Alpine Income Property Trust Funds $14.1 Million First Mortgage Loan Investment

Rhea-AI Summary

Alpine Income Property Trust (NYSE: PINE) funded a $14.1 million first mortgage loan at closing for a luxury residential development near Austin, Texas, with a phase one commitment of up to $29.5 million and a phase two commitment of up to $31.8 million.

The 36-month loan carries an initial interest rate of 17.0% (including 4.0% paid-in-kind), steps to 16.0% in months 7–12 and 14.0% thereafter, and is repayable as collateralized home lots are sold, with sales anticipated to begin in late 2025.

Positive

• Initial funding of $14.1 million at closing
• Phase one commitment up to $29.5 million
• Phase two commitment up to $31.8 million
• High coupon starting at 17.0% inclusive of 4.0% PIK
• Repayment tied to lot sales expected to begin in late 2025

Negative

• Remaining phase one funding subject to borrower conditions
• Phase two funding contingent on borrower satisfying conditions (anticipated early 2026)
• Repayment timing depends on lot sales anticipated in late 2025, creating timing risk
• Paid-in-kind (4.0%) component increases effective loan carry and principal accrual

Insights

Real Estate Credit Analyst

Alpine originated a secured first mortgage funding of $14.1 million with high contractual interest and larger commit stages.

Alpine funded $14.1 million of a phase one first mortgage on a luxury residential lot development in the Austin metro, with a phase one commitment up to $29.5 million and a potential phase two commitment up to $31.8 million. The loan carries an effective contractual interest profile of 17.0% initially (including 4.0% paid-in-kind), stepping to 16.0% in months 7–12 and to 14.0% thereafter, and has a 36-month repayment tied to sales of collateralized home lots anticipated to begin in late 2025.

Key dependencies and risks are explicit: further funding under both phases depends on the borrower satisfying conditions, and repayments depend on lot sales beginning in late 2025. The loan’s high stated yields and the company’s note about institutional inbound interest are factual items that could improve near-term cash yield if the borrower meets conditions and sales proceed as anticipated; conversely, delays in lot sales or unmet conditions would delay funding and repayment. Monitor the borrower’s condition, satisfaction of funding conditions, and actual lot-sale timing through the remainder of 2025 and into early 2026 as the most concrete near-term milestones.

WINTER PARK, Fla., Oct. 15, 2025 (GLOBE NEWSWIRE) -- Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company”), a publicly traded real estate investment trust that owns and operates a portfolio of single tenant net leased commercial income properties, today announced the origination of a first mortgage loan investment secured by a luxury residential development with over 130 lots located in the Austin, Texas metropolitan area. At closing, the Company funded $14.1 million of a phase one loan, with a total commitment for the phase one loan of up to $29.5 million. The Company anticipates funding the remainder of the phase one loan prior to the end of 2025, subject to the borrower’s satisfaction of certain conditions. Additionally, the loan agreement provides for a phase two loan with a total commitment of up to $31.8 million. The Company’s funding of loan commitments under the phase two loan is subject to the borrower’s satisfaction of certain conditions, which the Company currently anticipates will be satisfied in early 2026.

The interest rate for all amounts funded under both the phase one and phase two loans, commencing at the initial phase one origination, is 17.0%, inclusive of 4.0% paid-in-kind for the full loan term, and steps down to 16.0% during months 7 to 12, and to 14.0% thereafter. The 36-month loan will be repaid as collateralized home lots are sold, with such sales anticipated to begin in late 2025.  

“This first mortgage loan on luxury residential lots in the Austin area enables us to partner with a premier sponsor at an attractive yield,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. “It also reflects our proactive approach to capital redeployment related to anticipated proceeds from late 2025 and anticipated 2026 investment maturities, which we believe will help to ensure continuity in earnings. Further, we believe that the strong inbound interest we have seen from potential institutional partners seeking to purchase a senior tranche of this investment highlights the appeal of this opportunity, and we currently anticipate participating out a portion of this note to further enhance our yield.”

About Alpine Income Property Trust, Inc.

Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that seeks to deliver attractive risk-adjusted returns and dependable cash dividends by investing in, owning and operating a portfolio of single tenant net leased commercial income properties that are predominantly leased to high-quality publicly traded and credit-rated tenants.

We encourage you to review our most recent investor presentation which is available on our website at http://www.alpinereit.com.

Safe Harbor

This press release contains “forward-looking statements.” Forward-looking statements include statements that may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “potential,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Statements, among others, relating to the Company’s anticipated future fundings (including the borrower’s anticipated satisfaction of certain conditions to those future fundings), repayment of the loan as collateralized home lots are sold with such sales anticipated to begin in late 2025, the yield of the loan, anticipated proceeds from late 2025 and anticipated 2026 investment maturities, and the Company potentially participating out a portion of this note to further enhance yield are forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy, the ability of the borrower to satisfy certain conditions and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include general business and economic conditions, volatility and uncertainty in the credit markets and broader financial markets, tariffs and international trade policies, risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, credit risk associated with the Company investing in commercial loans and investments, illiquidity of real estate investments and potential damages from natural disasters, the impact of epidemics or pandemics on the Company’s business and the businesses of its tenants and borrowers and the impact of such epidemics or pandemics on the U.S. economy and market conditions generally, other factors affecting the Company’s business or the businesses of its tenants or borrowers that are beyond the control of the Company or its tenants or borrowers, and the factors set forth under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Contact:
Investor Relations
ir@alpinereit.com

FAQ

What did Alpine Income Property Trust (PINE) fund on October 15, 2025?

The company funded a $14.1 million initial tranche of a first mortgage loan secured by a luxury residential development near Austin, Texas.

What are the total commitments and timeline for PINE’s mortgage loan investment?

Phase one commitment is up to $29.5 million (remainder expected before end of 2025 subject to conditions); phase two commitment is up to $31.8 million (anticipated early 2026 subject to conditions).

What interest rate does PINE’s loan carry and how does it change over time?

The loan starts at an effective 17.0% (including 4.0% paid-in-kind), steps to 16.0% in months 7–12, then to 14.0% thereafter.

How and when is the loan expected to be repaid for PINE’s October 2025 mortgage investment?

The 36-month loan is repayable as collateralized home lots are sold, with such sales anticipated to begin in late 2025.

Does PINE plan to sell part of the mortgage note for this investment?

The company said it currently anticipates participating out a portion of the note to potential institutional partners to enhance yield.