Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (June 2022)
34 slides from Four Corners Property Trust's investor presentation, Jun 6, 2022
Slide 1: Investor Presentation June 2022
1 | FCPT | JUNE 2022 www.fcpt .comINVESTOR PRESENTATION | JUNE 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
Slide 2: Forward Looking Statements and Disclaimers
2 | FCPT | JUNE 2022 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 sta
Slide 3: Agenda
3 | FCPT | JUNE 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 4: FCPT Highlights
4 | FCPT | JUNE 2022 FCPT HIGHLIGHTS 4 | FCPT | OCTOBER 2019 Analytical, Disciplined Investment Philosophy • Use of consistent, data-driven scorecard to objectively rate every property • Investment committee memo and separate public announcement for every acquisition High-Quality Portfolio • Recentl
Slide 5: 2022 Operating Highlights
5 | FCPT | JUNE 2022 2022 OPERATING HIGHLIGHTS 5 | FCPT | OCTOBER 2019 ____________________ Figures as of 3/31/2022, unless otherwise noted 1. Acquisitions through June 3, 2022 2. See page 31 for non-GAAP definitions, and page 33 for reconciliation of net income to AFFO 3. Weighted averages based on
Slide 6: 2022 Year-to-Date Acquisition Summary
6 | FCPT | JUNE 2022 2022 YEAR-TO-DATE ACQUIS IT ION SUMMARY FCPT has closed $91 million of investments year-to-date through June 3, 2022. The subsector split by acquisition volume was 23% restaurant, 27% medical retail, 39% auto service and 11% other We continue to benefit from increased option
Slide 7: Acquisition Growth
7 | FCPT | JUNE 2022 ACQUIS IT ION GROWTH Annual Cash Base Rent ($ million)1 7 | FCPT | OCTOBER 2019 Number of Properties . 94 94 94 96 101 102 105 105 108 109 110 121 126 127 130 131 139 142 144 148 156 158 162 169 175 178 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3
Slide 8: Agenda
8 | FCPT | JUNE 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 9: FCPT's Strong Performance During the Pandemic
9 | FCPT | JUNE 2022 FCPT’S STRONG PERFORMANCE DURING THE PANDEMIC 99.5% 98.8% 99.6% 99.6% 99.7% 99.8% 99.8% 99.8% 99.7% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 99.6% 99.6% 99.6% 99.6% 99.7% 99.7% 99.8% 99.9% 99.9% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 20
Slide 10: Portfolio Geographic Distribution and Sun Belt Growth
10 | FCPT | JUNE 2022 ___________________ Figures as of 3/31/2022 1. Annual Cash Base Rent (ABR) as defined on page 31 2. Sun Belt States include AZ, NM, OK,TX, MS, AL, GA, SC, NC, TN, AR, LA, FL, southern CA, and southern NV 3. Source: U.S. Census Bureau estimated July 2020 through June 2021 popula
Slide 11: Low Rents and High EBITDAR Coverage
11 | FCPT | JUNE 2022 Building and Ground Lease: 33% 395 leases Darden Spin Portfolio: 56% 411 leases Ground Lease: 11% 148 leases ___________________ 1. See glossary on page 31 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 77% of portfoli
Slide 12: FCPT Evolution Since Spin-Off: Tenant Diversification
12 | FCPT | JUNE 2022 F C P T E V O L U T I ON S I N C E S P I N - O FF : S I G N I F I C A N T P R O G R E S S O N T E N A N T D I V E R S I F I C A TI ON ___________________ 1. Represents current Annual Cash Base Rent (ABR) as of 3/31/2022, as defined on page 31 2. Other Darden represents Bahama B
Slide 13: Agenda
13 | FCPT | JUNE 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 14: Restaurant Sales Trends by Sector
14 | FCPT | JUNE 2022 • Baird’s weekly restaurant survey shows both quick service and casual dining restaurants are performing above pre-COVID-19 levels Baird Restaurants Surveys: Weekly Same-Store Sales vs. Two/Three-Years Prior ____________________ Source: Data per The Baird Restaurant Surveys (pr
Slide 15: Darden Performance and Concentration
15 | FCPT | JUNE 2022 DARDEN PERFORMANCE AND CONCENTRATION Inception November 2015 FCPT BBB- Rating January 2017 Pre-COVID Q4 2019 Current Q1 2022 Darden Restaurants Rating BBB BBB BBB BBB Sales per Store - Olive Garden ($ millions) $4.9 $4.9 $5.1 $5.2 Sales per Store - LongHorn ($ millions) $3.7 $3
Slide 16: Agenda
16 | FCPT | JUNE 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 17: Conservative Financial Policies
17 | FCPT | JUNE 2022 CONSERVATIVE F INANCIAL POLICIES As FCPT continues to grow and diversify, the Company is committed to maintaining a conservative balance sheet with financial flexibility Leverage Continue to maintain conservative leverage and coverage metrics Net debt to cash EBITDA ratio i
Slide 18: Investment Grade Ratings and Ratings-Based Pricing
18 | FCPT | JUNE 2022 ___________________ 1. Assumes 35%-40% leverage-based spread rate 2. Includes facility fee rate. Annual savings assumes full $250 million revolver draw 3. For the leverage-based grid, extended term loans from June 2021 A-1 and A-2 rate is 1.30%, while non-extended term loan A-2
