FrontView REIT, Inc. Q4 FY2024 earnings call

• Acquisitions: Q4 2024: $103.4M acquired, 29 properties, avg cap rate 7.93%, WALT 11 years. Q1 2025: $37.9M closed, $18.2M under contract, expecting ~$50M in Q1 with cap rates above prior guidance. Balance sheet: $68.5M drawn on $250M revolver, $200M term loan locked in at 4.96%. - Portfolio: 307 properties, 98% occupancy, reduced tenant exposure, repurposing of vacant assets, reduced sit-down fast casual and pharmacy exposure. - Dividends: Q1 dividend declared at $0.215 per share. - Sales: Sold Freddy's in Q1 with a sales price of $2050, cap rate 6.9%.

In Q4 2024, FrontView REIT acquired $103.4 million of properties with 29 properties, an average price of $3.6 million, 27% investment grade percentage, 95% corporate tenants, and 5% franchisee. Q1 2025 saw $37.9 million of property closed at an average cap rate of 7.8% with an additional $18.2 million under contract. The portfolio as of December 31, 2024, consisted of 307 freestanding properties with an average remaining lease term over seven years, 98% occupancy, and 98% rent-to-collections on contractual rent. Tenant exposure was reduced from 3.4% of ABR to 2.9% of ABR.

• 2025 AFFO per share guidance: $1.20 - $1.26. - Acquisitions: $175M - $200M. - Dispositions: $5M - $20M. - Bad debt: 2% - 3% of cash ABR. - G&A: $8.9M - $9.5M. - Cap rates: Q1 acquisitions expected to close at 7.9% - 7.95%, above prior guidance.

• Market tightening: Potential cap rate tightening in second half if more capital opens. - Tenant issues: Watch list properties with short-term AFFO impact but expected recovery. - Share price sensitivity: Earnings sensitive to short-term SOFR swings until scale is achieved.

Q: Discuss acquisition pipeline, cap rates, industries leaned into A: Randy Starr mentioned they continue to acquire in the high sevens cap rate range, target strong credit, proven operators, essential services like medical, dental, veterinary, avoiding casual dining and pharmacy. Pipeline is robust with niche market sourcing.

Q: Tenant health, bad debt guidance A: Tim Dieffenbacher said bad debt guidance is 2% - 3% of cash ABR, majority from watch list properties, expect recovery of watch list properties by end of 2025 Q: Underwriting, G&A costs A: Tim Dieffenbacher stated rental increases consistent, G&A costs from public company operations, no significant headcount impact on G&A costs Q: Leverage, G&A costs A: Stephen Preston mentioned monitoring leverage, ideal 6x net debt to EBITDA, G&A costs from public operations, no major headcount related to G&A cost increase Q: Vacant boxes, lease negotiations A: Stephen Preston said in lease negotiations and sales for vacant boxes, expect quick recovery of lost rent from these properties