FrontView REIT, Inc.(FVR) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Performance Overview Management Commentary 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] - 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] - Strengthened the balance sheet, delivering strong AFFO per share and reducing the net debt to annualized adjusted EBITDAre ratio[2] - Announced the appointment of Pierre Revol as the new Chief Financial Officer following the end of the quarter[2] Financial and Operational Highlights 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] - Sold 9 properties, including 5 occupied ones for $11.6 million in gross proceeds at an average cap rate of 6.75%[5] - Maintained a strong balance sheet with Net Debt to Adjusted EBITDAre of 5.5x and total available liquidity of $139.9 million[5] - Paid a $0.215 dividend per share, representing a 7.2% yield and a 66% AFFO payout ratio[5] Investment and Portfolio Status 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 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 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] - The dividend is payable on or before October 15, 2025, to holders of record as of September 30, 2025[10] Full Year 2025 Guidance Revised Guidance Update 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] Financial Statements Condensed Consolidated Balance Sheets 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 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 Notice and Definitions of Non-GAAP Measures 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][34] - EBITDA and EBITDAre are used to provide supplemental information on operating performance exclusive of certain non-cash costs and differences in capital structure[22][42] - 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][46] Reconciliation of Net Loss to FFO and AFFO 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 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][51] Other Information Conference Call and Webcast 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] About FrontView REIT, Inc. 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] - As of June 30, 2025, the portfolio consisted of 319 properties in 37 states with a diversified tenant base[17] Forward-Looking Statements 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] - 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]