FrontView REIT, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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, 2026 · Filed Aug 6, 2026
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, 2026 Compared to the Three Months Ended June 30, 2025
| (unaudited, in thousands, except for percentages)For the three months ended June 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Revenues | ||||
| Rental revenues | $17,809 | $17,547 | $262 | 1% |
| Interest income on mortgage loans | 196 | 7 | 189 | > 100% |
| Total revenues | 18,005 | 17,554 | 451 | 3% |
| Operating expenses | ||||
| Depreciation and amortization | 8,229 | 9,466 | (1,237) | (13)% |
| Property operating expenses | 2,273 | 2,714 | (441) | (16)% |
| General and administrative expenses | 3,807 | 3,279 | 528 | 16% |
| Total operating expenses | 14,309 | 15,459 | (1,150) | (7)% |
| Other expenses (income) | ||||
| Interest expense | 4,191 | 4,647 | (456) | (10)% |
| Gain on sale of real estate | (2,262) | (1,194) | (1,068) | (89)% |
| Impairment loss | 156 | 2,978 | (2,822) | (95)% |
| Income taxes | 94 | 194 | (100) | (52)% |
| Total other expenses | 2,179 | 6,625 | (4,446) | (67)% |
| Net income (loss) | $1,517 | $(4,530) | $6,047 | > 100% |
Rental Revenues
| (unaudited, in thousands, except for percentages)For the three months ended June 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Revenues: | ||||
| Contractual rental amounts billed | $15,970 | $15,518 | $452 | 3% |
| Reimbursable income | 2,042 | 2,441 | (399) | (16)% |
| Percentage rent | 29 | 146 | (117) | (80)% |
| Other operating income | 203 | 97 | 106 | > 100% |
| Adjustment to recognize contractual rental amounts on a straight-line basis | 22 | 286 | (264) | (92)% |
| Above/below market lease amortization, net | (457) | (941) | 484 | 51% |
| Total rental revenues | $17,809 | $17,547 | $262 | 1% |
Total rental revenues for the three months ended June 30, 2026 increased $0.3 million compared to June 30, 2025, due to net acquisitions, organic escalators and re-tenanting of unoccupied properties.
The $0.4 million decrease in reimbursable income was attributable to lower property operating expenses, resulting in lower recoveries from tenants during the three months ended June 30, 2026.
Other operating income includes termination fees, late fees and, other miscellaneous income. The $0.1 million increase in other operating income was attributable to lease restructuring fees received for certain properties during the three months ended June 30, 2026.
Interest income on mortgage loans for the three months ended June 30, 2026 increased $0.2 million compared to June 30, 2025. The increase relates to seller financing in connection with the sale of certain properties entered into the later half of 2025.
Operating Expenses
Depreciation and amortization
The $1.2 million decrease in depreciation and amortization for the three months ended June 30, 2026 mainly related to a decrease in writeoffs of intangible lease assets related to dispositions compared to the same period in the prior year.
Property operating expenses
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 in many cases, certain repairs and capital costs.
The following table presents the non-reimbursable property operating expenses for the respective periods:
| (unaudited, in thousands)For the three months ended June 30, | 2026 | 2025 |
|---|---|---|
| Real estate taxes | $1,461 | $2,213 |
| Other property operating expenses | 812 | 501 |
| Property operating expenses | 2,273 | 2,714 |
| Reimbursable income | (2,042) | (2,441) |
| Non-reimbursable property expenses | $231 | $273 |
For the three months ended June 30, 2026 and 2025, we incurred $0.2 million and $0.3 million, respectively, in aggregate expenses that were not tenant obligations, which was mainly attributable to vacant properties.
General and administrative expenses
The $0.5 million increase in general and administrative expenses for the three months ended June 30, 2026 was primarily due to an increase of $0.9 million related to stock-based compensation, $0.2 million related to employee compensation and $0.1 million of increased professional fees incurred in the later part of 2025. For the three months ended June 30, 2025, we also incurred an additional $0.7 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, 2026 decreased $0.5 million compared to the three months ended June 30, 2025. The decrease was primarily due to a decrease in effective interest rate because of the hedge impacting the revolver. As of June 30, 2026 and 2025, the weighted average interest rate was 4.79% and 5.63%, respectively.
Gain on sale of real estate
Gain on sale of real estate for the three months ended June 30, 2026 increased by $1.1 million compared to the three months ended June 30, 2025. The increase was primarily attributable to the composition of properties sold. During the three months ended June 30, 2026, we sold 10 properties at a net gain of approximately $2.3 million, of which only one was vacant. During the three months ended June 30, 2025, we sold nine properties at a net gain of approximately $1.2 million, four of which were vacant.
Impairment loss
The following table presents the impairment for the respective periods:
| (unaudited, in thousands, except number of properties)For the three months ended June 30, | 2026 | 2025 |
|---|---|---|
| Number of properties | 2 | 11 |
| Carrying value prior to impairment loss | $1,934 | $25,062 |
| Fair value | 1,778 | 22,084 |
| Impairment loss | $156 | $2,978 |
During the three months ended June 30, 2026 and 2025, we recorded an impairment loss of $0.2 million relating to two properties and an impairment loss of $3.0 million relating to 11 properties, respectively. The amount of impairment fluctuates each period based on existing facts and circumstances. The decrease in impairment loss was primarily driven by lower levels of vacant property dispositions in the current quarter. During the three months ended June 30, 2025, four vacant properties were sold to facilitate the redeployment of capital into income-producing assets.
