Alpine Income Property Trust, Inc. (PINE)
SIC breadcrumb: Finance, Insurance, And Real Estate > Holding And Other Investment Offices > SIC 6798 Real Estate Investment Trusts
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1786117. Latest filing source: 0001104659-26-010910.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 60,532,000 | USD | 2025 | 2026-02-05 |
| Net income | -2,657,000 | USD | 2025 | 2026-02-05 |
| Assets | 715,874,000 | USD | 2025 | 2026-02-05 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001786117.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 11,720,000 | 11,837,000 | 19,248,000 | 30,126,000 | 45,191,000 | 45,644,000 | 52,227,000 | 60,532,000 |
| Net income | 4,015,000 | 3,631,000 | 985,000 | 9,964,000 | 29,720,000 | 2,917,000 | 2,066,000 | -2,657,000 |
| Operating income | 4,015,000 | 3,631,000 | 2,610,000 | 15,162,000 | 43,482,000 | 13,142,000 | 14,015,000 | 13,138,000 |
| Gross profit | 39,756,000 | 39,024,000 | 43,973,000 | 52,051,000 | ||||
| Diluted EPS | 0.11 | 0.89 | 2.17 | 0.19 | 0.14 | -0.22 | ||
| Operating cash flow | 5,625,000 | 7,546,000 | 9,394,000 | 17,200,000 | 24,652,000 | 23,167,000 | 23,424,000 | 25,752,000 |
| Capital expenditures | 223,407,000 | 189,148,000 | 119,884,000 | 132,375,000 | 244,461,000 | |||
| Dividends paid | 7,203,000 | 12,164,000 | 15,116,000 | 17,061,000 | 16,787,000 | 17,739,000 | ||
| Share buybacks | 5,014,000 | 14,616,000 | 775,000 | 8,798,000 | ||||
| Assets | 164,173,000 | 262,240,000 | 505,514,000 | 573,431,000 | 564,560,000 | 604,995,000 | 715,874,000 | |
| Liabilities | 3,468,000 | 113,147,000 | 277,612,000 | 278,056,000 | 288,947,000 | 328,500,000 | 414,618,000 | |
| Stockholders' equity | 137,529,000 | 126,759,000 | 196,523,000 | 261,618,000 | 250,743,000 | 253,027,000 | 279,876,000 | |
| Cash and cash equivalents | 12,342,000 | 1,894,000 | 8,851,000 | 9,018,000 | 4,019,000 | 1,578,000 | 4,589,000 | |
| Free cash flow | -206,207,000 | -164,496,000 | -96,717,000 | -108,951,000 | -218,709,000 |
Ratios
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Net margin | 34.26% | 30.68% | 5.12% | 33.07% | 65.77% | 6.39% | 3.96% | -4.39% |
| Operating margin | 34.26% | 30.68% | 13.56% | 50.33% | 96.22% | 28.79% | 26.83% | 21.70% |
| Return on equity | 2.64% | 0.78% | 5.07% | 11.36% | 1.16% | 0.82% | -0.95% | |
| Return on assets | 2.21% | 0.38% | 1.97% | 5.18% | 0.52% | 0.34% | -0.37% | |
| Liabilities / equity | 0.03 | 0.89 | 1.41 | 1.06 | 1.15 | 1.30 | 1.48 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001786117.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 1.05 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 0.72 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 0.21 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 11,439,000 | 80,000 | 0.01 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 11,559,000 | -837,000 | -0.05 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 11,581,000 | 335,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 12,466,000 | -260,000 | -0.02 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 12,490,000 | 204,000 | 0.01 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 13,480,000 | 3,080,000 | 0.21 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 13,791,000 | -958,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 14,206,000 | -1,179,000 | -0.08 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 14,863,000 | -1,641,000 | -0.12 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 14,563,000 | -1,310,000 | -0.09 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 16,900,000 | 1,473,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 18,406,000 | 2,185,000 | 0.06 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001104659-26-047718.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS When we refer to “we,” “us,” “our,” or “the Company,” we mean Alpine Income Property Trust, Inc. and its consolidated subsidiaries. References to “Notes to Financial Statements” refer to the Notes to the Consolidated Financial Statements of Alpine Income Property Trust, Inc. included in this Quarterly Report on Form 10-Q. Some of the comments we make in this section are forward-looking statements within the meaning of the federal securities laws. For a discussion of forward-looking statements, see the section below entitled “Special Note Regarding Forward-Looking Statements.” Certain factors that could cause actual results or events to differ materially from those the Company anticipates or projects are described in “Part I, Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in “Part II, Item 1A. Risk Factors” of this Quarterly Report on Form 10-Q. Special Note Regarding Forward-Looking Statements This Report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Forward-looking statements are made based upon management’s expectations and beliefs concerning future developments and their potential effect upon the Company. There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management. 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. These risks and uncertainties include, but are not limited to, the strength of the real estate market; the impact of a recession or downturn in economic conditions; our ability to successfully execute acquisition or development strategies; credit risk associated with us investing in commercial loans and investments; any loss of key management personnel; changes in local, regional, national and global economic conditions affecting the real estate development business and properties, including unstable macroeconomic conditions due to, among other things, geopolitical conflicts, inflation, higher interest rates, and tariffs and international trade policies; the impact of competitive real estate activity; the loss of any major property tenants; the ultimate geographic spread, severity and duration of pandemics, actions that may be taken by governmental authorities to contain or address the impact of such pandemics, and the potential negative impacts of such pandemics on the global economy and our financial condition and results of operations; and the availability of capital. