FrontView REIT said it moved deeper into higher-quality markets in the second quarter, with top 100 MSA concentration rising to 77.5% from the prior period and top three tenant exposure falling to 7.5%.
Through May 31, the company acquired four properties for $11.9 million at a 7.5% cash yield and a weighted average lease term of 10.3 years. In the same period, it sold 10 properties for $22.8 million, including nine occupied assets, at a 7.2% cash yield. FrontView said it remained on track for $25.0 million in net investment in the second quarter and $100.0 million for 2026.
One of the most notable moves was a former Walgreens in Durham, North Carolina, which FrontView re-tenanted to Amazon. The 10,152-square-foot property sits on 1.2 acres and draws 22,966 average daily traffic in the Durham MSA, which has about 625,000 people. FrontView said the new lease was signed at approximately the same rent as the Walgreens lease, with 2% annual escalators and no tenant improvement contribution. Rent began in mid-May 2026.
The company also completed a major cleanup of its Dollar Tree exposure. It sold five Dollar Tree stores in May to an institutional buyer after selling other Dollar Tree assets earlier in the year, cutting Dollar Tree concentration from 3.1% of ABR to 1.8%. The remaining portfolio’s five-mile population tied to those assets rose from 65,545 to 94,537, and average daily traffic increased from 13,427 to 19,876. The Placer.ai score improved to 13.2 from 16.4, while the share of Dollar Tree assets in top 100 MSAs increased from 38.5% to 50.0%.
The Dollar Tree sales were completed at an average cap rate of 7.7%, producing a 3.7% gain on sale and a 9% unlevered IRR. FrontView said the six properties sold in 2026 were in tertiary markets, including Bourbonnais, Illinois; Stigler, Oklahoma; Vermillion, South Dakota; Hastings and Blair, Nebraska; and Whitewater, Wisconsin.
On the portfolio side, the company said its current Dollar Tree holdings now include eight stores in stronger locations such as Kissimmee, Florida; Panama City, Florida; West Columbia, South Carolina; Collinsville, Oklahoma; Auburn, Maine; Tifton, Georgia; Mission, Texas; and Warner Robins, Georgia. These assets carry a weighted average five-mile population of 94,537 and average daily traffic of 19,876.
FrontView also added Tim Mchugh, co-president and CFO of Welltower, to its board, and increased the number of independent directors to six. As a result of these announcements, the company's shares have moved 0.85% on the market, and are now trading at a price of $17.89. Check out the company's full 8-K submission here.
