FrontView REIT, Inc. (FVR) 2026 Q1 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to FrontView REIT, Inc's first quarter 2026 earnings conference call. (Operator Instructions) I will now hand the conference over to Pierre Revol, Chief Financial Officer. Please go ahead.

各位好。感謝各位加入，歡迎參加 FrontView REIT, Inc 2026 年第一季財報電話會議。（接線員指示）現在我將把會議交給財務長 Pierre Revol。請開始。

Thank you, operator, and thank you, everyone, for joining us for FrontView's first quarter 2026 earnings call. I will be joined on the call by Steve Preston, Chairman and CEO. Before we get started, I would like to remind everyone that this presentation contains forward-looking statements. Although we believe these forward-looking statements are based on reasonable assumptions, they are subject to known and unknown risks and uncertainties that can cause actual results to differ materially from those currently anticipated due to several factors. I refer you to the safe harbor statement in our most recent filings with the SEC for a detailed discussion of the risk factors relating to these forward-looking statements.

謝謝接線員，也謝謝各位參加 FrontView 2026 年第一季財報電話會議。今天與會的還有董事長兼執行長 Steve Preston。在開始之前，我想提醒各位，本簡報包含前瞻性陳述。雖然我們相信這些前瞻性陳述係基於合理假設，但仍可能受到已知與未知風險及不確定性影響，導致實際結果因多項因素而與目前預期有重大差異。關於與這些前瞻性陳述相關的風險因素之詳細討論，請參閱我們最近向 SEC 提交文件中的安全港聲明。

This presentation also contains certain non-GAAP financial metrics. Reconciliation of non-GAAP financial metrics to most directly comparable GAAP metrics are included in the exhibits furnished to the SEC under Form 8-K, which include our earnings release, supplemental package and investor presentation. These materials are available on the Investor Relations page of our company website. With that, I'm now pleased to introduce Steve Preston. Steve?

本簡報亦包含若干非 GAAP 財務衡量指標。非 GAAP 財務衡量指標與最直接可比 GAAP 指標之調節表，已載於我們依 Form 8-K 向 SEC 提交的附件中，其中包括我們的財報新聞稿、補充資料包與投資人簡報。上述資料可於本公司網站的投資人關係頁面取得。接下來，我很高興介紹 Steve Preston。Steve？

Thank you, Pierre, and good morning, everyone. This quarter demonstrates the operational and portfolio advancements we have made over the last year. We have elevated the strength of the management team, enhanced our portfolio, deepened tenant and industry diversification and continued to focus on attractive markets with replaceable rents in high-profile street frontage locations.

謝謝你，Pierre，各位早安。本季展現了我們在過去一年於營運與投資組合方面所取得的進展。我們提升了管理團隊的實力、優化了投資組合、加深了租戶與產業的多元化，並持續聚焦於具吸引力的市場，在高能見度的臨街門面位置提供可替代的租金水準。

Since the IPO, we have reduced our largest tenant exposure to 3.1%, lowered our top 10 tenant concentration to 23% and reduced our restaurant exposure from 37% to under 23%. At the same time, we have invested in technology, data and processes that improve scalability and decision-making.

自 IPO 以來，我們已將最大單一租戶曝險降至 3.1%，將前十大租戶集中度降至 23%，並將餐飲類曝險由 37% 降至 23% 以下。同時，我們也投資於科技、數據與流程，以提升可擴展性與決策品質。

FrontView is in its strongest position since inception and is poised to deliver compounding growth. Our scalable real estate first strategy is focused on acquiring fungible frontage-based assets typically located in dense retail corridors where underlying land value provides downside protection.

FrontView 自成立以來目前處於最強勢的狀態，並已蓄勢待發以實現複利式成長。我們可擴展的「以不動產為先」策略，聚焦於收購具可替代性的臨街門面資產，通常位於高密度零售走廊，且其土地的內在價值可提供下行保護。

Today, 77% of our properties are located within a top 100 MSA, and our average five-mile population is 175,000 people, highlighting the vibrant desirable markets in which we own and operate real estate. Consistent with this strategy, we disclose each of our property locations through a Google Map links on the portfolio page of our corporate website. We also disclose every tenant and its ABR in our filings.

目前我們 77% 的物業位於全美前 100 大 MSA 之內，且平均五英里人口為 175,000 人，凸顯我們持有並營運不動產所在市場的活力與吸引力。與此策略一致，我們在公司網站投資組合頁面透過 Google Map 連結揭露每一處物業位置；我們也在申報文件中揭露每一位租戶及其 ABR。

I encourage investors to review these best-in-class disclosures, which provide detailed industry-leading visibility into the merits of our real estate, tenant credit, box sizes and portfolio diversification. As I mentioned last quarter, we will be featuring an acquisition each quarter on the front cover of our investor presentation.

我鼓勵投資人檢視這些同業最佳等級的揭露內容，這些資訊提供了業界領先的透明度，讓各位能深入了解我們不動產的優勢、租戶信用、店面（box）面積以及投資組合的多元化。如同我在上季提到的，我們將在每一季的投資人簡報封面呈現一筆收購案。

This quarter, we are highlighting a Jiffy Lube in Baton Rouge, Louisiana, the second largest MSA in the state and a top 100 MSA nationally. Jiffy Lube is a national automotive service brand and subsidiary of Shell USA with more than 2,000 locations across North America. We acquired the property at a 7.4% cap rate on a 10 year net lease.

本季我們重點介紹路易斯安那州巴吞魯日的一處 Jiffy Lube；該地為該州第二大 MSA，亦為全美前 100 大 MSA。Jiffy Lube 是全國性的汽車服務品牌，為 Shell USA 的子公司，在北美擁有超過 2,000 個據點。我們以 10 年期淨租約、7.4% 的資本化率（cap rate）收購該物業。

The site sits directly in front of a Walmart neighborhood market and across from Raising Canes with direct frontage on Coursey Boulevard and approximately 37,000 vehicles per day. At roughly $160,000 of annual rent, the rent basis is replaceable with arguable upside given the visibility, traffic counts and surrounding retail demand. We were able to acquire the asset at an attractive price and at a significant discount to market by accommodating a seller-specific timing requirement.

該基地位於 Walmart Neighborhood Market 正前方，對面為 Raising Cane’s，並臨 Coursey Boulevard，日車流量約 37,000 輛。以約 16 萬美元的年租金而言，該租金基礎具可替代性，且考量其能見度、車流量與周邊零售需求，仍有可論證的上行空間。我們能以具吸引力的價格、且相較市場有顯著折價取得該資產，係因我們配合了賣方特定的時程需求。

This acquisition demonstrates FrontView's reputation as a buyer that can solve problems for sellers and source transactions that are not widely marketed. To summarize, we bought a fungible asset with frontage with replaceable rent in a desirable retail node, all at an elevated cap rate relative to the market.

這筆收購展現了 FrontView 作為能為賣方解決問題的買方之聲譽，並能取得未被廣泛行銷的交易來源。總結而言，我們在理想的零售節點，以相對市場更高的資本化率買入一項具臨街門面、租金可替代、且具可替代性的資產。

Including this asset, we own three Jiffy Lubes, representing about 60 basis points of our ABR. In addition to this Jiffy Lube, I would also call your attention to the cover of our annual report, where we highlight another one of our properties, a two tenant building leased to Wells Fargo and T-Mobile. This is an A plus location across from a Walmart Supercenter in urban Dallas.

包含此資產在內，我們共持有三處 Jiffy Lube，約占我們 ABR 的 60 個基點。除這處 Jiffy Lube 外，也請各位留意我們年報封面所強調的另一處物業：一棟雙租戶建物，承租方為 Wells Fargo 與 T-Mobile。該物業位於達拉斯市區、Walmart Supercenter 對面，屬 A+ 地段。

The property is under-rented at $313,000 annual rent with over 6,000 square feet of rentable feet and is situated on approximately one acre of land on a corner with over 295,000 vehicles per day. This is emblematic of the type of real estate we are focused on securing.

該物業目前租金偏低，年租金為 313,000 美元，可出租面積超過 6,000 平方英尺，座落於約一英畝的轉角地，日車流量超過 295,000 輛。這正是我們致力於取得的那類不動產標的之縮影。

For the quarter, we acquired 10 properties for $34 million at an average cash cap rate of 7.5% and a weighted average lease term of 9.4 years. These acquisitions were consistent with the characteristics we target across the portfolio, including a median purchase price of $2.3 million and weighted average Placer.ai score of 26, indicating it's in the top 30% of the category within the state and a median rent per box of $170,000.