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. See “Part I, Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and “Part II, Item 1A. Risk Factors” of this Quarterly Report on Form 10-Q for further discussion of these risks, as well as additional risks and uncertainties that could cause actual results or events to differ materially from those described in the Company’s forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this Quarterly Report on Form 10-Q. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q. 38 Table of Contents OVERVIEW Alpine Income Property Trust, Inc. is a Maryland corporation that conducts its operations so as to qualify as a REIT for U.S. federal income tax purposes. Substantially all of our operations are conducted through our Operating Partnership. We seek to acquire, own and operate primarily freestanding, commercial retail real estate properties located in the United States primarily leased pursuant to long-term net leases. We target tenants in industries that we believe are favorably impacted by macroeconomic trends that support consumer spending, stable and growing employment, and positive consumer sentiment, as well as tenants in industries that have demonstrated resistance to the impact of the e-commerce retail sector or who use a physical presence as a component of their omnichannel strategy. We also seek to invest in properties that are net leased to tenants that we believe have attractive credit characteristics, stable operating histories, healthy rent coverage levels, are well-located within their respective markets and/or have rents at-or-below market rent levels. Furthermore, we believe that the size of our company allows us, for at least the near term, to focus our investment activities on the acquisition of single properties or smaller portfolios of properties that represent a transaction size that most of our publicly-traded net lease REIT peers will not pursue on a consistent basis. Our strategy for investing in income-producing properties is focused on factors including, but not limited to, long-term real estate fundamentals, including those markets experiencing significant economic growth. We employ a methodology for evaluating targeted investments in income-producing properties which includes an evaluation of: (i) the attributes of the real estate (e.g., location, market demographics, comparable properties in the market, etc.); (ii) an evaluation of the existing tenant(s) (e.g., credit-worthiness, property level sales, tenant rent levels compared to the market, etc.); (iii) other market-specific conditions (e.g., tenant industry, job and population growth in the market, local economy, etc.); and (iv) considerations relating to the Company’s business and strategy (e.g., strategic fit of the asset type, property management needs, alignment with the Company’s structure, etc.). During the three months ended March 31, 2026, the Company acquired one property for a purchase price of $10.0 million through a sale-leaseback transaction that includes a tenant repurchase option. Due to the existence of the tenant repurchase option, and pursuant to FASB ASC Topic 842, Leases, GAAP requires that the $10.0 million investment be accounted for as a financing arrangement, and accordingly the related assets and corresponding revenue are included in the Company’s commercial loans and investments in the accompanying consolidated balance sheets and consolidated statement of operations. During the three months ended March 31, 2026, the Company sold three properties for an aggregate sales price of $5.8 million, generating aggregate gains on sale of $0.1 million. As of March 31, 2026, we owned 125 properties, including the four properties classified as commercial loans and investments, with an aggregate gross leasable area of 4.3 million square feet, located in 31 states, with a weighted average remaining lease term of 9.3 years. Our portfolio was 100% occupied as of March 31, 2026. We also acquire or originate commercial loans and investments associated with commercial real estate located in the United States. Our investments in commercial loans are generally secured by real estate or the borrower’s pledge of its ownership interest in an entity that owns real estate. As of March 31, 2026, the Company’s commercial loan investments portfolio had a total carrying value of $217.2 million and was comprised of eight construction/redevelopment loans, six mortgage notes, and four properties acquired pursuant to sale-leaseback transactions whereby the tenants have a future repurchase rights. The Company has no employees and is externally managed by Alpine Income Property Manager, LLC, a Delaware limited liability company and a wholly owned subsidiary of CTO (our “Manager”). CTO is a Maryland corporation that is a publicly traded diversified REIT and the sole member of our Manager. 39 Table of Contents COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 The following presents the Company’s results of operations for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025 (in thousands): Three Months Ended March 31, 2026 March 31, 2025 $ Variance % Variance Revenues: Lease Income $ 12,602 $ 11,826 $ 776 6.6% Interest Income from Commercial Loans and Investments 5,758 2,301 3,457 150.2% Other Revenue 46 79 (33) (41.8)% Total Revenues 18,406 14,206 4,200 29.6% Operating Expenses: Real Estate Expenses 2,302 2,034 268 13.2% General and Administrative Expenses 1,859 1,716 143 8.3% Provision for Impairment 508 2,031 (1,523) (75.0)% Depreciation and Amortization 7,215 7,307 (92) (1.3)% Total Operating Expenses 11,884 13,088 (1,204) (9.2)% Gain on Disposition of Assets 97 1,151 (1,054) (91.6)% Net Income from Operations 6,619 2,269 4,350 191.7% Investment and Other Income 91 45 46 102.2% Interest Expense (4,353) (3,592) (761) (21.2)% Net Income (Loss) 2,357 (1,278) 3,635 284.4% Less: Net Loss (Income) Attributable to Noncontrolling Interest (172) 99 (271) (273.7)% Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. $ 2,185 $ (1,179) $ 3,364 285.3% Lease Income and Real Estate Expenses Revenue from our property operations totaled $12.6 million and $11.8 million during the three months ended March 31, 2026 and 2025, respectively. The $0.8 million increase in lease income is primarily attributable to an increase in rents due to the volume of property acquisitions versus dispositions. The direct costs of revenues for our income properties totaled $2.3 million and $2.0 million during the three months ended March 31, 2026 and 2025, respectively. The increase in the direct costs of revenues is reflective of the Company’s expanded property portfolio. Commercial Loans and Investments Interest income from commercial loans and investments totaled $5.8 million and $2.3 million for the three months ended March 31, 2026 and 2025, respectively. The $3.5 million increase in income is attributable to the expanded portfolio of commercial loans and investments which, as of March 31, 2026, was comprised of eight construction/redevelopment loans, six mortgage notes, and four properties acquired pursuant to sale-leaseback transactions whereby the tenants have a future repurchase rights. As of March 31, 2025, the Company’s portfolio of commercial loans and investments was comprised of six construction loans, two mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right. 40 Table of Contents Other Revenue Other revenue totaled $0.1 million for the three months ended March 31, [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements When we refer to “we,” “us,” “our,” “PINE,” or “the Company,” we mean Alpine Income Property Trust, Inc. and its consolidated subsidiaries. References to “Notes to the Financial Statements” refer to the Notes to the Consolidated Financial Statements of Alpine Income Property Trust, Inc. included in Item 8 of this Annual Report on Form 10-K. Also, when the Company uses any of the words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” or similar expressions, the Company is making forward-looking statements. Although management believes that the expectations reflected in such forward-looking statements are based upon present expectations and reasonable assumptions, the Company’s actual results could differ materially from those set forth in the forward-looking statements. Certain factors that could cause actual results or events to differ materially from those the Company anticipates or projects are described in “Item 1A. Risk Factors” of this Annual Report on Form 10-K. Given these uncertainties, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this Annual Report on Form 10-K or any document incorporated herein by reference. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this Annual Report on Form 10-K. The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this report. Overview Alpine Income Property Trust, Inc. is a Maryland corporation that conducts its operations so as to qualify as a REIT for U.S. federal income tax purposes. Substantially all of our operations are conducted through our Operating Partnership. 55 Table of Contents We seek to acquire, own and operate primarily freestanding, commercial retail real estate properties located in the United States primarily leased pursuant to long-term net leases. We target tenants in industries that we believe are favorably impacted by macroeconomic trends that support consumer spending, stable and growing employment, and positive consumer sentiment, as well as tenants in industries that have demonstrated resistance to the impact of the e-commerce retail sector or who use a physical presence as a component of their omnichannel strategy. We also seek to invest in properties that are net leased to tenants that we believe have attractive credit characteristics, stable operating histories, healthy rent coverage levels, are well-located within their respective markets and/or have rents at-or-below market rent levels. Furthermore, we believe that the size of our company allows us, for at least the near term, to focus our investment activities on the acquisition of single properties or smaller portfolios of properties that represent a transaction size that most of our publicly-traded net lease REIT peers will not pursue on a consistent basis. The Company operates in two primary business segments: income properties and commercial loans and investments. The Company has no employees and is externally managed by our Manager, a Delaware limited liability company and a wholly owned subsidiary of CTO. CTO is a Maryland corporation that is a publicly traded diversified REIT and the sole member of our Manager. See Note 19, “Related Party Management Company” in the Notes to the Financial Statements for further discussion of the Company’s related party transactions with CTO. Our strategy for investing in income-producing properties is focused on factors including, but not limited to, long-term real estate fundamentals, including those markets experiencing significant economic growth. We employ a methodology for evaluating targeted investments in income-producing properties which includes an evaluation of: (i) the attributes of the real estate (e.g., location, market demographics, comparable properties in the market, etc.); (ii) an evaluation of the existing tenant(s) (e.g., credit-worthiness, property level sales, tenant rent levels compared to the market, etc.); (iii) other market-specific conditions (e.g., tenant industry, job and population growth in the market, local economy, etc.); and (iv) considerations relating to the Company’s business and strategy (e.g., strategic fit of the asset type, property management needs, alignment with the Company’s structure, etc.). During the year ended December 31, 2025, the Company acquired 13 properties for a combined purchase price of $100.6 million. During the year ended December 31, 2025, the Company sold 20 properties for an aggregate sales price of $72.8 million, generating aggregate gains on sale of $2.1 million. The aggregate gains included