Alpine Income Property Trust, Inc.

Previous wording

During the six months ended June 30, 2025, the Company acquired three properties for a combined purchase price of $39.7 million, or a cost of $39.9 million including capitalized acquisition costs. During the six months ended June 30, 2025, the Company sold eight properties for an aggregate sales price of $28.2 million, generating aggregate gains on sale of $2.1 million.

Current wording

During the nine months ended September 30, 2025, the Company acquired five properties for an aggregate purchase price of $60.8 million, or a cost of $61.1 million including capitalized acquisition costs. During the nine months ended September 30, 2025, the Company sold 11 properties for an aggregate sales price of $34.3 million, generating aggregate gains on sale of $2.0 million.

Previous wording

As of June 30, 2025, we owned 129 properties, including the three properties classified as commercial loans and investments, with an aggregate gross leasable area of 3.9 million square feet, located in 34 states, with a weighted average remaining lease term of 8.9 years. Our portfolio was 98% occupied as of June 30, 2025.

Current wording

As of September 30, 2025, we owned 128 properties, including the three properties classified as commercial loans and investments, with an aggregate gross leasable area of 4.1 million square feet, located in 34 states, with a weighted average remaining lease term of 8.7 years. Our portfolio was 99% occupied as of September 30, 2025.

Previous wording

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 June 30, 2025, the Company’s commercial loan investments portfolio had a total carrying value of $110.9 million and was comprised of six construction loans, five mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right. On July 2, 2025, the current face amount of the Publix Land Development loan of $25.5 million, and the current face amount of the Verizon Turnersville, NJ loan of $2.0 million, were both repaid in full. Total proceeds to the Company were $27.6 million, including accrued interest, and were utilized to pay down the balance on the Company’s Credit Facility.

Current wording

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 September 30, 2025, the Company’s commercial loan investments portfolio had a total carrying value of $102.8 million and was comprised of five construction loans, six mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right.

Previous wording

Revenue from our property operations totaled $12.0 million and $11.3 million during the three months ended June 30, 2025 and 2024, respectively. The $0.7 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 $2.1 million and $1.8 million during the three months ended June 30, 2025 and 2024, respectively. The $0.3 million increase in the direct cost of revenues is reflective of increased reimbursable expenses.

Current wording

Revenue from our property operations totaled $12.1 million and $11.7 million during the three months ended September 30, 2025 and 2024, respectively. The $0.4 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 $1.9 million and $1.8 million during the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Interest income from commercial loans and investments totaled $2.7 million and $1.0 million for the three months ended June 30, 2025 and 2024, respectively. The $1.7 million increase in income is attributable to the expanded portfolio of commercial loans and investments which, as of June 30, 2025, was comprised of six construction loans, five mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right. As of June 30, 2024, the Company’s portfolio of commercial loans and investments was comprised of four construction loans and one mortgage note. On July 2, 2025, the current face amount of the Publix Land Development loan of $25.5 million, and the current face amount of the Verizon Turnersville, NJ loan of $2.0 million, were both repaid in full. Total proceeds to the Company were $27.6 million, including accrued interest, and were utilized to pay down the balance on the Company’s Credit Facility.

Current wording

Interest income from commercial loans and investments totaled $2.3 million and $1.7 million for the three months ended September 30, 2025 and 2024, respectively. The $0.6 million increase in income is attributable to the expanded portfolio of commercial loans and investments which, as of September 30, 2025, was comprised of five 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 September 30, 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.

Previous wording

Other revenue totaled $0.1 million and $0.2 million for the three months ended June 30, 2025 and 2024, 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 $0.1 million decrease is attributable to leasing commissions earned during the three months ended June 30, 2024.

Current wording

Other revenue totaled $0.1 million for the three months ended September 30, 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.

Previous wording

As further described in Note 7, “Provision for Impairment,” during the three months ended June 30, 2025, the Company recorded a $2.8 million impairment charge representing the provision for losses related to certain income properties, for which the Company’s current intent is to dispose of such properties inorder to facilitate the re-investment of the proceeds therefrom into new investment opportunities. During the three months ended June 30, 2024, the Company recorded a $0.6 million impairment charge representing the provision for losses related to our income properties, and a $0.1 million impairment charge which represents the current expected credit losses (“CECL”) reserve related to our commercial loans and investments.

