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)

Financial Data and Key Metrics Changes - Cash rents for Q2 were $15,700,000, an increase of $600,000 or 4% from the previous quarter, driven by acquisitions and increased percentage rents [14] - Total revenue increased by $1,300,000 sequentially to $17,600,000, including straight-line rent and other income [14] - AFFO per share increased by 2 cents or 6.7% quarter-over-quarter to 32 cents, with a declared quarterly dividend of $0.02, representing a 66% payout ratio on AFFO per share [17] Business Line Data and Key Metrics Changes - The portfolio ended the quarter with an occupancy rate of 97.8%, up from approximately 96% in the previous quarter [6] - Five properties were acquired for approximately $17,800,000 at an average cash cap rate of 8.17%, with a weighted average remaining lease term of approximately 11 years [9] - Nine properties were sold for $22,700,000 during the quarter, recovering approximately 90% of the original purchase price [10] Market Data and Key Metrics Changes - The company is targeting a cap rate trend around 7.5% going into Q3 [11] - The current leverage ratio is 5.5 times net debt to annualized adjusted EBITDAR, with an LTV of less than 40% [10][19] Company Strategy and Development Direction - The company is increasing its capital recycling by raising disposition guidance to $60,000,000 to $75,000,000 while reducing acquisition targets to $110,000,000 to $130,000,000 [11][20] - The focus remains on acquiring high visibility properties with strong credits and attractive valuations [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong performance despite reduced net capital deployment, expecting to achieve between 30 to 32 cents per quarter for the second half of the year [24] - The portfolio is described as healthy, with negligible credit losses and no material additions to the watch list [25][52] Other Important Information - The company has expanded its tenant disclosures to include its top 60 tenants, providing greater insight into the portfolio [13][60] - The balance sheet remains conservatively positioned, with a strong liquidity position of approximately $140,000,000 [18] Q&A Session Summary Question: Why is the midpoint of AFFO per share guidance unchanged despite reduced net investment volume? - Management indicated strong operational performance and confidence in existing tenants, allowing for a reasonable target of 31 cents per share for the second half of the year [24] Question: Will there be adjustments to bad debt guidance given the improved leasing progress? - Management did not provide an update on bad debt guidance but noted a healthy portfolio with minimal credit losses [25] Question: What is the expected spread and cap rates for acquisitions and dispositions? - Management expects a 50 to 75 basis point differential between selling assets and acquiring new ones, with continued opportunities in the market [31] Question: What is the size of the acquisition pipeline? - Management indicated a robust pipeline for acquisitions, with the potential to increase the pace of acquisitions if the cost of capital improves [50] Question: What is the context behind the new mortgage loan receivables on the balance sheet? - The company made two loans on assets sold, achieving a good yield with an interest rate of about 8% [58] Question: Why expand the top tenant list to 60? - Management emphasized transparency and the quality of the tenant mix, which supports investor confidence [60]

Portfolio Overview - FrontView REIT's gross real estate amounts to $900.305 thousand[4], with an annualized base rent of $62.293 thousand[4] - The portfolio consists of 319 properties[4] across 37 states[4], with a 97.8% occupancy rate[4] and a weighted average lease term (WALT) of 7.3 years[4] - The top 10 tenants account for 23% of the annualized base rent (ABR)[4], while the top 20 tenants represent 38%[4] Financial Performance - Net loss per share is $(0.16)[4], FFO (Funds From Operations) per share is $0.24[4], and AFFO (Adjusted Funds From Operations) per share is $0.32[4] - The company's net debt to annualized adjusted EBITDAre is 5.5x[4], with a fixed charge coverage of 3.3x[4] - FrontView REIT's total capitalization is $644 million[20], with common stock representing 37.6% and OP Units representing 13.6%[20] Capital Structure and Liquidity - The company has $139.863 thousand in liquidity[4], including cash and existing revolver capacity - The revolving credit facility has a balance of $118.500 thousand[21] and the term loan is $200.000 thousand[21] Investment and Disposition Activity - Year-to-date capital deployment totals $67.023 thousand[4], with dispositions amounting to $24.711 thousand[4] - Investment guidance for the second half of 2025 is between $110 million and $130 million, while disposition guidance is between $60 million and $75 million[43] Tenant and Industry Diversification - Medical and Dental Providers represent 14.7% of ABR, with Quick Service Restaurants at 13.9% and Casual Dining at 12.9%[52] - The top tenant, Dollar Tree, accounts for 3.3% of ABR[49]

[Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported a successful second quarter, characterized by strong portfolio execution, strategic capital allocation, and a strengthened financial position - Portfolio occupancy increased to **97.8%**, with successful resolution of 9 out of 12 previously vacant properties through sales or leasing[2](index=2&type=chunk) - Executed strategic asset recycling by acquiring **$17.8 million** of assets at an **8.2%** cash cap rate and selling **$22.7 million** of assets, with occupied properties sold at a **6.75%** cap rate[2](index=2&type=chunk) - Strengthened the balance sheet, delivering strong AFFO per share and reducing the net debt to annualized adjusted EBITDAre ratio[2](index=2&type=chunk) - Announced the appointment of Pierre Revol as the new Chief Financial Officer following the end of the quarter[2](index=2&type=chunk) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) FrontView REIT reported a net loss of $4.5 million for Q2 2025, alongside strong FFO and AFFO, improved occupancy, and a healthy balance sheet Q2 2025 Summarized Financial Results (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $17,554 | $14,610 | | Net loss | $(4,530) | $(3,012) | | Net loss per share | $(0.16) | — | | FFO | $6,720 | $4,010 | | FFO per share | $0.24 | — | | AFFO | $9,028 | $4,892 | | AFFO per share | $0.32 | — | - Acquired 5 properties for **$17.8 million** at an average capitalization rate of **8.2%**[5](index=5&type=chunk) - Sold 9 properties, including 5 occupied ones for **$11.6 million** in gross proceeds at an average cap rate of **6.75%**[5](index=5&type=chunk) - Maintained a strong balance sheet with Net Debt to Adjusted EBITDAre of **5.5x** and total available liquidity of **$139.9 million**[5](index=5&type=chunk) - Paid a **$0.215** dividend per share, representing a **7.2%** yield and a **66%** AFFO payout ratio[5](index=5&type=chunk) [Investment and Portfolio Status](index=2&type=section&id=Investment%20and%20Portfolio%20Status) In Q2 2025, the company was a net seller with $4.9 million in dispositions, while maintaining a portfolio of 319 properties with 97.8% occupancy Investment Activity Summary (for the three months ended June 30, 2025) | Activity | of Properties | Amount (in thousands) | | :--- | :--- | :--- | | Investments | 5 | $17,799 | | Dispositions | 9 | $22,661 | | **Net Activity** | **(4)** | **$(4,862)** | Portfolio Snapshot as of June 30, 2025 | Metric | Value | | :--- | :--- | | Number of Properties | 319 | | Annualized Base Rent | $62.3 million | | Occupancy | 97.8% | | Weighted Average Lease Term | 7.3 years | | Investment Grade % | 33.1% | [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 30, 2025, the company maintained a strong balance sheet with a Net Debt to Annualized Adjusted EBITDAre of 5.5x and $139.9 million in total liquidity Leverage and Liquidity as of June 30, 2025 | Metric | Value | | :--- | :--- | | Net Debt/ Annualized Adjusted EBITDAre | 5.5x | | Fixed Charge Coverage Ratio | 3.3x | | Total Liquidity (in thousands) | $139,863 | [Distributions](index=3&type=section&id=Distributions) The board of directors declared a quarterly cash dividend of $0.215 per common share and OP unit for the third quarter of 2025 - A quarterly dividend of **$0.215** per share was declared on August 12, 2025[10](index=10&type=chunk) - The dividend is payable on or before October 15, 2025, to holders of record as of September 30, 2025[10](index=10&type=chunk) [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) [Revised Guidance Update](index=3&type=section&id=Revised%20Guidance%20Update) The company updated its full-year 2025 guidance, narrowing the AFFO per share range to $1.22-$1.24 and adjusting capital allocation expectations Full Year 2025 Guidance Update | Metric | Prior Guidance | Current Guidance | | :--- | :--- | :--- | | AFFO per share | $1.20 to $1.26 | $1.22 to $1.24 | | Investment Activity ($mm) | $125 to $145 | $110 to $130 | | Disposition Activity ($mm) | $20 to $40 | $60 to $75 | - The company does not provide guidance for the comparable GAAP measure, net income, due to the inability to reasonably predict certain items like potential impairments or gains/losses on dispositions[14](index=14&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of $856.5 million and total liabilities