FrontView REIT, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 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.
Sep 30, 2026 · Filed Nov 5, 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 September 30, 2026 Compared to the Three Months Ended September 30, 2025
| (unaudited, in thousands, except for percentages)For the three months ended September 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Revenues | ||||
| Rental revenues | $18,400 | $16,647 | $1,753 | 11% |
| Interest income on mortgage loans | 228 | 156 | 72 | 46% |
| Total revenues | 18,628 | 16,803 | 1,825 | 11% |
| Operating expenses | ||||
| Depreciation and amortization | 8,428 | 7,351 | 1,077 | 15% |
| Property operating expenses | 2,130 | 2,209 | (79) | (4)% |
| General and administrative expenses | 4,211 | 3,112 | 1,099 | 35% |
| Total operating expenses | 14,769 | 12,672 | 2,097 | 17% |
| Other expenses (income) | ||||
| Interest expense | 4,429 | 4,564 | (135) | (3)% |
| Gain on sale of real estate | (3,681) | (7,583) | 3,902 | 51% |
| Impairment loss | — | 1,551 | (1,551) | (100)% |
| Loss from unconsolidated entity | 13 | — | 13 | > 100% |
| Income taxes | 109 | 52 | 57 | > 100% |
| Total other expenses (income) | 870 | (1,416) | 2,286 | > 100% |
| Net income | $2,989 | $5,547 | $(2,558) | (46)% |
Rental Revenues
| (unaudited, in thousands, except for percentages)For the three months ended September 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Rental revenues: | ||||
| Contractual rental amounts billed | $16,747 | $15,325 | $1,422 | 9% |
| Reimbursable income | 1,913 | 1,804 | 109 | 6% |
| Percentage rent | 131 | 63 | 68 | > 100% |
| Other operating income | 11 | 55 | (44) | (80)% |
| Adjustment to recognize contractual rental amounts on a straight-line basis | 332 | 52 | 280 | > 100% |
| Above/below market lease amortization, net | (734) | (652) | (82) | (13)% |
| Total rental revenues | $18,400 | $16,647 | $1,753 | 11% |
Total rental revenues for the three months ended September 30, 2026 increased $1.8 million compared to September 30, 2025, due to net acquisitions, organic escalators and re-tenanting of unoccupied properties.
The $0.3 million increase in adjustment to recognize contractual rental amounts on a straight-line basis was attributable to a decrease in write-offs related to dispositions during the three months ended September 30, 2026.
Interest income on mortgage loans for the three months ended September 30, 2026 increased $0.1 million compared to September 30, 2025. The increase relates to seller financing in connection with the sale of one property during the three months ended September 30, 2026 and full quarter interest earned for certain properties entered into during the three months ended September 30, 2025.
Operating Expenses
Depreciation and amortization
The $1.1 million increase in depreciation and amortization for the three months ended September 30, 2026 was attributable to net acquisitions resulting in higher depreciation expense and amortization expense.
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 September 30, | 2026 | 2025 |
|---|---|---|
| Real estate taxes | $1,587 | $1,653 |
| Other property operating expenses | 543 | 556 |
| Property operating expenses | 2,130 | 2,209 |
| Reimbursable income | (1,913) | (1,804) |
| Less: Non-recurring items | (1) | $— |
| Non-reimbursable property expenses | $216 | $405 |
For the three months ended September 30, 2026 and 2025, we incurred $0.2 million and $0.4 million, respectively, in aggregate expenses that were not tenant obligations, which was mainly attributable to vacant properties.
General and administrative expenses
The $1.1 million increase in general and administrative expenses for the three months ended September 30, 2026 was primarily due to an increase of $0.4 million related to stock-based compensation, $0.5 million related to employee compensation and $0.2 million related to non-recurring expenses mainly attributable to pursuit costs and professional fees.
Other expenses and income
Interest expense
Interest expense for the three months ended September 30, 2026 decreased $0.1 million compared to the three months ended September 30, 2025. The decrease was primarily due to a lower effective interest rate because of the hedge impacting the revolver, which was effective on September 12, 2025. As of September 30, 2026 and 2025, the weighted average interest rate was 5.03% and 5.36%, respectively.
Gain on sale of real estate
Gain on sale of real estate for the three months ended September 30, 2026 decreased by $3.9 million compared to the three months ended September 30, 2025. The decrease was primarily attributable to the lower number of properties sold. During the three months ended September 30, 2026, we sold five properties at a net gain of approximately $3.7 million. During the three months ended September 30, 2025, we sold 15 properties at a net gain of approximately $7.6 million.
Impairment loss
The following table presents the impairment for the respective periods:
| (unaudited, in thousands, except number of properties)For the three months ended September 30, | 2026 | 2025 |
|---|---|---|
| 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 six properties. The amount of impairment fluctuates each period based on existing facts and circumstances. The decrease in impairment loss was primarily driven by higher occupancy, which resulted in fewer vacant property dispositions to facilitate the redeployment of capital into income-producing assets.
Loss from unconsolidated entity
Loss from unconsolidated entity was less than $0.1 million for the three months ended September 30, 2026. It represents our share, under the HLBV method, of the results of a joint venture formed on August 10, 2026. Once the property is stabilized, it may be sold, or we may acquire the property or our partner’s interest.
Nine Months Ended September 30, 2026 Compared to the Nine Months Ended September 30, 2025
| (unaudited, in thousands, except for percentages)For the nine months ended September 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Revenues | ||||
| Rental revenues | $54,185 | $50,436 | $3,749 | 7% |
| Interest income on mortgage loans | 633 | 164 | 469 | > 100% |
| Total revenues | 54,818 | 50,600 | 4,218 | 8% |
| Operating expenses | ||||
| Depreciation and amortization | 24,329 | 24,622 | (293) | (1)% |
| Property operating expenses | 6,733 | 7,299 | (566) | (8)% |
| General and administrative expenses | 11,669 | 9,230 | 2,439 | 26% |
| Total operating expenses | 42,731 | 41,151 | 1,580 | 4% |
| Other expenses (income) | ||||
| Interest expense | 12,833 | 13,708 | (875) | (6)% |
| Gain on sale of real estate | (6,906) | (9,244) | 2,338 | 25% |
| Impairment loss | 968 | 4,957 | (3,989) | (80)% |
| Loss from unconsolidated entity | 13 | — | 13 | > 100% |
| Income taxes | 273 | 348 | (75) | (22)% |
| Total other expenses | 7,181 | 9,769 | (2,588) | (26)% |
| Net income (loss) | $4,906 | $(320) | $5,226 | > 100% |
Rental Revenues
| (unaudited, in thousands, except for percentages)For the nine months ended September 30, | 2026 | 2025 | $ | % |
|---|---|---|---|---|
| Rental revenues: | ||||
| Contractual rental amounts billed | $48,487 | $45,863 | $2,624 | 6% |
| Reimbursable income | 6,022 | 5,904 | 118 | 2% |
| Percentage rent | 194 | 242 | (48) | (20)% |
| Other operating income | 506 | 271 | 235 | 87% |
| Adjustment to recognize contractual rental amounts on a straight-line basis | 788 | 460 | 328 | 71% |
| Above/below market lease amortization, net | (1,812) | (2,304) | 492 | 21% |
| Total rental revenues | $54,185 | $50,436 | $3,749 | 7% |
The $3.7 million increase in total rental revenues for the nine months ended September 30, 2026 was attributable to net acquisitions, organic escalators and the re-tenanting of unoccupied properties.
The $0.2 million increase in other operating income was attributable to lease termination and restructuring fees received for certain properties during the nine months ended September 30, 2026.
The $0.3 million increase in adjustment to recognize contractual rental amounts on a straight-line basis was attributable to a decrease in write-offs related to dispositions during the nine months ended September 30, 2026.
Interest income on mortgage loans receivable for the nine months ended September 30, 2026 increased $0.5 million compared to September 30, 2025. The increase relates to seller financing in connection with the sale of certain properties entered into in the latter half of 2025.
Operating Expenses
Depreciation and amortization
The $0.3 million decrease in depreciation and amortization for the nine months ended September 30, 2026 was primarily attributable to a decrease in write-offs of intangible lease assets related to dispositions compared to the same period in the prior year partially offset by an increase in net acquisitions.
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 nine months ended September 30, | 2026 | 2025 |
|---|---|---|
| Real estate taxes | $4,711 | $5,357 |
| Other property operating expenses | 2,022 | 1,942 |
| Property operating expenses | 6,733 | 7,299 |
| Reimbursable income | (6,022) | (5,904) |
| Less: Non-recurring items | (1) | (189) |
| Non-reimbursable property expenses | $710 | $1,206 |
The $0.6 million decrease in property operating expenses for the nine months ended September 30, 2026 was due to decreased vacancies compared to the nine months ended September 30, 2025. For the nine months ended September 30, 2026 and 2025, we incurred $0.7 million and $1.2 million, respectively, in aggregate expenses that were not tenant obligations, which was mainly attributable to vacant properties.
General and administrative expenses
The $2.4 million increase in general and administrative expenses for the nine months ended September 30, 2026 was primarily due to an increase of $1.6 million related to stock-based compensation and $0.8 million related to employee compensation.
Other expenses and income
Interest expense
Interest expense for the nine months ended September 30, 2026 decreased $0.9 million compared to the nine months ended September 30, 2025. The decrease was primarily due to a lower effective interest rate as a result of a hedge impacting the revolver effective on September 12, 2025. As of September 30, 2026 and 2025, the weighted average interest rate was 5.03% and 5.36%, respectively.
Gain on sale of real estate
Gain on sale of real estate for the nine months ended September 30, 2026 decreased by $2.3 million compared to the nine months ended September 30, 2025, primarily due to a lower number of properties sold. During the nine months ended September 30, 2026 we sold 20 properties at a net gain of approximately $6.9 million. During the nine months ended September 30, 2025, we sold 25 properties at a net gain of approximately $9.2 million.
Impairment loss
The following table presents the impairment for the respective periods:
| (unaudited, in thousands, except for number of properties)For the nine months ended September 30, | 2026 | 2025 |
|---|---|---|
| Number of properties | 4 | 14 |
| Carrying value prior to impairment loss | $7,165 | $41,279 |
| Fair value | 6,197 | 36,322 |
| Impairment loss | $968 | $4,957 |
During the nine months ended September 30, 2026, we recorded an impairment loss of $1.0 million relating to four properties. During the nine months ended September 30, 2025, we recorded an impairment loss of $5.0 million relating to 14 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 nine months ended September 30, 2026.
Loss from unconsolidated entity
Loss from unconsolidated entity was less than $0.1 million for the nine months ended September 30, 2026. It represents our share, under the HLBV method, of the results of a joint venture formed on August 10, 2026. Once the property is stabilized, it may be sold, or we may acquire the property or our partner’s interest.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.