Current wording

As further described in Note 7, “Provision for Impairment,” during the three months ended September 30, 2025, the Company recorded a $1.9 million impairment charge representing the provision for losses related to a certain income property, for which the Company’s current intent is to dispose of such property inorder to facilitate the re-investment of the proceeds therefrom into new investment opportunities, anda $0.1 million adjustment to the provision for impairment representing the reduction incurrent expected credit losses (“CECL”) reserve related to our commercial loans and investments due to the decrease in principal outstanding as compared to June 30, 2025. During the three months ended September 30, 2024, the Company recorded a $0.4 million impairment charge which represents the increase in the CECL reserve related to our commercial loans and investments.

Previous wording

Depreciation and amortization expense totaled $6.7 million and $6.4 million during the three months ended June 30, 2025 and 2024, respectively. The $0.3 million increase in depreciation and amortization expense is reflective of the increase in asset cost basis of the Company’s income property portfolio.

Current wording

Depreciation and amortization expense totaled $6.6 million and $6.3 million during the three months ended September 30, 2025 and 2024, respectively. The $0.3 million increase in depreciation and amortization expense is reflective of the increase in asset cost basis of the Company’s income property portfolio.

Previous wording

Investment and other income was relatively flat and totaled $0.1 million during the six months ended June 30, 2025 and 2024.

Current wording

Investment and other income was relatively flat and totaled $0.1 million during each of the three month periods ended September 30, 2025 and 2024.

Previous wording

Interest expense totaled $4.3 million and $2.8 million during the three months ended June 30, 2025 and 2024, respectively. The $1.5 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 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 the six months ended June 30, 2025.

Current wording

Interest expense totaled $3.9 million and $3.2 million during the three months ended September 30, 2025 and 2024, respectively. The $0.7 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 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 the nine months ended September 30, 2025.

Previous wording

Net loss totaled $1.8 million and net income totaled $0.2 million during the three months ended June 30, 2025 and 2024, respectively. The $2.0 million decrease in net income is attributable to the factors described above, most notably the $2.1 million increase of provision for impairment and the $1.5 million increase in interest expense, partially offset by the increase in interest income from commercial loans and investments of $1.7 million.

Current wording

Net loss totaled $1.4 million and net income totaled $3.4 million during the three months ended September 30, 2025 and 2024, respectively. The $4.8 million decrease in net income is attributable to the factors described above, most notably the $3.5 million decrease of gains on sales of properties, the $1.5 million increase in provision for impairment, as well as the $0.7 million increase in interest expense, which is partially offset by the $1.1 million increase in total revenues.

Previous wording

The following presents the Company’s results of operations for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024 (in thousands):

Current wording

The following presents the Company’s results of operations for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024 (in thousands):

Previous wording

Revenue from our property operations totaled $23.8 million and $22.8 million during the six months ended June 30, 2025 and 2024, respectively. The $1.0 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 $4.1 million and $3.7 million during the six months ended June 30, 2025 and 2024, respectively. The $0.4 million increase in the direct cost of revenues is reflective of increased reimbursable expenses.

Current wording

Revenue from our property operations totaled $36.0 million and $34.5 million during the nine months ended September 30, 2025 and 2024, respectively. The $1.5 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 $6.0 million and $5.6 million during the nine months ended September 30, 2025 and 2024, respectively. The $0.4 million increase in the direct cost of revenues is reflective of increased reimbursable expenses.

Previous wording

Interest income from commercial loans and investments totaled $5.0 million and $1.9 million for the six months ended June 30, 2025 and 2024, respectively. The $3.1 million increase in income is attributable to the expanded portfolio of commercial loans and investments which, as of June 30, 2025, was comprised of six construction loans, five mortgage notes, and three properties acquired pursuant to a sale-leaseback transaction whereby the tenant has a future repurchase right. On July 2, 2025, the current face amount of the Publix Land Development loan of $25.5 million, and the current face amount of the Verizon Turnersville, NJ loan of $2.0 million, were both repaid in full. Total proceeds to the Company were $27.6 million, including accrued interest, and were utilized to pay down the balance on the Company’s Credit Facility. As of June 30, 2024, the Company’s portfolio of commercial loans and investments was comprised of four construction loans and one mortgage note.