of $352.6 million, reflecting growth in real estate investments and net debt Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate held for investment, net | $688,212 | $679,008 | | Total assets | $856,512 | $821,809 | | Debt, net | $316,892 | $266,538 | | Total liabilities | $352,561 | $299,131 | | Total equity | $503,951 | $522,678 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenues increased to $17.6 million, but higher operating expenses and an impairment loss resulted in a net loss of $4.5 million Statement of Operations Summary (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenues | $17,554 | $14,610 | | Total operating expenses | $15,459 | $10,855 | | Interest expense | $4,647 | $6,597 | | (Gain)/ loss on sale of real estate | $(1,194) | $51 | | Impairment loss | $2,978 | — | | **Net loss** | **$(4,530)** | **$(3,012)** | [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Notice and Definitions of Non-GAAP Measures](index=4&type=section&id=Notice%20and%20Definitions%20of%20Non-GAAP%20Measures) This section explains the company's use of non-GAAP financial measures like FFO, AFFO, and EBITDA, which provide supplemental information for investors - FFO and AFFO are presented as they are widely accepted industry measures for comparing the operating performance of REITs, though they should not be considered alternatives to GAAP net income[21](index=21&type=chunk)[34](index=34&type=chunk) - EBITDA and EBITDAre are used to provide supplemental information on operating performance exclusive of certain non-cash costs and differences in capital structure[22](index=22&type=chunk)[42](index=42&type=chunk) - Adjusted NOI is used to reflect income and expense items incurred only at the property level, providing a clearer view of property-level performance[23](index=23&type=chunk)[46](index=46&type=chunk) [Reconciliation of Net Loss to FFO and AFFO](index=7&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20FFO%20and%20AFFO) The company reconciled its Q2 2025 net loss of $4.5 million to FFO of $6.7 million and AFFO of $9.0 million, adjusting for non-cash items Q2 2025 Reconciliation of Net Loss to FFO and AFFO (in thousands) | Line Item | Amount | | :--- | :--- | | **Net loss** | **$(4,530)** | | Depreciation and amortization | $9,466 | | (Gain)/ loss on sale of real estate | $(1,194) | | Impairment loss on real estate | $2,978 | | **Funds from Operations (FFO)** | **$6,720** | | Straight-line rent adjustments | $(286) | | Amortization of financing/lease intangibles | $1,341 | | Other non-recurring expenses | $964 | | **Adjusted Funds from Operations (AFFO)** | **$9,028** | [Reconciliation of Net Loss to EBITDA, NOI, and Other Metrics](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20EBITDA,%20NOI,%20and%20Other%20Metrics) This section details the calculation of EBITDAre, Annualized Adjusted EBITDAre, and leverage ratios, including a Net Debt to Annualized Adjusted EBITDAre of 5.5x Q2 2025 Reconciliation to EBITDAre and Adjusted Cash NOI (in thousands) | Line Item | Amount | | :--- | :--- | | **Net loss** | **$(4,530)** | | Depreciation and amortization | $10,407 | | Interest expense | $4,647 | | **EBITDA** | **$10,718** | | Adjustments for real estate sales/impairments | $1,784 | | **EBITDAre** | **$12,502** | | Other adjustments | $1,722 | | **Adjusted EBITDAre** | **$14,224** | | **Adjusted Cash NOI** | **$15,909** | Leverage Ratios as of June 30, 2025 | Metric | Value | | :--- | :--- | | Gross Debt | $318,500,000 | | Net Debt | $310,137,000 | | Net Debt to Annualized EBITDAre | 6.2x | | Net Debt to Annualized Adjusted EBITDAre | 5.5x | - The Fixed Charge Coverage Ratio, calculated as Annualized Adjusted EBITDAre divided by Annualized Fixed Charges, was **3.3x** for the period[50](index=50&type=chunk)[51](index=51&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) The company will host a conference call and webcast on August 14, 2025, at 10:00 a.m. Central Time to discuss Q2 2025 earnings - The earnings conference call is scheduled for Thursday, August 14, 2025, at **10:00 a.m. Central Time**[15](index=15&type=chunk) [About FrontView REIT, Inc.](index=3&type=section&id=About%20FrontView%20REIT,%20Inc.) FrontView is an internally-managed net-lease REIT specializing in properties with direct frontage on high-traffic roads, with 319 properties across 37 U.S. states - FrontView is a net-lease REIT focused on acquiring and managing properties with prominent frontage and high visibility[17](index=17&type=chunk) - As of June 30, 2025, the portfolio consisted of **319** properties in **37** states with a diversified tenant base[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements, including 2025 guidance, subject to risks and uncertainties, with investors advised to review SEC filings - The report includes forward-looking statements, such as the 2025 guidance, which are not guarantees of future performance[18](index=18&type=chunk) - Investors are cautioned not to place undue reliance on these statements and are encouraged to review the 'Risk Factors' in the company's Form 10-K[19](index=19&type=chunk)

