FrontView REIT, Inc.

Good day, everyone, and welcome to this Frontview REIT Inc. Q3 2024 earnings conference call. Getting started today, all participants are in a listen-only mode, but later you will have the opportunity to ask questions during the question and answer session. If you would like to register to ask a question at any time by pressing the star and 1 on your telephone keypad. Please note, this session may be recorded, and I'll be standing by should you need any assistance. It is now my pleasure to turn the conference over To Tim Dieffenbacher, please go ahead, sir. Good morning, everyone.

I'm joined today by Stephen Preston, Chairman, Co-CEO, and Co-President, and Randy Starr, Co-CEO and Co-President. Before I turn it over to Steve, please note that we will make certain statements that may be considered to be forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to these forward-looking statements to reflect changes after the statements were made. Factors and risks that could cause actual results to differ maturely from expectations are disclosed from time to time in greater detail in the company's filings with the SEC and in this morning's press release. Thank you, and let me turn it over to Steve to start our presentation.

Thank you, Tim. Good morning, everyone. Welcome to Frontview's first earnings call as a public company. For those that are new to Frontview, Frontview is an internally managed net lease REIT that acquires, owns, and manages primarily out parcel properties that are net leased to a diversified group of tenants. Frontview went public in early October to access public capital to fund our growing pipeline of acquisitions that I'll discuss in more detail shortly. Frontview is differentiated by an investment approach focused on out parcel properties that are in prominent locations with direct frontage on high traffic roads that are highly visible to consumers. As you know, we will be talking about our third quarter 24 earnings today. Though those numbers are reflective of Frontview as a private company and are relatively unrelated the front view on a go-forward basis as a public company. Before jumping into the portfolio, on the top of everyone's mind is probably our ability to source acquisitions and accretively grow the portfolio. We have definitely demonstrated that ability since going public in early October. We have acquired $22.5 million thus far in the fourth quarter of properties and are under PSA who would acquire an additional approximately 81.4 million of properties, totaling approximately 103.9 million of properties, all at a blended cash cap rate of approximately 7.9%. We expect to close in excess of 75 million of acquisitions during Q4. In addition to these properties, we currently have a very strong pipeline under PSA negotiation, and we feel very good about closing on $50 million in the first quarter of 2025. Further, we anticipate the acquisition pipeline to continue to build from here. A few additional stats on the 103.9 million of properties noted above. One, properties with frontage, 100%. Two, number of properties, 31. Three, average property price, approximately 3.35 million. Four, average remaining lease term, over 10 years. Five, investment grade percentage, approximately 30.8%. Six, number of new tenants, 11. And finally, number seven, number of new states, three, bringing our total to 34. From an acquisition pricing standpoint, we have been pleased with where we've been transacting at what we believe to be elevated cap rates relative to the market, a testament to our buyer approach and our ability to demonstrate surety of close in a fragmented marketplace. Using our nationwide relationships and networks, we expect to continue to source attractive acquisitions at above market cap rates. All that being said, we can see the market tightening a bit and anticipate that our average cap rate for the first quarter of 2025 would slightly come off the high sevens and move more into a mid-sevens number. Following the SHU being exercised, we were sitting with approximately $93 million of cash on the balance sheet, along with a $250 million revolving line of credit that had zero drawn under the facilities. This is expected to provide us with a healthy supply of liquidity to execute our business plan to continue with accretive acquisition well into 2025. Shifting to the portfolio highlights. Our portfolio continues to perform very well. As of September 30th, our portfolio consisted of 278 freestanding properties with an average remaining lease term of just under seven years. We are heavily diversified across 31 states and 96 metro areas. We are pleased to keep a very diversified portfolio with no overexposure to any one tenant. At quarter end, our largest tenant exposure was 3.4% of ABR, and we expect that number will decline several basis points with the upcoming closings in the fourth quarter. Occupancy was strong at approximately 99% and rental collections on contractual rent were also strong at approximately 99% for the period, generally in line with our historical ranges of 98% to 99%. One of our differentiating qualities as a management team is our ability to successfully repurpose assets and bring them back online. As out parcel owners, we generally do not sell off our vacant assets. Rather, We prefer to take the time to release or re-tenant the assets, which we believe ultimately creates the best long-term value for our shareholders. In these situations, there is a little short-term pain for long-term gain, so to speak, as we incur some tax and insurance costs to carry the assets while we release. As we continue to scale and grow the asset base, we anticipate seeing this current drag decline. On our noted watch list, We expect to be taking back one TGI Friday, two Hooters, and a small car dealership in Orlando situated at a very busy intersection. We also received notice that our Freddy's Steakburger in Jacksonville will be closing, though a new lease is already being negotiated with a new national tenant. In the aggregate, these assets only account for about 2% of ABR, and we fully expect to repurpose these assets, bringing them back online relatively quickly with an improvement to the bottom line. These are the assets we'd like to have, assets with frontage, which are sought after by tenants, and that can be quickly repurposed to create long-term shareholder value. During the quarter, we did not sell any assets, and we do not anticipate selling any assets during the fourth quarter of 2024. We plan to look at selling an asset or two off in the coming quarters during 2025 that we believe will generate low cap rates in the marketplace allowing us to spread quite positively when compared with where we were acquiring today. Our balance sheet is very strong, and our revolving line of credit has the full capacity of $250 million available. We also do not have any debt maturities in the near term other than our ABS debt, which will be repaid in December of this year through our floating rate delayed draw term loan that we already have in place. Thank you, and let me turn it over to Tim for more detail on the quarterly numbers and guidance.