FrontView REIT Inc

12. CONTINGENCIES

Litigation

From time to time, the Partnership is a party to various litigation matters incidental to the conduct of the Partnership’s business. While the resolution of such matters cannot be predicted with certainty, based on currently available information, the Partnership does not believe that the final outcome of any of these matters will have a material effect on its condensed consolidated balance sheets, condensed consolidated statements of operations or liquidity.

Environmental matters

As an owner of real estate property, the Partnership is subject to various U.S. federal, state and municipal laws related to environmental matters. These laws could hold the Partnership liable for the costs of removal and remediation of certain hazardous substances or wastes released or deposited on or in its properties or disposed of at other locations. The failure to remove or remediate such substances, if any, could adversely affect the Partnership’s ability to sell its real estate or to borrow using real estate as collateral and could potentially result in claims or other proceedings against the Partnership. The Partnership engages third party consultants to review the environmental condition of such property as part of its due diligence review prior to acquisition and is not aware of any material non-compliance with environmental laws at any of its properties.

Property and acquisition related

In the normal course of business, the Partnership enters into various types of commitments to purchase real estate properties or fund development projects. These commitments are generally subject to the Partnership’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Partnership is obligated to purchase the properties.

As of September 30, 2024 and December 31, 2023, the Partnership did not have any unrecorded material commitments for re-leasing costs, recurring capital expenditures, non-recurring building improvements, or similar types of costs.