Core Viewpoint - Four Corners Property Trust (FCPT) has announced the acquisition of a Baptist Health property for $4.7 million, indicating a strategic move to expand its portfolio in high-quality, net-leased properties [1] Group 1: Acquisition Details - The acquired property is newly constructed and located in a strong retail corridor in Alabama [1] - The property is corporate-operated under a long-term net lease with approximately ten years remaining [1]

Core Insights - Four Corners Property Trust (FCPT) has acquired a VCA animal hospital property for $5.8 million, reflecting its strategy to expand its portfolio amid economic uncertainty [1][7] - The acquisition aligns with FCPT's ongoing efforts to build a diversified portfolio, having recently purchased a Caliber Collision property for $4.9 million [2][7] - In Q3 2025, FCPT acquired 28 properties valued at $82 million, with a weighted average remaining lease term of 11.6 years, enhancing revenue stability across various industries [3][4] Company Strategy - FCPT's acquisition strategy focuses on structuring a portfolio resilient to economic cycles, with recent purchases indicating a commitment to diversification [4][7] - The company has a significant debt load of $1.21 billion, which may pose challenges to its growth plans and keep borrowing costs elevated [4] Market Performance - Over the past three months, FCPT's shares have declined by 9.2%, contrasting with the industry's growth of 1.8% [4]

Core Insights - Four Corners Property Trust (FCPT) has acquired two Hawaiian Bros properties for $5.9 million through a sale-leaseback transaction, indicating a strategic move to expand its portfolio in the fast casual dining sector [1][8] - The newly constructed properties are situated in strong retail corridors in Arizona and Texas, and are operated under long-term, triple-net leases, which are favorable for stable income generation [2][8] - FCPT's recent acquisitions reflect its diversification strategy, with a focus on high-quality, net-leased restaurant and retail properties, which enhances portfolio stability [4][5] Acquisition Details - The acquisition of the Hawaiian Bros properties is part of FCPT's ongoing strategy to expand its holdings in the restaurant sector, following a recent purchase of three automotive service properties for the same amount of $5.9 million [3][8] - In the third quarter of 2025, FCPT expanded its portfolio significantly by acquiring 28 properties valued at $82 million, with a cap rate of 6.8%, showcasing its active investment approach [4] Market Context - The company faces increasing competition from private equity funds in the net lease market, which may pressure acquisition yields and impact FCPT's ability to secure attractive deals [5] - Over the past three months, FCPT's shares have declined by 6.3%, contrasting with a 1.4% growth in the broader industry, indicating potential challenges in the current market environment [5]

Core Viewpoint - Four Corners Property Trust (FCPT) has announced the acquisition of three automotive service properties for $5.9 million, indicating a strategic move to expand its portfolio in high-quality, net-leased properties [1] Group 1: Acquisition Details - The acquisition was made via sale leaseback, a common strategy in real estate investment trusts (REITs) [1] - The properties are located in strong retail corridors in Missouri, suggesting a focus on prime locations for investment [1] - The properties are corporate-operated under triple net leases with a duration of 15 years, providing stable and predictable cash flows for the company [1]

Core Insights - Four Corners Property Trust (FCPT) has declared a quarterly cash dividend of 36.65 cents per share, marking a 3.2% increase from the previous payout of 35.50 cents per share [1][8] - The annualized dividend payout now stands at $1.466 per share, resulting in an annualized yield of 5.98% based on the stock's closing price of $24.53 on Nov. 11, 2025 [2][8] - FCPT has demonstrated a commitment to solid dividend payouts, having increased its dividend five times in the last five years, with a five-year annualized growth rate of 2.54% [3][8] Company Overview - FCPT primarily focuses on the ownership and acquisition of high-quality, net-leased restaurant and retail properties, aiming to expand its portfolio through additional real estate acquisitions [4] - The company maintains a robust balance sheet with approximately $490 million in available liquidity as of Sept. 30, 2025, and holds credit ratings of BBB and Baa3 from Fitch and Moody's, allowing for favorable debt financing [4] Financial Performance - FCPT's ability to generate strong cash flows, coupled with a lower debt-equity ratio compared to the industry, supports the sustainability of the latest dividend rate over the long term [5] - In the past month, FCPT's shares have increased by 2.9%, while the industry has seen a growth of 3.9% [5]

Core Insights - Four Corners Property Trust (FCPT) has acquired a veterinary clinic portfolio consisting of five properties for $13.8 million, reflecting the company's strategy to expand its portfolio amid economic uncertainty [1][8] Acquisition Details - The portfolio includes two properties from National Veterinary Associates, two from Banfield Pet Hospital, and one from Mission Pet Health, with locations in California, Florida, North Carolina, and Texas [2][8] - The acquisition was priced at a 7.3% cap rate on rent, with properties under corporate-operated net leases and a weighted average remaining lease term of nine years [2] Company Strategy and Performance - FCPT is a real estate investment trust (REIT) focused on acquiring high-quality, net-leased restaurant and retail properties, with a history of successful acquisitions [3] - In Q3 2025, FCPT acquired 28 properties valued at $82 million, diversifying its portfolio across various industries, including 39% medical, 36% auto service, 16% quick service restaurants, and 9% casual dining restaurants by purchase price [4][8] - The company's strategy aims to create a resilient portfolio capable of withstanding different economic cycles, although it faces challenges due to a significant debt load of $1.23 billion, which may lead to high borrowing costs [5] Market Performance - Over the past three months, FCPT's shares have declined by 4.9%, contrasting with the industry's growth of 3.4% [5]

Core Viewpoint - Four Corners Property Trust (FCPT) has announced the acquisition of a veterinary clinic portfolio for $13.8 million, indicating a strategic expansion into the veterinary sector within its real estate investment focus [1] Company Summary - FCPT is a real estate investment trust (REIT) primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties [1] - The newly acquired portfolio consists of five properties, including two from National Veterinary Associates, two from Banfield Pet Hospital, and one from Mission Pet Health [1]

Core Viewpoint - Four Corners Property Trust (FCPT) has announced the acquisition of an SCA Health property for $3.9 million, indicating its ongoing strategy to expand its portfolio of high-quality, net-leased restaurant and retail properties [1] Company Summary - FCPT is a real estate investment trust (REIT) focused on owning and acquiring high-quality, net-leased restaurant and retail properties [1] - The acquisition involves SCA Health, a subsidiary of UnitedHealth Group under its Optum division, which operates over 370 clinical locations and 400 physician practice clinics nationwide [1]

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]