Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (April 2021)
28 slides from Four Corners Property Trust's investor presentation, Apr 30, 2021
Slide 1: Investor Presentation May 2021
| FCPT | MAY 20211 INVESTOR PRESENTATION | MAY 2021 w w w. fcpt .com FOUR CORNERS PROPERTY TRUST N Y S E : F C P T
Slide 2: Forward Looking Statements and Disclaimers
| FCPT | MAY 20212 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 state
Slide 3: Agenda
| FCPT | MAY 20213 AGENDA Company Overview Page 3 Restaurant Industry Update Page 10 Appendix Page 16
Slide 4: Executive Summary
| FCPT | MAY 20214 EXECUTIVE SUMMARY Portfolio Update1 FCPT’s portfolio of 810 properties across 85 restaurant and retail brands continues to perform well with occupancy at 99.7% Sector leading rent collection with well over 99% collected for Q1 2021 and 2020 Weighted average lease term of 10.
Slide 5: Timeline
| FCPT | MAY 20215 TIMELINE 5 | FCPT | OCTOBER 2019 Completed spin- off from Darden Filed At-The-Market (ATM) program and received Investment Grade rating from Fitch (BBB-) Announced Joint Venture with Lubert-Adler Inaugural secondary offering for $101 million of gross proceeds Announced second outp
Slide 6: Acquisition Growth
| FCPT | MAY 20216 ACQUISIT ION GROWTH Annual Cash Base Rent ($ million)1 6 | FCPT | OCTOBER 2019 Number of Properties . 94.4 94.4 94.4 95.9 101.0 102.1 105.2 105.3 108.0 109.4 109.6 120.9 125.6 126.8 129.7 130.9 139.4 142.0 144.1 147.8 156.0 158.2 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2
Slide 7: Financial Snapshot
| FCPT | MAY 20217 ___________________ Figures represent FCPT financials as of and for three months ended 3/31/2021 1. Represents Q1 2021 annualized results. See page 27 for reconciliation of net income to adjusted EBITDAre and page 26 for non-GAAP definitions. 2. Figure represents Annual Cash Base
Slide 8: Credit Profile Relative to Net Lease Peers
| FCPT | MAY 20218 19% 24% 51% 67% 68% 70% STOR EPRT NNN SRC O FCPT¹ ADC NTST % Investment Grade Tenants Peer Average: 46% CREDIT PROFILE RELATIVE TO NET LEASE PEERS 2.6x 2.7x 2.9x 4.1x ADC NNN NTST STOR SRC O EPRT FCPT Peer Average: 2.7x Tenant EBITDAR coverage Weighted Average Lease Term 9.0 9.7 1
Slide 9: Credit Profile Relative to Net Lease Peers (Leverage)
| FCPT | MAY 20219 0.0% 0.0% 0.1% 0.8% 1.2% 2.9% 6.6% 22.5% FCPT NTST NNN ADC O SRC EPRT STOR 3.2x 4.0x 4.4x 4.4x 4.8x 5.1x 5.1x 7.3x STOR NNN EPRT SRC ADC FCPT⁵ O NTST CREDIT PROFILE RELATIVE TO NET LEASE PEERS (Total Net Debt + Pref.)/Gross Assets1 2.8x 3.9x 4.8x 4.9x 5.3x 5.7x 5.8x 5.9x NTST ADC²
Slide 10: Agenda
| FCPT | MAY 202110 AGENDA Restaurant Industry Update Page 10 Company Overview Page 3 Appendix Page 16
Slide 11: Restaurant Industry Players
| FCPT | MAY 202111 RESTAURANT INDUSTRY PLAYERS Independents Branded Casual Dining Branded Quick-Service Estimated US Number1 ~364,000 ~49,000 ~243,000 Geography Urban/Suburban/Rural Suburban Suburban/Rural Access to Capital Limited; friends and family Strong; publicly traded companies Strong; publi
Slide 12: Restaurant Sales Trends by Sector
| FCPT | MAY 202112 Baird’s weekly restaurant survey shows quick service has been minimally impacted by COVID, showing positive same-store sales every week but one since May Casual dining has made a strong recovery after reaching a trough even with partial capacity constraints through more effic
Slide 13: Restaurant Spending Pre- and Post-COVID
| FCPT | MAY 202113 RESTAURANT SPENDING PRE- AND POST- COVID According to a recent Barclays report using credit card data during state re-openings and geolocation data, restaurants are positioned to increase household spending levels compared to pre-COVID spending due to sustained gains from deliv
Slide 14: Kerrow LongHorn Steakhouse COVID-19 Initiatives & Performance
| FCPT | MAY 202114 -100% -80% -60% -40% -20% 0% 20% 40% 60% Jan-20 Mar-20 Apr-20 Jun-20 Jul-20 Aug-20 Oct-20 Nov-20 Jan-21 Feb-21 Apr-21 State of emergency declared Christmas Grocery shortages begin • Kerrow operates seven franchised LongHorn Steakhouses in San Antonio as a 100% subsidiary of FCPT
