FrontView REIT (FVR) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 25, 2026 astatine 11:43 AM CST 33 min read

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Wednesday, Feb. 25, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Stephen Preston

• Chief Financial Officer — Pierre Revol

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Stephen Preston: Thank you, Pierre, and bully morning, everyone. I americium precise pleased to sermon our 4th fourth and full-year results. Today, FrontView REIT, Inc. is operationally stronger, financially much resilient, and strategically amended positioned than astatine immoderate constituent since becoming public. Our portfolio has been refined, our equilibrium expanse remains conservative, and we person secured superior to money accretive maturation opportunities accordant with our existent estate-first philosophy. As a reminder, our portfolio was built astir a existent estate-centric strategy focusing connected acquiring fungible, frontage-based assets typically located successful beforehand of large retail nodes successful the apical 100 MSAs nationwide. Our beardown existent property provides captious advantages and quicker outcomes erstwhile recycling, re-tenanting, oregon repositioning tenants.

For example, we ain 1 Tricolor car dealership that closed successful aboriginal Q4 owed to the wide reported Tricolor bankruptcy. Due to the prime of our existent property and our experienced absorption team, we rapidly released the spot to Avis successful the aforesaid quarter, resulting successful a important recognition upgrade and a 24% summation successful worth for our shareholders. Historically, since founding the REIT successful 2016, our acquisition has been that we person achieved, connected average, implicit 110% of anterior rent erstwhile leasing to a caller tenant. Results similar these cannot hap without top-tier existent property prime and a top-tier absorption team. Our tenant basal remains heavy diversified crossed necessity and service-based industry.

Today, we person 321 leases, with the apical 10 accounting for lone 24% of ABR, and our largest tenant contributing conscionable 3.5%. In summation to our existent estate-first philosophy, diversification has been portion of our strategy from time 1 and serves arsenic different hazard mitigant, keeping vulnerability to immoderate azygous tenant debased arsenic credits travel and spell implicit time. During the 4th quarter, we acquired 7 properties for astir $41,300,000 astatine an mean headdress complaint of 7.5%, with a weighted mean remaining lease word of astir 13.1 years. In 2025, we acquired 32 properties for astir $124,100,000 astatine an mean currency headdress complaint of 7.74% and a weighted mean remaining lease word of astir 12.4 years.

Since the IPO successful October 2024, we person added 61 properties and accrued the archetypal plus basal by astir 30%. Starting this 4th and going forward, to assistance you amended recognize our existent property strategy, we volition item 1 quarterly acquisition connected the screen of our capitalist presumption and concisely sermon it during our calls. This quarter, we are highlighting a Seven Brew successful Jacksonville, Florida. Seven Brew is simply a rapidly increasing drive-through java concatenation founded successful 2017, known for its high-energy, treble drive-through model, and offering implicit 20,000 unsocial portion combinations.