Four Corners Property Trust (FCPT) came out with quarterly funds from operations (FFO) of $0.43 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.42 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.42 per share when it actually produced FFO of $0.43, delivering a surprise of 2.38%. Over the last four quarters, the company has surpassed consensus FFO estimates two ...

Henrik Sorensen I am still unhappy with the share of Four Corners Property Trust's (NYSE:FCPT) largest tenant in its ABR. However, I appreciate the Company's efforts to diversify its tenant structure, especially given the positive investment spreads. I am a long-term investor with a buy-and-hold approach (unless material adverse change occurs), so I don't feel comfortable allocating my resources to FCPT - I prefer some of its competitors. Yes, FCPT has strong business metrics regarding occupancy rate, WALT, ...

As of July 15, 2024, there were 36,925,682 trust units of FCPT outstanding, and the public float was 32,819,951 trust units. For further information, please contact: For Investor Relations information, please contact: TORONTO, July 15, 2024 (GLOBE NEWSWIRE) -- Firm Capital Property Trust ("FCPT" or the "Trust"), (TSX: FCD.UN) announced today that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by FCPT of its intention to make a normal course issuer bid (the "NCIB") with respect to its out ...

Four Corners Property Trust (FCPT) recently announced the acquisition of MercyOne outpatient clinic property located in a strong retail corridor in lowa for $3 million. The move aligns with FCPT's portfolio expansion efforts, with real estate leased to strong credit operators. Of late, this real estate investment trust (REIT), mainly engaged in the ownership and acquisition of highquality, net-leased restaurant and retail properties, has been on an acquisition spree. Moreover, in the same month, Four Corner ...

Core Viewpoint - Four Corners Property Trust (FCPT) is actively expanding its portfolio through strategic acquisitions of properties under long-term, triple net leases, which are expected to generate steady revenues and enhance portfolio diversification [1][3][9]. Group 1: Recent Acquisitions - In May, FCPT purchased eight Mavis Tire properties for $20 million, located across multiple states including Alabama, Georgia, and New York, all under long-term, triple net leases [2]. - FCPT acquired a Mercy Health Clinic property in Missouri for $3.8 million, aligning with its strategy to lease to strong credit operators [8]. - Additionally, a Longhorn Steakhouse property was acquired for $2 million, situated in a high-traffic area in Illinois, also under a net lease [10]. - In the first quarter, FCPT acquired four properties for a total of $15.9 million, with an initial weighted average cash yield of 6.9% and a remaining lease term of 9.9 years [11]. Group 2: Portfolio Overview - As of March 31, 2024, FCPT's rental portfolio consists of 1,115 properties across 47 states, with a 99.6% occupancy rate under long-term net leases and a weighted average remaining lease term of approximately 7.6 years [4]. - The company is focused on enhancing portfolio quality and growth through strategic acquisitions, particularly in the restaurant and retail sectors [9]. Group 3: Market Performance - Over the past six months, FCPT's shares have increased by 0.2%, contrasting with a 1.6% decline in the broader industry [5].

