Group 1 - Four Corners Property Trust (FCPT) has acquired an automotive service property for $5.3 million, indicating its expansion and diversification efforts aimed at future revenue growth [1] - The property is leased to a national operator under a long-term, triple-net lease, priced at a 6.8% cap rate on rent, which will help secure FCPT's long-term cash flows [2] - FCPT primarily focuses on high-quality, net-leased restaurant and retail properties, with a history of acquisitions, including a recent purchase of ten Burger King properties for $22 million [3] Group 2 - The acquisitions align with FCPT's strategy to build a portfolio resilient to various economic cycles, although the company may face challenges due to high-interest rates affecting borrowing costs [4] - Over the past three months, FCPT's shares have increased by 0.4%, while the industry has seen a decline of 0.1%, with analysts showing a bullish outlook on the stock [5] - The Zacks Consensus Estimate for FCPT's 2025 funds from operations (FFO) per share has been slightly revised upward to $1.77 [5]

Core Insights - Four Corners Property Trust (FCPT) has acquired a Burger King property for $2.1 million through a sale-leaseback from Ampler Restaurant Group, marking the tenth property purchase from this group and totaling $22 million in March [1][4] - The property is situated in strong retail corridors in Kentucky, with a cap rate of 6.8% on rent and a long-term, triple-net lease with 20 years remaining, which will secure long-term cash flows for the company [2][5] - FCPT's strategy focuses on acquiring high-quality, net-leased restaurant and retail properties to ensure stable revenues over the long term [3][5] Acquisition History - In March 2025, FCPT acquired nine additional Burger King properties from Ampler Restaurant Group for $19.9 million, also through a sale-leaseback, located in strong retail corridors in Tennessee with similar lease terms [4] - In 2024, FCPT acquired a total of 87 properties for approximately $265 million, reinforcing its strategy of building a diversified portfolio [5] Market Performance - Over the past three months, FCPT's shares have increased by 3.5%, while the industry has seen a decline of 0.6%, indicating a positive market sentiment towards the stock [6] - Analysts have revised the Zacks Consensus Estimate for FCPT's 2025 funds from operations (FFO) per share upward to $1.77 over the past two months, reflecting bullish sentiment [6]

Core Viewpoint - Four Corners Property Trust (FCPT) is actively diversifying its portfolio through strategic acquisitions, including the recent purchase of nine Burger King properties for $19.9 million, which reflects its commitment to enhancing portfolio quality [1][2]. Acquisition Details - The nine Burger King properties are situated in strong retail corridors in Tennessee and were acquired at a 6.8% cap rate on rent, exclusive of transaction costs. These properties are under long-term, triple-net leases with 20 years remaining, which will help secure long-term cash flows for FCPT [2]. - In March 2025, FCPT also acquired six Whataburger properties for $16.8 million, similarly structured under long-term, triple-net leases with 20 years remaining, located in strong retail corridors in Alabama [4]. Historical Performance - In 2024, FCPT acquired a total of 87 properties, representing an investment of approximately $265 million, indicating a strategy focused on building a diverse portfolio to ensure stable revenues [5]. - Over the past three months, FCPT's shares have increased by 7.1%, outperforming the industry growth of 4.6%. Analysts have revised the Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share upward by 1.1% to $1.77 [6]. Market Position - FCPT operates as a real estate investment trust (REIT) primarily focused on high-quality, net-leased restaurant and retail properties, showcasing a strong track record of acquisitions [3]. - Other REITs in the sector, such as Welltower and Cousins Properties, are also performing well, with their 2025 FFO per share estimates being revised upward, indicating a positive outlook for the broader REIT market [7].

