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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 14, 2025

 

 

FrontView REIT, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

001-42301

93-2133671

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

3131 McKinney Avenue

Suite L10

 

Dallas, Texas

 

75204

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 214 796-2445

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock $0.01 par value per share

 

FVR

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 


Item 2.02 Results of Operations and Financial Condition.

On May 14, 2025, FrontView REIT, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The press release is also available on the Company’s website.

 

Item 7.01 – Regulation FD Disclosure

On May 14, 2025, the Company made available on its website an updated presentation containing quarterly supplemental information pertaining to its operations and financial results for the quarter ended March 31, 2025. A copy of the quarterly supplemental information is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

 

The information contained in Item 2.02 and 7.01 hereof, including the information contained in Exhibit 99.1 and quarterly supplemental information attached as Exhibit 99.2, are being “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. References to the Company’s website in this Current Report on Form 8-K and in the attached Exhibit 99.1 and Exhibit 99.2 do not incorporate by reference the information on such website into this Current Report on Form 8-K and the Company disclaims any such incorporation by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

 

INDEX TO EXHIBITS

Exhibit No.

Description

99.1

Press Release Dated May 14, 2025

99.2

Quarterly Supplemental Information for the Quarter Ended March 31, 2025

104

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

FrontView REIT, Inc.

 

 

 

 

Date:

May 14, 2025

By:

/s/ Randall Starr

 

 

 

Randall Starr
Co-Chief Executive Officer, Co-President and Chief Financial Officer

 

 


EX-99.1 2 fvr-ex99_1.htm EX-99.1 - PRESS RELEASE EX-99.1

 

 

EXHIBIT 99.1

 

For Immediate Release

May 14, 2025

 

img107716227_0.jpg

 

FrontView REIT Announces First Quarter 2025 Results and Updates Full Year 2025 Guidance

 

Dallas, TX – FrontView REIT, Inc. (NYSE: FVR) (the “Company”, “FrontView”, “we”, “our”, or “us”), today announced its operating results for the quarter ended March 31, 2025 and updated full year 2025 guidance for the Company.

MANAGEMENT COMMENTARY

Stephen Preston, Co-CEO and Chairman, commented, “We are pleased to report a very successful first quarter of 2025 from not only an acquisition standpoint, but also from an operational standpoint. We continue to demonstrate our ability to drive growth through accretive acquisitions; we acquired approximately $49.2 million of high-quality assets with frontage at a 7.9% average cash cap rate during the first quarter. Further, we continue to see significant opportunity in our marketplace to acquire assets at below market pricing as we continue to acquire outside the institutional landscape. Operationally, we generated AFFO of $0.30 due to certain operating efficiencies and strong rent collections for leased properties of 99.5%. As previously reported, based upon our asset management efforts to date on the recent vacant 12 properties, subject to customary due diligence and closing conditions, we expect the equivalent return of between approximately 3% and 4% of the approximately 4% year end ABR previously lost and expect this equivalent replacement income to come back online in Q4 2025 or in early 2026. Finally, subsequent to the quarter end, we announced the appointment of Randall Starr to serve as our Chief Financial Officer, in addition to continuing to serve as our Co-Chief Executive Officer and Co-President. We could not be more pleased with this outcome and look forward to continuing to work closely with Randy as we build this company.”

FIRST QUARTER 2025 HIGHLIGHTS

INVESTMENT ACTIVITY

During the first quarter, we acquired 17 new properties for $49.2 million at a weighted average cash capitalization rate of 7.9% and a weighted average lease term of 12 years. The acquisitions were spread across 9 industries, 13 tenants, and 13 states, including 8 new tenants and 2 new states.
As of the date of this release, and subsequent to March 31, 2025, we have closed on 1 additional property for an additional $3.6 million at a weighted average initial cash capitalization rate of 8.1% and a weighted average lease term of 7 years. We also have 5 properties under contract for an additional $15.7 million at a weighted average initial cash capitalization rate of 8.0% and a weighted average lease term of 8 years. The properties are diversified across 5 industries, 6 tenants, and 4 states, with investment grade tenants representing approximately 20% of the annualized base rent (“ABR”).
During the first quarter, we sold 1 property for gross proceeds of $2.1 million at a 6.9% cash capitalization rate.

 

OPERATING

RESULTS

Generated net loss of $1.3 million, or $0.06 per share.
Generated adjusted funds from operations (“AFFO”) of $8.2 million, or $0.30 per share.
Incurred $2.8 million of general and administrative expenses, inclusive of $0.6 million of stock-based compensation.
Portfolio was approximately 96.3% leased based on number of properties, with 12 of our 323 properties vacant and not subject to a lease at quarter end.

 

CAPITAL MARKETS ACTIVITY

As of March 31, 2025, we had total outstanding debt of $312.0 million, Net Debt of $308.7 million, and a Net Debt to Annualized Adjusted EBITDAre ratio of 5.7x.
Declared a quarterly dividend of $0.215 per share and OP unit to holders of record as of June 30, 2025, payable on or before July 15, 2025.
On March 3, 2025 we entered into $200.0 million in interest rate swap notional to fix our Term Loan at an all-in rate of 4.96%.

 

1

 


 

SUMMARIZED FINANCIAL RESULTS

 

 

 

Successor

 

 

 

Predecessor(1)

 

 

 

For the three months ended March 31,

 

(unaudited, in thousands, except share and per share amounts )

 

 

2025

 

 

 

2024

 

Revenues

 

 

$

16,243

 

 

 

$

15,259

 

 

 

 

 

 

 

 

 

 

Net loss, including non-controlling interest

 

 

$

(1,337

)

 

 

$

(3,369

)

Net loss per share

 

 

$

(0.06

)

 

 

$

 

 

 

 

 

 

 

 

 

 

FFO

 

 

$

6,429

 

 

 

$

4,159

 

FFO per share

 

 

$

0.23

 

 

 

$

 

 

 

 

 

 

 

 

 

 

AFFO

 

 

$

8,229

 

 

 

$

4,989

 

AFFO per share

 

 

$

0.30

 

 

 

$

 

 

 

 

 

 

 

 

 

 

Diluted Weighted Average Shares Outstanding

 

 

 

27,822,826

 

 

 

 

 

 

(1)

The Company determined that FFO per share and AFFO per share in the Predecessor period would not be meaningful to users of this filing, given the different unitholders in the Predecessor.

 

FFO and AFFO are measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See the Reconciliation of Non-GAAP Measures later in this press release.

REAL ESTATE PORTFOLIO

As of March 31, 2025, we owned a diversified portfolio of 323 individual net leased commercial properties, comprising approximately 2.6 million rentable square feet of operational space. As of March 31, 2025, all but seven of our properties were subject to a lease, and our properties were occupied by 329 different commercial tenants, with no single tenant accounting for more than 3.1% of our annualized base rent (“ABR”). Properties subject to a lease represent 96.3% of the number of properties in our portfolio. The ABR weighted average lease term, pursuant to leases on properties in the portfolio as of March 31, 2025, was 7.4 years.

DISTRIBUTIONSOn May 13, 2025, our board of directors declared a quarterly dividend of $0.215 per common share and OP unit to holders of record as of June 30, 2025, payable on or before July 15, 2025.UPDATED 2025 GUIDANCE

FrontView reaffirms our prior 2025 AFFO guidance within $1.20 to $1.26 per diluted share as summarized by the key assumptions below:

(i)
reducing expected net investments in real estate properties from between $175.0 million and $200.0 million, to $125.0 million and $145.0 million;
(ii)
increasing dispositions of real estate properties from between $5.0 million and $20.0 million, to $20.0 million and $40.0 million;
(iii)
maintaining non-reimbursed property and operating expenses of between $2.0 million and $2.6 million;
(iv)
maintaining a previously disclosed bad debt expense of between 2% and 3% of cash NOI (this figure includes the 7 of the 12 previously disclosed tenants that are allocated to 2025);
(v)
reducing total cash general and administrative expenses from between $8.9 million and $9.5 million, to $8.9 million and $9.3 million.

Our per share results are sensitive to both the timing and amount of real estate investments, property dispositions, and capital markets activities that occur throughout the year.

We do not provide guidance for the most comparable GAAP financial measure, net income, or a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP, because we are unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure, including items that are not indicative of our ongoing operations, including, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses, and stock-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on our GAAP results for the guidance periods.

