FrontView REIT (NYSE:FVR) executives said the company ended 2025 with a refined portfolio, a conservative balance sheet, and funding in place to pursue additional net acquisitions in 2026, while also raising adjusted funds from operations (AFFO) per-share guidance for the new year. Chairman and CEO Stephen Preston and CFO Pierre Revol discussed fourth-quarter and full-year results, recent acquisition and disposition activity, and the company’s approach to asset management and tenant credit issues.
Portfolio strategy and leasing outcomes
Preston reiterated that FrontView’s strategy is “real estate-first,” emphasizing “fungible, frontage-based assets” typically positioned in front of major retail nodes in top U.S. metropolitan areas. He said this positioning can lead to quicker outcomes when recycling or re-tenanting properties.
The company also highlighted work on its remaining Twin Peaks exposure. Preston said FrontView sold one Twin Peaks property during the quarter at a 5.8% cap rate and re-leased another to two tenants—Panda Express and Jagger’s—at combined rent of $265,000 versus approximately $138,000 previously paid by Twin Peaks. He said that represented a 92% increase in rent and about a three-times increase in value from the company’s original basis.
FrontView ended the quarter with occupancy “approaching 99%,” with four vacant assets. Management said two tenants were in bankruptcy at quarter end—Smokey Bones and Twin Peaks—each with one unit, representing a combined 0.56% of annual base rent (ABR). Preston said the company expects bad debt of about 50 basis points in 2026.
Acquisitions and dispositions: Q4 activity and 2026 expectations
In the fourth quarter, FrontView acquired seven properties for approximately $41.3 million at an average cap rate of 7.5%, with a weighted average remaining lease term (WALT) of about 13.1 years. For full-year 2025, the REIT acquired 32 properties for approximately $124.1 million at an average cash cap rate of 7.74% and a WALT of about 12.4 years. Since the October 2024 IPO, Preston said the company has added 61 properties and increased its initial asset base by nearly 30%.
Management also began a new format in which it plans to feature one highlighted quarterly acquisition. For the quarter, the company spotlighted a seven Brew drive-thru coffee property in Jacksonville, Florida. Preston said FrontView acquired the asset at roughly an 8% cap rate, above what it believes a new seven Brew “would typically trade at today.” He said the higher yield reflected liens tied to recent construction that limited the buyer pool; FrontView resolved the liens, cleared title, and closed the transaction. Preston described the lease as triple net with a 15-year term, annual escalators, and annual rent of $168,000.
The largest acquisition in Q4, management said, was a DICK’S House of Sport in Durham, North Carolina, adjacent to the Streets at Southpoint mall. Preston said FrontView put the asset under control earlier in 2025 while construction was underway and believes it created roughly 100 basis points of value relative to its purchase cap rate in the mid-7% range.
On dispositions, FrontView sold 11 properties for $20.4 million in Q4 at an average cash cap rate of about 6.82% for occupied assets and a WALT of 6.9 years. For 2025, it sold 36 properties for $78 million at an average cash cap rate of about 6.79% for occupied assets and a WALT of 7.9 years. Preston said the company expects to continue optimizing the portfolio in 2026, but that the pace of dispositions should decline materially after most of the repositioning occurred in 2025.
Management cited property sales during the quarter across concepts including Red Robin, Sonic, Twin Peaks, Adam’s Auto, a dark PNC, Bojangles, and FirstBank. Preston said these sales demonstrated liquidity and desirability for well-located real estate and pointed to what he described as a disconnect between the company’s share price and an implied cap rate of about 8.1% on existing NOI.
Disclosures, operating metrics, and tenant diversification
Revol said FrontView enhanced disclosure by providing “100% of ABR by concept” along with location metrics such as average daily traffic, PlaceAI performance, and population data. Management said the portfolio is located in retail nodes with average daily traffic above 24,000 cars, with 78% of properties in top 100 MSAs and an average five-mile population of 184,000. Revol added that the portfolio’s median PlaceAI score is 26.8, placing it in the top third of retail locations in the scoring framework described on the call.
Preston said the tenant base remains diversified across necessity and service-based industries, with 321 leases. He said the top 10 tenants account for 24% of ABR.
Financial results, balance sheet, and raised 2026 guidance
Revol said the company entered the quarter with annualized base rent of $62.9 million, reflecting net acquisitions of $21 million in Q4. In addition to base rent, FrontView generated $186,000 of interest income and $76,000 in percentage rent and other cash income in the quarter. At quarter end, Revol said run-rate cash revenue was $16 million quarterly, or $64 million annualized.
Annualized adjusted cash NOI was $61.3 million, representing a 96% margin on the in-place portfolio, according to Revol. He said the company expects the NOI cash margin to expand to 97% as it moves into 2026, driven by higher occupancy, insurance recoveries, and lower property costs.
G&A expense was $3.7 million in the quarter, including $534,000 of non-recurring charges and $763,000 of stock-based compensation. Excluding stock-based compensation and non-recurring items, Revol said cash G&A was $2.4 million, which he characterized as the approximate run rate for the year.
Interest expense declined $256,000 quarter-over-quarter to $4.3 million, which Revol attributed primarily to credit facility amendments that reduced spreads on the term loan and revolver by 15 basis points. He said the term loan borrowing rate declined to 4.81%, and savings from the spread adjustment exceeded $450,000 on outstanding debt.
FrontView ended the quarter with $115.5 million outstanding on its revolving credit facility, of which $100 million is hedged. Revol said the hedges result in an effective SOFR rate stepping down during 2026, with an average rate of 3.35% for the year on the hedged portion. Total available liquidity was $223 million, including cash, revolver capacity, and $75 million of undrawn preferred equity.
Leverage metrics provided on the call included 5.6x net debt to annualized adjusted EBITDARE and a 34.5% loan-to-value ratio. Revol said the company expects net debt to adjusted annualized EBITDARE to end 2026 below 5.5x.
Management also discussed its funding plan. Preston said net acquisitions for the year are funded through a $75 million convertible preferred investment from Maewyn, with the first $25 million draw completed in February. Revol said FrontView expects to draw the remaining $50 million throughout 2026 to fund a $100 million net acquisition target.
AFFO per share was $0.31 for Q4 and $1.25 for full-year 2025, which Revol said was at the high end of guidance. For 2026, the company raised its AFFO per-share guidance to a range of $1.27 to $1.32, which management described as 4% growth at the midpoint and 6% at the high end. Revol said the increase reflected faster-than-expected resolution of Tricolor and other non-credit issues, and continued execution of capital deployment with near-term acquisitions in the mid-7% cap rate range.
In the Q&A, Revol said the difference between the low and high ends of the 2026 AFFO range depends on portfolio performance and the timing and cap rate of acquisitions and dispositions. Preston and Revol also discussed how the company evaluates capital deployment given the gap between implied cap rate/NAV and AFFO yield, noting that 2026 funding is already secured and that management expects to de-lever during the year.
About FrontView REIT (NYSE:FVR)
FrontView REIT specializes in real estate investing.
