FrontView REIT, Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Results of Operations
The following discussion includes the results of our operations for the periods presented.
Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024
| Successor · Predecessor | |||||||
|---|---|---|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the three months ended June 30, · 2025 · 2024 · $ · % | |||||||
| Revenues | |||||||
| Rental revenues | $17,467 | $14,474 | $2,993 | 21 | % | ||
| Other income | 87 | 136 | (49) | (36) | % | ||
| Total revenues | 17,554 | 14,610 | 2,944 | 20 | % | ||
| Operating expenses | |||||||
| Depreciation and amortization | 9,466 | 6,971 | 2,495 | 36 | % | ||
| Property operating expenses | 2,714 | 1,710 | 1,004 | 59 | % | ||
| Property management fees | — | 497 | (497) | (100) | % | ||
| Asset management fees | — | 1,034 | (1,034) | (100) | % | ||
| General and administrative expenses | 3,279 | 643 | 2,636 | > 100 | % | ||
| Total operating expenses | 15,459 | 10,855 | 4,604 | 42 | % | ||
| Other expenses (income) | |||||||
| Interest expense | 4,647 | 6,597 | (1,950) | (30) | % | ||
| (Gain)/ loss on sale of real estate | (1,194) | 51 | (1,245) | > (100) | % | ||
| Impairment loss | 2,978 | — | 2,978 | > 100 | % | ||
| Income taxes | 194 | 119 | 75 | 63 | % | ||
| Total other expenses | 6,625 | 6,767 | (142) | (2) | % | ||
| Net loss | $(4,530) | $(3,012) | $(1,518) | 50 | % | ||
Rental Revenues
| Successor · Predecessor | |||||||
|---|---|---|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the three months ended June 30, · 2025 · 2024 · $ · % | |||||||
| Revenues: | |||||||
| Contractual rental amounts billed | $15,520 | $12,980 | $2,540 | 20 | % | ||
| Recovery income | 2,439 | 1,218 | 1,221 | > 100 | % | ||
| Adjustment to recognize contractual rental amounts on a straight-line basis | 286 | 446 | (160) | (36) | % | ||
| Variable rental amounts earned | 163 | 306 | (143) | (47) | % | ||
| Above/below market lease amortization, net | (941) | (476) | (465) | (98) | % | ||
| Total rental revenues | $17,467 | $14,474 | $2,993 | 21 | % | ||
Total rental revenues for the three months ended June 30, 2025 increased $3.0 million compared to June 30, 2024, due to an increase in our portfolio from 278 properties as of June 30, 2024 to 319 properties as of June 30, 2025.
The $1.2 million increase in recovery income was mainly due to the growth in properties and property expense recovered from tenants during the three months ended June 30, 2025.
Operating Expenses
Depreciation and amortization
The $2.5 million increase in depreciation and amortization for the three months ended June 30, 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 June 30, 2025.
Property operating expenses
The $1.0 million increase in property operating expenses for the three months ended June 30, 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 June 30, 2025, we incurred $0.3 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 June 30, 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 $2.6 million increase in general and administrative expenses for the three months ended June 30, 2025 is primarily due to the Internalization of management. This increase was mainly comprised of $1.2 million of employee compensation, and $0.3 million for stock-based compensation incurred during the three months ended June 30, 2025. For the three months ended June 30, 2025, there was $1.1 million of non-recurring expenses mainly attributable to executive leadership changes and structuring costs.
Other expenses and income
Interest expense
Interest expense for the three months ended June 30, 2025 decreased $2.0 million compared to the three months ended June 30, 2024. The decrease is primarily due to the decrease in debt of $316.9 million as of June 30, 2025 compared to $427.4 million as of June 30, 2024.
Gain/loss on sale of real estate
During the three months ended June 30, 2025, we sold 9 properties at a net gain of approximately $1.2 million. During the three months ended June 30, 2024, we sold two properties at a net loss of less than $0.1 million.
Impairment loss
The following table presents the impairment for the respective periods:
| Successor | Predecessor | |
|---|---|---|
| For the three months ended June 30, | ||
| (unaudited, in thousands, except number of properties) | 2025 | 2024 |
| Number of properties | 11 | — |
| Carrying value prior to impairment loss | $25,062 | $— |
| Fair value | 22,084 | — |
| Impairment loss | $2,978 | $— |
During the three months ended June 30, 2025, we recorded an impairment loss of $3.0 million relating to 11 properties. During the three months ended June 30, 2024, there was no impairment loss for the quarter. The amount of impairment fluctuates each period based on existing facts and circumstances.
