Financial Position - As of September 30, 2024, total assets amounted to $733,070,000, a decrease from $772,007,000 as of December 31, 2023, representing a decline of approximately 5.0%[16] - The company reported real estate held for investment at a cost of $640,264,000, down from $647,180,000, indicating a decrease of about 1.4%[16] - Cash and cash equivalents decreased to $9,895,000 from $17,129,000, reflecting a decline of approximately 42.5%[16] - Total liabilities decreased to $448,372,000 from $471,320,000, a reduction of about 4.9%[16] - Partners' capital as of September 30, 2024, was $180,974,000, down from $194,690,000 as of September 30, 2023[22] - The cash, cash equivalents, and restricted cash at the end of the period was $9,895,000, down from $15,173,000 at the end of the previous year[23] - The Partnership's total debt carrying amount was $419,466 as of September 30, 2024, with a fair value of $418,623[50] - The Partnership's net asset value (NAV) was $103,724, an increase from $103,616 at December 31, 2023, reflecting a growth of approximately 0.1%[83] IPO and Capital Raising - The company completed its IPO on October 2, 2024, selling 13,200,000 shares at $19.00 per share, generating net proceeds of $233,871,000 after underwriter fees[14] - An additional 1,090,846 shares were issued on October 23, 2024, from the underwriters' overallotment option, raising net proceeds of $19,327,064[14] - The Company sold 14,290,846 shares of Common Stock at an IPO price of $19.00 per share, raising approximately $271.5 million[98] - The company completed an initial public offering (IPO) with gross proceeds of $271,526,000, resulting in net proceeds of $251,198,000 after underwriting discounts and offering expenses[112] Revenue and Expenses - Rental revenues for the three months ended September 30, 2024, increased to $14,534,000, up 25.5% from $11,623,000 for the same period in 2023[18] - Total operating expenses for the three months ended September 30, 2024, decreased to $11,347,000, down 4.2% from $11,852,000 for the same period in 2023[18] - Interest expense for the three months ended September 30, 2024, rose to $6,463,000, an increase of 40.2% compared to $4,611,000 for the same period in 2023[18] - General and administrative expenses for the three months ended September 30, 2024, decreased significantly to $697,000, down 76.3% from $2,947,000 for the same period in 2023[18] - Rental revenues for the nine months ended September 30, 2024, were $43,690,000, a decrease of 1.6% from the historical predecessor[109] - Total operating expenses for the same period were $36,351,000, reflecting an increase of 7.4% compared to the historical predecessor[109] - Interest expense for the nine months ended September 30, 2024, was $13,007,000, reflecting a decrease of 34.3% from the previous period[109] Losses and Impairments - Net loss attributable to NADG NNN Property Fund LP for the three months ended September 30, 2024, was $(2,431,000), a decrease from $(3,561,000) for the same period in 2023[18] - Total operating loss for the nine months ended September 30, 2024, was $(9,721,000), compared to $(10,005,000) for the same period in 2023[18] - Net loss for the nine months ended September 30, 2024, was $(7,069,000), a slight improvement from $(7,254,000) for the same period in 2023[18] - The Partnership recorded an impairment loss of $591 on real estate held for investment with a remaining carrying value of $1,961 due to tenant vacancy during the nine months ended September 30, 2024[37] Real Estate Operations - The company is focused on investing in a geographically diversified portfolio of outparcel properties in prominent locations[9] - The Partnership owns 278 real estate properties, down from 284 properties as of December 31, 2023, with an average remaining lease term of approximately 7.0 years[55] - The Partnership sold five real estate properties for $10.773 million during the nine months ended September 30, 2024, resulting in net proceeds of $9.846 million after closing costs[56] - The estimated future minimum rents to be received under non-cancelable tenant leases total $400.490 million as of September 30, 2024[59] Debt and Financing - The weighted average interest rate for the Partnership's debt was 4.96% as of September 30, 2024[68] - The Partnership assumed a Term Loan of $17,000 with CIBC Bank USA, maturing on March 31, 2027, bearing interest at Term SOFR plus 1.80%[77] - Following the IPO, the Partnership repaid $150,000 thousand in outstanding borrowings and entered into a $200,000 thousand Delayed Draw Term Loan[92] - The anticipated repayment date for the Asset Backed Securities is December 2024, with a principal balance due if not paid in full[71] Internalization and Management - The company completed the internalization of external management functions, resulting in the issuance of 931,490 OP Units to NARS