DALLAS--(BUSINESS WIRE)--November 12, 2025--
FrontView REIT, Inc. (NYSE: FVR) (the "Company", "FrontView", "we", "our", or "us"), today announced its operating results for the quarter ended September 30, 2025.
MANAGEMENT COMMENTARY
Stephen Preston, CEO and Chairman, commented, "Q3 was a powerful transitional quarter for FrontView. Our portfolio again performed very well, with occupancy moving up to 98.0% driving strong AFFO per share results despite being net disposers in the quarter. We continued to demonstrate what we believe is the imbalance of our share price through portfolio optimization with total dispositions of $32.9 million, of which $30.1 million were occupied, at a sales capitalization rate of 6.78%. We acquired 3 properties totalling $15.8 million in the quarter and have a more active pipeline in-place with certain investments expected to close in the fourth quarter. Lastly, the addition of our bespoke perpetual preferred equity provides us accretive capital that we anticipate to use to pursue growth opportunities in 2026."
THIRD QUARTER 2025 HIGHLIGHTS
-- Generated net income of $5.5 million, or $0.19 per share with funds
from operations ("FFO") of $6.9 million, or $0.25 per share and adjusted
funds from operations ("AFFO") of $8.8 million, or $0.32 per share
-- Closed on 3 properties for $15.8 million at an average capitalization
of 7.48% and a weighted average lease term of 10.7 years
-- Sold 15 properties, including 13 occupied properties for $30.1 million
in gross proceeds with an average capitalization rate of 6.78% on the
occupied properties and a weighted average lease term of 8.0 years
-- Maintained a strong balance sheet with an improved net debt to Adjusted
EBITDAre of 5.3x, Fixed Charge Coverage Ratio of 3.3x, and $161.1 million
of total available liquidity
-- Improved occupancy to 98.0% with annualized base rent of $61.3 million
-- Paid a $0.215 dividend, equating to a 6.3 % dividend yield based on our
stock price as of September 30, 2025 and a 67 % AFFO payout ratio
-- Amended Revolving Credit Facility and Term Loan, removing the 10 basis
point adjustment to SOFR
-- Hedged $100.0 million of one-month SOFR through March 2028
SUBSEQUENT MATERIAL EVENTS
-- Closed a $75.0 million delayed-draw convertible perpetual preferred
equity investment led by Maewyn Capital Partners
SUMMARIZED FINANCIAL RESULTS
The following table summarizes the Company's select financial results for the three and nine months ended September 30, 2025, and 2024:
Successor Predecessor(1) Successor Predecessor(1)
For the three months ended For the nine months ended
September 30, September 30,
--------------------------- ------------------------------
(unaudited, in
thousands,
except share and
per share
amounts) 2025 2024 2025 2024
----------- -------------- ----------- ----------------
Revenues $ 16,803 $ 14,534 $ 50,600 $ 44,403
Net income
(loss),
including
non-controlling
interest $ 5,547 $ (3,339) $ (320) $ (9,721)
Net income (loss)
per share $ 0.19 $ -- $ (0.01) --
FFO $ 6,866 $ 3,780 $ 20,015 $ 11,948
FFO per share $ 0.25 $ -- $ 0.72 --
AFFO (2) $ 8,829 $ 4,776 $ 26,086 $ 14,656
AFFO per share $ 0.32 $ -- $ 0.94 --
Diluted Weighted
Average Shares
Outstanding 27,834,670 -- 27,828,225 --
(1) The Company determined that FFO per share and AFFO per share in the
Predecessor period would not be meaningful to users of this filing,
given the different unitholders in the Predecessor.
(2) In 2025, lease termination fees are not adjusted for AFFO purposes.
2024 AFFO figures included an adjustment for lease termination fees.
INVESTMENT ACTIVITY
The following table summarizes the Company's investments and dispositions for the three and nine months ended September 30, 2025:
For the three months For the nine months
ended September 30, ended September 30,
2025 2025
---------------------- -------------------
(unaudited,
in thousands,
except # of
properties
and # of # of
percentages) Properties Amount Properties Amount
----------- -------- ---------- -------
Investments 3 $ 15,771 25 $82,794
Less
Dispositions 15 32,897 25 57,608
========== ======= ========== ======
Investment
Activity (12) $(17,126) -- $25,186
Investment
Activity
------------- ----------- -------- ---------- -------
Cash Yield(1) 7.48% 7.88%
Economic Yield 7.56% 8.31%
Investment
Grade 31.0% 27.1%
Average Annual
Escalators 0.4% 1.5%
Weighted
Average Lease
Term (years) 10.7 12.1
Disposition
Activity
------------- ----------- -------- ---------- -------
Cash Yield 6.78% 6.77%
Weighted
Average Lease
Term (years) 8.0 8.3
(1) Includes near-term lease extensions as the underwritten capitalization
rate.