Investment Thesis - Four Corners Property Trust (FCPT) is considered overvalued compared to its competitors, despite having some strengths that are either comparable or more evident within the peer group [2][33] - There are more attractive investment opportunities available in the market, even within the same property sector [3][34] Company Overview - FCPT is a relatively small, triple-net lease REIT that focuses on service-oriented properties [4] - The company was established in 2015 following a spin-off from Darden Restaurants (DRI) and has since expanded its portfolio from 418 properties to 1,115 properties, reducing its exposure to DRI from 100% to 51% as of March 2024 [5] Strengths - **Occupancy Rate**: FCPT maintains a high occupancy rate of 99.6%, significantly above the historical S&P 500 REIT median of 94.8% [8][10] - **Lease Agreements**: The company utilizes triple-net lease agreements, with a weighted average lease term (WALT) of 7.6 years. Although this is the lowest in the reference group, it is still considered solid given the types of properties targeted [9][10] - **Investment Strategy**: FCPT targets service-oriented properties, particularly in the restaurant, auto-services, and medical sectors, which are less susceptible to economic downturns [12][13] - **Balance Sheet**: FCPT has a strong balance sheet with a BBB credit rating, a fixed-rate debt share of approximately 95%, and no debt maturities until November 2025 [14][15] Weaknesses - **High Tenant Concentration**: The company has a highly concentrated tenant structure, with approximately 51% of its annual base rent (ABR) coming from Darden Restaurants, which poses risks if DRI faces financial difficulties [17][20] - **Relatively Low Cap Rates**: FCPT's average cap rate is lower than its competitors, indicating less favorable investment conditions [22][27] - **Valuation Concerns**: The P/FFO multiple for FCPT stands at 14.7x, which is considered high compared to its peers, suggesting that the stock may be overvalued [28][31] Conclusion - FCPT is viewed as overvalued relative to its competitors, with strengths that are either comparable or stronger in the reference group, while also facing unique weaknesses [33][34]

Four Corners Property Trust (FCPT) has announced the purchase of eight Mavis Tire and affiliated operated properties for $20 million, continuing its spree of strategic acquisitions. This move, which was made as a sale- leaseback transaction, not only diversifies and strengthens FCPT's portfolio but also provides a steady income stream for the company, benefiting both the business and stockholders. Located across Alabama, Georgia, Louisiana, New Jersey, New York and Tennessee, each of these properties is ope ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37538 Four Corners Property Trust, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Cautionary note regarding forward-looking statements: For a further discussion of these and other factors that could cause FCPT's future results to differ materially from any forward-looking statements, see the risk factors described under the section entitled "Item 1A. Risk Factors" in FCPT's annual report on Form 10-K for the year ended December 31, 2023 and other risks described in documents subsequently filed by FCPT from time to time with the Securities and Exchange Commission. The information in this ...

[Company Overview](index=4&type=section&id=COMPANY%20OVERVIEW) [Company Profile & Strategy](index=4&type=section&id=1.1%20Company%20Profile%20%26%20Strategy) FCPT builds an e-commerce resistant portfolio with strong tenant coverage, a disciplined investment strategy, and an investment-grade balance sheet, diversifying into resilient retail categories - FCPT's portfolio is e-commerce resistant, featuring high tenant EBITDAR/rent coverage, aiming for high tenant retention and low vacancy rates[8](index=8&type=chunk) - The company utilizes a proprietary, data-driven scorecard for objective property ratings and prudent pricing[8](index=8&type=chunk) - FCPT has diversified from a single tenant to **149 brands**, establishing new verticals in resilient retail categories such as medical retail[8](index=8&type=chunk) - The company is committed to maintaining a conservative leverage ratio of **5.0x-6.0x** and has a well-staggered, predominantly fixed-rate debt maturity schedule[8](index=8&type=chunk) [2024 YTD Portfolio & Investment Highlights](index=5&type=section&id=1.2%202024%20YTD%20Portfolio%20%26%20Investment%20Highlights) As of Q1 2024, FCPT's portfolio boasts **99.6% occupancy**, strong tenant EBITDAR coverage, and a long average lease term, with **$15.9 million** deployed year-to-date at a **6.9%** average initial cash yield 2024 YTD Portfolio Highlights (As of March 31, 2024) | Metric | Value | | :-------------------------- | :------ | | Occupancy Rate | 99.6% | | Tenant EBITDAR Coverage | 4.9x | | Avg Annual Rent Growth | 1.4% | | Avg Remaining Lease Term | 7.6 years | | Leases | 1,137 | | Brands | 149 | | Investment Grade Tenant % | 59% | | Leases Expiring Pre-2027 % | <6.0% | 2024 YTD Investment Highlights | Metric | 2023 | 2024 YTD | | :---------------------- | :------ | :--------- | | Capital Deployed (million USD) | $332.6 | $15.9 | | Avg Initial Cash Yield | 6.7% | 6.9% | | Initial Avg Lease Term | 12 years | 10 years | | Dispositions (million USD) | $29.3 | 1 | | Disposition Cash Yield | 6.5% | | [2024 YTD Financial Highlights](index=6&type=section&id=1.3%202024%20YTD%20Financial%20Highlights) FCPT demonstrated strong financial performance in Q1 2024 with **$0.43** AFFO per share and **$0.41** FFO per share, maintaining ample liquidity, conservative leverage, and investment-grade credit ratings Q1 2024 Per Share Financials | Metric | Value | | :-------------------- | :------ | | Net Income per Share | $0.26 | | AFFO per Share | $0.43 | | FFO per Share | $0.41 | Q1 2024 Financial Position | Metric | Value | | :-------------------------- | :---------- | | Liquidity | $277 million | | Unencumbered ABR | 100% | | Net Debt to Adj. EBITDAre Ratio | 5.6x | | Fixed Charge Coverage | 4.3x | | Weighted Avg Debt Term | 4.5 years | | Fixed-Rate Debt % | 95% | | Credit Rating (Fitch/Moody's) | BBB / Baa3 (Stable Outlook) | [Acquisition Volume Trends](index=7&type=section&id=1.4%20Acquisition%20Volume%20Trends) Since 2015, FCPT has consistently executed its acquisition strategy, showing steady growth in property count and acquisition volume while maintaining stable capitalization rates Annual Acquisition Volume (2015-2023) | Year | Properties | Acquisition Volume (million USD) | Cap Rate | Avg Size (million USD) | | :--- | :------------- | :---------- | :------- | :---------------- | | 2015 | 418 | SPIN | 6.6% | - | | 2016 | 475 (+57) | $94 | 6.8% | $1.6 | | 2017 | 515 (+40) | $99 | 6.5% | $2.3 | | 2018 | 610 (+95) | $263 | 6.5% | $2.7 | | 2019 | 699 (+89) | $199 | 6.5% | $2.2 | | 2020 | 799 (+100) | $223 | 6.5% | $2.2 | | 2021 | 919 (+120) | $257 | 6.5% | $2.1 | | 2022 | 1023 (+104) | $286 | 6.5% | $2.6 | | 2023 | 1111 (+88) | $333 | 6.7% | $3.5 | [High-Quality Portfolio](index=9&type=section&id=HIGH%20QUALITY%20PORTFOLIO) [Portfolio Performance & Stability](index=9&type=section&id=2.1%20Portfolio%20Performance%20%26%20Stability) FCPT's portfolio demonstrates strong and consistent stability, maintaining high rent collection and occupancy rates even during the COVID-19 pandemic, showcasing its net lease resilience - FCPT maintains a strong record in rent collection and occupancy rates, performing exceptionally even during the COVID-19 pandemic[20](index=20&type=chunk) Rent Collection Rate (Q1 2020 - Q1 2024) | Period | Rent Collection Rate | | :------- | :-------------- | | Q1 2020 | 99.5% | | Q2 2020 | 98.8% | | Q3 2020 | 99.6% | | Q4 2020 | 99.6% | | Q1 2021 | 99.7% | | Q2 2021 | 99.8% | | Q4 2021 | 99.8% | | Q1 2022 | 99.8% | | Q2 2022 | 99.7% | | Q3 2022 | 99.9% | | Q4 2022 | 99.9% | | Q1 2023 | 99.7% | | Q2 2023 | 99.9% | | Q3 2023 | 99.8% | | Q4 2023 | 99.8% | | Q1 2024 | 99.8% | Occupancy Rate (Q1 2020 - Q1 2024) | Period | Occupancy Rate | | :------- | :-------- | | Q1 2020 | 99.6% | | Q2 2020 | 99.6% | | Q3 