Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Q1 2023 Earnings Presentation
30 slides from Four Corners Property Trust's earnings presentation, May 2, 2023
Slide 1: Four Corners Property Trust Investor Presentation May 2023
FOUR CORNERS PROPERTY TRUST NYSE: FCPT I N V E S T O R P R E S E N T AT I O N | M AY 2 0 2 3 www.fcpt.com 1 | FCPT | MAY 2023
Slide 2: Forward Looking Statements and Disclaimers
F O R W AR D L O O K I N G S T AT E M E N T S AN D D I S C L AI M E R S 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 histor
Slide 3: Agenda
AG E N D A Company Overview Page 3 High Quality Portfolio Page 7 Conservative Financial Position Page 13 Appendix and Selected Supplemental Slides Page 18 3 | FCPT | MAY 2023
Slide 4: FCPT Overview
4 | FCPT | O CT O B E R 2019 FCPT OVERVIEW Analytical, Disciplined Investment Philosophy Accretive Diversification • Focus on cost of capital and investment spread • Grown from single tenant to 131 brands • Use of consistent, data-driven scorecard to • Established verticals into resilient, essential
Slide 5: Q1 2023 Highlights
5 | FCPT | O CT O B E R 2019 Q1 2023 HIGHLIGHTS Portfolio Update3 Liquidity and Capital Markets 1,030 Properties In the first quarter, FCPT raised $52 million of common stock via the at-the-market (ATM) program at an average share price of $27.73 131 Brands In the first quarter, FCPT completed $12 m
Slide 6: Acquisition Growth
6 | FCPT | O CT O B E R 2019 AC Q U I S I T I O N G R O W T H Annual Cash Base Rent ($ million)1 +11% CAGR 195 196 178 181 185 162 169 175 158 148 156 139 142 144 130 131 121 126 127 109 110 94 94 94 96 101 102 105 105 108 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 Number of Properties +14% CAGR 998 1,
Slide 7: High Quality Portfolio
AG E N D A Company Overview Page 3 High Quality Portfolio Page 7 Conservative Financial Position Page 13 Appendix and Selected Supplemental Slides Page 18 7 | FCPT | MAY 2023
Slide 8: FCPT's Strong Performance During the Pandemic
F C P T ’ S S T R O N G P E R F O R M AN C E D U R I N G T H E P AN D E M I C • FCPT has one of the highest-quality portfolios in the net lease sector that has performed at a high level even during the COVID-19 period Rent Collections 99.5% 98.8% 99.6% 99.6% 99.7% 99.8% 99.8% 99.8% 99.7% 99.9% 99.8%
Slide 9: Sun Belt Focused Portfolio
SUN BELT FOCUSED PORTFOLIO Lower taxes, the pandemic, and a shift toward work-from-home has accelerated a shift toward low-cost of living and high-quality of life states, especially in the warm weather climates of the Sun Belt ND WA MT MN ME SD WI ID MI VT NH OR WY NY IA MA NE CT RI PA OH NV IL IN N
Slide 10: Low Rent / High Coverage Portfolio
L O W R E N T / H I G H C O V E R AG E PORTFOLIO Tenant Rental Coverage1: 5.7x FCPT’s portfolio is characterized by low rents and 4.6x high EBITDAR to rent coverage of 4.6x1 2.7x 52% of the portfolio is the original Darden spin properties where rents were purposely set low as evidenced by strong
Slide 11: FCPT Evolution Since Spin-Off: Tenant Diversification
FCPT EVOLUTION SINCE SPIN-OFF: SIGNIFICANT PROGRESS ON TENANT DIVERSIFICATION Brand Exposure by Annualized Base Rent (ABR) Other Darden2 2% 14 leases 8% 82 leases 11% 115 leases 20% Other Restaurants 104 leases Other Darden 22% 306 leases 6% 56 brands 14 leases 74% 300 leases 40% 312 leases +107% in
Slide 12: Restaurant Sales Trends by Sector
R E S T AU R AN T S AL E S T R E N D S B Y SECTOR • Baird’s weekly restaurant survey shows both quick service and casual dining restaurants are performing near or above prior year levels Baird Restaurants Surveys: Weekly Same-Store Sales vs. Year Prior 15% 10% 5% +5% +3% 0% -5% -5% -10% Overall Casu
Slide 13: Conservative Financial Position
AG E N D A Company Overview Page 3 High Quality Portfolio Page 7 Conservative Financial Position Page 13 Appendix and Selected Supplemental Slides Page 18 13 | FCPT | MAY 2023
Slide 14: Conservative Financial Policies
C O N S E R V AT I V E F I N AN C I AL P O L I C I E S As FCPT continues to grow and diversify, the Company is committed to maintaining a conservative balance sheet with financial flexibility Continue to maintain conservative leverage and coverage metrics Net debt to cash EBITDA ratio is 5.6x1;
Slide 15: Conservative Debt Structure
C O N S E R V AT I V E D E B T S T R U C T U R E FCPT has a well-laddered debt maturity schedule with the first $50 million of debt not due until June 2024 Overall, FCPT has fixed the interest rate on 92% of its Term Loans and Notes. FCPT has hedged its Term Loan maturities as show in the table