本季我們以 3,400 萬美元收購 10 處物業，平均現金資本化率為 7.5%，加權平均剩餘租期為 9.4 年。這些收購符合我們在整體投資組合中所鎖定的特徵，包括：購買價格中位數為 230 萬美元、加權平均 Placer.ai 分數為 26（代表在該州同類別中位於前 30%）、以及每個店面（box）的租金中位數為 170,000 美元。

With respect to acquisition cap rates, we anticipate Q2 '26, to settle around 7.3% to 7.4% with volumes generally in line with our guidance. We continue to see significant depth in the marketplace, particularly in smaller transactions where FrontView has real advantages. Since we are not dependent on larger transactions or portfolio deals, we rarely compete directly with large institutional buyers, REITs or private equity capital.

就收購資本化率而言，我們預期 2026 年第二季將落在約 7.3% 至 7.4%，交易量大致符合我們的指引。我們持續看到市場具有相當深度，尤其是在較小型的交易中，FrontView 具備明顯優勢。由於我們不依賴大型交易或投資組合型交易，我們很少與大型機構買方、REIT 或私募股權資金直接競爭。

This allows us to secure attractive transactions from multiple sources where our execution and reputation provide us with a competitive edge relative to other less sophisticated parties in the space. We are also seeing select development opportunities where our extensive retail development experience may allow us to achieve meaningful wider yields while maintaining a disciplined approach to risk.

這使我們能從多元來源取得具吸引力的交易；相較於此領域中其他較不成熟的參與者，我們的執行力與聲譽帶來競爭優勢。我們也看到部分精選的開發機會，憑藉我們豐富的零售開發經驗，或可在維持嚴謹風險紀律的同時，取得顯著更高的收益率。

Our team's decade of historical experience developing outparcels along with developing retail and large-format shopping centers makes us uniquely qualified to underwrite and evaluate development opportunities.

我們團隊在開發外圍地塊（outparcels）、零售與大型賣場型購物中心方面累積十年的歷史經驗，使我們具備獨特能力來進行開發機會的承作評估與審核（underwrite）。

This capability is already established at FrontView. We have completed several successful value-creating developments, including a Miller's Ale House to a Raising Canes, a Sleep Number to a seven Brew, a Burger King to a Chipotle, a Twin Peaks to a Jaggers and a Panda and a new Bank of America ground lease in front of our Walmart in Rochester.

這項能力在 FrontView 已經建立。我們已完成多個成功、能創造價值的開發案，包括：將 Miller’s Ale House 改為 Raising Cane’s、將 Sleep Number 改為 Seven Brew、將 Burger King 改為 Chipotle、將 Twin Peaks 改為 Jaggers、以及 Panda，並在我們位於羅徹斯特的 Walmart 前方新增一筆 Bank of America 的地面租賃（ground lease）。

Collectively, these projects created about $10 million of incremental value, representing an approximately 90% increase in value to our shareholders over and above our original purchase price. Although we do not currently have any third-party development assets under formal contract, we expect to begin a limited development program over the next few quarters and look forward to generating outsized risk-adjusted returns on these assets.

整體而言，這些專案創造了約 1,000 萬美元的增量價值，代表相較於我們原始購買價格，為股東帶來約 90% 的價值提升。雖然我們目前沒有任何第三方開發資產處於正式合約之下，但我們預期在未來幾季啟動一項規模有限的開發計畫，並期待在這些資產上創造超額的風險調整後報酬。

Regarding dispositions, we sold five properties for $10 million during the quarter at an average cash cap rate of approximately 6.9% for the occupied assets with a weighted average lease term of eight years. We sold a Dollar Tree at Vermillion, South Dakota, which did not align with our real estate first focus and an underperforming McAlister's Deli. Asset recycling is part of our strategy, and we expect dispositions to be incrementally focused on fine-tuning the portfolio and pruning less optimal locations and concepts.

關於處分方面，本季我們以 1,000 萬美元出售五處物業；就已出租資產而言，平均現金資本化率約為 6.9%，加權平均剩餘租期為 8 年。我們出售了位於南達科他州 Vermillion 的一處 Dollar Tree（不符合我們「以不動產為先」的聚焦方向），以及一處表現不佳的 McAlister’s Deli。資產汰換（asset recycling）是我們策略的一部分；我們預期後續處分將更著重於微調投資組合，並剔除較不理想的地點與業態。

Switching to the portfolio. We ended the quarter at approximately 99% occupancy with only four vacant assets. Importantly, our view of vacancy is shaped by the quality of the underlying real estate. Historically, when we have retenanted properties, we achieved rent spreads north of 110% of prior rent, which reinforces our willingness to be patient and pursue the right long-term outcome rather than defaulting to a quick sale. During the quarter, we successfully retenanted three expiring locations at CVS in Chicago, at Dollar Tree in Newark and at Twin Peaks in North Carolina.

接著談投資組合。我們在季末的出租率約為 99%，僅有四處資產空置。重要的是，我們對空置的看法取決於不動產本身的品質。歷史上，當我們為物業重新引進租戶（retenant）時，租金增幅（rent spreads）可達前期租金的 110% 以上，這也強化了我們願意保持耐心、追求正確的長期結果，而非預設採取快速出售的作法。本季我們成功為三處到期據點完成續租／換租：芝加哥的 CVS、紐瓦克的 Dollar Tree，以及北卡羅來納州的 Twin Peaks。

As highlighted on page 3 of our investor presentation, these transactions in total generated over 23% increases in rent relative to the prior tenants, reinforcing the embedded value of our real estate and the strength of our locations. These properties create a temporary drag in 2026 because repositioning takes time. However, the right answer is to be patient. By focusing on quality locations, fungible boxes and replaceable rents, we can generate stronger outcomes. These retenantings create meaningfully greater long-term value than simply selling the asset quickly and redeploying the proceeds.

如我們在投資人簡報第 3 頁所強調，這些交易合計使租金相較於前一位承租人提高超過 23%，進一步印證我們不動產的內含價值以及據點的強勁實力。由於重新定位需要時間，這些資產在 2026 年將造成短期拖累。然而，正確的做法是保持耐心。透過聚焦優質地段、具可替代性的標準化物件（fungible boxes）以及可替換的租金（replaceable rents），我們能創造更強的成果。相較於快速出售資產並重新部署資金，這些重新招租將帶來顯著更高的長期價值。

Over time, this approach enhances organic growth as our high-quality real estate appreciates. With multiple proven levers to create value, including active asset management, retenanting and accretive acquisitions, we are well positioned to generate returns both through growth and expertise, not simply relying on outside capital or market conditions. We are aligned with our shareholders, and we will continue to capitalize on value-enhancing opportunities, positioning us to outperform.

隨著時間推移，隨著我們的高品質不動產升值，這種做法將提升內生成長。我們擁有多項經驗證的價值創造槓桿，包括主動式資產管理、重新招租以及具增益性的收購，使我們能透過成長與專業能力創造報酬，而非僅仰賴外部資本或市場環境。我們與股東利益一致，並將持續把握能提升價值的機會，讓我們具備超越同業的定位。

With that, I'll turn the call over to Pierre to review the quarterly numbers and guidance. Pierre?

接下來，我把電話交給 Pierre，請他回顧本季數字與財測指引。Pierre？

Thanks, Steve. We had a strong operational quarter, driven primarily by improved cash NOI and accretive capital deployment. Our adjusted cash revenue, which excludes reimbursement income and noncash items, increased $707,000 sequentially to $16.3 million. The increase was driven by $75 million of acquisitions completed over the last two quarters as well as a $274,000 lease termination fee related to a dark take five property.

謝謝，Steve。我們本季營運表現強勁，主要受惠於現金 NOI 的改善以及具增益性的資本部署。我們的調整後現金營收（排除報銷收入與非現金項目）較前一季增加 707,000 美元至 1,630 萬美元。成長主要來自過去兩季完成的 7,500 萬美元收購，以及一筆與一處停業（dark）的 Take 5 物件相關的 274,000 美元租約終止費。

We subsequently sold the vacant asset for $1.7 million, generating close to a $700,000 gain over our original purchase price, highlighting the strength of our basis and underlying real estate. During the quarter, we enhanced our revenue disclosure by separately presenting other operating income, which includes termination fees, late fees and other miscellaneous income generated through active portfolio management. These amounts are a normal part of operating a diversified real estate portfolio, but they are more episodic than base rent or percentage rent.

我們隨後以 170 萬美元出售該空置資產，較原始購入價格產生接近 70 萬美元的收益，凸顯我們成本基礎（basis）與底層不動產的強度。本季我們也強化營收揭露，將其他營運收入單獨列示，其中包含終止費、滯納金及其他透過主動式投資組合管理所產生的雜項收入。這些金額是經營多元化不動產投資組合的正常組成，但相較於基本租金或百分比租金，其發生更具偶發性。

Although this level of detail is not commonly broken out by net lease REITs, we believe the additional transparency helps investors better understand the underlying drivers of our results. This change is consistent with our broader commitment to best-in-class disclosures and is reflected in our Form 10-Q and is highlighted in both our supplemental and investor presentation. Our non-reimbursable property costs decreased $385,000 sequentially to $263,000 or 1.6% of adjusted cash revenue compared to 4.2% last quarter.