2020 | 99.7% | | Q4 2020 | 99.8% | | Q1 2021 | 99.6% | | Q2 2021 | 99.6% | | Q4 2021 | 99.7% | | Q1 2022 | 99.8% | | Q2 2022 | 99.9% | | Q3 2022 | 99.9% | | Q4 2022 | 99.9% | | Q1 2023 | 99.9% | | Q2 2023 | 99.9% | | Q3 2023 | 99.8% | | Q4 2023 | 99.8% | | Q1 2024 | 99.8% | [Geographic Diversification](index=10&type=section&id=2.2%20Geographic%20Diversification) FCPT's geographically diversified portfolio is concentrated in fast-growing, lower-cost suburban areas like Texas and Florida, benefiting from demographic shifts and high in-migration rates - FCPT's portfolio is primarily located in fast-growing and diversified suburban areas, with Texas and Florida being the top two states for in-migration in 2023[25](index=25&type=chunk) - The geographic strategy benefits from demographic shifts towards lower cost of living and high quality of life states, a trend accelerated by remote work[25](index=25&type=chunk) [Tenant Rental Coverage & Lease Structure](index=11&type=section&id=2.3%20Tenant%20Rental%20Coverage%20%26%20Lease%20Structure) FCPT's portfolio maintains strong rent coverage, particularly for Darden spin-off properties, actively acquiring low-rent, high-coverage assets, including ground leases with inherent value - FCPT's portfolio benefits from strong rent coverage, with a focus on acquiring properties with low rent and high rent coverage[28](index=28&type=chunk) Tenant Rental Coverage | Category | Coverage | | :------------- | :------- | | Other | 5.5x | | Darden | 2.8x | | Non-Restaurant | 2.7x | - Ground leases, where tenants own the building and rent is tied solely to land value, imply very high EBITDAR rent coverage, with building ownership typically reverting to FCPT at lease end[28](index=28&type=chunk) [Brand Exposure & Diversification](index=12&type=section&id=2.4%20Brand%20Exposure%20%26%20Diversification) FCPT's portfolio is diversified across **1,137 leases** and **149 brands**, with Darden restaurants comprising **37%** of annualized base rent and **59%** from investment-grade tenants [Brand Exposure by Annualized Base Rent](index=12&type=section&id=2.4.1%20Brand%20Exposure%20by%20Annualized%20Base%20Rent) FCPT's portfolio is diversified across **149 brands** and **1,137 leases**, with Darden restaurants accounting for **37%** of annualized base rent, followed by other restaurants and auto services Brand Exposure by Annualized Base Rent (ABR) | Category | Leases | ABR % | | :---------------- | :------- | :--------- | | Darden Restaurants | 314 | 37% | | Other Restaurants | 318 | 21% | | Non-Restaurant | 115 | 10% | | Auto Service | 139 | 9% | | Chili's | 82 | 8% | | Medical Retail | 90 | 8% | | Other / DARDEN | 26 | 4% | | Other Retail | 53 | 3% | - The portfolio comprises **1,137 leases** across **149 brands**, with Darden restaurants being the largest segment, accounting for **37%** of ABR[29](index=29&type=chunk) [Detailed Brand Diversification](index=13&type=section&id=2.4.2%20Detailed%20Brand%20Diversification) FCPT's top ten brands are primarily Darden concepts like Olive Garden and Longhorn Steakhouse, with **59%** of the portfolio's annualized base rent derived from investment-grade tenants FCPT Portfolio Top Ten Brands by ABR % | Rank | Brand Name | Area (thousand sq ft) | ABR % | | :--- | :----------------- | :------------- | :--------- | | 1 | Olive Garden | 2673 | 36.8% | | 2 | Longhorn Steakhouse | 645 | 10.4% | | 3 | Chili's | 450 | 7.7% | | 4 | Buffalo Wild Wings | 171 | 2.5% | | 5 | Cheddar's | 112 | 2.2% | | 6 | Red Lobster | 130 | 1.7% | | 7 | Caliber Collision | 390 | 1.6% | | 8 | Bahama Breeze | 92 | 1.5% | | 9 | KFC | 95 | 1.5% | | 10 | WellNow Urgent Care | 78 | 1.4% | - Of the portfolio's annualized base rent (ABR), **59%** is derived from investment-grade tenants[32](index=32&type=chunk) [Thoughtful Brand Selection Strategy](index=14&type=section&id=2.5%20Thoughtful%20Brand%20Selection%20Strategy) FCPT strategically selects national brands with strong sales and market-aligned rents, focusing on mid-sales volume concepts in casual, fast-casual, and quick-service dining to ensure rent