Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (January 2020)
26 slides from Four Corners Property Trust's investor presentation, Jan 21, 2020
Slide 1: Four Corners Property Trust Investor Presentation January 2020
FOUR CORNERS PROPERTY TRUST NYSE: FCPT INVESTOR PRESENTATION | JANUARY 2020 www.fcpt.com 1 | FCPT | JANUARY 2020
Slide 2: Forward Looking Statements and Disclaimers
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 t
Slide 3: Agenda
AGENDA Company Overview and Business Update Page 3 Appendix Page 12 3 | FCPT | JANUARY 2020
Slide 4: Overview of FCPT
OVERVIEW OF FCPT FCPT is the only public net-lease REIT focused primarily on the acquisition and ownership of high- quality restaurant properties Began with 418 Darden (NYSE:DRI) operated restaurants across five brands and has diversified its exposure to 71% of annualized base rent1. We currentl
Slide 5: Timeline
5 | FCPT | OCTOBER 2019 TIMELINE Filed at-the-market (ATM) Announced second Inaugural secondary $132 million of announced Completed spin- equity program from which Issued $125 million outparcel transaction with offering for $101 million outparcel pipeline off from Darden $149 million has been raised
Slide 6: Acquisition Growth
6 | FCPT | OCTOBER 2019 ACQUISITION GROWTH Annualized Cash Base Rent ($ million)1 2 139.4 +10% CAGR 126.8 129.7 130.9 120.9 125.6 108.0 109.4 109.6 101.0 102.1 105.2 105.3 94.4 94.4 94.4 95.9 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Number of Properties 69
Slide 7: Company Momentum Since Inception in November 2015
COM PAN Y M OM ENTUM SINCE INCEPTI ON I N NOV E MBER 2015 Casual, Family & At Inception As of 12/31/2019 Fine Dining Team Members 4 +15 19 +$45 million / Annual Base Rent $94.4 million $139.4 million1 +47.7% Properties 418 +281 / +67.2% 699 Brands 5 +53 58 Quick Service & Tenant EBITDAR to 4.2x +0.6
Slide 8: Outparcel Strategy: Recap on Announcements
OUTPARCEL STRATEGY: RECAP ON ANNOUNCEMENTS Mall / shopping center outparcels are typically low rent, ground leased properties, with strong brands, and corporate operators and lease guarantors FCPT has closed on $146.7 million / 81 properties of these transactions since October 2017. Counterparti
Slide 9: Run-Rate Base Rent Bridge
RUN-RAT E BASE RENT BRIDGE Estimated Annualized Base Rent ($millions) $148.1 $139.4 $131.9 million of remaining acquisitions pipeline via outparcel portfolios ($8.7 million of rent)2 FCPT WPG II PREIT Adjusted 9/30/20191 WPG I Brookfield Seritage 2 (Adjusted 9/30/2019 + Announced ABR)1 Remaining 1.
Slide 10: FCPT Evolution Since Spin-Off: Tenant Diversification
FCPT EVOLUTION SINCE SPIN- OFF: SIGNIFICANT PROGRESS ON TENANT DIVERSIFICATION Brand Exposure by Annualized Base Rent (ABR) 15% 3 14% Other Darden 3 109 leases 113 leases 3% Other Darden 3% 14 leases 20% 13 leases 104 leases Other Darden 9% 9% 64 leases 6% 61 leases 50% Other Restaurants 14 leases O
Slide 11: FCPT Balance Sheet and Portfolio Create a Strong Platform for Growth
FCPT BALANCE SHEET AND PORTFOLIO CREATE A STRONG PLATFORM FOR GROWTH High quality portfolio of 699 properties diversified geographically and by concept across 46 states and 58 tenant brands Stable rental stream with 72%1 of annualized base rent investment grade tenancy, long-term lease-lives, an
Slide 12: Agenda
AGENDA Company Overview and Business Update Page 3 Appendix Page 12 12 | FCPT | JANUARY 2020
Slide 13: Geographic Diversification
GEOGRAPHIC DIVERSIFICATION ND WA MT MN ME 699 Properties SD WI ID MI VT NH OR WY NY IA MA NE CT RI PA OH NV IL IN NJ 46 States UT CO MD DE KS MO WV KY VA Annualized CA TN 1 OK NC Base Rent (%) AR ≥10.0% 58 Brands AZ NM SC MS AL 5.0%–10.0% GA LA 3.0%–5.0% TX 2.0%–3.0% 4.6 mm sq ft 1.0 %–2.0% FL <1.0%
Slide 14: Trading Metrics and Leverage for Selected Net Lease REITs
TRADING METRICS AND LEVERAGE FOR SELECTED NET LEASE REITS Price / 2020E AFFO Peer Average: 18.6x 21.8x 21.2x 20.3x 18.6x 19.0x 18.6x 18.1x 15.8x 14.2x Net debt + preferred / last quarter annualized EBITDAre Peer Average: 5.2x 6.4x 5.4x 5.1x 5.1x 5.0x 4.8x 4.8x 4.4x 1 2 Source: Each company’s public
