I’m on vacation so this is a little over a week late but FrontView released a Q2 capital markets update on July 1, 2026.

In Q2 they acquired 17 properties for a purchase price of $58.2 million with a cash yield of ~7.3% and sold 10 properties for an aggregate $22.9 million, including 9 occupied properties with a cash yield of ~7.1%, resulting in net acquisitions of $35.3m in the quarter.

This brings year-to-date net acquisitions to $59.5m. They also raised net acquisition guidance to $110m from $100m. This implies they slow the pace of acquisitions through the balance of the year. It will be interesting what management say about this on the Q2 earnings call because capital is not the constraint.

To this point, FrontView has effectively “graduated” into net lease REIT adulthood. The rise in the share price allowed them to issue $50.5m of equity at $19.50 per share through their ATM program in Q2. About 1/3 was settled immediately with an additional $32.2m available through unsettled forward equity sale agreements. Combined with $50m of remaining capacity under their Series A Preferred, this gives them ~$80m of equity to fund 2026 and 2027 acquisitions. Call this dry powder of $105m - $120m at 25% - 33% LTV.

The fact that the share price has held up - and in fact continued to increase - given the company is selling shares to raise new equity is a very good sign for the company’s prospects.

I think raising equity at these prices makes sense for the company. At $21 per share, FrontView trades at a ~0% - 5% premium to my NAV estimates, a 6.9% implied cap rate on trailing NOI, and 16× 2026e AFFO. They now trade at an AFFO multiple premium to good peer, Four Corners Property Trust ($FCPT) and just 1x turn of AFFO cheaper than leading net lease REIT Agree Realty ($ADC).

Based on 2026e AFFO, cost of equity is ~6.25% (a 50 bps improvement from the cost of their convertible preferred issuance) and assuming a conservative 25% LTV on new acquisitions at 5% cost of debt, this gives them a cost of capital of just under 6%. Acquisitions at 7.3% cap rate provide a 130 investment spread. As they scale their investment volume into 2027, this should support 3% - 5% AFFO per share growth (see the chart below from their investor presentation).

In hindsight I clearly pulled the trigger too soon by trimming at $19.60 - and should have let momentum run a little further - but clearly management also thought that price reflected a full (if not a premium) valuation. I am happy to continue to hold on to the rest of my position here as FrontView appear to have made the leap that few deep value, small-scale REITs achieve and have a window of time to let REIT reflexivity work for them and drive cash flow growth through external acquisitions funded by equity issuance at a premium to NAV.