UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 ☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-42301 FRONTVIEW REIT, INC. (Exact name of registrant as specified in its charter) Maryland 93-2133671 (State or other jurisdiction of incorporation or organization) 3131 McKinn ...

FrontView REIT (FVR) Q1 2025 Earnings Call May 15, 2025 11:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Frontview Q1 twenty twenty five Earnings Call. This call is being recorded on Thursday, 05/15/2025. I would now like to turn the conference over to Randy Starr. Randy, please go ahead. Speaker1 Good morning, everyone, and welcome to our first quarter twenty twenty five earnings call. I'm joined today by Stephen Preston, Chairman and Co CEO. Before I turn it over to Steve, pleas ...

EXHIBIT 99.2 Q1 2025 QUARTERLY SUPPLEMENTAL INFORMATION FrontView REIT, Inc. (NYSE: FVR) is an internally- managed net-lease REIT that acquires, owns and manages primarily properties with frontage that are net leased to a diversified group of tenants. investor.frontviewreit.com Table of Contents | Section | Page | | --- | --- | | About the Data | 3 | | Company Overview | 4 | | Quarterly Financial Summary | 5 | | Balance Sheet | 6 | | Income Statement Summary | 7 | | Funds From Operations (FFO) and Adjusted ...

Group 1 - Outparcel REIT FrontView (NYSE: FVR) has experienced a 30% decline since its IPO in October 2024, underperforming compared to the broader REIT index (VNQ) and the overall market [1] - The company is currently facing challenges related to its tenants [1]