gains on sale totaling $6.9 million net of losses on sale totaling $4.8 million. The $4.8 million in losses were primarily attributable to the sale of four properties leased to Walgreens for an aggregate $4.3 million loss. As of December 31, 2025, we owned 127 properties with an aggregate gross leasable area of 4.3 million square feet, located in 32 states, with a weighted average remaining lease term of 8.4 years. Our portfolio was 99.5% occupied as of December 31, 2025. We also acquire or originate commercial loans and investments associated with real estate located in the United States. Our investments in commercial loans are generally secured by real estate or the borrower’s pledge of its ownership interest in an entity that owns real estate. During the year ended December 31, 2025, the Company invested in 12 commercial loans with a total funding commitment of $139.3 million. Additionally, during the year ended December 31, 2025, the Company amended five existing commercial loan investments whereby certain maturity dates were extended and the total face amounts of four loan investments were upsized by an aggregate of $39.7 million. Also during the year ended December 31, 2025, the Company sold a $10.0 million A-1 participation interest in a $29.5 million mortgage note that was initially originated by the Company. As of December 31, 2025, the Company’s commercial loan investments portfolio included nine construction loans, six mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right, with an aggregate carrying value of $167.6 million. 56 Table of Contents Historical Financial Information The following table summarizes our selected historical financial information for each of the last three fiscal years (in thousands, except per share and dividend data). The selected financial information has been derived from our audited consolidated financial statements. Year Ended December 31, 2025 December 31, 2024 December 31, 2023 Total Revenues $ 60,532 $ 52,227 $ 45,644 Net Income From Operations $ 13,138 $ 14,015 $ 13,142 Net Income (Loss) $ (2,885) $ 2,254 $ 3,266 Less: Net Loss (Income) Attributable to Noncontrolling Interest 228 (188) (349) Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. (2,657) 2,066 2,917 Less: Distributions to Preferred Stockholders (552) — — Net Income (Loss) Attributable to Common Stockholders $ (3,209) $ 2,066 $ 2,917 Net Income (Loss) Attributable to Common Stockholders Basic $ (0.22) $ 0.15 $ 0.21 Diluted $ (0.22) $ 0.14 $ 0.19 Dividends Declared and Paid - Preferred Stock $ 0.272 $ - $ - Dividends Declared and Paid - Common Stock $ 1.140 $ 1.110 $ 1.100 Balance Sheet Data (in thousands): As of December 31, 2025 2024 Total Real Estate, at Cost $ 495,766 $ 489,867 Real Estate—Net $ 441,320 $ 444,017 Assets Held For Sale $ 8,077 $ 2,254 Commercial Loans and Investments $ 167,553 $ 89,629 Cash and Cash Equivalents and Restricted Cash $ 38,999 $ 7,951 Intangible Lease Assets—Net $ 48,925 $ 43,925 Straight-Line Rent Adjustment $ 2,092 $ 1,485 Other Assets $ 8,908 $ 15,734 Total Assets $ 715,874 $ 604,995 Accounts Payable, Accrued Expenses, and Other Liabilities $ 7,877 $ 8,445 Prepaid Rent and Deferred Revenue $ 14,031 $ 2,412 Intangible Lease Liabilities—Net $ 4,971 $ 4,774 Obligation Under Participation Agreement $ 10,000 $ 11,403 Long-Term Debt $ 377,739 $ 301,466 Total Liabilities $ 414,618 $ 328,500 Total Equity $ 301,256 $ 276,495 57 Table of Contents Non-GAAP Financial Measures Our reported results are presented in accordance with GAAP. We also disclose FFO and AFFO, both of which are non-GAAP financial measures. We believe these two non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income or loss or as a performance measure or cash flows from operations as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income or loss adjusted to exclude real estate related depreciation and amortization, as well as extraordinary items (as defined by GAAP) such as net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and impairments associated with the implementation of current expected credit losses on commercial loans and investments at the time of origination, including the pro rata share of such adjustments of unconsolidated subsidiaries. To derive AFFO, we further modify the NAREIT computation of FFO to include other adjustments to GAAP net income or loss related to non-cash revenues and expenses such as loss on extinguishment of debt, amortization of above- and below-market lease related intangibles, straight-line rental revenue, amortization of deferred financing costs, non-cash compensation, and other non-cash adjustments to income or expense. Such items may cause short-term fluctuations in net income or loss but have no impact on operating cash flows or long-term operating performance. We use AFFO as one measure of our performance when we formulate corporate goals. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains or losses on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that AFFO is an additional useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. FFO and AFFO may not be comparable to similarly titled measures employed by other companies. 