雖然淨租賃 REIT 通常不會拆分到這種細節，但我們相信額外的透明度能幫助投資人更好理解我們業績的底層驅動因素。此變更與我們更廣泛的「同業最佳」揭露承諾一致，並已反映於我們的 Form 10-Q，亦在補充資料與投資人簡報中重點說明。我們不可報銷的物業成本較前一季下降 385,000 美元至 263,000 美元，約占調整後現金營收的 1.6%，相較上季為 4.2%。

This meaningful improvement was driven by improved occupancy, higher recovery income and the impact of portfolio optimization work completed in 2025. As Steve mentioned, we also have three properties currently being retenanted that contributed $181,000 of base rent in the first quarter. These three properties have already been leased to four tenants with the majority of the rent commencements staggered over the next 12 to 18 months.

這項顯著改善主要來自入住率提升、更高的回收收入，以及 2025 年完成的投資組合優化工作的影響。如 Steve 所提，我們目前也有三處物件正在重新招租，第一季貢獻 181,000 美元的基本租金。這三處物件已出租給四位承租人，且多數租金起算日將在未來 12 至 18 個月內分階段開始。

Once stabilized, we expect quarterly rent from these assets to increase to approximately $225,000. First quarter cash NOI benefited from termination income, rent from the three properties currently being retenanted and unusually low property cost leakage relative to the 2.5% to 3% range we anticipate for 2026.

待穩定後，我們預期這些資產的季度租金將提高至約 225,000 美元。第一季現金 NOI 受惠於終止收入、目前正在重新招租的三處物件租金，以及相較於我們預期 2026 年 2.5% 至 3% 區間而言異常偏低的物業成本漏損（leakage）。

After normalizing for these items, second quarter run rate cash NOI on the current portfolio would approximate $15.7 million before the incremental benefit from the recently executed retenanting leases or approximately $700,000 lower than Q1 actuals. Our adjusted cash G&A was $2.4 million, consistent with prior quarter.

若將上述項目常態化，則以目前投資組合計算，第二季的現金 NOI 期初運行水準（run rate）約為 1,570 萬美元，尚未包含近期已簽署之重新招租租約帶來的增量效益，約較第一季實際值低 70 萬美元。我們的調整後現金 G&A 為 240 萬美元，與前一季一致。

As we continue to grow our asset base, we have meaningful opportunity to create operating leverage by building the business the right way through disciplined processes, better data and technology and a platform that can scale with limited incremental G&A.

隨著我們持續擴大資產規模，我們有相當大的機會透過以正確方式打造業務來創造營運槓桿，包括嚴謹流程、更佳數據與科技，以及可在有限新增 G&A 下擴張的營運平台。

Beginning last fall, we began investing in select technology partnerships, enterprise licenses, data analytics and workflow applications to improve the efficiencies and operations of our business. These investments are building blocks in our effort to create an AI-native net lease REIT.

自去年秋季起，我們開始投資於特定科技合作夥伴、企業授權、數據分析與工作流程應用，以提升營運效率與業務運作。這些投資是我們打造「AI 原生（AI-native）」淨租賃 REIT 的基石。

Importantly, these tools and process changes are not a substitute for real estate judgment. They complement the deep real estate experience built over decades as private developers or what we often refer to as our developer DNA.

重要的是，這些工具與流程變革並非用來取代不動產判斷；它們是對我們數十年累積的深厚不動產經驗的補充——我們常稱之為「開發商 DNA」。

Our objective is to build scalability, improve decision-making, enhance risk management and drive efficiency with an emphasis on data analytics. Turning to the balance sheet. Our revolver balance decreased modestly to $114 million, and our cash interest expense declined $86,000 sequentially to $3.8 million.

我們的目標是建立可擴展性、改善決策、強化風險管理並提升效率，並以數據分析為核心。接著談資產負債表。我們的循環信貸（revolver）餘額小幅下降至 1.14 億美元，現金利息費用較前一季下降 86,000 美元至 380 萬美元。

Net debt to annualized adjusted EBITDAre improved by 0.3 of a turn to 5.3 times, while LTV fell to 32.6% and our fixed charge coverage ratio remains strong at 3.5 times. Including the remaining $50 million of available convertible preferred equity capacity, adjusted net debt to annualized adjusted EBITDAre was 4.4 times.

淨負債對年化調整後 EBITDAre 的倍數改善 0.3 倍至 5.3 倍，同時 LTV 降至 32.6%，固定費用覆蓋倍數仍維持強勁，為 3.5 倍。若納入剩餘 5,000 萬美元可用的可轉換優先股權（convertible preferred equity）額度，調整後淨負債對年化調整後 EBITDAre 為 4.4 倍。

We also announced a quarterly dividend of $0.215 per share, which represents a 63.2% AFFO payout ratio. This is our lowest payout ratio since becoming a public company and provides more free cash flow to fund higher growth. Turning to guidance.

我們也宣布每股 0.215 美元的季度股利，對應 63.2% 的 AFFO 配發率。這是我們成為上市公司以來最低的配發率，並可提供更多自由現金流以支持更高成長。接著談財測指引。

We are maintaining our fully funded net investment target of $100 million and raising our AFFO per share guidance range to $1.29 to $1.33. At the midpoint, this represents 5% year-over-year growth and the high end, approximately 7% growth. The increase in AFFO per share guidance is primarily driven by our strong first quarter operating results and continued portfolio performance to date.

我們維持已完全到位資金（fully funded）的淨投資目標 1 億美元，並將每股 AFFO 指引區間上調至 1.29 至 1.33 美元。以中位數計，代表年增 5%；以區間上緣計，約為 7% 成長。每股 AFFO 指引上調主要受惠於第一季強勁的營運成果，以及截至目前持續良好的投資組合表現。

We remain disciplined in capital allocation and our fully funded investment target provides meaningful visibility into our ability to grow, while maintaining a conservatively levered balance sheet and dividend policy. As we said before, our smaller size is a structural advantage.

我們在資本配置上仍維持紀律，而已完全到位資金的投資目標，讓市場能更清楚看見我們在維持保守槓桿的資產負債表與股利政策下的成長能力。如同先前所說，我們較小的規模是一項結構性優勢。

With only $100 million of net investment, we can generate elevated AFFO per share growth while remaining disciplined in our capital allocation criteria. Our cash flow per share growth is built on frontage focused portfolio that is intentionally diversified across tenants and industries that concentrated in the attributes that matter most as real estate investors, targeting top 100 MSAs, fungible boxes and replaceable rents.

只要 1 億美元的淨投資，我們就能在維持資本配置標準紀律的同時，創造更高的每股 AFFO 成長。我們的每股現金流成長建立在以臨路面（frontage）為核心的投資組合之上，並刻意在承租人與產業間分散，同時聚焦作為不動產投資人最重視的關鍵屬性：鎖定前 100 大都會統計區（MSAs）、具可替代性的標準化物件（fungible boxes）以及可替換的租金（replaceable rents）。

When combined with our discount to NAV, our growth profile is not yet reflected in our forward AFFO per share multiple. To help frame that disconnect, we included pages 24 and 25 in our investor presentation, which compares FrontView's growth, diversification and valuation relative to peers. FrontView's growth profile is already among the most competitive in net lease sector, while our AFFO multiple relative to growth remains among the lowest.

再加上我們相對 NAV 的折價，我們的成長輪廓尚未反映在前瞻每股 AFFO 倍數中。為了協助說明這種落差，我們在投資人簡報第 24 與 25 頁納入比較，對照 FrontView 與同業在成長、分散度與估值上的差異。FrontView 的成長輪廓已屬淨租賃產業中最具競爭力之一，但我們的 AFFO 倍數相對於成長仍是最低之一。

In our view, that gap does not reflect the quality of the real estate we own, the multiple avenues that drive FrontView's growth or the long-term value creation embedded in the portfolio. With that, I'll turn the call over to the operator to open it up for Q&A. Operator?

我們認為，這個差距並未反映我們所持有不動產的品質、推動 FrontView 成長的多元途徑，或投資組合中所蘊含的長期價值創造。接下來我把電話交給主持人，開放問答。主持人？

(Operator instructions)

（主持人指示）

Anthony Paolone, JPMorgan Chase.

Anthony Paolone，摩根大通（JPMorgan Chase）。

Great. Thanks. Good morning, everybody. My first question is, you brought up the idea of looking at development deals. Can you maybe expand on that a little bit and give us a sense as to what order of magnitude you're looking at right now, your partners might be, how you might structure these sorts of things? Just a little bit more detail there would be great.

