FrontView REIT Releases 2024 Results & 2025 Guidance
FrontView REIT, Inc. has announced its financial results for the fourth quarter and full year ending December 31, 2024. The company demonstrated strong performance in its inaugural quarter as a publicly traded entity, underscoring its capability to drive growth through strategic acquisitions.
Stephen Preston, Co-CEO, Co-President, and Chairman, remarked, “We are pleased with our first quarter as a public company, where we successfully acquired over $100 million in high-quality assets at above-market capitalization rates. Our unique sourcing strategy, which involves targeting opportunities outside of the highly competitive public real estate investment trust (REIT) sector, continues to provide a competitive advantage. Unlike many of our publicly traded peers facing heightened competition, we are leveraging elevated cap rates in our niche market, benefiting from the stability of interest rates in this space. This approach has allowed us to secure acquisitions for the first quarter of 2025 at attractive yields. As a result, we are initiating 2025 Adjusted Funds from Operations (AFFO) per share guidance of $1.20 to $1.26, reaffirming our commitment to delivering superior risk-adjusted returns for shareholders.”
Fourth Quarter 2024 Highlights
Investment Activity
During the fourth quarter, FrontView acquired 29 properties valued at $103.4 million, achieving a weighted average cash capitalization rate of 7.9% and a weighted average lease term of 11 years. These acquisitions were diversified across seven industries, 17 tenants, and 16 states, with 12 new tenants and four new states added to the company’s portfolio.
Following the end of the quarter and through the date of this announcement, FrontView acquired an additional 15 properties for $37.9 million at a weighted average cash capitalization rate of 7.8% and an average lease term of 12.5 years. These acquisitions spanned seven industries, 11 tenants, and 11 states, including five new tenants and two new states.
As of the date of this release, FrontView also has $18.2 million in properties under signed purchase and sale agreements (PSAs) with a weighted average cash capitalization rate of 8.2%. These assets are distributed across four industries, four tenants, and three states.
Additionally, the company successfully divested one property for gross proceeds of $2.1 million at a 6.9% cash capitalization rate, generating a $0.05 million gain over its original purchase price.
Operating Results
For the fourth quarter, FrontView reported a net loss of $21.5 million, or $0.78 per share. However, the company generated AFFO of $9.1 million, or $0.33 per share, and pro forma adjusted AFFO of $7.4 million, or $0.27 per pro forma share.
The company incurred $2.9 million in general and administrative expenses, including $0.6 million in stock-based compensation and $0.1 million in property and asset management fees incurred before the company’s initial public offering (IPO).
At the end of the quarter, FrontView’s portfolio was 98% leased, with seven out of 307 properties vacant and not subject to a lease agreement.
Capital Markets Activity
As of December 31, 2024, FrontView had total outstanding debt of $268.5 million and net debt of $263.4 million, resulting in a net debt-to-annualized adjusted EBITDAre ratio of 5.2x.
During the quarter, FrontView successfully completed its IPO, raising gross proceeds of $271.5 million through the sale of 14.3 million shares, which included the underwriters’ additional purchase of 1.09 million shares. The IPO proceeds were used to repay a CIBC revolving credit facility and term loan, with $82.3 million in cash reserved for future acquisitions and general corporate purposes. The company fully deployed these proceeds by the end of the quarter.
Concurrently with the IPO, FrontView secured a new $250 million revolving credit facility and a $200 million term loan. The term loan was drawn in full on December 30, 2024, with both loans carrying a five-year duration (inclusive of extension options) and an interest rate of adjusted SOFR plus 1.2%. These funds were used to repay $253 million in fixed-rate ABS notes that matured on December 30, 2024.
On March 4, 2025, FrontView executed $200 million in interest rate swaps, effectively fixing the term loan at an all-in rate of 4.96%.
Real Estate Portfolio
As of December 31, 2024, FrontView owned a diversified portfolio of 307 net-leased commercial properties, comprising approximately 2.4 million rentable square feet. Nearly all of the company’s properties were subject to leases, with only seven properties remaining vacant.
The portfolio featured 320 commercial tenants, with no single tenant accounting for more than 2.9% of the company’s annualized base rent (ABR). The weighted average lease term across the portfolio stood at 7.2 years.
Distributions
On March 18, 2025, FrontView’s board of directors declared a quarterly dividend of $0.215 per common share and OP unit for shareholders of record as of March 31, 2025. The dividend is scheduled for payment on or before April 15, 2025.
2025 Guidance
For the full-year 2025, FrontView expects to report AFFO in the range of $1.20 to $1.26 per diluted share. This guidance is based on the following key assumptions:
- Investment in real estate properties ranging between $175 million and $200 million.
- Dispositions of real estate properties between $5 million and $20 million.
- Bad debt expense of 2% to 3% of cash Net Operating Income (NOI).
- Non-reimbursed property and operating expenses between $2.0 million and $2.6 million.
- Total cash general and administrative expenses between $8.9 million and $9.5 million.
FrontView noted that its per-share results are sensitive to the timing and scale of real estate acquisitions, property sales, and capital markets activities.
Due to the complexity of forecasting certain financial items, FrontView does not provide guidance for net income under Generally Accepted Accounting Principles (GAAP) or a reconciliation of AFFO to net income. The company stated that unpredictable elements such as impairments of real estate assets, net gains or losses from asset sales, changes in credit loss allowances, and stock-based compensation expenses could materially impact GAAP results.
With a strong acquisition pipeline, a diversified portfolio, and a disciplined capital strategy, FrontView remains well-positioned to deliver consistent returns and drive shareholder value in 2025.
