Financial Data and Key Metrics Changes - For Q1 2025, the company reported an AFFO per share of $0.30, reflecting strong rent collections of approximately 99.5% and operational efficiencies [20][21] - The debt to annualized adjusted EBITDAre ratio finished the quarter at 5.7 times, indicating a prudent leverage approach [21] - The company reaffirmed its AFFO per share guidance for 2025 within the range of $1.20 to $1.26 [22][23] Business Line Data and Key Metrics Changes - The company acquired approximately $49.2 million in properties at an average cap rate of 7.9%, with a weighted average lease term of about 12 years [4] - The company plans to increase property sales during 2025 to between $20 million and $40 million, focusing on non-core assets and shorter lease term properties [7] Market Data and Key Metrics Changes - The company has a robust liquidity position with approximately $141 million available as of March 31, 2025 [6] - The company is targeting net real estate acquisitions totaling between $125 million and $145 million for 2025 [22] Company Strategy and Development Direction - The company aims to prudently allocate capital and has slowed acquisition activity due to current share price and cost of capital challenges [6] - The company is focused on acquiring assets at historically elevated cap rates while maintaining a diversified portfolio across various industries [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to resume acquisition activity at previous levels once the cost of capital improves [6] - The management team highlighted the resilience of the portfolio and the successful re-tenanting of properties as key strengths [56] Other Important Information - The company has appointed Randy Starr as CFO and Sean Fucamaro as Chief Accounting Officer, indicating a strong internal leadership transition [9][10] - The company plans to expand detailed disclosures of its tenancies from the top 20 to the top 40 in investor presentations [19] Q&A Session Summary Question: Clarification on credit loss guidance of 2% to 3% - Management confirmed that the guidance includes assumptions for seven vacant properties and a small additional vacancy expense [24][25] Question: Strategic thoughts on equity issuance in the future - Management expressed dissatisfaction with the current share price and indicated that liquidity would be maintained to allow for flexibility in future equity considerations [27][28] Question: Benefits from properties having direct frontage - Management noted that properties with direct frontage have shown quicker sales and interest, contributing to efficient asset management [32][34] Question: Characteristics of properties suitable for recycling - Management indicated that shorter lease term assets are prime candidates for sale, allowing for reinvestment into longer-term lease properties [35][36] Question: Normalized bad debt expectations - Management projected bad debt expenses to normalize between 1% to 2% and discussed recovery rates based on historical performance [50][52] Question: Plan B if equity access remains limited - Management stated that they would consider M&A options if the stock price does not improve, while continuing to make prudent decisions [56][57] Question: Investment spreads between recycling and new capital - Management confirmed that there is an expected spread of about 100 basis points between acquisition and disposition cap rates [60][61]
FrontView REIT, Inc.(FVR) - 2025 Q1 - Earnings Call Transcript