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FrontView REIT, Inc. (FVR)
NYSE:FVR
US Market

FrontView REIT, Inc. (FVR) AI Stock Analysis

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FrontView REIT, Inc.

(NYSE:FVR)

Rating:56Neutral
Price Target:
$12.00
▲(3.45%Upside)
FrontView REIT, Inc. exhibits strong cash flow management and a high dividend yield, which are positives for investors. However, ongoing profitability issues, bearish technical indicators, and recent executive changes pose challenges to its overall stock attractiveness.
Positive Factors
Acquisition Activity
FrontView acquired 29 new properties for $103.4 million at 7.9% cash cap rate, exceeding market estimates.
Dividend Declaration
The company declared a dividend of $0.86 on an annualized basis, indicating a stable return for investors.
Stock Valuation
The stock is considered discounted to the underlying real estate, offering potential downside protection.
Negative Factors
Financial Performance
The ability to invest on a leverage neutral basis has been significantly hurt by the drawdown in stock performance.
Management Stability
Sudden changes in the management team less than a year since the company’s IPO may hinder the execution of its growth plan.
Market Guidance
The company's future guidance is uncertain and sensitive to acquisition/disposition activity and interest rates.

FrontView REIT, Inc. (FVR) vs. SPDR S&P 500 ETF (SPY)

FrontView REIT, Inc. Business Overview & Revenue Model

Company DescriptionFrontView REIT specializes in real estate investing.
How the Company Makes MoneyFrontView REIT, Inc. generates revenue primarily through leasing its portfolio of commercial properties to a variety of tenants. The company earns rental income from tenants who occupy its office, retail, and industrial spaces. Additionally, FVR increases its revenue through property appreciation and strategic sales of assets when market conditions are favorable. The company may also engage in joint ventures or partnerships to develop new properties or enhance existing ones, thereby creating additional income streams. Furthermore, FVR actively manages its portfolio to improve occupancy rates and optimize rental rates, contributing to its overall profitability.

FrontView REIT, Inc. Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q4-2024)
|
% Change Since: -2.44%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced view with notable achievements in acquisition growth, financial management, and capital allocation. However, challenges persist with tenant issues and sector underperformance affecting short-term performance metrics.
Q4-2024 Updates
Positive Updates
Successful IPO and Acquisition Growth
FrontView REIT completed a successful IPO in October 2024 and acquired $103.4 million of properties in Q4 2024 at an average cap rate of 7.93% and a weighted average lease term of 11 years.
Strong Portfolio Performance
As of December 31, 2024, FrontView's portfolio consisted of 307 freestanding properties with an average remaining lease term of over seven years, diversified across 35 states and 109 metro areas, with a strong occupancy rate of approximately 98%.
Robust Acquisition Pipeline
FrontView closed $37.9 million of property in Q1 2025 at an average cap rate of 7.8%, with an additional $18.2 million under contract at an average cap rate of 8.25%, exceeding previous cap rate guidance.
Strong Financial Management
FrontView reported AFFO per share of $0.33 for 2024, in line with guidance, and successfully repaid ABS notes in full, enhancing financial flexibility with a new $250 million revolving credit facility and a $200 million term loan.
Prudent Capital Allocation
FrontView secured a $200 million term loan at a SOFR rate of 3.66%, representing an all-in borrowing rate of 4.96%, and has a net debt ratio of 5.2 times, demonstrating a prudent approach to leverage.
Negative Updates
Tenant Watch List and Portfolio Challenges
Approximately 4% of FrontView's ABR is affected by tenants on a watch list, including Freddy's, TGI Fridays, World Auto, Hooters, On The Border, and Joanne's Fabrics, resulting in short-term AFFO impact.
Exposure to Underperforming Sectors
FrontView experienced challenges in the sit-down fast-casual and pharmacy sectors, reducing exposure from 19.3% of ABR to 15% in Q4 2024, with further reductions expected.
Increased Bad Debt Expense
Recognized approximately 200 basis points of bad debt during the quarter due to watch list properties, with guidance for 2025 indicating bad debt expense in the range of 2% to 3% of cash ABR.
Company Guidance
During the call, FrontView REIT, Inc. provided guidance for 2025, highlighting key metrics and expectations. The company plans to conduct real estate acquisitions between $175 million and $200 million, with property dispositions estimated between $5 million and $20 million. They anticipate a bad debt expense ranging from 2% to 3%, influenced by properties on their watch list. Non-reimbursed property and operating expenses are projected between $2 million and $2.6 million, while total cash general and administrative expenses are estimated between $8.9 million and $9.5 million. FrontView aims to maintain an AFFO per share within the range of $1.20 to $1.26, driven by acquiring assets at above-market cap rates. The company also highlighted a strong balance sheet with a net debt ratio of 5.2 times and a $200 million term loan secured at an all-in borrowing rate of 4.96%. The guidance reflects their strategic focus on growth while managing tenant challenges and ensuring financial flexibility.

