EX-99.2 3 fvr-ex99_2.htm EX-99.2 - QUARTERLY SUPPLEMENTAL INFORMATION EX-99.2

 

EXHIBIT 99.2

 

 

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Q1 2025 QUARTERLY SUPPLEMENTAL INFORMATION

 

FrontView REIT, Inc. (NYSE: FVR) is an internally-managed net-lease REIT that acquires, owns and manages primarily properties with frontage that are net leased to a diversified group of tenants.

 

investor.frontviewreit.com

 

 

 

Table of Contents

 

Section

Page

 

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About the Data

3

 

Company Overview

4

 

Quarterly Financial Summary

5

 

Balance Sheet

6

 

Income Statement Summary

7

 

Funds From Operations (FFO) and Adjusted
Funds From Operations (AFFO)

8

 

Lease Revenues Detail

9

 

Capital Structure

10

 

Debt Outstanding & Equity Rollforward

11

 

EBITDA, EBITDAre, and Other Non-GAAP
Operating Measures

12

 

Net Debt Metrics & Covenants

13

 

Dispositions & Portfolio at a Glance: Key Metrics

14

 

Diversification: Top 40 Tenants

15

 

Diversification: Tenant Industry

16

 

Diversification: Tenant Industry (continued)

17

 

Diversification: Property Map

18

 

Diversification: Geography

19

 

Lease Expirations

20

 

Definitions and Explanations

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

2

 

 

About the Data

This data and other information described herein are as of and for the three months ended March 31, 2025, unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with FrontView’s Quarterly Report on Form 10-Q as of and for the period ended March 31, 2025, including the financial statements and the management’s discussion and analysis of financial condition and results of operations sections.

Forward Looking Statements

Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “would be,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, and property acquisitions and the timing of these investments and acquisitions. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov.

You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

IP Disclaimer

This document contains references to copyrights, trademarks, trade names, and service marks that belong to other companies. FrontView REIT, Inc. is not affiliated or associated with, and is not endorsed by and does not endorse, such companies or their products or services.

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

3

 

 

Company Overview

FrontView REIT, Inc. (NYSE:FVR) (the “Company”, “FrontView”, “FVR”, “us”, “our”, and “we”) is an internally-managed net-lease REIT that acquires, owns and manages primarily properties with frontage that are net leased to a diversified group of tenants. The Company is differentiated by an investment approach focused on properties that are in prominent locations with direct frontage on high-traffic roads that are highly visible to consumers. As of March 31, 2025, the Company owned a well-diversified portfolio of 323 properties with direct frontage across 37 U.S. states. The Company's tenants include service-oriented businesses, such as restaurants, cellular stores, financial institutions, automotive stores and dealers, medical and dental providers, convenience and gas stores, pharmacies, car washes, home improvement stores, grocery stores, fitness operators, professional services as well as general retail tenants.

 

Executive Team

Stephen Preston

Chairman of the Board, Co-Chief Executive Officer and Co-President

Randall Starr

Co-Chief Executive Officer, Co-President, Chief Financial Officer, and Director

Drew Ireland

Chief Operating Officer

 

Board of Directors

Stephen Preston

Chairman of the Board

Randall Starr

Director

Robert Green

Director

Daniel Swanstrom

Independent Director

Elizabeth Frank

Independent Director

Ernesto Perez

Independent Director

Noelle LeVeaux

Independent Director

 

 

 

 

 

 

 

 

Company Contact Information

Rob Shelton

Director, Finance

media@frontviewreit.com

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

4

 

 

Quarterly Financial Summary

(unaudited, in thousands except per share data)

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

 

Financial Summary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate held for investment, at cost

 

$

754,222

 

 

$

719,406

 

 

$

640,264

 

 

$

640,264

 

 

$

642,398

 

 

Less: accumulated depreciation

 

 

(43,659

)

 

 

(40,398

)

 

 

(37,277

)

 

 

(34,356

)

 

 

(31,471

)

 

Real estate held for investment, net

 

 

710,563

 

 

 

679,008

 

 

 

602,987

 

 

 

605,908

 

 

 

610,927

 

 

Assets held for sale

 

 

13,950

 

 

 

5,898

 

 

 

—

 

 

—

 

 

 

953

 

 

Cash and cash equivalents

 

 

3,309

 

 

 

5,094

 

 

 

9,895

 

 

 

16,620

 

 

 

13,197

 

 

Total assets

 

 

860,835

 

 

 

821,809

 

 

 

733,070

 

 

 

745,466

 

 

 

752,708

 

 

Debt, net

 

 

310,214

 

 

 

266,538

 

 

 

418,268

 

 

 

427,435

 

 

 

427,773

 

 

Total liabilities

 

 

345,244

 

 

 

299,131

 

 

 

448,372

 

 

 

455,791

 

 

 

456,902

 

 

Convertible non-controlling preferred interests

 

 

—

 

 

 

—

 

 

 

103,724

 

 

 

103,724

 

 

 

103,724

 

 

Partners' capital

 

 

—

 

 

 

—

 

 

 

180,974

 

 

 

185,951

 

 

 

192,082

 

 

Total FrontView REIT, Inc. equity

 

 

324,664

 

 

 

324,821

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Non-controlling interests

 

 

190,927

 

 

 

197,857

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Total equity (book value)

 

 

515,591

 

 

 

522,678

 

 

 

284,698

 

 

 

289,675

 

 

 

295,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

16,243

 

 

 

15,514

 

 

 

14,534

 

 

 

14,607

 

 

 

15,259

 

 

General and administrative expenses(1)

 

 

2,839

 

 

 

2,932

 

 

 

2,225

 

 

 