Portfolio Overview - As of December 31, 2024, FrontView owned a diversified portfolio of 307 properties across 35 U.S. states, with a total rentable area of approximately 2.4 million square feet[18][20]. - The portfolio's occupancy rate was 97.7%, with 320 tenants representing 150 different brands, and no single tenant brand accounting for more than 2.9% of the annual base rent (ABR)[20][25]. - Approximately 33.1% of tenants had an investment-grade credit rating, and 97.3% of leases had contractual rent escalations[20]. - The ABR weighted average remaining term of leases was approximately 7.2 years, with 96.1% of leases having renewal options[20][36]. - No single state exceeded 13.2% of the company's ABR, with Illinois representing the highest at 13.2%[20][33]. - Approximately 40.0% of the company's annualized base rent (ABR) comes from properties in its top five states: Illinois (13.2%), Texas (8.1%), Georgia (7.6%), North Carolina (5.7%), and Ohio (5.4%)[96]. - As of December 31, 2024, approximately 67% of the company's tenants had a credit rating below investment-grade or were unrated, as a percentage of its ABR[99]. - The top tenant brands included Fast Pace Urgent Care and Verizon, each accounting for 2.9% and 2.7% of ABR, respectively[26]. - The top 20 tenant brands accounted for approximately 37.0% of the company's ABR, with the largest tenant, Fast Pace Urgent Care, representing about 2.9% of the ABR[103]. - As of December 31, 2024, tenants in the restaurant industry represented approximately 30.6% of the company's ABR, indicating a significant exposure to this sector[101]. Financial Performance - For the year ended December 31, 2024, total rental revenues were $59.9 million, resulting in a net loss of $31.2 million and funds from operations (FFO) of $2.0 million[20]. - The company recorded net losses of approximately $31.2 million and $1.5 million for the years ended December 31, 2024 and 2023, respectively[81]. - The company incurred approximately $1.7 million in expenses not reimbursed or paid by tenants for the year ended December 31, 2024[40]. - The company incurred approximately $1.7 million in non-reimbursable expenses for the year ended December 31, 2024, which could impact financial stability if significant future expenses arise[110]. - The company expects to maintain its status as an emerging growth company until it reaches total annual gross revenue of $1.235 billion or more[68]. - The company anticipates that fluctuations in financial results could materially and adversely affect its operations and investor expectations[78]. - The company may not achieve the total returns expected from future acquisitions due to increasing costs of capital and lower capitalization rates[82]. - The company may face challenges in meeting required principal and interest payments due to insufficient cash flow[150]. - The company may not be able to make expected distributions due to insufficient cash flow or restrictions from debt agreements[211]. Debt and Financing - The company has a principal balance of approximately $266.5 million in outstanding indebtedness, which may expose it to default risks[75]. - The company’s debt consists of borrowings under its Revolving Credit Facility and Term Loan with a variable interest rate of Adjusted SOFR plus 1.2% and a maturity date of October 2027[149]. - The company has a $250 million Revolving Credit Facility and a $200 million Term Loan that bear interest at floating rates based on SOFR plus an applicable margin[163]. - The company may incur mortgage debt on properties, which increases the risk of foreclosure and loss of those properties[159]. - Disruptions in financial markets could limit the company's ability to obtain debt financing on commercially reasonable terms, impacting its investment strategy[158]. - The company believes it was in compliance with all financial and operational covenants related to its debt obligations as of December 31, 2024[161]. REIT Status and Tax Implications - The company intends to elect to be taxed as a REIT, requiring annual distribution of at least 90% of its REIT taxable income[58]. - The company must distribute at least 90% of its REIT taxable income each year to avoid entity-level taxes, and failure to do so could result in a 4% nondeductible excise tax[154]. - If the company fails to qualify as a REIT, it may face significant tax liabilities that would reduce cash available for distributions to stockholders[190]. - The company must ensure that at least 75% or 95% of its gross income is derived from qualifying sources, such as rents from real property[191]. - The company is subject to a 100% excise tax on certain non-arm's-length transactions with its TRSs, which could impact financial performance[199]. - Compliance with REIT requirements may restrict effective hedging and could lead to increased costs or tax liabilities[204]. Risks and Challenges - The company faces significant risks related to tenant defaults and vacancies, which could materially affect its revenue[74]. - The company may experience difficulties in renewing leases or re-leasing properties, particularly for specialty properties[75]. - The company faces cybersecurity risks, including potential data breaches and operational disruptions, which could materially affect its business[112]. - The integration of artificial intelligence tools presents risks such as inaccuracy and data privacy concerns, which could adversely impact the company's operations[113]. - The company faces significant risks associated with repositioning or construction of real estate projects, which may adversely affect returns on capital due to inaccurate projections and increased costs[116]. - Economic conditions affecting discretionary consumer spending could lead to tenant bankruptcies, adversely impacting the company's financial results[134]. - A decline in economic conditions may result in decreased demand for properties, affecting the company's ability to maintain and gain tenants[134]. - Increased interest rates may decrease the value of the company's properties, negatively impacting its financial condition[137]. - The company may face increased interest costs due to rising market interest rates, which could adversely affect its stock price and overall financial performance[155]. - The company may face conflicts of interest between stockholders and limited partners in the OP, which could impede beneficial business decisions[182]. Operational and Management Aspects - The company employs 15 full-time employees, focusing on various essential corporate activities[48]. - The company completed the Internalization, acquiring affiliates of North American Realty Services LLLP (NARS) and onboarding its entire senior management team[173]. - The company may incur unforeseen costs and difficulties associated with being self-managed, which could materially affect its operations[174]. - The company has entered into indemnification agreements with directors and executive officers, potentially limiting stockholder rights against them[179]. - The company’s investment and financing policies can be changed by the board of directors without stockholder approval, potentially increasing leverage and risk of default[177]. Environmental and Regulatory Risks - The company is subject to various environmental laws and regulations, which may impose liability for hazardous substance releases[59]. - The company has obtained environmental insurance policies to mitigate potential environmental risks on certain properties[63]. - Environmental liabilities associated with properties may lead to substantial costs for investigation and remediation, impacting financial performance[126]. - The presence of hazardous substances on properties could adversely affect the company's ability to sell, lease, or improve those properties[127]. - The company may incur additional expenses related to asbestos-containing materials in its properties, which could have a material adverse effect[130]. - Compliance with various laws and regulations may require unanticipated expenditures that could reduce investment returns for shareholders[145].

FrontView REIT, Inc. (NYSE:FVR) Q4 2024 Results Conference Call March 20, 2025 11:00 AM ET Company Participants Tim Dieffenbacher - CFO Stephen Preston - Chairman, Co-CEO and Co-President Randy Starr - Co-CEO and Co-President Conference Call Participants Ronald Kamdem - Morgan Stanley John Kilichowski - Wells Fargo Daniel Guglielmo - Capital One Security Operator Good morning, ladies and gentlemen, and welcome to the FrontView REIT, Inc. Q4 2024 Earnings Conference Call. At this time, all lines are in a lis ...

