UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 3131 McKinney Avenue Suite L10 Dallas, Texas 75204 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2025 ☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-42301 FRONTVIEW REIT, INC. (Exac ...

Shares of FrontView REIT, Inc. ( FVR ) have been a poor performer over the past year, losing about a quarter of their value. In addition to ongoing concerns about commercial real estate in an elevated rate environment, shares have been weighed down byOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, jus ...

Financial Data and Key Metrics Changes - Annualized base rent (ABR) decreased to $61.3 million as of September 30, compared to $63.2 million at June 30, primarily due to being a net seller of assets during the quarter [15] - Total cash rental income totaled $15.4 million, down from $15.7 million in the previous quarter [16] - Net debt to adjusted EBITDAre reduced to 5.3 times, the lowest leverage since the IPO, with a loan-to-value (LTV) of 33% based on bank covenants [17] - Cash interest expense declined by $100,000 sequentially to $4.2 million [16] Business Line Data and Key Metrics Changes - The company acquired three properties for approximately $15.8 million at an average cap rate of 7.5% during the third quarter [7] - Disposed of 15 properties for $32.9 million, with an average cash cap rate of approximately 6.78% [9] - The current portfolio occupancy improved to over 98%, with only six vacant assets [10] Market Data and Key Metrics Changes - The acquisition market remains open, with competitive advantages allowing the company to capitalize on buy-side opportunities [8] - The company has eliminated exposure to several casual dining concepts, focusing on optimizing the portfolio [10] Company Strategy and Development Direction - The company aims to build a best-in-class net lease REIT that can grow faster and maximize shareholder returns [14] - A $75 million convertible preferred equity investment was announced to fund net acquisitions in 2026, with favorable terms compared to comparable instruments [12][18] - The strategy includes focusing on necessity-driven retail and service tenancies, which are less sensitive to economic cycles [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the Tricolor property and the overall portfolio's strength, expecting minimal downtime [11] - The company raised its AFFO per share guidance for the year, reflecting disciplined capital allocation and active portfolio management [12] - The anticipated AFFO per share for 2026 is projected to be in the range of $1.26-$1.30, representing a 3.2% year-over-year growth [22] Other Important Information - The company has enhanced disclosures in its investor presentation to provide deeper insights into asset quality and productivity [15] - The company is now shelf-eligible and plans to file an S3 registration statement shortly [18] Q&A Session Summary Question: Can you provide more details on the 2026 guidance and lease expirations? - Management indicated that the guidance reflects a solid baseline and expects favorable outcomes from lease expirations, with a historical recovery rate of 105% on renewals [24][25] Question: What is the current deal pipeline and cap rate trends? - The market remains fluid, with expected cap rates for Q4 similar to Q3, around 7.5% [26][28] Question: Can you elaborate on the preferred equity investment and its relationship with Maewyn? - The relationship with Maewyn has been longstanding, and the terms were negotiated to ensure accretive capital growth for shareholders [33][34] Question: What are the expectations for bad debt in 2026? - Management believes the 50 basis points estimate for bad debt is conservative, given the optimized portfolio [38] Question: What categories is the company looking to expand in? - The company is focusing on medical, financial, automotive service, and fitness sectors while being cautious with certain restaurants and pharmacy concepts [40] Question: Can you discuss the pipeline regarding WALT and escalators? - The company aims to maintain longer-term weighted average lease terms and embedded rent bumps as critical components of acquisition criteria [44]

Financial Performance & Portfolio - FrontView raised full-year 2025 AFFO per share guidance by $0.01 at the midpoint[9] - Quarter-end occupancy reached 98%, a 20 bps increase due to active asset management[9] - The company bought $16 million in assets at a 7.5% capitalization rate and sold $32.9 million at a 6.8% capitalization rate[9] - The company's annualized base rent (ABR) is $61.3 million[11] Capital Structure & Liquidity - FrontView secured a $75 million delayed-draw convertible preferred equity investment led by Maewyn Capital Partners, featuring a 6.75% dividend yield and a $17.00 conversion price[9] - The investment is projected to provide ~3% AFFO per-share accretion when fully drawn[9] - The company has $230 million+ in liquidity, with Net Debt to Adj Ann EBITDAre at 5.3x and LTV < 35%[9] - Pro forma liquidity increases to $236.1 million including the $75 million delayed-draw Convertible Perpetual Preferred closed post quarter[12] Valuation & Growth - The company is trading at an ~9% implied cap rate, while asset-sale cap rates (~6.8%) and peer valuations imply over a ~200-basis-point spread[9] - Initial AFFO per share guidance for 2026 is $1.26 to $1.30, representing 3.2% growth at the midpoint[9] - The acquisition capacity funds ~$100 million 2026 pipeline[70]

