FrontView is an internally-managed net-lease REIT that is experienced in acquiring, owning and managing outparcel properties that are net leased to a diversified group of tenants. We have chosen the name “FrontView” to represent our differentiated “real estate first” investment approach focused on outparcel properties that are in prominent locations with direct frontage on high-traffic roads that are highly visible to consumers. We are a growing net-lease REIT and own a well-diversified portfolio of 278 outparcel properties with direct frontage across 31 U.S. states as of June 30, 2024. Our tenants include service-oriented businesses, such as restaurants, cellular stores, financial institutions, automotive stores and dealers, medical and dental providers, pharmacies, convenience and gas stores, car washes, home improvement stores, grocery stores, professional services as well as general retail tenants. Our Founder, Stephen Preston, who formed our company in 2016, previously served as a principal of NADG, an acquirer and developer of commercial, residential and net-lease real estate across the United States and Canada founded in 1977 and currently with approximately $5.0 billion of assets under management. We focus on investing primarily in well-located, net-leased outparcel properties that provide high visibility to consumers. We believe our tenants value the prominent location of our outparcel properties with frontage on high-traffic roads that are highly visible to consumers and drive demand for their core business operations. In addition, our tenants are able to retain operational control of their strategically important locations through long-term net leases. As of June 30, 2024, our portfolio comprised approximately 2.1 million rentable square feet of operational space and was highly diversified based on tenant, industry, and geography. As of June 30, 2024, our outparcel properties were located in 96 MSAs in 31 U.S. states, with no single state exceeding 12.1% of our ABR. Our portfolio’s occupancy rate was 98.9% as of June 30, 2024. Our properties were leased to 292 tenants that represented 137 different brands, with no single tenant brand accounting for more than 3.4% of our ABR. As of June 30, 2024, approximately 40.0% of our tenants had an investment-grade credit rating. As of June 30, 2024, approximately 96.6% of our leases (based on ABR) had contractual rent escalations, including, in some cases, pursuant to option terms, with an ABR weighted average minimum increase of approximately 1.7%. As of June 30, 2024, the ABR weighted average remaining term of our leases was approximately 7.0 years, excluding renewal options and approximately 96.6% of such leases (based on ABR) have renewal options. For the six months ended June 30, 2024, we had total rental revenues of $29.9 million, a net loss of $4.6 million and FFO of $7.6 million. From our inception in 2016 through June 30, 2024, our portfolio has grown to 278 properties. In order to benefit from increasing economies of scale as we continue to grow and as a part of our evolution toward entering the public markets, we have made the decision to internalize our management team and functions currently performed by our external manager and its affiliates, which will become effective upon completion of this offering. Upon closing of the Internalization, each member of our senior management team will become a full-time employee of FrontView. We intend to continue to execute our growth strategy, utilizing our long-standing, established relationships within the marketplace to source new acquisition opportunities. Following completion of this offering, we believe that our balance sheet, including cash on hand, expected borrowing capacity under our New Revolving Credit Facility and New Delayed Draw Term Loan, and overall leverage profile will enable us to continue to expand our portfolio. We were formed as a Maryland corporation on June 23, 2023. Our principal executive offices are located at 3131 McKinney Avenue, Suite L10, Dallas, TX.
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- Leasing of Single-Tenant Retail Properties: FrontView REIT provides commercial real estate space to individual retail businesses under long-term net lease agreements.
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Information for a publicly traded company specifically named "FrontView REIT" with the stock symbol "FVR" is not readily available in standard financial databases or public company filings. This suggests that "FrontView REIT (FVR)" may be a hypothetical company for the purpose of this exercise.
However, assuming "FrontView REIT (FVR)" were a real Real Estate Investment Trust (REIT), the identification of its major customers would depend entirely on the type of real estate it owns and operates. REITs typically generate revenue from leasing space to tenants, who can be either other companies or individuals.
If FrontView REIT (FVR) were a Commercial REIT (selling primarily to other companies):
If FVR specialized in commercial properties such as office buildings, retail centers, industrial warehouses, data centers, or healthcare facilities, its major customers would be corporate tenants that lease significant amounts of space. In such cases, major tenants are often disclosed in the REIT's annual reports (e.g., Form 10-K) due to their material impact on revenue.
While specific customer names cannot be provided without knowing the company's actual portfolio, examples of the types of companies that could be major customers for a commercial REIT include:
- Large multinational corporations leasing significant office space in central business districts or suburban campuses.
- Major retail chains (e.g., anchor department stores, grocery chains, big-box retailers) leasing space in shopping malls or strip centers.
- E-commerce giants, third-party logistics providers, or manufacturers leasing large industrial and distribution facilities.
- Healthcare systems, hospital operators, or large medical groups leasing medical office buildings, hospitals, or skilled nursing facilities.
