FrontView REIT, Inc. announced on March 4, 2025, that it has fixed the entire balance of its $200 million term-loan. The loan was fixed at a three-year swap rate of 3.66%. This strategic move results in an all-in borrowing rate of 4.96% for the company.
This action is intended to prudently mitigate potential interest-rate risk, providing greater certainty regarding future interest expenses. By locking in a favorable rate, FrontView REIT hedges a significant portion of its debt against potential future increases in interest rates. This enhances the stability of its financial outlook.
The decision reflects the company's focus on disciplined capital allocation and accretive investments. Managing interest rate volatility is crucial for REITs, and this step supports FrontView's long-term shareholder value creation strategy. It provides a stable financial foundation for ongoing operations and future growth initiatives.
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