Revenue and Income - Total revenues for the year ended December 31, 2024, increased to $268.1 million, up from $250.6 million in 2023, representing a growth of approximately 6.9%[199] - The company recorded a net income of $100.5 million for the year ended December 31, 2024, compared to $95.3 million in 2023, reflecting an increase of approximately 5.4%[199] - Restaurant revenues increased slightly by $0.2 million to $30.9 million in 2024, primarily due to higher net pricing despite reduced foot traffic[213] - Funds from Operations (FFO) for 2024 were $155 million, up from $143.7 million in 2023, with FFO per diluted share at $1.65[253] - Adjusted Funds from Operations (AFFO) for 2024 were $162.8 million, compared to $148.7 million in 2023, with AFFO per diluted share at $1.73[253] Property and Lease Information - Rental revenue rose by $17.3 million to $237.1 million in 2024, attributed to a full year of revenue from 92 properties acquired in 2023 and the acquisition of 87 properties in 2024[202] - The lease portfolio as of December 31, 2024, included 1,198 properties with a 99.6% occupancy rate and an average remaining lease term of 7.3 years[197] - 99.8% of the contractual base rent was collected for the year ended December 31, 2024, indicating strong revenue collection performance[197] - The company assesses the collectability of lease receivables based on factors such as payment history and current economic conditions, adjusting revenue accordingly if collectability is in doubt[228] - Lease intangibles are amortized over the remaining initial term of the related lease, impacting rental revenue recognition[222] - The company has not experienced significant early terminations of leases, which would otherwise result in impairment losses[222] - The company recognizes rental revenue on a straight-line basis for net leases with periodic increases, leading to deferred rent receivables[226] Expenses and Debt - General and administrative expenses increased by $1.1 million to $23.8 million in 2024, primarily due to higher personnel costs and professional fees[204] - Depreciation and amortization expenses rose by approximately $3.8 million to $54.5 million in 2024, driven by the acquisition of new properties[205] - Interest expense increased by approximately $4.6 million to $49.2 million in 2024, mainly due to the issuance of an additional $85 million term loan[208] - The company's total debt as of December 31, 2024, was $515 million in non-amortizing term loans, $5 million in outstanding borrowings under the revolving credit facility, and $625 million in senior unsecured fixed rate notes[232] - As of December 31, 2024, the company had total outstanding notes payable of $625 million, with interest rates ranging from 2.74% to 6.44%[242] Financing and Liquidity - As of December 31, 2024, the company had $4.1 million in cash and cash equivalents and $245.0 million of borrowing capacity under its revolving credit facility[231] - The company expects to fund short-term liquidity needs primarily through cash provided by operating activities, with a $250 million revolving credit facility available for acquisitions and capital expenditures[243] - The company has a new ATM program allowing for the sale of up to $500 million in common stock, replacing a previous program that raised $404.8 million[244] - In 2024, the company executed forward sale agreements for 7,796,890 shares at an average sales price of $27.88, resulting in net proceeds of $214.9 million from total shares sold under the ATM programs[247] - The company’s total indebtedness included $625 million in senior unsecured fixed-rate notes and $520 million in variable-rate obligations, with $435 million effectively fixed through interest rate swaps[262] Interest Rate Management - The weighted average interest rate on term loans as of December 31, 2024, was 3.84%, compared to 3.69% as of December 31, 2023[236] - The company entered into an Incremental Amendment to its Loan Agreement on March 14, 2024, utilizing an accordion feature to secure an additional $85 million term loan[235] - The Amended Loan Agreement provides for a revolving credit facility of $350 million and a term loan facility of $590 million, with various maturity dates ranging from 2026 to 2029[237] - The company has entered into interest rate swaps to hedge against interest rate variability, with notional amounts ranging from $25,000 to $50,000 and fixed rates between 0.44% and 4.42%[239] - The company’s interest rate risk management policy aims to match fixed-rate assets with fixed-rate liabilities, mitigating exposure to interest rate fluctuations[261]

