FrontView REIT, Inc.(FVR) - 2025 Q1 - Quarterly Results

Company Overview FrontView REIT, Inc. (NYSE: FVR) is an internally-managed net-lease REIT focused on acquiring and managing properties with high road frontage, with a portfolio of 323 properties across 37 U.S. states as of March 31, 2025 Company Profile FrontView REIT, Inc. (NYSE: FVR) is an internally-managed net-lease REIT focused on acquiring and managing properties with high road frontage, with a portfolio of 323 properties across 37 U.S. states as of March 31, 2025 - The company's investment approach is differentiated by its focus on properties in prominent locations with high visibility and direct frontage on high-traffic roads[15] - The tenant base is diversified and includes service-oriented businesses such as restaurants, financial institutions, automotive stores, medical providers, and general retail[15] Portfolio Snapshot as of March 31, 2025 | Metric | Value | | :--- | :--- | | Properties | 323 | | U.S. States | 37 | Financial Performance The company's Q1 2025 financial performance showed increased revenues and assets, a net loss, and positive non-GAAP metrics like FFO and AFFO, reflecting operational trends and balance sheet growth Quarterly Financial Summary For Q1 2025, FrontView REIT reported total revenues of $16.2M and a net loss of $1.3M, with total assets growing to $860.8M and AFFO at $8.2M or $0.30 per diluted share Q1 2025 Financial Highlights (vs. Q4 2024) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $16.2M | $15.5M | +4.7% | | Net Loss | ($1.3M) | ($21.5M) | N/A | | FFO | $6.4M | ($10.0M) | N/A | | AFFO | $8.2M | $9.1M | -9.6% | | FFO per share, diluted | $0.23 | ($0.36) | N/A | | AFFO per share, diluted | $0.30 | $0.33 | -9.1% | | Total Assets | $860.8M | $821.8M | +4.7% | - The company's net cash from operating activities was $8.1 million, a significant increase from $5.3 million in the prior quarter[18] Balance Sheet As of March 31, 2025, total assets increased to $860.8M driven by real estate investments, while total liabilities rose to $345.2M and total equity slightly decreased to $515.6M Key Balance Sheet Items (March 31, 2025) | Account | Amount (in thousands) | | :--- | :--- | | Real estate held for investment, net | $710,563 | | Total assets | $860,835 | | Debt, net | $310,214 | | Total liabilities | $345,244 | | Total equity | $515,591 | Income Statement Summary Q1 2025 rental revenues reached $16.2M, with total operating expenses at $13.0M, resulting in a net loss of $1.3M or ($0.06) per diluted share Q1 2025 Income Statement Highlights | Account | Amount (in thousands) | | :--- | :--- | | Rental revenues | $16,243 | | Total operating expenses | $13,020 | | Interest expense | $4,497 | | Net loss | ($1,337) | | Net loss per share, diluted | ($0.06) | Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) For Q1 2025, FFO recovered to $6.4M ($0.23 per share) from a negative Q4 2024, while AFFO was $8.2M ($0.30 per share) FFO and AFFO Reconciliation (Q1 2025) | Metric | Amount (in thousands) | Per Diluted Share | | :--- | :--- | :--- | | Net loss | ($1,337) | ($0.06) | | Depreciation & Amortization | $7,805 | - | | FFO | $6,429 | $0.23 | | Adjustments (Straight-line rent, etc.) | $1,800 | - | | AFFO | $8,229 | $0.30 | Lease Revenues Detail Q1 2025 total rental revenues of $16.2M were primarily driven by $16.7M in contractual rental amounts, adjusted for lease amortization and straight-line rent recognition Breakdown of Rental Revenues (Q1 2025) | Component | Amount (in thousands) | | :--- | :--- | | Contractual rental amounts billed | $16,679 | | Straight-line rent adjustment | $122 | | Above/below market lease amortization, net | ($711) | | Other income & variable rent | $153 | | Total rental revenues | $16,243 | Capitalization and Debt Profile The company's capital structure as of March 31, 2025, demonstrates a balanced mix of debt and equity, with key leverage ratios indicating compliance with financial covenants and a stable debt maturity profile Capital Structure As of March 31, 2025, FrontView's total capitalization was $667.9M, with debt at 46.7% and equity at 53.3%, resulting in an enterprise value of $664.5M Capital Structure as of March 31, 2025 | Component | Amount (in thousands) | % of Total Capitalization | | :--- | :--- | :--- | | Implied Equity Market Capitalization | $355,856 | 53.3% | | Total Debt | $312,000 | 46.7% | | Total Capitalization | $667,856 | 100.0% | | Enterprise Value | $664,547 | - | Debt Outstanding & Equity Rollforward Gross debt increased to $312.0M as of March 31, 2025, primarily from increased Revolving Credit Facility borrowings, with both Term Loan and Revolver maturing in October 2027 Debt Outstanding (March 31, 2025) | Facility | Outstanding Balance | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | | Term