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DALLAS - FrontView REIT, Inc. (NYSE:FVR) announced Wednesday it has entered into an agreement for a $75 million delayed-draw convertible perpetual preferred equity investment led by Maewyn Capital Partners. The deal comes as the $379.5 million market cap REIT maintains a solid financial health score of "GOOD" according to InvestingPro data.
The investment comes with a 6.75% annual dividend yield and conversion rights at $17.00 per share, representing over a 30% premium to FrontView’s recent trading levels and aligning with analysts’ high target price. The capital must be drawn within one year and can be taken in multiple tranches. FrontView currently trades at $13.61, slightly above its Fair Value according to InvestingPro calculations, while offering investors a 6.31% dividend yield.
FrontView plans to use the funds to finance approximately $100 million in acquisitions of high-traffic, frontage-focused properties in 2026. The company expects the investment to add about 3% to its adjusted funds from operations (AFFO) per share when fully deployed, assuming a 7.25% capitalization rate on acquisitions. This growth initiative comes as FrontView has posted a 17.37% price return over the past six months, despite being down 21% year-to-date.
"We believe this is a bespoke capital commitment and positions us to accelerate AFFO per share growth through our disciplined acquisition of high-quality frontage properties," said Stephen Preston, Chairman and CEO of FrontView, in a press release statement.
The agreement includes provisions allowing FrontView to redeem the preferred shares at par after three years. Maewyn will gain the right to appoint one representative to FrontView’s board of directors, with Charles P. Fitzgerald, Founder and Managing Partner of Maewyn, serving as the initial designee.
A separate Maewyn affiliate already owns 944,064 shares of FrontView common stock, representing 3.4% of outstanding shares, which were purchased prior to this transaction. InvestingPro analysis reveals that while FrontView isn’t profitable over the last twelve months, its liquid assets exceed short-term obligations with a healthy current ratio of 2.48, providing financial flexibility for its expansion plans. Investors seeking deeper insights can access the comprehensive Pro Research Report, available for FVR and 1,400+ other US equities.
FrontView REIT is an internally-managed net-lease REIT focused on properties with frontage on high-traffic roads. Maewyn Capital Partners is a Dallas-based investment firm founded in 2025 by Fitzgerald, who brings nearly three decades of real estate investment experience.
J.P. Morgan Securities, Morgan Stanley, and Wells Fargo Securities served as financial advisors to FrontView, while BofA Securities and Santander US Capital Markets advised Maewyn on the transaction.
In other recent news, FrontView REIT Inc. reported its second-quarter 2025 earnings, which fell short of analysts’ expectations. The company announced an earnings per share (EPS) of -$0.16, significantly missing the anticipated -$0.02, marking a 700% negative surprise. This development highlights a challenging period for FrontView REIT, as the earnings report did not meet the projected figures. Despite the earnings miss, the company’s stock experienced an increase in trading. These recent developments provide investors with insights into FrontView REIT’s financial performance and market reactions.
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