Current wording

Interest income from commercial loans and investments totaled $7.4 million and $3.6 million for the nine months ended September 30, 2025 and 2024, respectively. The $3.8 million increase in income is attributable to the expanded portfolio of commercial loans and investments which, as of September 30, 2025, was comprised of five 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 September 30, 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.

Previous wording

Other revenue totaled $0.2 million and $0.3 million for the six months ended June 30, 2025 and 2024, 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 $0.1 million decrease is attributable to leasing commissions earned during the six months ended June 30, 2024.

Current wording

Other revenue totaled $0.3 million and $0.4 million for the nine months ended September 30, 2025 and 2024, 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 $0.1 million decrease is attributable to leasing commissions earned during the nine months ended September 30, 2024.

Previous wording

The following table represents the Company’s general and administrative expenses for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024 (in thousands):

Current wording

The following table represents the Company’s general and administrative expenses for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024 (in thousands):

Previous wording

General and administrative expenses totaled $1.7 million and $1.6 million during the three months ended June 30, 2025 and 2024, respectively. The $0.1 million increase is primarily the result of increases in the management fee due to an increase in the weighted average of the Company’s equity base and director compensation.

Current wording

General and administrative expenses totaled $5.1 million and $5.0 million during the nine months ended September 30, 2025 and 2024, respectively. The $0.1 million increase is primarily the result of increases in the management fee and director compensation, partially offset by a decrease in corporate legal and consulting fees.

Previous wording

As further described in Note 7, “Provision for Impairment”, during the six months ended June 30, 2025, the Company recorded a $4.6 million impairment charge representing the provision for losses related to certain income properties, for which the Company’s current intent is to dispose of such properties inorder to facilitate the re-investment of the proceeds therefrom into new investment opportunities, and a $0.2 million impairment charge which represents the CECL reserve related to our commercial loans and investments. During the six months ended June 30, 2024, the Company recorded a $0.6 million impairment charge representing the provision for losses related to our income properties, and a $0.1 million impairment charge which represents the CECL reserve related to our commercial loans and investments.

Current wording

As further described in Note 7, “Provision for Impairment”, during the nine months ended September 30, 2025, the Company recorded a $6.6 million impairment charge representing the provision for losses related to certain income properties, for which the Company’s current intent is to dispose of such properties inorder to facilitate the re-investment of the proceeds therefrom into new investment opportunities, and a $0.1 million impairment charge which represents the change in our CECL reserve related to our commercial loans and investments. During the nine months ended September 30, 2024, the Company recorded a $0.6 million impairment charge representing the provision for losses related to our income properties, and a $0.5 million impairment charge which represents the change in our CECL reserve related to our commercial loans and investments.

Previous wording

Depreciation and amortization expense totaled $14.0 million and $12.7 million during the six months ended June 30, 2025 and 2024, respectively. The $1.3 million increase in depreciation and amortization expense is reflective of the increase in asset cost basis of the Company’s income property portfolio.

Current wording

Depreciation and amortization expense totaled $20.6 million and $19.1 million during the nine months ended September 30, 2025 and 2024, respectively. The $1.5 million increase in depreciation and amortization expense is reflective of the increase in asset cost basis of the Company’s income property portfolio.

Previous wording

Investment and other income was relatively flat during the three months ended June 30, 2025 and 2024, which totaled less than $0.1 million and $0.1 million, respectively.

Current wording

Investment and other income was relatively flat and totaled $0.2 million during each of the nine month periods ended September 30, 2025 and 2024.

Previous wording

Interest expense totaled $7.9 million and $5.8 million during the six months ended June 30, 2025 and 2024, respectively. The $2.1 million increase in interest expense is attributable to the higher average outstanding balance on the Company’s Credit Facility as well as increase in the fixed interest for the 2027 Term Loan effective in November of 2024, as well as $0.3 million of interest expense resulting from the sale of participation interest in the Company’s $24.0 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 the six months ended June 30, 2025.

