Net lease focused FrontView REIT filed a Form S-11 (and amendment) to formalize its intentions to raise equity capital via an IPO. The company is conditionally approved to trade on the NYSE under the ticker FVR and is targeting 13.2 million shares priced between $17-21/share ($250MM+ raise).
FrontView owns ‘outparcel properties with direct frontage across 31 states.’ The company defines outparcel as ‘individual building properties (small or large formats) leased to one or more tenants that are in locations with direct frontage on high-traffic roads that are visible to consumers.’ Started in 2016, FrontView’s portfolio is the net lease arm of predecessor NADG (North American Development Group), a $5 billion AUM real estate firm with assets across commercial and residential.
The FVR portfolio includes:
278 properties totaling 2.1 million rentable square feet and leased to 292 tenants and 137 brands
40% of annualized base rent (“ABR”) generated from investment grade rated tenants
98.9% occupancy with contractual rent escalations in 96.6% of leases and a weighted average lease term (WALT) remaining of 7.0 years
Near term lease expirations are material given the lower WALT: 2024 (1.4% of ABR), 2025 (4.8%), 2026 (6.9%), and 2027 (14.0%)
Top geographic concentrations include Illinois (12.1% of ABR), Texas (8.5%), Georgia (6.7%), Ohio (6.3%) and North Carolina (5.8%)
Top tenant industry concentrations include casual dining (19.3% of ABR), quick service restaurants (17.5%), automotive stores/dealers (10.3%), medical/dental providers (10.0%), and financial institutions (8.3%)
Top tenant brand concentrations include:
The Observer will cover FrontView’s portfolio, strategy, and prospects in depth in Issue 9!
Cheers,Sean