FVR

• Portfolio Optimization & Value Creation

  • Management follows a proactive, disciplined value creation strategy focused on high-quality real estate in large, high-demographics markets: 80% of properties are in top 100 MSAs, 92% are near shopping centers, and the average five-mile population exceeds 172,000.
  • Recent retenanting and ground lease creation transactions generated $1.6 million in annual base rent (ABR) with an estimated 47% increase in market value over the company's original basis, driven by the underlying quality of the real estate. This includes converting underperforming assets to higher-credit tenants such as Chipotle, Raising Cane's, Amazon, and Panda Express.
  • Dispositions are used to improve portfolio quality, increase diversification, and recycle capital into higher-quality opportunities. Since IPO, the company has sold ~$110.5 million in properties (14.6% of original IPO assets), mostly tertiary locations and weaker concepts, at a median disposition cap rate of 6.88% below the company's current implied valuation. In Q2 2026, the company sold 9 properties at a weighted average 7.12% cash cap rate, all improving overall portfolio quality.

• Acquisition Activity

  • In Q2 2026, the company acquired 17 properties for $58.2 million at an average cash cap rate of 7.34% with a weighted average lease term (WALT) of 7.3 years. Target acquisitions are typically small (median purchase price $2.6 million, 5,700 square foot median building size), located in high-growth large MSAs with strong demographics.
  • Several shorter lease term acquisitions were purchased intentionally at below-market prices, with clear opportunities to create value via lease extensions, delivering development-like returns with no construction, entitlement, or lease-up risk. One example is a veterinarian clinic acquired with ~2 years remaining on lease at an 8.75% cap rate, where the company extended the term to 12 years with no major concessions.
  • The company's small typical transaction size allows it to avoid competition from large institutional investors for portfolio transactions and source off-market, attractively priced deals, as demonstrated by the Aspen Dental acquisition that fell out of contract with another buyer and closed quickly by Frontview at a higher cap rate.

• Balance Sheet & Capital Structure

  • The company accessed the equity market for the first time via its at-the-market (ATM) program in Q2 2026, issuing ~2.6 million shares at $19.50 per share for $50.5 million in gross proceeds. As of quarter end, 900,000 shares had settled for $17.3 million in net proceeds, with 1.7 million unsettled shares representing an additional $32.2 million in future net proceeds.
  • End-of-quarter liquidity exceeded $200 million, with a loan-to-value ratio of 33%, net debt to annualized adjusted EBITDA of 5.4x, and an adjusted net leverage ratio of 4.0x including the impact of unsettled equity. The AFFO payout ratio is below 65%, providing retained cash flow for future growth.
  • The cost of capital has improved meaningfully over the past year, with current investment spreads exceeding 100 basis points over the weighted average cost of capital.

• Operational Performance

  • No additions to the credit watch list quarter-over-quarter. Management maintains a 50 basis point bad debt allowance for 2026, with only ~20 basis points attributable to the Sleep Number bankruptcy; Sleep Number now represents less than 33 basis points of ABR, and the company has already converted, sold, or re-tenanted most of its former Sleep Number properties.
  • Historical retenanting has achieved rent recaptures above 110% of prior rent; 2026 year-to-date renewals already have a rent recapture rate above 115%, expected to be accretive for full year 2026.

• Management raised 2026 adjusted funds from operations (AFFO) per share guidance to a range of $1.32 to $1.34, up from the prior range of $1.29 to $1.33. This marks the third guidance increase since November 2025, representing ~7% year-over-year growth at the midpoint.
• Full year 2026 net investment guidance was raised to $120 million, implying $60 million in net investment in the second half of 2026.
• The guidance increase is driven by stronger-than-expected portfolio performance, accretive capital deployment, and continued discipline on overhead expenses.
• Management revised its full year 2026 forecast for property-level slippage to ~2% of adjusted cash revenue, an improvement of 75 basis points from the prior forecast. Recurring cash E&A is expected to remain at ~$2.5 million per quarter for the remainder of 2026.
• The available liquidity, unsettled forward equity, and remaining Series A convertible preferred capacity fully fund the company's current investment plan through 2027 at the existing net investment base.