58 Table of Contents Reconciliation of Non-GAAP Measures (in thousands, except share data): Year Ended December 31, 2025 December 31, 2024 December 31, 2023 Net Income (Loss) $ (2,885) $ 2,254 $ 3,266 Depreciation and Amortization 27,383 25,594 25,758 Provision for Impairment 7,416 1,693 3,220 Gain on Disposition of Assets (2,070) (3,443) (9,334) Funds From Operations $ 29,844 $ 26,098 $ 22,910 Distributions to Preferred Stockholders (552) — — Funds From Operations Attributable to Common Stockholders $ 29,292 $ 26,098 $ 22,910 Adjustments: Gain on Extinguishment of Debt — — (23) Amortization of Intangible Assets and Liabilities to Lease Income (613) (517) (417) Straight-Line Rent Adjustment (703) (515) (402) Non-Cash Compensation 380 247 318 Amortization of Deferred Financing Costs to Interest Expense 795 720 710 Other Non-Cash Adjustments 222 152 115 Adjusted Funds From Operations Attributable to Common Stockholders $ 29,373 $ 26,185 $ 23,211 Weighted Average Number of Common Shares: Basic 14,328,451 13,858,257 13,925,362 Diluted 15,552,305 15,082,111 15,560,524 Supplemental Disclosure: PIK Interest Earned $ 237 $ — $ — PIK Interest Paid 194 — — PIK Interest Earned in Excess of Cash Paid $ 43 $ — $ — Other Data (in thousands, except per share data): Year Ended December 31, 2025 December 31, 2024 December 31, 2023 FFO Attributable to Common Stockholders $ 29,292 $ 26,098 $ 22,910 FFO Attributable to Common Stockholders per Diluted Share $ 1.88 $ 1.73 $ 1.47 AFFO Attributable to Common Stockholders $ 29,373 $ 26,185 $ 23,211 AFFO Attributable to Common Stockholders per Diluted Share $ 1.89 $ 1.74 $ 1.49 59 Table of Contents COMPARISON OF THE YEARS ENDED DECEMBER 31, 2025 AND 2024 The following presents the Company’s results of operations for the year ended December 31, 2025, as compared to the year ended December 31, 2024 (in thousands): Year Ended December 31, 2025 December 31, 2024 $ Variance % Variance Revenues: Lease Income $ 48,657 $ 46,005 $ 2,652 5.8% Interest Income from Commercial Loans and Investments 11,350 5,761 5,589 97.0% Other Revenue 525 461 64 13.9% Total Revenues 60,532 52,227 8,305 15.9% Operating Expenses: Real Estate Expenses 7,956 7,793 163 2.1% General and Administrative Expenses 6,709 6,575 134 2.0% Provision for Impairment 7,416 1,693 5,723 338.0% Depreciation and Amortization 27,383 25,594 1,789 7.0% Total Operating Expenses 49,464 41,655 7,809 18.7% Gain on Disposition of Assets 2,070 3,443 (1,373) (39.9)% Net Income From Operations 13,138 14,015 (877) (6.3)% Investment and Other Income 242 247 (5) (2.0)% Interest Expense (16,265) (12,008) (4,257) (35.5)% Net Income (Loss) (2,885) 2,254 (5,139) (228.0)% Less: Net Loss (Income) Attributable to Noncontrolling Interest 228 (188) 416 221.3% Net Income (Loss) Attributable to Alpine Income Property Trust, Inc. $ (2,657) $ 2,066 $ (4,723) (228.6)% Less: Distributions to Preferred Stockholders (552) — (552) (100.0)% Net Income (Loss) Attributable to Common Stockholders $ (3,209) $ 2,066 $ (5,275) (255.3)% Lease Income and Real Estate Expenses Revenue from our income properties during the years ended December 31, 2025 and 2024 totaled $48.7 million and $46.0 million, respectively. The increase in lease revenue is reflective of an increase in rents due to the volume of property acquisitions, partially offset by dispositions, as well as certain one-time reduced revenues related to tenant credit loss. The direct costs of revenues for our income properties totaled $8.0 million and $7.8 million during the years ended December 31, 2025 and 2024, respectively. The increase in the direct cost of revenues is reflective of the Company’s expanded property portfolio. Commercial Loans and Investments Interest income from commercial loans and investments totaled $11.4 million and $5.8 million for the years ended December 31, 2025 and 2024, respectively. The increase in income is attributable to the expanded portfolio of commercial loans and investments, which as December 31, 2025, was comprised of nine construction loans, six mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right. As of December 31, 2024, the Company’s portfolio of commercial loans and investments was comprised of five construction loans, one mortgage note, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right. Other Revenue Other revenue totaled $0.5 million for each of the years ended December 31, 2025 and 2024. The revenue is attributable to fees earned from a revenue sharing agreement the Company entered into with CTO as further described in Note 19, “Related Party Management Company” in the Notes to the Financial Statements. 60 Table of Contents General and Administrative Expenses The following table represents the Company’s general and administrative expenses for the year ended December 31, 2025 as compared to the year ended December 31, 2024 (in thousands): December 31, 2025 December 31, 2024 $ Variance % Variance Management Fee to Manager $ 4,420 $ 4,241 $ 179 4.2% Director Stock Compensation Expense 510 304 206 67.8% Director & Officer Insurance Expense 271 218 53 24.3% Additional General and Administrative Expense 1,508 1,812 (304) (16.8)% Total General and Administrative Expenses $ 6,709 $ 6,575 $ 134 2.0% General and administrative expenses totaled $6.7 million and $6.6 million during the years ended December 31, 2025 and 2024, respectively. The $0.1 million increase is primarily attributable to a $0.2 million increase in management fee expense due to an increase in the weighted average of the Company’s equity base and a $0.2 million increase in director stock compensation, partially offset by a $0.1 million decrease in corporate legal and consulting fees and a $0.2 million decrease in state tax expenses. Provision for Impairment During the year ended December 31, 2025, the Company recorded a $7.4 million impairment charge of which $0.8 million represents the current expected credit losses (“CECL”) reserve related to our commercial loans and investments and $6.6 million represents the provision for losses related to our income properties as further described in Note 7, “Provision for Impairment” in the Notes to the Financial Statements. During the year ended December 31, 2024, the Company recorded a $1.7 million impairment charge of which $0.6 million represents the CECL reserve related to our commercial loans and investments and $1.1 million represents the provision for losses related to our income properties as further described in Note 7, “Provision for Impairment” in the Notes to the Financial Statements. Depreciation and Amortization Depreciation and amortization expense totaled $27.4 million and $25.6 million during the years ended December 31, 2025 and 2024, respectively. The $1.8 million increase in the depreciation and amortization expense is reflective of the Company’s change in portfolio as well as the timing of acquisitions versus dispositions. Gain on Disposition of Assets During the year ended