Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (April 2016)
29 slides from Four Corners Property Trust's investor presentation, Apr 4, 2016
Slide 1: Four Corners Property Trust
Four Corners Property Trust NYSE: FCPT Exhibit 99.1
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: Senior Management Team
Senior Management Team William Lenehan President and CEO Gerald Morgan CFO Former Board member and Chair of the Finance and Real Estate Committee at Darden Restaurants, Inc. Private investor in net lease retail real estate Member of the Board of Directors of Macy’s, Inc. Former Board member and Chai
Slide 4: Key Investment Highlights
Well-located high-quality assets, diversified by geography and brand KEY INVESTMENT Highlights Long-term, triple-net lease structure provides stable cash flow with embedded rent growth Investment grade tenant with best in class EBITDAR coverage and appropriate rents Strong balance sheet with low lev
Slide 5: Asset selection
Asset selection Darden performed an extensive asset selection process to determine which properties were ultimately transferred to FCPT Select filtering criteria included: Operating below a minimum EBITDAR margin threshold Identified as Darden locations that may be relocated New restaurants without
Slide 6: Geographic diversification
Geographic diversification Seasons 52 (2) Olive Garden (300) LongHorn Steakhouse (104) (1) Bahama Breeze (11) Wildfish Seafood Grille (1) ___________________________ Excludes six owned or ground leased properties that comprise the LongHorn San Antonio Business, which are operated by a taxable REIT s
Slide 7: Portfolio diversification
Portfolio diversification Rental Revenue by Brand (1) Rental Revenue by Geography (1) ___________________________ Excludes six owned or ground leased properties that comprise the LongHorn San Antonio Business, which will be operated by a taxable REIT subsidiary (“TRS”) after FCPT becomes a REIT. Wes
Slide 8: Portfolio Operating Performance
Portfolio OPERATING PERFORMANCE EBITDAR Coverage (1) Average Unit Volumes (2) (In thousands) Four Corners Avg: 4.2x Four Corners Avg: $4,397 Four Corners’ portfolio is comprised of high-quality restaurant properties that demonstrate strong operating performance Peer Avg: 2.7x (1) ___________________
Slide 9: Historical EBITDAR Rent Coverage
Historical EBITDAR Rent coverage Rent Coverage – Portfolio Average (1) (2) Rent Coverage – Fourth Quartile (1) (2) Average: 4.8x Average: 3.2x Memo: Total properties 257 267 277 359 367 376 393 406 414 418 ___________________________ Source: Management provided information. 1.Weighted by rent. 2.Bac
Slide 10: Compelling Demographics
= $98k median household income and ~63,000 average population Compelling Demographics Four Corners has well-located properties with superior demographics; two important indicators of asset quality Average Population and Household Income (Three-Mile Radius) ___________________________ Source: Green S
Slide 11: Darden: Investment Grade with strong financial performance
Darden: Investment Grade with strong financial performance Darden is rated Ba1/BBB-/BBB- (Moody’s/S&P/Fitch), representing an investment grade tenant profile Following the spin-off, Darden only has $450mm of debt outstanding and no debt maturing until 2035 Recent strategic initiatives have driven st
Slide 12: Summary Lease Terms and Structure
Summary Lease Terms and Structure Average Initial Term: ~15 years, none less than 12 Initial annual cash rent: $94,388,553 Structure: Individual property triple-net leases: Tenant responsible for repair and maintenance costs, property tax, insurance and restoration Form of lease included as exhibit
Slide 13: Lease Maturity Schedule
Lease Maturity Schedule 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Weighted average lease term of ~15 years Lease Maturity Schedule (% of Rental Revenue) Lease Term: (Years) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ___________________________ N
Slide 14: Positioning Relative to Net Lease Peers
Positioning Relative to Net Lease Peers Four Corners compares favorably to its retail net lease REIT peer group ___________________________ Source: Company filings as of 09/30/2015. STOR and VER EBITDAR coverage represents a unit’s fixed charge coverage ratio before taking into account standardized
Slide 15: Business Plan and Diversification Strategy
Business Plan and Diversification Strategy Four Corners has a core portfolio that provides stable cash flow, as well as a strong balance sheet to support diversification through external growth Harvest organic cash flow growth from initial portfolio of triple-net leases Individual leases allow for m
