Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — FY2021 Earnings Presentation
31 slides from Four Corners Property Trust's earnings presentation, Feb 16, 2022
Slide 1: Investor Presentation February 2022
1 | FCPT | FEBRUARY 2022 www.fcpt .comINVESTOR PRESENTATION | FEBRUARY 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
Slide 2: Forward Looking Statements and Disclaimers
2 | FCPT | FEBRUARY 2022 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
Slide 3: Agenda
3 | FCPT | FEBRUARY 2022 AGENDA Restaurant Industry Update Page 17 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 20 High Quality Portfolio Page 10
Slide 4: Operating Highlights
4 | FCPT | FEBRUARY 2022 OPERATING HIGHLIGHTS ____________________ Figures as of 12/31/2021, unless otherwise noted 1. See page 28 for non-GAAP definitions, and page 30 for reconciliation of net income to AFFO. 2. Based on contractual Annual Cash Base Rent as defined in glossary, except for occupanc
Slide 5: Acquisitions by Year
5 | FCPT | FEBRUARY 2022 ACQUIS IT IONS BY YEAR 5 | FCPT | OCTOBER 2019 Note: Figures exclude capitalized transaction costs. Initial cash yield calculation excludes $2.1 million, and $2.4 million of real estate purchases in our Kerrow operating business for 2019 and 2020, respectively. 2016 2017 201
Slide 6: 2021 Acquisition Summary
6 | FCPT | FEBRUARY 2022 2021 ACQUIS IT ION SUMMARY FCPT closed $257 million of investments in 2021. The subsector split by acquisition volume was 39% restaurant, 36% auto service, 18% medical retail and 7% other We continue to benefit from increased optionality to acquire assets across our new
Slide 7: Acquisition Growth
7 | FCPT | FEBRUARY 2022 ACQUIS IT ION GROWTH Annual Cash Base Rent ($ million)1 7 | FCPT | OCTOBER 2019 Number of Properties . 94.4 94.4 94.4 95.9 101.0 102.1 105.2 105.3 108.0 109.4 109.6 120.9 125.6 126.8 129.7 130.9 139.4 142.0 144.1 147.8 156.0 158.2 161.6 168.8 175.2 4Q15 1Q16 2Q16 3Q16 4Q16 1
Slide 8: Summary Capitalization and Financials
8 | FCPT | FEBRUARY 2022 ___________________ Figures represent FCPT financials as of and for three months ended 12/31/2021 1. Represents Q4 2021 annualized results. See page 29 for reconciliation of net income to adjusted EBITDAre and page 28 for non-GAAP definitions. 2. Figure represents Annual Cas
Slide 9: FCPT Debt Maturity Schedule
9 | FCPT | FEBRUARY 2022 FCPT DEBT MATURITY SCHEDULE ___________________ Figures as of 12/31/2021 1. The revolving credit facility expires on November 9, 2025 subject to FCPT’s availability to extend the term for one additional six-month period to May 9, 2026. Current Debt Maturity Schedule ($ milli
Slide 10: Agenda
10 | FCPT | FEBRUARY 2022 AGENDA Restaurant Industry Update Page 17 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 20 High Quality Portfolio Page 10
Slide 11: High-Quality Net Lease Portfolio
11 | FCPT | FEBRUARY 2022 104 leases 300 leases 14 leases FCPT has one of the highest-quality portfolios in the net lease sector. Performance during the COVID- 19 pandemic has been exceptional with high collections and occupancy well over 99% during the past two years FCPT deferred less than 1%
Slide 12: FCPT's Strong Performance During the Pandemic
12 | FCPT | FEBRUARY 2022 FCPT’S STRONG PERFORMANCE DURING THE PANDEMIC 99.5% 98.8% 99.6% 99.6% 99.7% 99.8% 99.8% 99.8% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 99.6% 99.6% 99.6% 99.6% 99.7% 99.7% 99.8% 99.9% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 • FC
Slide 13: Portfolio Lease Structure and Rent Coverage