Core Insights - The article emphasizes the author's extensive experience in the financial sector, particularly in real estate, and highlights the importance of historical context in financial decision-making [1]. Group 1 - The author has over 10 years of experience in communications and has worked for various economic institutions [1]. - The author currently holds positions at the Center for Economic Studies Argentina XXI (CEEAXXI) and the International Foundation Bases [1]. - The author runs a podcast called Storiopolis, which focuses on the history of finance and aims to provide an unbiased narrative [1].

Core Insights - The article emphasizes the importance of investing in REITs, particularly those with "wide moat" advantages, highlighting a few favorite freestanding REITs [1]. Group 1: Company and Industry Overview - iREIT® provides in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers, with a tracker that covers over 250 tickers [1]. - The investing group iREIT®+HOYA Capital is led by experienced analysts with over 100 years of combined experience, including backgrounds in hedge funds, due diligence, and military service [2]. - Brad Thomas, a key figure in the real estate investing space, has over 30 years of experience and has been involved in over $1 billion in commercial real estate transactions [3].

Part I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financial statements show total assets grew to $860.8 million, net loss improved to $1.3 million, and operating cash flow was $8.1 million, with significant property investments [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $860.8 million, driven by real estate acquisitions, while liabilities rose to $345.2 million from increased debt, leading to a slight equity decrease to $515.6 million Condensed Consolidated Balance Sheets (Unaudited) | | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total assets** | **$860,835** | **$821,809** | | Real estate held for investment, net | $710,563 | $679,008 | | Cash and cash equivalents | $3,309 | $5,094 | | **Total liabilities** | **$345,244** | **$299,131** | | Debt, net | $310,214 | $266,538 | | **Total equity** | **$515,591** | **$522,678** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2025 net loss improved to $1.3 million from $3.4 million, driven by increased rental revenues and decreased interest expense Statements of Operations Highlights (in thousands) | | Three months ended March 31, 2025 (in thousands) | Three months ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Rental revenues** | **$16,243** | **$15,259** | | Total operating expenses | $13,020 | $11,568 | | Interest expense | $4,497 | $6,695 | | **Net loss** | **$(1,337)** | **$(3,369)** | | Net loss per share (Basic & Diluted) | $(0.06) | — | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity decreased to $515.6 million due to distributions and net loss, partially offset by stock-based compensation - Key changes in equity during Q1 2025 included a net loss of **$833 thousand** attributable to the company, distributions of **$3.8 million**, and stock-based compensation of **$615 thousand**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash was $8.1 million, investing used $47.3 million for real estate, and financing provided $37.4 million, resulting in a $1.8 million cash decrease Cash Flow Summary (in thousands) | | Three months ended March 31, 2025 (in thousands) | Three months ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,101 | $2,590 | | Net cash (used in) provided by investing activities | $(47,285) | $5,655 | | Net cash provided by (used in) financing activities | $37,399 | $(12,177) | | **Net decrease in cash and cash equivalents** | **$(1,785)** | **$(3,932)** | [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 status with 323 properties, Q1 acquisitions of $49.9 million, total debt of $312 million, and subsequent property transactions - The company is an internally-managed net-lease REIT that owned a portfolio of **323 properties** across **37 U.S. states** as of March 31, 2025[28](index=28&type=chunk) - During Q1 2025, the company acquired **17 properties** for an aggregate purchase price of **$49.9 million**[86](index=86&type=chunk) - As of March 31, 2025, total debt outstanding was **$312.0 million**, comprising a **$112.0 million** Revolving Credit