Thank you. Joining me and participating on the call this morning are John Albright, President and Chief Executive Officer; Philip Mays, Chief Financial Officer; and other members of the executive team who will be available to answer questions during the call.

As a reminder, many of our comments today are considered forward-looking statements under federal securities laws. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we undertake no duty to update these statements.

Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q, and other SEC filings. You can find our SEC reports, earnings release, and most recent investor presentation, which contain reconciliations of the non-GAAP financial measures we use, on our website at www.alpinereit.com.

With that, I will turn the call over to John.

Thank you, Jenna, and good morning, everyone. We're pleased to report another strong quarter.

AFFO per diluted share grew 19.6% over the third quarter of last year, and we invested approximately $41 million at a weighted average initial yield of 8.5%. Our investment activity has accelerated meaningfully this year, including our pending $117.3 million industrial portfolio acquisition, which I'll discuss in a moment.

Our closed and under-contract investments year to date now exceed $300 million, a company record that surpasses our full-year 2025 total of $277 million. As a result of this investment volume, we are raising our full-year 2026 AFFO guidance, which Phil will walk through shortly.

Starting with acquisitions, during the quarter, we closed $39.2 million of property acquisitions at a weighted average initial cash cap rate of 8.5%. Key tenants included a Best Buy in McAllen, Texas; a Lowe's in Fairfax, Virginia; a Dick's Sporting Goods in Asheville, North Carolina, which are all investment-grade rated and among our top-five tenants by ABR.

Year to date, we've closed on $85.8 million of property acquisitions at a weighted average initial cap rate of 8%. We continue to target well-located properties we can buy at low basis and attractive initial yield, and we look to selectively recycle lower-yielding properties into new higher-yielding opportunities.

Subsequent to quarter end, we acquired a Burlington in Chandler, Arizona for $7.9 million, and earlier this month announced an agreement to acquire a 13-property industrial portfolio for $117.3 million or approximately $63 per square foot. The industrial portfolio totals about 1.9 million square feet across 11 states.

It is 100% leased to nine tenants on an absolute triple-net basis with annual rent escalations, a weighted average remaining lease term of 10.2 years, and no expirations before late 2031. While industrial is not a strategic focus, this portfolio stood out for a few reasons.

First, it offers an attractive initial yield. Second, the tenant base is diversified, and tenants have operated at their sites for an average of 40 years and invested significant capital in them.

Third, we believe in-place rents are below market and benefit from annual escalations. We expect to close in the middle of the fourth quarter, subject to customary closing conditions.

The new financing Phil will discuss gives us ample capacity to fund it. At quarter end, our property portfolio consisted of 130 properties totaling 4.8 million square feet across 31 states with 99.6% occupancy and a weighted average lease term of 8.7 years.

Annualized straight-line base rent was $53.9 million. Approximately 68% of ABR comes from credit-rated tenants and 56% from investment-grade rated tenants.

On our commercial loan portfolio, we received early repayment in full on two loans totaling $17.9 million at a weighted average yield of 10.2%. At quarter end, the portfolio consisted of 11 loans with outstanding face amount of $160.1 million and a weighted average coupon, including PIK interest, of 13.4%.

The loan book is near our target of approximately 20% of total undepreciated asset value. It complements our property portfolio and increases the overall yield on our investments.

As a reminder, the timing of fundings and repayments can cause the relative size of the loan portfolio to vary from quarter to quarter. With that, I'll turn the call over to Phil.

Thanks, John. Starting with our results, third-quarter total revenue was $20.5 million, including lease income of $12.8 million and interest income from commercial loan investments of $7.6 million.

FFO and AFFO were both 55 cents per diluted share, up approximately 20% from the third quarter of last year. As a reminder, second-quarter results included approximately 2 cents per diluted share of nonrecurring termination fee income.

This quarter did not include any one-time or nonrecurring income. For the nine months ended September 30th, total revenue was $58.9 million, including lease income of $38.1 million and interest income from commercial loan investments of $20.7 million.

FFO and AFFO were $1.65 and $1.66 per diluted share, both up approximately 23% from the same period last year. Turning to the balance sheet, during the quarter, we raised $8.2 million of net proceeds through our common and preferred ATM programs.

