Financial Performance - Rental revenues for the three months ended September 30, 2025, were $16,602,000, up from $14,533,000 in the same period of 2024, representing a year-over-year increase of about 14.2%[15] - Net income for the three months ended September 30, 2025, was $5,547,000, compared to a net loss of $3,339,000 in the same period of 2024, indicating a significant turnaround[15] - The company reported a net income per share of $0.19 for the three months ended September 30, 2025, compared to a net loss per share of $0.00 in the same period of 2024[15] - For the nine months ended September 30, 2025, the company reported a net loss of $320,000 compared to a net loss of $9.721 million for the same period in 2024[24] - For the three months ended September 30, 2025, total rental revenues were $16,602,000, an increase of 14.3% from $14,533,000 in the same period of 2024[93] - For the three months ended September 30, 2025, the net income attributable to common shareholders was $4.015 million, resulting in basic earnings per share of $0.19[124] Assets and Liabilities - Total assets increased to $846,790,000 as of September 30, 2025, compared to $821,809,000 on December 31, 2024, reflecting a growth of approximately 3.3%[13] - Total liabilities rose to $342,639,000 as of September 30, 2025, from $299,131,000 on December 31, 2024, marking an increase of approximately 14.5%[13] - Cash and cash equivalents increased to $19,595,000 as of September 30, 2025, compared to $5,094,000 on December 31, 2024, showing a substantial improvement in liquidity[13] - The company’s accumulated deficit increased to $19,285,000 as of September 30, 2025, from $6,834,000 on December 31, 2024[13] - The company’s equity decreased to $504,151,000 as of September 30, 2025, from $522,678,000 on December 31, 2024, representing a decline of about 3.5%[13] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $12,672,000, an increase from $11,347,000 in the same period of 2024, reflecting a rise of about 11.6%[15] - Interest expense for the three months ended September 30, 2025, was $4,564,000, down from $6,463,000 in the same period of 2024, indicating a decrease of approximately 29.3%[15] - The company incurred depreciation and amortization expenses of $24.622 million for the nine months ended September 30, 2025, compared to $21.415 million in 2024[24] - The amortization of in-place leases and leasing fees for the nine months ended September 30, 2025, was $13,367,000, compared to $12,632,000 for the same period in 2024[96] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $25.617 million, an increase from $15.272 million in 2024[24] - The company reported a net increase in cash and cash equivalents of $14.501 million during the period, ending with $19.595 million in cash[24] - The company made an acquisition of real estate held for investment totaling $83.797 million during the nine months ended September 30, 2025[24] - The Company sold 25 real estate properties for $57.6 million during the nine months ended September 30, 2025, resulting in net proceeds of $54.5 million and a gain on sale of $4.3 million[89] Shareholder Information - The company declared distributions of $0.215 per share and OP Unit, totaling $6.126 million for the nine months ended September 30, 2025[24] - The Company completed its IPO on October 3, 2024, issuing 13,200,000 shares at $19.00 per share, resulting in net proceeds of $233.9 million[112] - The Company declared total dividends of $0.645 per share during the nine months ended September 30, 2025, amounting to $18.406 million[115] Debt and Interest Rate Management - The carrying amount of the Company's debt as of September 30, 2025, was $308.5 million, with a fair value of $308.5 million[80] - The weighted average interest rate on the company's debt was 5.36% as of September 30, 2025, down from 5.65% as of December 31, 2024[100] - The company entered into interest rate swap agreements with a notional amount of $200 million, effectively converting a portion of floating-rate debt to a fixed rate of 3.664%[107] - The Company entered into five interest rate swap agreements with an aggregate notional amount of $100.0 million, converting floating-rate debt to a fixed rate of 3.22%[108] - The Company expects a net gain of $1.7 million related to interest rate swap agreements to be reclassified from AOCI to earnings over the next 12 months[111] Real Estate Portfolio - As of September 30, 2025, the company owned a diversified portfolio of 307 properties across 37 U.S. states[30] - As of September 30, 2025, the Company had a portfolio of 307 real estate properties with an average remaining lease term of approximately 7.2 years[86] - During the nine months ended September 30, 2025, the Company acquired 25 properties for an aggregate purchase price of $83.8 million, all leased at acquisition with an average remaining lease term of approximately 11.6 years[87] - The Company recorded a gain on the sale of real estate of $9.244 million for the nine months ended September 30, 2025[24] Compliance and Regulations - The Company intends to distribute 100% of its taxable income annually, thus not required to pay federal income tax on its taxable income[70] - The Company believes it was in compliance with all loan covenants as of September 30, 2025[104] - The Company is subject to a 4% non-deductible excise tax on any amount by which distributions are less than the required percentages of ordinary income, capital gain net income, and undistributed taxable income[69] Miscellaneous - The Company completed a series of REIT contribution transactions and internalization of management functions, establishing an UPREIT structure with a publicly-traded REIT[34] - The Company has issued restricted stock units under its 2024 Omnibus Equity and Incentive Plan, with compensation expense recognized over the vesting period[68] - The total stock-based compensation expense recognized was $0.8 million for the three months and $1.6 million for the nine months ended September 30, 2025[120] - The Company recorded amortization of assembled workforce of $0.1 million and $0.3 million for the three and nine months ended September 30, 2025, respectively[119]
FrontView REIT, Inc.(FVR) - 2025 Q3 - Quarterly Report