Current wording

Interest expense totaled $11.8 million and $8.9 million during the nine months ended September 30, 2025 and 2024, respectively. The $2.9 million increase in interest expense is attributable to the higher average outstanding balance on the Company’s Credit Facility as well as increase in the fixed interest 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 the nine months ended September 30, 2025.

Previous wording

Net loss totaled $3.1 million and $0.1 million during the six months ended June 30, 2025 and 2024, respectively. The $3.0 million increase in net loss is attributable to the factors described above, most notably the $4.1 million increase in provision for impairment and an additional $2.1 million increase in interest expense, partially offset by the $3.1 million increase in interest income from commercial loans and investments.

Current wording

Net loss totaled $4.5 million and net income totaled $3.3 million during the nine months ended September 30, 2025 and 2024, respectively. The $7.8 million decrease in net income is attributable to the factors described above, most notably the $5.6 million increase in provision for impairment, the $2.3 million decrease in gains on sale of properties, and an additional $2.9 million increase in interest expense, partially offset by the $5.2 million increase in total revenues.

Previous wording

Cash totaled $12.1 million as of June 30, 2025, including restricted cash of $7.1 million. See Note 2 “Summary of Significant Accounting Policies” under the heading Restricted Cash for the Company’s disclosure related to its restricted cash balance as of June 30, 2025.

Current wording

Cash totaled $6.6 million as of September 30, 2025, including restricted cash of $5.5 million. See Note 2 “Summary of Significant Accounting Policies” under the heading Restricted Cash for the Company’s disclosure related to its restricted cash balance as of September 30, 2025.

Previous wording

*Long-Term Debt.*As of June 30, 2025, the commitment level under the Credit Facility was $250.0 million and the Company had an outstanding balance of $153.0 million and $48.0 million of available capacity. The Company also had $200.0 million in term loans outstanding as of June 30, 2025. See Note 13, “Long-Term Debt” for the Company’s disclosure related to its long-term debt balance at June 30, 2025.

Current wording

*Long-Term Debt.*As of September 30, 2025, the commitment level under the Credit Facility was $250.0 million, and the Company had an outstanding balance of $158.5 million and $60.2 million of available capacity. The Company also had $200.0 million in term loans outstanding as of September 30, 2025. See Note 13, “Long-Term Debt” for the Company’s disclosure related to its long-term debt balance at September 30, 2025.

Previous wording

*Acquisitions and Dispositions.*As further described in Note 3, “Property Portfolio,” during the six months ended June 30, 2025, the Company acquired three properties for a combined purchase price of $39.7 million, or a cost of $39.9 million including capitalized acquisition costs, and sold eight properties for an aggregate sales price of $28.2 million, generating aggregate gains on sale of $2.1 million.

Current wording

*Acquisitions and Dispositions.*As further described in Note 3, “Property Portfolio,” during the nine months ended September 30, 2025, the Company acquired five properties for an aggregate purchase price of $60.8 million, or a cost of $61.1 million including capitalized acquisition costs, and sold 11 properties for an aggregate sales price of $34.3 million, generating aggregate gains on sale of $2.0 million.

Previous wording

*ATM Program.*The Company was not active under the 2022 ATM Program during the six months ended June 30, 2025.

Current wording

*ATM Program.*The Company was not active under the 2022 ATM Program during the nine months ended September 30, 2025.

Previous wording

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 sale of assets utilizing the reverse like-kind 1031 exchange structure, $90.4 million of availability remaining under the 2022 ATM Program, and $48.0 million of available capacity on the existing $250.0 million Credit Facility.

Current wording

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 sale of assets utilizing the reverse like-kind 1031 exchange structure, $90.4 million of availability remaining under the 2022 ATM Program, and $60.2 million of available capacity on the existing $250.0 million Credit Facility.

Previous wording

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 three properties fora combined purchase price of $39.7 million for the six months ended June 30, 2025.

Current wording

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 five properties foran aggregate purchase price of $60.8 million for the nine months ended September 30, 2025.