FrontView REIT, Inc.
For the period ended Sep 30, 2025. Filed Nov 13, 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.
Sep 30, 2025 · Filed Nov 13, 2025
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Results of Operations
The following discussion includes the results of our operations for the periods presented.
Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024
| Successor · Predecessor | ||||
|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the three months ended September 30, | 2025 | 2024 | $ | % |
| Revenues | ||||
| Rental revenues | $16,602 | $14,533 | $2,069 | 14% |
| Interest income on mortgage loans receivable | 156 | — | 156 | > 100% |
| Other income | 45 | 1 | 44 | > 100% |
| Total revenues | 16,803 | 14,534 | 2,269 | 16% |
| Operating expenses | ||||
| Depreciation and amortization | 7,351 | 7,119 | 232 | 3% |
| Property operating expenses | 2,209 | 2,003 | 206 | 10% |
| Property management fees | — | 494 | (494) | (100)% |
| Asset management fees | — | 1,034 | (1,034) | (100)% |
| General and administrative expenses | 3,112 | 697 | 2,415 | > 100% |
| Total operating expenses | 12,672 | 11,347 | 1,325 | 12% |
| Other expenses (income) | ||||
| Interest expense | 4,564 | 6,463 | (1,899) | (29)% |
| Gain on sale of real estate | (7,583) | — | (7,583) | > (100)% |
| Impairment loss | 1,551 | — | 1,551 | > 100% |
| Income taxes | 52 | 63 | (11) | (17)% |
| Total other expenses | (1,416) | 6,526 | (7,942) | > (100)% |
| Net income (loss) | $5,547 | $(3,339) | $8,886 | > 100% |
Rental Revenues
| Successor · Predecessor | ||||
|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the three months ended September 30, | 2025 | 2024 | $ | % |
| Revenues: | ||||
| Contractual rental amounts billed | $15,325 | $12,678 | $2,647 | 21% |
| Recovery income | 1,804 | 1,293 | 511 | 40% |
| Adjustment to recognize contractual rental amounts on a straight-line basis | 52 | 187 | (135) | (72)% |
| Variable rental amounts earned | 73 | 798 | (725) | (91)% |
| Above/below market lease amortization, net | (652) | (423) | (229) | (54)% |
| Total rental revenues | $16,602 | $14,533 | $2,069 | 14% |
Rental revenues for the three months ended September 30, 2025 increased $2.1 million compared to September 30, 2024, due to an increase in our portfolio from 278 properties as of September 30, 2024 to 307 properties as of September 30, 2025.
The $0.5 million increase in recovery income was mainly due to the growth in properties and property expense recovered from tenants during the three months ended September 30, 2025.
The $0.7 million decrease in variable rental amounts earned was attributable to lease termination fees received for certain properties during the three months ended September 30, 2024.
Interest income on mortgage loans receivable for the three months ended September 30, 2025 increased $0.2 million compared to September 30, 2024, due to an increase in mortgage loans receivable relating to seller financing in connection with the sale of certain properties.
Operating Expenses
Depreciation and amortization
The $0.2 million increase in depreciation and amortization for the three months ended September 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 nine months ended September 30, 2025.
Property operating expenses
The $0.2 million increase in property operating expenses for the three months ended September 30, 2025 was mainly due to the increase in the 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 September 30, 2025, we incurred $0.4 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 September 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 $2.4 million increase in general and administrative expenses for the three months ended September 30, 2025 is primarily due to the Internalization of management. This increase was mainly comprised of $1.3 million of employee compensation and $0.8 million for stock-based compensation incurred during the three months ended September 30, 2025. For the three months ended September 30, 2025, we also incurred $0.2 million of non-recurring expenses mainly attributable to executive leadership changes and structuring costs as well as $0.1 million of director fees.
Other expenses and income
Interest expense
Interest expense for the three months ended September 30, 2025 decreased $1.9 million compared to the three months ended September 30, 2024. The decrease is primarily due to the decrease in debt of $307.1 million as of September 30, 2025 compared to $418.3 million as of September 30, 2024 as well as an increase of $0.3 million in net cash received from derivative settlements.
Gain on sale of real estate
During the three months ended September 30, 2025, we sold 15 properties at a net gain of approximately $7.6 million. During the three months ended September 30, 2024, we did not sell any properties.
Impairment loss
The following table presents the impairment for the respective periods:
| Successor | Predecessor | |
|---|---|---|
| For the three months ended September 30, | ||
| (unaudited, in thousands, except number of properties) | 2025 | 2024 |
| Number of properties | 6 | — |
| Carrying value prior to impairment loss | $9,713 | $— |
| Fair value | 8,162 | — |
| Impairment loss | $1,551 | $— |
During the three months ended September 30, 2025, we recorded an impairment loss of $1.6 million relating to 6 properties. The amount of impairment fluctuates each period based on existing facts and circumstances. During the three months ended September 30, 2024, we did not record any impairment.
