Four ners Property Trust(FCPT) - 2025 Q1 - Quarterly Results

Executive Summary Management Comments FCPT demonstrated strong performance in Q1 2025, achieving the highest first-quarter acquisition volume in company history, significantly enhancing liquidity, and reducing leverage to a seven-year low - The company achieved its highest first-quarter acquisition volume in history during Q1 2025, acquiring over $56 million in properties[2] - The company enhanced liquidity to a record high and reduced leverage to a seven-year low through equity issuance and an increased revolving credit facility[2] Rent Collection Update As of March 31, 2025, the company's portfolio achieved a contractual base rent collection rate of 99.5% Q1 2025 Rent Collection Rate | Metric | Q1 2025 | | :--- | :--- | | Rent Collection Rate | 99.5% | Financial Highlights Rental Revenue and Net Income Attributable to Common Shareholders Q1 2025 rental revenue increased by 8.4% year-over-year to $63.5 million, with net income attributable to common shareholders at $26.2 million and diluted EPS remaining flat compared to the prior year Q1 2025 Rental Revenue and Net Income | Metric | Q1 2025 (millions USD) | Q1 2024 (millions USD) | YoY Change | | :--- | :--- | :--- | :--- | | Rental Revenue | $63.5 | $58.573 | +8.4% | | Net Income Attributable to Common Shareholders | $26.2 | $24.0 | +9.2% | | Diluted Net Income Per Share | $0.26 | $0.26 | 0% | Funds from Operations (FFO) Diluted FFO per share, as defined by NAREIT, was $0.41 in Q1 2025, consistent with Q1 2024 Q1 2025 FFO | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Diluted FFO Per Share | $0.41 | $0.41 | 0% | Adjusted Funds from Operations (AFFO) Diluted AFFO per share was $0.44 in Q1 2025, an increase of $0.01 from Q1 2024 Q1 2025 AFFO | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Diluted AFFO Per Share | $0.44 | $0.43 | +$0.01 | General and Administrative (G&A) Expense Q1 2025 G&A expense totaled $7.6 million, including $2.8 million in equity-based compensation, an increase from the prior year, while cash G&A as a percentage of cash rental revenue slightly decreased Q1 2025 General and Administrative Expense | Metric | Q1 2025 (millions USD) | Q1 2024 (millions USD) | YoY Change (millions USD) | | :--- | :--- | :--- | :--- | | General and Administrative Expense | $7.6 | $6.2 | +$1.4 | | Equity-Based Compensation Expense | $2.8 | $1.6 | +$1.2 | | Cash General and Administrative Expense | $4.9 | $4.6 | +$0.3 | | Cash G&A as % of Cash Rental Revenue | 7.7% | 7.9% | -0.2% | Dividends FCPT declared a Q1 2025 common stock dividend of $0.3550 per share Q1 2025 Dividends | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Common Stock Dividend Per Share | $0.3550 | $0.3450 | Real Estate Portfolio & Activity Real Estate Portfolio Overview As of March 31, 2025, the company's portfolio comprised 1,221 properties across 47 states, with an occupancy rate of 99.4% and a weighted average remaining lease term of approximately 7.3 years Real Estate Portfolio Overview as of March 31, 2025 | Metric | Data | | :--- | :--- | | Number of Properties | 1,221 | | States Covered | 47 | | Occupancy Rate | 99.4% | | Weighted Average Remaining Lease Term | 7.3 Years | Acquisitions In Q1 2025, FCPT acquired 23 properties for a total purchase price of $56.5 million, with an initial weighted average cash yield of 6.7% and a weighted average remaining lease term of 17.4 years, primarily consisting of quick-service restaurants and auto service properties Q1 2025 Acquisition Details | Metric | Data | | :--- | :--- | | Number of Properties Acquired | 23 | | Total Purchase Price (millions USD) | $56.5 | | Initial Weighted Average Cash Yield | 6.7% | | Weighted Average Remaining Lease Term | 17.4 Years | | Property Type Composition | 83% Quick-Service Restaurants, 17% Auto Service | Dispositions FCPT did not dispose of any properties in Q1 2025 - The company did not complete any property dispositions in Q1 2025[12] Liquidity and Capital Markets Capital Raising The company raised capital by selling a significant number of common shares through its ATM program, with additional shares remaining to be settled under existing forward sale agreements 2025 Capital Raising Activity | Metric | Q1 2025 | As of April 30, 2025 | | :--- | :--- | :--- | | Common Shares Sold via ATM Program | 5,266,452 Shares | 5,978,769 Shares | | Average Gross Price Per Share | $28.30 | $28.28 | | Expected Gross Proceeds (millions USD) | $149.0 | $169.1 | | Shares Remaining to be Settled Under Existing Forward Sale Agreements | - | 9,009,344 Shares | | Expected Gross Proceeds Under Existing Forward Sale Agreements (millions USD) | - | $253.6 | Liquidity Position As of March 31, 2025, FCPT had approximately $617 million in available liquidity, comprising cash, expected net proceeds from forward sale agreements, and revolving credit facility capacity Available Liquidity as of March 31, 2025 | Component | Amount (millions USD) | | :--- | :--- | | Cash and Cash Equivalents | $22 | | Expected Net Proceeds from Existing Forward Sale Agreements | $245 | | Revolving Credit