FrontView REIT aims to raise up to $277 mln in US IPO
Adds background throughout, financial details in paragraphs 6-7
Sept 24 (Reuters) -FrontView REIT, which invests in properties in prominent locations facinghigh-traffic roads, aims toraise as much as $277.2 million in its initial public offering in the United States, the real estate investment trustsaid on Tuesday.
The Dallas, Texas-based company - which had a portfolio of 278 properties across the United States with a 98.9% occupancy rate as of June end - isoffering 13.2 million shares in the$17-$21 range apiece, potentially valuing it up to $561.4 million.
FrontView'sIPO comes on the heels of cold storage giant Lineage's LINE.O $4.44 billion listing. Not only was it theyear's biggest stock market flotation and the largest U.S. REIT IPO ever, but it was also seen as a bellwether for IPOs in the United States.
Additionally,valuations of REITs are poised to be one of the major beneficiaries of the Federal Reserve beginning its long-awaited monetary policy easing cycle.
Proceeds from the IPO will be mainly used to pay down debt for FrontView, which counts wireless carrier Verizon VZ.N, pharmacy chain CVS CVS.N, automotive dealer Adams Auto Group, Wall Street giant Bank of America BAC.N and fast-food restaurant chain Wendy’s among its major clients.
Founded in 2016 by Stephen Preston, the company reported a 34% year-on-year jump in rental revenue to $29.9 million in the six months ended June 30.
Its funds from operations, a key performance measure for REITs, rose to $7.6 million in the first half of 2024, compared to $7.3 million a year earlier.
FrontView REIT will list on the New York Stock Exchange under the symbol "FVR".
Morgan Stanley, J.P. Morgan, Wells Fargo Securities, and BofA Securities are the lead underwriters for the offering.
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Anil D'Silva and Janane Venkatraman
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