Frontview REIT said it acquired four properties for $11.9 million in the quarter through May 31, producing a 7.5% cash yield and a weighted average lease term of 10.3 years, while selling 10 properties for $22.8 million, including nine occupied assets, at a 7.2% cash yield.
The company said it is on track to meet a second-quarter net investment target of $25 million and a 2026 target of $100 million.
Portfolio concentration shifted further toward larger markets, with top 100 MSA exposure rising to 77.5%. At the same time, top three tenant exposure fell to 7.5%.
Frontview also said it re-tenanted a vacant former Walgreens to Amazon in Durham, North Carolina. The 10,152-square-foot property sits on 1.2 acres and draws 22,966 average daily traffic, with 625,000 people in the Durham MSA. The company said Amazon signed a multi-year lease at about the same rent as the prior tenant, with 2% annual escalators and no tenant improvement contribution, and rent began in mid-May 2026.
The Walgreens replacement was presented as a major value move for the asset. Frontview said it originally bought the property in 2019 with about six years of Walgreens lease term remaining, and that the store had generated roughly $7.2 million in annual sales before Walgreens was acquired by Sycamore Partners.
Frontview also moved to shrink its Dollar Tree exposure. It sold five Dollar Tree properties in May to an institutional buyer after earlier selling three others, bringing the total sold in 2026 to eight. Those sales cut Dollar Tree’s share of ABR from 3.1% to 1.8%, while increasing the 5-mile population tied to the remaining Dollar Tree assets from 65,545 to 94,537 and average daily traffic from 13,427 to 19,876. The company said the remaining Dollar Tree portfolio’s average Placer.ai score improved from 16.4 to 13.2.
The Dollar Tree sales were completed at an average cap rate of 7.7%, generating a 3.7% gain on sale and a 9% unlevered IRR.
On the board, Frontview added Tim McHugh, co-president and CFO of Welltower, and increased the number of independent directors to six. As a result of these announcements, the company's shares have moved 1.41% on the market, and are now trading at a price of $17.99. For more information, read the company's full 8-K submission here.