FrontView REIT, Inc. Financial Statement Overview

Summary
FrontView REIT, Inc. showcases strong revenue growth and cash flow management. However, it grapples with persistent profitability issues with negative net income and EBIT margins. The balance sheet reveals moderate leverage, requiring focus on improving profitability to enhance financial health.
Income Statement
54
Neutral
FrontView REIT, Inc. has shown substantial revenue growth of 24.1% from 2023 to 2024, indicating strong top-line expansion. However, the company has sustained negative EBIT and net income margins, reflecting ongoing challenges in achieving profitability. Despite a positive EBITDA margin of 38.7%, the persistent negative net profit margin at -37.1% is a concern.
Balance Sheet
45
Neutral
With a debt-to-equity ratio of 0.87 and an equity ratio of 39.5%, FrontView REIT, Inc. carries a moderate level of leverage. Positive stockholders' equity in 2024 shows improvement from previous years, but the return on equity remains negative, indicating inefficiency in generating profits from shareholders' investments.
Cash Flow
66
Positive
The company has shown strong free cash flow growth of 19.6% year-over-year. The operating cash flow to net income ratio is healthy, reflecting good cash generation relative to earnings, despite net losses. The free cash flow to net income ratio is also favorable, suggesting strong cash flow management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
45.95M59.92M48.27M39.86M33.90M
Gross Profit
37.88M47.32M36.69M30.81M27.07M
EBIT
-4.94M-14.71M-14.47M-5.27M-3.02M
EBITDA
29.00M23.21M30.42M29.98M25.87M
Net Income Common Stockholders
-6.26M-22.21M-1.10M-4.47M-2.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.31M5.09M11.60M41.08M31.87M
Total Assets
860.84M821.81M772.01M626.79M559.82M
Total Debt
16.05M281.27M453.87M298.93M288.04M
Net Debt
12.74M276.18M442.27M257.85M256.17M
Total Liabilities
345.24M299.13M574.94M409.49M339.80M
Stockholders Equity
324.66M324.82M197.07M0.000.00
Cash FlowFree Cash Flow
20.91M20.51M17.14M23.10M16.73M
Operating Cash Flow
20.91M20.53M17.22M23.10M16.79M
Investing Cash Flow
-152.99M-97.17M-93.81M-82.20M-149.18M
Financing Cash Flow
118.76M64.61M52.64M68.30M138.75M

FrontView REIT, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$2.84B10.850.42%9.90%5.94%-21.26%
MDMDV
61
Neutral
$145.41M75.121.54%8.14%-4.13%79.39%
FVFVR
56
Neutral
$219.68M-0.37%7.41%
51
Neutral
$25.64M471.19-16.85%2.35%-10.27%-32.99%
44
Neutral
$7.40M-110.42%34.41%10.31%39.90%
41
Neutral
$5.21M-49.21%4.02%2.72%-584.61%
40
Underperform
$10.34M-28.98%30.30%43.87%-4679.89%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FVR
FrontView REIT, Inc.
11.60
-7.23
-38.40%
MDRR
Medalist Diversified REIT
11.50
-0.03
-0.26%
GIPR
Generation Income Properties
1.36
-2.54
-65.13%
SQFT
Presidio Property Trust
4.34
-3.11
-41.74%
MDV
Modiv
14.37
0.69
5.04%
MKZR
MacKenzie Realty Capital, Inc.
0.66
-2.74
-80.59%

FrontView REIT, Inc. Corporate Events

Executive/Board Changes
FrontView REIT, Inc. Terminates Co-CEO Randall Starr
Negative
Jun 16, 2025

On June 15, 2025, FrontView REIT, Inc. terminated Randall Starr from his roles as Co-Chief Executive Officer, Co-President, Chief Financial Officer, Treasurer, and Secretary for cause, following an investigation by the Audit Committee. The termination was unrelated to the company’s business operations or financial results. Subsequently, Sean Fukumura was appointed as Interim Chief Financial Officer, while the company searches for a permanent replacement. This leadership change is expected to have minimal impact on the company’s operations or financial standing, as the transition is managed internally.

