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FrontView REIT announced Q4 earnings today. Pretty boring results, and I mean this in the best possible way. For a net lease REIT, lack of surprises is exactly what you want to see.
Highlights:
Hit high end of 2025 AFFO guidance at $1.25 per share
Increased 2026 AFFO guidance by $0.02 to $1.30 per share at the midpoint (Increase of +1.6%, +4% year on year)
Acquired 7 properties for $41.3m at a 7.5% cap rate (13.1yr WALT, 1.2% annual escalators) and sold 11 properties (4 vacant and 7 tenanted) for $20.4m with vacant properties sold for $660k per box and leased properties sold at a 6.8% cap rate (6.9yr WALT).
Portfolio occupancy increased quarter on quarter to 98.7% with just 4 vacant assets (6 in Q3).
Portfolio metrics WALT, rent escalations, and the investment grade share of tenancy all increased quarter on quarter (to 7.4yrs from 7.2yrs, to 1.7% from 1.6%, and to 34.8% from 33.7% respectively).
Operations
They have 2 bankrupt tenants - Twin Peaks and Smokey Bones - each with 1 lease and collectively representing 56 bps of ABR as of Q4, They have already re-leased the Twin Peaks for a ~90% increase in rent and have received multiple offers to acquire the Smokey Bones property. They plan to re-let that property to maximize value.
Valuation
The share price has re-rated significantly since my second write-up following the preferred equity transaction which funds their 2026 acquisition pipeline of $100m and now trades at a ~8% cap rate, a ~12.5x AFFO multiple, and 5.2% dividend yield.
I think FrontView remains cheap albeit no longer deeply discounted. Particularly from a real estate perspective. For reference, the highest cap rate for any of the leased properties they sold in 2025 was 8% - where FVR trades today - and that was a dark Bojangles with a 4yr WALT located in Alabama).
I think the best public peers are Four Corners Property Trust and Netstreit, which trade at 13.8x and 14.9× 2026e AFFO and pay a 5.8% and 4.3% dividend yield with 80% and 64% AFFO payout ratios respectively.
At a 7.5% cap rate, FrontView is worth ~$19.40 per share, which equates to a 15× 2026e AFFO multiple. At a 14x AFFO multiple it’s worth ~$18.10 per share. As the preferred is drawn for acquisitions in 2026 there will be dilution that reduces these valuation figures (as it converts at $17 per share) but I think that’s directionally a good range for what the business is worth today.