Financial Performance - FrontView REIT, Inc. reported quarterly funds from operations (FFO) of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and up from $0.22 per share a year ago, representing an FFO surprise of +6.67% [1] - The company posted revenues of $16.8 million for the quarter ended September 2025, which missed the Zacks Consensus Estimate by 1.42%, compared to year-ago revenues of $14.53 million [2] Market Performance - FrontView REIT, Inc. shares have declined approximately 24.9% since the beginning of the year, while the S&P 500 has gained 16.4% [3] - The company has surpassed consensus FFO estimates three times over the last four quarters, but has only topped consensus revenue estimates once in the same period [2] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.30 on revenues of $17.21 million, and for the current fiscal year, it is $1.21 on revenues of $68.05 million [7] - The estimate revisions trend for FrontView REIT, Inc. was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the top 27% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]

"FrontView†, "we†, "our†, or "us†), today announced the entry into an agreement providing for a $75 million delayed-draw convertible perpetual preferred equity investment led by Maewyn Capital Partners ("Maewyn†). "We are proud to announce this growth equity investment, which marks a major endorsement of our strategy and platform,†said Stephen Preston, Chairman and Chief Executive Officer of FrontView. "We believe this i. DALLAS--(BUSINESS WIRE)--FrontView REIT, Inc. (NYSE: FVR) (the "Company†, ...

Financial Performance - Generated net income of $5.5 million, or $0.19 per share, with funds from operations (FFO) of $6.9 million, or $0.25 per share, and adjusted funds from operations (AFFO) of $8.8 million, or $0.32 per share[5] - Net income for Q3 2025 was $5,547,000, compared to a net loss of $3,339,000 in Q3 2024[36] - The company reported a net income per share of $0.19 for Q3 2025, compared to a loss per share of $0.00 in Q3 2024[36] - Net income for the three months ended September 30, 2025, was $5,547,000, with EBITDA reported at $18,166,000[44] - Adjusted Funds from Operations (AFFO) for the nine months ended September 30, 2025, totaled $26,086,000, compared to $14,656,000 in the same period of 2024, indicating an increase of 77.8%[37] Revenue and Occupancy - Total revenues for Q3 2025 were $16,803,000, an increase of 15.6% compared to $14,534,000 in Q3 2024[36] - Rental revenues for the nine months ended September 30, 2025, reached $50,206,000, up from $44,160,000 in the same period of 2024, reflecting a growth of 13.8%[36] - Improved occupancy to 98.0% with annualized base rent of $61.3 million[5] Investments and Transactions - Closed on 3 properties for $15.8 million at an average capitalization rate of 7.48% and a weighted average lease term of 10.7 years[5] - Sold 15 properties, including 13 occupied properties, for $30.1 million in gross proceeds with an average capitalization rate of 6.78%[5] - Closed a $75.0 million delayed-draw convertible perpetual preferred equity investment[4] Guidance and Future Projections - Updated 2025 AFFO per share guidance to a range of $1.23 to $1.25[12] - Initiated preliminary 2026 AFFO per share guidance of $1.26 to $1.30[19] Balance Sheet and Liquidity - Maintained a strong balance sheet with a net debt to adjusted EBITDAre of 5.3x and a fixed charge coverage ratio of 3.3x[5] - Total liquidity as of September 30, 2025, was $161.1 million, including $19.6 million in cash and cash equivalents[10] - The company's total assets as of September 30, 2025, were $846,790,000, up from $821,809,000 at the end of 2024[34] - Total liabilities increased to $342,639,000 as of September 30, 2025, compared to $299,131,000 at the end of 2024[34] - Cash and cash equivalents rose significantly to $19,595,000 as of September 30, 2025, from $5,094,000 at the end of 2024[34] Key Financial Ratios - The Fixed Charge Coverage Ratio is highlighted as a key measure of the company's ability to cover fixed charges, including interest and principal repayments[30] - The company reported a Net Debt of $288,905,000, with a Net Debt to Annualized EBITDAre ratio of 6.0x and a Net Debt to Annualized Adjusted EBITDAre ratio of 5.3x[53] - Annualized Fixed Charges were calculated at $16,640,000, resulting in an Annualized Adjusted EBITDAre to Annualized Fixed Charges ratio of 3.3x[55] Operational Metrics - Adjusted Cash NOI for the quarter was $15,221,000, with an annualized figure of $60,884,000[52] - Adjusted NOI was reported at $15,780,000, reflecting the company's operational results after excluding general and administrative expenses[50] - FFO and AFFO are used to assess operating performance, with AFFO providing a clearer picture by excluding one-time cash and non-cash revenues or expenses[42] - The company emphasizes that EBITDA and EBITDAre are not measures of financial performance under GAAP and should not be considered alternatives to net income[47] - The company may need to adjust its calculation of AFFO in response to potential future standardization by regulatory bodies[43]