很好，謝謝。各位早安。我第一個問題是，你們提到考慮開發型交易的想法。你能否再多展開說明一下，讓我們了解你們目前所看的規模大概會是什麼量級、可能的合作夥伴會是誰，以及你們可能會如何架構這類交易？如果能多一些細節就太好了。

Yeah, sure. Anthony, thank you. Good question. I'll start with as a management team, we've been historically involved in significant retail development activities. We're going to look to develop when risk is mitigated.

好的，當然。Anthony，謝謝。這是個好問題。我先從這點開始：作為管理團隊，我們過去一直深度參與大量零售開發活動。我們會在風險已被降低的情況下，尋求進行開發。

And certainly, that will mean that we've got a signed lease, that we've got entitlements in place, that means like your site plan is in place. We've got costs in place through a general contracting contract. And we've got, of course, zoning and then we're going to have building permits in tow as well. We're going to start small. We think that it's going to be small capital allocations.

而且當然，這將意味著我們已經簽署租約、相關權利許可已到位，也就是說你的基地配置圖（site plan）已經就緒。我們也已透過總承包合約把成本鎖定下來。當然，我們也已完成分區（zoning），接下來也會把建築許可（building permits）一併辦妥。我們會先從小規模開始。我們認為資本配置會是小額的。

It may be $1 million to $3 million of equity for any one transaction. And ultimately, it's very important that we want to make sure that we've got sufficient spreads. I mean that's certainly why you're doing development in the first place built into the project.

單筆交易的股權投入可能是100萬到300萬美元。最終，非常重要的是，我們要確保有足夠的利差（spreads）。我的意思是，這當然也是你一開始做開發、在專案中內建報酬的原因。

And so we expect that we'll be doing our own development and that we'll be developing with sophisticated partners as well and expecting somewhere between 100 basis points to 200 basis points of spread built into the project. I think it's also important to note too, that development is certainly not new to FrontView as well.

因此我們預期會自行開發，也會與成熟、專業的合作夥伴共同開發，並期望在專案中內建約100到200個基點的利差。我也認為同樣重要的是要指出，對FrontView而言，開發也絕非新事。

We've already completed several developments in our portfolio. We've completed a Miller's Ale to a Raising Canes, a Burger King to a Chipotle. We did a Sleep Number to a seven Brew. Of course, the Twin Peaks that we've been talking about to two separately plotted tenants, Jaggers and a Panda. And then ultimately, we created a Bank of America in our Walmart Rochester outparcel from scratch under vacant land.

我們在投資組合中已完成數個開發案。我們把一間Miller's Ale改成Raising Canes，把Burger King改成Chipotle。我們把Sleep Number改成7 Brew。當然，還有我們一直在談的Twin Peaks，改成兩個分割地塊的租戶：Jaggers和Panda。最後，我們也在Walmart Rochester的外圍地塊（outparcel）上，從零開始在一塊空地上打造了一間美國銀行（Bank of America）。

So we're very suitable and ready to embark upon a development program. And these activities, too, I think, that is important to note have brought about $10 million of value increase over and above our purchase price across those assets. So this can be a good engine for us and very accretive. And again, we're going to take it slow in the beginning.

所以我們非常適合、也已準備好啟動一個開發計畫。而且我認為也很重要的一點是，這些活動在上述資產上，為我們帶來了約1,000萬美元、超出購買價格之上的價值提升。因此這可以成為我們很好的引擎，且具高度增益性（accretive）。同樣地，我們一開始會放慢步調。

I would just add to that, Tony, the legacy of the company as a developer goes back even in the NADG days, they were partners with Kimco and a lot of projects as well. There's a lot of understanding on how these partnerships work. And then both Steve and the team here has these relationships with these developers have done it for a very long time. And that's why it sort of makes sense if you find the right partnership, the right deal with the right real estate qualities that we're pursuing.

Tony，我再補充一下，公司的開發商傳承甚至可以追溯到NADG時期，當時他們也與Kimco在許多專案上合作。大家對這類合作模式如何運作有很深的理解。而且Steve以及這裡的團隊，與這些開發商的關係也建立很久、合作多年。這也是為什麼只要找到合適的合作夥伴、合適的交易，以及我們所追求的、具備正確不動產特質的標的，這樣做就很合理。

Okay, thank you for all that color there. And then just my second question is on the leasing side. You guys seem to be off to a good start there. Can you maybe just give us a little bit of a look ahead and anything you're picking up in terms of potential known move-outs or how things are going as you look out through 2027?

好的，謝謝你提供這麼多細節。那我第二個問題是關於租賃端。你們看起來進展不錯。你們能否談談接下來的展望，以及你們是否觀察到任何可能已知的退租（move-outs），或是你們在展望到2027年時，整體情況如何？

Yeah, I think that's maybe kind of like a, call it, a credit watch list or call it sort of a bad debt question. And everything feels pretty good right now as we look forward. We have the watch list. I think it's pretty minimal.

是的，我想那可能有點像是——可以說是信用觀察名單（credit watch list），或是比較像壞帳（bad debt）相關的問題。就我們目前往前看，一切感覺都相當不錯。我們確實有觀察名單，但我認為規模非常小。

Again, coming from last quarter as well, we've got no material changes or additions to that watch list, seems very healthy. We've got -- I think it's similar. We're watching a Go Health, the Sleep Number, maybe a couple of small urgent cares and a couple of gas stations. But otherwise, it feels pretty good. We've worked through the pharmacy throughout the portfolio, and that exposure is roughly about 2% or less.

同樣地，延續上一季，我們的觀察名單沒有任何重大變動或新增，看起來非常健康。我們——我想差不多。我們在觀察Go Health、Sleep Number，可能還有幾家小型急診照護（urgent cares）以及幾個加油站。但除此之外，整體感覺很好。我們已在整個投資組合中處理過藥局（pharmacy）相關議題，而該曝險約為2%或更低。

And then our total Sleep Number exposure is roughly 70 basis points across all three. And sort of just extrapolate a little bit on that, I'm sure someone else asked this as well. But we expect sort of that bad debt to be in that 50 basis points. And it's really right now, very little is known. And so mostly, it's about the sort of the unknown at this point.

另外，我們對Sleep Number的總曝險在三個據點合計約70個基點。再稍微延伸一下，我相信也有人問過：我們預期壞帳大概會落在50個基點左右。而目前其實已知的資訊非常少，所以主要是針對此刻的「未知」在做管理。

And then in terms of just the lease expirations, like we have 10 expirations coming up, and there's nothing really in there that we expect to be problematic. We have a couple of vacancies. We have four properties. We're working through those. I think that we talked about Smokey Bones last quarter.

至於租約到期方面，我們有10個租約即將到期，其中沒有任何我們預期會有問題的。我們有幾個空置物件，共四處，我們正在處理。我想我們上季有提到Smokey Bones。

We did sign a lease. We're working to sign a lease on that one, and we have a Walgreens as well that we're working to sign the lease. And so those would be potential pickups as we look forward, but we feel very comfortable around the expiration schedule.

我們確實已簽了一份租約。我們正在推進把那一處的租約簽下來；另外還有一間Walgreens，我們也正在推進簽約。因此，往前看這些可能會帶來一些進展（pickups），但對於到期時程我們感到非常安心。

Yes, actually, we have -- that will be a good one. The Smokey, that's an asset that we decided to take our time on, and that's going to -- looking like it's going to become two tenants as well. So again, the virtues of the real estate that we buy and the demand that tenants have for this real estate.

是的，實際上，我們有——那會是一個很好的案例。Smokey那個資產我們決定慢慢來，而它看起來也會——看起來會變成兩個租戶。同樣地，這也反映出我們所購買不動產的優勢，以及租戶對這類不動產的需求。

And then that one other Walgreens that closed, we've got hopefully a good tenant that's going to backfill that we're very close to finalizing that everyone will be very happy to hear and learn about. So again, very excited about our ability to continue to retenant and create very strong recapture rates relative to where we were prior.

另外，那間已關閉的Walgreens，我們希望有一個很好的租戶來補位（backfill），我們已非常接近定案；大家聽到、了解後都會很高興。所以再次強調，我們對於持續重新引進租戶（retenant）並創造相較於先前更強的租金回收率（recapture rates）的能力感到非常振奮。

Great. Thank you.

很好，謝謝。

Eric Borden, BMO Capital Markets.

Eric Borden，BMO資本市場。

Good morning. Thanks for taking my question. Just following up on the recapture rates and the lease expiration schedule. Just curious if you could help quantify the mark-to-market or recapture rate that you're hoping to achieve on the 10 lease expirations this year and then the 33 in the following year. Thank you.

早安。謝謝讓我提問。我想延續租金回收率（recapture rates）與租約到期時程的話題。想請教你們是否能協助量化一下：你們希望今年這10個到期租約，以及明年接續的33個到期租約，能達到的市價調整幅度（mark-to-market）或租金回收率大概是多少？謝謝。

Yeah, sure, of course. Yeah, just to expound upon the expirations, I'll start with that theme, which is accurate. We've got quality real estate. It's desirable, it's fungible and our portfolio is exceptionally diversified. We view these lease expirations, I think, as evidenced as opportunities for us, and we aren't looking to quickly sell these off before expiration.