2,171

 

 

 

2,262

 

 

Total operating expenses

 

 

13,020

 

 

 

12,784

 

 

 

11,347

 

 

 

10,853

 

 

 

11,568

 

 

Interest expense

 

 

4,497

 

 

 

3,593

 

 

 

6,463

 

 

 

6,597

 

 

 

6,695

 

 

Net loss

 

 

(1,337

)

 

 

(21,488

)

 

 

(3,339

)

 

 

(3,013

)

 

 

(3,369

)

 

Net loss per common share, diluted

 

$

(0.06

)

 

$

(0.78

)

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

 

6,429

 

 

 

(9,963

)

 

 

3,780

 

 

 

4,010

 

 

 

4,159

 

 

FFO per share, diluted

 

$

0.23

 

 

$

(0.36

)

 

$

—

 

 

$

—

 

 

$

—

 

 

AFFO

 

 

8,229

 

 

 

9,055

 

 

 

4,776

 

 

 

4,892

 

 

 

4,989

 

 

AFFO per share, diluted

 

$

0.30

 

 

$

0.33

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

 

8,101

 

 

 

5,257

 

 

 

7,552

 

 

 

5,130

 

 

 

2,590

 

 

Net cash (used in) provided by investing activities

 

 

(47,285

)

 

 

(105,103

)

 

 

(597

)

 

 

2,876

 

 

 

5,655

 

 

Net cash provided by (used in) financing activities

 

 

37,399

 

 

 

95,045

 

 

 

(13,680

)

 

 

(4,583

)

 

 

(12,177

)

 

Dividend declared

 

 

6,178

 

 

 

6,101

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Dividend declared per diluted share

 

$

0.215

 

 

$

0.215

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

(1)

 For the pre-IPO periods presented, general and administrative expenses includes property management fees, asset management fees, and general and administrative expenses.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

5

 

 

Balance Sheet

(unaudited, in thousands)

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate held for investment, at cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

341,353

 

 

$

332,944

 

 

$

312,143

 

 

$

312,143

 

 

$

313,160

 

Buildings and improvements

 

 

412,869

 

 

 

386,462

 

 

 

328,121

 

 

 

328,121

 

 

 

329,238

 

Total real estate held for investment, at cost

 

 

754,222

 

 

 

719,406

 

 

 

640,264

 

 

 

640,264

 

 

 

642,398

 

Less accumulated depreciation

 

 

(43,659

)

 

 

(40,398

)

 

 

(37,277

)

 

 

(34,356

)

 

 

(31,471

)

Real estate held for investment, net

 

 

710,563

 

 

 

679,008

 

 

 

602,987

 

 

 

605,908

 

 

 

610,927

 

Assets held for sale

 

 

13,950

 

 

 

5,898

 

 

 

—

 

 

—

 

 

 

953

 

Cash and cash equivalents

 

 

3,309

 

 

 

5,094

 

 

 

9,895

 

 

 

16,620

 

 

 

13,197

 

Intangible lease assets, net

 

 

115,583

 

 

 

114,868

 

 

 

103,109

 

 

 

108,281

 

 

 

113,357

 

Other assets

 

 

17,430

 

 

 

16,941

 

 

 

17,079

 

 

 

14,657

 

 

 

14,274

 

Total assets

 

$

860,835

 

 

$

821,809

 

 

$

733,070

 

 

$

745,466

 

 

$

752,708

 

LIABILITIES, CONVERTIBLE NON-CONTROLLING PREFERRED
   INTERESTS AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt, net

 

$

310,214

 

 

$

266,538

 

 

$

418,268

 

 

$

427,435

 

 

$

427,773

 

Intangible lease liabilities, net

 

 

16,053

 

 

 

14,735

 

 

 

14,242

 

 

 

14,997

 

 

 

15,745

 

Accounts payable and accrued liabilities

 

 

18,977

 

 

 

17,858

 

 

 

15,862

 

 

 

13,359

 

 

 

13,384

 

Total liabilities

 

 

345,244

 

 

 

299,131

 

 

 

448,372

 

 

 

455,791

 

 

 

456,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible non-controlling preferred interests

 

 

—

 

 

 

—

 

 

 

103,724

 

 

 

103,724

 

 

 

103,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners' capital

 

 

—

 

 

 

—

 

 

 

180,974

 

 

 

185,951

 

 

 

192,082

 

Common Stock, par value $0.01 per share

 

 

175

 

 

 

173

 

 

 

—

 

 

 

—

 

 

 

—

 

Additional paid-in capital

 

 

336,035

 

 

 

331,482

 

 

 

—

 

 

 

—

 

 

 

—

 

Accumulated deficit

 

 

(11,434

)

 

 

(6,834

)

 

 

—

 

 

 

—

 

 

 

—

 

Accumulated other comprehensive loss

 

 

(112

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-controlling interests in the OP

 

 

190,927

 

 

 

197,857

 

 

 

—

 

 

 

—

 

 

 

—

 

Total equity

 

 

515,591

 

 

 

522,678

 

 

 

180,974

 

 

 

185,951

 

 

 

192,082

 

Total liabilities, convertible non-controlling preferred interests and equity

 

$

860,835

 

 

$

821,809

 

 

$

733,070

 

 

$

745,466

 

 

$

752,708

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

6

 

 

Income Statement Summary

(unaudited, in thousands except share and per share data)

 

For the three months ended

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024(1)

 

 

June 30,
2024(1)

 

 

March 31,
2024(1)

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

$

16,243

 

 

$

15,514

 

 

$

14,534

 

 

$

14,607

 

 

$

15,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

7,805

 

 

 

7,634

 

 

 

7,119

 