Facility and a **$200.0 million** Term Loan, with a weighted average interest rate of **5.62%**[93](index=93&type=chunk)[95](index=95&type=chunk) - Subsequent to March 31, 2025, the company acquired approximately **$3.6 million** of additional rental property, sold one property for **$2.8 million**, and borrowed an additional **$6.5 million** on its Revolving Credit Facility[129](index=129&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses REIT strategy, Q1 revenue growth and reduced net loss, maintaining a 5.7x Net Debt to EBITDAre ratio, and outlining liquidity [Our Real Estate Investment Portfolio](index=28&type=section&id=Our%20Real%20Estate%20Investment%20Portfolio) The portfolio of 323 properties across 37 states is diversified by tenant, industry, and geography, with no single brand exceeding 3.1% of ABR - The portfolio is diversified with **329 tenants** operating **151 different brands**; no single tenant brand accounts for more than **3.1% of ABR**[138](index=138&type=chunk) - The top three tenant industries by ABR are **Restaurants (16.1%)**, **Financial Services (10.1%)**, and **Convenience Stores (8.5%)**[141](index=141&type=chunk)[142](index=142&type=chunk) - The properties are located in **37 U.S. states**, with no single state exceeding **14.2% of ABR** (Illinois)[143](index=143&type=chunk) [Our Leases](index=33&type=section&id=Our%20Leases) The portfolio was 96.3% leased with a 7.4-year average lease term, staggered expirations, and 97.9% of leases include fixed-rate rent escalations - The ABR weighted average remaining lease term was approximately **7.4 years**, with no more than **11.0%** of rental revenue expiring in any single year before 2030[150](index=150&type=chunk) - Approximately **97.9% of leases** (based on ABR) feature rent escalations, with **68.8%** having fixed percentage increases[155](index=155&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q1 2025 rental revenues increased by 6% to $16.2 million, and net loss improved to $1.3 million due to portfolio growth, eliminated management fees, and reduced interest expense Comparison of Results of Operations (in thousands) | | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change ($ in thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Rental revenues | $16,243 | $15,259 | $984 | 6% | | Total operating expenses | $13,020 | $11,568 | $1,452 | 13% | | Interest expense | $4,497 | $6,695 | $(2,198) | (33)% | | **Net loss** | **$(1,337)** | **$(3,369)** | **$2,032** | **(60)%** | - Property and asset management fees, which totaled **$1.5 million** in Q1 2024, were eliminated in Q1 2025 due to the Internalization of management in October 2024[168](index=168&type=chunk) - Interest expense decreased by **$2.2 million** primarily due to a lower debt balance of **$310.2 million** as of March 31, 2025, compared to **$427.8 million** a year prior[170](index=170&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity relies on operating cash and debt facilities; total debt was $312.0 million with $138.0 million available, targeting a net debt-to-EBITDAre ratio below 6.0x, and in compliance with covenants - The company's long-term goal is to target a net debt-to-annualized adjusted EBITDAre ratio of **6.0x** over time; the ratio was approximately **5.7x** as of March 31, 2025[178](index=178&type=chunk) - The company has a **$250.0 million** Revolving Credit Facility and a **$200.0 million** Term Loan, both maturing in October 2027[181](index=181&type=chunk)[186](index=186&type=chunk) - As of March 31, 2025, the company had **$138.0 million** of available capacity under its Revolving Credit Facility and was in compliance with all loan covenants[185](index=185&type=chunk)[188](index=188&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) Q1 2025 non-GAAP metrics improved, with FFO increasing to $6.4 million, AFFO to $8.2 million, and Net Debt to Annualized Adjusted EBITDAre at 5.7x Reconciliation of Net Loss to FFO and AFFO (in thousands) | | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net loss | $(1,337) | $(3,369) | | **FFO** | **$6,429** | **$4,159** | | **AFFO** | **$8,229** | **$4,989** | Leverage Ratios | | As of March 31, 2025 (in thousands) | As of March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Gross Debt | $312,000 | $431,049 | | Net Debt | $308,691 | $417,852 | | **Net Debt to Annualized Adjusted EBITDAre** | **5.7x** | **9.8x** | [Critical Accounting Policies and Estimates](index=45&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant estimates for purchase price allocation of acquired properties and impairment of long-lived assets, requiring judgment and future cash flow estimates - The allocation of purchase price for acquired properties