好的，當然可以。針對到期租約我再多談一些，我先從這個主題延伸，因為你說得沒錯。我們擁有高品質的不動產；它很有吸引力、具可替代性（fungible），而且我們的投資組合高度分散。我們看待這些租約到期，我想如同所呈現的那樣，是我們的機會；我們並不打算在到期前急著把這些資產賣掉。

So for some context, Eric, since 2016, we have had 51 tenants renew. 45 have renewed to the same tenant, six renewing to a new tenant, and we're about 106% rental rate recapture and our overall renewal rate is about 90%. So the comment about '26, and coming up on '27, the tenants that are renewing are about to expire, they're in the top quartile in Placer. So they're performing well. In '26, we're already through half of the expirations, and we have increased rent income.

提供一些背景，Eric，自2016年以來，我們有51個租戶完成續約；其中45個是由同一租戶續約，6個是更換新租戶續約；我們的租金回收率約為106%，整體續約率約為90%。至於你提到的2026年、以及即將到來的2027年，這些續約或即將到期的租戶，在Placer的表現位於前四分位數，因此營運表現良好。2026年我們已經完成一半的到期處理，而且租金收入有所提升。

I think we only have about 9 left. So we expect '26 to, again, just like historicals be a very positive year. And then we expect '27, to follow that same suit, and we're already in discussions with a number of those tenants. So again, very real estate focused and tenant-driven based on that quality of real estate.

我想我們只剩下大約9個。因此我們預期2026年會——同樣地，就像歷史表現一樣——是非常正面的年度。而我們也預期2027年會延續同樣的趨勢，我們也已經與其中多位租戶展開討論。所以再次強調，這是非常以不動產為核心、並以租戶需求為驅動，建立在不動產品質之上。

And I'd also add, Eric, to point you to page 12 of our investor presentation, there are several stats here around the placers, the populations, but the one I'd call out is the median rent per box over the next five years of all the expirations is $156,000. So if you go to our website, you look at our boxes, you sort of know what's there. That's a very good basis.

另外，Eric，我也想請你參考我們投資人簡報第12頁，裡面有幾個關於Placer、人口等統計數據；但我想特別指出的是：未來五年所有到期租約的每個店面（per box）租金中位數是156,000美元。所以如果你到我們網站看我們的店面、了解裡面有哪些租戶，這是一個非常好的基礎。

So most people will renew as expected, but in the off chance of the 10% that may not renew or choose not to renew, maybe in '27, like we're going to be able to -- we'll be able to resolve that and get higher rents.

因此大多數人會如預期續約；但萬一有那10%不續約或選擇不續約的情況，可能是在2027年，我們將能夠——我們將能夠解決並取得更高的租金。

Thank you. I appreciate all the detail. My follow-up question is on the disposition spread over acquisitions that you achieved in the quarter, it was approximately 60 basis points. Just curious how repeatable is that spread as you look to complete your net investment goals this year? Thank you.

謝謝。我很感謝你提供的所有細節。我接下來的問題是關於你們本季在收購項目上所實現的處分利差（disposition spread over acquisitions），大約是60個基點。想請教，當你們今年要完成淨投資目標時，這個利差的可重複性有多高？謝謝。

Yeah, I would say very repeatable, and we'll just use historical data to hit that home. So far in the last -- in '25, and into '26, we have sold off about $86 million of property, and that's about a 6.97% cap rate is about average. And that's obviously considerably below where we're trading at close to an 8% or in the upper 7s. And those are the assets that we've sold off that are not our best assets. They're certainly not our Chipotle.

是的，我會說非常可重複，我們就用歷史數據來說明。到目前為止，在25年以及進入26年，我們已經出售了約8,600萬美元的物業，平均資本化率（cap rate）約為6.97%。而這顯然遠低於我們目前交易水準接近8%或7%高段的水準。這些是我們賣掉的、並非我們最好的資產；它們當然不是我們的Chipotle。

They're not our Raising Canes. They're not our Walmarts, they're not our Lowe's. These are assets that we sold off to optimize the portfolio. And just to give everyone a little bit of a flavor, just the types of assets that were sold off, Twin Peaks that filed for bankruptcy, Red Lobster, we sold off Ruby Tuesdays that was previously in bankruptcy, Cafe Rio, which has been closing off some stores. We've sold -- we sold off a dark Bojangles, and a Denny's franchisee.

它們不是我們的Raising Cane's。不是我們的Walmart，不是我們的Lowe's。這些是我們為了優化投資組合而出售的資產。為了讓大家更有概念，出售的資產類型包括：已申請破產的Twin Peaks、Red Lobster；我們也賣掉了先前曾破產的Ruby Tuesday；Cafe Rio（已關閉部分門市）。我們還賣掉了一間停業（dark）的Bojangles，以及一個Denny's加盟商的資產。

And if you kind of go through that list, not to keep everyone any longer, but again, these are not the best assets that we have in the portfolio, and they were sold off to optimize, and we certainly expect to continue with cap rates in that realm. And if we were to add in a couple of the hot assets, then you'd see that drop materially.

如果你把這份清單看一遍——不想再占用大家太多時間——但再次強調，這些都不是我們投資組合中最好的資產；它們是為了優化而出售的。我們也確實預期資本化率會持續落在這個區間。若我們再加入幾個熱門資產，那你會看到這個數字會明顯下降。

Ronald Kamdem, Morgan Stanley.

Ronald Kamdem，摩根士丹利。

Great. Maybe just start on -- staying on sort of the capital recycling. If you could talk a little bit more about just what the acquisition pipeline and cap rates, how those have been trending? And then just on the disposition side, clearly, there's always pruning to be done, but are you mostly through? Or how should we think about what's left to be sold?

很好。也許先從——延續資本循環（capital recycling）這個話題。如果可以的話，請多談談收購管線與資本化率的情況，以及它們的趨勢。然後在處分端，顯然總是需要修剪，但你們大致已經完成了嗎？或者我們應該如何看待接下來還剩下哪些要賣？

Yes, let me just start with the dispo. I think that the optimization is fairly close to complete. I think it's always prudent to be managing the portfolio. So we expect that we're going to continue to have dispositions, and we probably expect somewhere in the -- we were about 80 -- probably about $40 million to $50 million this year of dispositions in the aggregate, so down about half.

好的，我先從處分談起。我認為優化已經相當接近完成。我也認為持續管理投資組合一向是審慎之舉。因此我們預期仍會持續有處分；今年合計處分金額大概會在4,000萬到5,000萬美元左右，約為之前的一半（我們之前大概在8,000萬左右）。

With respect to cap rates, we were about 7.5%, I think, for the quarter. We -- the market is pretty stable. We expect we're sort of forecasting cap rates Q2 somewhere in that 7.3% range. Maybe similar to that, we think we usually try to only guide to 1 quarter, but similar to that probably in Q3. In the market, there is increased institutional interest just generally in net lease.

就資本化率而言，本季大約是7.5%。市場相當穩定。我們預期並在預測第二季資本化率大概在7.3%附近。可能也差不多——我們通常只嘗試指引一個季度——但第三季可能也會類似。市場方面，機構資金對淨租賃（net lease）的興趣整體上正在增加。

There is abundant -- I think we all know this, but there's really abundant amount of capital that's really setting the tone for the market. We play in a different market. Leverage for the smaller buyers is a little bit easier to obtain from some of the smaller banks and cap rates in the shopping center retail area have come in pretty significantly, not quite the same for our space. So we still feel very good again with that stable market.

資金非常充沛——我想大家都知道——確實有大量資本正在為市場定調。我們所處的是不同的市場。對較小的買家而言，從一些較小的銀行取得槓桿融資相對更容易；而購物中心零售領域的資本化率已經明顯下滑，但我們這個領域並沒有那麼一致。因此我們仍然對這個穩定的市場感到非常有信心。

I think also the 7.3% versus maybe some of the historical cap rates that we've seen, we're going to be focusing a little bit more on what we call sort of like good hot states like we've got Texas where there's increased population growth, Florida, Georgia, Arizona, et cetera.

我也認為，7.3%相較於我們過去看到的一些歷史資本化率，我們會更聚焦在我們所稱的「好的熱門州」，例如人口成長較快的德州、佛州、喬治亞州、亞利桑那州等等。

And cap rates can be a little bit tighter there. They're generally a little bit more friendly states from a landlord standpoint. And then to kind of like hit on your pipeline question, we've got a very strong deep pipeline. I would say that the pipeline has, at this point, which is expected Q2 sort of in tow.