 

 

6,972

 

 

 

7,325

 

 

Property operating expenses

 

2,376

 

 

 

2,218

 

 

 

2,003

 

 

 

1,710

 

 

 

1,981

 

 

Property management fees

 

—

 

 

 

60

 

 

 

494

 

 

 

497

 

 

 

510

 

 

Asset management fees

 

—

 

 

 

22

 

 

 

1,034

 

 

 

1,034

 

 

 

1,034

 

 

General and administrative expenses

 

2,839

 

 

 

2,850

 

 

 

697

 

 

 

640

 

 

 

718

 

 

Total operating expenses

 

13,020

 

 

 

12,784

 

 

 

11,347

 

 

 

10,853

 

 

 

11,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses (income)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

4,497

 

 

 

3,593

 

 

 

6,463

 

 

 

6,597

 

 

 

6,695

 

 

(Gain) Loss on sale of real estate

 

(467

)

 

 

—

 

 

 

—

 

 

 

51

 

 

 

(388

)

 

Impairment loss

 

428

 

 

 

3,891

 

 

 

—

 

 

 

—

 

 

 

591

 

 

Income taxes

 

102

 

 

 

236

 

 

 

63

 

 

 

119

 

 

 

162

 

 

Total other expenses

 

4,560

 

 

 

7,720

 

 

 

6,526

 

 

 

6,767

 

 

 

7,060

 

 

Operating loss

 

(1,337

)

 

 

(4,990

)

 

 

(3,339

)

 

 

(3,013

)

 

 

(3,369

)

 

Internalization expense

 

—

 

 

 

(16,498

)

 

 

—

 

 

 

—

 

 

 

—

 

 

Net loss

 

(1,337

)

 

 

(21,488

)

 

 

(3,339

)

 

 

(3,013

)

 

 

(3,369

)

 

Less: Net loss attributable to
   convertible non-controlling preferred
   interests

 

—

 

 

 

4,519

 

 

 

908

 

 

 

827

 

 

 

917

 

 

Less: Net loss attributable to non-controlling interests

 

504

 

 

 

1,825

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Net loss attributable to NADG NNN Property Fund LP (Predecessor) and to FrontView REIT, Inc. (Successor)

$

(833

)

 

$

(15,144

)

 

$

(2,431

)

 

$

(2,186

)

 

$

(2,452

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

17,319,742

 

 

 

16,258,728

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Diluted

 

27,822,826

 

 

 

27,577,692

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Net loss per share attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.06

)

 

$

(0.19

)

 

$

—

 

 

$

—

 

 

$

—

 

 

Diluted

$

(0.06

)

 

$

(0.19

)

 

$

—

 

 

$

—

 

 

$

—

 

 

 

(1)
The Company determined that earnings per unit in the Predecessor period would not be meaningful to users of this filing, given the different unitholders in the Predecessor.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

7

 

 

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

(unaudited, in thousands except share and per share data)

 

 

For the three months ended

 

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Net loss

 

$

(1,337

)

 

$

(21,488

)

 

$

(3,339

)

 

$

(3,013

)

 

$

(3,369

)

Depreciation on real property and amortization of real estate intangibles

 

 

7,805

 

 

 

7,634

 

 

 

7,119

 

 

 

6,972

 

 

 

7,325

 

(Gain) loss on sale of real estate

 

 

(467

)

 

 

—

 

 

 

—

 

 

 

51

 

 

 

(388

)

Impairment loss on real estate held for investment

 

 

428

 

 

 

3,891

 

 

 

—

 

 

 

—

 

 

 

591

 

FFO

 

$

6,429

 

 

$

(9,963

)

 

$

3,780

 

 

$

4,010

 

 

$

4,159

 

Straight-line rent adjustments

 

 

(122

)

 

 

(329

)

 

 

(187

)

 

 

(446

)

 

 

(331

)

Amortization of financing transaction and discount costs

 

 

395

 

 

 

1,588

 

 

 

1,053

 

 

 

1,036

 

 

 

1,056

 

Amortization of above/below market lease intangibles

 

 

711

 

 

 

167

 

 

 

423

 

 

 

476

 

 

 

439

 

Stock-based compensation

 

 

615

 

 

 

608

 

 

 

—

 

 

 

—

 

 

 

—

 

Lease termination fees

 

 

—

 

 

 

(342

)

 

 

(747

)

 

 

(223

)

 

 

(414

)

Adjustment for structuring and public company readiness costs

 

 

201

 

 

 

662

 

 

 

440

 

 

 

23

 

 

 

51

 

Adjustment for Internalization expenses

 

 

—

 

 

 

16,580

 

 

 

—

 

 

 

—

 

 

 

—

 

Other non-recurring expenses

 

 

—

 

 

 

84

 

 

 

14

 

 

 

16

 

 

 

29

 

AFFO

 

$

8,229

 

 

$

9,055

 

 

$

4,776

 

 

$

4,892

 

 

$

4,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

 

27,822,826

 

 

 

27,577,692

 

 

 

—

 

 

 

—

 

 

 

—

 

Net loss per diluted share

 

$

(0.06

)

 

$

(0.19

)

 

$

—

 

 

$

—

 

 

$

—

 

FFO per diluted share

 

$

0.23

 

 

$

(0.36

)

 

$

—

 

 

$

—

 

 

$

—

 

AFFO per diluted share

 

$

0.30

 

 

$

0.33

 

 

$

—

 

 

$

—

 

 

$

—

 


 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

8

 

 

Lease Revenues Detail

(unaudited, in thousands)

 

 

For the three months ended

 

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual rental amounts billed

 

$

16,679

 

 

$

14,954

 

 

