Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (November 2016)
28 slides from Four Corners Property Trust's investor presentation, Nov 14, 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: Agenda
AGENDA Company Overview and Year-to-Date Update Key Investment Highlights Diversification & Acquisition Strategy Financial Update & Key Credit Strengths Q&A
Slide 5: Company Overview and Year-to-Date Update
Company Overview Company overview and year-to-date update
Slide 6: Updated FCPT Portfolio
__________________________ Note: Map and figures updated as of 11/11/2016; Excludes six owned or ground leased properties that comprise the LongHorn San Antonio Business, which are operated by a taxable REIT subsidiary (“TRS”). 466 Properties 44 States 16 Brands 3.4mm sq ft Updated FCPT portfolio Po
Slide 7: Overview of FCPT
Overview of FCPT Four Corners Property Trust (“FCPT”) is primarily engaged in the ownership, acquisition, and leasing of restaurant properties 466 properties, diversified by geography and brand, 416 of which are leased to Darden under long-term triple-net leases 5 initial Darden restaurant brands: O
Slide 8: 2016 Year-to-Date
Company Update: 2016 Year-to-Date Darden Restaurants performed well and continues to be an exceptional tenant from which to grow and diversify our portfolio Focused investor outreach has helped attract a strong shareholder base including many REIT-dedicated buyers Built out the rest of core manageme
Slide 9: Key Investment Highlights
Company Overview Key Investment highlights
Slide 10: High Quality Portfolio
High quality portfolio Properties: 466 properties 95% Investment grade tenancy 16 brands – 9 QSR and 7 Casual Dining concepts Geography: 44 states Only Florida (11.9%) and Texas (10.9%) are above 10% of NOI Term Remaining: 13.8 years Under 1% of NOI with <10 years term remaining Annualized Cash Rent
Slide 11: Portfolio diversification since Q2 2016
Portfolio diversification since Q2 2016 ___________________________ 1. Scheduled minimum contractual rent annualized as of 11/11/2016. Cash Rental Revenue by Brand June 2016: Rental Revenue of $94.4mm November 2016: Rental Revenue of $99.8mm1
Slide 12: Portfolio Operating Performance
Portfolio OPERATING PERFORMANCE FCPT EBITDAR Coverage FCPT Avg: 4.2x (1) FCPT’s portfolio is comprised of high-quality restaurant properties that demonstrate strong operating performance Peer Avg: 3.1x (1) ___________________________ FCPT and peer information as of 9/30/2016; peer average includes A
Slide 13: Historical EBITDAR Rent Coverage
Historical EBITDAR Rent coverage Historical Rent Coverage – FCPT Fourth Quartile (Lowest) of Properties(1) (2) FCPT 4th Quartile Average: 3.2x Total Properties 257 267 277 359 367 376 393 406 414 418 ___________________________ Source: Management provided information. Note: Information for propertie
Slide 14: Lease Maturity Schedule
Lease Maturity Schedule Weighted average lease term of 13.8 years Lease Maturity Schedule (% of Rental Revenue) ___________________________ Figures as of 11/11/2016. Note: Excludes renewal options. Less than 1% of rental income matures over the next 10 years
Slide 15: FCPT Portfolio Compared to Peers
___________________________ Sources: Company filings as of 9/30/2016 and Green Street Advisors. STOR EBITDAR coverage represents a unit’s fixed charge coverage ratio before taking into account standardized corporate overhead expense. Fixed charge coverage is defined as the ratio of (i) the unit’s EB
Slide 16: Diversification & Acquisition Strategy
Company Overview Diversification & acquisition strategy
Slide 17: Business Plan and Diversification Strategy
Business Plan and Diversification Strategy FCPT has a core portfolio that provides stable cash flow, as well as a strong balance sheet to support diversification growth objectives Start with 100% concentration in casual dining, but an extremely strong tenant with an investment grade credit rating (D
Slide 18: Acquisition Philosophy and Underwriting Criteria
Fcpt Acquisition Philosophy and underwriting criteria Acquisition Philosophy Acquire nationally recognized branded restaurants that are well located with creditworthy lease guarantors Purchase assets only when accretive to cost of capital Increase diversification by targeting different brands, meal
Slide 19: Conceptual Underwriting Strike Zone
“Ted Williams described in his book, The Science of Hitting, that the most important thing, for a hitter, is to wait for the right pitch…and that's exactly the philosophy I have about investing...wait for the right pitch…and it will come…it's the key to investing.” – Warren Buffett Conceptual Underw
Slide 20: Vast Addressable Market Within Restaurant Industry Subsectors
Vast addressable market within Restaurant industry subsectors The restaurant industry represents a significant piece of the US economy US retail sales were $4.7 trillion in 2015 Spending on food services comprised 13.3% of all retail, or $620 billion There are three subsectors within the industry Qu
Slide 21: Rapid Franchisee Consolidation Within Restaurant Industry
Rapid Franchisee consolidation within Restaurant Industry Units Owned by the Top 200 Franchisees Average units per Top 200 Franchisees Source: Franchise Times, August 2016. +7.1% CAGR +7.0% CAGR The franchisee industry is highly fragmented, but undergoing consolidation and growth by top players, pre
Slide 22: Thoughtful Approach to Brand Selection
thoughtful approach to brand selection Average Unit Sales Volume ($000s) The restaurant industry represents a significant piece of the US economy US retail sales were $4.7 trillion in 2015 Spending on food services comprised 13.3% of all retail, or $620 billion There are three subsectors within the
Slide 23: FCPT Closed Acquisitions
FCPT closed acquisitions FCPT Announced Q3 & Q4 2016 Acquisitions FCPT Announced Q3 & Q4 2016 Dispositions Note: Figures updated as of 11/11/2016 Tenant # of Properties Location Seller Guarantor Info Purchase Price Cap Rate Term (yrs) Announced Pizza Hut 6 IL, IN Not disclosed 150-unit operator; 40
Slide 24: Financial Update and Key Credit Strengths
Company Overview Financial update and key credit strengths
Slide 25: Summary Capitalization and Financials
Summary Capitalization and Financials Summary Financial Position ___________________________ Note: Financials per company filings as of 9/30/2016; share price updated as of 11/9/2016. 1. Figures are calculated as last quarter annualized (9/30/2016) Current Trading Metrics Share price (11/9/2016) $18
Slide 26: Credit Profile Relative to Net Lease Peers
NR/BBB-/BBB- Credit profile Relative to Net Lease Peers ___________________________ Source: Company filings as of 9/30/2016. Note: Ratings shown represent corporate credit ratings. 1 Gross assets is defined as undepreciated book value of assets. Fixed Charge Coverage (Total Net Debt + Preferred) / L
Slide 27: Financial Policies
Financial Policies As Four Corners grows and diversifies, 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 is 4.5x; long-term objective below 6.0x Fix
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