在那些地方資本化率可能會更緊一些。從房東角度來看，那些州通常也更友善。再來回到你問的管線問題，我們有非常強而且很深的管線。我會說目前管線——如預期地——第二季的部分已經在進行中。

We've got Q3 right now is effectively set and in tow, and we're seeing a lot of great opportunities. I mean we're buying the same stuff that you see in our portfolio. We're buying great real estate with frontage that are low rents, we say typically from sort of motivated sellers or circumstantial sellers. Credit is solid. They are large operations that are long-term operating businesses.

我們現在第三季基本上也已經確定並在進行中，而且我們看到很多很好的機會。我的意思是，我們買的就是你在我們投資組合裡看到的同類型資產：臨路面（frontage）佳的優質不動產、租金偏低；我們通常是向有動機的賣方或因情境因素而出售的賣方購買。信用狀況穩健；他們是規模大的營運體，且是長期經營的企業。

And our market, Ron, is attractive and it's open to us. And just for a moment, just take a couple of the tenants that you can see that are in our pipeline. Hawaiian Brothers would be a new tenant. Burlington, we're looking -- is in our pipeline, new tenant. Bob's Furniture, a new tenant, Tropical Smoothie, we've got Spec's be a new tenant.

而且我們的市場，Ron，對我們很有吸引力，也對我們開放。稍微舉幾個你可以在我們管線中看到的承租戶：Hawaiian Brothers 會是新承租戶；Burlington——我們正在看——也在我們管線中，是新承租戶；Bob's Furniture 是新承租戶；Tropical Smoothie；我們還有 Spec's 也會是新承租戶。

We're looking at a PNC. These are just some examples, pair of veterinarian clinics that would be new tenants. We're looking at a Giant Eagle grocery store that would be a new tenant. So we're expanding and buying these great tenants and we call great markets with great real estate and great credit. And the market is there for us.

我們也在看PNC。這些只是一些例子；還有一對獸醫診所會是新承租戶。我們也在看一家Giant Eagle雜貨店，會是新承租戶。所以我們正在擴張，買進這些優質承租戶；我們稱之為在優質市場、搭配優質不動產與優質信用的交易。而市場對我們是存在的。

And we certainly have the ability if we wanted to, to increase the acquisition cadence. I think we established that availability when we first went public with about $100 million in a quarter. So right now, we have the $100 million with our capital in tow, and we're set for this year. But we certainly, -- from a market standpoint, can certainly expand that, Ron, if we needed to.

而且如果我們想要的話，我們確實有能力提高收購節奏。我想我們在剛上市時就建立了這種能力，當時單季大約可以做到1億美元。現在，我們的資本也已到位，單季1億美元的規模已在進行中，我們今年的安排也已就緒。但從市場角度來看，如果需要的話，我們當然可以擴大，Ron。

Great. Really helpful. And then for my follow-up, just on the guidance raise, could you just go through the pieces? Is it bad debt? Is it higher rents? Just quickly, just the guidance raise components.

很好，非常有幫助。那我的追問是關於上調指引：你能否把各個組成拆解一下？是壞帳？是租金更高？簡單快速說一下，上調指引的構成。

Yeah, Ron. So the guidance range is primarily driven by -- the portfolio is doing really well. If you think about what we put in the first quarter at $0.34 at the midpoint of the range, you're effectively doing $0.32, $0.33 in the remaining three quarters. We're not seeing any sort of issues in terms of the portfolio leasing. We don't have any dispositions that are required in terms of -- these are just portfolio optimizations, but nothing that's distressed.

好的，Ron。指引區間主要是由——投資組合表現非常好所驅動。若你看我們第一季在區間中點給的是每股0.34美元，等於剩下三個季度每季大概是0.32、0.33美元。我們在投資組合出租方面沒有看到任何問題。我們也沒有任何必須進行的處分——這些只是投資組合優化，但沒有任何是困境（distressed）處分。

And so we're seeing good things in the portfolio. We feel comfortable with the range. And with most of our bad debt just being unidentified reserves on the things that we're watching, we thought it was a good time to continue to move it forward.

因此我們在投資組合中看到的是正向的情況。我們對這個區間感到有信心。而且由於我們的大部分壞帳只是針對我們正在觀察事項所提列的未具名準備（unidentified reserves），我們認為現在是繼續把指引往前推進的好時機。

Jana Galan, Bank of America.

Jana Galan，美國銀行。

Hello, this is [Daniel Bion] for Yana. Just following up on the guidance range. Like you said, it kind of implies a 32% to 33% per quarter AFFO. So I guess just sequentially, how should we think about the cadence for the balance of the year? And then if there are any factors are expected -- sorry, what factors are expected to drive the implied moderation?

你好，我是代表Yana的[Daniel Bion]。我想追問一下指引區間。就像你說的，它大致意味著每季AFFO約為0.32到0.33美元。所以我想問，從序列（sequentially）的角度，我們應該如何看待今年剩餘期間的節奏？另外，是否有任何因素預期——抱歉——哪些因素預期會驅動這個隱含的放緩？

Sure, So in my prepared remarks, I walked you through the NOI components in terms of what was in place in the first quarter that will drop a bit into the second quarter. The other income that we called out these new -- those three tenants that expired that are retenanting. Those retenantings won't really impact '26, but will flow into 2027. But all in, that dropped the effective NOI from Q1 going into Q2 by $700,000.

當然。在我事先準備的發言中，我已帶大家走過NOI的各個組成，說明第一季已經到位、但在第二季會略為下滑的部分。我們提到的其他收入——那三個到期、正在重新招租（retenanting）的承租戶——這些重新招租不會真正影響26年，而是會在2027年反映出來。整體而言，這使得有效NOI從第一季進入第二季減少了70萬美元。

So when you think about the cadence in terms of AFFO per share growth, you would expect that sort of drop into Q2 from the $0.34. But then as we have these assets that are coming in being deployed and the rent escalators, it should increase from there to get within that $1.31 range where we have it at the midpoint.

所以當你從每股 AFFO 成長的節奏來看，你會預期從每股 0.34 美元在第二季會有那樣的下滑。但接著，隨著這些資產陸續到位並投入運用，加上租金調升條款，之後應該會回升，並落在我們以中點估算的 1.31 美元區間內。

Thank you. And just kind of sticking to the cadence, given where the current share price is and the maintenance of the net investment guidance, how should we be thinking about the timing of deployment of the remaining $50 million of the preferred capital?

謝謝。延續節奏這個話題，考量目前股價水準以及維持淨投資指引不變，我們應該如何看待剩餘 5,000 萬美元優先資本的部署時點？

So yes, it might be helpful to just go over that. So the preferred equity capital, we put in place last year on November 12, it was $75 million, 6.75% with a convertible feature of $17 a share, which we're over. That is -- we have until November 12 to call it. And so our idea was to hit our target of $100 million of acquisitions and fund it with the $75 million of equity capital this year. For two years after that final draw, so as late as November 2028, we cannot convert it.

是的，或許把這部分再說明一下會有幫助。這筆優先股權資本是我們去年 11 月 12 日設立的，金額 7,500 萬美元，利率 6.75%，並附有每股 17 美元的可轉換條款，而目前股價高於該水準。也就是說——我們可以在 11 月 12 日之前選擇贖回它。我們的想法是，今年要達成 1 億美元的收購目標，並以這 7,500 萬美元的股權資本來資助。今年最後一次提用之後的兩年內——最晚到 2028 年 11 月——它都不能被轉換。

And there might be a question of whether or not they would convert it, which is possible, but I would doubt that they would considering that the yield they're getting is 6.75% versus our dividend yield is much lower than that. But we're fully funded. I expect that we will match fund our acquisitions with the equity and some debt on a 25% LTV ratio as I talked about before. So our second quarter and our third quarter, as Steve mentioned, is pretty well built, and we will just time the deployment of that preferred equity to fund those deals.

另外可能有人會問他們是否會選擇轉換，這是有可能的，但我懷疑他們會這麼做，因為他們拿到的殖利率是 6.75%，而我們的股息殖利率遠低於此。不過我們的資金已經到位。我預期我們會以股權加上一些負債來對應資助收購，貸款價值比（LTV）約 25%，如我先前提到的。因此第二季與第三季，如 Steve 所說，規劃已相當完整，我們只會配合交易時點來部署這筆優先股權資金以資助那些案子。

John Massocca, B. Riley Securities.

John Massocca，B. Riley Securities。

Good morning. Maybe thinking about investment yields. I know you talked a little bit about where you want to see development spreads, I'm assuming relative to your cost of capital. But how could that kind of impact or maybe uplift the kind of historical cap rates you've seen on your more traditional investments?

早安。我想從投資收益率的角度來問。你提到一些你希望看到的開發利差，我猜是相對於你的資金成本。但這會如何影響，或可能拉升你在較傳統投資上歷來看到的資本化率（cap rates）？

Well, yes, so we would be -- when we're investing in the developments, we're going to be expecting to receive a preferred return as a beginning on the capital. And what we'll be able to do on the development side, too, with the spreads is end up acquiring assets that we wouldn't necessarily be able to acquire due to that spread.