 

2

 


 

CONFERENCE CALL AND WEBCAST

The Company will host its first quarter earnings conference call and audio webcast on Thursday, May 15, 2025, at 10:00 a.m. Central Time.

To access the live webcast, which will be available in listen-only mode, please visit: https://events.q4inc.com/attendee/619220748. If you prefer to listen via phone, U.S. participants may dial: 1-800-549-8228 (toll free) or 646-564-2877 (local), conference ID 67350.

A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. To listen to a replay of the call via the web, which will be available for one year, please visit: investor.frontviewreit.com.

About FrontView REIT, Inc.

FrontView is an internally-managed net-lease REIT that acquires, owns and manages primarily properties with frontage that are net leased to a diversified group of tenants. FrontView is differentiated by an investment approach focused on properties that are in prominent locations with direct frontage on high-traffic roads that are highly visible to consumers. As of March 31, 2025, FrontView owned a well-diversified portfolio of 323 properties with direct frontage across 37 U.S. states. FrontView focuses on service-oriented tenants, including restaurants, cellular stores, financial institutions, automotive stores and dealers, medical and dental providers, convenience and gas stores, pharmacies, car washes, home improvement stores, grocery stores, fitness operators, professional services as well as general retail tenants.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “outlook,” “potential,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “expect,” “intends,” “anticipates,” “estimates,” “plans,” “would be,” “believes,” “continues,” or the negative version of these words or other comparable words. Forward-looking statements, including our 2025 guidance and assumptions, involve known and unknown risks and uncertainties, which may cause FVR’s actual future results to differ materially from expected results, including, without limitation, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, property investments and acquisitions, and the timing and uncertainty of completing these property investments and acquisitions, and uncertainties regarding future distributions to our stockholders. These and other risks, assumptions, and uncertainties are described in Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which the Company filed with the SEC on March 20, 2025, which you are encouraged to read, and is available on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to, and does not currently intend to, update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.

Notice Regarding Non-GAAP Financial Measures

In addition to our reported results and net earnings per diluted share, which are financial measures presented in accordance with GAAP, this press release contains and may refer to certain non-GAAP financial measures, including Funds from Operations (“FFO”), AFFO, Net Debt and Net Debt to Annualized Adjusted EBITDAre. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure, and should be considered in addition to, and not in lieu of, GAAP financial measures. We believe presenting Net Debt to Annualized Adjusted EBITDAre is useful to investors because it provides information about gross debt less cash and cash equivalents, which could be used to repay debt, compared to our performance as measured using Annualized Adjusted EBITDAre. You should not consider our Annualized Adjusted EBITDAre as an alternative to net income or cash flows from operating activities determined in accordance with GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measure and statements of why management believes these measures are useful to investors are included below.

 

Company Contact

 

media@frontviewreit.com

3

 


 

FRONTVIEW REIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)

 

 

 

Successor

 

 

Predecessor

 

 

 

March 31,
2025

 

 

December 31,
2024

 

ASSETS

 

 

 

 

 

 

Real estate held for investment, at cost

 

 

 

 

 

 

Land

 

$

341,353

 

 

$

332,944

 

Buildings and improvements

 

 

412,869

 

 

 

386,462

 

Total real estate held for investment, at cost

 

 

754,222

 

 

 

719,406

 

Less accumulated depreciation

 

 

(43,659

)

 

 

(40,398

)

Real estate held for investment, net

 

 

710,563

 

 

 

679,008

 

Assets held for sale

 

 

13,950

 

 

 

5,898

 

Cash and cash equivalents

 

 

3,309

 

 

 

5,094

 

Intangible lease assets, net

 

 

115,583

 

 

 

114,868

 

Other assets

 

 

17,430

 

 

 

16,941

 

Total assets

 

$

860,835

 

 

$

821,809

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Debt, net

 

$

310,214

 

 

$

266,538

 

Intangible lease liabilities, net

 

 

16,053

 

 

 

14,735

 

Accounts payable and accrued liabilities

 

 

18,977

 

 

 

17,858

 

Total liabilities

 

 

345,244

 

 

 

299,131

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

FrontView REIT, Inc. equity

 

 

 

 

 

 

Common Stock, $0.01 par value 450,000,000 shares authorized, 17,519,863 shares
   issued and outstanding as of March 31, 2025

 

 

175

 

 

 

173

 

Additional paid-in capital

 

 

336,035

 

 

 

331,482

 

Accumulated deficit

 

 

(11,434

)

 

 

(6,834

)

Accumulated other comprehensive loss

 

 

(112

)

 

 

 

Total FrontView REIT, Inc. equity

 

 

324,664

 

 

 

324,821

 

Non-controlling interests

 

 

190,927

 

 

 

197,857

 

Total equity

 

 

515,591

 

 

 

522,678

 

Total liabilities and equity

 

$

860,835

 

 

$

821,809

 

 

 

4

 


 

FRONTVIEW REIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except share and per share amounts)

 

 

Successor

 

 

Predecessor (1)

 

 

 

For the three months ended March 31,

 

 

 

2025

 

 

2024

 

 

Revenues

 

 

 

 

 

 

Rental revenues

$

16,243

 

 

$

15,259

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

Depreciation and amortization

 

7,805

 

 

 

7,325

 

 

Property operating expenses

 

2,376

 

 

 

1,981

 

 

Property management fees

 

 

 

 

510

 

 

Asset management fees

 

 

 

 

1,034

 

 

General and administrative expenses

 

2,839

 

 

 

718

 

 

Total operating expenses

 

13,020

 

 

 

11,568

 

 

 

 

 

 

 

 

 

Other expenses (income)

 

 

 

 

 

 

Interest expense

 

4,497

 

 

 

6,695

 

 

Gain on sale of real estate

 

(467

)

 

 

(388

)

 

Impairment loss

 

428

 

 

 

591

 

 

Income taxes

 

102

 

 

 

162

 

 

Total other expenses

 

4,560

 

 

 

7,060

 

 

Net loss

 

(1,337

)

 

 

(3,369

)

 

Less: Net loss attributable to convertible non-
   controlling preferred interests

 

 

 

 

917

 

 

Less: Net loss attributable to non-controlling interests

 

504

 

 

 

 

 

Net loss attributable to NADG NNN Property Fund LP (Predecessor) and to FrontView REIT, Inc. (Successor)

$

(833

)

 

$

(2,452

)

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

Basic

 

17,319,742

 

 

 

 

 

Diluted

 

27,822,826

 

 

 

 

 

Net loss per share attributable to common stockholders

 

 

 

 

 

 

Basic

$

(0.06

)

 

$

 

 

Diluted

$

(0.06

)

 

$

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

 

 

 

 

 

Net loss

$

(1,337

)

 

$

(3,369

)

 

Other comprehensive loss

 

 

 

 

 

 

Change in fair value of interest rate swaps

 

(179

)

 

 

 

 

Comprehensive loss

 

(1,516

)

 

 

(3,369

)

 

Less: Comprehensive loss attributable to convertible non-
   controlling preferred interests

 

 

 

 

917

 

 

Less: Comprehensive loss attributable to non-controlling interests

 

571

 

 

 

 

 

Comprehensive loss attributable to NADG NNN Property Fund LP (Predecessor) and to FrontView REIT, Inc. (Successor)

$

(945

)

 

$

(2,452

)

 

 

(1)
The Company determined that earnings per unit in the Predecessor period would not be meaningful to users of this filing, given the different unitholders in the Predecessor.

 

5

 


 

Reconciliation of Non-GAAP Measures

The following is a reconciliation of net income to FFO and AFFO for the following periods:

 

 

Successor

 

 

Predecessor

 

 

 

For the three months ended March 31,

 

(unaudited, in thousands)

 

2025

 

 

2024

 

Net loss

 

$

(1,337

)

 

$

(3,369

)

Depreciation on real property and amortization of real estate intangibles

 

 

7,805

 

 

 

7,325

 

Gain on sale of real estate

 

 

(467

)

 

 

(388

)

Impairment loss on real estate held for investment

 

 

428

 

 

 

591

 

FFO

 

$

6,429

 

 

$

4,159

 

Straight-line rent adjustments

 

 

(122

)

 

 

(331

)

Amortization of financing transaction and discount costs

 

 

395

 

 

 

1,056

 

Amortization of above/below market lease intangibles

 

 

711

 

 

 

439

 

Stock-based compensation

 

 

615

 

 

 

 

Lease termination fees

 

 

 

 

 

(414

)

Adjustment for structuring and public company readiness costs

 

 

201

 

 

 

51

 

Other non-recurring expenses

 

 

 

 

 

29

 

AFFO

 

$

8,229

 

 

$

4,989

 

 

Our reported results and net earnings per diluted share are presented in accordance with GAAP. We also disclose FFO and AFFO, each of which are non-GAAP measures. We believe these non-GAAP financial measures are industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure, and should be considered in addition to, and not in lieu of, GAAP financial measures.