and affiliates, representing approximately 3.5% of the outstanding shares[96] - General and administrative expenses increased to $9,321,000, primarily due to additional costs associated with the internalization[109] - The preliminary purchase price allocation for the internalization transaction was valued at $17.7 million, which includes an intangible asset of $1.2 million[111] Future Outlook and Risks - The company expects to incur additional recurring general and administrative expenses as a result of becoming a public company, including employee compensation and benefits, board fees, and compliance-related expenses[117] - The company plans to manage interest rate risk through potential interest rate swaps or hedging arrangements[191]

Portfolio and Properties - As of September 30, 2024, FrontView REIT owned a diversified portfolio of 278 outparcel properties across 31 U.S. states[6] - The company has 278 properties across 31 U.S. states, with a total rentable square footage of 2.1 million[22] - The largest tenant, Verizon, accounts for 3.4% of Annual Base Rent (ABR) with 8.5 properties[23] - The Quick Service Restaurants sector represents 17.4% of ABR, with 62.5 properties[25] - The company operates in 15 different industries, with the highest concentration in Casual Dining at 19.3% of ABR[25] - Untenanted properties account for 0.0% of the total ABR, with 17 properties[29] Financial Performance - Revenues for Q3 2024 were $14.534 million, a slight decrease from $15.259 million in Q2 2024[8] - Funds From Operations (FFO) for Q3 2024 were $5.350 million, with FFO per share at $0.20[8] - Adjusted Funds From Operations (AFFO) for Q3 2024 were $6.221 million, with AFFO per share at $0.23[8] - Net loss for Q3 2024 was $(1.764) million, translating to a net loss per share of $(0.07)[8] - The company reported a net loss of $(1,764) million for the three months ended September 30, 2024, compared to a net loss of $(3,339) million for the same period in the previous year[17] - EBITDA for the three months ended September 30, 2024, was $10,105,000, down from $10,729,000 in the prior year[17] - The annualized adjusted EBITDAre is projected at $41,376,000 for the three months ended September 30, 2024[18] Assets and Liabilities - Total assets increased to $814.305 million from $733.070 million in the previous quarter[9] - Total liabilities decreased to $280.399 million from $448.372 million in the previous quarter[8] - Total liabilities increased to $471,320 million as of September 30, 2024, from $456,902 million in the previous quarter[10] - Total stockholders' equity as of September 30, 2024, was $197,071 million, an increase from $192,082 million in the previous quarter[10] - Total debt amounts to $253,499,000, which is 32.4% of total capitalization[14] - The company has a net debt of $160,238,000, with a net debt to annualized adjusted EBITDAre ratio of 3.9[18] - The total leverage ratio is reported at 30.9%, well below the required maximum of 60%[19] Cash and Financing - Cash and cash equivalents increased to $93.261 million from $9.895 million in the previous quarter[9] - The company has a new delayed draw term loan of $200,000,000 maturing on October 3, 2027[15] - The new revolving credit facility stands at $53,499,000, also maturing on October 3, 2027[15] Rental and Lease Information - Total Annualized Base Rent increased to $52.1 million from $52.0 million, representing a 0.2% growth[22] - Occupancy rate remained stable at 98.9%[22] - Investment Grade tenants decreased to 38.0% from 40.4%[22] - Weighted Average Annual Rent Increases were 1.7%[22] - The top 10 tenant concentration is 23.3%, while the top 20 tenant concentration is 38.5%[22] - The weighted average remaining lease term is 6.7 years, down from 7.0 years[22] - Lease expirations for 2027 amount to $7,158,000, which is 13.7% of the total[29] - The highest lease expiration percentage occurs in 2032 at 10.1%, with a total of $5,283,000[29] Dispositions and Market Outlook - Five properties were disposed of during 2024, with total sale proceeds of $10,773,000 against a purchase price of $10,302,000[20] - The company anticipates continued growth in its portfolio and revenue streams, despite potential market risks[5] Definitions and Metrics - Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are non-GAAP measures widely accepted in the industry for comparing REIT performance[30] - Gross Debt is defined as total debt plus debt issuance costs and original issuance discount[30] - Net Debt is calculated as total debt less cash and cash equivalents and restricted cash[30] - Occupancy is measured as the number of properties under signed lease divided by the total number of properties in the portfolio[30] - The company emphasizes that EBITDA and EBITDAre are useful for investors as they provide insights into operating performance excluding certain non-cash costs[30]