The most recent analyst rating on (FVR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on FrontView REIT, Inc. stock, see the FVR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
FrontView REIT Elects Directors at Annual Meeting
Neutral
May 29, 2025

On May 27, 2025, FrontView REIT, Inc. held its Annual Meeting of Stockholders where two key proposals were voted on. The stockholders elected seven directors to the board to serve until the 2026 annual meeting and ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (FVR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on FrontView REIT, Inc. stock, see the FVR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
FrontView REIT Reports Strong Q1 2025 Financial Results
Positive
May 15, 2025

FrontView REIT, Inc. reported strong financial results for Q1 2025, with a 6% year-over-year increase in revenue to $16.2 million and a 55% increase in funds from operations (FFO) to $6.4 million. The company acquired 17 new properties for $49.2 million, maintaining a 96% occupancy rate and demonstrating its ability to scale. The updated 2025 guidance reflects a decrease in investment activity but an increase in disposition activity, indicating strategic adjustments in their portfolio management.

The most recent analyst rating on (FVR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on FrontView REIT, Inc. stock, see the FVR Stock Forecast page.

Executive/Board ChangesDividendsBusiness Operations and StrategyFinancial Disclosures
FrontView REIT Announces Q1 2025 Results and Guidance
Positive
May 14, 2025

On May 14, 2025, FrontView REIT, Inc. announced its first quarter 2025 results and updated its full-year guidance. The company reported a successful quarter with acquisitions totaling $49.2 million and a strong operational performance, generating an AFFO of $0.30 per share. Despite a net loss of $1.3 million, the company maintained a high lease rate of 96.3% and declared a quarterly dividend. The appointment of Randall Starr as CFO was also announced, indicating a strategic focus on leadership stability. The updated guidance reflects adjustments in investment and disposition expectations, with a reaffirmed AFFO guidance of $1.20 to $1.26 per diluted share, highlighting the company’s adaptive strategy in a dynamic market.

The most recent analyst rating on (FVR) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on FrontView REIT, Inc. stock, see the FVR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
FrontView REIT Announces CFO Resignation and New Appointments
Neutral
Apr 30, 2025

FrontView REIT, Inc. announced significant leadership changes and investment activities in its latest update. Timothy Dieffenbacher resigned as Chief Financial Officer, effective May 5, 2025, and Randall Starr was appointed to the role while continuing as Co-CEO and Co-President. Additionally, Sean Fukumura was appointed as Chief Accounting Officer. The company reported acquiring 17 new properties in Q1 2025 for $49.2 million, with plans to slow acquisition activities due to a decline in share price affecting capital costs. Despite this, FrontView remains optimistic about its pipeline and expects to resume acquisitions as conditions improve. The company is also addressing tenant issues, with plans to replace lost income from non-paying tenants by late 2025 or early 2026.

Financial Disclosures
FrontView REIT Announces Q1 2025 Results Release
Neutral
Apr 16, 2025

On April 15, 2025, FrontView REIT, Inc. announced it will release its financial and operating results for the first quarter of 2025 on May 14, 2025, after market close. The company will also host an earnings conference call and webcast on May 15, 2025. This announcement is part of FrontView’s ongoing efforts to keep stakeholders informed of its financial performance and strategic positioning in the real estate market.

Private Placements and FinancingM&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
FrontView REIT Reports Q4 2024 Financial Results
Neutral
Mar 20, 2025

On March 19, 2025, FrontView REIT, Inc. announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a net loss of $21.5 million but generated adjusted funds from operations (AFFO) of $9.1 million. During the fourth quarter, FrontView acquired 29 new properties for $103.4 million and sold one property for $2.1 million. The company completed its IPO, raising $271.5 million, which was used to repay existing debt and fund acquisitions. FrontView also initiated its 2025 AFFO per share guidance and declared a quarterly dividend, indicating a strategic focus on growth and shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.