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
| Successor · Predecessor | ||||
|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the six months ended June 30, | 2025 | 2024 | $ | % |
| Revenues | ||||
| Rental revenues | $33,612 | $29,627 | $3,985 | 13 |
| Other income | 185 | 242 | (57) | (24) |
| Total revenues | 33,797 | 29,869 | 3,928 | 13 |
| Operating expenses | ||||
| Depreciation and amortization | 17,271 | 14,296 | 2,975 | 21 |
| Property operating expenses | 5,090 | 3,691 | 1,399 | 38 |
| Property management fees | — | 1,007 | (1,007) | (100) |
| Asset management fees | — | 2,068 | (2,068) | (100) |
| General and administrative expenses | 6,118 | 1,361 | 4,757 | > 100 |
| Total operating expenses | 28,479 | 22,423 | 6,056 | 27 |
| Other expenses (income) | ||||
| Interest expense | 9,144 | 13,292 | (4,148) | (31) |
| Gain on sale of real estate | (1,661) | (337) | (1,324) | > (100) |
| Impairment loss | 3,406 | 591 | 2,815 | > 100 |
| Income taxes | 296 | 281 | 15 | 5 |
| Total other expenses | 11,185 | 13,827 | (2,642) | (19) |
| Net loss | $(5,867) | $(6,381) | $514 | (8) |
Rental Revenues
| Successor · Predecessor | ||||
|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the six months ended June 30, | 2025 | 2024 | $ | % |
| Revenues: | ||||
| Contractual rental amounts billed | $30,538 | $25,891 | $4,647 | 18 |
| Recovery income | 4,100 | 3,125 | 975 | 31 |
| Adjustment to recognize contractual rental amounts on a straight-line basis | 408 | 777 | (369) | (47) |
| Variable rental amounts earned | 218 | 749 | (531) | (71) |
| Above/below market lease amortization, net | (1,652) | (915) | (737) | (81) |
| Total rental revenues | $33,612 | $29,627 | $3,985 | 13 |
The $4.0 million increase in total rental revenues for the six months ended June 30, 2025 was attributable to the growth of our real estate portfolio. During the six months ended June 30, 2024, the portfolio decreased by five properties that were sold. During the six months ended June 30, 2025, the portfolio increased by 22 acquisitions and offset by 10 properties that were sold.
The $1.0 million increase in recovery income was mainly due to the growth in properties and property expense recovered from tenants during the six months ended June 30, 2025.
Operating Expenses
Depreciation and amortization
The $3.0 million increase in depreciation and amortization for the six months ended June 30, 2025 was primarily due to the growth of our real estate portfolio through new acquisitions in the year ended December 31, 2024 and the six months ended June 30, 2025.
Property operating expenses
The $1.4 million increase in property operating expenses for the six months ended June 30, 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 six months ended June 30, 2025, we incurred $0.8 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 six months ended June 30, 2024 were $1.0 million and $2.1 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 $4.8 million increase in general and administrative expenses for the six months ended June 30, 2025 is primarily due to the Internalization of management. This increase was mainly comprised of $2.6 million of employee compensation, and $0.9 million for stock-based compensation incurred during the six months ended June 30, 2025. For the six months ended June 30, 2025, there was $1.3 million of non-recurring expenses mainly attributable to executive leadership changes and structuring costs.
Other expenses and income
Interest expense
Interest expense for the six months ended June 30, 2025 decreased $4.1 million compared to the six months ended June 30, 2024. The decrease is primarily due to the decrease in debt of $316.9 million as of June 30, 2025 compared to $427.4 million as of June 30, 2024.
Gain on sale of real estate
During the six months ended June 30, 2025 we sold 10 properties at a net gain of approximately $1.2 million. We received proceeds for an expropriation of a portion of another property for a net gain of approximately $0.5 million. During the six months ended June 30, 2024, we sold five properties at a net gain of approximately $0.3 million.
Impairment loss
The following table presents the impairment for the respective periods:
| Successor | Predecessor | |
|---|---|---|
| For the six months ended June 30, | ||
| (unaudited, in thousands, except number of properties) | 2025 | 2024 |
| Number of properties | 11 | 1 |
| Carrying value prior to impairment loss | $31,566 | $2,590 |
| Fair value | 28,160 | 1,999 |
| Impairment loss | $3,406 | $591 |
During the six months ended June 30, 2025, we recorded an impairment loss of $3.4 million relating to 12 properties. During the six months ended June 30, 2024, we recorded an impairment loss of $0.6 million relating to one property. The amount of impairment fluctuates each period based on existing facts and circumstances.
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