PORTFOLIO UPDATE
The following table summarizes the Company's real estate portfolio as of September 30, 2025:
September 30, 2025
--------------------
Number of Properties 307
Annualized Base Rent (000s) $ 61,289
Gross Real Estate Investment (000s) $ 890,943
Average Rent per Square Foot $ 24.22
Rentable Square Feet (000s) 2,575
Number of Tenants 323
Number of Industries 16
Occupancy 98.0%
Weighted Average Lease Term (years) 7.2
Investment Grade % 33.7%
BALANCE SHEET AND LIQUIDITY
The following tables summarize the Company's leverage, fixed charge coverage and liquidity as of September 30, 2025:
Leverage and Fixed Charge September 30, 2025
------------------
Net Debt/ Annualized EBITDAre 6.0x
Net Debt/ Annualized Adjusted EBITDAre 5.3x
Fixed Charge Coverage Ratio 3.3x
Liquidity September 30, 2025
--------------------
Unused Revolver Capacity $ 141,500
Cash and Cash Equivalents 19,595
--- ---------------
Total Liquidity $ 161,095
DISTRIBUTIONS
On November 11, 2025, our board of directors declared a quarterly dividend of $0.215 per common share and OP unit to holders of record as of December 31, 2025, payable on or before January 15, 2026.
2025 GUIDANCE UPDATE
The following table summarizes the Company's guidance and key underlying assumptions for the year ended December 31, 2025.
Prior Current
--------------------------- -------------- --------------
AFFO per share $1.22 to $1.24 $1.23 to $1.25
Investment Activity ($mm) $110 to $130 $115 to $125
Disposition Activity ($mm) $60 to $75 $70 to $80
Cash G&A ($mm)(1) $8.7 to $9.1 $8.7 to $9.1
(1) Cash G&A excludes stock based compensation and non-recurring charges
of $1.3 million in 2025 attributable to non-recurring charges.
Our per share results are sensitive to both the timing and amount of real estate investments, property dispositions, and capital markets activities that occur throughout the year.
We do not provide guidance for the most comparable GAAP financial measure, net income, or a reconciliation of the forward-looking non-GAAP financial measure of AFFO to net income computed in accordance with GAAP, because we are unable to reasonably predict, without unreasonable efforts, certain items that would be contained in the GAAP measure, including items that are not indicative of our ongoing operations, including, without limitation, potential impairments of real estate assets, net gain/loss on dispositions of real estate assets, changes in allowance for credit losses, and stock-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on our GAAP results for the guidance periods.
2026 PRELIMINARY GUIDANCE
The Company is initiating preliminary full year 2026 AFFO guidance and net investment activity with the table below summarizing the key underlying assumptions. Additionally, the AFFO per share range accounts for the potential dilution associated with the Company's intended equity offering(s).
Preliminary 2026 Guidance
----------------------- --------------------------
AFFO per share $1.26 to $1.30
Net Investment Activity Approximately $100 million
CONFERENCE CALL AND WEBCAST
The Company will host its third quarter earnings conference call and audio webcast on Thursday, November 13, 2025, at 10:00 a.m. Central Time.
To access the live webcast, which will be available in listen-only mode, please visit: https://events.q4inc.com/attendee/399461801. If you prefer to listen via phone, U.S. participants may dial: 1-800-549-8228 (toll free) or 1-646-564-2877 (local), conference ID 59665.
A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. To listen to a replay of the call via the web, which will be available for one year, please visit: investor.frontviewreit.com.
About FrontView REIT, Inc.