Frontview is a net lease REIT with a single operating segment focused on acquiring, managing, and optimizing diversified net lease real estate. For Q2 2026: Base rent increased sequentially by $200,000 to $16 million, driven by $59.5 million in net investment in H1 2026, contractual rent increases, and rent commencement from the re-tenanted former Walgreens (now Amazon). Total adjusted cash revenue reached $16.4 million, including $200,000 in episodic other operating income from a lease restructuring. Non-reimbursable property costs declined sequentially by $32,000 to $231,000, equal to 1.4% of adjusted cash revenue. Adjusted cash NOI (including acquisition and disposition impacts) was $16.9 million, with a Q3 2026 run rate of ~$16.6 million quarterly cash NOI (excluding future rent from recently re-tenanted properties, which will add ~$225,000 in quarterly rent, a 23% increase over prior leases). Recurring general and administrative (E&A) cash expense was $2.5 million, consistent with prior quarters. Net lease portfolio occupancy ended the quarter above 99%, with only 2 vacant properties, in line with the historical 98-99%+ average. The portfolio has 33.6% of annual base rent (ABR) from investment-grade tenants, with the largest tenant representing only 2.6% of ABR and the top 10 tenants representing 20.2% of ABR.

• Forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from anticipated results, as detailed in the company's SEC filings.
• Weak underlying real estate quality or non-replaceable rents can lead to cash flow erosion from tenant credit events and lease expirations, requiring sales below original basis or retenanting at lower rates; management mitigates this risk via underwriting standards and active portfolio optimization.
• Increasing capital market interest in retail net lease could put downward pressure on cap rates, though this impact has been limited to date for Frontview's small transaction size segment.
• The company must draw the remaining capacity on its Series A convertible preferred by its one-year anniversary in November 2026 to retain access to that funding.

Q: With new equity access and capacity beyond the $120 million 2026 net investment guidance, how will management manage 2026 and 2027 acquisition volumes? / A: Management emphasized that acquisition volume itself is not a corporate goal; the priority remains only acquiring assets that meet the company's strict underwriting standards for real estate quality and value. Annualizing the first half of 2026 acquisition activity puts the gross run rate near $180 million, so the company can accommodate higher volumes if attractive opportunities arise. The core objective continues to be durable AFFO per share growth, not just increasing asset base size.

Q: Given improved capital access, what is the sustainable long-term annual acquisition capability for the platform? / A: Management noted that the team already completed $100 million of acquisitions in a single quarter (Q4 2024) and has the same capacity today. As of Q3 2026, the company already had three assets closed ($8.4 million, 7.49% cap rate), 17 assets under contract ($55 million, 7.4% cap rate), and strong early deal flow for Q4, indicating a robust current pipeline. The company's small transaction size avoids competition with large institutional buyers, creating a consistent supply of attractive opportunities.

Q: What is the company's capital ordering plan for remaining funding needs: will preferred capacity be used first before drawing on forward equity? / A: Management confirmed this is the plan: the remaining $50 million of Series A convertible preferred capacity must be drawn by the November 2026 one-year anniversary, so it will be used first this year. Unsettled forward equity will be saved for 2027 investment needs. Even after drawing all available funding, adjusted net leverage will only be 4x, giving the company ample additional capacity for future growth.

Q: For dispositions, what is the ongoing strategy going forward, and will the company continue selling higher cap rate non-core assets? / A: Management will continue the existing proactive portfolio optimization strategy, selling only non-core assets: weaker concepts, underperforming credit, and tertiary market real estate, not high-quality core properties. All dispositions are non-distressed, with strong buyer demand for the company's high-quality locations. Dispositions are sourced via brokered marketing to maximize buyer interest, plus additional unsolicited inbound offers from third parties, allowing the company to achieve attractive pricing.