We compute FFO in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain previously depreciated real estate assets. FFO is used by management, investors, and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers, primarily because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. To derive AFFO, we modify the Nareit computation of FFO to include other adjustments to GAAP net income related to certain non-cash or non-recurring revenues and expenses, including straight-line rents, cost of debt extinguishments, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, (gain) loss on interest rate swaps and other non-cash interest expense, realized gains or losses on foreign currency transactions, Internalization expenses, structuring and public company readiness costs, extraordinary items, and other specified non-cash items. We believe that such items are not a result of normal operations and thus we believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors. We use AFFO as a measure of our performance when we formulate corporate goals. We believe that AFFO is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by one-time cash and non-cash revenues or expenses.

Our leases typically include cash rents that increase through lease escalations over the term of the lease. Our leases do not typically include significant front-loading or back-loading of payments, or significant rent-free periods. Therefore, we find it useful to evaluate rent on a contractual basis as it allows for comparison of existing rental rates to market rental rates. We further exclude costs or gains recorded on the extinguishment of debt, non-cash interest expense and gains, the amortization of debt issuance costs, net mortgage premiums, and lease intangibles, realized gains and losses on foreign currency transactions, Internalization expenses, and structuring and public company readiness costs, as these items are not indicative of ongoing operational results.

FFO and AFFO may not be comparable to similarly titled measures employed by other REITs, and comparisons of our FFO and AFFO with the same or similar measures disclosed by other REITs may not be meaningful.

Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments to FFO that we use to calculate AFFO. In the future, the SEC, Nareit or another regulatory body may decide to standardize the allowable adjustments across the REIT industry and in response to such standardization we may have to adjust our calculation and characterization of AFFO accordingly.

The following is a reconciliation of net income to EBITDA, EBITDAre, and Adjusted EBITDAre, debt to Net Debt and Net Debt to Annualized Adjusted EBITDAre as of and for the three months ended March 31, 2025, and 2024:

6

 


 

 

 

Successor

 

 

Predecessor

 

 

 

For the three months ended March 31,

 

(unaudited, in thousands)

 

2025

 

 

2024

 

Net loss

 

$

(1,337

)

 

$

(3,369

)

Depreciation and amortization

 

 

8,516

 

 

 

7,764

 

Interest expense

 

 

4,497

 

 

 

6,695

 

Income taxes

 

 

102

 

 

 

162

 

EBITDA

 

$

11,778

 

 

$

11,252

 

Gain on sale of real estate

 

 

(467

)

 

 

(388

)

Impairment loss on real estate held for investment

 

 

428

 

 

 

591

 

EBITDAre

 

$

11,739

 

 

$

11,455

 

Adjustment for current period investment activity (1)

 

 

509

 

 

 

 

Adjustment for current period disposition activity (2)

 

 

 

 

 

(392

)

Adjustment for non-cash compensation expense (3)

 

 

615

 

 

 

 

Adjustment to exclude non-recurring expenses (income) (4)

 

 

201

 

 

 

(363

)

Adjustment to exclude net write-offs of accrued rental income

 

 

394

 

 

 

 

Adjusted EBITDAre

 

 

13,458

 

 

 

10,700

 

Annualized EBITDAre

 

 

46,956

 

 

 

45,820

 

Annualized adjusted EBITDAre

 

$

53,832

 

 

$

42,800

 

 

(1)

Reflects an adjustment to give effect to all acquisitions during the period as if they had been acquired as of the beginning of the period.

(2)

Reflects an adjustment to give effect to all dispositions during the period as if they had been sold as of the beginning of the period.

(3)

Reflects an adjustment to exclude non-cash stock-based compensation expense.

(4)

Reflects an adjustment to exclude non-recurring expenses including IPO costs, lease termination fees and non-recurring income or expenses.

 

 

 

Successor

 

 

Predecessor

 

 

 

 

As of March 31,

 

 

(unaudited, in thousands)

 

2025

 

 

2024

 

 

Debt

 

 

 

 

 

 

 

Term Loan

 

$

200,000

 

 

$

 

 

Revolving Credit Facility

 

 

112,000

 

 

 

 

 

ABS Notes

 

 

 

 

 

254,159

 

 

CIBC Revolving Credit Facility

 

 

 

 

 

159,890

 

 

CIBC Term Loan

 

 

 

 

 

17,000

 

 

Gross Debt

 

 

312,000

 

 

 

431,049

 

 

Cash and cash equivalents

 

 

(3,309

)

 

 

(13,197

)

 

Net Debt

 

$

308,691

 

 

$

417,852

 

 

Leverage Ratios:

 

 

 

 

 

 

 

Net Debt to Annualized EBITDAre

 

 

6.6

 

 

 

9.1

 

 

Net Debt to Annualized Adjusted EBITDAre

 

 

5.7

 

 

 

9.8

 

 

 

Net Debt is a non-GAAP financial measure. We define Net Debt as our Gross Debt less cash and cash equivalents. The ratios of Net Debt to EBITDAre and Net Debt to Annualized Adjusted EBITDAre represent Net Debt as of the end of the applicable period divided by EBITDAre or Annualized Adjusted EBITDAre for the period, respectively. We believe that these ratios are useful to investors and analysts because they provide information about Gross Debt less cash and cash equivalents, which could be useful to repay debt, compared to our performance as measured using EBITDAre and Annualized Adjusted EBITDAre.

 

We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our leverage that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. In 2017, Nareit issued a white paper recommending that companies that report EBITDA also report EBITDAre in financial reports. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA (as defined above) excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs.

 

7

 


 

EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

We compute adjusted EBITDAre as EBITDAre for the applicable quarter, as adjusted to (i) reflect all investment and disposition activity that took place during the applicable quarter as if each transaction had been completed on the first day of the quarter, (ii) exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, (iii) eliminate the impact of lease termination fees from certain of our tenants, and (iv) exclude non-cash stock-based compensation expense.

Annualized adjusted EBITDAre is calculated by multiplying adjusted EBITDAre for the applicable quarter by four, which we believe provides a meaningful estimate of our current run rate for all of our investments as of the end of the most recently completed quarter given the contractual nature of our long term net leases. You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our annualized adjusted EBITDAre. Our actual reported EBITDAre for future periods may be significantly different from our Annualized Adjusted EBITDAre.

Adjusted EBITDAre and Annualized Adjusted EBITDAre are not measurements of performance under GAAP, and our Adjusted EBITDAre and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our Adjusted EBITDAre and Annualized Adjusted EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

 

 

8

 


EX-99.2 3 fvr-ex99_2.htm EX-99.2 - QUARTERLY SUPPLEMENTAL INFORMATION EX-99.2

 

EXHIBIT 99.2

 

 

img108639748_0.jpg

 

 

img108639748_1.jpg

 

 

 

Q1 2025 QUARTERLY SUPPLEMENTAL INFORMATION

 

FrontView REIT, Inc. (NYSE: FVR) is an internally-managed net-lease REIT that acquires, owns and manages primarily properties with frontage that are net leased to a diversified group of tenants.

 

investor.frontviewreit.com

 

 


 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

2

 


 

About the Data

This data and other information described herein are as of and for the three months ended March 31, 2025, unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with FrontView’s Quarterly Report on Form 10-Q as of and for the period ended March 31, 2025, including the financial statements and the management’s discussion and analysis of financial condition and results of operations sections.

Forward Looking Statements

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “would be,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, and property acquisitions and the timing of these investments and acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov.

You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

IP Disclaimer

This document contains references to copyrights, trademarks, trade names, and service marks that belong to other companies. FrontView REIT, Inc. is not affiliated or associated with, and is not endorsed by and does not endorse, such companies or their products or services.