December 31, 2025, the Company sold 20 properties for an aggregate sales price of $72.8 million, generating aggregate gains on sale of $2.1 million. The aggregate 2025 gains included gains on sale totaling $6.9 million net of losses on sale totaling $4.8 million. The $4.8 million in losses were primarily attributable to the sale of four properties leased to Walgreens for an aggregate $4.3 million loss. During the year ended December 31, 2024, the Company sold 15 properties for an aggregate sales price of $62.0 million, generating aggregate gains on sale of $3.4 million. The aggregate 2024 gains included gains on sale totaling $5.1 million net of losses on sale totaling $1.7 million. The $1.7 million in losses were primarily attributable to the sale of two properties formerly leased to convenience stores and one property leased to Walgreens, for an aggregate $1.1 million loss. Investment and Other Income Investment and other income totaled $0.2 million during each of the years ended December 31, 2025 and 2024. 61 Table of Contents Interest Expense Interest expense totaled $16.3 million and $12.0 million during the years ended December 31, 2025 and 2024, respectively. The $4.3 million increase in interest expense is attributable to the higher average outstanding balance on the Company’s Credit Facility as well as an increase in the fixed interest rate for the 2027 Term Loan effective in November of 2024. The overall increase in the Company’s long-term debt was primarily utilized to fund the acquisition of properties and commercial loans and investments during 2025. Net Income (Loss) Net loss totaled $2.9 million and net income totaled $2.3 million during the years ended December 31, 2025 and 2024, respectively. The decrease in net income is attributable to the factors described above, most notably to the $5.7 million increase in provision for impairment. COMPARISON OF THE YEARS ENDED DECEMBER 31, 2024 AND 2023 The following presents the Company’s results of operations for the year ended December 31, 2024, as compared to the year ended December 31, 2023 (in thousands): Year Ended December 31, 2024 December 31, 2023 $ Variance % Variance Revenues: Lease Income $ 46,005 $ 44,967 $ 1,038 2.3% Interest Income from Commercial Loans and Investments 5,761 637 5,124 804.4% Other Revenue 461 40 421 1052.5% Total Revenues 52,227 45,644 6,583 14.4% Operating Expenses: Real Estate Expenses 7,793 6,580 1,213 18.4% General and Administrative Expenses 6,575 6,301 274 4.3% Provision for Impairment 1,693 3,220 (1,527) (47.4)% Depreciation and Amortization 25,594 25,758 (164) (0.6)% Total Operating Expenses 41,655 41,859 (204) (0.5)% Gain on Disposition of Assets 3,443 9,334 (5,891) (63.1)% Gain on Extinguishment of Debt — 23 (23) (100.0)% Net Income From Operations 14,015 13,142 873 6.6% Investment and Other Income 247 289 (42) (14.5)% Interest Expense (12,008) (10,165) (1,843) (18.1)% Net Income 2,254 3,266 (1,012) (31.0)% Less: Net Income Attributable to Noncontrolling Interest (188) (349) 161 46.1% Net Income Attributable to Alpine Income Property Trust, Inc. $ 2,066 $ 2,917 $ (851) (29.2)% Lease Income and Real Estate Expenses Revenue from our income properties during the years ended December 31, 2024 and 2023 totaled $46.0 million and $45.0 million, respectively. The increase in revenues is reflective of the Company’s volume of acquisitions, partially offset by dispositions, as well as certain one-time reduced revenues related to tenant credit loss and bankruptcy. The direct costs of revenues for our income properties totaled $7.8 million and $6.6 million during the years ended December 31, 2024 and 2023, respectively. The $1.2 million increase in the direct cost of revenues is reflective of a portion of portfolio expenses being non-recoverable pursuant to tenant leases. 62 Table of Contents Commercial Loans and Investments Interest income from commercial loans and investments totaled $5.8 million and $0.6 million for the years ended December 31, 2024 and 2023, respectively. The increase in income is attributable to the expanded portfolio of commercial loans and investments, which as December 31, 2024, was comprised of five construction loans, one mortgage note, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right. As of December 31, 2023, the Company’s portfolio of commercial loans and investments was comprised of two construction loans and one mortgage note. Other Revenue Other revenue totaled $0.5 million and less than $0.1 million for the years ended December 31, 2024 and 2023, respectively. The revenue is attributable to fees earned from a revenue sharing agreement the Company entered into with CTO as further described in Note 19, “Related Party Management Company” in the Notes to the Financial Statements. The increase is attributable to the year ended December 31, 2024 being the first full year the revenue sharing agreement was in effect. General and Administrative Expenses The following table represents the Company’s general and administrative expenses for the year ended December 31, 2024 as compared to the year ended December 31, 2023 (in thousands): December 31, 2024 December 31, 2023 $ Variance % Variance Management Fee to Manager $ 4,241 $ 4,356 $ (115) (2.6)% Director Stock Compensation Expense 304 318 (14) (4.4)% Director & Officer Insurance Expense 218 247 (29) (11.7)% Additional General and Administrative Expense 1,812 1,380 432 31.3% Total General and Administrative Expenses $ 6,575 $ 6,301 $ 274 4.3% General and administrative expenses totaled $6.6 million and $6.3 million during the years ended December 31, 2024 and 2023, respectively. The $0.3 million increase is primarily attributable to a $0.2 million increase in corporate legal and consulting fees and a $0.1 million increase in state tax expenses, partially offset by a $0.1 million decrease in management fee expense due to a decrease in the weighted average of the Company’s equity base. Provision for Impairment During the year ended December 31, 2024, the Company recorded a $1.7 million impairment charge of which $0.6 