FrontView REIT Plans to Raise $251M in IPO 

FrontView REIT, a commercial REIT focused on net lease outparcel assets, announced plans to raise $251 million by offering 13.2 million shares at an expected initial public offering of $17 to $21 per share, according to a Tuesday filing. 

Based on the midpoint price of $19 per share, the REIT anticipates net proceeds of approximately $231 million. If the underwriters’ overallotment option is fully exercised, the estimated net proceeds would be approximately $267 million. 

FrontView is a net-lease REIT that is internally managed and specializes in the acquisition, ownership, and management of outparcel properties throughout the U.S. The company concentrates on properties that are strategically situated and have direct access to high-traffic roadways, thereby ensuring that consumers have a high level of visibility.   

The company’s portfolio, which consisted of 278 properties in 31 states, had a total of approximately 2.1 million rentable square feet as of June 30, 2024. Restaurants, financial institutions, automotive stores, medical providers, and cellular stores comprise its tenants. 

The company expects to use the proceeds from the IPO to repay borrowings under its revolving credit facility and term loan credit facility. 

FrontView’s total revenue for the six months ending June 30, 2024, increased from $22.3 million to $29.9 million compared to the same period a year ago. The company experienced a net loss of $4.6 million, compared to $3.7 million, and funds from operations (FFO) of $7.6 million, compared to $7.3 million. 

FrontView REIT intends to list on the NYSE under the symbol FVR. Wells Fargo Securities, Morgan Stanley, J.P. Morgan, and BofA Securities are the joint bookrunners on the transaction. The IPO is anticipated to price sometime during the next week.