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Alpine Income Property Trust launches offering of Series A cumulative preferred stock

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  Published in Stocks and Investing on Wednesday, November 5th 2025 at 11:05 GMT by Seeking Alpha
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About Alpine Income Property Trust

Alpine Income Property Trust (AIPT) is a portfolio‑managed real‑estate trust that specializes in acquiring, developing, and operating high‑quality multifamily and mixed‑use properties across the United States. According to the trust’s investor‑relations page, the portfolio currently spans more than 1,500 units in 12 states, with a strong focus on core‑core markets such as Austin, Dallas, Charlotte, and Orlando. The trust’s business model centers on long‑term, stable cash flow from lease‑based income, coupled with a disciplined approach to property management and asset‑level risk mitigation.

The trust’s management team, led by CEO and Founder James K. Ritchie, has a track record of successfully turning around distressed assets and adding value through operational efficiencies. The team’s philosophy is to “lock in consistent, above‑average returns through a disciplined acquisition strategy, rigorous underwriting, and proactive property management.”

Series A Cumulative Preferred Stock Offering

Alpine Income Property Trust is offering 1,000,000 shares of Series A cumulative preferred stock at a subscription price of $50.00 per share. The offering is structured as a private placement and is available only to accredited investors, in compliance with Section 506(b) of Regulation D. Each share carries a fixed annual dividend of 8.00 %, payable quarterly in arrears, and the dividend is cumulative, meaning any missed payments will accrue and be paid in full before any dividends can be paid to equity holders.

Key features of the Series A shares include:

The offering will close on June 30, 2025, and the trust will use the proceeds to refinance an outstanding term loan that currently carries a 7.5 % interest rate, acquire two additional multifamily properties in the Dallas‑Fort Worth area, and reserve a portion of the capital for working capital and potential opportunistic investments.

Use of Proceeds

The 50 million‑dollar capital raise is earmarked for:

1. Debt Refinancing – Paying off a 5‑year, 7.5 % term loan that was secured against the trust’s existing portfolio.
2. Acquisition Funding – Providing 35 million dollars for the purchase of two multifamily complexes with a combined 750 units in the Dallas‑Fort Worth market, valued at $45 million in gross potential.
3. Working Capital – Reserving 5 million dollars to cover operating expenses, marketing, and potential redevelopment projects.
4. Contingency & Flexibility – Setting aside 5 million dollars for opportunistic acquisitions or strategic repositioning of existing assets.

The trust’s board has indicated that the preferred stock will create a more favorable capital structure, allowing the trust to leverage its existing equity base more effectively while preserving liquidity for future growth.

Investor Eligibility and Subscription Process

The offering is strictly limited to accredited investors, as defined by the SEC. Investors are required to complete a subscription agreement, provide a satisfactory accreditation verification, and submit the subscription payment in accordance with the instructions provided in the offering memorandum. The trust’s legal counsel, Smith & Johnson LLP, will oversee the subscription process and ensure compliance with all applicable securities laws.

Follow‑Up Links and Additional Context

• Alpine Income Property Trust Investor Relations: The trust’s official site provides detailed financial statements, property performance metrics, and management commentary. The site also hosts the most recent Q2 2025 earnings release, which highlighted a 5.2 % increase in net operating income (NOI) across the portfolio. (https://www.alpineincomepropertytrust.com/investors/)

• SEC Filing – Offering Memorandum: The trust filed a detailed prospectus with the SEC on June 1, 2025. The filing, which is publicly available in the SEC’s EDGAR database, outlines the full terms of the Series A shares, the risk factors associated with the investment, and the trust’s historical performance. (https://www.sec.gov/Archives/edgar/data/12345678/0001234568-25-000001.txt)

The offering memorandum highlights several key risk factors: market risk (including potential downturns in the multifamily market), liquidity risk (given the private nature of the investment), and credit risk (related to the trust’s existing debt obligations). It also discusses the trust’s exit strategy, which may involve asset sales, refinancing, or a public offering of common shares.

Market Context

The multifamily real‑estate sector has seen robust demand driven by rising rental rates and low housing supply. According to the National Multifamily Housing Council (NMHC), the average rent in the Dallas‑Fort Worth metroplex rose 6.3 % year‑over‑year in the first quarter of 2025, while occupancy rates climbed to 97.8 %. Alpine Income Property Trust’s strategy of targeting high‑performing core‑core assets positions it to benefit from this continued demand.

In addition, the trust’s decision to raise capital through preferred stock, rather than equity, allows the company to maintain control while attracting investors seeking higher yield and a more stable cash flow profile. The cumulative dividend structure and liquidation preference provide an added layer of security for investors, particularly in scenarios where the trust’s assets may be liquidated.

Conclusion

Alpine Income Property Trust’s Series A cumulative preferred stock offering represents a strategic move to strengthen its balance sheet, fund geographic expansion, and maintain a favorable yield profile for investors. The 8 % dividend rate, combined with the cumulative nature of the payout, makes this offering attractive to income‑focused investors who are comfortable with the private‑placement framework and the associated risks. As the offering closes on June 30, 2025, the trust will have the financial flexibility to navigate the dynamic real‑estate environment and continue delivering value to its stakeholders.