one on the dispositions. How many of the buyers used leverage to clear the transactions or put leverage in place before they closed? Almost zero. Almost zero. Okay. Last one for me, Matt, on the guidance side. Sorry if I missed it. I know you don't put in the disclosures. Noticed, I think the share count went down a little bit. Did you change anything with the interest expense assumptions in the FFO guidance for the year as well, given a little bit more stability in interest rates so far? So for us, on the interest side, we entered into a swap for the $50 million outstanding on the revolver, that certainly stabilized the interest expense going forward. Yes, we definitely benefited a little bit on that front, in the back half of the guidance. Although the yield curve was set to drop pretty steeply in the back half of the year, so it wasn't as big of a benefit as, you know, we would have liked, relative to the assumptions. From a total share count perspective, it really just reflects the acknowledgment that we're probably not going to be active on the ATM in the coming months, just given where the stock price is. That's why we reduced the guided share count. Sure. That makes sense. Great. Thanks for the time, guys. Thanks, Mike. One moment for our next question. Our next question comes from RJ Milligan with Raymond James. Your line is open. Thanks. Good morning, guys. I just wanted to follow up on Mike's question in terms of guidance. Guidance unchanged, but obviously more front-end loaded disposition activity. I'm just curious, Matt, what are the positive impacts that are now, you know, allowing you to maintain guidance for the year? Yeah. A couple things. Good question, RJ. Obviously there's more timing drag related to the front-end disposition activity that's being offset by that interest rate swap I referenced relative to our previous assumptions. The better spreads that we're getting on net investment activity, just given the elevated disposition activity and where we think we can sell assets at, is helping offset. It's helping drive similar leverage returns where we don't have to use more leverage in consideration of not being as active on the ATM. That's a long way of saying the gains that we're putting on the dispositions are helping offset any need for additional leverage, which is how we're allowed to reduce the share count, and we're picking up incremental benefit from not having as many shares out there. Yeah, that makes sense. The dispositions in the first quarter, a bulk of them just happen to be larger boxes, and I'm curious if that is a more deliberate strategy or if that was just more coincidental. Coincidental. Okay. That's it for me. Thanks, guys. Great. One moment for our next question. Our next question comes from Rob Stevenson with Janney. Your line is open. Good morning, guys. Most of my questions have been answered, but John, what is it that you guys are assuming these days in terms of the cap rate spread between the dispositions and the acquisitions for the year? I'll answer in a different way. I mean, we're targeting anywhere from, you know, 6.5% to 7.5% and higher and kind of blending as much as possible to the 7% range. You know, that's a little bit of the bandwidth in what we're seeing. Yeah. So— Rob. That's on the acquisition side. On the disposition side, obviously we're being pretty opportunistic given one. Okay. Have you guys seen any difference in pricing between the beginning of the year and today? The investment grade is still hanging in there. There hasn't been a lot of movement on, you know, basically, you know, weaker credits. You know, shorter leases with weaker credits. Definitely you're seeing some cap rate expansion and opportunity. Now we're having a lot more discussions with regards to developers who may have a portfolio that they didn't really wanna sell and their credit lines. Obviously the rates are going up and up and, you know, we're seeing opportunities there to either buy or recapitalize. I think we're definitely optimistic that there's gonna be some transaction opportunity this summer that will be fairly interesting, just 'cause, you know, the rates are now just really creeping into some of these debt maturities and so forth for merchant builders. There should be some good hunting coming down the road. Okay. Last one for me. Matt, do you have access to any debts, you know, through your various sources, that would be more attractive to you know, today and over the next few months than the line of credit at this point, given where pricing and fees and all are? Yeah, I mean, with the inverted yield curve, it obviously benefits us to lock in rates for longer if we can capture that in a swap. Whether we're entering into a swap to fix rates relative to the floating rate on the revolver or if we were to potentially go out to a smaller bank, who maybe has a different relationship profile approach than some of the larger institutions we deal with or on the private placement side, you know, I think there's a few different areas that we could look at. Certainly we have access to debt today, given where the balance sheet is and where we're trying to run it, utilizing that debt isn't front and center as much as just recycling assets as we did in the first quarter and have indicated through the balance of the year. Okay. I lied. I guess the last one was following up on the question about the cadence of earnings. I mean, other than acquisitions, there's no other sort of things in the back half of the year that vaults you into say, you know, a $0.40 FFO quarter or anything like that's abnormal that's coming through, right? I would say from a modeling perspective, to one of the questions earlier, I think everybody can assume that the majority of the dispositions get redeployed in the second quarter. You know, we'll continue to sell assets during the second quarter. That'll probably be back end weighted in terms of the timing of the dispositions. I think that trend of acquiring maybe more towards the mid-period of a quarter and selling towards the end of the quarter is probably the cadence we'll be on in the third and fourth quarter as well. You can sort of back into what the implied acquisition activity is in the second quarter and what that means for the third and fourth. From a dispositions perspective, I think the balance of our guidance will be pretty evenly distributed between the second, third and fourth quarter. Okay, that's helpful. Thank you. Thanks, Rob. I'm not showing any further questions at this time. I turn the call back over to John for any closing remarks. Thank you very much for attending the call. Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.