- Cloud service providers, telecommunications companies, or technology firms leasing data center space.
Their stock symbols would be included if they were public companies, but as the specific tenants of a hypothetical FVR cannot be identified, specific symbols cannot be listed.
If FrontView REIT (FVR) were a Residential or Self-Storage REIT (selling primarily to individuals):
If FVR focused on residential properties (like apartments, single-family rentals) or self-storage facilities, its customers would primarily be individuals. Instead of named major corporate customers, the company would categorize its customer base based on the type of property and demographic served.
The categories of customers could include:
- Renters of Multi-Family Apartment Units: Individuals or families seeking housing in various markets, often prioritizing factors like location, amenities, price point, and community features.
- Tenants of Single-Family Rental Homes: Individuals or families preferring the space, privacy, and yard of a detached home without the long-term commitment or maintenance responsibilities of ownership.
- Self-Storage Users: Individuals and small businesses requiring additional space for personal belongings, seasonal items, vehicle storage, business inventory, or document archives.
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Stephen Preston, Chief Executive Officer and Chairman of the Board
Mr. Preston is a founder of FrontView REIT's predecessor in 2016, where he oversaw the acquisition of its property portfolio. Since 1999, he has also overseen all aspects of NADG's (the predecessor's parent company) operations in the Southcentral United States. Before joining NADG, Mr. Preston served as an Analyst at CIBC Oppenheimer in New York.
Pierre Revol, Chief Financial Officer
Mr. Revol was appointed Chief Financial Officer effective July 21, 2025, bringing over 20 years of experience in real estate and finance. He previously served as Senior Vice President of Capital Markets at CyrusOne, where he was instrumental in developing and executing the company's capital markets strategy and raised over $15 billion in financing. Prior to CyrusOne, Mr. Revol was Senior Vice President, Corporate Finance and Investor Relations at Spirit Realty Capital, Inc., where he was involved in significant corporate transactions, including the spin-off and $2.4 billion sale of Spirit Master Trust, the $9.3 billion merger of Realty Income and Spirit Realty, and over $10 billion in capital markets transactions. Earlier in his career, he was a REIT investor at Point72 for seven years and an investment banking analyst and associate at Goldman Sachs.
Drew Ireland, Chief Operating Officer
Mr. Ireland serves as the Chief Operating Officer. He served as Executive Director for FrontView's predecessor since 2016, where he was responsible for all facets of the acquisition process and asset management of the portfolio. Over 17 years at NADG, Mr. Ireland has been involved with the acquisition, development, operation, and disposition of more than 2.5 million square feet of retail and multifamily assets. Before joining NADG, he worked in the commercial lending division at Wells Fargo and was a development associate at Lincoln Property Company in Dallas.
Sean Fukumura, Chief Accounting Officer
Mr. Fukumura serves as Chief Accounting Officer. He joined FrontView's predecessor in 2018, serving in various accounting and tax leadership positions. From 2012 to 2018, Mr. Fukumura was a Corporate Controller with Venterra Realty, a multi-family real estate and investment company. He also worked in public accounting in the audit and assurance group of Ernst & Young from 2006 to 2010. Mr. Fukumura also served as Interim Chief Financial Officer from June 15, 2025, until Pierre Revol's appointment.
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The key risks to FrontView REIT (FVR) primarily revolve around its financial leverage and sensitivity to macroeconomic factors, followed by risks inherent in its portfolio management strategy.
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Interest Rate Fluctuations and Debt Burden: FrontView REIT faces significant risk from rising interest expenses due to increased borrowings to fund acquisitions. The company's reliance on external financing for growth exposes it to market conditions, and an unfavorable interest rate environment can weigh heavily on profitability. Despite efforts to mitigate this, such as fixing a portion of its term-loan, the overall debt profile and the impact of interest rate hikes on real estate stocks remain a substantial concern for investors.
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Exposure to General Economic Conditions and Tenant Health: A significant portion of FrontView REIT's portfolio is concentrated in sectors highly sensitive to economic cycles, including casual dining, quick-service restaurants, and automotive stores and dealers. This exposure means that general economic downturns, local real estate market declines, or weakening tenant financial health could directly impact the company's rental revenues, occupancy rates, and overall profitability.
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Risks Related to Acquisition, Disposition, and Portfolio Optimization Strategy: FrontView REIT's growth strategy involves active property investments and dispositions. While aimed at optimizing its portfolio and enhancing long-term value, these activities carry inherent risks, including the timing and uncertainty of completing transactions, potential impairment charges from asset sales, and short-term volatility in GAAP earnings due to non-recurring costs. Past significant one-time expenses, such as those related to its internalization in 2024, also highlight the financial impact of major strategic shifts.
