Frontview REIT said it acquired 16 frontage properties in the third quarter for $50.6 million, paying a cash yield of 7.6%, up from the 7.5% year-to-date acquisition yield on 43 properties purchased for $142.6 million.
The company also sold five occupied properties for $17.1 million in the quarter at a cash yield of 6.6%. Year to date, it has sold 20 properties for $49.7 million, including 16 occupied properties, at a 6.9% cash yield.
That means the quarter’s acquisitions came in 100 basis points above the quarter’s sale yield, and 10 basis points above the year-to-date acquisition yield. The spread between what Frontview bought and sold in the quarter was 1.0 percentage point.
On the capital markets side, Frontview sold 9,373 shares of common stock on a forward basis under its at-the-market program at a weighted average gross price of $21.01 per share, generating about $0.2 million in gross proceeds. It also issued and settled 1,699,165 shares sold on a forward basis, raising $32.7 million in net proceeds.
In preferred stock activity, Frontview issued $20.0 million of Series A convertible preferred stock during the quarter. That brought total draws on the $75.0 million capacity to $45.0 million. Of the initial $25.0 million issued, one investor converted $6.7 million into 392,158 common shares during the quarter.
The company ended the period with 316 direct frontage properties across 35 states, up from its earlier portfolio expansion pace reflected in the quarter’s 16-property acquisition count and year-to-date total of 43 purchases. As a result of these announcements, the company's shares have moved -2.0% on the market, and are now trading at a price of $16.66. For the full picture, make sure to review FrontView REIT's 8-K report.