Loan | $200,000,000 | Adjusted SOFR + 1.20% | Oct 3, 2027 | | Revolving Credit Facility | $112,000,000 | Adjusted SOFR + 1.20% | Oct 3, 2027 | | Gross Debt | $312,000,000 | | | - Both the Term Loan and Revolving Credit Facility have two 12-month extension options available[29] EBITDA, EBITDAre, and Other Non-GAAP Operating Measures Q1 2025 EBITDAre was $11.7M, with Adjusted EBITDAre at $13.5M, leading to an Annualized Adjusted EBITDAre of $53.8M EBITDAre Reconciliation (Q1 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Net loss | ($1,337) | | EBITDA | $11,778 | | EBITDAre | $11,739 | | Adjusted EBITDAre | $13,458 | | Annualized adjusted EBITDAre | $53,832 | Net Debt Metrics & Covenants Net Debt was $308.7M at Q1 2025, with Net Debt to Annualized Adjusted EBITDAre at 5.7x, and the company confirmed compliance with all financial covenants Key Leverage Ratios (March 31, 2025) | Metric | Value | | :--- | :--- | | Net Debt | $308.7M | | Net Debt to Annualized EBITDAre | 6.6x | | Net Debt to Annualized Adjusted EBITDAre | 5.7x | - The company is in compliance with all key debt covenants, including a Total Leverage Ratio of 38.0% against a required maximum of 60%[36] Portfolio Analysis The company's portfolio exhibits strong diversification across tenants, industries, and geography, maintaining high occupancy and a well-staggered lease expiration schedule to mitigate rollover risk Dispositions & Portfolio at a Glance: Key Metrics Q1 2025 saw one property disposition for $2.05M, with the portfolio reaching 323 properties, 96.3% occupancy, a 7.4-year weighted average lease term, and $62.1M in annualized base rent Portfolio Key Metrics (March 31, 2025) | Metric | Value | | :--- | :--- | | Properties | 323 | | Occupancy | 96.3% | | Total Annualized Base Rent | $62.1M | | Weighted Average Remaining Lease Term | 7.4 Years | | Top 10 Tenant Concentration | 22.6% | - The company disposed of one occupied property during the first quarter for a gain of $50,000 over its original purchase price[38] Portfolio Diversification The portfolio exhibits strong diversification across tenants, industries, and geography, with no single tenant exceeding 3.1% of ABR and balanced exposure across key sectors and states Top 40 Tenants The tenant base is highly diversified, with Dollar Tree as the top tenant at 3.1% of ABR, and the top 10 tenants collectively representing 22.6% of ABR Top 5 Tenants by % of ABR | Tenant Brand | % of ABR | | :--- | :--- | | Dollar Tree | 3.1% | | Fast Pace Urgent Care | 2.8% | | Verizon | 2.7% | | Adams Auto Group | 2.3% | | Oak Street Health | 2.1% | Tenant Industry The portfolio is diversified across 15 industries, with leading concentrations in Medical and Dental Providers at 14.6% and Quick Service Restaurants at 14.3% of ABR Top 5 Industries by % of ABR | Industry | % of ABR | | :--- | :--- | | Medical and Dental Providers | 14.6% | | Quick Service Restaurants | 14.3% | | Casual Dining | 13.8% | | General Retail | 10.3% | | Financial Institutions | 9.4% | Geography The 323 properties are geographically dispersed across 37 U.S. states, with Illinois, Texas, and Georgia as the top three states by ABR concentration Top 5 States by % of ABR | State | % of ABR | | :--- | :--- | | IL | 14.2% | | TX | 7.9% | | GA | 7.1% | | NC | 5.4% | | OH | 5.1% | Lease Expirations The company maintains a well-staggered lease expiration schedule, with only 1.6% of ABR expiring in the remainder of 2025 and the largest single-year maturity at 11.0% in 2027 - The lease maturity profile is well-laddered, with no more than 11.0% of ABR expiring in any single year through 2031[53] Lease Expiration Schedule (% of ABR) | Year | % of ABR Expiring | | :--- | :--- | | 2025 | 1.6% | | 2026 | 5.1% | | 2027 | 11.0% | | 2028 | 7.4% | | 2029 | 10.3% | | Thereafter | 64.6% | Definitions and Explanations This section provides essential definitions for key financial metrics and non-GAAP measures, including FFO, AFFO, EBITDA, and EBITDAre, used to assess the company's operating performance and financial health Definitions This section defines key financial metrics and non-GAAP measures, including FFO, AFFO, EBITDA, and EBITDAre, used to assess the company's operating performance - FFO is calculated per Nareit standards, adjusting GAAP net income for items like real estate depreciation and gains/losses on property sales[56] - AFFO further adjusts FFO for certain non-cash or non-recurring items like straight-line rents, amortization of financing costs, and stock-based compensation to provide a clearer view of normalized operating performance[56] - EBITDAre is defined by Nareit as EBITDA excluding gains/losses from property sales and impairment charges. Adjusted EBITDAre includes further adjustments for investment/disposition timing and non-recurring expenses[55]