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The clear emerging threat for FrontView REIT (FVR) is the ongoing structural shift towards remote and hybrid work models. This trend is fundamentally altering the demand for traditional office space, leading to decreased occupancy rates, pressure on rental income, and potential devaluation of office properties within REIT portfolios. This represents a significant and demonstrable disruption to the commercial real estate market.
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FrontView REIT (FVR) primarily focuses on acquiring, owning, and managing net-leased outparcel properties with direct frontage on high-traffic roads across the United States. These properties are leased to a diverse group of service-oriented businesses and general retail tenants, including medical and dental providers, restaurants, financial institutions, cellular stores, automotive services, convenience stores, pharmacies, and home improvement stores.
The addressable market for FrontView REIT's main products and services can be primarily identified within the U.S. net-lease market and the broader U.S. commercial real estate market.
The U.S. net-lease market experienced an increase of 13% in 2024, reaching an estimated $43.7 billion.
More broadly, the U.S. commercial real estate market size is estimated at $1.70 trillion in 2025 and is projected to reach $1.94 trillion by 2030, growing at a compound annual growth rate (CAGR) of 2.61% during that period. Another estimate places the U.S. commercial real estate market at $1.66 trillion in 2025. A Federal Reserve report in April 2024 indicated the commercial real estate sector stood at $22.5 trillion in the fourth quarter of 2023.
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Expected Drivers of Future Revenue Growth for FrontView REIT (FVR)
Over the next 2-3 years, FrontView REIT (FVR) is expected to drive revenue growth through several key initiatives:
- Strategic Acquisitions: FrontView REIT is focused on expanding its portfolio through strategic acquisitions of high-quality net-lease properties. The company acquired $103.4 million of properties in Q4 2024, with expectations for these and subsequent acquisitions to significantly contribute to growth rates in 2025. In Q2 2025, FrontView acquired five properties for $17.8 million at an average cash cap rate of 8.17%, and its 2025 acquisition guidance is set between $110 million and $130 million.
- Increased Occupancy and Successful Lease-Up of Vacant Properties: The company has demonstrated a commitment to improving portfolio occupancy and resolving previously troubled assets. In Q2 2025, FrontView reported an increase in portfolio occupancy to 97.8%, up from approximately 96% in the prior quarter. This improvement is partly due to the successful resolution and re-leasing of nine out of twelve previously disclosed troubled properties, directly contributing to higher annualized base rent.
- Built-in Lease Escalators: FrontView's revenue growth will also be supported by contractual rent increases embedded within its leases. Properties acquired in Q2 2025, for example, included average annual escalators of approximately 2.4%, providing a consistent and predictable stream of rent growth from the existing and newly acquired portfolio.
- Accretive Capital Recycling: Management anticipates further portfolio optimization through disciplined capital recycling. This strategy involves the disposition of lower-performing or vacant assets and the subsequent redeployment of capital into higher-yielding, income-producing properties. This process aims to enhance the overall quality and financial metrics of the portfolio, leading to improved revenue generation.
- Growth in Percentage Rents: An additional driver of revenue growth comes from increased percentage rents, which are components of some leases tied to the sales performance of tenants. These percentage rents contributed to the sequential revenue increase in Q2 2025, and continued improvement in tenant sales performance is expected to further boost this revenue stream.
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FrontView REIT (FVR) has made several capital allocation decisions over the last 3-5 years, primarily following its Initial Public Offering (IPO) in October 2024.
Share Issuance
- FrontView REIT completed its Initial Public Offering (IPO) on October 3, 2024, issuing 13.2 million shares of common stock at $19.00 per share, resulting in net proceeds of approximately $231.9 million after deducting underwriting discounts and expenses.
- The net proceeds from the IPO were primarily allocated to repay outstanding borrowings under the company's revolving credit facility and term loan credit facility.
- Shares outstanding significantly increased from 17.3 million at March 31, 2025, to 27.8 million at June 30, 2025.
Inbound Investments
- Principal Financial Group Inc. acquired a new stake in FrontView REIT during the third quarter of 2025, with an approximate value of $2,722,000.
Outbound Investments
- In 2024, FrontView REIT expanded its real estate portfolio through 29 acquisitions.
- During the second quarter of 2025, the company acquired 5 properties for $17.8 million, with an average capitalization rate of 8.2% and a weighted average lease term of 11.0 years.
- The company's investment strategy is focused on acquiring "outparcel properties that are in prominent locations with direct frontage on high-traffic roads" to enhance visibility for tenants.
Capital Expenditures
- Capital expenditures were reported as $49.9 million for the quarter ended March 31, 2025.
- The increase in the real estate portfolio through acquisitions in 2024 led to a rise in depreciation and amortization from $24.7 million in 2023 to $29.0 million in 2024, reflecting the growth in the company's property assets.
