A retail REIT based in Dallas raised a quarter of a billion dollars on its first day as a publicly traded company.
FrontView REIT, which specializes in high-visibility retail properties, raised $250.8 million in an initial public offering, having sold 13.2 million shares at $19 each, the middle of a marketed range, Bloomberg reported. The company’s stock trades on the New York Stock Exchange under the ticker symbol FVR.
The IPO, managed by major banks including Morgan Stanley, JPMorgan Chase, Wells Fargo and Bank of America, represents a key move for FrontView, led by founder and co-CEO Stephen Preston, as it looks to expand its portfolio of outparcel properties.
Outparcels — small, standalone retail sites positioned along busy roadways — are particularly attractive to businesses that thrive on visibility and consumer foot traffic.
Proceeds from the IPO will be funneled into the company’s operating partnership, which will issue common shares in return. The funds are expected to cover general corporate expenses and working capital, as well as position FrontView for further growth through strategic acquisitions.
As of June 30, FrontView’s portfolio comprised 278 properties across 31 states, offering roughly 2.1 million square feet of rentable space. Illinois and Texas boast the highest concentrations of FrontView-owned properties, with 28 and 22 locations respectively. Some of its most notable tenants include major brands like Starbucks, AT&T and Verizon.
Despite the successful IPO, FrontView’s financial performance has been mixed. The company reported a net loss of $6.4 million for the first half of last year, compared to a $5.1 million net loss for the same period in 2022. However, revenues increased from $22.3 million to $29.9 million year-over-year.
The uptick in revenue reflects growing demand for high-traffic, well-located retail spaces, a trend FrontView aims to capitalize on as it continues its expansion efforts.
— Andrew Terrell
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