MILL VALLEY, Calif.--(BUSINESS WIRE)--Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties ("FCPT†or the "Company†), is pleased to announce the acquisition of a five property veterinary clinic portfolio for $13.8 million. The portfolio consists of two National Veterinary Associates properties, two Banfield Pet Hospital properties, and one Mission Pet Health propert. ...

MILL VALLEY, Calif.--(BUSINESS WIRE)--Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties ("FCPT†or the "Company†), is pleased to announce the acquisition of an SCA Health property for $3.9 million. SCA Health, a subsidiary of UnitedHealth Group under its Optum division, operates over 370 clinical locations and 400 physician practice clinics nationwide. It partner. ...

Revenue Growth - Rental revenue increased by $7.2 million, or 12%, to $66.5 million for the three months ended September 30, 2025, compared to $59.3 million for the same period in 2024[204]. - Total revenues for the three months ended September 30, 2025, were $74.1 million, up from $66.8 million in 2024, representing an increase of 10.2%[204]. - Net income attributable to common shareholders for the three months ended September 30, 2025, was $28.8 million, compared to $25.6 million in 2024, reflecting a 8.8% increase[204]. - Restaurant revenues increased by $138 thousand during the three months ended September 30, 2025, primarily due to higher net pricing[215]. - Restaurant revenues increased by $326 thousand, or 1%, during the nine months ended September 30, 2025, primarily due to higher net pricing[226]. - Funds from operations (FFO) for the three months ended September 30, 2025, were $43.865 million, up from $39.184 million in the same period of 2024, reflecting a year-over-year increase of approximately 6.9%[252]. - Adjusted funds from operations (AFFO) for the three months ended September 30, 2025, were $46.448 million, compared to $41.080 million for the same period in 2024, indicating a year-over-year increase of approximately 13.5%[252]. Expenses and Costs - General and administrative expenses increased by $669 thousand, or 11%, to $6.5 million for the three months ended September 30, 2025, primarily due to increased stock-based compensation[208]. - Depreciation and amortization expense rose by approximately $1.4 million, or 11%, for the three months ended September 30, 2025, due to the acquisition of 120 properties[210]. - Total operating expenses for the three months ended September 30, 2025, were $32.5 million, compared to $29.1 million in 2024, marking an increase of 8.2%[204]. - Property expenses for the nine months ended September 30, 2025, were $10.3 million, an increase from $8.5 million in the same period of 2024, primarily due to vacancy-related expenses and franchise tax[222]. - Total restaurant expenses increased by $221 thousand during the nine months ended September 30, 2025, primarily due to improved staffing[226]. Occupancy and Lease Information - The lease portfolio had a 99.5% occupancy rate based on leasable square footage as of September 30, 2025[203]. - The average remaining lease term was 7.1 years, with an average annual rent escalation of 1.4% through December 31, 2029[209]. Financing and Capital Structure - The company had $6.7 million in cash and cash equivalents and $339 million of borrowing capacity under its revolving credit facility as of September 30, 2025[231]. - The company entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement, allowing borrowings up to $940 million, including a $350 million revolving credit facility[232]. - The weighted average interest rate on term loans was 3.75% as of September 30, 2025, after considering interest rate hedges[231]. - The company has issued $625 million of senior unsecured fixed rate notes in private placements[239]. - The company has a total outstanding balance of $625 million in senior unsecured fixed rate notes, with maturities ranging from 2026 to 2033 and interest rates between 2.74% and 6.44%[240]. - The company plans to fund acquisitions and capital expenditures primarily through cash provided by operating activities and borrowings under its $350 million revolving credit facility[241]. - The company has terminated its previous ATM program and initiated a new program allowing for the sale of up to $500 million in common stock[242]. - The company continually evaluates alternative financing options and expects to meet long-term capital needs through debt or equity securities issuance[249]. Share Issuance - For the three months ended September 30, 2025, the company generated net proceeds of $60.793 million from the sale of 2,233,561 shares under its ATM program, with a net weighted average sales price of $27.22 per share[245]. - For the nine months ended September 30, 2025, the company reported net proceeds of $122.786 million from the sale of 4,474,793 shares under the ATM program, with a net weighted average sales price of $27.44 per share[246]. - As of September 30, 2025, the company had $194.4 million available for issuance under its ATM programs[247]. Taxation - Income tax expense for the nine months ended September 30, 2025, was $235 thousand, up from $207 thousand in the same period of 2024, reflecting the acquisition of additional properties in states with income taxes[225]. - The company recorded an income tax benefit of $30 thousand at the Kerrow Restaurant Operating Business for the nine months ended September 30, 2025, compared to $4 thousand in 2024[227].

Financial Data and Key Metrics Changes - The company reported Q3 AFO of $0.45 per share, a 3% increase from Q3 last year [17] - Q3 cash rental income was $66.1 million, representing a growth of 12.6% compared to the same quarter last year [18] - Annualized cash-based rent for leases in place as of quarter end is $255.6 million, with a weighted average five-year annual cash rent escalator of 1.4% [18] Business Line Data and Key Metrics Changes - The company acquired 28 properties in Q3 for $82 million at a blended cap rate of 6.8%, with a weighted average lease term of 12 years [10] - Over the first 10 months of 2025, the company acquired 77 properties for $229 million, also at a blended 6.8% cap rate [10] - The in-place portfolio has zero exposure to problem retailers or sectors, maintaining a rent coverage of 5.1 times for the majority of the portfolio [6][18] Market Data and Key Metrics Changes - The company has diversified its rent sources, with Olive Garden and LongHorn Steakhouse now accounting for 32% and 9% of rent, respectively, down from a combined 94% at spin-off [8] - 35% of rents now come from sectors outside of casual dining, including automotive service (13%), quick service restaurants (11%), and medical retail (10%) [8] Company Strategy and Development Direction - The company aims to continue its acquisition strategy while maintaining a focus on quality tenants and properties, avoiding sacrificing quality for volume [5] - The company has a strong competitive advantage in its ability to modulate acquisition pace based on the cost of capital [5] - The company is well-positioned with $270 million in combined dry powder to fuel growth before reaching a mid-five times leverage target [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current acquisition pipeline and the improved debt market, indicating a favorable environment for growth [9][28] - The company has maintained a strong balance sheet with a net debt to Adjusted EBITDA ratio of 4.7 times, near a seven-year low [16] - Management noted that the portfolio remains resilient, with strong occupancy and collection rates, and low bad debt expense [56] Other Important Information - The company has implemented a new disclosure on its website, providing a full list of properties with detailed data to enhance transparency for investors [20] - The company has a healthy fixed charge coverage ratio of 4.7 times and no debt maturities until the end of 2026 [17] Q&A Session Summary Question: On underwriting standards and potential adjustments - Management indicated that they do not foresee lowering their strict underwriting standards, emphasizing the importance of maintaining a high-quality portfolio [23] Question: Funding pipeline with remaining forward equity - Management clarified that the remaining $100 million in forward equity, combined with $170 million in debt capacity and retained cash flow, provides substantial acquisition capacity [24] Question: Assessment of the acquisition environment - Management expressed a favorable view of the current acquisition environment, noting a capable team and a strong balance sheet to support accretive acquisitions [28] Question: Confidence in Darden lease renewals - Management expects very high renewal rates for Darden leases, citing strong coverage and the value of their menu offerings [30] Question: Competition in the net lease sector - Management acknowledged increased competition from private equity but emphasized their diverse sourcing strategy, which includes both large portfolios and smaller acquisitions [45]

Investment Highlights - FCPT acquired $355 million of investments over the last 12 months as of September 30, 2025, with $82 million invested in Q3 2025 at a 6.8% cap rate[7] - The company raised $173 million in 2025 as of September 30, 2025, and has a total liquidity of $446 million, including $100 million of unsettled equity forwards as of October 28, 2025[7] - Annual base rent has grown from $94 million in 2015 to $256 million today, a 2.7x increase[8] - Enterprise value has increased from $1.3 billion in 2015 to $3.8 billion today, a 2.9x increase[8] Portfolio Composition - Olive Garden accounts for 32% of the Annual Base Rent (ABR), while LongHorn Steakhouse accounts for 9%[7] - The top 5 brands now represent approximately 53% of ABR, compared to 100% at inception[7] - The portfolio consists of 1,294 leases across 170 brands, generating an annual base rent of $255.6 million[26] - Restaurant properties make up 75% of the annual base rent, with 32% from Olive Garden, 9% from LongHorn, and 7% from Chili's[82, 25] Financial Position - Approximately 97% of total debt is fixed rate through Q3 2027 as of July 29[7] - The company has $339 million undrawn revolver and $144 million unsettled forward equity as of September 30, 2025[17] - Net debt to adjusted EBITDAre is 4.7x as of September 30, 2025[17] - The company maintains a conservative dividend payout ratio of approximately 80% of AFFO[69]

Core Insights - Four Corners Property Trust (FCPT) reported quarterly funds from operations (FFO) of $0.45 per share, matching the Zacks Consensus Estimate and showing an increase from $0.43 per share a year ago [1] - The company posted revenues of $74.15 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.06%, but up from $66.79 million year-over-year [2] - The stock has underperformed, losing about 10.3% since the beginning of the year compared to the S&P 500's gain of 16.9% [3] Financial Performance - FCPT's FFO for the last quarter was consistent with expectations, as it was anticipated to be $0.44 per share and the actual result was $0.44 [1] - The company has not surpassed consensus revenue estimates in the last four quarters, indicating a trend of underperformance in revenue generation [2] Future Outlook - The future performance of FCPT's stock will largely depend on management's commentary during the earnings call and the outlook for FFO in upcoming quarters [3][4] - Current consensus FFO estimate for the next quarter is $0.45 on revenues of $75.78 million, and for the current fiscal year, it is $1.78 on revenues of $294.54 million [7] Industry Context - The REIT and Equity Trust - Other industry, to which FCPT belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which could impact FCPT's stock performance [5][6]