Year to date, we have now raised approximately $70 million of net proceeds across both programs. We ended the quarter with net debt to pro forma adjusted EBITDA of 6.5 times.

While this is consistent with last quarter, it is more than a full turn lower than the 7.7 times we reported a year ago. As of quarter end, we had $398.5 million of debt outstanding at a weighted average interest rate of 4.48% and no debt maturing until 2029.

As previously disclosed, we have $100 million of SOFR swaps at 2.05% that mature in January 2027 and will be replaced with swaps fixing SOFR at 3.54%. Notably, subsequent to quarter end, we received bank commitments for a new $100 million four-year term loan and a $75 million increase to our revolving credit facility.

We expect this financing to close in late October and will use the term loan proceeds to reduce borrowings outstanding on our revolving credit facility. In total, this financing adds $175 million of potential liquidity.

Now turning to guidance, as John said, our investment volume has led us to raise guidance. For full-year 2026, we are raising our FFO outlook to $2.19 to $2.21 per diluted share, up from $2.10 to $2.13.

We are raising our AFFO outlook to $2.20 to $2.22 per diluted share, up from $2.12 to $2.15. At the midpoint, this represents approximately 17% AFFO per share growth over 2025.

Our new guidance ranges reflect our increased investment volume assumption of $310 million to $350 million. Further, they reflect the expected timing of investments, dispositions, and financing activity, as well as this quarter's $17.9 million of early loan repayments John discussed and a $7.4 million loan with a 10.25% yield maturing in the fourth quarter.

Finally, based on equity issued this quarter, our quarterly base management fee run rate is now approximately $1.5 million. With that, operator, please open the call to questions.

Hey, thanks, good morning. I was wondering if you could just give any further details on the industrial portfolio you announced to acquire and if there's anything further along what the yield was on it and more specifically just in terms of how you anticipate financing it, and if there's any maybe guidelines around what you think pro forma leverage might be.

Hey, Jay, it's John. Thanks for the question, and I'll let Phil talk about the financing aspects of it.

Because it's under contract and we haven't closed yet, we'll probably save more details for until after it closes. Obviously, we've given a fair amount of detail in our investor deck on it without having it been closed.

We love the portfolio because it is higher-yielding. It has a nice WALT of over 10 years.

It has annual escalations. It's dispersed in 13 properties, nine tenants, and incredibly low rental rate in per square foot.

It fits all the boxes of the things that we like to buy where there's good yield and limited downside and nice upside. Phil, you want to talk about the financing side?

Hey, Jay. Next week we should close on our new financing that's disclosed in the earnings release, a new term loan, a four-year term loan for $100 million for which the proceeds will be used to pay down the line.

Then we're actually growing the line and hitting the accordion there to increase the line $75 million. We'll initially take it down on the line.

On debt to EBITDA, if you just want to look at that solely by itself, we go from mid-6s to low 7s, probably 7.3-ish. We still have some room in our dispo guidance and all to kick it back down later.

Appreciate that. That's helpful.

Then maybe just more broadly, the industrial portfolio acquisition, it brings some incremental diversity to the otherwise largely retail portfolio. Just wondering how you're thinking about what the ideal makeup of your portfolio is going forward.

Are you targeting more industrial or other asset classes or was this transaction really just more of a one-off?

For right now, it's basically a one-off, but we had mentioned in our previous earnings calls that we were open to other sectors, and so finding that great risk-adjusted yield in sectors. As we already have an industrial property in our portfolio before this acquisition.

Don't see anything else sort of in the window kind of like what we're looking at, but we're open to it. All right, I'll hold it there.

Thank you.

Hey, good morning, guys, and thanks for taking the question. I'd like to touch on the loan portfolio a little bit and kind of the plans with that capital as it does start to run off.

You look to keep that portfolio at or near 20% or should we expect to see some of that capital kind of redeployed into properties? Then on top of that, I guess towards the end of the quarter shares started trading down, which could present a attractive repurchase opportunities.

How do you guys kind of balance the three of those?

Thanks. On the loan book, it's not a hard set as far as an amount that we'll have out there, there could be a situation where the loan book pays down, pays off, and we don't replace it to the amount it is now.

I will say in this environment, we are seeing interesting opportunities to replace the loans that we have. Nothing right now, but certainly this is a good environment where to get really terrific sponsors, terrific assets, great locations, great basis.