Slide 15: Maintaining Acquisition Philosophy and Criteria
| FCPT | MAY 202115 MAINTAINING ACQUISIT ION PHILOSOPHY AND CRITERIA 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 • Focused on adding c
Slide 16: Agenda
| FCPT | MAY 202116 AGENDA Appendix Page 16 Restaurant Industry Update Page 10 Company Overview Page 3
Slide 17: Lubert-Adler Joint Venture
| FCPT | MAY 202117 Purpose: FCPT and Lubert-Adler will opportunistically bid, acquire and re-lease vacant restaurant properties in attractive retail corridors. The partnership will leverage existing tenant relationships and appropriate rent setting to create highly attractive and marketable net lea
Slide 18: Outparcel Strategy: A Quick Update
| FCPT | MAY 202118 OUTPARCEL STRATEGY: A QUICK UPDATE ___________________ 1. Certain properties have been removed from the portfolios since transactions were initially announced as a result of continued deal negotiations. 2. The remaining to be closed transactions are each subject to customary clos
Slide 19: Company Momentum Since Inception in November 2015
| FCPT | MAY 202119 COM PAN Y MOM ENTUM SINCE INCEPTION IN NOV EMBER 2015 Team Members 4 +22 26 Annual Base Rent1 $94.4 million +$63.8 million / +68% $158.2 million Properties 418 +392 / +94% 810 Brands 5 +80 85 % Darden2 100% -35% 65% Overhead Efficiency3 10.0% -1.5% 8.5% Equity Market Cap $848 mil
Slide 20: FCPT Evolution Since Spin-Off
| FCPT | MAY 202120 F C P T E V O L U T I O N S I N C E S P I N - O F F : S I G N I F I C A N T P R O G R E S S O N T E N A N T D I V E R S I F I C A T I O N ___________________ 1. Represents current Annual Cash Base Rent (ABR) as of 3/31/2021, as defined on page 26. 2. Other Darden represents Baham
Slide 21: Geographic Diversification
| FCPT | MAY 202121 GEOGRAPHIC DIVERSIF ICATION ___________________ Figures as of 3/31/2021. Excludes six owned / ground leased restaurants in the Kerrow Restaurant Operating Business 1. Annual Cash Base Rent (ABR) as defined on page 26. 810 Properties 46 States 85 Brands 5.3 mm sq ft Portfolio at I
Slide 22: Lease Maturity Schedule
| FCPT | MAY 202122 0.1% 0.9% 0.9% 1.6% 1.9% 1.9% 12.1% 13.3% 11.5% 11.2% 10.8% 7.1% 14.7% 1.5% 1.6% 2.2% 2.8% 0.1% 0.6% 0.2% 0.2% 0.0% 0.0% 2.8% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 LEASE MATURITY SCHEDULE __________
Slide 23: FCPT Debt Maturity Schedule
| FCPT | MAY 202123 FCPT DEBT MATURITY SCHEDULE $50 $50 $50 $34 $250 $150 $150 $150 $0 $75 $50 $100 $75 $50 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Undrawn Revolver Capacity Drawn Revolver Unsecured Term Loan Unsecured Notes $100 % of Total Debt Outstanding 1 4% 17% 17% 17% 0% 6% 11%
Slide 24: Brand Diversification
| FCPT | MAY 202124 BRAND DIVERSIF ICATION ___________________ 1. Annual Cash Base Rent (ABR) as of 3/31/2021 as defined on page 26. FCPT Portfolio Brands Rank Brand Name Number Square Feet (000s) % of ABR1 Rank Brand Name Number Square Feet (000s) % of ABR1 1 Olive Garden 309 2,630 48.2% 16 Taco Be
Slide 25: 2021 Acquisitions Year to Date
| FCPT | MAY 202125 2021 ACQUISIT IONS YEAR TO DATE 2021 Closed Acquisitions Tenant Location # of Properties Operator / Guarantor Information Purchase Price ($ millions) Initial Cash Yield Term (years) Announced Close WPG: Raising Cane's OH 1 Corporate $2.1 -- 15 1/27/2021 Goodyear OH 1 Corporate $3
Slide 26: Glossary and Non-GAAP Definitions
| FCPT | MAY 202126 GLOSSARY AND NON-GAAP DEFINIT IONS This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of oth
Slide 27: Reconciliation of Net Income to Adjusted EBITDAre
| FCPT | MAY 202127 RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAR E ___________________________ 1. See glossary on page 26 for non-GAAP definitions. ($000s, except shares and per share data) Unaudited 2021 2020 Net Income 20,622$ 19,336$ Adjustments: Interest expense 7,633 7,003 Income tax expens
Slide 28: Four Corners Property Trust
| FCPT | MAY 202128 INVESTOR PRESENTATION | MAY 2021 w w w. fcpt .com FOUR CORNERS PROPERTY TRUST N Y S E : F C P T
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