Financial Data and Key Metrics Changes - The company reported Q4 FFO of $0.44 per share, up 2.3% from Q4 last year [31] - Full-year 2024 FFO per share was $1.73, an increase of 3.6% from 2023 [31] - Q4 cash rental income was $60.8 million, representing growth of 6.6% compared to last year [31] - Full-year 2024 cash rent was $235.4 million, an increase of 8.8% versus 2023 [31] - The weighted average five-year annual cash rent escalator remains at 1.4% [31] Business Line Data and Key Metrics Changes - In Q4, the company acquired 45 properties for $133 million at a 7% cap rate [17] - For the full year 2024, acquisitions totaled $265 million, with restaurants making up approximately 42%, medical retail at 30%, and auto service at 28% [19][22] - The company did not sell any properties in 2024 but is contemplating strategic dispositions [22] Market Data and Key Metrics Changes - The Boulder Group's net lease market report indicated a 26.6% year-over-year increase in single-tenant retail properties on the market in Q4 [24] - The company noted that transaction volumes are recovering across the industry, anticipating an expanding pool of opportunities in 2025 [24] Company Strategy and Development Direction - The company aims to continue building its investment team in 2025 to enhance capabilities [11] - The focus remains on small box net lease with strong brands, quality credit, and attractive real estate [8] - The company is committed to maintaining its conservative underwriting criteria and is not compromising on asset quality [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acquisition outlook for 2025, citing substantial capital raised during favorable conditions [60] - The company has not experienced material tenancy issues or significant impacts from inflation or labor issues [13] - Management is monitoring potential impacts from political changes but has not seen significant effects on operations [80] Other Important Information - The company has a portfolio occupancy rate of 99.6% and collected 99.4% of base rent for Q4 [35] - Cash G&A expense for Q4 was $3.9 million, representing 6.5% of cash rental income [32] - The company successfully renewed or re-tenanted 95% of properties with 2024 lease expirations [33] Q&A Session Summary Question: Trends in underlying areas - Management noted no notable standout trends, with casual dining brands generally growing [38] Question: Acquisition pipeline and public bond issuance - Management indicated they are preparing for potential public bond issuance but currently have attractive private market options [42][44] Question: Non-restaurant retail segment growth - Management expects similar trends to continue, with a focus on casual dining and medical retail [50] Question: Impact of labor policies on tenants - Management has not observed any significant impacts from new administration policies on tenants [74] Question: G&A expectations for 2025 - Management expects G&A to remain low while scaling operations with new hires [91] Question: Visibility of transaction pipeline - Management indicated a strong pipeline but does not typically provide specific guidance on it [93]

Four Corners Property Trust NYSE: FCPT INVESTOR PRESENTATION FEBRUARY 2025 FORWARD LOOKING STATEMENTS AND DISCLAIMERS Cautionary note regarding forward-looking statements: This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward- looking statements include all statements that are not historical statements of fact and those regarding FCPT's intent, belief or expectations, including, but not limited to, statements regarding: operating and financial perfo ...

