FrontView REIT, Inc.

The following discussion includes the results of our operations for the periods presented.

Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Rental Revenues

The $1.0 million increase in total rental revenues for the three months ended March 31, 2025 was attributable to the growth of our real estate portfolio. During 2024, the portfolio increased by 29 acquisitions, offset by five properties sold. During the three months ended March 31, 2025, the portfolio further increased by 17 acquisitions, offset by one property sold.

The $0.4 million decrease in variable rental amounts earned was mainly due to lease termination fees received during the three months ended March 31, 2024.

Operating Expenses

Depreciation and amortization

The $0.5 million increase in depreciation and amortization for the three months ended March 31, 2025 was primarily due to the growth of our real estate portfolio through new acquisitions in the year ended December 31, 2024 and the three months ended March 31, 2025.

Property operating expenses

The $0.4 million increase in property operating expenses for the three months ended March 31, 2025 was mainly due to the increase in number of properties in our portfolio. Substantially all of our leases are net leases pursuant to which our tenants generally are obligated to pay customary expenses associated with the leased property such as real estate taxes, insurance, maintenance and repairs, and in many cases capital costs. For the three months ended March 31, 2025, we incurred $0.5 million in aggregate of expenses that were not tenant obligations, which includes non-recurring legal costs and property operating expenses incurred on vacant properties.

Property management and asset management fees

Property management and asset management fees for the three months ended March 31, 2024 were $0.5 million and $1.0 million, respectively. On October 2, 2024, the completion of the Internalization terminated the agreements for property management and asset management fees. Following the completion of the Internalization, we no longer pay property management and asset management fees.

General and administrative expenses

The $2.1 million increase in general and administrative expenses for the three months ended March 31, 2025 is primarily due to the Internalization of management. This increase was mainly comprised of $1.4 million of employee compensation, and $0.6 million for stock-based compensation incurred during the three months ended March 31, 2025.

Other expenses and income

Interest expense

Interest expense for the three months ended March 31, 2025 decreased $2.2 million compared to the three months ended March 31, 2024. The decrease is primarily due to the decrease in debt of $310.2 million as of March 31, 2025 compared to $427.8 million as of March 31, 2024.

Gain on sale of real estate

During the three months ended March 31, 2025, we sold one property and received proceeds for an expropriation of a portion of a property for approximately no net gain or loss and a net gain of approximately $0.5 million, respectively. During the three months ended March 31, 2024, we sold three properties at a net gain of approximately $0.4 million.

Impairment loss

The following table presents the impairment for the respective periods:

During the three months ended March 31, 2025, we recorded an impairment loss of $0.4 million relating to an asset held for sale. During the three months ended March 31, 2024, we recorded an impairment loss of $0.6 million relating to an asset held for sale. The amount of impairment fluctuates each period based on existing facts and circumstances.