REIT Focused On Outparcels Launching IPO
FrontView REIT announced Monday it filed paperwork with the Securities and Exchange Commission to launch an initial public offering it hopes will raise as much as $100M.
The Dallas-based commercial property trust focused on outparcel properties is looking to ride a wave of leasing and rent growth for retail REITs in the first half of the year and mimic the success of other REITs that have gone public this year.
FrontView is an internally managed net lease REIT that acquires and manages properties for service-oriented businesses like restaurants, medical providers and financial institutions with high consumer visibility, according to Renaissance Capital. Its portfolio included 278 properties in 31 states at the end of the second quarter, or around 2.1M SF of retail outparcels.
Its website shows FrontView has worked with tenants such as Chipotle, Starbucks, Walgreens and Wells Fargo. The REIT, which was formed in 2016 and formerly known as NADG NNN, had $56M in revenue in the 12 months to June 30.
FrontView’s ticker on the New York Stock Exchange is expected to be FVR.
Pricing terms weren't disclosed as part of the SEC filing. The firm, managed by CEO Stephen Preston, is working with Morgan Stanley, JPMorgan Chase, Wells Fargo Securities and Bank of America Securities on the move to go public.
The offering follows a strong start to the year for the nation’s biggest publicly traded owners of retail real estate. Publicly traded REITs Simon Property Group, Kimco Realty, Brixmor Property Group, Regency Centers, Federal Realty Investment Trust and NNN REIT each outpaced their projected funds from operations for the year.
It has also been a big year for REITs going public. In July, the IPO of cold storage logistics firm Lineage made 2024's biggest stock market debut when it raised $4.4B. A month earlier, healthcare-focused net lease REIT Sila Realty Trust debuted and saw its share price climb 19% on its first day of trading. In June, it hit a closing price of $22.70. At 1 p.m. ET Tuesday, it was trading at more than $25.