Slide 15: FCPT's Portfolio Compares Favorably Across Major Metrics
FCPT’S PORTFOLIO COMPARES FAVORABLY ACROSS MAJOR METRICS Tenant EBITDAR/Rent Coverage1 4.8x 3.6x Peer Average: 3.0x 2.6x 2.7x N/A N/A N/A ADC VEREIT Realty Spirit STORE National Retail FCPT % Investment Grade Tenants2 3 72% 57% 49% 40% Peer Average: 38% 19% 25% N/A STOR NNN SRC VER O ADC FCPT ______
Slide 16: FCPT Acquisition Philosophy and Underwriting Criteria
FCPT ACQUISITION PHILOSOPHY AND UNDERWRITING CRITERIA Acquisition Philosophy • Acquire nationally recognized branded restaurants and retail properties that are well located with creditworthy lease guarantors • Purchase assets only when accretive to cost of capital • Increase diversification by targe
Slide 17: Investment Opportunity Sourcing
INVESTMENT OPPORTUNITY SOURCING FCPT is principally building its acquisition pipeline through five channels: 1) Mall and Shopping Center Outparcels: FCPT has announced several portfolio transactions with mall and shopping center REITs and continues to work on replicating this strategy. The added com
Slide 18: Food & Beverage Among Most E-Commerce Resilient Retail Categories
FOOD & BEVERAGE AMONG MOST E-COMMERCE RESILIENT RETAIL CATEGORIES US eCommerce Penetration by Retail Category (2019) 60% 51% 50% 39% 40% 32% 31% 30% 26% 21% 20% 10% 10% 4% 2% 0% Books, Music & Computer & Office Equipment Toys & Hobby Apparel & Furniture & Home Health, Personal Auto & Parts Food & Be
Slide 19: Consumer Food Spending
CONSUMER FOOD SPENDING Consumers are Spending More on Dining Than on Groceries Now $70 Grocery Stores Bars and Restaurants $60 $50 $40 $30 Total Sales (Billions) Total Eat Out at Least Once Per Week: $20 Millenials 49% Gen X 43% Boomers 35% $10 $0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 0
Slide 20: Thoughtful Brand Selection
THOUGHTFUL BRAND SELECTION Brand Average Sales Volume ($000s) $10,495 $6,000 Casual Dining $5,000 FCPT focuses on national brands Fast Casual with strong sales volumes and market appropriate rents $4,000 Quick Service $3,000 $2,000 $1,000 $0 FCPT pursues properties within the median range of Casual
Slide 21: 2016 – 2017 Acquisitions
2016 – 2017 ACQUISITIONS 2016 Closed Acquisitions Purchase Initial Cash Term Announced / Tenant Location # of Properties Operator / Guarantor Information Price ($mm) Yield (yrs) Expected Close Pizza Hut IL, IN 6 40-unit sub. of 150-unit operator $5.7 7.2% 20 7/19/2016 Wendy's TX 1 2-unit operator $2
Slide 22: 2018 Acquisitions
2018 ACQUISITIONS 2018 Closed Acquisitions Purchase Initial Cash Term Announced / Tenant Location # of Properties Operator / Guarantor Information Price ($mm) Yield (yrs) Expected Close Buffalo Wild Wings IL 2 World Wide Wings (40+ unit franchisee) $6.6 6.6% 14 1/10/2018 WPG Portfolio #1: FL, IL, IA
Slide 23: 2019 Acquisitions
2019 ACQUISITIONS 2019 Closed Acquisitions Purchase Initial Cash Term Announced / Tenant Location # of Properties Operator / Guarantor Information Price ($mm) Yield (yrs) Expected Close WPG Portfolio #1: CO 8 5 Corporate and 3 Franchisee leases $9.4 -- 9 1/18/2019 Tranche 2b (8 concepts) Outback Ste
Slide 24: 2019 Acquisitions Continued
2019 ACQUISITIONS CONTINUED 2019 Closed Acquisitions Purchase Initial Cash Term Announced / Tenant Location # of Properties Operator / Guarantor Information Price ($mm) Yield (yrs) Expected Close WPG Portfolio #1: VA 1 1 Leasehold $2.4 -- 7 9/27/2019 (Leasehold for BWW) Krystal 3-Pack: TN 1 1 Corpor
Slide 25: Glossary and Non-GAAP Definitions
GLOSSARY AND NON-GAAP DEFINITIONS This document includes certain non-GAAP financial measures that measures may not be comparable to similarly titled measures maintain the operating performance of our properties, all of which management believes are helpful in understanding our business, as employed
Slide 26: Four Corners Property Trust
FOUR CORNERS PROPERTY TRUST NYSE: FCPT INVESTOR PRESENTATION | JANUARY 2020 www.fcpt.com 26 | FCPT | JANUARY 2020
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