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

3

 


 

Company Overview

FrontView REIT, Inc. (NYSE:FVR) (the “Company”, “FrontView”, “FVR”, “us”, “our”, and “we”) is an internally-managed net-lease REIT that acquires, owns and manages primarily properties with frontage that are net leased to a diversified group of tenants. The Company is differentiated by an investment approach focused on properties that are in prominent locations with direct frontage on high-traffic roads that are highly visible to consumers. As of March 31, 2025, the Company owned a well-diversified portfolio of 323 properties with direct frontage across 37 U.S. states. The Company's tenants include service-oriented businesses, such as restaurants, cellular stores, financial institutions, automotive stores and dealers, medical and dental providers, convenience and gas stores, pharmacies, car washes, home improvement stores, grocery stores, fitness operators, professional services as well as general retail tenants.

 

Executive Team

Stephen Preston

Chairman of the Board, Co-Chief Executive Officer and Co-President

Randall Starr

Co-Chief Executive Officer, Co-President, Chief Financial Officer, and Director

Drew Ireland

Chief Operating Officer

 

Board of Directors

Stephen Preston

Chairman of the Board

Randall Starr

Director

Robert Green

Director

Daniel Swanstrom

Independent Director

Elizabeth Frank

Independent Director

Ernesto Perez

Independent Director

Noelle LeVeaux

Independent Director

 

 

 

 

 

 

 

 

Company Contact Information

Rob Shelton

Director, Finance

media@frontviewreit.com

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

4

 


 

Quarterly Financial Summary

(unaudited, in thousands except per share data)

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

 

Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate held for investment, at cost

 

$

754,222

 

 

$

719,406

 

 

$

640,264

 

 

$

640,264

 

 

$

642,398

 

 

Less: accumulated depreciation

 

 

(43,659

)

 

 

(40,398

)

 

 

(37,277

)

 

 

(34,356

)

 

 

(31,471

)

 

Real estate held for investment, net

 

 

710,563

 

 

 

679,008

 

 

 

602,987

 

 

 

605,908

 

 

 

610,927

 

 

Assets held for sale

 

 

13,950

 

 

 

5,898

 

 

 

 

 

 

 

 

953

 

 

Cash and cash equivalents

 

 

3,309

 

 

 

5,094

 

 

 

9,895

 

 

 

16,620

 

 

 

13,197

 

 

Total assets

 

 

860,835

 

 

 

821,809

 

 

 

733,070

 

 

 

745,466

 

 

 

752,708

 

 

Debt, net

 

 

310,214

 

 

 

266,538

 

 

 

418,268

 

 

 

427,435

 

 

 

427,773

 

 

Total liabilities

 

 

345,244

 

 

 

299,131

 

 

 

448,372

 

 

 

455,791

 

 

 

456,902

 

 

Convertible non-controlling preferred interests

 

 

 

 

 

 

 

 

103,724

 

 

 

103,724

 

 

 

103,724

 

 

Partners' capital

 

 

 

 

 

 

 

 

180,974

 

 

 

185,951

 

 

 

192,082

 

 

Total FrontView REIT, Inc. equity

 

 

324,664

 

 

 

324,821

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

190,927

 

 

 

197,857

 

 

 

 

 

 

 

 

 

 

 

Total equity (book value)

 

 

515,591

 

 

 

522,678

 

 

 

284,698

 

 

 

289,675

 

 

 

295,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

16,243

 

 

 

15,514

 

 

 

14,534

 

 

 

14,607

 

 

 

15,259

 

 

General and administrative expenses(1)

 

 

2,839

 

 

 

2,932

 

 

 

2,225

 

 

 

2,171

 

 

 

2,262

 

 

Total operating expenses

 

 

13,020

 

 

 

12,784

 

 

 

11,347

 

 

 

10,853

 

 

 

11,568

 

 

Interest expense

 

 

4,497

 

 

 

3,593

 

 

 

6,463

 

 

 

6,597

 

 

 

6,695

 

 

Net loss

 

 

(1,337

)

 

 

(21,488

)

 

 

(3,339

)

 

 

(3,013

)

 

 

(3,369

)

 

Net loss per common share, diluted

 

$

(0.06

)

 

$

(0.78

)

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

 

6,429

 

 

 

(9,963

)

 

 

3,780

 

 

 

4,010

 

 

 

4,159

 

 

FFO per share, diluted

 

$

0.23

 

 

$

(0.36

)

 

$

 

 

$

 

 

$

 

 

AFFO

 

 

8,229

 

 

 

9,055

 

 

 

4,776

 

 

 

4,892

 

 

 

4,989

 

 

AFFO per share, diluted

 

$

0.30

 

 

$

0.33

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

 

8,101

 

 

 

5,257

 

 

 

7,552

 

 

 

5,130

 

 

 

2,590

 

 

Net cash (used in) provided by investing activities

 

 

(47,285

)

 

 

(105,103

)

 

 

(597

)

 

 

2,876

 

 

 

5,655

 

 

Net cash provided by (used in) financing activities

 

 

37,399

 

 

 

95,045

 

 

 

(13,680

)

 

 

(4,583

)

 

 

(12,177

)

 

Dividend declared

 

 

6,178

 

 

 

6,101

 

 

 

 

 

 

 

 

 

 

 

Dividend declared per diluted share

 

$

0.215

 

 

$

0.215

 

 

$

 

 

$

 

 

$

 

 

 

 

(1)

 For the pre-IPO periods presented, general and administrative expenses includes property management fees, asset management fees, and general and administrative expenses.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

5

 


 

Balance Sheet

(unaudited, in thousands)

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate held for investment, at cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

341,353

 

 

$

332,944

 

 

$

312,143

 

 

$

312,143

 

 

$

313,160

 

Buildings and improvements

 

 

412,869

 

 

 

386,462

 

 

 

328,121

 

 

 

328,121

 

 

 

329,238

 

Total real estate held for investment, at cost

 

 

754,222

 

 

 

719,406

 

 

 

640,264

 

 

 

640,264

 

 

 

642,398

 

Less accumulated depreciation

 

 

(43,659

)

 

 

(40,398

)

 

 

(37,277

)

 

 

(34,356

)

 

 

(31,471

)

Real estate held for investment, net

 

 

710,563

 

 

 

679,008

 

 

 

602,987

 

 

 

605,908

 

 

 

610,927

 

Assets held for sale

 

 

13,950

 

 

 

5,898

 

 

 

 

 

 

 

 

953

 

Cash and cash equivalents

 

 

3,309

 

 

 

5,094

 

 

 

9,895

 

 

 

16,620

 

 

 

13,197

 

Intangible lease assets, net

 

 

115,583

 

 

 

114,868

 

 

 

103,109

 

 

 

108,281

 

 

 

113,357

 

Other assets

 

 

17,430

 

 

 

16,941

 

 

 

17,079

 

 

 

14,657

 

 

 

14,274

 

Total assets

 

$

860,835

 

 

$

821,809

 

 

$

733,070

 

 

$

745,466

 

 

$

752,708

 

LIABILITIES, CONVERTIBLE NON-CONTROLLING PREFERRED
   INTERESTS AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt, net

 

$

310,214

 

 

$

266,538

 

 

$

418,268

 

 

$

427,435

 

 

$

427,773

 

Intangible lease liabilities, net

 

 

16,053

 

 

 

14,735

 

 

 

14,242

 

 

 

14,997

 

 

 

15,745

 

Accounts payable and accrued liabilities

 

 

18,977

 

 

 

17,858

 

 

 

15,862

 

 

 

13,359

 

 

 

13,384

 

Total liabilities

 

 

345,244

 

 

 

299,131

 

 

 

448,372

 

 

 

455,791

 

 

 

456,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible non-controlling preferred interests

 

 

 

 

 

 

 

 

103,724

 

 

 

103,724

 

 

 

103,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners' capital

 

 

 

 

 

 

 

 

180,974

 

 

 

185,951

 

 

 

192,082

 

Common Stock, par value $0.01 per share

 

 

175

 

 

 

173

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

336,035

 

 

 

331,482

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

 

(11,434

)

 

 

(6,834

)

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive loss

 

 

(112

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests in the OP

 

 

190,927

 

 

 

197,857

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

515,591

 

 

 

522,678

 

 

 

180,974

 

 

 

185,951

 

 

 

192,082

 

Total liabilities, convertible non-controlling preferred interests and equity

 

$

860,835

 

