Financial Data and Key Metrics Changes - For Q2 2025, the company recorded revenue of $124.9 million and a net loss attributable to common stockholders of $35.1 million, with AFFO at $53.1 million or $0.24 per share [16][19] - The gross outstanding debt balance was $3.1 billion at the end of Q2 2025, a reduction of $2 billion from the end of 2024 [17] - The net debt to adjusted EBITDA ratio improved to 6.6 times, down from 8.1 times at the end of 2024 [17] Business Line Data and Key Metrics Changes - The company completed the $1.8 billion sale of its multi-tenant retail portfolio, increasing occupancy to 98% from 97% as of year-end 2024 [5][6] - The percentage of leases with rent escalators increased to 88% from 81% [6] - The office portfolio maintained 100% rent collection and had the highest percentage of investment-grade tenancy at 77% [9] Market Data and Key Metrics Changes - Geographically, 70% of straight-line rent is earned in North America and 30% in Europe, providing diversification across economic cycles [13][14] - The company has reduced its exposure to the gas and convenience store sector, with assets sold amounting to approximately $108 million, decreasing portfolio exposure to 2.1% from 5.3% [10][11] Company Strategy and Development Direction - The company aims to drive sustainable long-term growth by optimizing its portfolio, reducing leverage, and lowering its cost of capital [5] - The strategic focus includes reducing exposure to non-core assets, particularly in the office sector, while maintaining a disciplined approach to tenant retention [9][10] - The company plans to use proceeds from asset sales to fund stock buybacks and further deleverage [43][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in performance and raised the lower end of AFFO per share guidance to a range of $0.92 to $0.96 for the remainder of 2025 [19] - The company is focused on completing ongoing initiatives, including dispositions and lease renewals, to maintain earnings within the stated guidance range [27] - Management acknowledged the disappointing share price performance despite improvements in the balance sheet and extended debt maturities [13] Other Important Information - The company repurchased 10.2 million shares at a weighted average price of $7.52, totaling $77 million, capitalizing on an AFFO yield of approximately 12% [12] - The company has no remaining debt maturities in 2025 and $95 million of debt tied to retail assets expiring in 2026 [12] Q&A Session Summary Question: What is the target percentage for office assets and the timeline for reduction? - Management indicated a strategic approach to office portfolio reduction, emphasizing the strong performance and high-quality tenants, without providing specific targets or timelines [25][26] Question: When does management expect earnings to begin growing again? - Management raised the lower end of the earnings guidance to $0.92 to $0.96 per share and indicated that they would provide guidance for 2026 later in the year [27] Question: Can management comment on the recent share sale by the CEO? - The CEO explained that the sale was due to personal obligations and should not be interpreted negatively regarding the company's future [28][29] Question: How does management view the auto manufacturing sector within the portfolio? - Management expressed confidence in the critical assets within the auto manufacturing sector, particularly those tied to US manufacturers, and does not foresee significant issues [33][34] Question: What is the pace of future dispositions? - Management indicated a pipeline of approximately $300 million in future dispositions and emphasized the strategic nature of these sales [42]

Financial Data and Key Metrics Changes - The company reported AFFO per share of $0.44, which is up 2.8% from Q2 last year [23] - Rental income for Q2 was $64.5 million, representing growth of over 11% compared to the previous year [23] - Cash G&A expense, excluding stock-based compensation, was $4.4 million, representing 6.9% of cash rental income for the quarter, down from 7.4% in the same quarter last year [24] Business Line Data and Key Metrics Changes - In Q2, the company acquired 24 properties for $84 million at a blended cap rate of 6.7% [14] - The automotive sector accounted for 68% of total acquisition volume, indicating a strong focus on this area [14] - The company has diversified its portfolio, with 34% of rent now coming from sectors outside casual dining [10] Market Data and Key Metrics Changes - The company reported a rent coverage ratio of five times for the majority of its portfolio, one of the strongest in the net lease industry [8] - The average age of passenger vehicles in the U.S. is now at a record 14 years, which is expected to drive demand for automotive services [16] Company Strategy and Development Direction - The company aims to maintain a defensive portfolio focused on central retail and services, which are seen as tariff resistant [11] - The strategy includes modulating acquisitions based on cost of capital, with a focus on high-quality assets [6][7] - The company is committed to maintaining a strong balance sheet, with a net debt to adjusted EBITDAre ratio of 4.5 times [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience, highlighting a strong track record with low bad debt expense [65] - The company is well-positioned to execute its strategy regardless of near-term market conditions, with significant liquidity available for acquisitions [65] Other Important Information - The company has raised nearly $505 million in equity over the last twelve months, providing significant capacity for acquisitions [20] - The portfolio occupancy remains strong at 99.4%, with 99.8% of base rent collected for Q2 [25] Q&A Session Summary Question: Inquiry about acquisition team capacity - Management indicated that the team is appropriately staffed and has the capacity to do more acquisitions if favorable pricing is available [29] Question: Impact of cap rate changes on acquisition opportunities - A 25 basis point decrease in cap rates could potentially increase acquisition volume by $100 million to $200 million [31] Question: Darden exposure and acquisition strategy - Management confirmed that while they have diversified Darden exposure, they will still acquire Darden-related assets if the pricing is favorable [33] Question: Deal flow and competitive landscape - Management noted that deal flow has been consistent, but pricing remains a key factor in determining acquisition activity [48] Question: Outlook for veterinary retail property acquisitions - Management expressed interest in the veterinary retail space, indicating potential for more deals in the future [61]