分组1 - Four Corners Property Trust (FCPT) reported quarterly funds from operations (FFO) of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and showing a slight increase from $0.43 per share a year ago, resulting in an FFO surprise of 4.76% [1] - The company posted revenues of $68.34 million for the quarter ended December 2024, which was 2.10% below the Zacks Consensus Estimate, compared to $65.14 million in the same quarter last year [2] - Over the last four quarters, FCPT has surpassed consensus FFO estimates two times and topped consensus revenue estimates only once [2] 分组2 - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future FFO expectations [3] - FCPT shares have increased approximately 3% since the beginning of the year, slightly underperforming the S&P 500's gain of 3.2% [3] - The current consensus FFO estimate for the upcoming quarter is $0.43 on revenues of $72.42 million, and for the current fiscal year, it is $1.76 on revenues of $298.09 million [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Acquisition and Investment Strategy - In Q4 2024, FCPT acquired 45 properties for $133 million at a 7.0% cap rate, marking one of the busiest investment quarters in the company's history[13] - The company has maintained a selective acquisition strategy, focusing on properties with low rent and strong credit profiles[60] - FCPT has avoided sectors with zero ABR exposure, including pharmacies, entertainment, and gyms, ensuring a focused investment approach[63] - FCPT targets auto service centers and has made select investments in gas stations and convenience stores, focusing on properties that remain relevant with higher electric vehicle utilization[77] Financial Performance - Net income for Q4 2024 was $26,207,000, an increase from $24,459,000 in Q4 2023, representing a growth of 7.1%[127] - Total rental revenue for Q4 2024 reached $60,734,000, up from $57,614,000 in Q4 2023, indicating a year-over-year increase of 3.7%[128] - Funds From Operations (FFO) for Q4 2024 was $40,267,000, compared to $37,455,000 in Q4 2023, reflecting a growth of 4.8%[130] - Adjusted Funds From Operations (AFFO) for Q4 2024 amounted to $42,752,000, an increase from $38,915,000 in Q4 2023, showing a rise of 9.5%[130] - Annualized Adjusted EBITDAre for 2024 was $211,118,000, compared to $199,938,000 in 2023, marking an increase of 5.6%[127] - The company reported a total rental revenue of $237,134,000 for the full year 2024, compared to $219,881,000 in 2023, reflecting an increase of 7.8%[128] Portfolio Composition and Tenant Quality - FCPT's portfolio consists of 1,220 leases across 163 brands, achieving a 99.6% occupancy rate and a 4.9x tenant EBITDAR coverage[14] - The average annual escalator for leases is 1.4%, with a 7.3-year average lease term[14] - The company has diversified its portfolio, reducing Darden concentration to 48% from 100% at inception, with Olive Garden and LongHorn representing 34% and 10% of the portfolio, respectively[13] - 56% of the portfolio is investment grade by Annual Base Rent (ABR)[41] - Olive Garden represents 34.2% of the total ABR, with 314 locations contributing to a significant portion of revenue[42] - Darden Restaurants account for approximately 48% of the rent roll by ABR, showcasing strong tenant credit with $11 billion in revenue[51] - The median brand sales volume of the top 25 brands in the portfolio is $2.9 billion, indicating robust performance across the board[45] - FCPT's restaurant exposure is concentrated in large brands, with a focus on sustainable tenant rents and superior EBITDAR/rent coverage[66] Financial Stability and Liquidity - FCPT's total liquidity exceeds $345 million, with 100% of assets unencumbered[14] - The company has maintained a conservative leverage ratio of 4.9x net debt to adjusted EBITDAre, inclusive of undrawn equity forwards[14] - 93% of FCPT's debt is fixed rate, minimizing floating rate exposure and enhancing financial stability[98] - The company has a significant liquidity profile, including a $350 million revolver availability and a conservative dividend payout ratio of approximately 80% of AFFO[100] - FCPT's leverage target is between 5.5x and 6.0x, with historical leverage consistently below this range, demonstrating disciplined financial management[101] Rent Collection and Performance Metrics - Rent collections have consistently remained high, with Q4 2024 at 99.8%[35] - Tenant EBITDAR coverage ratio is calculated by dividing the most recently reported EBITDAR by annual in-place cash base rent, providing insight into tenant performance[121] - The occupancy rate is based on portfolio square footage, indicating a historically tight leasing market keeping vacancy low[142] - The company achieved a 92% rent collection rate in Q2 2020, with 4% abated and 3% deferred, leading to a total collection of 98.8% including deferred rent[144] Strategic Focus and Sector Avoidance - FCPT has avoided problem net lease subsectors, including theaters and pharmacies, focusing on e-commerce resistant tenants[13] - The company does not pursue high-acuity care facilities such as hospitals or skilled nursing facilities, maintaining a focus on lower-cost, retail-centric care centers[89] - FCPT focuses on mature, national brands with significant scale, avoiding high-yield dining concepts that do not match its core portfolio[69] - The company has 168 leases, accounting for 11% of annual base rent, primarily in casual dining and quick service sectors[74] - FCPT's medical retail exposure is concentrated on outpatient services, which are e-commerce and recession resistant, with a focus on urgent care and primary care[86]

Core Viewpoint - Four Corners Property Trust (FCPT) continues its acquisition strategy, purchasing an automotive service property for $4.8 million, reflecting its efforts to diversify its portfolio and mitigate industry-specific risks [1][2]. Group 1: Recent Acquisitions - The newly acquired property is situated in a high-traffic area in Texas and is leased to a national operator under long-term, triple-net leases [2]. - FCPT has been actively acquiring properties, with a total of 87 acquisitions in 2024, amounting to approximately $265 million in investments [4]. - The company previously acquired a Burger King property in Virginia for $1.7 million, marking a successful year for its acquisition strategy [4]. Group 2: Financial Performance and Market Position - FCPT's shares have increased by 0.8% over the past six months, contrasting with a 2.7% decline in the broader industry [6]. - The Zacks Consensus Estimate for FCPT's 2024 funds from operations (FFO) per share has been revised down by 1.7% to $1.69 [6]. - In comparison, other REITs like Welltower and Terreno Realty have seen positive adjustments in their 2024 FFO estimates, indicating a more favorable outlook for those companies [7][8]. Group 3: Strategic Vision - FCPT aims to create a diversified portfolio that ensures a consistent revenue stream, although it may face challenges due to high-interest rates affecting borrowing costs [5].

Four Corners Property Trust (FCPT) recently expanded its portfolio with the acquisition of a Burger King property in Virginia for $1.7 million. Located in a strong retail corridor, this property is secured under a corporate long-term, triple net lease with roughly 13 years of term remaining, offering a capitalization rate of 7.0% on rent as of the closing date, exclusive of transaction costs.This acquisition marks the culmination of a robust year for FCPT, bringing its total real estate acquisitions in 2024 ...