 

$

821,809

 

 

$

733,070

 

 

$

745,466

 

 

$

752,708

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

6

 


 

Income Statement Summary

(unaudited, in thousands except share and per share data)

 

For the three months ended

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024(1)

 

 

June 30,
2024(1)

 

 

March 31,
2024(1)

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

$

16,243

 

 

$

15,514

 

 

$

14,534

 

 

$

14,607

 

 

$

15,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

7,805

 

 

 

7,634

 

 

 

7,119

 

 

 

6,972

 

 

 

7,325

 

 

Property operating expenses

 

2,376

 

 

 

2,218

 

 

 

2,003

 

 

 

1,710

 

 

 

1,981

 

 

Property management fees

 

 

 

 

60

 

 

 

494

 

 

 

497

 

 

 

510

 

 

Asset management fees

 

 

 

 

22

 

 

 

1,034

 

 

 

1,034

 

 

 

1,034

 

 

General and administrative expenses

 

2,839

 

 

 

2,850

 

 

 

697

 

 

 

640

 

 

 

718

 

 

Total operating expenses

 

13,020

 

 

 

12,784

 

 

 

11,347

 

 

 

10,853

 

 

 

11,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses (income)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

4,497

 

 

 

3,593

 

 

 

6,463

 

 

 

6,597

 

 

 

6,695

 

 

(Gain) Loss on sale of real estate

 

(467

)

 

 

 

 

 

 

 

 

51

 

 

 

(388

)

 

Impairment loss

 

428

 

 

 

3,891

 

 

 

 

 

 

 

 

 

591

 

 

Income taxes

 

102

 

 

 

236

 

 

 

63

 

 

 

119

 

 

 

162

 

 

Total other expenses

 

4,560

 

 

 

7,720

 

 

 

6,526

 

 

 

6,767

 

 

 

7,060

 

 

Operating loss

 

(1,337

)

 

 

(4,990

)

 

 

(3,339

)

 

 

(3,013

)

 

 

(3,369

)

 

Internalization expense

 

 

 

 

(16,498

)

 

 

 

 

 

 

 

 

 

 

Net loss

 

(1,337

)

 

 

(21,488

)

 

 

(3,339

)

 

 

(3,013

)

 

 

(3,369

)

 

Less: Net loss attributable to
   convertible non-controlling preferred
   interests

 

 

 

 

4,519

 

 

 

908

 

 

 

827

 

 

 

917

 

 

Less: Net loss attributable to non-controlling interests

 

504

 

 

 

1,825

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to NADG NNN Property Fund LP (Predecessor) and to FrontView REIT, Inc. (Successor)

$

(833

)

 

$

(15,144

)

 

$

(2,431

)

 

$

(2,186

)

 

$

(2,452

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

17,319,742

 

 

 

16,258,728

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

27,822,826

 

 

 

27,577,692

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.06

)

 

$

(0.19

)

 

$

 

 

$

 

 

$

 

 

Diluted

$

(0.06

)

 

$

(0.19

)

 

$

 

 

$

 

 

$

 

 

 

(1)
The Company determined that earnings per unit in the Predecessor period would not be meaningful to users of this filing, given the different unitholders in the Predecessor.

 

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7

 


 

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

(unaudited, in thousands except share and per share data)

 

 

For the three months ended

 

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Net loss

 

$

(1,337

)

 

$

(21,488

)

 

$

(3,339

)

 

$

(3,013

)

 

$

(3,369

)

Depreciation on real property and amortization of real estate intangibles

 

 

7,805

 

 

 

7,634

 

 

 

7,119

 

 

 

6,972

 

 

 

7,325

 

(Gain) loss on sale of real estate

 

 

(467

)

 

 

 

 

 

 

 

 

51

 

 

 

(388

)

Impairment loss on real estate held for investment

 

 

428

 

 

 

3,891

 

 

 

 

 

 

 

 

 

591

 

FFO

 

$

6,429

 

 

$

(9,963

)

 

$

3,780

 

 

$

4,010

 

 

$

4,159

 

Straight-line rent adjustments

 

 

(122

)

 

 

(329

)

 

 

(187

)

 

 

(446

)

 

 

(331

)

Amortization of financing transaction and discount costs

 

 

395

 

 

 

1,588

 

 

 

1,053

 

 

 

1,036

 

 

 

1,056

 

Amortization of above/below market lease intangibles

 

 

711

 

 

 

167

 

 

 

423

 

 

 

476

 

 

 

439

 

Stock-based compensation

 

 

615

 

 

 

608

 

 

 

 

 

 

 

 

 

 

Lease termination fees

 

 

 

 

 

(342

)

 

 

(747

)

 

 

(223

)

 

 

(414

)

Adjustment for structuring and public company readiness costs

 

 

201

 

 

 

662

 

 

 

440

 

 

 

23

 

 

 

51

 

Adjustment for Internalization expenses

 

 

 

 

 

16,580

 

 

 

 

 

 

 

 

 

 

Other non-recurring expenses

 

 

 

 

 

84

 

 

 

14

 

 

 

16

 

 

 

29

 

AFFO

 

$

8,229

 

 

$

9,055

 

 

$

4,776

 

 

$

4,892

 

 

$

4,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

 

27,822,826

 

 

 

27,577,692

 

 

 

 

 

 

 

 

 

 

Net loss per diluted share

 

$

(0.06

)

 

$

(0.19

)

 

$

 

 

$

 

 

$

 

FFO per diluted share

 

$

0.23

 

 

$

(0.36

)

 

$

 

 

$

 

 

$

 

AFFO per diluted share

 

$

0.30

 

 

$

0.33

 

 

$

 

 

$

 

 

$

 


 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

8

 


 

Lease Revenues Detail

(unaudited, in thousands)

 

 

For the three months ended

 

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual rental amounts billed

 

$

16,679

 

 

$

14,954

 

 

$

13,971

 

 

$

14,198

 

 

$

14,818

 

Adjustment to recognize contractual rental amounts on a straight-line basis

 

 

122

 

 

 

329

 

 

 

187

 

 

 

446

 

 

 

331

 

Variable rental amounts earned

 

 

55

 

 

 

386

 

 

 

798

 

 

 

306

 

 

 

443

 

Above/below market lease amortization, net

 

 

(711

)

 

 

(167

)

 

 

(423

)

 

 

(476

)

 

 

(439

)

Other income

 

 

98

 

 

 

12

 

 

 

1

 

 

 

133

 

 

 

106

 

Total rental revenues

 

$

16,243

 

 

$

15,514

 

 

$

14,534

 

 

$

14,607

 

 

$

15,259

 

 

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9

 


 

Capital Structure

(in thousands, except percentages)

img108639748_6.jpg

 

 

 

March 31, 2025

 

Equity

 

 

Shares of Common Stock

 

17,520

 

OP Units

 

10,303

 

Common Stock & OP Units

 

27,823

 

Price Per Share / Unit as of closing day of trading

$

12.79

 

Implied Equity Market Capitalization

$

355,856

 

% of Total Capitalization

 

53.3

%

 

 

 

Debt

 

 

Term Loan

$

200,000

 

Revolving Credit Facility

 

112,000

 

Total Debt

$

312,000

 

% of Total Capitalization

 

46.7

%

 

 

 

Total Capitalization

$

667,856

 

Less: Cash and cash equivalents

 

(3,309

)

Enterprise Value

$

664,547

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

10

 


 

Debt Outstanding

(in thousands)

 

 

 

Outstanding Balance

 

 

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

Interest Rate

 

Maturity Date

 Term Loan

 

$

200,000

 

 

$

200,000

 

 

Adjusted SOFR + 1.20% (1, 2)

 

3-Oct-27 (3)

 Revolving Credit Facility

 

 

112,000

 

 

 

68,500

 

 

Adjusted SOFR + 1.20% (1, 2)

 

3-Oct-27 (3)

 Gross Debt

 

$

312,000

 

 

$

268,500

 

 

 

 

 

 

(1)

The approximate one-month SOFR rate at March 31, 2025 was 4.41%%, plus a 10 basis point adjustment "(Adjusted SOFR").

(2)

The approximate one-month SOFR rate at December 31, 2024 was 4.37%, plus a 10 basis point adjustment "(Adjusted SOFR").

(3)

The loans each contain two 12 month extension options, subject to a 0.125% extension fee.