$

13,971

 

 

$

14,198

 

 

$

14,818

 

Adjustment to recognize contractual rental amounts on a straight-line basis

 

 

122

 

 

 

329

 

 

 

187

 

 

 

446

 

 

 

331

 

Variable rental amounts earned

 

 

55

 

 

 

386

 

 

 

798

 

 

 

306

 

 

 

443

 

Above/below market lease amortization, net

 

 

(711

)

 

 

(167

)

 

 

(423

)

 

 

(476

)

 

 

(439

)

Other income

 

 

98

 

 

 

12

 

 

 

1

 

 

 

133

 

 

 

106

 

Total rental revenues

 

$

16,243

 

 

$

15,514

 

 

$

14,534

 

 

$

14,607

 

 

$

15,259

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

9

 

 

Capital Structure

(in thousands, except percentages)

img108639748_6.jpg

 

 

 

March 31, 2025

 

Equity

 

 

Shares of Common Stock

 

17,520

 

OP Units

 

10,303

 

Common Stock & OP Units

 

27,823

 

Price Per Share / Unit as of closing day of trading

$

12.79

 

Implied Equity Market Capitalization

$

355,856

 

% of Total Capitalization

 

53.3

%

 

 

 

Debt

 

 

Term Loan

$

200,000

 

Revolving Credit Facility

 

112,000

 

Total Debt

$

312,000

 

% of Total Capitalization

 

46.7

%

 

 

 

Total Capitalization

$

667,856

 

Less: Cash and cash equivalents

 

(3,309

)

Enterprise Value

$

664,547

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

10

 

 

Debt Outstanding

(in thousands)

 

 

 

Outstanding Balance

 

 

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

Interest Rate

 

Maturity Date

 Term Loan

 

$

200,000

 

 

$

200,000

 

 

Adjusted SOFR + 1.20% (1, 2)

 

3-Oct-27 (3)

 Revolving Credit Facility

 

 

112,000

 

 

 

68,500

 

 

Adjusted SOFR + 1.20% (1, 2)

 

3-Oct-27 (3)

 Gross Debt

 

$

312,000

 

 

$

268,500

 

 

 

 

 

 

(1)

The approximate one-month SOFR rate at March 31, 2025 was 4.41%%, plus a 10 basis point adjustment "(Adjusted SOFR").

(2)

The approximate one-month SOFR rate at December 31, 2024 was 4.37%, plus a 10 basis point adjustment "(Adjusted SOFR").

(3)

The loans each contain two 12 month extension options, subject to a 0.125% extension fee.

 

Equity Rollforward

 

 

 

Shares of Common Stock

 

 

OP Units

 

 

Total Diluted Shares

 

Balance, January 1, 2025

 

 

17,290,663

 

 

 

10,532,163

 

 

 

27,822,826

 

Conversion of OP unit to Common Stock

 

 

229,200

 

 

 

(229,200

)

 

 

—

 

Balance, March 31, 2025

 

 

17,519,863

 

 

 

10,302,963

 

 

 

27,822,826

 

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

11

 

 

EBITDA, EBITDAre, and Other-Non GAAP Operating Metrics

(unaudited, in thousands)

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Net loss

$

(1,337

)

 

$

(21,488

)

 

$

(3,339

)

 

$

(3,012

)

 

$

(3,369

)

Depreciation and amortization

 

8,516

 

 

 

7,634

 

 

 

7,542

 

 

 

7,448

 

 

 

7,764

 

Interest expense

 

4,497

 

 

 

3,593

 

 

 

6,463

 

 

 

6,597

 

 

 

6,695

 

Income taxes

 

102

 

 

 

236

 

 

 

63

 

 

 

119

 

 

 

162

 

EBITDA

$

11,778

 

 

$

(10,025

)

 

$

10,729

 

 

$

11,152

 

 

$

11,252

 

Gain on sale of real estate

 

(467

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(388

)

Impairment loss on real estate held for investment

 

428

 

 

 

3,891

 

 

 

—

 

 

 

—

 

 

 

591

 

EBITDAre

$

11,739

 

 

$

(6,134

)

 

$

10,729

 

 

$

11,152

 

 

$

11,455

 

Adjustment for current period investment activity (1)

 

509

 

 

 

1,354

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjustment for current period disposition activity (2)

 

—

 

 

 

—

 

 

 

—

 

 

 

(244

)

 

 

(392

)

Adjustment for non-cash compensation expense (3)

 

615

 

 

 

608

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjustment to exclude non-recurring (income) expenses (4)

 

201

 

 

 

16,760

 

 

 

(307

)

 

 

(200

)

 

 

(363

)

Adjustment to exclude net write-offs of accrued rental income

 

394

 

 

 

63

 

 

 

176

 

 

 

—

 

 

 

—

 

Adjusted EBITDAre

 

13,458

 

 

 

12,651

 

 

 

10,598

 

 

 

10,708

 

 

 

10,700

 

Annualized EBITDAre

 

46,956

 

 

 

(24,536

)

 

 

42,916

 

 

 

44,608

 

 

 

45,820

 

Annualized adjusted EBITDAre

$

53,832

 

 

$

50,604

 

 

$

42,392

 

 

$

42,832

 

 

$

42,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Reflects an adjustment to give effect to all investments during the quarter as if they had been acquired as of the beginning of the quarter.

(2)

Reflects an adjustment to give effect to all dispositions during the quarter as if they had been sold as of the beginning of the quarter.

(3)

Reflects an adjustment to exclude non-cash stock-based compensation expense.

