FrontView REIT, Inc. Q1 FY2026 earnings call

• Elevated management team, enhanced portfolio, deepened tenant and industry diversification, focused on attractive markets with replaceable rents. Reduced largest tenant exposure, top 10 tenant concentration, and restaurant exposure. Invested in technology, data, and processes. • Highlighted acquisition of Jiffy Lube in Baton Rouge, Louisiana, and a two-tenant building in urban Dallas. • Ended quarter at 99% occupancy, successfully re-tenanted three expiring locations with over 23% rent increase relative to prior tenants. • Enhanced revenue disclosure by separately presenting other operating income.

Adjusted cash revenue increased $707,000 sequentially to $16.3 million. Non-reimbursable property costs decreased $385,000 sequentially to $263,000. First quarter cash NOI benefited from termination income, rent from re-tenanted properties, and low property cost leakage. Ended the quarter at approximately 99% occupancy with four vacant assets. Acquired 10 properties for $34 million at an average cash cap rate of 7.5% and weighted average lease term of 9.4 years. Sold five properties for $10 million during the quarter at an average cash cap rate of approximately 6.9% for occupied assets with a weighted average lease term of eight years.

• Maintaining fully funded net investment target of $100 million. • Raising AFFO per share guidance range to $1.29 to $1.33, primarily driven by strong first quarter operating results and continued portfolio performance. • Net debt to annualized adjusted EBITDA RE improved to 5.3 times, LTV fell to 32.6%, fixed charge coverage ratio strong at 3.5 times. • Announced quarterly dividend of 21.5 cents per share, lowest payout ratio since IPO providing more free cash flow for growth.

Q: Anthony Paolone with JP Morgan Chase asked about development deals, order of magnitude, partners, structure.

A: Started with retail development experience, will start small with $1 - $3 million equity per transaction, expect 100 - 200 basis points spread, already completed several developments creating $10 million value.

Q: Follow-up on leasing, known move outs, 2027 outlook.

A: Watch list minimal, bad debt expected in 50 basis points, 10 lease expirations in 2026, working on vacancies like Smoky Bones and Walgreens.

Q: Eric Borden with BMO Capital Markets asked about recapture rates on lease expirations.

A: Since 2016, 51 tenants renewed, 45 to same tenant, 6 to new tenant, 106% rental rate recapture, 90% renewal rate, median rent per box over next five years of expirations $156,000.

Q: Follow-up on disposition spread over acquisitions repeatability.

A: Very repeatable, sold $86 million of property at 6.97 cap rate, sold non-best assets to optimize portfolio, expect cap rates in that realm.

Q: Ronald Camden with Morgan Stanley asked about acquisition pipeline, cap rates.

A: Strong deep pipeline, focus on good hot states like Texas, Florida, etc., cap rates expected Q2 around 7.3%, market has abundant capital, pipeline has Q3 set.

Q: Follow-up on guidance raise components.

A: Primarily driven by portfolio doing well, no bad debt issues, higher rents from portfolio performance.

Q: Yana Golan with Bank of America asked about guidance range cadence, preferred capital deployment.

A: NOI components drop in Q2 from Q1, AFFO per share growth expected to increase from there, $50 million convertible preferred equity capacity, will match fund acquisitions with equity and debt.

Q: John Matsoka with B. Reilly Securities asked about investment yields impact on traditional investments, rent roll-ups.

A: Development spreads create access to tenants like Chick-fil-A, rent roll-ups due to credit, lease expirations, proactive management.

Q: Daniel Guglielmo with Capital One Securities asked about development underwriting math change, transaction market drivers.

A: Development underwriting math changes with cap rate cycle, transaction market driven by unsophisticated sellers, 1031 buyers, no institutional competition.

Q: Matthew Erdner with Jones Trading asked about geographic concentrations, sectors to move out of.

A: Focus on top 100 MSAs, careful with gas, pharmacy exposure around 2%, sensitive to car wash, reducing exposure to older restaurant concepts