Alpine Income Property Trust Inc (PINE) has disclosed a new risk, in the Debt & Financing category.
Alpine Income Property Trust Inc., in its pursuit of construction loans, is tasked with determining the fair value of the underlying land improvements, a process pivotal for compliance with REIT income tests. The company asserts that the loan value must at least match the peak principal amount for the interest to qualify as REIT income. However, this valuation process is inherently subjective, involving estimated costs of future improvements, which opens the door to potential scrutiny by the IRS. The risk that the IRS might contest Alpine’s fair value estimations poses a significant fiscal challenge for the company.
Overall, Wall Street has a Strong Buy consensus rating on PINE stock based on 3 Buys and 1 Hold.
To learn more about Alpine Income Property Trust Inc’s risk factors, click here.