(4)

Reflects an adjustment to exclude non-recurring expenses including IPO costs, lease termination fees and non-recurring income or expense.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

12

 

 

Net Debt Metrics

(in thousands)

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

March 31,
2024

 

Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loan

 

$

200,000

 

 

$

200,000

 

 

$

—

 

 

$

—

 

 

$

—

 

Revolving Credit Facility

 

 

112,000

 

 

 

68,500

 

 

 

—

 

 

 

—

 

 

 

—

 

ABS Notes

 

 

—

 

 

 

—

 

 

 

253,499

 

 

 

253,829

 

 

 

254,159

 

CIBC Revolving Credit Facility

 

 

—

 

 

 

—

 

 

 

150,000

 

 

 

159,890

 

 

 

159,890

 

CIBC Term Loan

 

 

—

 

 

 

—

 

 

 

15,967

 

 

 

15,967

 

 

 

17,000

 

Gross Debt

 

 

312,000

 

 

 

268,500

 

 

 

419,466

 

 

 

429,686

 

 

 

431,049

 

Cash and cash equivalents

 

 

(3,309

)

 

 

(5,094

)

 

 

(9,895

)

 

 

(16,620

)

 

 

(13,197

)

Net Debt

 

$

308,691

 

 

$

263,406

 

 

$

409,571

 

 

$

413,066

 

 

$

417,852

 

Net Debt to Annualized EBITDAre

 

 

6.6

 

 

 

(10.7

)

 

 

9.5

 

 

 

9.3

 

 

 

9.1

 

Net Debt to Annualized Adjusted EBITDAre

 

 

5.7

 

 

 

5.2

 

 

 

9.7

 

 

 

9.6

 

 

 

9.8

 

 

Covenants

The following is a summary of key financial covenants for the Company’s unsecured debt instruments. The covenants associated with the Revolving Credit Facility are reported to the respective lenders via quarterly covenant reporting packages. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show that as of March 31, 2025, the Company believes it is in compliance with the covenants.

 

Covenants

 

Required

 

Revolving Credit Facility

Total Leverage Ratio

 

≤ 60%

 

38.0%

Adjusted EBITDA to Fixed Charges Ratio

 

≥ 1.50 to 1.00

 

2.98x

Secured Leverage Ratio

 

≤ 40%

 

0.0%

Unencumbered NOI to Unsecured Interest Expense Ratio

 

≥ 1.75 to 1.00

 

3.59x

Unsecured Leverage Ratio

 

≤ 60%

 

38.0%

Tangible Net Worth

 

≥ 380,032

 

508,480

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

13

 

 

Dispositions

(in thousands, except # of properties)

The following table summarizes the Company’s property disposition activity during 2025.

Property

 

# of Properties

 

 

Original Purchase Price

 

 

Sale Price

 

 

Lease Termination Fee

 

 

Gain over Original Purchase Price

 

Occupied(1)

 

1

 

 

$

2,000

 

 

$

2,050

 

 

$

—

 

 

$

50

 

Vacant

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Dispositions

 

1

 

 

$

2,000

 

 

$

2,050

 

 

$

—

 

 

$

50

 

 

 

(1)

One occupied property was sold during Q1 2025

 

Portfolio at a Glance: Key Metrics

 

 

March 31, 2025

 

December 31, 2024

 

September 30, 2024

 

June 30, 2024

 

March 31, 2024

Properties

 

323

 

307

 

278

 

278

 

280

U.S. States

 

37

 

35

 

31

 

31

 

31

Total Annualized Base Rent

 

$62.1M

 

$58.8M

 

$52.1M

 

$52.0M

 

$52.0M

Total Rentable Sq. Footage

 

2.6M

 

2.4M

 

2.1M

 

2.1M

 

2.1M

Tenants

 

329

 

320

 

293

 

292

 

294

Brands

 

151

 

150

 

137

 

137

 

137

Industries

 

15

 

15

 

15

 

15

 

15

Occupancy

 

96.3%

 

97.7%

 

98.9%

 

98.9%

 

98.6%

Top 10 Tenant Concentration

 

22.6%

 

21.8%

 

23.3%

 

23.3%

 

23.4%

Top 20 Tenant Concentration

 

37.9%

 

37.0%

 

38.5%

 

38.5%

 

38.7%

Investment Grade (tenant/guarantor)

 

33.2%

 

33.1%

 

38.0%

 

40.4%

 

38.1%

Financial Reporting Coverage(1)

 

87.5%

 

79.4%

 

81.6%

 

81.6%

 

N/A

Weighted Average Remaining Lease Term

 

7.4 Years

 

7.2 Years

 

6.7 Years

 

7.0 Years

 

7.6 Years

 

(1)

Includes tenants not required to provide financial information under the terms of our lease, but whose financial statements are available publicly at March 31, 2025.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

14

 

 

Diversification: Top 40 Tenants

(in thousands, except for percentages and # of properties)

Tenant Brand

 

# of Properties(1)

 

 

Square Feet

 

 

ABR

 

 

% of ABR

 

 

% of Square Feet

 

Dollar Tree

 

 

12

 

 

 

135

 

 

$

1,927

 

 

 

3.1

%

 

 

5.2

%

Fast Pace Urgent Care

 

 

8

 

 

 

29

 

 

 

1,727

 

 

 

2.8

%

 

 

1.1

%

Verizon

 

 

8

 

 

 

35

 

 

 

1,650

 

 

 

2.7

%

 

 

1.4

%

Adams Auto Group

 

 

3

 

 

 

29

 

 

 

1,412

 

 

 

2.3

%

 

 

1.2

%

Oak Street Health

 

 

5.5

 

 

 

66

 

 

 

1,317

 

 

 

2.1

%

 

 

2.6

%

IHOP

 

 

6

 

 

 

33

 