FrontView is an internally-managed net-lease REIT that acquires, owns and manages primarily properties with frontage that are net leased to a diversified group of tenants. FrontView is differentiated by an investment approach focused on properties that are in prominent locations with direct frontage on high-traffic roads that are highly visible to consumers. As of September 30, 2025, FrontView owned a well-diversified portfolio of 307 properties with direct frontage across 37 U.S. states. FrontView's tenants include service-oriented businesses, such as medical and dental providers, quick service restaurants, casual dining, financial institutions, cellular stores, automotive stores, convenience stores and gas stations, discount retail, automotive dealers, fitness operators, car washes, pharmacies, home improvement stores, as well as professional services tenants.
Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies, and prospects, both business and financial. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "outlook," "potential," "may," "will," "should," "could," "seeks," "approximately," "projects," "predicts," "expect," "intends," "anticipates," "estimates," "plans," "would be," "believes," "continues, " or the negative version of these words or other comparable words. Forward-looking statements, including our 2025 and preliminary 2026 guidance and assumptions, our ability to close one or more sales of Convertible Preferred Shares pursuant the Investment Agreement, to execute our business and acquisition strategies, or to realize accretion to AFFO, involve known and unknown risks and uncertainties, which may cause FVR's actual future results to differ materially from expected results, including, without limitation, risks and uncertainties related to general economic conditions, including but not limited to increases in the rate of inflation and/or interest rates, local real estate conditions, tenant financial health, property investments and acquisitions, and the timing and uncertainty of completing these property investments and acquisitions, and uncertainties regarding future distributions to our stockholders. These and other risks, assumptions, and uncertainties are described in Item 1A. "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which the Company filed with the SEC on March 20, 2025, and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, which was filed with the SEC on August 14, 2025, which you are encouraged to read, and is available on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. The Company assumes no obligation to, and does not currently intend to, update any forward-looking statements after the date of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.
Notice Regarding Non-GAAP Financial Measures
In addition to our reported results and net earnings per diluted share, which are financial measures presented in accordance with GAAP, this press release contains and may refer to certain non-GAAP financial measures, including Funds from Operations ("FFO"), Adjusted Funds from Operations ("AFFO"), EBITDA, EBITDAre, Adjusted EBITDAre, Annualized Adjusted EBITDAre, Adjusted Net Operating Income ("NOI"), Annualized Adjusted NOI, Adjusted Cash NOI, Annualized Adjusted Cash NOI, Net Debt and Fixed Charge Coverage Ratio.
We believe the use of FFO and AFFO are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure, and should be considered in addition to, and not in lieu of, GAAP financial measures.
We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs. EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.
We believe Adjusted NOI and Adjusted Cash NOI provide useful and relevant information because they reflect only those income and expense items that are incurred at the property level. Adjusted NOI and Adjusted Cash NOI are not measurements of financial performance under GAAP and may not be comparable to similarly titled measures of other companies. You should not consider our measures as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.
We believe presenting Net Debt to Annualized Adjusted EBITDAre is useful to investors because they provide information about Gross Debt less cash and cash equivalents, which could be useful to repay debt, compared to our performance as measured using EBITDAre and Annualized Adjusted EBITDAre. You should not consider our Annualized Adjusted EBITDAre as an alternative to net income or cash flows from operating activities determined in accordance with GAAP.
We believe the Fixed Charge Coverage Ratio is useful to investors to show the Company's ability to cover its fixed charges including interest expense, principal repayments of debt and dividends. You should not consider our Fixed Charge Coverage Ratio as an alternative to net income or cash flows from operating activities determined in accordance with GAAP.
A reconciliation of non-GAAP measures to the most directly comparable GAAP financial measure and statements of why management believes these measures are useful to investors are included below.
FRONTVIEW REIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)
September 30, December 31,
2025 2024
--------------- --------------
ASSETS
Real estate held for
investment, at cost
Land $ 325,699 $ 332,944
Buildings and improvements 399,052 386,462
----------- ----------
Total real estate held for
investment, at cost 724,751 719,406
Less accumulated depreciation (45,065) (40,398)
----------- ----------
Real estate held for investment,
net 679,686 679,008
Assets held for sale 17,667 5,898
Mortgage loans receivable 10,274 --
Cash and cash equivalents 19,595 5,094
Intangible lease assets, net 101,685 114,868
Other assets 17,883 16,941
----------- ----------
Total assets $ 846,790 $ 821,809
=========== ==========
LIABILITIES AND EQUITY
Liabilities
Debt, net $ 307,071 $ 266,538
Intangible lease liabilities,
net 14,050 14,735
Accounts payable and accrued
liabilities 21,518 17,858
----------- ----------
Total liabilities 342,639 299,131
----------- ----------
Equity
FrontView REIT, Inc. equity
Common Stock, $0.01 par value
450,000,000 shares
authorized, 21,267,861 shares
issued and outstanding as of
September 30, 2025 212 173
Additional paid-in capital 405,222 331,482
Accumulated deficit (19,285) (6,834)
Accumulated other
comprehensive loss (938) --
----------- ----------
Total FrontView REIT, Inc.
