Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (April 2022)
33 slides from Four Corners Property Trust's investor presentation, Apr 26, 2022
Slide 1: Investor Presentation | April 2022
1 | FCPT | APRIL 2022 www.fcpt .comINVESTOR PRESENTATION | APRIL 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
Slide 2: Forward Looking Statements and Disclaimers
2 | FCPT | APRIL 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 st
Slide 3: Agenda
3 | FCPT | APRIL 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 4: FCPT Highlights
4 | FCPT | APRIL 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 • Recent
Slide 5: Q1 2022 Operating Highlights
5 | FCPT | APRIL 2022 Q1 2022 OPERATING HIGHLIGHTS 5 | FCPT | OCTOBER 2019 ____________________ Figures as of 3/31/2022, unless otherwise noted 1. See page 30 for non-GAAP definitions, and page 32 for reconciliation of net income to AFFO 2. Weighted averages based on contractual Annual Cash Base Ren
Slide 6: Q1 2022 Acquisition Summary
6 | FCPT | APRIL 2022 Q1 2022 ACQUIS IT ION SUMMARY FCPT closed $42 million of investments in Q1 2022. The subsector split by acquisition volume was 51% restaurant, 33% medical retail, 4% auto service and 13% other We continue to benefit from increased optionality to acquire assets across our ne
Slide 7: Acquisition Growth
7 | FCPT | APRIL 2022 ACQUIS IT ION GROWTH Annual Cash Base Rent ($ 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
Slide 8: Agenda
8 | FCPT | APRIL 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 9: FCPT's Strong Performance During the Pandemic
9 | FCPT | APRIL 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 2
Slide 10: Portfolio Composition and Tenant Rent Coverage
10 | FCPT | APRIL 2022 Building and Ground Lease: 33% 395 leases Darden Spin Portfolio: 56% 411 leases Ground Lease: 11% 148 leases ___________________ 1. See glossary on page 30 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 77% of portfol
Slide 11: FCPT Evolution Since Spin-Off: Tenant Diversification
11 | FCPT | APRIL 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 30 2. Other Darden represents Bahama
Slide 12: Geographic Diversification
12 | FCPT | APRIL 2022 GEOGRAPHIC DIVERSIF ICATION ___________________ Figures as of 3/31/2022 1. Annual Cash Base Rent (ABR) as defined on page 30 2. Source: U.S. Census Bureau estimated July 2020 through June 2021 population growth 937 Properties 46 States 113 Brands 6.1 mm sq ft Annualized Base R
Slide 13: Agenda
13 | FCPT | APRIL 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 14: Restaurant Sales Trends by Sector
14 | FCPT | APRIL 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 (p
Slide 15: Darden Performance and Concentration
15 | FCPT | APRIL 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 $
Slide 16: Agenda
16 | FCPT | APRIL 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 17: Conservative Financial Policies
17 | FCPT | APRIL 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
Slide 18: Company Momentum Since Inception
18 | FCPT | APRIL 2022 COM PAN Y MOM ENTUM SINCE INCEPTION Team Members 4 +26 30 Annual Base Rent1 $94.4 million +$83.8 million / +89% $178.2 million Properties 418 +519 / +124% 937 Brands 5 +108 113 % Darden2 100% -41% 59% Weighted Average Lease Term 15 years - 6.0 years 9.0 years Equity Market Cap
Slide 19: FCPT Debt Maturity Schedule
19 | FCPT | APRIL 2022 FCPT DEBT MATURITY SCHEDULE ___________________ Figures as of 3/31/2022 1. The revolving credit facility expires on November 9, 2025 subject to FCPT’s availability to extend the term for one additional six-month period to May 9, 2026 Current Debt Maturity Schedule ($ millions)
Slide 20: Summary Capitalization and Financials
20 | FCPT | APRIL 2022 ___________________ Figures represent FCPT financials as of and for three months ended 3/31/2022 1. Represents Q1 2022 annualized results. See page 31 for reconciliation of net income to adjusted EBITDAre and page 30 for non-GAAP definitions 2. Figure represents Annual Cash Ba
Slide 21: Agenda
21 | FCPT | APRIL 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 22: Maintaining Acquisition Philosophy and Criteria
22 | FCPT | APRIL 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 addi
Slide 23: Acquisitions by Year
23 | FCPT | APRIL 2022 ACQUIS IT IONS BY YEAR 23 | 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
Slide 24: Non-Restaurant: Auto Service Industry
24 | FCPT | APRIL 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 Aut
Slide 25: Non-Restaurant: Medical Retail Industry
25 | FCPT | APRIL 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 resista
Slide 26: Lease Maturity Schedule
26 | FCPT | APRIL 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 27: Brand Diversification
27 | FCPT | APRIL 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 T
Slide 28: Sustainability Framework
28 | FCPT | APRIL 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 respon
Slide 29: Q1 2022 Acquisitions
29 | FCPT | APRIL 2022 Q1 2022 ACQUIS IT IONS 1. Totals indicate weighted average 2022 Closed Acquisitions Tenant Location # of Properties Operator / Guarantor Information Purchase Price ($ millions) Initial Cash Yield Term (years) Announced Close VCA MI 1 Corporate $1.7 7.0% 7 1/10/2022 Outparcel:
Slide 30: Glossary and Non-GAAP Definitions
30 | FCPT | APRIL 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
Slide 31: Reconciliation of Net Income to Adjusted EBITDAre
31 | FCPT | APRIL 2022 RECONCIL IATION OF NET INCOME TO ADJUSTED EBITDAR E __________________________ 1. See glossary on page 30 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 expe
Slide 32: FFO & AFFO Reconciliation
32 | FCPT | APRIL 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 Real
Slide 33: Four Corners Property Trust
33 | FCPT | APRIL 2022 www.fcpt .comINVESTOR PRESENTATION | APRIL 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
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