FrontView REIT Seeks to Raise Up to $277 Million in US IPO, According to Reuters

FrontView REIT, which focuses on investing in properties situated in high-traffic locations, is set to raise up to $277.2 million through its initial public offering (IPO) in the United States, as announced on Tuesday.

Based in Dallas, Texas, FrontView boasts a portfolio of 278 properties across the country, maintaining an impressive 98.9% occupancy rate as of the end of June. The company plans to offer 13.2 million shares within a price range of $17 to $21 each, which could potentially value it at up to $561.4 million.

This IPO follows the recent successful listing of cold storage leader Lineage, which raised $4.44 billion—the largest IPO of the year and the biggest in the U.S. REIT sector to date. Lineage’s performance is viewed as a key indicator for future IPOs in the United States.

Furthermore, the valuation of REITs is expected to benefit significantly from the Federal Reserve’s anticipated easing of monetary policies.

The funds raised from the IPO are primarily earmarked for debt repayment for FrontView. Notable clients of the company include Verizon, CVS, Adams Auto Group, Bank of America, and Wendy’s.

Founded in 2016 by Stephen Preston, FrontView reported a 34% increase in rental revenue, reaching $29.9 million for the six months ending June 30. The company’s funds from operations, an important performance metric for REITs, grew to $7.6 million in the first half of 2024, up from $7.3 million in the previous year.

FrontView REIT is expected to trade on the New York Stock Exchange under the ticker symbol “FVR.” The lead underwriters for this offering are Morgan Stanley, J.P. Morgan, Wells Fargo Securities, and BofA Securities.