Facility Availability | $350 | | Total Available Liquidity | $617 | Credit Facilities and Unsecured Notes The company amended its credit facility, increasing the total capacity to $940 million and adding a $225 million term loan; total outstanding debt was $1.215 billion at quarter-end, with a net debt to adjusted EBITDAre ratio of 5.6x - The company entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement, increasing the total facility from $765 million to $940 million, with the revolving credit facility increasing to $350 million and a new $225 million term loan[16] Debt Profile as of March 31, 2025 | Metric | Amount (millions USD) | | :--- | :--- | | Total Outstanding Debt | $1,215 | | Term Loans | $590 | | Unsecured Fixed Rate Notes | $625 | | Revolving Credit Balance | $0 | | Net Debt to Adjusted EBITDAre Ratio | 5.6x (4.4x including equity under forward sale agreements) | Additional Information Conference Call Information Company management will host a conference call and webcast on May 1, 2025, at 12:00 PM ET to discuss Q1 results, with detailed access and replay information provided - The conference call and webcast will be held on May 1, 2025, at 12:00 PM ET, offering dial-in and webcast access, with replay services available until July 30, 2025[17][18] About FCPT FCPT is a Mill Valley, California-based Real Estate Investment Trust (REIT) focused on owning, acquiring, and leasing restaurant and retail properties, aiming to expand its portfolio through net lease arrangements - FCPT is a Real Estate Investment Trust focused on acquiring and leasing restaurant and retail properties, expanding its portfolio through a net lease model[19] Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements as defined by federal securities laws, covering expectations for company operations, financial performance, announced transactions, distributions, and dividend payments, cautioning investors that actual results may differ materially - Forward-looking statements cover operations, financial performance, transactions, and dividend payments, subject to risks and uncertainties, with actual results potentially differing materially from expectations[20] Notice Regarding Non-GAAP Financial Measures This press release and supplemental financial report include non-GAAP financial measures, which are supplementary to, not substitutes for, GAAP financial measures and should be read in conjunction with the most comparable GAAP metrics - Non-GAAP financial measures supplement, rather than replace, GAAP metrics and should be read in conjunction with them; reconciliation tables are available in the investor relations section of the company's website[21] Supplemental Materials and Website Q1 2025 operating results and other company information are available on FCPT's investor relations website - Q1 2025 operating results and other company information are accessible on the investor relations website at investors.fcpt.com[22] Consolidated Financial Statements Consolidated Statements of Income In Q1 2025, the company reported total revenue of $71.5 million, net income of $26.2 million, and diluted net income per share of $0.26 Consolidated Statements of Income Summary (as of March 31) | Metric (thousand USD) | 2025 | 2024 | | :--- | :--- | :--- | | Rental Revenue | $63,482 | $58,573 | | Restaurant Revenue | $7,994 | $7,894 | | Total Revenue | $71,476 | $66,467 | | General and Administrative Expense | $7,639 | $6,213 | | Depreciation and Amortization | $14,429 | $13,467 | | Total Operating Expenses | $32,888 | $30,325 | | Interest Expense | $(12,731) | $(12,281) | | Net Income | $26,186 | $24,074 | | Net Income Attributable to Common Shareholders | $26,156 | $24,044 | | Diluted Net Income Per Share | $0.26 | $0.26 | | Declared Common Stock Dividend Per Share | $0.3550 | $0.3450 | Consolidated Balance Sheets As of March 31, 2025, the company reported total assets of $2.711 billion, total liabilities of $1.278 billion, and total equity of $1.433 billion Consolidated Balance Sheets Summary (as of March 31) | Metric (thousand USD) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Real Estate Investments | $2,469,737 | $2,423,139 | | Cash and Cash Equivalents | $22,263 | $4,081 | | Total Assets | $2,711,152 | $2,653,026 | | Term Loans and Revolving Credit | $580,157 | $516,250 | | Senior Unsecured Notes | $621,802 | $621,639 | | Total Liabilities | $1,278,315 | $1,202,236 | | Additional Paid-in Capital | $1,482,287 | $1,482,698 | | Total Equity | $1,432,837 | $1,450,790 | FFO and AFFO In Q1 2025, the company reported FFO of $40.58 million and AFFO of $43.86 million, with diluted FFO per share at $0.41 and diluted AFFO per share at $0.44 FFO and AFFO Summary (as of March 31) | Metric (thousand USD) | 2025 | 2024 | | :--- | :--- | :--- | | Net Income | $26,186 | $24,074 | | Depreciation and Amortization | $14,392 | $13,430 | | FFO (NAREIT Defined) | $40,578 | $37,504 | | Equity-Based Compensation Expense | $2,760 | $1,640 | | Adjusted Funds from Operations (AFFO) | $43,862 | $39,128 | | Diluted FFO Per Share | $0.41 | $0.41 | | Diluted AFFO Per Share | $0.44 | $0.43 |