FrontView REIT Inc

9. CONVERTIBLE NON-CONTROLLING PREFERRED INTERESTS

On July 9, 2021, the Partnership admitted convertible preferred unit holders (the “Preferred Unit Holders”) to Operating LP. The Preferred Unit Holders are investment entities managed by an affiliate of the General Partners. The Preferred Unit Holders own Series A preferred units in the Operating LP and are entitled to receive a quarterly priority distribution equal to the greater of: (1)6.25% per annum; or (2) the current per annum yield on the Partnership’s Common Units based on the NAV of the Partnership. The Preferred Unit Holders have the option to redeem their Series A preferred units, subject to a 30-month hold period with the Partnership’s option to extend the hold period under certain circumstances and may exchange their Series A preferred units for Common Units of the Partnership upon a liquidation event such as an IPO. The Partnership has opted to extend the hold period in connection with the steps taken towards an IPO. As of September 30, 2024 and December 31, 2023, the Series A preferred units are valued at the redemption value equal to$10,400 per unit, the NAV of the Common Units. The Partnership records the accretion to redemption value as an adjustment to total partners’ capital.

As of September 30, 2024, the Partnership accrued distributions payable of$1,633 to the Preferred Unit Holders for the quarter ended September 30, 2024, which was included in “Accounts payable and accrued liabilities” on the accompanying condensed consolidated balance sheets. The distributions were paid subsequent to September 30, 2024, see Note 13 (e).