equity 385,211 324,821
Non-controlling interests 118,940 197,857
----------- ----------
Total equity 504,151 522,678
----------- ----------
Total liabilities and equity $ 846,790 $ 821,809
=========== ==========
FRONTVIEW REIT INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) (Unaudited) (in thousands, except share and per
share amounts)
Predecessor Predecessor
Successor (1) Successor (1)
For the three months ended For the nine months ended
September 30, September 30,
-------------------------- --------------------------
2025 2024 2025 2024
----------- ------------ ----------- ------------
Revenues
Rental revenues $ 16,602 $ 14,533 $ 50,206 $ 44,160
Interest income
on mortgage
loans
receivable 156 -- 164 --
Other income 45 1 230 243
---------- ----------- ---------- -----------
Total revenues 16,803 14,534 50,600 44,403
Operating
expenses
Depreciation and
amortization 7,351 7,119 24,622 21,415
Property
operating
expenses 2,209 2,003 7,299 5,694
Property
management
fees -- 494 -- 1,501
Asset management
fees -- 1,034 -- 3,102
General and
administrative
expenses 3,112 697 9,230 2,059
---------- ----------- ---------- -----------
Total operating
expenses 12,672 11,347 41,151 33,771
Other expenses
(income)
Interest expense 4,564 6,463 13,708 19,755
Gain on sale of
real estate (7,583) -- (9,244) (337)
Impairment loss 1,551 -- 4,957 591
Income taxes 52 63 348 344
---------- ----------- ---------- -----------
Total other
expenses (1,416) 6,526 9,769 20,353
---------- ----------- ---------- -----------
Net income (loss) 5,547 (3,339) (320) (9,721)
Less: Net loss
attributable to
convertible
non-controlling
preferred
interests -- 908 -- 2,652
Less: Net
(income) loss
attributable to
non-controlling
interests (1,532) -- 601 --
---------- ----------- ---------- -----------
Net income (loss)
attributable to
NADG NNN
Property Fund LP
(Predecessor)
and to FrontView
REIT, Inc.
(Successor) $ 4,015 $ (2,431) $ 281 $ (7,069)
========== =========== ========== ===========
Weighted average
number of common
shares
outstanding
Basic 20,723,471 -- 19,071,703 --
========== =========== ========== ===========
Diluted 27,834,670 -- 27,828,225 --
========== =========== ========== ===========
Net income
(loss) per share
attributable to
common
stockholders
Basic $ 0.19 $ -- $ (0.01) $ --
========== =========== ========== ===========
Diluted $ 0.19 $ -- $ (0.01) $ --
========== =========== ========== ===========
Comprehensive
income (loss)
Net income (loss) $ 5,547 $ (3,339) $ (320) $ (9,721)
Other
comprehensive
income (loss)
Change in fair
value of
interest rate
swaps 37 -- (1,474) --
---------- ----------- ---------- -----------
Comprehensive
income (loss) 5,584 (3,339) (1,794) (9,721)
Less:
Comprehensive
loss
attributable to
convertible
non-controlling
preferred
interests -- 908 -- 2,652
Less:
Comprehensive
(income) loss
attributable to
non-controlling
interests (1,542) -- 1,163 --
---------- ----------- ---------- -----------
Comprehensive
income (loss)
attributable to
NADG NNN
Property Fund LP
(Predecessor)
and to FrontView
REIT, Inc.
(Successor) $ 4,042 $ (2,431) $ (631) $ (7,069)
========== =========== ========== ===========
(1) The Company determined that earnings per unit in the Predecessor
period would not be meaningful to users of this filing, given the
different unitholders in the Predecessor.