是的，所以我們在投資開發案時，會預期先取得一個優先報酬，作為投入資本的起始回報。而在開發端，透過利差，我們也能最終取得一些資產——若沒有這個利差，我們未必能夠收購到。

So for example, if we were wanting to acquire a Chick-fil-A today at a five cap as much as we'd like to have a few Chick-fil-As in the portfolio, that doesn't necessarily make sense. But from a development standpoint, it's going to give us access to tenants that we couldn't otherwise be able to acquire because you add your spread in there of roughly 150 basis points to 200 basis points.

舉例來說，如果我們今天想以 5% cap 去收購一家 Chick-fil-A——雖然我們很希望投資組合裡能有幾家 Chick-fil-A——但那樣未必合理。但從開發的角度，它能讓我們接觸到一些原本無法收購的租戶，因為你可以把大約 150 到 200 個基點的利差加進去。

And then now you're putting a Chick-fil-A on the books in the high 6s or low 7s. And that's really a good accretive way to create value for the portfolio, a, to the stable cash flow, but b, we could then turn around, obviously, and sell that in the open market and then create that widened spread.

這樣一來，你就能以 6% 後段或 7% 初段的水準把 Chick-fil-A 記入帳上。這是一種非常具增益（accretive）的方式來為投資組合創造價值：一方面帶來穩定現金流；另一方面，我們也可以很明顯地在公開市場把它賣掉，進而實現擴大的利差。

Okay, that makes sense. And then as I'm thinking about the kind of rent roll-ups on the leasing activity, how much of that was tied to kind of replacing tenants that had credit issues? I'm assuming the Twin Peaks was kind of repositioning within that number. And was any of it just purely lease expirations where you felt you can get a better rent with a new tenant and therefore, didn't keep the old tenant in place?

好的，這樣就說得通了。接著我在想你們租賃活動中的租金上調（rent roll-ups），其中有多少是因為替換了有信用問題的租戶？我猜 Twin Peaks 在那個數字裡算是重新定位的一部分。另外，有沒有任何部分純粹是因為租約到期，你們覺得換新租戶可以拿到更高租金，因此沒有把原租戶留住？

I think it's a little bit of both. It's credit, it's lease expirations and then it's also being proactive and then getting ahead of where we think we may have something that could be a problem. Like our Miller's Ale House to Raising Canes, for example, that was a paying operating tenant. And we just, again, followed through and like understood that sales volumes were sort of not performing well.

我想兩者都有。有信用因素、有租約到期，另外也有我們主動提前因應，去處理我們認為可能會出問題的情況。比如說我們把 Miller's Ale House 換成 Raising Cane's，那原本是一個正常付租、仍在營運的租戶。我們只是——再次強調——跟進並了解其銷售量表現不佳。

We proactively reached out and worked through a buyout and then replaced that tenant with obviously Raising Canes ground lease, which was a huge uplift. So throughout the portfolio, it's a little combination of everything, and it's driven by that strong underlying real estate value and really the rents that we have that are low throughout the portfolio.

我們主動聯繫、協商買斷，然後以 Raising Cane's 的地租（ground lease）取代該租戶，租金大幅提升。因此在整個投資組合中，這是多種因素的組合，而背後驅動力是我們強勁的底層不動產價值，以及我們整體投資組合的租金水準普遍偏低。

I would just kind of highlight on the three we talked about. So the Twin Peaks, it was actually expiring in the first quarter. So we knew that, that was an expiring lease. We knew that they were doing so. So we did solve it before it expired, which is where we can add value.

我想特別點出我們提到的三個案例。Twin Peaks 其實是在第一季到期，所以我們知道那是一份即將到期的租約，也知道他們的狀況。因此我們在到期前就把問題解決了，這就是我們能創造價值的地方。

We know it's coming. We're monitoring them. And we saw they got 92% rent increase. But the other one is CVS, like we knew that the CVS was in Chicago. We knew it was doing -- we weren't sure if we're going to stay open or renew.

我們知道它會發生、我們在監控，也看到他們拿到了 92% 的租金調升。另一個是 CVS：我們知道那家 CVS 在芝加哥，我們知道它的營運——我們不確定它會不會繼續營業或續約。

They decided not to renew and we put in PATH USA getting 18 -- it's a childcare, it's getting 18% rent increase once that tenant goes in. And so it's about knowing what's coming and whether or not they're going to stay open or close. If you don't think they're going to renew, get ahead of it, figure out who's the best tenant to replace it.

他們決定不續約，而我們引進 PATH USA，租金提高了 18%——那是一家托育機構——在該租戶進駐後就能實現 18% 的租金增幅。所以重點在於掌握即將發生的事，以及他們會繼續營業還是關店。如果你認為他們不會續約，就要提前布局，找出最適合替換的租戶。

So when you think about broadly in net lease, a lot of times when -- people a lot of times talk about recapture and growth, but they miss the people that don't renew. The people -- for us, the ones that don't renew, we are actually finding opportunities to grow there, which ultimately leads to less like earnings going away because you have these leases that will come on later.

所以當你從更廣泛的淨租賃（net lease）角度來看，很多時候——人們常談租金回收（recapture）與成長，但他們忽略了那些不續約的人。對我們而言，那些不續約的租戶，反而讓我們找到成長機會，最終使得獲利流失更少，因為你會有這些租約在之後接續進來。

And it just goes into the fact that we have good real estate in good locations where you can find new tenants to replace these boxes, which will help us in 2027 and beyond.

這也回到一個事實：我們在好地點擁有好的不動產，因此能找到新租戶來替換這些店面，這將在 2027 年及之後幫助我們。

Yeah, it's really like it's a lot of proactive portfolio management. And again, it's our years of decades of experience in the real estate space, and it's our constant discussions that we have with tenants that allow us to get ahead of these renewals and the probabilities.

是的，這真的就是大量主動式的投資組合管理。同樣地，這來自我們在不動產領域數十年的經驗，以及我們與租戶持續不斷的討論，讓我們能提前掌握續約與其發生機率。

And it's the relationships that we have, too, that are very important with the real estate directors and also with the tenant rep brokers, so we can get a very good understanding of how a tenant is performing and then we make the appropriate decisions that way as well.

而我們的關係網也非常重要，包括與不動產主管（real estate directors）以及租戶代表經紀人（tenant rep brokers）的關係，讓我們能非常清楚了解租戶的經營表現，並據此做出適當決策。

I appreciate that color. Thank you.

謝謝你提供的補充說明。謝謝。

Daniel Guglielmo, Capital One Securities.

Daniel Guglielmo，Capital One Securities。

Hi, everyone. Thanks for taking my questions. We've talked a few times about development. But I do know over the past couple of years or so really since rates went up, it's been hard to get development investments to pencil. So I guess what has changed over the past few months around kind of that underwriting math that makes it more attractive?

嗨，各位。謝謝回答我的問題。我們談過幾次開發案。不過我也知道，過去幾年——或更精確地說，自從利率上升以來——開發投資很難算得過（pencil）。所以我想問，過去幾個月在承作評估（underwriting）的數學上有什麼改變，讓它變得更有吸引力？

Yeah, You're 100% spot on. Development absolutely does depend on the market and the cycle of cap rates for acquisitions, right? So as you can buy finished product at a higher cap rate, your development spreads begin to narrow. And then conversely, they widen when cap rates come in or they start to fall.

是的，你說得完全正確。開發確實取決於市場，以及收購資本化率（cap rates）的循環，對吧？當你能以更高的 cap rate 買到完工產品時，你的開發利差就會開始縮小；反過來，當 cap rates 收斂或開始下滑時，利差就會擴大。

So the timing needs to be right. And I think we've all seen certainly in the retail space, and we've talked about it, cap rates come in. And so it is an opportunity for us to create wider returns and accretive values in the development space without taking on very much additional risk.

所以時點必須正確。我想我們都看到，尤其在零售領域——我們也談過——cap rates 正在收斂。因此這對我們而言是一個機會：在開發領域創造更寬的報酬與具增益的價值，而不需要承擔太多額外風險。

And again, it's -- we're going to start small, and we're going to watch it, as you point out or I'm pointing out right now with that cycle of cap rates, but that's absolutely important. And that's effectively why it didn't work for the last several years.

再說一次，這——我們會從小規模開始，我們會觀察它，正如你指出的，或我現在指出的那樣，伴隨著資本化率（cap rates）的那個循環，但那絕對很重要。而這也正是為什麼過去幾年它沒有奏效。

Okay. Great. Yeah, that's very helpful. And then just on the transaction market, recently, what's been driving owners to sell the properties that you're acquiring? It would just be kind of a helpful refresher because you all do focus on niche property type with less competition.

