Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (March 2025)
32 slides from Four Corners Property Trust's investor presentation, Mar 17, 2025
Slide 1: Investor Presentation – Boston, MA March 2025
INVESTOR PRESENTATION – BOSTON, MA MARCH 2025 Four Corners Property Trust NYSE: FCPT
Slide 2: Cautionary note regarding forward-looking statements
MARCH 2025 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, be
Slide 3: FCPT Recent Highlights
Extended and upsized credit facility capacity in January 2025 $350 million revolver capacity $225 million term loan ($75 million in incremental proceeds at 4.6% interest rate) MARCH 2025 FCPT RECENT HIGHLIGHTS Achieved favorable pricing while avoiding drifting up the risk spectrum Acquired 64 proper
Slide 4: Contents
3 APPENDIX PG 25 MARCH 2025 CONTENTS 1 THE CALM PORT IN THE STORM PG 4 2 COMPANY OVERVIEW PG 16
Slide 5: Rising Consumer Concerns Under New Administration
MARCH 2025 RISING CONSUMER CONCERNS UNDER NEW ADMINISTRATION Consumer anxieties are at a post-COVID high with the second Trump administration redirecting the economic status quo. The net lease sector may face disruption due to: Proposed 25% or higher tariffs for pharmaceuticals, automobiles, and sem
Slide 6: FCPT: The Safe Harbor in the Volatility Storm
MARCH 2025 FCPT: THE SAFE HARBOR IN THE VOLATILITY STORM FCPT has significant liquidity with $204 million of unsettled equity forwards plus a fully undrawn $350 million revolver FCPT has no near-term debt maturities; our 4.9x net leverage is at its lowest level since 2019 FCPT employs a very granula
Slide 7: Unique and Highly Secure Net Lease
Our portfolio is primarily outparcel properties in high density retail corridors ~79% of rent featuring unique benefits structurally superior to regular-way net lease. This include the properties with high rent coverage (Darden and Chili’s), ground leases, master leases, and investment grade guarant
Slide 8: Highly Selective Approach to Net Lease
MARCH 2025 HIGHLY SELECTIVE APPROACH TO NET LEASE While we underwrite properties in these sectors and may acquire stores in these sectors in the future, they are not in our current target base and would need to meet our high thresholds to be considered in the future Pharmacies: 0.0% ABR1 exposure En
Slide 9: Strong Portfolio Performance Through Recessions
MARCH 2025 STRONG PORTFOLIO PERFORMANCE THROUGH RECESSIONS Darden’s flagship casual dining tenants during the 2008 financial crisis were able to weather the storm and outperformed most restaurants These restaurant brands leveraged their strong positioning and operations while others struggled to ada
Slide 10: Darden Credit Default Swaps Remain Historically Inexpensive
Darden credit default swaps Remain historically inexpensive MARCH 2025 Current ask price: 40 High on 06/07/22: 163 Average: 63.656 Low on 03/13/24: 39 Very tight pricing spreads for Darden to have a credit event Darden Senior CDS Curve (5 year) Basis Points The impact of recent market volatility has
Slide 11: FCPT Brand Exposure to Macro Uncertainty
MARCH 2025 FCPT BRAND EXPOSURE TO MACRO UNCERTAINTY Commentary from around the industry: Driven Brands CFO Michael Diamond: “We have, pretty good flexibility about where we're able to source our product from, from a couple of the products where we may need to shift production, we tend to hold enough
Slide 12: FCPT's Low Basis Portfolio
MARCH 2025 FCPT’S LOW BASIS PORTFOLIO FCPT frequently has amongst the lowest upfront acquisition basis per property within net lease FCPT seeks and acquires properties with a significantly lower value at risk per site as compared to peers FCPT’s emphasis on low rents and fungible buildings have crea
Slide 13: FCPT's Consistent Leverage Range
MARCH 2025 FCPT’S CONSISTENT LEVERAGE RANGE FCPT has a stated leverage target of 5.5x-6.0x, but has been below or in the lower range of its target since inception Discipline around our leverage is embedded into company culture and our approach to funding growth FCPT HISTORICAL LEVERAGE1
Slide 14: FCPT's Spread-Focused Approach to Capital Raising
To minimize dilution related to issuance fees, FCPT utilizes the ATM for its equity issuance FCPT has raised $1.1 billion of equity since inception with 91% raised via the ATM. Our sole overnight offering was completed in August 2018 Further, FCPT modulates capital raising and new acquisitions to pr
Slide 15: Inflation Has Positive and Negative Effects for Net Lease