Financial Data and Key Metrics Changes - The company reported AFFO per share of $0.44, which is up 2.8% from Q2 last year [20] - Rental income for Q2 was $64.5 million, representing growth of over 11% compared to the same quarter last year [20] - The net debt to adjusted EBITDAre was 4.5 times, which is below the stated guidance of 5.5 to 6 times [18] Business Line Data and Key Metrics Changes - In Q2, the company acquired 24 properties for $84 million at a blended cap rate of 6.7% [12] - The automotive sector accounted for 68% of total acquisition volume, indicating a strong focus on this area [12] - The company has diversified its portfolio, with 34% of rent now coming from sectors outside casual dining [8] Market Data and Key Metrics Changes - The company noted that same-store sales for Olive Garden and LongHorn grew nearly 7% for the quarter ended May 2025 [8] - Chili's reported a same-store sales growth of 32% for the quarter ended March 2025, indicating strong performance in the casual dining sector [7] Company Strategy and Development Direction - The company aims to maintain a defensive portfolio focused on central retail and services, which are seen as tariff resistant [9] - The strategy includes modulating acquisitions based on the cost of capital, allowing the company to protect spreads without compromising portfolio quality [6] - The company is committed to maintaining high-quality standards in acquisitions and has a strong competitive advantage in its ability to fluctuate acquisition volumes [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience, highlighting a strong track record with low bad debt expense and effective releasing results [65] - The company anticipates a pullback in consumer spending due to potential recession or high inflation but believes it is well-positioned with low rents [9] - Management indicated that the current market conditions allow for continued execution of the company's strategy, with significant available capital for acquisitions [65] Other Important Information - The company has raised nearly $505 million in equity over the last twelve months, providing significant capacity for acquisitions [17] - The portfolio occupancy remains strong at 99.4%, with 99.8% of base rent collected for Q2 [22] Q&A Session Summary Question: Inquiry about acquisition team capacity - Management stated that the company is appropriately staffed and has the capacity to do more acquisitions if favorable pricing is available [25][27] Question: Impact of cap rate changes on acquisition opportunities - Management indicated that a 25 basis point decrease in cap rates could significantly increase acquisition opportunities, potentially by $100 million to $200 million [29][30] Question: Darden exposure and acquisition strategy - Management confirmed that while they have diversified Darden exposure, they will not hesitate to acquire Darden-related assets if the pricing is favorable [31][32] Question: Deal flow and competitive landscape - Management noted that deal flow has been consistent, but pricing remains a key factor in determining acquisition activity [48][49] Question: Future of veterinary retail property acquisitions - Management expressed interest in the veterinary retail sector, indicating it is a space they are comfortable exploring further [61]

Group 1 - The article focuses on the real estate life cycle and the changes occurring within the net lease sector over the past three years [1] - The net lease sector has been analyzed in depth, highlighting the challenges it faces [1]

Investor Presentation and Supplemental Information 146, 204, 238 Second Quarter 2025 Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements can be identified by the use of words such as "expect," "plan," "will," "estimate," "project," "intend," "believe," "guidance," and other similar expressions that do not relate to historical matters. These forward-looki ...

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements can be identified by the use of words such as "expect," "plan," "will," "estimate," "project," "intend," "believe," "guidance," and other similar expressions that do not relate to historical matters. These forward-looking statements are subject to known and unknown risks and uncertainties that can cause actual res ...

Company Highlights - FCPT acquired 64 properties for $199 million at a 71% cap rate in the last 5 months of 2024[7] - The company raised over $102 million in Q4 and $104 million in Q1 to date through ATM[7] - FCPT has $204 million of unsettled equity forwards as of March 17, 2025[7] - The company extended and upsized its credit facility capacity in January 2025, including a $350 million revolver capacity and a $225 million term loan[7] Portfolio Composition - Olive Garden accounts for 34% of the portfolio, while LongHorn represents 10%[7] - The company's portfolio consists of 1220 leases across 163 brands[50, 54] - Darden spin-off properties have 56x rent coverage[15, 18] Financial Metrics - FCPT's net debt to adjusted EBITDAre ratio is 49x[15, 52] - The company's average annual escalator is 14%[52] - FCPT's Q4 AFFO per share is $044[50]

Four Corners Property Trust NYSE: FCPT INVESTOR PRESENTATION Q1 2025 FORWARD LOOKING STATEMENTS AND DISCLAIMERS Cautionary note regarding forward-looking statements: This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward- looking statements include all statements that are not historical statements of fact and those regarding FCPT's intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance ...