Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (May 2019)
27 slides from Four Corners Property Trust's investor presentation, May 31, 2019
Slide 1: Four Corners Property Trust Investor Presentation June 2019
FOUR CORNERS PROPERTY TRUST NYSE: FCPT INVESTOR PRESENTATION | JUNE 2019 www.fcpt.com 1 | FCPT | JUNE 2019
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 Key Investor Highlights Page 8 Acquisition & Diversification Strategy Page 16 Appendix Page 24 3 | FCPT | JUNE 2019
Slide 4: Overview of FCPT
OVERVIEW OF FCPT Four Corners Property Trust (“FCPT”) is an investment grade rated REIT primarily engaged in the ownership, acquisition, and leasing of restaurant properties FCPT’s portfolio consists of 6271 properties under long-term, net leases that are diversified by geography and brand; 420
Slide 5: Momentum Since Spin-Off
COMPANY UPDATE & MOMENTUM SINCE SPIN-OFF FCPT Team and Portfolio Highlights Market Access & Capital Raising Highlights • Continue to build out acquisition, legal and accounting / finance teams • FCPT continues to trade with an attractive cost of capital • Darden (Baa2/BBB/BBB; Enterprise value of $1
Slide 6: Tenant Evolution Since Spin-Off: Diversifying Tenant Base
TENANT EVOLUTION SINCE SPIN- OFF: SIGNIFICANT PROGRESS ON DIVERSIFYING TENANT BASE Brand Breakdown by Annual Base Rent +35.2% growth in annual base rent since spin1 3% 16% 13 units 8% 106 units 20% 53 units 104 units 6% 14 units 16% 74% 154 units 300 units 57% 301 units Initial Portfolio at Spin: FC
Slide 7: High Quality Portfolio
HIGH QUALITY PORTFOLIO FCPT Portfolio Summary • 627 Properties Properties: • 76% Investment grade tenancy • 38 brands – 15 Casual, Family & Fine Dining / 23 Quick Service & Fast Casual Casual, • 45 states Geography: Family • Only Texas (12.3%) and Florida (11.2%) are above 10% of NOI & Fine Dining •
Slide 8: Agenda: Key Investment Highlights
AGENDA Company Overview and Business Update Page 3 Key Investment Highlights Page 8 Acquisition & Diversification Strategy Page 16 Appendix Page 24 8 | FCPT | JUNE 2019
Slide 9: Geographic Diversification
GEOGRAPHIC DIVERSIFICATION ND WA MT MN 627 Properties ME SD WI ID MI VT NH OR WY NY IA MA NE CT RI PA OH 45 States NV IL IN NJ UT CO MD DE KS MO WV KY VA Annualized CA TN OK NC Base Rent (%) AR ≥10.0% 38 Brands AZ NM SC 5.0%–10.0% MS AL GA LA 3.0%–5.0% TX 2.0%–3.0% 1.0 %–2.0% 4.2 mm sq ft FL <1.0% N
Slide 10: Brand Diversification
BRAND DIVERSIFICATION FCPT Portfolio Brands Square Feet Square Feet Rank Brand Name Number (000s) % of ABR1 Rank Brand Name Number (000s) % of ABR1 1 Olive Garden 301 2,568 57.0% 16 Pizza Hut 6 15 0.3% 2 LongHorn Steakhouse 106 590 15.5% 17 Starbucks 4 9 0.3% 3 Chili's 53 293 8.4% 18 Wendy's 4 13 0.
