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]
FrontView REIT, Inc.(FVR) - 2024 Q3 - Quarterly Report