million represents the CECL reserve related to our commercial loans and investments and $1.1 million represents the provision for losses related to our income properties as further described in Note 7, “Provision for Impairment” in the Notes to the Financial Statements. During the year ended December 31, 2023, the Company recorded a $3.2 million impairment charge of which $0.3 million represents the CECL reserve related to our commercial loans and investments and $2.9 million represents the provision for losses related to our income properties as further described in Note 7, “Provision for Impairment” in the Notes to the Financial Statements. Depreciation and Amortization Depreciation and amortization expense totaled $25.6 million and $25.8 million during the years ended December 31, 2024 and 2023, respectively. The $0.2 million decrease in the depreciation and amortization expense is reflective of the Company’s change in portfolio as well as the timing of acquisitions versus dispositions. 63 Table of Contents Gain on Disposition of Assets During the year ended December 31, 2024, the Company sold 15 properties for an aggregate sales price of $62.0 million, generating aggregate gains on sale of $3.4 million. The aggregate 2024 gains included gains on sale totaling $5.1 million net of losses on sale totaling $1.7 million. The $1.7 million in losses were primarily attributable to the sale of two properties formerly leased to convenience stores and one property leased to Walgreens, for an aggregate $1.1 million loss. During the year ended December 31, 2023, the Company sold 24 properties for an aggregate sales price of $108.3 million, generating aggregate gains on sale of $9.3 million. Investment and Other Income Investment and other income totaled $0.2 million and $0.3 million during the years ended December 31, 2024 and 2023, respectively. The decrease is attributable to lower interest rates on bank deposits. Interest Expense Interest expense totaled $12.0 million and $10.2 million during the years ended December 31, 2024 and 2023, respectively. The $1.8 million increase in interest expense is attributable to the higher average outstanding debt balance for increased interest expense of $1.2 million as well as $0.6 million of interest expense resulting from the sale of participation interest in the Company’s $23.4 million Mortgage Note as defined and further described in Note 4, “Commercial Loans and Investments” in the Notes to the Financial Statements. The overall increase in the Company’s long-term debt was primarily utilized to fund the acquisition of properties and commercial loans and investments during 2024. Net Income Net income totaled $2.3 million and $3.3 million during the years ended December 31, 2024 and 2023, respectively. The decrease in net income is attributable to the factors described above, most significantly to the $5.9 million decrease in gain on disposition of assets during the year ended December 31, 2024. The decreased gain on disposition of assets is the result of reduced disposition activity during the year ended December 31, 2024 as compared to 2023. LIQUIDITY AND CAPITAL RESOURCES Cash and Cash Equivalents and Restricted Cash. Cash totaled $39.0 million at December 31, 2025, including restricted cash of $34.4 million. See Note 2 “Summary of Significant Accounting Policies” under the heading Restricted Cash in the Notes to the Financial Statements for the Company’s disclosure related to its restricted cash balance at December 31, 2025. Our net cash provided by our operating activities totaled $25.8 million and $23.4 million during the years ended December 31, 2025 and 2024, respectively. The primary component of the increase in operating cash flows is due to the increase in our commercial loan investment portfolio revenue. Our net cash used in investing activities totaled $103.9 million for the year ended December 31, 2025, compared to net cash used in investing activities of $55.7 million for the year ended December 31, 2024, an increase in cash outflows of $48.2 million. The increase in net cash used in investing activities of $48.2 million is primarily related to a net $25.0 million increase in acquisitions versus dispositions during the year ended December 31, 2025, in addition to a net $36.1 million increase related to investments in the Company’s commercial loans and investment portfolio. The Company also received cash totaling $15.0 million and $2.2 million during the years ended December 31, 2025 and 2024, respectively, for commercial loan reserves that are classified as restricted cash when received. 64 Table of Contents Our net cash provided by financing activities totaled $109.2 million for the year ended December 31, 2025, compared to net cash provided by financing activities of $26.5 million for the year ended December 31, 2024, for an increase in cash inflows from financing activities of $82.7 million. The increase of $82.7 million is primarily related to a $50.5 million increase in net proceeds from long-term debt during the year ended December 31, 2025 as well as $48.1 million proceeds received from sales of Series A Preferred Stock, partially offset by $6.3 million less proceeds received from sales of stock under the Company’s “at-the-market” equity offering programs and an $8.0 million increase in cash used to repurchase the Company’s common stock during the year ended December 31, 2025. Long-Term Debt. At December 31, 2025, the commitment level under the Credit Facility was $250.0 million and the Company had an outstanding balance of $178.0 million. The available borrowing capacity, subject to borrowing base restrictions, was $40.6 million as of December 31, 2025. The Company also had $200.0 million in term loans outstanding as of December 31, 2025. See Note 13, “Long-Term Debt” in the Notes to the Financial Statements for the Company’s disclosure related to its long-term debt balance at December 31, 2025. Acquisitions and Investments. As noted previously, the Company acquired 13 properties during the year ended December 31, 