Bond Investors Are Fleeing to This Safe-Haven Investment
Alpine Income Property Trust (NYSE: PINE) is a tiny net lease real estate investment trust (REIT) with a still-modest portfolio of properties. Unlike a giant like Realty Income (NYSE: O), which owns over 11,000 properties, Alpine can really dig in and understand the dynamics driving the 128 buildings it owns. Right now, management thinks bond investors, in general, are making some asset allocation shifts that will help Alpine sell more assets than it had originally planned in 2022.
Alpine Income Property Trust and Realty Income are both net lease REITs with a retail focus. A net lease REIT owns single-tenant properties for which the tenants are responsible for most of the asset's operating costs. Over a large enough portfolio, it is a fairly low-risk approach even though any single property is high risk because it contains just one tenant. There's another similarity here, as well, in that Realty Income just spun off its office assets as a stand-alone company and Alpine sold its last remaining office property so it could be 100% retail.
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Source Fool.com