requires significant estimates to determine the fair values of tangible assets (land, buildings) and intangible assets and liabilities (in-place leases, above/below-market leases)[216](index=216&type=chunk)[217](index=217&type=chunk) - The company reviews long-lived assets for impairment when events suggest the carrying value may not be recoverable, which involves subjective assumptions about future cash flows, occupancy, rental rates, and residual values[47](index=47&type=chunk)[220](index=220&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate risk from floating-rate debt, mitigated by interest rate swap agreements on the $200.0 million Term Loan, fixing the rate at 3.664% - The company is exposed to interest rate risk from its floating-rate Revolving Credit Facility and Term Loan[223](index=223&type=chunk) - On March 3, 2025, the company entered into interest rate swap agreements on its **$200.0 million** Term Loan to convert the floating-rate debt to a fixed rate of **3.664%**, reducing the impact of interest rate changes[194](index=194&type=chunk)[224](index=224&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the quarter ended March 31, 2025[225](index=225&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[226](index=226&type=chunk) Part II - OTHER INFORMATION [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - The company is not a party to any legal proceedings that would reasonably be expected to have a material adverse effect on its business[227](index=227&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred from the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2024[228](index=228&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - None[229](index=229&type=chunk) [Defaults Upon Senior Securities](index=49&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - None[230](index=230&type=chunk) [Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[231](index=231&type=chunk) [Other Information](index=49&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 trading arrangements during the period - No officers or directors adopted or terminated any contract, instruction, or written plan for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c)[232](index=232&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and SOX certifications by officers - The report includes certifications from the Co-Chief Executive Officers and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[234](index=234&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2025, the company reported an AFFO per share of $0.30, reflecting strong rent collections of approximately 99.5% and operational efficiencies [21][20] - The debt to annualized adjusted EBITDAre ratio finished the quarter at 5.7 times, indicating a prudent leverage approach [22] - The company reaffirmed its AFFO per share guidance for 2025 within the range of $1.20 to $1.26 [9][24] Business Line Data and Key Metrics Changes - The company acquired approximately $49.2 million in properties at an average cap rate of 7.9% during Q1 2025, with a weighted average lease term of about 12 years [4] - The company plans to acquire between $125 million and $145 million in properties during 2025, while also increasing property sales to between $20 million and $40 million [6][8] Market Data and Key Metrics Changes - The company has diversified its acquisitions across nine industries, 13 tenants, and 13 states, with investment-grade tenants accounting for approximately 29% of the annualized base rent from these acquisitions [4] - The occupancy rate at the end of Q1 2025 slightly decreased to over 96%, but is expected to return to normalized levels as replacements are filled [19] Company Strategy and Development Direction - The company is focusing on acquiring properties at historically elevated cap rates while managing its acquisition pace due to current share price and cost of capital challenges [6][9] - The strategy includes selling non-core assets and properties with shorter lease terms to replace them with longer-term leases that fit the acquisition model [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the current share price, which does not reflect the portfolio's value, and indicated a cautious approach to acquisitions until liquidity improves [30][33] - The management team is optimistic about the ability to quickly re-tenant properties and maximize value, demonstrating resilience in the portfolio [58] Other Important Information - The company plans to expand the detailed disclosure of its tenancies from the top 20 to the top 40 in future investor presentations [20] - The company has appointed new executives, including Randall Starr as CFO and Sean Fucamaro as Chief Accounting Officer, to