FrontView REIT, Inc. (FVR) began trading on the NYSE on Wed 2 Oct 24

FrontView REIT Inc. is a Dallas-based landlord that focuses on businesses with stores in prominent locations. It owns so-called outparcels, properties that point directly onto high-traffic roads that are visible to consumers.

Illinois is its largest market.

• Sector(s): Real Estate
• Industry: REIT - Diversified
• HQ: Dallas, Texas
• https://www.frontviewreit.com

Ticker: FVR

Opened at $18.25, below the initial public offering price of $19 apiece. It sold 13.2 million shares in the IPO, raising $250.8 million.

With the U.S. Federal Reserve joining major economies in cutting interest rates, analysts expect REITs to be among the prime beneficiaries, as lower rates make financing real estate deals easier.

U.S. IPO market proceeds have totaled $26 billion in the first nine months of 2024, marking its best year since the IPO boom in 2021, according to data compiled by LSEG.

Cold storage provider Lineage, which marked the year's biggest stock market listing and the largest U.S. REIT IPO ever, went public in July and is trading slightly below its IPO price as of last close.

FrontView focuses primarily on investing in properties facing high-traffic roads that are highly visible to consumers. It holds a portfolio of 278 properties in the United States, with an occupancy rate of about 99%, as of June 30.

The company mainly seeks tenants whose business operations are service-oriented such as quick-service restaurants, automotive stores and dealers as well as medical and dental providers.

Founded in 2016 by Stephen Preston, FrontView's tenants include Starbucks, telecom company AT&T, Bank of America and drugstore chain operator Walgreens.

IPOs this week : Sept 30 - Oct 4, 24 (wk 40)

IPOs expected to price

• FrontView REIT (FVR) is expected to price its IPO and begin to trade next week. The Dallas-based company plans to raise $251 million and be valued at $508 million at the midpoint of its expected price range of $17 to $21. FrontView REIT is involved in acquiring, owning, and managing outparcel properties that are net leased to a diversified group of tenants. 

• Aerospace engine aftermarket services company StandardAero (SARO). StandardAero has filed to raise $100 million in an IPO, although the final figure could be higher.

• EV parts maker ZJK Industrial Co. (ZJK) is raising $6.3M by offering 1.3 million shares at a price range of $4.00 to $6.00.

Spinoffs 

• Curbline will start trading on the New York Stock Exchange under the ticker symbol CURB on October 1 after spinning off from SITE Centers (NYSE:SITC). Curbline is expected to be capitalized with $600 million of cash at the time of the spin-off in addition to a $400 million unsecured line of credit, a $100 million unsecured draw term loan, and no indebtedness. Notably, Curbline will be the first public real estate company exclusively dedicated to convenience properties, which are described as retail sites or strip malls without a big-box or grocery store to anchor them. 

• South Bow Corporation will begin trading as a standalone company after spinning off from TC Energy (TSX:TRP:CA). Shareholders will receive one new common share of TC Energy and 0.2 of a common share in South Bow Corporation in exchange for each common share of TC Energy held. After the business separation, TC Energy will continue to focus on natural gas pipeline infrastructure, power and energy business driven by nuclear and hydro energy storage, while South Bow will focus on the liquid pipeline business.