 

 

1,226

 

 

 

2.0

%

 

 

1.3

%

Mammoth Car Wash

 

 

6

 

 

 

22

 

 

 

1,205

 

 

 

1.9

%

 

 

0.9

%

Raising Canes

 

 

6

 

 

 

21

 

 

 

1,201

 

 

 

1.9

%

 

 

0.8

%

Bank of America

 

 

5

 

 

 

26

 

 

 

1,195

 

 

 

1.9

%

 

 

1.0

%

LA-Z-Boy

 

 

3

 

 

 

54

 

 

 

1,152

 

 

 

1.9

%

 

 

2.1

%

CVS

 

 

4

 

 

 

42

 

 

 

1,081

 

 

 

1.7

%

 

 

1.6

%

AT&T

 

 

4

 

 

 

24

 

 

 

1,063

 

 

 

1.7

%

 

 

0.9

%

T-Mobile

 

 

7.5

 

 

 

26

 

 

 

1,030

 

 

 

1.7

%

 

 

1.0

%

Chili's

 

 

3

 

 

 

18

 

 

 

973

 

 

 

1.6

%

 

 

0.7

%

Wendy's

 

 

7

 

 

 

21

 

 

 

942

 

 

 

1.5

%

 

 

0.8

%

PNC Bank

 

 

5

 

 

 

29

 

 

 

935

 

 

 

1.5

%

 

 

1.1

%

Wells Fargo

 

 

2.5

 

 

 

13

 

 

 

871

 

 

 

1.4

%

 

 

0.5

%

Advance Auto Parts

 

 

7

 

 

 

66

 

 

 

857

 

 

 

1.4

%

 

 

2.6

%

Walgreens

 

 

3

 

 

 

38

 

 

 

854

 

 

 

1.4

%

 

 

1.5

%

St. Joseph Hospice

 

 

2

 

 

 

37

 

 

 

849

 

 

 

1.4

%

 

 

1.4

%

Heartland Dental

 

 

5

 

 

 

20

 

 

 

809

 

 

 

1.3

%

 

 

0.8

%

Burger King

 

 

5

 

 

 

20

 

 

 

765

 

 

 

1.2

%

 

 

0.8

%

Lowe's Home Improvement

 

 

1

 

 

 

168

 

 

 

750

 

 

 

1.2

%

 

 

6.6

%

VASA Fitness

 

 

0.5

 

 

 

50

 

 

 

704

 

 

 

1.1

%

 

 

2.0

%

Charles Schwab

 

 

1

 

 

 

9

 

 

 

696

 

 

 

1.1

%

 

 

0.4

%

Aspen Dental

 

 

4.5

 

 

 

20

 

 

 

679

 

 

 

1.1

%

 

 

0.8

%

Parachute Plasma

 

 

2

 

 

 

14

 

 

 

664

 

 

 

1.1

%

 

 

0.5

%

WSS

 

 

2

 

 

 

25

 

 

 

649

 

 

 

1.0

%

 

 

1.0

%

Wellnow

 

 

4

 

 

 

15

 

 

 

635

 

 

 

1.0

%

 

 

0.6

%

Walmart

 

 

1

 

 

 

212

 

 

 

632

 

 

 

1.0

%

 

 

8.3

%

Best Buy

 

 

1

 

 

 

45

 

 

 

613

 

 

 

1.0

%

 

 

1.8

%

Andy's Frozen Custard

 

 

4

 

 

 

8

 

 

 

610

 

 

 

1.0

%

 

 

0.3

%

Edge Fitness

 

 

1

 

 

 

53

 

 

 

605

 

 

 

1.0

%

 

 

2.1

%

Chase Bank

 

 

2.5

 

 

 

13

 

 

 

604

 

 

 

1.0

%

 

 

0.5

%

Floor & Decor

 

 

1

 

 

 

80

 

 

 

600

 

 

 

1.0

%

 

 

3.1

%

LA Fitness

 

 

2

 

 

 

34

 

 

 

600

 

 

 

1.0

%

 

 

1.3

%

Applebee's

 

 

3

 

 

 

15

 

 

 

574

 

 

 

0.9

%

 

 

0.6

%

Stop & Shop Gas

 

 

3

 

 

 

0

 

 

 

563

 

 

 

0.9

%

 

 

0.0

%

Buffalo Wild Wings

 

 

2

 

 

 

12

 

 

 

560

 

 

 

0.9

%

 

 

0.5

%

7-Eleven

 

 

4

 

 

 

11

 

 

 

545

 

 

 

0.9

%

 

 

0.4

%

Other

 

 

166

 

 

 

972

 

 

 

25,733

 

 

 

41.4

%

 

 

37.9

%

Total

 

 

323

 

 

 

2,560

 

 

$

62,057

 

 

 

100.0

%

 

 

100.0

%

 

(1)

Includes two-tenant properties.

 

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

15

 

 

Diversification: Tenant Industry

(rent percentages based on ABR)

 

img108639748_7.jpg

FrontView REIT, Inc. | www.frontviewreit.com | 2025 FrontView REIT, Inc. All rights reserved.