Financial Performance - Rental revenue for Q3 2025 increased by 12.2% year-over-year to $66.5 million, consisting of $66.1 million in cash rents and $0.4 million in non-cash rent adjustments[6] - Net income attributable to common shareholders for Q3 2025 was $28.8 million, or $0.28 per diluted share, compared to $25.6 million, or $0.27 per diluted share in Q3 2024[6] - Total revenues for Q3 2025 were $74.1 million, up from $66.8 million in Q3 2024[22] - Net income for Q3 2025 increased to $28,877 million, up from $25,612 million in Q3 2024, representing a growth of 8.8%[26] - Funds from operations (FFO) for Q3 2025 reached $43,865 million, compared to $39,184 million in Q3 2024, reflecting a year-over-year increase of 6.9%[26] - Adjusted Funds from Operations (AFFO) for Q3 2025 was $46,448 million, up from $41,080 million in Q3 2024, indicating a growth of 13.5%[26] - FFO per diluted share for Q3 2025 was $0.42, slightly up from $0.41 in Q3 2024, marking a 2.4% increase[26] - AFFO per diluted share for Q3 2025 increased to $0.45 from $0.43 in Q3 2024, representing a growth of 4.7%[26] - For the nine months ended September 30, 2025, net income was $83,018 million, up from $74,388 million in the same period of 2024, reflecting an increase of 11.7%[26] Property and Portfolio Management - The company acquired 28 properties for a total of $82 million during Q3 2025, with an initial weighted average cash yield of 6.8% and a weighted average remaining lease term of 11.6 years[10] - As of September 30, 2025, the company achieved a rent collection rate of 99.9% for its portfolio[3] - The company's rental portfolio consisted of 1,273 properties across 48 states, with an occupancy rate of 99.5% and a weighted average remaining lease term of approximately 7.1 years[9] Expenses and Dividends - General and administrative expenses for Q3 2025 were $6.5 million, compared to $5.8 million in Q3 2024[14] - The company declared a dividend of $0.3550 per common share for Q3 2025, an increase from $0.3450 in Q3 2024[8] - Total depreciation and amortization expenses for Q3 2025 were $14,988 million, compared to $13,572 million in Q3 2024, an increase of 10.4%[26] - Stock-based compensation for Q3 2025 was $2,208 million, an increase from $1,815 million in Q3 2024, representing a growth of 21.7%[26] Liquidity - The company had approximately $490 million in available liquidity as of September 30, 2025, including $7 million in cash and cash equivalents[12] Other Financial Metrics - Adjusted Funds from Operations (AFFO) per diluted share for Q3 2025 was $0.45, reflecting a $0.02 increase compared to Q3 2024[6] - The weighted average fully diluted shares outstanding increased to 104,282,333 in Q3 2025 from 94,992,554 in Q3 2024, a rise of 9.8%[26] - The company reported a decrease in straight-line rental revenue, which was $(856) million in Q3 2025 compared to $(1,056) million in Q3 2024[26]

Core Viewpoint - Four Corners Property Trust, Inc. reported strong portfolio growth for the third quarter of 2025, highlighting successful property acquisitions and alignment with underwriting objectives [1]. Financial Performance - The company acquired properties worth $82 million during the quarter, focusing on core retail sectors [1]. - The properties are leased to nationally branded operators, ensuring strong operational performance [1]. Strategic Focus - The acquisitions are diversified across various retail sectors, indicating a strategic approach to portfolio management [1]. - Rent and pricing for the acquired properties are aligned with the company's underwriting objectives, suggesting a disciplined investment strategy [1].

Performance Summary - Four Corners Property Trust (NYSE: FCPT) has underperformed the Vanguard Real Estate Index Fund ETF (VNQ) in 2025, with a loss of approximately 5%, compared to a gain of around 6% for the broader U.S. REIT ETF [1] Investment Approach - The investment strategy focuses on fundamental long-term perspectives, primarily in REITs, preferred stocks, and high-yield bonds, with a recent combination of long stock positions, covered calls, and cash secured puts [1] Coverage Focus - The company primarily covers REITs and financials, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Performance Summary - Four Corners Property Trust (NYSE: FCPT) has underperformed the Vanguard Real Estate Index Fund ETF (VNQ) in 2025, with a loss of approximately 5%, compared to a gain of around 6% for the broader U.S. REIT ETF [1] Investment Approach - The investment strategy focuses on a fundamental long-term perspective, primarily involving REITs, preferred stocks, and high-yield bonds, with recent strategies including long stock positions combined with covered calls and cash secured puts [1] Coverage Focus - The company primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]