support and low rent-to-sales ratios - FCPT focuses on national brands with strong sales and market-aligned rents[34](index=34&type=chunk) - The company targets properties within the mid-sales volume range for casual dining, fast-casual, and quick-service restaurants, concepts that offer rent support while maintaining low rent levels[34](index=34&type=chunk) [Lease Maturity Schedule](index=15&type=section&id=2.6%20Lease%20Maturity%20Schedule) FCPT's lease maturity schedule is well-staggered with a **7.6-year** weighted average lease term, and less than **6.0%** of rental income expiring before 2027, indicating strong stability and high renewal rates - The portfolio's weighted average lease term is **7.6 years**, with less than **6.0%** of rental income expiring before 2027[35](index=35&type=chunk) - FCPT has achieved very high lease renewal rates to date[35](index=35&type=chunk) Lease Maturity Schedule (Annualized Base Rent %) | Year | Darden Spin-off | Other | Total | | :--- | :---------- | :---- | :---- | | 2024 | 8.0% | 0.9% | 8.9% | | 2025 | 8.3% | 2.2% | 10.5% | | 2026 | 7.1% | 2.8% | 9.9% | | 2027 | 7.4% | 4.7% | 12.1% | | 2028 | 6.6% | 3.6% | 10.2% | | 2029 | 4.7% | 4.1% | 8.8% | | 2030 | 4.7% | 2.5% | 7.2% | | 2031 | 0.9% | 2.9% | 3.8% | | 2032 | 2.2% | 2.3% | 4.5% | | 2033 | 2.8% | 8.7% | 11.5% | | 2034 | 4.7% | 1.9% | 6.6% | | 2035 | 3.6% | 2.3% | 5.9% | | 2036 | 4.1% | 3.3% | 7.4% | | 2037 | 2.5% | 2.3% | 4.8% | | 2038 | 2.9% | 2.9% | 5.8% | | 2039 | 2.3% | 0.4% | 2.7% | | 2040 | 8.7% | 1.4% | 10.1% | | 2041 | 1.9% | 0.8% | 2.7% | | 2042 | 2.3% | 1.7% | 4.0% | | 2043 | 3.3% | 0.4% | 3.7% | | 2044 | 2.3% | 1.3% | 3.6% | [Restaurant Industry Performance](index=16&type=section&id=2.7%20Restaurant%20Industry%20Performance) Recent Baird restaurant surveys indicate quick-service and casual dining sales are maintaining or exceeding prior-year levels, with strong national brands gaining market share, which is expected to support FCPT's rent coverage - Baird's weekly restaurant surveys indicate quick-service and casual dining sales consistently maintain or exceed prior-year levels[38](index=38&type=chunk) - FCPT's top three brands (Olive Garden, LongHorn Steakhouse, and Chili's) are benefiting from improved restaurant margins[38](index=38&type=chunk) - Strong national brands are gaining market share from independent restaurant chains; this is expected to provide robust rent coverage even in a weaker macroeconomic environment[38](index=38&type=chunk) [Darden Performance and Concentration](index=17&type=section&id=2.8%20Darden%20Performance%20and%20Concentration) Darden restaurants have surpassed pre-pandemic performance, maintaining strong credit ratings and improving same-store sales and EBITDA margins for key brands, while FCPT's Darden rent coverage improved and concentration decreased Darden Restaurant Performance and FCPT Metrics | Metric | Inception | Pre-COVID | Current (Q4 2023) | | :-------------------------------- | :-------- | :-------- | :------------------ | | Darden Rating (Fitch/Moody's/S&P) | BBB/Baa3/BBB | BBB/Baa2/BBB | BBB/Baa2/BBB | | Olive Garden SSS (million USD) | $4.9 | $5.1 | $5.5 | | LongHorn SSS (million USD) | $3.7 | $3.8 | $4.7 | | Olive Garden EBITDA Margin | 20.3% | 21.0% | 22.5% | | LongHorn EBITDA Margin | 17.8% | 19.2% | 18.7% | | Total Revenue (million USD) | $7,513 | $8,916 | $11,899 | | FCPT Rating (Fitch/Moody's) | N/A | BBB-/NA | BBB/Baa3 | | Darden Rent Coverage | 4.2x | 5.1x | 5.5x | | Darden Restaurants | 418 | 426 | 455 | | Darden % of ABR | 100% | 71% | 51% | - Darden's Olive Garden and LongHorn same-store sales have grown from pre-pandemic levels, with Olive Garden's EBITDA margins also improving[39](index=39&type=chunk) - FCPT's Darden rent coverage has increased from **4.2x** at inception to **5.5x** currently, while Darden's concentration in FCPT's annualized base rent has decreased from **100%** to **51%**[39](index=39&type=chunk) [Diversification: Auto Industry](index=18&type=section&id=2.9%20Diversification:%20Auto%20Industry) FCPT invests in e-commerce and recession-resistant