Four ners Property Trust(FCPT) - 2024 Q4 - Annual Report

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]