FrontView REIT, Inc.

This call is being recorded on Thursday, August 14th, 2025. I would now like to turn the conference over to Pierre Rivaux, CFO. Please go ahead, sir.

Thank you, operator, and thank you, everyone, for joining us for Frontview's second quarter 2025 earnings call. I will be joined on the call by Steve Preston, Chairman and CEO. Drew Ireland, our Chief Operating Officer, will be available for Q&A. Before we get started, I would like to remind everyone that this presentation includes forward-looking statements. Although we believe these forward-looking statements are based on reasonable assumptions, they are subject to known and unknown risk and uncertainties that can cause pastoral results to differ materially from those currently anticipated due to a number of factors. I refer you to the Safe Harbor Statement and our most recent filing with the SEC for a detailed discussion of risk factors related to these forward-looking statements. This presentation also contains certain non-GAAP financial metrics. Reconciliation of non-GAAP financial metrics and most directly comparable GAAP metrics are included in the exhibits furnished to the SEC under Form 8-K, which include our earnings release and supplemental package. These materials are also available on the investor relations page of our company's website, along with our investor presentation. I'm now pleased to introduce Steve Preston.

Steve? Thank you, Pierre, and good morning, everyone. As a reminder for our new investors, Frontview is a diversified net lease REIT that primarily focuses on high visibility frontage properties, typically with smaller box sizes, which are leased to household name tenants. As of June 30th, our portfolio consisted of 319 properties leased to 334 tenants operating across 16 industries. Our portfolio maintains excellent diversification, no tenant representing more than 3.3% of ABR. Before providing an update on our operations, I would like to formally welcome Pierre Rivolle as our Chief Financial Officer. Pierre brings extensive experience within REITs, having led corporate finance, investor relations, and capital markets for both public and private REITs, as well as being a former buy-side REIT investor. Pierre's expertise will bolster Frontview's financial strategy, including capital markets execution, balance sheet management, communications, and operational excellence. I am thrilled to have him on the team. With his addition, our executive team is complete and optimized to operate and scale our business. Turning to the portfolio, we ended the quarter with occupancy of 97.8%. up from approximately 96% last quarter. We made exceptional progress in a remarkably short timeframe on the 12 previously disclosed properties with troubled tenancies. This is now resolved and behind us. Of the 12 properties, we sold three during the quarter and one post-quarter for $11.8 million and over 89% recovery on the original purchase credit. We released five properties for $687,000 in annualized base rent with a waltz of 10.8 years. By combining the value of the new leases with the reinvestment of disposed properties, we have already recovered approximately 65% of the aggregate prior rent from just these nine assets. Only three assets remain, with one under contract to sell, one with buyer interest, and one with national tenant interest. The successful resolution highlights the strength of our underlying high-quality real estate, which is characterized by high visibility frontage locations appealing to various users, allowing us to retenant, repurpose, or sell assets in order to maximize value for each location. Outside of these assets, the tenants in our portfolio are performing as expected with negligible credit loss and no material additions to our watch list. During the second quarter, we acquired five properties for approximately $17.8 million and an average cash cap rate of 8.17%. The weighted average remaining lease term for these properties was approximately 11 years, with average annual escalators of approximately 2.4%, and an economic yield of 9.35%. From an industry perspective, we continue to add diversification, including adding financial, medical, discount retail, automotive, and logistics distribution. In terms of property dispositions, we sold nine properties for $22.7 million during the quarter. Five were occupied properties, generating proceeds of $11.6 million and an average cash cap rate of approximately 6.75%. These properties had an average weighted lease term of eight years. Our current target dispositions are assets with lower walls or less optimal concepts. Additionally, we sold four vacant properties during the quarter, recovering approximately 90% of the original purchase price, with these funds being redeployed into income-producing properties. These asset sales demonstrate the continued desirability and liquidity of our real estate assets. and highlight the meaningful spread between our implied cap rate of approximately 10% versus where our assets are transacting in the market. Looking at net investment, we were net sellers this quarter, and our net debt to annualized adjusted EBITDA fell to 5.5 times, with an LTV of less than 40% using consensus estimates for net. As we look forward to the remainder of the year, we've adjusted our net capital deployment guidance, On the capital front, we are increasing our capital recycling by raising our disposition guidance to $60 million to $75 million and reducing our acquisition target to a range of between $110 million and $130 million. On the acquisition front, we will remain selective, pursuing high visibility properties with strong credits and attractive valuations. Our pipeline of opportunities remains strong. And we believe we will be able to accelerate acquisitions if supported by our capital recycling plan or an improved cost of capital. Going into the third quarter, we see cap rates trending around 7.5%. On the disposition front, we have an active pipeline of assets with less optimal concepts and or lower walls, where we currently anticipate that the cap rates should be 50 to 75 basis points lower than those in our acquisitions. while improving key portfolio metrics, including wealth and industry composition. In summary, we have a strong team of real estate and capital markets professionals in place to lead us forward. A high-quality portfolio of liquid real estate assets and a pipeline of investments and dispositions that will further enhance our portfolio. Finally, we are well-equipped with a strong balance sheet to execute on a pipeline of opportunities to accelerate external growth when there is an attractive spread to our cost of capital. With that, I'll turn the call to Pierre to go through the quarterly numbers and guidance. Pierre.