Slide 19: Company Momentum Since Inception
19 | FCPT | JUNE 2022 COM PAN Y MOM ENTUM SINCE INCEPTION Team Members 4 +26 30 Annual Base Rent1 $94.4 million +$83.8 million / +89% $178.2 million Properties 418 +519 / +124% 937 Brands 5 +108 113 % Darden2 100% -41% 59% Weighted Average Lease Term 15 years - 6.0 years 9.0 years Equity Market Cap
Slide 20: FCPT Debt Maturity Schedule
20 | FCPT | JUNE 2022 FCPT DEBT MATURITY SCHEDULE ___________________ Figures as of 3/31/2022 1. The revolving credit facility expires on November 9, 2025 subject to FCPT’s availability to extend the term for one additional six-month period to May 9, 2026 Current Debt Maturity Schedule ($ millions)
Slide 21: Summary Capitalization and Financials
21 | FCPT | JUNE 2022 ___________________ Figures represent FCPT financials as of and for three months ended 3/31/2022 1. Represents Q1 2022 annualized results. See page 32 for reconciliation of net income to adjusted EBITDAre and page 31 for non-GAAP definitions 2. Figure represents Annual Cash Bas
Slide 22: Agenda
22 | FCPT | JUNE 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 23: Maintaining Acquisition Philosophy and Criteria
23 | FCPT | JUNE 2022 MAINTAINING ACQUIS IT ION PHILOSOPHY AND CRITERIA Acquisition Philosophy • Acquire strong restaurants and retail brands that are well located with creditworthy lease guarantors • Purchase assets only when accretive to cost of capital with a focus on low basis • Focused on addin
Slide 24: Acquisitions by Year
24 | FCPT | JUNE 2022 ACQUIS IT IONS BY YEAR 24 | FCPT | OCTOBER 2019 Note: Figures exclude capitalized transaction costs. Initial cash yield calculation excludes $2.1 million, and $2.4 million of real estate purchases in our Kerrow operating business for 2019 and 2020, respectively 2016 2017 2018 5
Slide 25: Non-Restaurant: Auto Service Industry
25 | FCPT | JUNE 2022 Auto service is a resilient industry as it is both e-commerce and recession resistant. It has a service component and consumer cost-savings angle to repair instead of purchasing new vehicles Most auto service tenants were deemed “essential” businesses during COVID-19 Auto
Slide 26: Non-Restaurant: Medical Retail Industry
26 | FCPT | JUNE 2022 Representative Acquired Brands NON-RESTAURANT: MEDICAL RETAIL INDUSTRY Portfolio includes 30 leases (2% of annual base rent)1 FCPT targets medical retail locations such as urgent care, dental clinics, dialysis centers, and veterinary care E-commerce and recession resistan
Slide 27: Lease Maturity Schedule
27 | FCPT | JUNE 2022 0.4% 1.3% 2.6% 2.1% 2.3% 12.3%12.7% 11.0%11.1% 10.6% 6.7% 13.6% 1.5% 1.7% 3.0% 1.1% 0.2% 0.6% 1.6% 1.0% 0.1% 0.0% 2.5% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 LEASE MATURITY SCHEDULE ___________________
Slide 28: Brand Diversification
28 | FCPT | JUNE 2022 FCPT Portfolio Brands Rank Brand Name Number Square Feet (000s) % of ABR(1) Rank Brand Name Number Square Feet (000s) % of ABR(1) 1 Olive Garden 312 2,655 43.7% 16 Verizon 12 34 0.7% 2 Longhorn Steakhouse 115 645 12.4% 17 Fresenius 8 61 0.7% 3 Chili's 80 438 9.0% 18 National Ti
Slide 29: Sustainability Framework
29 | FCPT | JUNE 2022 SUSTAINABIL ITY FRAMEWORK Our commitment to sustainability and Environmental, Social and Governance (ESG) principles creates value for FCPT and our shareholders. We continuously review our internal policies to advance in the areas of environmental sustainability, social respons
Slide 30: 2022 Year to Date Acquisitions
30 | FCPT | JUNE 2022 2022 YEAR TO DATE ACQUIS IT IONS 1. Totals indicate weighted average 2022 Closed Acquisitions Through June 3 # of Properties Purchase Price ($ millions) Initial Cash Yield Initial Term (years)1 Q1 2022 Summary: 18 $42.0 6.7% 8 Q2 2022 Closed Acquisitions: Tenant Location # of P
Slide 31: Glossary and Non-GAAP Definitions
31 | FCPT | JUNE 2022 GLOSSARY AND NON-GAAP DEFINIT IONS This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of o
Slide 32: Reconciliation of Net Income to Adjusted EBITDAre
32 | FCPT | JUNE 2022 RECONCIL IATION OF NET INCOME TO ADJUSTED EBITDAR E __________________________ 1. See glossary on page 31 for non-GAAP definitions ($000s, except shares and per share data) Unaudited 2022 2021 Net Income 22,286$ 20,622$ Adjustments: Interest expense 8,375 7,633 Income tax expen
Slide 33: FFO & AFFO Reconciliation
33 | FCPT | JUNE 2022 FFO & AFFO RECONCIL IATION ___________________________ 1. Assumes the issuance of common shares for OP units held by non-controlling interest ($000s, except shares and per share data) Unaudited 2022 2021 Net income 22,286$ 20,622$ Depreciation and amortization 9,668 8,215 Reali
Slide 34: Investor Presentation June 2022
34 | FCPT | JUNE 2022 www.fcpt .comINVESTOR PRESENTATION | JUNE 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
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