Financial Performance - For Q4 2024, the company reported revenues of $16.9 million, an increase from $15.5 million in Q4 2023, representing a year-over-year growth of approximately 8.8%[12] - The net loss for Q4 2024 was $22.0 million, compared to a net loss of $21.5 million in the previous quarter, indicating a slight increase in losses[12] - Funds From Operations (FFO) for Q4 2024 were reported at $(9.7) million, while Adjusted Funds From Operations (AFFO) were $7.4 million, showing a decline in FFO but a positive AFFO[12] - The company declared a dividend of $6.1 million for Q4 2024, with a dividend per diluted share of $0.215[12] - The company reported a net (loss) income of $(22,009) thousand for the three months ended December 31, 2024, compared to $(21,488) thousand in the previous quarter[16] - EBITDA for the quarter was $(8,846,000), a decrease from $(10,025,000) in the previous quarter and significantly lower than $23,283,000 in the same quarter last year[23] Assets and Liabilities - Total assets as of December 31, 2024, were $821.8 million, up from $733.1 million in the previous quarter, reflecting a growth of approximately 12.1%[12] - The total liabilities decreased to $299.1 million from $448.4 million in the previous quarter, indicating a significant reduction in debt levels[12] - Cash and cash equivalents stood at $5.1 million as of December 31, 2024, down from $9.9 million in the previous quarter[12] - The company reported a net cash provided by operating activities of $5.3 million for Q4 2024, compared to $7.6 million in Q3 2024[12] - Total liabilities decreased to $299,131,000 in December 2024 from $471,320,000 in December 2023, a reduction of 36.5%[14] - The company reported a net debt of $263,406,000 as of December 31, 2024, down from $409,571,000 in the previous quarter[26] Equity and Shareholder Value - FrontView REIT's total equity (book value) increased to $522.7 million as of December 31, 2024, compared to $284.7 million in the previous quarter, reflecting a substantial increase in shareholder value[12] - Total equity rose to $522,678,000 in December 2024 from $197,071,000 in December 2023, a significant increase of 164.5%[14] - The implied equity market capitalization was $504,431 thousand, accounting for 65.3% of total capitalization[19] - The equity balance as of December 31, 2024, included 17,291 thousand shares of common stock and 10,532 thousand OP units, totaling 27,823 thousand[22] Property Portfolio - As of December 31, 2024, FrontView REIT owned a diversified portfolio of 307 properties across 35 U.S. states, with total real estate held for investment at cost amounting to $719.4 million[12] - The portfolio expanded to 307 properties, an increase from 278 properties in the previous quarter[33] - The company has a total of 2,401,000 square feet across its properties, with General Retail occupying 20.9% of this space[38] - The largest tenant industry is Casual Dining, contributing 15.4% to ABR with 44 properties[38] - The company has 41 properties in Medical and Dental Providers, contributing 14.1% to ABR[38] Rental Income and Occupancy - Rental revenues for the three months ended December 31, 2024, were $16,868,000, up 8.7% from $15,514,000 in the previous quarter[15] - The company’s total annualized base rent increased to $58.8 million as of December 31, 2024, up from $52.1 million in the previous quarter[33] - The occupancy rate decreased to 97.7% from 98.9% in the previous quarter[33] - Contractual rental amounts billed increased to $14,547 thousand for the three months ended December 31, 2024, compared to $13,194 thousand in the previous quarter, reflecting a 10.2% growth[17] Expenses and Depreciation - Operating expenses increased to $13,735,000 in December 2024 from $12,784,000 in the previous quarter, reflecting a rise of 7.4%[15] - Accumulated depreciation increased to $40,398,000 in December 2024 from $28,734,000 in December 2023, indicating a growth of 40.7%[14] - Interest expense for the three months ended December 31, 2024, was $4,517,000, up from $3,593,000 in the previous quarter, an increase of 25.7%[15] Future Outlook - Lease expirations indicate that 11.7% of ABR ($6,875,000) is set to expire in 2027, affecting 382 square feet[45] - Future lease expirations show a gradual increase, with 7.5% of ABR ($4,386,000) expiring thereafter[45] - The weighted average remaining lease term increased to 7.2 years from 6.7 years in the previous quarter[33]