strengthen its leadership team [10][11] Q&A Session Summary Question: Can you provide more details on the credit loss guidance of 2% to 3%? - Management confirmed that the guidance includes assumptions for seven vacant properties and additional vacancy expenses to reach the 2% to 3% range [27][28] Question: What is the company's strategy regarding equity issuance in the future? - Management indicated dissatisfaction with the current share price and emphasized maintaining liquidity while waiting for a potential rebound before considering equity issuance [30] Question: Have you seen benefits from properties having direct frontage? - Management affirmed that properties with direct frontage have facilitated quicker transactions and interest from buyers, contributing to efficient asset management [36][38] Question: What characteristics of properties are being targeted for recycling? - Management highlighted that shorter lease term assets are being considered for sale, with a focus on replacing them with longer-term, higher-cap rate assets [39][41] Question: How does the company plan to manage its cost of capital moving forward? - Management stated that if the current situation persists, they may explore M&A opportunities while continuing to make prudent decisions regarding the portfolio [59]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported an AFFO per share of $0.30, reflecting strong rent collections of approximately 99.5% and operational efficiencies [20][21] - The debt to annualized adjusted EBITDAre ratio finished the quarter at 5.7 times, indicating a prudent leverage approach [21] - The company reaffirmed its AFFO per share guidance for 2025 within the range of $1.20 to $1.26 [22][23] Business Line Data and Key Metrics Changes - The company acquired approximately $49.2 million in properties at an average cap rate of 7.9%, with a weighted average lease term of about 12 years [4] - The company plans to increase property sales during 2025 to between $20 million and $40 million, focusing on non-core assets and shorter lease term properties [7] Market Data and Key Metrics Changes - The company has a robust liquidity position with approximately $141 million available as of March 31, 2025 [6] - The company is targeting net real estate acquisitions totaling between $125 million and $145 million for 2025 [22] Company Strategy and Development Direction - The company aims to prudently allocate capital and has slowed acquisition activity due to current share price and cost of capital challenges [6] - The company is focused on acquiring assets at historically elevated cap rates while maintaining a diversified portfolio across various industries [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to resume acquisition activity at previous levels once the cost of capital improves [6] - The management team highlighted the resilience of the portfolio and the successful re-tenanting of properties as key strengths [56] Other Important Information - The company has appointed Randy Starr as CFO and Sean Fucamaro as Chief Accounting Officer, indicating a strong internal leadership transition [9][10] - The company plans to expand detailed disclosures of its tenancies from the top 20 to the top 40 in investor presentations [19] Q&A Session Summary Question: Clarification on credit loss guidance of 2% to 3% - Management confirmed that the guidance includes assumptions for seven vacant properties and a small additional vacancy expense [24][25] Question: Strategic thoughts on equity issuance in the future - Management expressed dissatisfaction with the current share price and indicated that liquidity would be maintained to allow for flexibility in future equity considerations [27][28] Question: Benefits from properties having direct frontage - Management noted that properties with direct frontage have shown quicker sales and interest, contributing to efficient asset management [32][34] Question: Characteristics of properties suitable for recycling - Management indicated that shorter lease term assets are prime candidates for sale, allowing for reinvestment into longer-term lease properties [35][36] Question: Normalized bad debt expectations - Management projected bad debt expenses to normalize between 1% to 2% and discussed recovery rates based on historical performance [50][52] Question: Plan B if equity access remains limited - Management stated that they would consider M&A options if the stock price does not improve, while continuing to make prudent decisions [56][57] Question: Investment spreads between recycling and new capital - Management confirmed that there is an expected spread of about 100 basis points between acquisition and disposition cap rates [60][61]