Group 1 - The article emphasizes the importance of diversifying investment strategies beyond AI-focused opportunities, suggesting a broader market perspective [1] - It highlights the availability of in-depth research on various investment vehicles such as REITs, mREITs, preferreds, BDCs, MLPs, and ETFs, indicating a comprehensive approach to income alternatives [1] - The article mentions a positive reception with 438 testimonials, most rated 5 stars, reflecting strong user satisfaction with the research services offered [1] Group 2 - The article does not provide specific financial data or performance metrics related to companies or industries [2] - There are no detailed insights or analyses regarding particular companies or market trends presented in the content [2]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on real estate investment trusts (REITs) [1] - He has a background in IT analysis for Fortune 500 companies and experience in financial services with Charles Schwab [1] - Anthony is launching a book on REITs in 2025 and manages his own equities research firm remotely [1] Background and Experience - The author has over 1,000 followers on Seeking Alpha and writes for various financial platforms [1] - He has participated in numerous business and innovation conferences in the EU and has a degree from Drew University [1] - Currently enrolled in the CMSA certification program at the Corporate Finance Institute in Vancouver [1] Media and Digital Presence - Albert Anthony is active in digital media, including a YouTube channel focused on REITs [1] - He has appeared in regional media channels in Croatia and has had roles in over five productions [1] - The author does not engage with non-publicly traded companies or small-cap stocks [1]