auto service centers, including collision repair and tire services, leased to creditworthy operators in high-traffic corridors, selected for long-term relevance - FCPT targets auto service centers (including collision repair, tire services, gas stations with convenience stores, car washes, and auto parts retailers), leased to creditworthy operators[40](index=40&type=chunk) - Auto service properties are e-commerce and recession-resistant, located in high-traffic corridors, and selected for their long-term relevance, including adaptability to EV utilization[40](index=40&type=chunk) - Limited tenant relocation options due to zoning restrictions contribute to higher tenant renewal probabilities[40](index=40&type=chunk) [Diversification: Medical Retail](index=19&type=section&id=2.10%20Diversification:%20Medical%20Retail) FCPT's medical retail investments focus on e-commerce and recession-resistant outpatient services like urgent care, dental, primary care, and veterinary care, benefiting from operator consolidation and service shifts [Medical Retail Strategy](index=19&type=section&id=2.10.1%20Medical%20Retail%20Strategy) FCPT's medical retail investments focus on outpatient services such as urgent care, dental, primary care, and veterinary care, characterized by e-commerce and recession resistance, benefiting from industry trends - FCPT's medical retail segment primarily focuses on outpatient services such as urgent care, dental, primary care, veterinary care, and outpatient/ambulatory surgery centers[41](index=41&type=chunk) - Medical retail is e-commerce and recession-resistant due to its service nature, large customer base, and favorable demographic trends[41](index=41&type=chunk) - Operator consolidation and organic growth in medical retail are improving tenant credit and scale, with services shifting from hospitals to lower-cost retail centers[41](index=41&type=chunk) [Healthcare Industry Targets](index=20&type=section&id=2.10.2%20Healthcare%20Industry%20Targets) FCPT targets medical retail properties with lower physical building requirements and less acute care, such as urgent care, dental, and primary care clinics, avoiding declining verticals like acute care hospitals - FCPT targets medical retail properties with lower physical building requirements and less acute care, such as urgent care, dental, veterinary, diagnostic/imaging, and primary care clinics[43](index=43&type=chunk) - FCPT avoids investing in acute care hospitals or declining verticals, focusing on properties within new growth verticals with long-term potential[43](index=43&type=chunk) [Conservative Financial Position](index=22&type=section&id=CONSERVATIVE%20FINANCIAL%20POSITION) [Debt Maturity Schedule & Financial Policy](index=22&type=section&id=3.1%20Debt%20Maturity%20Schedule%20%26%20Financial%20Policy) FCPT maintains a conservative financial policy with a well-staggered debt maturity schedule, strong liquidity, minimal floating-rate exposure (**95% fixed-rate**), and investment-grade credit ratings (BBB/Baa3) - FCPT maintains a well-staggered debt maturity schedule with no near-term debt maturities before 2024[47](index=47&type=chunk)[49](index=49&type=chunk) - The company possesses strong liquidity, including a **$250 million** undrawn revolving credit facility and **100%** unencumbered assets[47](index=47&type=chunk)[49](index=49&type=chunk) - FCPT's debt is **95% fixed-rate**, including interest rate hedges, minimizing floating-rate exposure[47](index=47&type=chunk) - FCPT holds investment-grade credit ratings of BBB from Fitch and Baa3 from Moody's[48](index=48&type=chunk) Debt Maturity Schedule (in millions USD) | Year | Unsecured Notes | Unsecured Term Loan | Drawn Revolver | Undrawn Revolver | Total | | :--- | :-------------- | :------------- | :------------- | :--------------- | :---- | | 2024 | $0 | $0 | $0 | $250 | $250 | | 2025 | $0 | $0 | $0 | $0 | $0 | | 2026 | $0 | $0 | $0 | $0 | $0 | | 2027 | $0 | $0 | $0 | $0 | $0 | | 2028 | $75 | $0 | $0 | $0 | $75 | | 2029 | $100 | $0 | $0 | $0 | $100 | | 2030 | $100 | $0 | $0 | $0 | $100 | | 2031 | $50 | $0 | $0 | $0 | $50 | | 2032 | $140 | $0 | $0 | $0 | $140 | | 2033 | $150 | $0 | $0 | $0 | $150 | [Company Momentum Since Inception](index=23&type=section&id=3.2%20Company%20Momentum%20Since%20Inception) Since inception, FCPT has achieved significant growth in its portfolio, annualized base rent, and market capitalization, while diversifying its tenant base and securing investment-grade credit ratings Company Momentum Since Inception (As of March 31, 2023 vs. Inception) | Metric | Inception | As of March 31, 2023 | Change | | :-------------------- | :---------- | :------------ | :----- | | Team Members | 4 | 37 | +33 | | Annualized Base Rent (million USD) | $94.4 | $219.6 | +$125.2 | | Properties | 418 | 1,115 | +697 | | Brands | 5 | 149 | +144 | | Darden % | 100% | 51% | -49% | | Weighted Avg Lease Term | 15 years | 7.6 years | -7.4 years | | Equity Market Cap (billion USD) | $0.848 | $2.3 | +$1.452 | | Enterprise Value (billion USD) | $1.3 | $3.4 | +$2.1 | | Rating | Unrated | BBB (FITCH) / Baa3 (MOODY'S) | Upgraded | - FCPT since inception, has significantly diversified its brand portfolio from **5** to **149**, reducing Darden's concentration in annualized base rent from **100%** to **51%**[50](index=50&type=chunk) - The company has achieved investment-grade credit ratings (BBB/Baa3) since its inception from an unrated status[50](index=50&type=chunk) [Appendix](index=25&type=section&id=APPENDIX) [Acquisition and Underwriting Framework](index=25&type=section&id=4.1%20Acquisition%20and%20Underwriting%20Framework) FCPT's acquisition philosophy targets strong, well-located retail brands with creditworthy lease guarantors, ensuring accretive investments at low costs, using a **50%/50%** credit and real estate scorecard for consistent underwriting - FCPT's acquisition philosophy aims to acquire strong, well-located retail brands with creditworthy lease guarantors, ensuring accretive investments at low costs[53](index=53&type=chunk) - Underwriting criteria are split **50%/50%** between credit and real estate metrics, utilizing a comprehensive scorecard for objective and consistent evaluation[53](index=53&type=chunk) - Key credit criteria include guarantor credit, brand durability, store performance, and lease structure, while real estate criteria cover location, access/visibility, and site/building quality[56](index=56&type=chunk) [Sustainability Framework (ESG)](index=26&type=section&id=4.2%20Sustainability%20Framework%20(ESG)) FCPT integrates ESG principles, continuously reviewing policies for environmental sustainability, social responsibility, employee well-being, and governance, including negative screening in underwriting and maintaining best-in-class corporate governance - FCPT integrates ESG principles into its operations, including environmental risk assessment, values-based negative screening in underwriting, and a commitment to sustainable business practices[57](index=57&type=chunk) - The company fosters an inclusive, team-oriented culture with high employee retention and is certified as a 'Great Place to Work'[57](index=57&type=chunk) - FCPT maintains best-in-class corporate governance, with compensation closely aligned with shareholder interests, and a board of eight directors including four women and seven independent members[57](index=57&type=chunk) [Glossary and Non-GAAP Definitions](index=27&type=section&id=4.3%20Glossary%20and%20Non-GAAP%20Definitions) This section defines key financial terms used in the presentation, including non-GAAP metrics like FFO, AFFO, EBITDA, EBITDAre, and Adjusted EBITDAre, along with cautionary notes on their use and limitations - The presentation includes non-GAAP financial measures such as FFO, AFFO, EBITDA, EBITDAre, and Adjusted EBITDAre, provided as supplemental information to GAAP metrics[58](index=58&type=chunk)[59](index=59&type=chunk) - These non-GAAP measures are not substitutes for GAAP financial performance indicators and have limitations as they exclude certain non-cash and other costs[58](index=58&type=chunk)[59](index=59&type=chunk)[61](index=61&type=chunk) - Definitions