Reconciliation of Non-GAAP Measures
The following is a reconciliation of net income (loss) (which is the most comparable GAAP measure) to FFO and AFFO:
Successor Predecessor Successor Predecessor
For the three months ended For the nine months ended
September 30, September 30,
-------------------------- --------------------------
(unaudited, in
thousands,
except per
share amounts) 2025 2024 2025 2024
---------- ------------- ---------- -------------
Net income
(loss) $ 5,547 $ (3,339) $ (320) $ (9,721)
Depreciation on
real property
and
amortization
of real estate
intangibles
(1) 7,351 7,119 24,622 21,415
Gain on sale of
real estate (7,583) -- (9,244) (337)
Impairment loss 1,551 -- 4,957 591
--------- --------- --------- ---------
Funds from
Operations
("FFO") $ 6,866 $ 3,780 $ 20,015 $ 11,948
--------- --------- --------- ---------
Diluted Weighted
Average Shares
Outstanding 27,835 -- 27,828 --
FFO per share $ 0.25 $ -- $ 0.72 $ --
Straight-line
rent
adjustments (52) (187) (460) (964)
Amortization of
financing
transaction
and discount
costs 404 1,053 1,199 3,145
Amortization of
above/below
market lease
intangibles
(2) 652 423 2,304 1,338
Stock-based
compensation 750 -- 1,565 --
Lease
termination
fees (3) -- (747) -- (1,384)
Adjustment for
structuring
and public
company
readiness
costs 50 440 340 514
Other
non-recurring
expenses (4) 159 14 1,123 59
--------- --------- --------- ---------
Adjusted Funds
from Operations
("AFFO") $ 8,829 $ 4,776 $ 26,086 $ 14,656
========= ========= ========= =========
Diluted Weighted
Average Shares
Outstanding 27,835 -- 27,828 --
AFFO per share $ 0.32 $ -- $ 0.94 $ --
(1) Includes write-offs of intangibles of $1.6 million for the nine months
ended September 30, 2025 and $0.3 million for the nine months ended
September 30, 2024.
(2) Includes write-offs of $0.4 million for the nine months ended
September 30, 2025.
(3) In 2025, lease termination fees are not adjusted for AFFO purposes.
2024 AFFO figures included an adjustment for lease termination fees.
(4) Other non-recurring expenses include one-time legal expenses, deal
pursuit costs and other non-recurring items.
Our reported results and net earnings per diluted share are presented in accordance with GAAP. We also disclose FFO and AFFO, each of which are non-GAAP measures. We believe these non-GAAP financial measures are industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure, and should be considered in addition to, and not in lieu of, GAAP financial measures.
We compute FFO in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines FFO as GAAP net income or loss adjusted to exclude net gains (losses) from sales of certain depreciated real estate assets, depreciation and amortization expense from real estate assets, gains and losses from change in control, and impairment charges related to certain previously depreciated real estate assets. To derive AFFO, we modify the Nareit computation of FFO to include other adjustments to GAAP net income related to certain non-cash or non-recurring revenues and expenses, including straight-line rents, cost of debt extinguishments, amortization of lease intangibles, amortization of debt issuance costs, amortization of net mortgage premiums, (gain) loss on interest rate swaps and other non-cash interest expense, realized gains or losses on foreign currency transactions, Internalization expenses, structuring and public company readiness costs, extraordinary items, and other specified non-cash items. We believe that such items are not a result of normal operations and thus we believe excluding such items assists management and investors in distinguishing whether changes in our operations are due to growth or decline of operations at our properties or from other factors.
Our leases typically include cash rents that increase through lease escalations over the term of the lease. Our leases do not typically include significant front-loading or back-loading of payments, or significant rent-free periods. Therefore, we find it useful to evaluate rent on a contractual basis as it allows for comparison of existing rental rates to market rental rates. We further exclude costs or gains recorded on the extinguishment of debt, non-cash interest expense and gains, the amortization of debt issuance costs, net mortgage premiums, and lease intangibles, realized gains and losses on foreign currency transactions, Internalization expenses, and structuring and public company readiness costs, as these items are not indicative of ongoing operational results. We use AFFO as a measure of our performance when we formulate corporate goals.