 

Equity Rollforward

 

 

 

Shares of Common Stock

 

 

OP Units

 

 

Total Diluted Shares

 

Balance, January 1, 2025

 

 

17,290,663

 

 

 

10,532,163

 

 

 

27,822,826

 

Conversion of OP unit to Common Stock

 

 

229,200

 

 

 

(229,200

)

 

 

 

Balance, March 31, 2025

 

 

17,519,863

 

 

 

10,302,963

 

 

 

27,822,826

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

11

 


 

EBITDA, EBITDAre, and Other-Non GAAP Operating Metrics

(unaudited, in thousands)

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Net loss

$

(1,337

)

 

$

(21,488

)

 

$

(3,339

)

 

$

(3,012

)

 

$

(3,369

)

Depreciation and amortization

 

8,516

 

 

 

7,634

 

 

 

7,542

 

 

 

7,448

 

 

 

7,764

 

Interest expense

 

4,497

 

 

 

3,593

 

 

 

6,463

 

 

 

6,597

 

 

 

6,695

 

Income taxes

 

102

 

 

 

236

 

 

 

63

 

 

 

119

 

 

 

162

 

EBITDA

$

11,778

 

 

$

(10,025

)

 

$

10,729

 

 

$

11,152

 

 

$

11,252

 

Gain on sale of real estate

 

(467

)

 

 

 

 

 

 

 

 

 

 

 

(388

)

Impairment loss on real estate held for investment

 

428

 

 

 

3,891

 

 

 

 

 

 

 

 

 

591

 

EBITDAre

$

11,739

 

 

$

(6,134

)

 

$

10,729

 

 

$

11,152

 

 

$

11,455

 

Adjustment for current period investment activity (1)

 

509

 

 

 

1,354

 

 

 

 

 

 

 

 

 

 

Adjustment for current period disposition activity (2)

 

 

 

 

 

 

 

 

 

 

(244

)

 

 

(392

)

Adjustment for non-cash compensation expense (3)

 

615

 

 

 

608

 

 

 

 

 

 

 

 

 

 

Adjustment to exclude non-recurring (income) expenses (4)

 

201

 

 

 

16,760

 

 

 

(307

)

 

 

(200

)

 

 

(363

)

Adjustment to exclude net write-offs of accrued rental income

 

394

 

 

 

63

 

 

 

176

 

 

 

 

 

 

 

Adjusted EBITDAre

 

13,458

 

 

 

12,651

 

 

 

10,598

 

 

 

10,708

 

 

 

10,700

 

Annualized EBITDAre

 

46,956

 

 

 

(24,536

)

 

 

42,916

 

 

 

44,608

 

 

 

45,820

 

Annualized adjusted EBITDAre

$

53,832

 

 

$

50,604

 

 

$

42,392

 

 

$

42,832

 

 

$

42,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Reflects an adjustment to give effect to all investments during the quarter as if they had been acquired as of the beginning of the quarter.

(2)

Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter.

(3)

Reflects an adjustment to exclude non-cash stock-based compensation expense.

(4)

Reflects an adjustment to exclude non-recurring expenses including IPO costs, lease termination fees and non-recurring income or expense.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

12

 


 

Net Debt Metrics

(in thousands)

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loan

 

$

200,000

 

 

$

200,000

 

 

$

 

 

$

 

 

$

 

Revolving Credit Facility

 

 

112,000

 

 

 

68,500

 

 

 

 

 

 

 

 

 

 

ABS Notes

 

 

 

 

 

 

 

 

253,499

 

 

 

253,829

 

 

 

254,159

 

CIBC Revolving Credit Facility

 

 

 

 

 

 

 

 

150,000

 

 

 

159,890

 

 

 

159,890

 

CIBC Term Loan

 

 

 

 

 

 

 

 

15,967

 

 

 

15,967

 

 

 

17,000

 

Gross Debt

 

 

312,000

 

 

 

268,500

 

 

 

419,466

 

 

 

429,686

 

 

 

431,049

 

Cash and cash equivalents

 

 

(3,309

)

 

 

(5,094

)

 

 

(9,895

)

 

 

(16,620

)

 

 

(13,197

)

Net Debt

 

$

308,691

 

 

$

263,406

 

 

$

409,571

 

 

$

413,066

 

 

$

417,852

 

Net Debt to Annualized EBITDAre

 

 

6.6

 

 

 

(10.7

)

 

 

9.5

 

 

 

9.3

 

 

 

9.1

 

Net Debt to Annualized Adjusted EBITDAre

 

 

5.7

 

 

 

5.2

 

 

 

9.7

 

 

 

9.6

 

 

 

9.8

 

 

Covenants

The following is a summary of key financial covenants for the Company’s unsecured debt instruments. The covenants associated with the Revolving Credit Facility are reported to the respective lenders via quarterly covenant reporting packages. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of March 31, 2025, the Company believes it is in compliance with the covenants.

 

Covenants

 

Required

 

Revolving Credit Facility

Total Leverage Ratio

 

≤ 60%

 

38.0%

Adjusted EBITDA to Fixed Charges Ratio

 

≥ 1.50 to 1.00

 

2.98x

Secured Leverage Ratio

 

≤ 40%

 

0.0%

Unencumbered NOI to Unsecured Interest Expense Ratio

 

≥ 1.75 to 1.00

 

3.59x

Unsecured Leverage Ratio

 

≤ 60%

 

38.0%

Tangible Net Worth

 

≥ 380,032

 

508,480

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

13

 


 

Dispositions

(in thousands, except # of properties)

The following table summarizes the Company’s property disposition activity during 2025.

Property

 

# of Properties

 

 

Original Purchase Price

 

 

Sale Price

 

 

Lease Termination Fee

 

 

Gain over Original Purchase Price

 

Occupied(1)

 

1

 

 

$

2,000

 

 

$

2,050

 

 

$

 

 

$

50

 

Vacant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Dispositions

 

1

 

 

$

2,000

 

 

$

2,050

 

 

$

 

 

$

50

 

 

 

(1)

One occupied property was sold during Q1 2025

 

Portfolio at a Glance: Key Metrics

 

 

March 31, 2025

 

December 31, 2024

 

September 30, 2024

 

June 30, 2024

 

March 31, 2024

Properties

 

323

 

307

 

278

 

278

 

280

U.S. States

 

37

 

35

 

31

 

31

 

31

Total Annualized Base Rent

 

$62.1M

 

$58.8M

 

$52.1M

 

$52.0M

 

$52.0M

Total Rentable Sq. Footage

 

2.6M

 

2.4M

 

2.1M

 

2.1M

 

2.1M

Tenants

 

329

 

320

 

293

 

292

 

294

Brands

 

151

 

150

 

137

 

137

 

137

Industries

 

15

 

15

 

15

 

15

 

15

Occupancy

 

96.3%

 

97.7%

 

98.9%

 

98.9%

 

98.6%

Top 10 Tenant Concentration

 

22.6%

 

21.8%

 

23.3%

 

23.3%

 

23.4%

Top 20 Tenant Concentration

 

37.9%

 

37.0%

 

38.5%

 

38.5%

 

38.7%

Investment Grade (tenant/guarantor)

 

33.2%

 

33.1%

 

38.0%

 

40.4%

 

38.1%

Financial Reporting Coverage(1)

 

87.5%

 

79.4%

 

81.6%

 

81.6%

 

N/A

Weighted Average Remaining Lease Term

 

7.4 Years

 

7.2 Years

 

6.7 Years

 

7.0 Years

 

7.6 Years

 

(1)

Includes tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly at March 31, 2025.

