Four ners Property Trust(US:FCPT)2025-05-01 20:21Part I: Financial Information Item 1. Financial Statements This section presents the unaudited consolidated financial statements for Q1 2025 and 2024, including balance sheets, income, comprehensive income, equity, and cash flow statements, with detailed notes Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | $2,711,152 | $2,653,026 | +2.2% | | Total Liabilities | $1,278,315 | $1,202,236 | +6.3% | | Total Equity | $1,432,837 | $1,450,790 | -1.2% | Consolidated Statements of Income Highlights (Unaudited) | Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $71,476 | $66,467 | +7.5% | | Net Income | $26,186 | $24,074 | +8.8% | | Diluted Net Income Per Share | $0.26 | $0.26 | 0.0% | | Dividends Declared Per Share | $0.3550 | $0.3450 | +2.9% | Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric | Three Months Ended Mar 31, 2025 (in thousands) | Three Months Ended Mar 31, 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $51,560 | $27,625 | +86.6% | | Net Cash Used in Investing Activities | ($58,086) | ($16,449) | +253.1% | | Net Cash Provided by (Used in) Financing Activities | $24,708 | ($9,195) | N/A | Notes to Consolidated Financial Statements These notes detail the company's organization, accounting policies, and financial statement items, covering operating segments, real estate acquisitions, debt, derivatives, and segment performance, including the January 2025 credit agreement amendment - The company operates in two reportable segments: real estate operations and restaurant operations (Kerrow Restaurant Operating Business)26178 - In Q1 2025, the company invested $57.8 million in 23 properties, a significant increase from $16.7 million invested in four properties in Q1 20248384 - On January 31, 2025, the company entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement, providing for borrowings up to $940 million and extending various maturity dates103104 - As of March 31, 2025, $535 million of the company's variable-rate debt is hedged by interest rate swaps to manage interest rate risk121 - The company has a significant concentration of credit risk, with Darden leases representing approximately 47.0% of scheduled base rents76 - Subsequent to the quarter end, the company invested an additional $13.2 million in five net lease properties190 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial performance, noting an 8.4% rental revenue increase from acquisitions, higher G&A, and details liquidity, including a new credit agreement and ATM program, with an increase in AFFO per share - As of March 31, 2025, the company's portfolio comprised 1,221 properties with 99.4% occupancy and an average remaining lease term of 7.3 years198 - Rental revenue increased by $4.9 million (8.4%) year-over-year, primarily due to the acquisition of 106 leased properties between April 1, 2024, and March 31, 2025200 - General and administrative expenses rose by $1.4 million (23.0%) year-over-year, mainly due to increased stock-based compensation expense202 - The company's financing strategy includes using its $350 million revolving credit facility and a $500 million ATM program As of March 31, 2025, $231.9 million was available for issuance under the ATM program224225229 Non-GAAP Financial Measures (per diluted share) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | FFO per diluted share | $0.41 | $0.41 | 0.0% | | AFFO per diluted share | $0.44 | $0.43 | +2.3% | Item 3. Quantitative and Qualitative Disclosures About Market Risk No material changes to the company's market risk exposure occurred since fiscal year 2024, with detailed disclosures referenced in the Annual Report on Form 10-K - The company reports no material changes to its quantitative or qualitative market risk exposure since December 31, 2024, incorporating by reference information from its 2024 Annual Report on Form 10-K241 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes identified in internal control over financial reporting during Q1 2025 - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period242 - There were no changes in internal control over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls243 Part II: Other Information Item 1. Legal Proceedings The company is involved in routine legal claims, which management believes will not materially adversely affect its operations, financial condition, or liquidity - The company is party to various claims and legal actions considered routine and incidental to its business, and management does not expect them to have a material adverse effect246 Item 1A. Risk Factors No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, have occurred - There have been no material changes to the risk factors as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024247 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - The company reported 'None' for this item248 Item 3. Defaults Upon Senior Securities The company reported no defaults upon senior securities during the period - The company reported 'None' for this item249 Item 4. Mine Safety Disclosure This item is not applicable to the company's business operations - This item is 'Not Applicable'250 Item 5. Other Information The company reported no other material information, including no director or officer adopting or terminating a Rule 10b5-1 trading arrangement during the quarter - During Q1 2025, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement251 Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including corporate governance documents, the new credit agreement, and required officer certifications - Key exhibits filed with this report include the Fourth Amended and Restated Revolving Credit and Term Loan Agreement and certifications by the Principal Executive Officer and Principal Financial Officer254