Slide 11: Lease Maturity Schedule
LEASE MATURITY SCHEDULE Lease Maturity Schedule (% Annualized Cash Base Rent1) 15.9% 2 99.9% occupied as of 5/28/2019 14.2% 13.5% 12.0% 11.7% 11.4% Weighted average lease term of 11.7 years 8.1% Less than 3.1% of rental income matures prior to 2027 3.1% 3.2% 2.4% 0.7% 0.7% 0.4% 0.4% 0.3% 0.4% 0.6% 0
Slide 12: Summary Capitalization and Financials
SUMMARY CAPITALIZATION AND FINANCIALS 1 Capitalization1 Current Trading Metrics FCPT Current ($ million, except per share) Cash NOI ($ million, as of 3/31/2019) $126.8 Share price (3/31/2019) $29.60 Implied Cap Rate 4.9% Shares and OP units outstanding (millions)1 68.8 AFFO / share $1.36 Equity valu
Slide 13: FCPT's Portfolio Compares Favorably Across Major Metrics
FCPT’S PORTFOLIO COMPARES FAVORABLY ACROSS MAJOR METRICS Tenant EBITDAR/Rent Coverage % Investment Grade Tenants (1) 4.6x 76% 3.5x Peer Average: 2.9x 2.7x 2.8x 51% 52% 2.6x Peer Average: 47% 44% 41% N/A N/A N/A N/A ADC VEREIT STORE Spirit Realty National Retail FCPT STOR NNN VER SRC O ADC FCPT % Ret
Slide 14: FCPT Debt Maturity Schedule
FCPT DEBT MATURITY SCHEDULE Current Debt Maturity Schedule1 Staggered 5.3-year weighted average term for notes/bonds Undrawn Revolver Capacity 84% fixed rate debt Unsecured Term Loan 3.8% weighted average cash interest rate Unsecured Notes Full availability on $250mm revolver $250 $150 $150 $150 $10
Slide 15: Capitalization and Portfolio Create a Strong Platform for Growth
FCPT CAPITALIZATION AND PORTFOLIO CREATE A STRONG PLATFORM FOR GROWTH High quality portfolio of 627 properties diversified geographically and by concept across 45 states and 38 tenant brands Stable rental stream, 100% anchored with service retail tenants and 76% investment grade tenancy with lon
Slide 16: Agenda: Acquisition & Diversification Strategy
AGENDA Company Overview and Business Update Page 3 Key Investment Highlights Page 8 Acquisition & Diversification Strategy Page 16 Appendix Page 24 16 | FCPT | JUNE 2019
Slide 17: FCPT 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,
Slide 18: Investment Opportunity Sourcing
INVESTMENT OPPORTUNITY SOURCING FCPT is principally building its acquisition pipeline through five channels: 1) Consolidating Franchisees: The franchisee industry is highly fragmented, but is undergoing consolidation and growth by top players. FCPT partners with large franchisees on real estate tran
Slide 19: 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 20: Consumer Food Spending
CONSUMER FOOD SPENDING Consumers Spend More on Dining Than on Groceries $70 Grocery Stores Bars and Restaurants $60 $50 $40 $30 Total Sales 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 09 10
Slide 21: Vast Addressable Market Within Restaurant Industry Subsectors
VAST ADDRESSABLE MARKET WITHIN RESTAURANT INDUSTRY SUBSECTORS US GDP – $19.4 Trillion Consumption Investment Government $13.4T $3.2T $3.4T Net Exports Retail Sales -$0.6T $5.7T Restaurants (~9.4% of Retail Sales, $535bn) Quick Family Fine Quick Service & Fast Casual Casual Dining Casual / Buffet Din
Slide 22: Rapid Franchisee Consolidation Creates Real Estate Opportunities
RAPID FRANCHISEE CONSOLIDATION CREATES REAL ESTATE OPPORTUNITIES IN RESTAURANT INDUSTRY Units Owned by the Top 200 Franchisees Average units per Top 200 Franchisees 141 28,109 7.3% CAGR 135 From 2011-2017 26,993 126 25,176 116 23,177 109 21,831 102 20,331 18,408 92 17,887 89 85 16,915 16,715 82 84 1
Slide 23: Further Brand Selection Considerations Surround Long-Term Cash Flow Protection
FURTHER BRAND SELECTION CONSIDERATIONS SURROUND LONG-TERM CASH FLOW PROTECTION Brand Average Sales Volume ($000s) Casual $6,000 $10,495 Dining $5,000 Brands with mid-range sales have more Fast options for re-tenanting in case of vacancy Casual $4,000 Quick Service $3,000 $2,000 $1,000 $0 FCPT pursue
Slide 24: Agenda: Appendix
AGENDA Company Overview and Business Update Page 3 Key Investor Highlights Page 8 Acquisition & Diversification Strategy Page 16 Appendix Page 24 24 | FCPT | JUNE 2019
Slide 25: Select Transaction Overview: Washington Prime Mall Outparcel Portfolio
SELECT TRANSACTION OVERVIEW: WASHINGTON PRIME MALL OUTPARCEL PORTFOLIO • On September 20, 2017, FCPT announced the planned acquisition of 41 restaurant properties from Washington Prime Group (“WPG”) for a purchase price of approximately $67 million (6.7% initial cash yield) with a weighted average r
Slide 26: Select Transaction Overview: Brinker Sale-Leaseback
SELECT TRANSACTION OVERVIEW: BRINKER SALE-LEASEBACK On August 8, 2018, FCPT acquired 46 Chili’s properties for $149.8 million from Brinker International (NYSE: EAT) through a sale-leaseback transaction. Two additional properties closed on September 28, 2018 for $5.9 million, bringing the total trans
Slide 27: Four Corners Property Trust
FOUR CORNERS PROPERTY TRUST NYSE: FCPT INVESTOR PRESENTATION | JUNE 2019 www.fcpt.com 27 | FCPT | JUNE 2019
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