Part I - FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Financial statements for Q2 and H1 2025 reflect asset growth and increased revenues, offset by net losses from expenses and property acquisitions [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$856.5 million** by June 30, 2025, driven by real estate, while liabilities increased and equity slightly decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$856,512** | **$821,809** | | Real estate held for investment, net | $688,212 | $679,008 | | Cash and cash equivalents | $8,363 | $5,094 | | **Total Liabilities** | **$352,561** | **$299,131** | | Debt, net | $316,892 | $266,538 | | **Total Equity** | **$503,951** | **$522,678** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 revenues increased to **$17.6 million**, but a **$4.5 million net loss** was recorded due to higher expenses and impairment, while H1 net loss slightly narrowed Statement of Operations Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $17,554 | $14,610 | $33,797 | $29,869 | | Total Operating Expenses | $15,459 | $10,855 | $28,479 | $22,423 | | Net Loss | $(4,530) | $(3,012) | $(5,867) | $(6,381) | | Net Loss per Share (Basic & Diluted) | $(0.16) | N/A | $(0.22) | N/A | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw operating cash flow double to **$17.4 million**, while investing activities used **$51.8 million** for acquisitions, and financing provided **$37.7 million** Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $17,359 | $7,720 | | Net cash (used in) provided by investing activities | $(51,795) | $8,531 | | Net cash provided by (used in) financing activities | $37,705 | $(16,760) | | **Net increase (decrease) in cash** | **$3,269** | **$(509)** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's REIT operations, **319 properties**, **$67.9 million** in acquisitions, **$318.5 million** total debt, and declared dividends - The company is an internally-managed net-lease REIT that owned a diversified portfolio of **319 properties** across 37 U.S. states as of June 30, 2025[29](index=29&type=chunk) - In the first six months of 2025, the company acquired **22 properties** for **$67.9 million** and sold **10 properties** for **$24.7 million**[87](index=87&type=chunk)[89](index=89&type=chunk) - Total debt as of June 30, 2025, was **$318.5 million**, consisting of a **$118.5 million** balance on the Revolving Credit Facility and a **$200.0 million** Term Loan[97](index=97&type=chunk)[99](index=99&type=chunk) Dividends Declared (Six Months Ended June 30, 2025) | Declaration Date | Dividend per Share | Record Date | Total Amount (in thousands) | Payment Date | | :--- | :--- | :--- | :--- | :--- | | 18-Mar-2025 | $0.215 | 31-Mar-2025 | $6,178 | 15-Apr-2025 | | 13-May-2025 | $0.215 | 30-Jun-2025 | $6,102 | 15-Jul-2025 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 revenue growth from portfolio expansion, increased G&A post-internalization, reduced interest expense, and **$131.5 million** available liquidity [Our Real Estate Investment Portfolio](index=34&type=section&id=Our%20Real%20Estate%20Investment%20Portfolio) The portfolio comprises **319 properties** across 37 states with a **97.8% lease rate**, diversified by tenant and industry, and an average lease term of **7.3 years** - The portfolio comprises **319 properties** in 37 U.S. states with an ABR weighted average remaining lease term of **7.3 years**[135](index=135&type=chunk)[137](index=137&type=chunk) - The portfolio is highly diversified, with **157 different tenant concepts**, where the top 10 concepts represent only **22.6%** of the portfolio's ABR[137](index=137&type=chunk)[141](index=141&type=chunk) - Approximately **97.3%** of leases (by ABR) feature contractual rent escalations, with the majority being fixed percentage increases[137](index=137&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 revenues grew **20%** to **$17.6 million**, but operating expenses rose **42%** due to G&A and impairment, while interest expense decreased **30%** Results of Operations Comparison - Three Months Ended June 30 (in thousands) | Line Item | 2025 (Successor) | 2024 (Predecessor) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $17,554 | $14,610 | $2,944 | 20% | | Total Operating Expenses | $15,459 | $10,855 | $4,604 | 42% | | General and administrative expenses | $3,279 | $643 | $2,636 | >100% | | Interest Expense | $4,647 | $6,597 | $(1,950) | (30)% | | Impairment loss | $2,978 | $— | $2,978 | >100% | | Net Loss | $(4,530) | $(3,012) | $(1,518) | 50% | - The elimination of property and asset management fees (totaling **$1.5 million** in Q2 2024) was a direct result of the Internalization completed on October 2, 2024[170](index=170&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by cash from operations and **$131.5 million** available on the Revolving Credit Facility, with interest rate swaps mitigating risk on the Term Loan - As of June 30, 2025, the company had **$131.5 million** of available capacity under its **$250.0 million** Revolving Credit Facility[195](index=195&type=chunk) - To manage interest rate risk on its variable-rate Term Loan, the company entered into interest rate swap agreements on March 3, 2025, effectively converting **$200.0 million** of floating-rate debt to a fixed rate of **3.664%**[204](index=204&type=chunk)[205](index=205&type=chunk) Contractual Obligations as of June 30, 2025 (in thousands) | Year of Maturity | Revolving Credit Facility | Term Loan | Interest Expense | Dividend Commitments | Investment Commitments | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Remainder of 2025 | $— | $— | $8,959 | $6,102 | $15,771 | $30,832 | | 2026 | $— | $— | $17,917 | $— | $— | $17,917 | | 2027 | $118,500 | $200,000 | $14,931 | $— | $— | $333,431 | | **Total** | **$118,500** | **$200,000** | **$41,807** | **$6,102** | **$15,771** | **$382,180** | [Non-GAAP Financial Measures](index=50&type=section&id=Non-GAAP%20Financial%20Measures) Q2 2025 FFO was **$6.7 million** (**$0.24 per share**) and AFFO was **$9.0 million** (**$0.32 per share**), with Net Debt to Annualized Adjusted EBITDAre at **5.5x** Reconciliation of Net Loss to FFO and AFFO (in thousands, except per share amounts) | Metric | Q2 2025 | Six Months 2025 | | :--- | :--- | :--- | | Net loss | $(4,530) | $(5,867) | | Adjustments (Depreciation, Gain on sale, Impairment) | $11,240 | $19,016 | | **Funds from Operations (FFO)** | **$6,720** | **$13,149** | | FFO per share | $0.24 | $0.47 | | Further Adjustments (Straight-line rent, Amortization, etc.) | $2,308 | $4,108 | | **Adjusted Funds from Operations (AFFO)** | **$9,028** | **$17,257** | | AFFO per share | $0.32 | $0.62 | Leverage Ratios as of June 30, 2025 | Metric | Value | | :--- | :--- | | Gross Debt | $318,500 thousand | | Net Debt | $310,137 thousand | | Net Debt to Annualized EBITDAre | 6.2x | | Net Debt to Annualized Adjusted EBITDAre | 5.5x | [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on floating-rate debt, mitigated by interest rate swap agreements for its Term Loan - The main market risk is interest rate fluctuations on floating-rate debt, which is based on the Adjusted SOFR[242](index=242&type=chunk) - The company utilizes interest rate swaps to manage interest rate risk on its Term Loan, effectively converting variable-rate debt to a fixed rate[243](index=243&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the quarter ended June 30, 2025[244](index=244&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[245](index=245&type=chunk) Part II - OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any legal proceedings expected to materially adversely affect its business or financial condition - The company reports no material legal proceedings[246](index=246&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor addresses potential defaults on seller-financed mortgage loans, with no other material changes since the 2024 Annual Report - A new risk factor was added regarding potential losses from defaults on seller-financed mortgage loans provided to property buyers[247](index=247&type=chunk) - There have been no other material changes to the risk factors since the filing of the 2024 Annual Report on Form 10-K[248](index=248&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[249](index=249&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading plans or other non-Rule 10b5-1 arrangements during the period - No officers or directors adopted or terminated any contract, instruction, or written plan for the purchase or sale of securities under Rule 10b5-1(c)[252](index=252&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits) The report includes exhibits such as corporate governance documents, an employment agreement, and CEO/CFO certifications - Exhibits filed with the report include corporate bylaws, partnership agreements, an employment agreement for Pierre Revol, and CEO/CFO certifications[256](index=256&type=chunk)