好的。很好。是的，這非常有幫助。那再就交易市場來看，最近是什麼在驅動你們所收購資產的業主出售物業？這算是個有用的回顧，因為你們確實專注於競爭較少的利基型物業類型。

Yeah, it's just we -- the market is filled with individuals and unsophisticated sellers. That's just the nature of the market that we play in with very little institutional competition. I think we don't compete on like big portfolios. We don't really compete on large assets, generally vast marketed deals, which is an advantage for us.

是的，主要是我們——這個市場充滿了個人與不夠成熟的賣方。這就是我們所參與市場的本質，幾乎沒有機構型競爭。我想我們不太會在大型投資組合上競爭。我們一般也不會在大型資產、廣泛行銷的交易上競爭，這對我們來說是優勢。

Because we're buying those assets that are sub-$10 million, you don't have to deploy large sums of money. We're just -- we're up against these unsophisticated individuals, 1031 buyers that just make decisions for a variety of different reasons. It could be they just want to sell something. They need capital for something else. They're refinancing their house.

因為我們買的是 1,000 萬美元以下的資產，你不需要投入很大筆資金。我們——我們面對的是這些不夠成熟的個人、1031 買家，他們會因各式各樣的原因做決定。可能只是想賣掉某個資產；可能需要資金去做別的事；可能在為自住房再融資。

They're moving to Miami. There's a death in the family. These are a lot of the reasons why we continually see liquidity and turnover in the marketplace and then why we can, as a buyer, buy better than the other smaller groups because we don't need financing contingencies. We can close quickly. We're sophisticated, and that's why we tend to see elevated or wider spreads relative to the marketplace when we're acquiring an asset.

他們要搬去邁阿密。家裡有人過世。這些都是我們在市場上持續看到流動性與換手的許多原因；也因此我們作為買方，能比其他較小的團隊買得更好，因為我們不需要融資條件（financing contingencies）。我們可以快速成交。我們更專業，所以當我們收購資產時，通常會相對於市場看到更高或更寬的利差（spreads）。

Great. Thank you.

很好。謝謝你。

Matthew Erdner, JonesTrading.

Matthew Erdner，JonesTrading。

Hey, guys. Thanks for taking the question. You talked a little bit about the dispositions and kind of that part being somewhat pruned out by now. As you look to kind of refine that a little further, are there any geographic concentrations, Illinois kind of sticked out to me or certain sectors that you guys are looking to move out of?

嗨，各位。謝謝讓我提問。你們稍微談到處分（dispositions），以及那部分到現在大致已經被修剪得差不多了。當你們想再進一步精煉時，有沒有任何地理上的集中度——伊利諾伊州對我來說有點突出——或是某些產業別是你們想要退出的？

Yeah, it's interesting. Illinois does get a little bit of a bad wrap, but it's -- some of the suburbs in Illinois are some of the strongest suburbs that are out there in the country, and they're safe and there's vibrancy. But all that being said, we have brought Illinois in. And I think we're wanting to bring Texas up.

是的，這很有意思。伊利諾伊州確實有點被貼上負面標籤，但——伊利諾伊州的一些郊區其實是全國最強的郊區之一，而且安全、也很有活力。不過話說回來，我們確實已經把伊利諾伊州納入布局。而我想我們希望把德州的比重提高。

And so we're wanting to say that we think that Texas will be our number one state at some point. From an industry perspective, yes. First, we're always going to continue to keep diversification. That's a prime focus. Obviously, no matter what we're doing, we're focusing on real estate, the quality in our rents.

所以我們想說，我們認為德州在某個時間點會成為我們的第一大州。從產業角度來看，是的。首先，我們永遠會持續維持多元化，這是核心重點。顯然，不管我們在做什麼，我們都聚焦在不動產，以及我們租金的品質。

What we like, we like certain medical. We like a little bit of financial automotive, again, keeping diversity. We're adding a couple of vet clinics this quarter. Fitness, we like fitness, QSR, call it fast casual and then certainly some retail concepts. Fitness is generally, I mean, sitting in a pretty good place right now, coming back from post-COVID level, I think it's kind of exceeding.

我們喜歡的部分，我們喜歡某些醫療。我們也喜歡一點金融、汽車相關，再次強調維持多元化。我們這一季新增了幾家獸醫診所。健身——我們喜歡健身、QSR（速食餐飲），也就是所謂的 fast casual，當然還有一些零售概念。健身整體來說，我是說，目前處在相當不錯的位置，從 COVID 後的水準回升，我覺得甚至有點超越。

And then there's new concepts like Yoga and HIIT moving into the LA Fitnesses of the world. So they're performing well. Where we're being careful, I think this is a little bit of a new add for us, not that we have any high exposure to this at all, careful with gas. Just sort of you see that model sort of unfold. And then pharmacy, we've always been continuing to bring down.

另外也有像瑜伽與 HIIT 這類新概念進入像 LA Fitness 這樣的體系。所以它們表現良好。我們比較謹慎的地方，我想這對我們來說算是比較新的新增項目——並不是說我們在這方面有任何高曝險——是加油站。只是你會看到那個商業模式的發展。然後藥局方面，我們一直在持續降低。

And that's, I think, right around 2% or so of the ABR. And then car wash, we're sensitive to even though ours are performing well. And then certainly, I would say that certain restaurants that we have continued to reduce down our older concepts, tired concepts, concepts that were popular in the 90s and the early 2000s that just aren't cutting it today. We just -- we don't -- we want to stay away from that. And then with respect to restaurants, we like what we do own.

我想那大約占 ABR（基本租金收入）的 2% 左右。然後洗車，我們也會留意，儘管我們的資產表現良好。當然，我會說某些餐廳，我們也持續降低那些較老的概念、疲弱的概念、在 90 年代與 2000 年代初期很流行、但今天已經不夠競爭力的概念。我們只是——我們不——我們想避開那些。至於餐廳，我們喜歡我們目前持有的。

And it's not that we don't like restaurants. It just -- again, we've just reduced our exposure to these tired concepts. And I think if you're getting a restaurant, which is a QSR with a drive-thru that's got a versatile fungible box that could work for 10 different types of uses, at low rents. I mean, we're going to continue to be happy owning those as well.

並不是說我們不喜歡餐廳。只是——再說一次——我們只是降低了對這些疲弱概念的曝險。我想如果你拿到的是一家餐廳，也就是帶得來速（drive-thru）的 QSR，而且店面盒體（box）具有多用途、可替代性強，能適用於 10 種不同用途，且租金低。我是說，我們也會繼續很樂意持有這類資產。

And I would just add, Matt, on the dispos -- another component we do look at is, is it a tertiary market. We do target top 100 MSAs. We want to bring that higher. So if you see some tenants might be really good tenants, but they're not good tenants for FrontView, but they are good tenants that people will buy just because of their credit or because of their national brand. But if they're not in -- if they're in a tertiary market with a lot of land with nothing around that with not a lot of population, it's not really for us.

我再補充一下，Matt，關於處分——我們也會看的另一個面向是：它是不是三線市場（tertiary market）。我們的目標是前 100 大 MSA（都會統計區），而且我們希望把這個比重提高。所以你可能會看到一些租戶可能是很好的租戶，但對 FrontView 來說不是合適的租戶；但他們對其他人來說是好租戶，因為大家可能只看他們的信用或全國性品牌就會買。但如果他們不在——如果他們在三線市場，周邊土地很多、四周沒什麼東西、人口也不多，那就不太適合我們。

I mean, so you might see some of that. We're still really sought after by a lot of different buyers. And that could be a component. But the nice part is that this isn't -- these are -- we can choose to do these. We don't have to do these and it's completely improving the real estate quality of the portfolio as well.

我是說，所以你可能會看到一些這樣的情況。我們仍然受到很多不同買家的青睞，而這可能就是其中一個因素。但好處是，這不是——這些——我們可以選擇做這些。我們不一定要做，而且這也會全面提升投資組合的不動產品質。

Yeah, I got it. That's very helpful. I appreciate all the comments. Thanks, guys.

是的，我明白了。這非常有幫助。我很感謝所有的說明。謝謝各位。

Thank you.

謝謝。

There are no further questions at this time. I will now hand the call back to Steve for closing remarks.

目前沒有其他問題。我現在把電話交回給 Steve 做結語。

Yes. Thank you, everyone, for your time today, and we appreciate your interest in FrontView and our differentiated approach to net lease. We look forward to seeing you at the BMO Conference next week and of course, NAREIT in June in New York. And please don't forget to check out our properties on our website. Be safe and be healthy. Thank you all.

是的。謝謝各位今天撥冗參與，我們也感謝大家對 FrontView 以及我們差異化淨租賃（net lease）策略的關注。我們期待下週在 BMO 會議見到各位，當然也期待 6 月在紐約的 NAREIT。也請別忘了到我們的網站看看我們的物業。請注意安全、保持健康。謝謝大家。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位出席。您現在可以掛線。