FFO is used by management, investors, and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers, primarily because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that AFFO is a useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by one-time cash and non-cash revenues or expenses. FFO and AFFO may not be comparable to similarly titled measures employed by other REITs, and comparisons of our FFO and AFFO with the same or similar measures disclosed by other REITs may not be meaningful. FFO and AFFO should not be considered alternatives to net income as a performance measure or to cash flows from operations, as reported on our statement of cash flows, or as a liquidity measure, and should be considered in addition to, and not in lieu of, GAAP financial measures.
Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments to FFO that we use to calculate AFFO. In the future, the SEC, Nareit or another regulatory body may decide to standardize the allowable adjustments across the REIT industry and in response to such standardization we may have to adjust our calculation and characterization of AFFO accordingly.
The following is a reconciliation of net income which is the most comparable GAAP measure to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted NOI and Adjusted Cash NOI:
Three months ended September 30,
(unaudited, in thousands) 2025
---------------------------------
Net income 5,547
Depreciation and amortization 8,003
Interest expense 4,564
Income taxes 52
--------------------------------
EBITDA 18,166
--------------------------------
Gain on sale of real estate (7,583)
Impairment loss 1,551
--------------------------------
EBITDAre 12,134
Adjustment for current period
investment activity (1) 154
Adjustment for current period
disposition activity (2) (121)
Adjustment for non-cash compensation
expense (3) 750
Adjustment to exclude non-recurring
expenses (4) 209
Adjustment to exclude net write-offs
of accrued rental income 501
--------------------------------
Adjusted EBITDAre 13,627
General and administrative, net of
non-recurring 2,153
--------------------------------
Adjusted Net Operating Income ("NOI") 15,780
Straight-line rental revenue, net (559)
--------------------------------
Adjusted Cash NOI 15,221
================================
Annualized EBITDAre 48,536
Annualized Adjusted EBITDAre 54,508
Annualized Adjusted NOI 63,120
Annualized Adjusted Cash NOI 60,884
(1) Reflects an adjustment to give effect to all acquisitions during the
period as if they had been acquired as of the beginning of the
period.
(2) Reflects an adjustment to give effect to all dispositions during the
period as if they had been sold as of the beginning of the period.
(3) Reflects an adjustment to exclude non-cash stock-based compensation
expense.
(4) Reflects an adjustment to exclude non-recurring expenses, including
structuring and public readiness costs, lease termination fees, legal
one-time expenses, and other non-recurring income or expenses.
We compute EBITDA as earnings before interest, income taxes and depreciation and amortization. EBITDA is a measure commonly used in our industry. We believe that this ratio provides investors and analysts with a measure of our leverage that includes our operating results unaffected by the differences in capital structures, capital investment cycles and useful life of related assets compared to other companies in our industry. In 2017, Nareit issued a white paper recommending that companies that report EBITDA also report EBITDAre in financial reports. We compute EBITDAre in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as EBITDA (as defined above) excluding gains (loss) from the sales of depreciable property and provisions for impairment on investment in real estate. We believe EBITDA and EBITDAre are useful to investors and analysts because they provide important supplemental information about our operating performance exclusive of certain non-cash and other costs.
EBITDA and EBITDAre are not measures of financial performance under GAAP, and our EBITDA and EBITDAre may not be comparable to similarly titled measures of other companies. You should not consider our EBITDA and EBITDAre as alternatives to net income or cash flows from operating activities determined in accordance with GAAP.
We compute adjusted EBITDAre as EBITDAre for the applicable quarter, as adjusted to (i) reflect all investment and disposition activity that took place during the applicable quarter as if each transaction had been completed on the first day of the quarter, (ii) exclude certain GAAP income and expense amounts that we believe are infrequent and unusual in nature because they relate to unique circumstances or transactions that had not previously occurred and which we do not anticipate occurring in the future, (iii) eliminate the impact of lease termination fees from certain of our tenants, and (iv) exclude non-cash stock-based compensation expense. Annualized adjusted EBITDAre is calculated by multiplying adjusted EBITDAre for the applicable quarter by four, which we believe provides a meaningful estimate of our current run rate for all of our investments as of the end of the most recently completed quarter given the contractual nature of our long term net leases. You should not unduly rely on this measure as it is based on assumptions and estimates that may prove to be inaccurate. Our actual reported EBITDAre for future periods may be significantly different from our annualized adjusted EBITDAre.
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