Slide 16: Company Momentum Since Inception
C OM P AN Y M OM E N T U M S I N C E I N C E P T I ON November 2015 As of 3/31/2023 Representative Brands Restaurant Team Members 4 +32 36 +$101.3 million Annual Base Rent1 $94.4 million $195.7 million / +107% Properties 418 +612 / +146% 1,030 Brands 5 +126 131 % Darden2 100% -46% 54% Weighted Avera
Slide 17: Summary Capitalization and Financials
S U M M AR Y C AP I T AL I Z A T I O N AN D F I N AN C I AL S Capitalization Current Trading Metrics ($ million, except per share) Annual base rent2 ($ million) $195.7 Share price (3/31/2023) $26.86 Implied Cap Rate 5.9% Shares and OP units outstanding (millions) 86.2 3 Annualized Dividend per share
Slide 18: Appendix and Selected Supplemental Slides
AG E N D A Company Overview Page 3 High Quality Portfolio Page 7 Conservative Financial Position Page 13 Appendix and Selected Supplemental Slides Page 18 18 | FCPT | MAY 2023
Slide 19: Maintaining Acquisition Philosophy and Criteria
M AI N T A I N I N G AC Q U I S I T I O N P H I L O S O P H Y AN D C R I T E R I A 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 • Focus
Slide 20: Acquisitions by Year
AC Q U I S I T I O N S B Y Y E AR Property Count 1,023 1,030 919 799 699 610 515 475 418 Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD Volume Spin +$94 +$99 +$263 +$199 +$223 +$257 +$286 +$20 ($ millions) Cap Rate - 6.6% 6.8% 6.5% 6.5% 6.5% 6.5% 6.5% 6.9% FCPT has been built with a deliberat
Slide 21: Non-Restaurant: Auto Service Industry
N O N - R E S T AU R AN T : AUTO SERVICE INDUSTRY Portfolio includes 117 leases (8% of annual base rent) in auto service sector1 FCPT is targeting auto service centers (including collision and tire), auto part retailers, and gas stations with large format convenience stores FCPT’s focus is on
Slide 22: Non-Restaurant: Medical Retail Industry
N O N - R E S T AU R AN T : MEDICAL RETAIL INDUSTRY Portfolio includes 54 leases (4% 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 resistant industry given its service-based nature
Slide 23: Lease Maturity Schedule
L E AS E M AT U R I T Y S C H E D U L E Lease Maturity Schedule (% Annualized Cash Base Rent1) 99.9% occupied2 as of 3/31/2023 13.8% 13.1% 12.6% Weighted average 11.1% lease term of 8.0 years 10.5% 10.6% Less than 7.8% of rental income matures 7.2% prior to 2027 3.0% 2.5% 2.7% 2.1% 1.9% 1.5% 1.7% 1.
Slide 24: Brand Diversification
B R AN D D I V E R S I F I C AT I O N FCPT Portfolio Brands Square Feet % of Square Feet % of (1) (1) Rank Brand Name Number (000s) ABR Rank Brand Name Number (000s) ABR 1 Olive Garden 312 2,654 40.4% 16 Texas Roadhouse 11 81 0.8% 2 Longhorn Steakhouse 115 645 11.4% 17 Starbucks 14 32 0.8% 3 Chili's
Slide 25: Sustainability Framework
S U S T AI N AB I L I T Y F R AM E W O R K 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 responsibili
Slide 26: 2023 Acquisitions
2 0 2 3 AC Q U I S I T I O N S 2023 Closed Acquisitions Q1 2023 Closed Acquisitions: Purchase Price Initial Cash Initial Term Tenant Location # of Properties Operator / Guarantor ($ millions) Yield (years)1 Announcement Date Caliber Collision IL 2 Corporate $3.8 6.7% 7 2/15/2023 Heartland Dental SC
Slide 27: Glossary and Non-GAAP Definitions
G L O S S AR Y AN D N O N - G A A P D E F I N I T I O N S Non-GAAP Definitions and Cautionary Note Regarding Forward-Looking Statements: This document includes certain non-GAAP financial measures that employed by other REITs. condition and results from operations, the utility of FFO as a measure man
Slide 28: Reconciliations Schedules
R E C O N C I L I AT I O N S C H E D U L E S Reconciliation of Net Income to Adjusted EBITDAre (In thousands) Three Months Ended March 31, Unaudited 2023 2022 Net Income $ 23,155 $ 22,286 Adjustments: Interest expense 9,918 8,375 Income tax expense (benefit) 48 88 Depreciation and amortization 12,17
Slide 29: FFO & AFFO Reconciliation
F F O & AF F O R E C O N C I L I AT I O N ($000s, except shares and per share data) Three Months Ended March 31, Unaudited 2023 2022 Net income $ 23,155 $ 22,286 Depreciation and amortization 12,144 9,668 Realized gain on sales of real estate (1,562) - FFO (as defined by NAREIT) $ 33,737 $ 31,954 St
Slide 30: Four Corners Property Trust
FOUR CORNERS PROPERTY TRUST NYSE: FCPT I N V E S T O R P R E S E N T AT I O N | M AY 2 0 2 3 www.fcpt.com 30 | FCPT | MAY 2023
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