16

 

 

Diversification: Tenant Industry (continued)

(in thousands, except for percentages and # of properties)

Industry

 

# of Properties(1)

 

 

ABR

 

 

% of ABR

 

 

Square Feet

 

 

% of Square Feet

 

Medical and Dental Providers

 

 

43

 

 

$

9,036

 

 

 

14.6

%

 

 

270

 

 

 

10.5

%

Quick Service Restaurants

 

 

62.5

 

 

 

8,909

 

 

 

14.3

%

 

 

203

 

 

 

7.9

%

Casual Dining

 

 

42

 

 

 

8,607

 

 

 

13.8

%

 

 

268

 

 

 

10.5

%

General Retail

 

 

30

 

 

 

6,381

 

 

 

10.3

%

 

 

543

 

 

 

21.2

%

Financial Institutions

 

 

25

 

 

 

5,814

 

 

 

9.4

%

 

 

144

 

 

 

5.6

%

Automotive Stores & Dealers

 

 

34

 

 

 

5,736

 

 

 

9.2

%

 

 

259

 

 

 

10.1

%

Cellular Stores

 

 

21

 

 

 

4,039

 

 

 

6.5

%

 

 

96

 

 

 

3.8

%

Home Improvement Stores

 

 

9

 

 

 

3,091

 

 

 

5.0

%

 

 

339

 

 

 

13.2

%

Convenience & Gas Stores

 

 

16

 

 

 

2,983

 

 

 

4.8

%

 

 

43

 

 

 

1.7

%

Fitness Operators

 

 

5

 

 

 

2,523

 

 

 

4.1

%

 

 

170

 

 

 

6.6

%

Car Washes

 

 

10

 

 

 

2,022

 

 

 

3.3

%

 

 

33

 

 

 

1.3

%

Pharmacies

 

 

7

 

 

 

1,935

 

 

 

3.1

%

 

 

81

 

 

 

3.2

%

Professional Services

 

 

1

 

 

 

173

 

 

 

0.3

%

 

 

4

 

 

 

0.2

%

Other

 

 

18

 

 

 

808

 

 

 

1.3

%

 

 

107

 

 

 

4.2

%

Total

 

 

323

 

 

$

62,057

 

 

 

100.0

%

 

 

2,560

 

 

 

100.0

%

 

(1)

Includes two-tenant properties.

 

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17

 

 

Diversification: Property Map

 

img108639748_8.jpg

 

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18

 

 

 

Diversification: Geography

(in thousands, except for percentages and # of properties)

State

 

# of Properties(1)

 

 

Square Feet

 

 

ABR

 

 

% of Square Feet

 

 

% of ABR

 

IL

 

 

36

 

 

 

379

 

 

$

8,814

 

 

 

14.8

%

 

 

14.2

%

TX

 

 

24

 

 

 

134

 

 

 

4,891

 

 

 

5.2

%

 

 

7.9

%

GA

 

 

24

 

 

 

150

 

 

 

4,426

 

 

 

5.9

%

 

 

7.1

%

NC

 

 

17

 

 

 

94

 

 

 

3,353

 

 

 

3.7

%

 

 

5.4

%

OH

 

 

22

 

 

 

131

 

 

 

3,166

 

 

 

5.1

%

 

 

5.1

%

TN

 

 

17

 

 

 

93

 

 

 

3,133

 

 

 

3.6

%

 

 

5.0

%

IN

 

 

16

 

 

 

85

 

 

 

2,770

 

 

 

3.3

%

 

 

4.5

%

PA

 

 

8

 

 

 

145

 

 

 

2,502

 

 

 

5.7

%

 

 

4.1

%

VA

 

 

15

 

 

 

76

 

 

 

2,445

 

 

 

2.9

%

 

 

3.9

%

FL

 

 

15

 

 

 

99

 

 

 

2,323

 

 

 

3.9

%

 

 

3.7

%

NY

 

 

8

 

 

 

242

 

 

 

2,095

 

 

 

9.4

%

 

 

3.4

%

AL

 

 

11

 

 

 

49

 

 

 

1,783

 

 

 

1.9

%

 

 

2.9

%

MO

 

 

10

 

 

 

60

 

 

 

1,714

 

 

 

2.3

%

 

 

2.8

%

SC

 

 

10

 

 

 

73

 

 

 

1,588

 

 

 

2.9

%

 

 

2.6

%

NJ

 

 

10

 

 

 

55

 

 

 

1,499

 

 

 

2.1

%

 

 

2.4

%

AZ

 

 

7

 

 

 

43

 

 

 

1,490

 

 

 

1.6

%

 

 

2.4

%

MN

 

 

7

 

 

 

72

 

 

 

1,445

 

 

 

2.8

%

 

 

2.3

%

OK

 

 

9

 

 

 

48

 

 

 

1,416

 

 

 

1.8

%

 

 

2.3

%

MI

 

 

8

 

 

 

49

 

 

 

1,408

 

 

 

1.9

%

 

 

2.3

%

MD

 

 

7

 

 

 

50

 

 

 

1,406

 

 

 

2.0

%

 

 

2.3

%

LA

 

 

4

 

 

 

47

 

 

 

1,210

 

 

 

1.8

%

 

 

1.9

%

KY

 

 

8

 

 

 

40

 

 

 

1,067

 

 

 

1.6

%

 

 

1.7

%

ME

 

 

3

 

 

 

186

 

 

 

1,062

 

 

 

7.3

%

 

 

1.7

%

KS

 

 

6

 

 

 

41

 

 

 

1,058

 

 

 

1.6

%

 

 

1.7

%

CT

 

 

3

 

 

 

9

 

 

 

610

 

 

 

0.4

%

 

 

1.0

%

CO

 

 

3

 

 

 

13

 

 

 

469

 

 

 

0.5

%

 

 

0.8

%

ID

 

 

1

 

 

 

6

 

 

 

424

 

 

 

0.2

%

 

 

0.7

%

MS

 

 

2

 

 

 

13

 

 

 

417

 

 

 

0.5

%

 

 

0.7

%

UT

 

 

2

 

 

 

22

 

 

 

340

 

 

 

0.9

%

 

 

0.5

%

NE

 

 

2

 

 

 

20

 