Slide 16: Numerous paths to diversification
Numerous paths to diversification Sale-leasebacks with other third-party restaurant operators including ability to issue OP units to sellers Acquisitions or asset swaps in the 1031 exchange market Acquisitions of triple-net lease properties or portfolios from other real estate owners Capital investm
Slide 17: Summary Pro Forma Financial Metrics
SUMMARY Pro FORMA financial metrics Summary Pro Forma Financial Metrics ($mm, except percentage and per share figures) Annualized Current Portfolio (1) Value per Fully Diluted Share (2) Rental income (cash) $94.4 General & administrative expenses (3) (10.3) Real estate operating costs 0.0 Cash EBITD
Slide 18: Flexible Capital Structure Poised for Growth
FLEXIBLE CAPITAL STRUCTURE Poised for Growth Capitalization Leverage Relative to Net Lease Peers (2) Four Corners has low leverage and substantial liquidity to support its growth and diversification strategy Fully Diluted Shares Outstanding (1) 60.0 Share Price as of March 30, 2016 $18.25 Equity Mar
Slide 19: High Quality Portfolio Diversified by Geography and Brand
High Quality Portfolio Diversified by Geography and Brand Well-located assets diversified geographically across 44 states in the U.S. Property-level revenue approximately 50% above casual dining peers Success in recent one-off sale leasebacks of Olive Garden and LongHorn-brand stores at strong valua
Slide 20: Strong Corporate Governance
Strong Corporate governance The Company has an experienced, independent board and corporate governance practices in line with best-in-class REIT standards Majority independent directors Annual elections of all board members No stockholder rights plan (1) Opt out of Maryland anti-takeover provisions
Slide 21: Key Investment Highlights
Well-located high-quality assets, diversified by geography and brand KEY INVESTMENT Highlights Long-term, triple-net lease structure provides stable cash flow with embedded rent growth Investment grade tenant with best in class EBITDAR coverage and appropriate rents Strong balance sheet with low lev
Slide 22: Company Overview Question and Answer
Company Overview Question and Answer
Slide 23: Appendix
APPENDIX sl. FOUR CORNERS "IF PROPERTY TRUST
Slide 24: Case study: Olive Garden (Ontario, CA)
Case study: Olive garden (Ontario, CA) Located within the Los Angeles MSA Immediate proximity to the Interstate 15 and Interstate 10 Interchange (463,000 VPD) Outparcel to the Ontario Mills, a 1.4 million SF outlet mall that features AMC Theatres, Burlington Coat Factory, Dave & Busters, Sports Auth
Slide 25: Case study: LongHorn Steakhouse (Hanover, MD)
Case study: longhorn steakhouse (Hanover, md) Key Statistics Trophy property located within the Baltimore-Washington MSA Outparcel to the Arundel Mills Outlet Mall, Maryland Live! Casino, a Walmart and a Costco Arundel Mills is majority owned and managed by Simon Property Group GSA Mall Quality Rati
Slide 26: Case study: Olive Garden (Stone Creek, OH)
Case study: Olive garden (Stone Creek, OH) Located within the Cincinnati MSA Immediate proximity to Interstate 275 (70,000 VPD) and Colerain Avenue exchange (38,000 VPD) Proximity to Bed Bath & Beyond, Regal Cinemas Target and TJ Maxx Strong rent-to-sales ratio Attractive demographics with 48K peopl
Slide 27: Case study: Bahama Breeze (Sunrise, FL)
Case study: Bahama Breeze (SUNRISE, FL) Trophy property located within the Miami / Ft. Lauderdale MSA Immediate proximity to the Sawgrass Expressway (72,000 VPD) Outparcel to Sawgrass Mills, a 2.2 million SF outlet mall owned by Simon Property Group featuring Bloomingdales, Nordstrom Rack, Regal Cin
Slide 28: Case study: St. Johns Town Center (Jacksonville, FL)
Case study: sT. Johns town center (Jacksonville, FL) Bahama Breeze Key Statistics Season 52 Key Statistics Key Highlights Trophy properties located within the Jacksonville MSA Immediate proximity to the Interstate 295 (77,000 VPD) and J Turner Butler Boulevard (95,000 VPD) Outparcel to St. Johns Tow
Slide 29: Case study: LongHorn Steakhouse (Orlando, FL)
Case study: longhorn steakhouse (Orlando, fl) Key Statistics Located within Greater Orlando MSA Immediate proximity to Florida State Route 408 (78,000 VPD) and North Alafaya Road (51,000 VPD) Recently remodeled structure (2009) Strong rent-to-sales ratio Proximity to Bed Bath & Beyond, Regal Cinemas
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