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
| (unaudited, in thousands, except for percentages)For the six months ended June 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Revenues | ||||
| Rental revenues | $35,785 | $33,790 | $1,995 | 6% |
| Interest income on mortgage loans | 405 | 7 | 398 | > 100% |
| Total revenues | 36,190 | 33,797 | 2,393 | 7% |
| Operating expenses | ||||
| Depreciation and amortization | 15,901 | 17,271 | (1,370) | (8)% |
| Property operating expenses | 4,603 | 5,090 | (487) | (10)% |
| General and administrative expenses | 7,458 | 6,118 | 1,340 | 22% |
| Total operating expenses | 27,962 | 28,479 | (517) | (2)% |
| Other expenses (income) | ||||
| Interest expense | 8,404 | 9,144 | (740) | (8)% |
| Gain on sale of real estate | (3,225) | (1,661) | (1,564) | (94)% |
| Impairment loss | 968 | 3,406 | (2,438) | (72)% |
| Income taxes | 164 | 296 | (132) | (45)% |
| Total other expenses | 6,311 | 11,185 | (4,874) | (44)% |
| Net income (loss) | $1,917 | $(5,867) | $7,784 | > 100% |
Rental Revenues
| (unaudited, in thousands, except for percentages)For the six months ended June 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Rental revenues: | ||||
| Contractual rental amounts billed | $31,740 | $30,538 | $1,202 | 4% |
| Reimbursable income | 4,109 | 4,100 | 9 | 0% |
| Percentage rent | 63 | 180 | (117) | (65)% |
| Other operating income | 495 | 216 | 279 | > 100% |
| Adjustment to recognize contractual rental amounts on a straight-line basis | 456 | 408 | 48 | 12% |
| Above/below market lease amortization, net | (1,078) | (1,652) | 574 | 35% |
| Total rental revenues | $35,785 | $33,790 | $1,995 | 6% |
The $2.0 million increase in total rental revenues for the six months ended June 30, 2026 was attributable to acquisitions, re-tenanting of vacant properties and a stronger performing portfolio.
The $0.3 million increase in other operating income was attributable to lease termination and restructuring fees received for certain properties during the six months ended June 30, 2026.
Interest income on mortgage loans receivable for the six months ended June 30, 2026 increased $0.4 million compared to June 30, 2025, due to an increase in mortgage loans receivable relating to seller financing in connection with the sale of certain properties entered into the later half of 2025.
Operating Expenses
Depreciation and amortization
The $1.4 million decrease in depreciation and amortization for the six months ended June 30, 2026 was primarily attributable to a decrease in writeoffs of intangible lease assets related to dispositions compared to the same period in the prior year.
Property operating expenses
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 in many cases, certain repairs and capital costs.
The following table presents the non-reimbursable property operating expenses for the respective periods:
| (unaudited, in thousands)For the six months ended June 30, | 2026 | 2025 |
|---|---|---|
| Real estate taxes | $3,124 | $3,704 |
| Other property operating expenses | 1,479 | 1,386 |
| Property operating expenses | 4,603 | 5,090 |
| Reimbursable income | (4,109) | (4,100) |
| Less: Non-recurring items | — | (189) |
| Non-reimbursable property expenses | $494 | $801 |
The $0.5 million decrease in property operating expenses for the six months ended June 30, 2026 was due to decreased vacancies compared to the six months ended June 30, 2025. For the six months ended June 30, 2026 and 2025, we incurred $0.5 million and $0.8 million, respectively, in aggregate expenses that were not tenant obligations, which was mainly attributable to vacant properties.
General and administrative expenses
The $1.3 million increase in general and administrative expenses for the six months ended June 30, 2026 is primarily attributable to stock-based compensation.
Other expenses and income
Interest expense
Interest expense for the six months ended June 30, 2026 decreased $0.7 million compared to the six months ended June 30, 2025. The decrease was primarily due to a decrease in interest rates in 2026. As of June 30, 2026 and 2025, the weighted average interest rate was 4.79% and 5.63%, respectively.
Gain on sale of real estate
Gain on sale of real estate for the six months ended June 30, 2026 increased by $1.6 million compared to the six months ended June 30, 2025, primarily due to a higher number of properties sold. During the six months ended June 30, 2026 we sold 15 properties at a net gain of approximately $3.2 million. During the six months ended June 30, 2025, we sold 10 properties and expropriated a portion of one property at a net gain of approximately $1.7 million.
Impairment loss
The following table presents the impairment for the respective periods:
| (unaudited, in thousands, except for percentages)For the six months ended June 30, | 2026 | 2025 |
|---|---|---|
| Number of properties | 4 | 11 |
| Carrying value prior to impairment loss | $7,165 | $31,566 |
| Fair value | 6,197 | 28,160 |
| Impairment loss | $968 | $3,406 |
During the six months ended June 30, 2026, we recorded an impairment loss of $1.0 million relating to four properties. During the six months ended June 30, 2025, we recorded an impairment loss of $3.4 million relating to 11 properties. The amount of impairment fluctuates each period based on existing facts and circumstances. The decrease in impairment loss was driven by a stronger performing portfolio, resulting in fewer properties being impaired during the six months ended June 30, 2026.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.