Group 1 - Many real estate companies have been negatively affected by the Federal Reserve's rate hikes over the past few years, leading to a decline in real estate stock prices and making many REITs less favorable [1] - The article highlights a shift in investment strategy, focusing on stocks with strong competitive advantages and effective management teams, indicating a potential for better performance in the current market environment [1] Group 2 - The current market conditions suggest a need for portfolio revision, with an aim to hold between 10 to 15 stocks along with a few broad ETFs, reflecting a strategic approach to investment diversification [1]

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]

Portfolio and Properties - As of September 30, 2024, FrontView REIT owned a diversified portfolio of 278 outparcel properties across 31 U.S. states[6] - The company has 278 properties across 31 U.S. states, with a total rentable square footage of 2.1 million[22] - The largest tenant, Verizon, accounts for 3.4% of Annual Base Rent (ABR) with 8.5 properties[23] - The Quick Service Restaurants sector represents 17.4% of ABR, with 62.5 properties[25] - The company operates in 15 different industries, with the highest concentration in Casual Dining at 19.3% of ABR[25] - Untenanted properties account for 0.0% of the total ABR, with 17 properties[29] Financial Performance - Revenues for Q3 2024 were $14.534 million, a slight decrease from $15.259 million in Q2 2024[8] - Funds From Operations (FFO) for Q3 2024 were $5.350 million, with FFO per share at $0.20[8] - Adjusted Funds From Operations (AFFO) for Q3 2024 were $6.221 million, with AFFO per share at $0.23[8] - Net loss for Q3 2024 was $(1.764) million, translating to a net loss per share of $(0.07)[8] - The company reported a net loss of $(1,764) million for the three months ended September 30, 2024, compared to a net loss of $(3,339) million for the same period in the previous year[17] - EBITDA for the three months ended September 30, 2024, was $10,105,000, down from $10,729,000 in the prior year[17] - The annualized adjusted EBITDAre is projected at $41,376,000 for the three months ended September 30, 2024[18] Assets and Liabilities - Total assets increased to $814.305 million from $733.070 million in the previous quarter[9] - Total liabilities decreased to $280.399 million from $448.372 million in the previous quarter[8] - Total liabilities increased to $471,320 million as of September 30, 2024, from $456,902 million in the previous quarter[10] - Total stockholders' equity as of September 30, 2024, was $197,071 million, an increase from $192,082 million in the previous quarter[10] - Total debt amounts to $253,499,000, which is 32.4% of total capitalization[14] - The company has a net debt of $160,238,000, with a net debt to annualized adjusted EBITDAre ratio of 3.9[18] - The total leverage ratio is reported at 30.9%, well below the required maximum of 60%[19] Cash and Financing - Cash and cash equivalents increased to $93.261 million from $9.895 million in the previous quarter[9] - The company has a new delayed draw term loan of $200,000,000 maturing on October 3, 2027[15] - The new revolving credit facility stands at $53,499,000, also maturing on October 3, 2027[15] Rental and Lease Information - Total Annualized Base Rent increased to $52.1 million from $52.0 million, representing a 0.2% growth[22] - Occupancy rate remained stable at 98.9%[22] - Investment Grade tenants decreased to 38.0% from 40.4%[22] - Weighted Average Annual Rent Increases were 1.7%[22] - The top 10 tenant concentration is 23.3%, while the top 20 tenant concentration is 38.5%[22] - The weighted average remaining lease term is 6.7 years, down from 7.0 years[22] - Lease expirations for 2027 amount to $7,158,000, which is 13.7% of the total[29] - The highest lease expiration percentage occurs in 2032 at 10.1%, with a total of $5,283,000[29] Dispositions and Market Outlook - Five properties were disposed of during 2024, with total sale proceeds of $10,773,000 against a purchase price of $10,302,000[20] - The company anticipates continued growth in its portfolio and revenue streams, despite potential market risks[5] Definitions and Metrics - Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are non-GAAP measures widely accepted in the industry for comparing REIT performance[30] - Gross Debt is defined as total debt plus debt issuance costs and original issuance discount[30] - Net Debt is calculated as total debt less cash and cash equivalents and restricted cash[30] - Occupancy is measured as the number of properties under signed lease divided by the total number of properties in the portfolio[30] - The company emphasizes that EBITDA and EBITDAre are useful for investors as they provide insights into operating performance excluding certain non-cash costs[30]