I would expect that there'll be more opportunities, but it could be a situation where it does pay down. Anyway, that's kind of where we are with the loan book.

Got it. Appreciate that.

Then looking at dispositions, are there any credits that you guys may look to move on to or on from in, call it, '27 as we continue to go forward?

We're constantly, as pruning the portfolio. Of course, we have some Walgreens left, but their credit gets better and we're just kind of cash-flowing those out until find that 1031 buyer.

We have an At Home, as but the At Home is in Charlotte in a terrific location. We had another user that wanted to buy it and At Home didn't want to leave.

The locations that we have are really strong. We have one Sportsman's Warehouse where we have someone that wants to buy that.

The Party City in Long Island, we're far along on a lease to replace that. We're always pruning, but nothing that

Got it. Thank you, guys.

One moment for our next question.

Thanks. Good morning, guys.

John, maybe you could just give some comments on what you're seeing in terms of maybe a shift in cap rates or if you're seeing the market move at all just given the higher interest rate environment?

Sure. Clearly, we're saving our capital for really good opportunities where we are getting that higher yield potential.

We're going to be targeting sort of that eight cap plus or minus. I would say that people are out in the market right now selling something, that means they want to clear the decks.

You probably have in this environment people that are going to sell, going to transact, no matter what, versus a market where they're seeing better pricing and they're taking something out to market. This is a time that gets us excited, hopefully we'll have some good hunting here.

Thanks for that. Phil, just given the new debts or the new financings, and then the swap burn-offs, is there any way to quantify what the potential impact is next year as we think about the higher rates and the swap burn-off?

There's

two swaps, RJ, that expire both in January. One is for $100 million at, call it, and I talked about it in my prepared remarks, at around 200 basis points.

We have a forward swap in place that will replace it that is below market, but higher than the 200 that that swap was at. That $100 million will roll up about 150 basis points.

Then the only other swap we have burning off is $50 million, and it also matures in January. We do not have a forward to replace it, but it's closer to market.

It's maybe 50 bips below market. It's smaller, it's $50 million, and it's closer to market, so that one will have a little sting, but not as much.

Those are the two biggest moving parts on our rates for next year.

Great. Thanks, guys.

Thank you. One moment for our next question.

Good morning. Thanks for taking my question.

Just obviously big big industrial portfolio and yet the implied fourth-quarter guidance is sort of similar to the third quarter AFFO per share. Can you kind of bridge the moving pieces from the third quarter to the fourth quarter and then is that a 55 cent the right runway to think about just kind of going forward, I guess building off of that last question?

Hey, Michael, it's Phil. In the quarter, as John noted, we had a couple of loans that paid off.

Then in the fourth quarter, if you look at our loan schedule, there's one for $7 million, $8 million that's also scheduled to pay off. In addition to that, we do have the rate that adjusts down on the large residential loan.

The 55 cents in the third quarter, if you kind of adjust for all that, just the loan activity, it probably falls back to, call it, 53 or so. Then with the acquisitions we announced, in particular the industrial portfolio, that will kind of replace it.

Looks like in the middle of our guidance the run rate's kind of consistent with the third quarter, but there's really moving parts there, a little less loan, and then industrial acquisitions bringing it back to 55. Look, it could be higher or lower.

It'll just be depend on timing of when the acquisitions close versus any dispositions.

Got it. Thanks for that.

Then leverage ticking up here, over the last year you worked to take it down, I guess just what's the plan to work the leverage down from here and just how are you thinking about that in this current environment?

I'll take the first part of it, and Phil can kind of follow on. Look, we have some dispo plans, and even the industrial portfolio, there might be some properties we want to spin out on that one.

It's really, I would say, asset sales. Obviously if the capital markets are there, there may be some help there.

We have a fair amount of properties with lower cap rate sort of attributes, so that's sort of the plan.

As as John said, dispos will be the biggest mover there, but also just we do have some annual bumps in the portfolio where NOI will grow, and recycling, not just straight dispos, could also help earnings grow in addition to dispositions. We've got a few phase to incrementally move leverage down.

Got it. Thanks so much.

Good luck in the fourth quarter.

Thank you. One moment for our next question.

Thank you. Good morning.