 

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14

 


 

Diversification: Top 40 Tenants

(in thousands, except for percentages and # of properties)

Tenant Brand

 

# of Properties(1)

 

 

Square Feet

 

 

ABR

 

 

% of ABR

 

 

% of Square Feet

 

Dollar Tree

 

 

12

 

 

 

135

 

 

$

1,927

 

 

 

3.1

%

 

 

5.2

%

Fast Pace Urgent Care

 

 

8

 

 

 

29

 

 

 

1,727

 

 

 

2.8

%

 

 

1.1

%

Verizon

 

 

8

 

 

 

35

 

 

 

1,650

 

 

 

2.7

%

 

 

1.4

%

Adams Auto Group

 

 

3

 

 

 

29

 

 

 

1,412

 

 

 

2.3

%

 

 

1.2

%

Oak Street Health

 

 

5.5

 

 

 

66

 

 

 

1,317

 

 

 

2.1

%

 

 

2.6

%

IHOP

 

 

6

 

 

 

33

 

 

 

1,226

 

 

 

2.0

%

 

 

1.3

%

Mammoth Car Wash

 

 

6

 

 

 

22

 

 

 

1,205

 

 

 

1.9

%

 

 

0.9

%

Raising Canes

 

 

6

 

 

 

21

 

 

 

1,201

 

 

 

1.9

%

 

 

0.8

%

Bank of America

 

 

5

 

 

 

26

 

 

 

1,195

 

 

 

1.9

%

 

 

1.0

%

LA-Z-Boy

 

 

3

 

 

 

54

 

 

 

1,152

 

 

 

1.9

%

 

 

2.1

%

CVS

 

 

4

 

 

 

42

 

 

 

1,081

 

 

 

1.7

%

 

 

1.6

%

AT&T

 

 

4

 

 

 

24

 

 

 

1,063

 

 

 

1.7

%

 

 

0.9

%

T-Mobile

 

 

7.5

 

 

 

26

 

 

 

1,030

 

 

 

1.7

%

 

 

1.0

%

Chili's

 

 

3

 

 

 

18

 

 

 

973

 

 

 

1.6

%

 

 

0.7

%

Wendy's

 

 

7

 

 

 

21

 

 

 

942

 

 

 

1.5

%

 

 

0.8

%

PNC Bank

 

 

5

 

 

 

29

 

 

 

935

 

 

 

1.5

%

 

 

1.1

%

Wells Fargo

 

 

2.5

 

 

 

13

 

 

 

871

 

 

 

1.4

%

 

 

0.5

%

Advance Auto Parts

 

 

7

 

 

 

66

 

 

 

857

 

 

 

1.4

%

 

 

2.6

%

Walgreens

 

 

3

 

 

 

38

 

 

 

854

 

 

 

1.4

%

 

 

1.5

%

St. Joseph Hospice

 

 

2

 

 

 

37

 

 

 

849

 

 

 

1.4

%

 

 

1.4

%

Heartland Dental

 

 

5

 

 

 

20

 

 

 

809

 

 

 

1.3

%

 

 

0.8

%

Burger King

 

 

5

 

 

 

20

 

 

 

765

 

 

 

1.2

%

 

 

0.8

%

Lowe's Home Improvement

 

 

1

 

 

 

168

 

 

 

750

 

 

 

1.2

%

 

 

6.6

%

VASA Fitness

 

 

0.5

 

 

 

50

 

 

 

704

 

 

 

1.1

%

 

 

2.0

%

Charles Schwab

 

 

1

 

 

 

9

 

 

 

696

 

 

 

1.1

%

 

 

0.4

%

Aspen Dental

 

 

4.5

 

 

 

20

 

 

 

679

 

 

 

1.1

%

 

 

0.8

%

Parachute Plasma

 

 

2

 

 

 

14

 

 

 

664

 

 

 

1.1

%

 

 

0.5

%

WSS

 

 

2

 

 

 

25

 

 

 

649

 

 

 

1.0

%

 

 

1.0

%

Wellnow

 

 

4

 

 

 

15

 

 

 

635

 

 

 

1.0

%

 

 

0.6

%

Walmart

 

 

1

 

 

 

212

 

 

 

632

 

 

 

1.0

%

 

 

8.3

%

Best Buy

 

 

1

 

 

 

45

 

 

 

613

 

 

 

1.0

%

 

 

1.8

%

Andy's Frozen Custard

 

 

4

 

 

 

8

 

 

 

610

 

 

 

1.0

%

 

 

0.3

%

Edge Fitness

 

 

1

 

 

 

53

 

 

 

605

 

 

 

1.0

%

 

 

2.1

%

Chase Bank

 

 

2.5

 

 

 

13

 

 

 

604

 

 

 

1.0

%

 

 

0.5

%

Floor & Decor

 

 

1

 

 

 

80

 

 

 

600

 

 

 

1.0

%

 

 

3.1

%

LA Fitness

 

 

2

 

 

 

34

 

 

 

600

 

 

 

1.0

%

 

 

1.3

%

Applebee's

 

 

3

 

 

 

15

 

 

 

574

 

 

 

0.9

%

 

 

0.6

%

Stop & Shop Gas

 

 

3

 

 

 

0

 

 

 

563

 

 

 

0.9

%

 

 

0.0

%

Buffalo Wild Wings

 

 

2

 

 

 

12

 

 

 

560

 

 

 

0.9

%

 

 

0.5

%

7-Eleven

 

 

4

 

 

 

11

 

 

 

545

 

 

 

0.9

%

 

 

0.4

%

Other

 

 

166

 

 

 

972

 

 

 

25,733

 

 

 

41.4

%

 

 

37.9

%

Total

 

 

323

 

 

 

2,560

 

 

$

62,057

 

 

 

100.0

%

 

 

100.0

%

 

(1)

Includes two-tenant properties.

 

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15

 


 

Diversification: Tenant Industry

(rent percentages based on ABR)

 

img108639748_7.jpg

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16

 


 

Diversification: Tenant Industry (continued)

(in thousands, except for percentages and # of properties)

Industry

 

# of Properties(1)

 

 

ABR

 

 

% of ABR

 

 

Square Feet

 

 

% of Square Feet

 

Medical and Dental Providers

 

 

43

 

 

$

9,036

 

 

 

14.6

%

 

 

270

 

 

 

10.5

%

Quick Service Restaurants

 

 

62.5

 

 

 

8,909

 

 

 

14.3

%

 

 

203

 

 

 

7.9

%

Casual Dining

 

 

42

 

 

 

8,607

 

 

 

13.8

%

 

 

268

 

 

 

10.5

%

General Retail

 

 

30

 

 

 

6,381

 

 

 

10.3

%

 

 

543

 

 

 

21.2

%

Financial Institutions

 

 

25

 

 

 

5,814

 

 

 

9.4

%

 

 

144

 

 

 

5.6

%

Automotive Stores & Dealers

 

 

34

 

 

 

5,736

 

 

 

9.2

%

 

 

259

 

 

 

10.1

%

Cellular Stores

 

 

21

 

 

 

4,039

 

 

 

6.5

%

 

 

96

 

 

 

3.8

%

Home Improvement Stores

 

 

9

 

 

 

3,091

 

 

 

5.0

%

 

 

339

 

 

 

13.2

%

Convenience & Gas Stores

 

 

16

 

 

 

2,983

 

 

 

4.8

%

 

 

43

 

 

 

1.7

%

Fitness Operators

 

 

5

 

 

 

2,523

 

 

 

4.1

%

 

 

170

 

 

 

6.6

%

Car Washes

 

 

10

 

 

 

2,022

 

 

 

3.3

%

 

 

33

 

 

 

1.3

%

Pharmacies

 

 

7

 

 

 

1,935

 

 

 

3.1

%

 

 

81

 

 

 

3.2

%

Professional Services

 

 

1

 

 

 

173

 

 

 

0.3

%

 

 

4

 

 

 

0.2

%

Other

 

 

18

 

 

 

808

 

 

 

1.3

%

 

 

107

 

 

 

4.2

%

Total

 

 

323

 

 

$

62,057

 

 

 

100.0

%

 

 

2,560

 

 

 

100.0

%

 

(1)

Includes two-tenant properties.