for ABR (Annualized Base Rent), Tenant EBITDAR, and Tenant EBITDAR Coverage are also provided to clarify portfolio performance metrics[58](index=58&type=chunk)[60](index=60&type=chunk) [Reconciliation Schedules](index=28&type=section&id=4.4%20Reconciliation%20Schedules) This section provides reconciliation tables for net income to Adjusted EBITDAre, and FFO and AFFO, detailing adjustments for the three months ended March 31, 2024 and 2023 [Net Income to Adjusted EBITDAre Reconciliation](index=28&type=section&id=4.4.1%20Net%20Income%20to%20Adjusted%20EBITDAre%20Reconciliation) This reconciliation table presents the net income to EBITDA, EBITDAre, and Adjusted EBITDAre reconciliation for the three months ended March 31, 2024 and 2023, detailing adjustments for interest expense, depreciation, and gains/losses on dispositions Net Income to Adjusted EBITDAre Reconciliation (For the Three Months Ended March 31) | (thousand USD) | 2024 | 2023 | | :------------------------------------------ | :----- | :----- | | Net Income | $24,074 | $23,155 | | Adjustments: | | | | Interest Expense | 12,281 | 9,918 | | Income Tax Expense | 27 | 48 | | Depreciation & Amortization | 13,467 | 12,176 | | **EBITDA** | **49,849** | **45,297** | | Adjustments: | | | | Gain on Dispositions & Real Estate Exchanges | - | (1,562) | | Real Estate Impairment | - | - | | **EBITDAre** | **49,849** | **43,735** | | Adjustments: | | | | Real Estate Transaction Costs | 49 | 51 | | Loss on Debt Extinguishment | - | - | | **Adjusted EBITDAre** | **49,898** | **43,786** | | Annualized Adjusted EBITDAre | 199,591 | 175,142 | - Adjusted EBITDAre increased from **$43,786 thousand** in Q1 2023 to **$49,898 thousand** in Q1 2024[65](index=65&type=chunk) [FFO & AFFO Reconciliation](index=29&type=section&id=4.4.2%20FFO%20%26%20AFFO%20Reconciliation) This reconciliation table presents the net income to FFO and AFFO reconciliation for the three months ended March 31, 2024 and 2023, detailing adjustments for depreciation, straight-line rent, equity-based compensation, and other non-cash items FFO & AFFO Reconciliation (For the Three Months Ended March 31) | (thousand USD, except share and per share data) | 2024 | 2023 | | :------------------------------------------ | :----- | :----- | | Net Income | $24,074 | $23,155 | | Depreciation & Amortization | 13,430 | 12,176 | | Realized Gain on Real Estate Sales | - | (1,562) | | **FFO (NAREIT Defined)** | **$37,504** | **$33,769** | | Straight-Line Rent Income | (1,174) | (1,100) | | Deferred Income Tax Benefit | (72) | (48) | | Equity-Based Compensation Expense | 1,640 | 1,400 | | Non-Cash Amortization of Deferred Financing Costs | 638 | 500 | | Depreciation of Non-Real Estate Investments | 37 | 37 | | Other Non-Cash Income Adjustments | 55 | 55 | | **Adjusted Funds From Operations (AFFO)** | **$39,128** | **$34,591** | | Fully Diluted Shares Outstanding | 92,044,319 | 90,000,000 | | FFO per Share (Diluted) | $0.41 | $0.38 | | AFFO per Share (Diluted) | $0.43 | $0.38 | - Diluted FFO per share increased from **$0.38** in Q1 2023 to **$0.41** in Q1 2024, while diluted AFFO per share rose from **$0.38** to **$0.43** over the same period[67](index=67&type=chunk) [Footnotes](index=30&type=section&id=4.5%20Footnotes) This section provides detailed footnotes and definitions for various data and metrics used in the investor presentation, clarifying data sources, calculation methodologies, and specific exclusions - Footnotes clarify data for portfolio and investment highlights, financial highlights, and annual acquisition volume, often specifying 'as of March 31, 2024' or exclusions[69](index=69&type=chunk) - Definitions for Annualized Base Rent (ABR), Tenant EBITDAR, and Tenant EBITDAR Coverage are provided, along with the methodology for estimating Darden EBITDAR coverage[71](index=71&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - Specific data sources are cited, such as Nation's Restaurant News for average brand sales and The Baird Restaurant Surveys for industry trends[72](index=72&type=chunk)[73](index=73&type=chunk)