I wanted to ask you on the financing for industrial portfolio. I don't know if I missed it, but can you provide the cost of financing of the term loan?

How much was the rate on the term loan?

The new term loan has not closed yet. There's a swap in it.

The rate will be a little higher than the other two term loans, but it'll generally be fairly consistent with it.

Then

our variable-rate debt now's, call it 5%, a little higher, depending on where SOFR sets.

Okay. Second question on the commercial loan portfolio.

What's the timing of $75 million unfunded commitments in the portfolio?

It's spread out over a couple of years. That's just the unfunded piece.

Keep in mind that over those two years, there'll also be some loans maturing. The net funding will not be $75 million.

It'll be something less net of the loans maturing. You can see the schedule.

You can see the maturity dates on there. We have $8 million paying down in the fourth quarter alone.

Repayments will help fund some of the draws actually going out so that we never have to really come out of pocket the 75 at any moment in time. Those draws are spread out over two years and can be at least partially handled with just loans maturing.

All right. Thank you.

That's all I had. One moment for our next question.

Hi, thank you for taking my question. On the swaps, for the $50 million and the $100 million, are you assuming to swap that in the fourth quarter or will that drag into the first quarter?

For the new $100 million four-year term loan, it's already swapped. We have a forward on it,

and so

that rate will be, call it, 4.75-ish on that. We don't really have to do that We already had a forward that we can just move over to that swap.

There's no new swap to fix it. It'll be fixed at closing.

It doesn't go all the way out to the full term of it, we will at some point look to do the tail later, but it'll be 4.75-ish at close.

No, that's helpful. You talked in your prepared remarks about the loan maturing and as well as the rate being lowered on that residential construction loan.

Do you have any visibility in any of your lenders potentially doing any early prepayments or payoffs in the loan book?

There's some, but not material amount.

Got it. Thank you.

That's it for me.

Sure. One moment for our next question.

Good morning, everyone. I know you're not providing kind of '27 guidance at this point, but how are you thinking about kind of investment volume in the first half of next year just given taking down kind of a sizable transaction here at the end of the year?

I know it's some offsets to it, but you do have some of these loan commitments outstanding. Is it kind of fair, some of your peers have kind of also indicated this, that you might slow transaction volume at the start of next year just as this capital market situation kind of shakes out or is that kind of being too much into things,

I guess? Since we're basically doing amount of investment volume this year equal to our market cap, you can probably figure should be less next year.

I don't know how many years we can kind of keep on doing our market cap investment. Look, it is too early, but for sure, if we find opportunities that really fit, we're going to find the capital.

It could be a partner, if that's easy. If the capital markets aren't kind to our stock and our securities, then we'll find external capital.

There's incredible amount of that right now in the net lease space, as you guys probably follow it better than we do that mammoth private equity groups have or are starting net lease groups. There's no shortage of capital.

We look forward to kind of finding those opportunities and that's our job is to find the right capital for it.

Okay. Maybe circling back to the industrial acquisition, I know you haven't closed it yet, maybe you're kind of reticent to provide too many details.

When did this kind of come across your desk? As we kind of get more color on pricing, is this kind of pricing in the new interest rate environment or was this something that kind of was still attractive, but maybe kind of sourced prior to the kind of 10-year moving up significantly here in August and September this year?

The portfolio sort of happened, not a long drawn-out process. It had been fully marketed, but is one where the pricing is somewhat reflecting this new environment of higher interest rates.

We feel very comfortable with where the cap rate is relative to where the 10-year is.

Good. That's it for me.

Thank you very much. One moment for our next question.

Hey, good morning. John, it's obviously a pretty tough housing environment given interest rates.

Can you give us an update on how the projects underlying residential land loans are performing? How are you feeling about exposure to residential land loans right now?

We feel very very good with the ones that were in, because they're second-home, third-home, fourth-home sort of communities. Actually, believe it or not, the fall market is the strongest market.

I think what you're seeing on high net worth sort of folks is that owning sort of sticks and bricks isn't a bad thing to have. We're not worried about kind of where our position in these.

It's not like a first-time home buyers or move-ups. This is sort of like a lot of discretionary capital.

Got it. Not very interest sensitive, more of a cash pay is what you're saying?

Exactly.

That's it for me. Thank you.