- FrontView REIT (FVR, Financial) acquired 17 new properties in Q1 2025 for $49.2 million, with plans for further acquisitions and sales.
- Randall Starr appointed as Chief Financial Officer, maintaining his role as Co-CEO.
- The company continues to manage tenant transitions and expects income replacement by late 2025 or early 2026.
FrontView REIT, Inc. (FVR) reported significant investment activity for the first quarter of 2025. The company successfully acquired 17 new properties for a total of $49.2 million, achieving a weighted average initial cash capitalization rate of 7.9% and an average lease term of 12 years. These acquisitions were diversified across nine industries, 13 tenants, and 13 states, including eight new tenants and two new states. Approximately 29% of the annualized base rent from these acquisitions stems from investment-grade tenants.
Subsequent to March 31, 2025, FrontView REIT closed on one additional property for $3.6 million with an initial cash capitalization rate of 8.1% and a lease term of seven years. The company currently has four more properties under contract, totaling $8.4 million, with a weighted average initial cash capitalization rate of 8.3% and a weighted average lease term of approximately 11 years. Investment-grade tenants represent around 37% of the annualized base rent from these upcoming acquisitions.
In management developments, FrontView announced that Randall Starr has been appointed as the Chief Financial Officer, while continuing his role as Co-CEO. Starr has played a crucial role in the company since its inception and brings significant experience from his prior roles in financial analysis and investment banking. Additionally, Sean Fukumura will take over as the Chief Accounting Officer, bringing nearly 19 years of experience in public accounting.
Operationally, FrontView is addressing tenant challenges, with 12 properties totaling approximately 4% of year-end 2024 ABR experiencing issues such as tenant bankruptcies. The company is actively leasing or negotiating new leases for these properties, expecting the equivalent replacement income to materialize in Q4 2025 or early 2026. Current occupancy rates stand at over 96%, projected to stabilize further with new tenant acquisitions.