MARCH 2025 INFLATION HAS POSITIVE AND NEGATIVE EFFECTS FOR NET LEASE Note: The effects of inflation and higher interest rates shown above are valuation agnostic (i.e., ignores potential equity valuation changes) Interest Rates / Inflation Renewal Probability: Relocation costs for tenants increase tr
Slide 16: Contents
MARCH 2025 CONTENTS 3 APPENDIX PG 25 1 THE CALM PORT IN THE STORM PG 4 2 COMPANY OVERVIEW PG 16
Slide 17: FCPT's Differentiated Approach Within Net Lease
Granular Portfolio Building Portfolio led by Darden, a premier investment grade tenant Analytical underwriting through a consistent model balanced between credit and real estate Low value at risk with average purchase price of ~$3 million MARCH 2025 FCPT’S DIFFERENTIATED APPROACH WITHIN NET LEASE Su
Slide 18: FCPT at a Glance
MARCH 2025 FCPT AT A GLANCE1 1,220 leases 163 brands 7.3-year average lease term $0.44 AFFO per share (Q4)2 $265 million / 7.1% cap rate of acquisitions in 2024 99.6% occupied 1.4% average annual escalator 4.9x tenant EBITDAR coverage3 56% investment grade4 6,712 SF average asset size 30,218 average
Slide 19: Portfolio Breakdown
MARCH 2025 PORTFOLIO BREAKDOWN 314 leases 82 leases 113 leases 23 brands 13 leases 168 leases 32 brands 116 leases Other casual dining restaurants Auto service 110 leases 39 brands Medical retail 53 leases 26 brands Other retail 1,220 Leases across 163 Brands Annual Base Rent of $240.2 million1 34%
Slide 20: Company Momentum Since Inception
MARCH 2025 COMPANY MOMENTUM SINCE INCEPTION TODAY Annual base rent1 $94 million $240 million + $146 million (2.6x) Properties 418 1,198 + 780 (2.9x) Brands 5 163 + 158 Enterprise value $1.3 billion $3.9 billion + $2.6 billion (2.9x) We have grown our team, put-in place substantial processes and refi
Slide 21: FCPT's Investment Filters
FCPT Low Rent & Investment Basis Small Building, Fungible Real Estate National Brands with Strong Credit Profiles MARCH 2025 FCPT’S INVESTMENT FILTERS Our portfolio is principally leased to restaurants, auto service and medical retail tenants The intentional focus on these subsectors reflect a multi
Slide 22: Diversification with Scaled, Creditworthy National Brands
MARCH 2025 DIVERSIFICATION WITH SCALED, CREDITWORTHY NATIONAL BRANDS Rank Brand Name FCPT Stores % of ABR1 Total Stores Sales ($mm) Publicly Traded? 1 Olive Garden 314 34.2% 925 $5,089 DRI 2 Longhorn Steakhouse 116 9.7% 580 $2,917 DRI 3 Chili's 82 7.2% 1,209 $4,277 EAT 4 Outback Steakhouse 28 2.5% 6
Slide 23: FCPT's Strong Portfolio Performance
MARCH 2025 FCPT’S STRONG PORTFOLIO PERFORMANCE FCPT has one of the highest-quality and consistent portfolios in the net lease sector. We have established a strong track record over time (even through the COVID-19 pandemic) RENT COLLECTIONS OCCUPANCY2 1
Slide 24: Conservative Financial Policies: Debt Maturity Schedule
“ MARCH 2025 DEBT MATURITY SCHEDULE AS OF 2/1/25 $ MILLIONS (OPTIONS SHOWN AS FULLY EXTENDED) FCPT maintains a well-laddered debt maturity and 100% unencumbered assets to provide financial flexibility Weighted average debt maturity ~4.4 years No near-term debt maturities Conservative leverage Commit
Slide 25: Contents
MARCH 2025 CONTENTS 3 APPENDIX PG 25 1 THE CALM PORT IN THE STORM PG 4 2 COMPANY OVERVIEW PG 16
Slide 26: Debt Maturity Schedule
MARCH 2025 3.8-year Weighted average term for notes/term loans 93% Fixed rate debt $245 million Available on revolver 1 DEBT MATURITY SCHEDULE 2 Pro Forma for Credit Facility Recast and FCPT Extension Options As of 12/31/2024 4.4-year Weighted average term for notes/term loans 93% Fixed rate debt $3
Slide 27: Credit Facility and Hedging Summary
MARCH 2025 CREDIT FACILITY AND HEDGING SUMMARY Note: we are including this pro forma disclosure due to the Credit Facility recast as announced on January 31, 2025
Slide 28: Glossary and Non-GAAP Definitions
MARCH 2025 GLOSSARY AND NON-GAAP DEFINITIONS NON-GAAP DEFINITIONS AND CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and ca
Slide 29: Reconciliation Schedules
MARCH 2025 RECONCILIATION SCHEDULES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDARE RENTAL REVENUE AND PROPERTY EXPENSE DETAIL
Slide 30: FFO & AFFO Reconciliation
MARCH 2025 FFO & AFFO RECONCILIATION
Slide 31: Footnotes
PAGE 12 FCPT’S LOW BASIS PORTFOLIO Source: Public filings as of 12/31/2024 MARCH 2025 FOOTNOTES PAGE 7 UNIQUE AND HIGHLY SECURE NET LEASE See glossary on page 28 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 100% of Darden annual cash base
Slide 32: Boston, MA March 2025
INVESTOR PRESENTATION – BOSTON, MA MARCH 2025
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