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
| Successor · Predecessor | ||||
|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the nine months ended September 30, | 2025 | 2024 | $ | % |
| Revenues | ||||
| Rental revenues | $50,206 | $44,160 | $6,046 | 14% |
| Interest income on mortgage loans receivable | 164 | — | 164 | > 100% |
| Other income | 230 | 243 | (13) | (5)% |
| Total revenues | 50,600 | 44,403 | 6,197 | 14% |
| Operating expenses | ||||
| Depreciation and amortization | 24,622 | 21,415 | 3,207 | 15% |
| Property operating expenses | 7,299 | 5,694 | 1,605 | 28% |
| Property management fees | — | 1,501 | (1,501) | (100)% |
| Asset management fees | — | 3,102 | (3,102) | (100)% |
| General and administrative expenses | 9,230 | 2,059 | 7,171 | > 100% |
| Total operating expenses | 41,151 | 33,771 | 7,380 | 22% |
| Other expenses (income) | ||||
| Interest expense | 13,708 | 19,755 | (6,047) | (31)% |
| Gain on sale of real estate | (9,244) | (337) | (8,907) | > (100)% |
| Impairment loss | 4,957 | 591 | 4,366 | > 100% |
| Income taxes | 348 | 344 | 4 | 1% |
| Total other expenses | 9,769 | 20,353 | (10,584) | (52)% |
| Net loss | $(320) | $(9,721) | $9,401 | 97% |
Rental Revenues
| Successor · Predecessor | ||||
|---|---|---|---|---|
| (unaudited, in thousands, except for percentages)For the nine months ended September 30, | 2025 | 2024 | $ | % |
| Revenues: | ||||
| Contractual rental amounts billed | $45,863 | $38,569 | $7,294 | 19% |
| Recovery income | 5,904 | 4,418 | 1,486 | 34% |
| Adjustment to recognize contractual rental amounts on a straight-line basis | 460 | 964 | (504) | (52)% |
| Variable rental amounts earned | 283 | 1,547 | (1,264) | (82)% |
| Above/below market lease amortization, net | (2,304) | (1,338) | (966) | (72)% |
| Total rental revenues | $50,206 | $44,160 | $6,046 | 14% |
The $6.0 million increase in rental revenues for the nine months ended September 30, 2025 was attributable to the growth of our real estate portfolio from 278 properties as of September 30, 2024 to 307 properties as of September 30, 2025.
The $1.5 million increase in recovery income was mainly due to the growth in properties and property expense recovered from tenants during the nine months ended September 30, 2025.
The $1.3 million decrease in variable rental amounts earned was attributable to lease termination fees received for certain properties during the nine months ended September 30, 2024.
Interest income on mortgage loans receivable for the nine months ended September 30, 2025 increased $0.2 million compared to September 30, 2024, due to an increase in mortgage loans receivable relating to seller financing in connection with the sale of certain properties.
Operating Expenses
Depreciation and amortization
The $3.2 million increase in depreciation and amortization for the nine months ended September 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 nine months ended September 30, 2025.
Property operating expenses
The $1.6 million increase in property operating expenses for the nine months ended September 30, 2025 was mainly due to the increase in the 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 nine months ended September 30, 2025, we incurred $1.2 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 nine months ended September 30, 2024 were $1.5 million and $3.1 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 $7.2 million increase in general and administrative expenses for the nine months ended September 30, 2025 is primarily due to the Internalization of management. This increase was mainly comprised of $3.9 million of employee compensation, and $1.6 million of stock-based compensation incurred during the nine months ended September 30, 2025. For the nine months ended September 30, 2025, there was also $1.5 million of non-recurring expenses mainly attributable to executive leadership changes and structuring costs and $0.2 million of director fees.
Other expenses and income
Interest expense
Interest expense for the nine months ended September 30, 2025 decreased $6.0 million compared to the nine months ended September 30, 2024. The decrease is primarily due to the decrease in debt of $307.1 million as of September 30, 2025 compared to $418.3 million as of September 30, 2024 as well as an increase of $0.8 million in net cash received from derivative settlements.
Gain on sale of real estate
During the nine months ended September 30, 2025 we sold 25 properties at a net gain of approximately $4.3 million. We received proceeds for the expropriation of a portion of two properties for a net gain of approximately $4.7 million. Additionally, we sold a partial interest of one property for a net gain of approximately $0.2 million. During the nine months ended September 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 nine months ended September 30, | ||
| (unaudited, in thousands, except number of properties) | 2025 | 2024 |
| Number of properties | 14 | 1 |
| Carrying value prior to impairment loss | $41,279 | $2,590 |
| Fair value | 36,322 | 1,999 |
| Impairment loss | $4,957 | $591 |
During the nine months ended September 30, 2025, we recorded an impairment loss of $5.0 million relating to 14 properties. During the nine months ended September 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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