Four ners Property Trust(US:FCPT)2025-10-29 20:15Revenue Growth - Rental revenue increased by $7.2 million, or 12%, to $66.5 million for the three months ended September 30, 2025, compared to $59.3 million for the same period in 2024[204]. - Total revenues for the three months ended September 30, 2025, were $74.1 million, up from $66.8 million in 2024, representing an increase of 10.2%[204]. - Net income attributable to common shareholders for the three months ended September 30, 2025, was $28.8 million, compared to $25.6 million in 2024, reflecting a 8.8% increase[204]. - Restaurant revenues increased by $138 thousand during the three months ended September 30, 2025, primarily due to higher net pricing[215]. - Restaurant revenues increased by $326 thousand, or 1%, during the nine months ended September 30, 2025, primarily due to higher net pricing[226]. - Funds from operations (FFO) for the three months ended September 30, 2025, were $43.865 million, up from $39.184 million in the same period of 2024, reflecting a year-over-year increase of approximately 6.9%[252]. - Adjusted funds from operations (AFFO) for the three months ended September 30, 2025, were $46.448 million, compared to $41.080 million for the same period in 2024, indicating a year-over-year increase of approximately 13.5%[252]. Expenses and Costs - General and administrative expenses increased by $669 thousand, or 11%, to $6.5 million for the three months ended September 30, 2025, primarily due to increased stock-based compensation[208]. - Depreciation and amortization expense rose by approximately $1.4 million, or 11%, for the three months ended September 30, 2025, due to the acquisition of 120 properties[210]. - Total operating expenses for the three months ended September 30, 2025, were $32.5 million, compared to $29.1 million in 2024, marking an increase of 8.2%[204]. - Property expenses for the nine months ended September 30, 2025, were $10.3 million, an increase from $8.5 million in the same period of 2024, primarily due to vacancy-related expenses and franchise tax[222]. - Total restaurant expenses increased by $221 thousand during the nine months ended September 30, 2025, primarily due to improved staffing[226]. Occupancy and Lease Information - The lease portfolio had a 99.5% occupancy rate based on leasable square footage as of September 30, 2025[203]. - The average remaining lease term was 7.1 years, with an average annual rent escalation of 1.4% through December 31, 2029[209]. Financing and Capital Structure - The company had $6.7 million in cash and cash equivalents and $339 million of borrowing capacity under its revolving credit facility as of September 30, 2025[231]. - The company entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement, allowing borrowings up to $940 million, including a $350 million revolving credit facility[232]. - The weighted average interest rate on term loans was 3.75% as of September 30, 2025, after considering interest rate hedges[231]. - The company has issued $625 million of senior unsecured fixed rate notes in private placements[239]. - The company has a total outstanding balance of $625 million in senior unsecured fixed rate notes, with maturities ranging from 2026 to 2033 and interest rates between 2.74% and 6.44%[240]. - The company plans to fund acquisitions and capital expenditures primarily through cash provided by operating activities and borrowings under its $350 million revolving credit facility[241]. - The company has terminated its previous ATM program and initiated a new program allowing for the sale of up to $500 million in common stock[242]. - The company continually evaluates alternative financing options and expects to meet long-term capital needs through debt or equity securities issuance[249]. Share Issuance - For the three months ended September 30, 2025, the company generated net proceeds of $60.793 million from the sale of 2,233,561 shares under its ATM program, with a net weighted average sales price of $27.22 per share[245]. - For the nine months ended September 30, 2025, the company reported net proceeds of $122.786 million from the sale of 4,474,793 shares under the ATM program, with a net weighted average sales price of $27.44 per share[246]. - As of September 30, 2025, the company had $194.4 million available for issuance under its ATM programs[247]. Taxation - Income tax expense for the nine months ended September 30, 2025, was $235 thousand, up from $207 thousand in the same period of 2024, reflecting the acquisition of additional properties in states with income taxes[225]. - The company recorded an income tax benefit of $30 thousand at the Kerrow Restaurant Operating Business for the nine months ended September 30, 2025, compared to $4 thousand in 2024[227].