 

 

325

 

 

 

0.8

%

 

 

0.5

%

WI

 

 

2

 

 

 

15

 

 

 

310

 

 

 

0.6

%

 

 

0.5

%

NV

 

 

1

 

 

 

4

 

 

 

259

 

 

 

0.2

%

 

 

0.4

%

AR

 

 

1

 

 

 

3

 

 

 

218

 

 

 

0.1

%

 

 

0.4

%

RI

 

 

1

 

 

 

1

 

 

 

182

 

 

 

0.1

%

 

 

0.3

%

SD

 

 

1

 

 

 

10

 

 

 

155

 

 

 

0.4

%

 

 

0.2

%

MA

 

 

1

 

 

 

2

 

 

 

143

 

 

 

0.1

%

 

 

0.2

%

WV

 

 

1

 

 

 

1

 

 

 

141

 

 

 

0.1

%

 

 

0.2

%

Total

 

 

323

 

 

 

2,560

 

 

$

62,057

 

 

 

100.0

%

 

 

100.0

%

 

(1)

Includes two-tenant properties.

 

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19

 

 

Lease Expirations

(in thousands; based on ABR)

 

img108639748_9.jpg

 

(in thousands, except for percentages)

Year

 

ABR

 

 

% of ABR

 

 

Square Feet

 

 

% of Square Feet

 

2025

 

$

1,025

 

 

 

1.6

%

 

 

26

 

 

 

1.0

%

2026

 

 

3,205

 

 

 

5.1

%

 

 

108

 

 

 

4.2

%

2027

 

 

6,877

 

 

 

11.0

%

 

 

382

 

 

 

14.9

%

2028

 

 

4,595

 

 

 

7.4

%

 

 

159

 

 

 

6.2

%

2029

 

 

6,376

 

 

 

10.3

%

 

 

215

 

 

 

8.4

%

2030

 

 

6,362

 

 

 

10.3

%

 

 

199

 

 

 

7.8

%

2031

 

 

4,459

 

 

 

7.2

%

 

 

143

 

 

 

5.6

%

2032

 

 

5,580

 

 

 

9.0

%

 

 

423

 

 

 

16.5

%

2033

 

 

2,764

 

 

 

4.5

%

 

 

85

 

 

 

3.3

%

2034

 

 

4,018

 

 

 

6.5

%

 

 

155

 

 

 

6.1

%

2035

 

 

1,580

 

 

 

2.5

%

 

 

79

 

 

 

3.1

%

2036

 

 

1,784

 

 

 

2.9

%

 

 

49

 

 

 

1.9

%

2037

 

 

2,786

 

 

 

4.5

%

 

 

141

 

 

 

5.5

%

2038

 

 

2,767

 

 

 

4.5

%

 

 

164

 

 

 

6.4

%

2039

 

 

2,647

 

 

 

4.3

%

 

 

54

 

 

 

2.1

%

Thereafter

 

 

5,232

 

 

 

8.4

%

 

 

155

 

 

 

6.1

%

Untenanted Properties

 

 

—

 

 

 

—

 

 

 

23

 

 

 

0.9

%

Total

 

$

62,057

 

 

 

100.0

%

 

 

2,560

 

 

 

100.0

%

 

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20

 

 

Definitions and Explanations

Adjusted Secured Overnight Financing Rate (SOFR): We define Adjusted SOFR as the current one month term SOFR plus an adjustment of 0.10% per the terms of our credit facilities.

Annualized Base Rent (ABR): We define ABR as the annualized contractual cash rent due for the last month of the reporting period, and adjusted to remove rent from properties sold during the month and to include a full month of contractual cash rent for properties acquired during the last month of the reporting period

EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre: EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre are non-GAAP financial measures. We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our leverage that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. In 2017, Nareit issued a white paper recommending that companies that report EBITDA also report EBITDAre in financial reports. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA (as defined above) excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. We compute adjusted EBITDAre as EBITDAre for the applicable quarter, as adjusted to (i) reflect all investment and disposition activity that took place during the applicable quarter as if each transaction had been completed on the first day of the quarter, (ii) exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, (iii) eliminate the impact of lease termination fees from certain of our tenants, and (iv) exclude non-cash stock-based compensation expense. Annualized adjusted EBITDAre is calculated by multiplying adjusted EBITDAre for the applicable quarter by four, which we believe provides a meaningful estimate of our current run rate for all of our investments as of the end of the most recently completed quarter given the contractual nature of our long-term net leases. You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our annualized adjusted EBITDAre. Our reported EBITDA, EBITDAre, Adjusted EBITDAre, and Annualized Adjusted EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider these measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO): FFO and AFFO are non-GAAP measures. We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the standards established by the Board of Governors of Nareit. Nareit defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain previously depreciated real estate assets. To derive AFFO, we modify the Nareit computation of FFO to include other adjustments to GAAP net income related to certain non-cash or non-recurring revenues and expenses, including straight-line rents, cost of debt extinguishments, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, (gain) loss on interest rate swaps and other non-cash interest expense, realized gains or losses on foreign currency transactions, Internalization expenses, structuring and public company readiness costs, extraordinary items, and other specified non-cash items. We believe that such items are not a result of normal operations and thus we believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.

Gross Debt: We define Gross Debt as total debt, net plus debt issuance costs and original issuance discount.

Net Debt: Net Debt is a non-GAAP financial measure. We define Net Debt as our Debt less cash and cash equivalents.

Occupancy: Occupancy or a specified percentage of our portfolio that is “occupied” or “leased” means as of a specified date (i) the number of properties that are subject to a signed lease divided by (ii) the total number of properties in our portfolio.

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21