2025, for an aggregate purchase price of $100.6 million, as further described in Note 3 “Property Portfolio” in the Notes to the Financial Statements. The Company also invested in 12 commercial loans with a total funding commitment of $139.3 million during the year ended December 31, 2025. Additionally, during the year ended December 31, 2025, the Company amended five existing commercial loan investments whereby certain maturity dates were extended and the total face amounts of four loan investments were upsized by an aggregate of $39.7 million. As of December 31, 2025, the Company’s commercial loan investments portfolio included nine construction loans, six mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right, with an aggregate carrying value of $167.6 million. See Note 4, “Commercial Loans and Investments” in the Notes to the Financial Statements for additional disclosures related to the Company’s commercial loans and investments as of December 31, 2025. Dispositions. During the year ended December 31, 2025, the Company sold 20 properties for a total sales price of $72.8 million, generating aggregate gains on sale of $2.1 million, as further described in Note 3 “Property Portfolio” in the Notes to the Financial Statements. Also during the year ended December 31, 2025, the Company sold a $10.0 million A-1 participation interest in the Company’s initial $29.5 million mortgage note. See Note 4, “Commercial Loans and Investments” in the Notes to the Financial Statements for additional disclosures related to the Company’s commercial loans and investments as of December 31, 2025. Capital Expenditures. As of December 31, 2025, the Company has committed to fund certain capital improvements related to several properties, which include tenant improvements, landlord work, leasing commissions, and other capital improvements. As of December 31, 2025, the commitments totaled $2.6 million, of which $2.2 million has been paid, leaving a remaining commitment of $0.4 million. The improvements are generally expected to be completed within 12 months of December 31, 2025. Pursuant to a certain lease agreements executed during the year ended December 31, 2025, the Company is committed to funding $0.3 million in tenant improvements. The Company is committed to fund nine construction loans as described in Note 4, “Commercial Loans and Investments” in the Notes to the Financial Statements. The unfunded portion of the construction loans totaled $45.7 million as of December 31, 2025. The Company is contractually obligated under its various long-term debt agreements. In the aggregate, the Company is obligated under such agreements to repay $278.0 million on a long-term basis, to be repaid in excess of one year, with $100.0 million due within one year. We believe we will have sufficient liquidity to fund our operations, capital requirements, maintenance, and debt service requirements over the next twelve months and into the foreseeable future, with cash on hand, cash flow from our operations, proceeds from the completion of the sales of assets utilizing the reverse like-kind 1031 exchange structure, $79.9 million of availability under the 2022 ATM Program, $32.9 million of availability under the 2025 Preferred Stock ATM Program, and $40.6 million of available capacity on the existing $250.0 million Credit Facility, as of December 31, 2025. 65 Table of Contents The Board and management consistently review the allocation of capital with the goal of providing the best long-term return for our stockholders. These reviews consider various alternatives, including increasing or decreasing regular dividends, repurchasing the Company’s securities, and retaining funds for reinvestment. Annually, the Board reviews our business plan and corporate strategies, and makes adjustments as circumstances warrant. Management’s focus is to continue our strategy of investing in net leased properties and commercial loans and investments by utilizing the capital we raise and available borrowing capacity from the Credit Facility to increase our portfolio of income-producing properties and commercial loan and investments portfolio, providing stabilized cash flows with strong risk-adjusted returns primarily in larger metropolitan areas and growth markets. CRITICAL ACCOUNTING ESTIMATES Critical accounting estimates include those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the Company’s financial condition or results of operations. Our most significant estimate is as follows: Purchase Accounting for Acquisitions of Real Estate Subject to a Lease. As required by GAAP, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value. The assumptions underlying the allocation of relative fair values are based on market information including, but not limited to: (i) the estimate of replacement cost of improvements under the cost approach, (ii) the estimate of land values based on comparable sales under the sales comparison approach, and (iii) the estimate of future benefits determined by either a reasonable rate of return over a single year’s net cash flow, or a forecast of net cash flows projected over a reasonable investment horizon under the income capitalization approach. The underlying assumptions are subject to uncertainty and thus any changes to the allocation of fair value to each of the various line items within the Company’s consolidated balance sheets could have an impact on the Company’s financial condition as well as results of operations due to resulting changes in depreciation and amortization as a result of the fair value allocation. The acquisitions of real estate subject to this estimate totaled 13 properties for a combined purchase price of $100.6 million, or an aggregate acquisition cost of $101.3 million, for the year ended December 31, 2025 and 9 properties for a combined purchase price of $72.2 million for the year ended December 31, 2024. See Note 2, “Summary of Significant Accounting Policies” in the Notes to the Financial Statements for further discussion of the Company’s accounting estimates and policies.