(Bloomberg) -- FrontView REIT Inc. shares retreated 1.5% in the commercial landlord’s first day as a public company, after raising $250.8 million in an initial public offering.
Shares in the firm, which focuses on businesses with stores in prominent locations, fell to $18.72 each on Wednesday in New York, below their IPO price. The real estate investment trust sold 13.2 million shares on Tuesday for $19 each, the mid-point of a marketed range.
FrontView, which has its headquarters in Dallas, focuses on so-called outparcels, properties that point directly onto high-traffic roads that are visible to consumers, according to a filing. As of June 30, the REIT has a portfolio of 278 properties with about 2.1 million rentable square feet of space. The properties span 31 US states, with the largest concentrations in Illinois with 28 and Texas with 22, its filing shows.
The IPO proceeds are set to be contributed to the operating partnership in exchange for common shares, the filing shows. The partnership expects to use the proceeds for general business and working capital purposes, including potential future acquisitions. It also intends to use the proceeds to repay borrowings outstanding under its revolving credit facility and term loan credit facility.
The company had a net loss of $6.4 million on revenue of $29.9 million in the six months ending June 30, compared with a net loss of $5.1 million on revenue of $22.3 million in the same period a year earlier, according to the filing. Its portfolio includes Starbucks Corp., AT&T Inc. and Verizon Communications Inc. locations, its website shows.
FrontView founder and co-Chief Executive Officer Stephen Preston controls 1.6% of the company, the filing shows.
The offering was led by Morgan Stanley, JPMorgan Chase & Co., Wells Fargo & Co. and Bank of America Corp. The company’s shares trade on the New York Stock Exchange under the symbol FVR.
(Updates with close of trading in first two paragraphs.)
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