FrontView REIT, Inc. Q4 FY2025 earnings call

• Steve Preston mentioned FrontView is operationally stronger, financially more resilient, and strategically better positioned since IPO. Portfolio refined, balance sheet conservative, secured capital for accretive growth. Highlighted acquisitions like 7 Brew in Jacksonville and DICK's House of Sports in Durham. Portfolio occupancy near 99%, handled tenant bankruptcies by re-leasing properties. Drew attention to dislocated NAV relative to portfolio and peer average implied cap rate. Pierre Revol highlighted enhancements to disclosures, including 100% of ABR by concept and key location data. Discussed quarterly results, G&A expenses, interest expense reduction, and liquidity.

In Q4, annualized base rent was $62.9 million, up $1.6 million from Q3. Run rate cash revenue was $16 million annualized. Annualized adjusted cash NOI was $61.3 million with a 96% margin on in-place portfolio. For the year, sold 36 properties for $78 million at an average cash cap rate of ~6.79% for occupied assets with weighted average lease term of 7.9 years. Acquired 32 properties in 2025 for ~$124.1 million at average cash cap rate of 7.74% and weighted average remaining lease term of ~12.4 years. Fourth quarter acquisitions included 7 properties for ~$41.3 million at average cap rate of 7.5% with weighted average remaining lease term of ~13.1 years. Occupancy approached 99% at quarter end with 4 vacant assets. Tenant base diversified, top 10 accounting for 24% of ABR, largest tenant 3.5% of ABR.

Revised AFFO per share guidance range for 2026 upwards to $1.27 to $1.32, representing 4% growth at midpoint and 6% at high end. Driven by portfolio performance, timing of acquisitions and dispositions, and mid-7 cap rate acquisitions. Expect acquisition cap rates for Q1 '26 to settle around 7.5% with volumes in line with guidance. Expect net debt to adjusted annualized EBITDAre to end 2026 below 5.5x.

Forward-looking statements subject to known and unknown risks and uncertainties that can cause actual results to differ materially. Risks related to factors in recent SEC filings. Dislocation of share price relative to NAV could impact valuation. Competition in acquisition market could affect ability to secure favorable deals. Tenant bankruptcies and related re-leasing challenges could impact portfolio performance.

Q: On AFFO guide, what gets to $1.32 vs $1.27?

A: Portfolio performance, timing of acquisitions and dispositions, and cap rate on acquisitions and dispositions.

Q: Given persistent discount to NAV, received outside interest?

A: Yes, see discount, but inbounds at this point.

Q: Prioritizing initial yield vs contractual bumps vs lease length?

A: Focus on location, land track, market rent, credit, term, and escalations, looking at totality of transactions.

Q: Acquisition pipeline, off market/special situations?

A: Market fluid, mid-7s cap rate expected, strong pipeline, competitive advantages in closing quickly and solving problems.

Q: Bad debt expectation, watch list?

A: Bad debt expected to be ~50 basis points in 2026, watch list minimal.

Q: Non-reimbursed property and operating expenses, cash G&A for year?

A: NOI margin expected to increase, cash G&A run rate.

Q: Potential for more preferred convertible capital raising?

A: Preferred equity successful, plan to deploy, may go back to traditional funding.

Q: Renewals and rent catch-up benefit?

A: Yes, historical high renewal rates, top Placer scores for renewing leases.

Q: Deployment pace, first quarter and projection?

A: First quarter ~$25 million net, second quarter close to $25 million net with possible deal bumps.