 

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17

 


 

Diversification: Property Map

 

img108639748_8.jpg

 

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18

 


 

 

Diversification: Geography

(in thousands, except for percentages and # of properties)

State

 

# of Properties(1)

 

 

Square Feet

 

 

ABR

 

 

% of Square Feet

 

 

% of ABR

 

IL

 

 

36

 

 

 

379

 

 

$

8,814

 

 

 

14.8

%

 

 

14.2

%

TX

 

 

24

 

 

 

134

 

 

 

4,891

 

 

 

5.2

%

 

 

7.9

%

GA

 

 

24

 

 

 

150

 

 

 

4,426

 

 

 

5.9

%

 

 

7.1

%

NC

 

 

17

 

 

 

94

 

 

 

3,353

 

 

 

3.7

%

 

 

5.4

%

OH

 

 

22

 

 

 

131

 

 

 

3,166

 

 

 

5.1

%

 

 

5.1

%

TN

 

 

17

 

 

 

93

 

 

 

3,133

 

 

 

3.6

%

 

 

5.0

%

IN

 

 

16

 

 

 

85

 

 

 

2,770

 

 

 

3.3

%

 

 

4.5

%

PA

 

 

8

 

 

 

145

 

 

 

2,502

 

 

 

5.7

%

 

 

4.1

%

VA

 

 

15

 

 

 

76

 

 

 

2,445

 

 

 

2.9

%

 

 

3.9

%

FL

 

 

15

 

 

 

99

 

 

 

2,323

 

 

 

3.9

%

 

 

3.7

%

NY

 

 

8

 

 

 

242

 

 

 

2,095

 

 

 

9.4

%

 

 

3.4

%

AL

 

 

11

 

 

 

49

 

 

 

1,783

 

 

 

1.9

%

 

 

2.9

%

MO

 

 

10

 

 

 

60

 

 

 

1,714

 

 

 

2.3

%

 

 

2.8

%

SC

 

 

10

 

 

 

73

 

 

 

1,588

 

 

 

2.9

%

 

 

2.6

%

NJ

 

 

10

 

 

 

55

 

 

 

1,499

 

 

 

2.1

%

 

 

2.4

%

AZ

 

 

7

 

 

 

43

 

 

 

1,490

 

 

 

1.6

%

 

 

2.4

%

MN

 

 

7

 

 

 

72

 

 

 

1,445

 

 

 

2.8

%

 

 

2.3

%

OK

 

 

9

 

 

 

48

 

 

 

1,416

 

 

 

1.8

%

 

 

2.3

%

MI

 

 

8

 

 

 

49

 

 

 

1,408

 

 

 

1.9

%

 

 

2.3

%

MD

 

 

7

 

 

 

50

 

 

 

1,406

 

 

 

2.0

%

 

 

2.3

%

LA

 

 

4

 

 

 

47

 

 

 

1,210

 

 

 

1.8

%

 

 

1.9

%

KY

 

 

8

 

 

 

40

 

 

 

1,067

 

 

 

1.6

%

 

 

1.7

%

ME

 

 

3

 

 

 

186

 

 

 

1,062

 

 

 

7.3

%

 

 

1.7

%

KS

 

 

6

 

 

 

41

 

 

 

1,058

 

 

 

1.6

%

 

 

1.7

%

CT

 

 

3

 

 

 

9

 

 

 

610

 

 

 

0.4

%

 

 

1.0

%

CO

 

 

3

 

 

 

13

 

 

 

469

 

 

 

0.5

%

 

 

0.8

%

ID

 

 

1

 

 

 

6

 

 

 

424

 

 

 

0.2

%

 

 

0.7

%

MS

 

 

2

 

 

 

13

 

 

 

417

 

 

 

0.5

%

 

 

0.7

%

UT

 

 

2

 

 

 

22

 

 

 

340

 

 

 

0.9

%

 

 

0.5

%

NE

 

 

2

 

 

 

20

 

 

 

325

 

 

 

0.8

%

 

 

0.5

%

WI

 

 

2

 

 

 

15

 

 

 

310

 

 

 

0.6

%

 

 

0.5

%

NV

 

 

1

 

 

 

4

 

 

 

259

 

 

 

0.2

%

 

 

0.4

%

AR

 

 

1

 

 

 

3

 

 

 

218

 

 

 

0.1

%

 

 

0.4

%

RI

 

 

1

 

 

 

1

 

 

 

182

 

 

 

0.1

%

 

 

0.3

%

SD

 

 

1

 

 

 

10

 

 

 

155

 

 

 

0.4

%

 

 

0.2

%

MA

 

 

1

 

 

 

2

 

 

 

143

 

 

 

0.1

%

 

 

0.2

%

WV

 

 

1

 

 

 

1

 

 

 

141

 

 

 

0.1

%

 

 

0.2

%

Total

 

 

323

 

 

 

2,560

 

 

$

62,057

 

 

 

100.0

%

 

 

100.0

%

 

(1)

Includes two-tenant properties.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

19

 


 

Lease Expirations

(in thousands; based on ABR)

 

img108639748_9.jpg

 

(in thousands, except for percentages)

Year

 

ABR

 

 

% of ABR

 

 

Square Feet

 

 

% of Square Feet

 

2025

 

$

1,025

 

 

 

1.6

%

 

 

26

 

 

 

1.0

%

2026

 

 

3,205

 

 

 

5.1

%

 

 

108

 

 

 

4.2

%

2027

 

 

6,877

 

 

 

11.0

%

 

 

382

 

 

 

14.9

%

2028

 

 

4,595

 

 

 

7.4

%

 

 

159

 

 

 

6.2

%

2029

 

 

6,376

 

 

 

10.3

%

 

 

215

 

 

 

8.4

%

2030

 

 

6,362

 

 

 

10.3

%

 

 

199

 

 

 

7.8

%

2031

 

 

4,459

 

 

 

7.2

%

 

 

143

 

 

 

5.6

%

2032

 

 

5,580

 

 

 

9.0

%

 

 

423

 

 

 

16.5

%

2033

 

 

2,764

 

 

 

4.5

%

 

 

85

 

 

 

3.3

%

2034

 

 

4,018

 

 

 

6.5

%

 

 

155

 

 

 

6.1

%

2035

 

 

1,580

 

 

 

2.5

%

 

 

79

 

 

 

3.1

%

2036

 

 

1,784

 

 

 

2.9

%

 

 

49

 

 

 

1.9

%

2037

 

 

2,786

 

 

 

4.5

%

 

 

141

 

 

 

5.5

%

2038

 

 

2,767

 

 

 

4.5

%

 

 

164

 

 

 

6.4

%

2039

 

 

2,647

 

 

 

4.3

%

 

 

54

 

 

 

2.1

%

Thereafter

 

 

5,232

 

 

 

8.4

%

 

 

155

 

 

 

6.1

%

Untenanted Properties

 

 

 

 

 

 

 

 

23

 

 

 

0.9

%

Total

 

$

62,057

 

 

 

100.0

%

 

 

2,560

 

 

 

100.0

%

 

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20

 


 

Definitions and Explanations

Adjusted Secured Overnight Financing Rate (SOFR): We define Adjusted SOFR as the current one month term SOFR plus an adjustment of 0.10% per the terms of our credit facilities.

Annualized Base Rent (ABR): We define ABR as the annualized contractual cash rent due for the last month of the reporting period, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for properties acquired during the last month of the reporting period

EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre: EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre are non-GAAP financial measures. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our leverage that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. In 2017, Nareit issued a white paper recommending that companies that report EBITDA also report EBITDAre in financial reports. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA (as defined above) excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. We compute adjusted EBITDAre as EBITDAre for the applicable quarter, as adjusted to (i) reflect all investment and disposition activity that took place during the applicable quarter as if each transaction had been completed on the first day of the quarter, (ii) exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, (iii) eliminate the impact of lease termination fees from certain of our tenants, and (iv) exclude non-cash stock-based compensation expense. Annualized adjusted EBITDAre is calculated by multiplying adjusted EBITDAre for the applicable quarter by four, which we believe provides a meaningful estimate of our current run rate for all of our investments as of the end of the most recently completed quarter given the contractual nature of our long-term net leases. You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our annualized adjusted EBITDAre. Our reported EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider these measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): FFO and AFFO are non-GAAP measures. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the standards established by the Board of Governors of Nareit. Nareit defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain previously depreciated real estate assets. To derive AFFO, we modify the Nareit computation of FFO to include other adjustments to GAAP net income related to certain non-cash or non-recurring revenues and expenses, including straight-line rents, cost of debt extinguishments, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, (gain) loss on interest rate swaps and other non-cash interest expense, realized gains or losses on foreign currency transactions, Internalization expenses, structuring and public company readiness costs, extraordinary items, and other specified non-cash items. We believe that such items are not a result of normal operations and thus we believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.

Gross Debt: We define Gross Debt as total debt, net plus debt issuance costs and original issuance discount.

Net Debt: Net Debt is a non-GAAP financial measure. We define Net Debt as our Debt less cash and cash equivalents.

Occupancy: Occupancy or a specified percentage of our portfolio that is “occupied” or “leased” means as of a specified date (i) the number of properties that are subject to a signed lease divided by (ii) the total number of properties in our portfolio.

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21