13 | FCPT | FEBRUARY 2022 Building and Ground Lease: 33% 384 leases Darden Spin Portfolio : 57% 411 leases Ground Lease: 10% 141 leases ___________________ 1. See glossary on page 28 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 78% of por
Slide 14: Company Momentum Since Inception in November 2015
14 | FCPT | FEBRUARY 2022 COM PAN Y MOM ENTUM SINCE INCEPTION IN NOV EMBER 2015 Team Members 4 +25 29 Annual Base Rent1 $94.4 million +$80.8 million / +86% $175.2 million Properties 418 +501 / +120% 919 Brands 5 +107 112 % Darden2 100% -41% 59% Overhead Efficiency3 10.0% -2.5% 7.5% Equity Market Cap
Slide 15: FCPT Evolution Since Spin-Off: Tenant Diversification
15 | FCPT | FEBRUARY 2022 F C P T E V O L U T I ON S I N C E S P I N - O FF : S I G N I F I C A N T P R O G R E S S O N T E N A N T D I V E R S I F I C A TI ON ___________________ 1. Represents current Annual Cash Base Rent (ABR) as of 12/31/2021, as defined on page 28. 2. Other Darden represents Ba
Slide 16: Maintaining Acquisition Philosophy and Criteria
16 | FCPT | FEBRUARY 2022 MAINTAINING ACQUIS IT ION PHILOSOPHY AND CRITERIA Acquisition Philosophy • Acquire strong restaurants and retail brands that are well located with creditworthy lease guarantors • Purchase assets only when accretive to cost of capital with a focus on low basis • Focused on a
Slide 17: Agenda
17 | FCPT | FEBRUARY 2022 AGENDA Restaurant Industry Update Page 17 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 20 High Quality Portfolio Page 10
Slide 18: Restaurant Sales Trends by Sector
18 | FCPT | FEBRUARY 2022 • Baird’s weekly restaurant survey shows both quick service and casual dining restaurants are performing near or above COVID-19 levels Baird Restaurants Surveys: Weekly Same-Store Sales vs. Two-Years Prior ____________________ Source: Data per The Baird Restaurant Surveys (
Slide 19: Darden Performance and Concentration
19 | FCPT | FEBRUARY 2022 DARDEN PERFORMANCE AND CONCENTRATION Inception November 2015 FCPT BBB- Rating January 2017 Pre-COVID Q4 2019 Current Q4 2021 Darden Restaurants Rating BBB BBB BBB BBB Sales per Store - Olive Garden ($ millions) $4.9 $4.9 $5.1 $4.9 Sales per Store - LongHorn ($ millions) $3.
Slide 20: Agenda
20 | FCPT | FEBRUARY 2022 AGENDA Restaurant Industry Update Page 17 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 20 High Quality Portfolio Page 10
Slide 21: Non-Restaurant: Auto Service Industry
21 | FCPT | FEBRUARY 2022 Auto service is a resilient industry as it is both e-commerce and recession resistant. It has a service component and consumer cost-savings angle to repair instead of purchasing new vehicles Most auto service tenants were deemed “essential” businesses during COVID-19
Slide 22: Non-Restaurant: Medical Retail Industry
22 | FCPT | FEBRUARY 2022 Representative Acquired Brands NON-RESTAURANT: MEDICAL RETAIL INDUSTRY Portfolio includes 23 leases (2% 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 resi
Slide 23: Geographic Diversification
23 | FCPT | FEBRUARY 2022 GEOGRAPHIC DIVERSIF ICATION ___________________ Figures as of 12/31/2021. Excludes seven owned / ground leased restaurants in the Kerrow Restaurant Operating Business 1. Annual Cash Base Rent (ABR) as defined on page 28. 919 Properties 46 States 112 Brands 6.0 mm sq ft Port
Slide 24: Lease Maturity Schedule
24 | FCPT | FEBRUARY 2022 0.5% 1.1% 2.6% 2.1% 2.2% 11.8% 12.9% 11.0%11.1%10.8% 6.8% 13.7% 1.4% 1.7% 3.0% 1.1% 0.2% 0.6% 1.7% 1.0% 0.0% 0.0% 2.6% 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 25: Brand Diversification
25 | FCPT | FEBRUARY 2022 FCPT Portfolio Brands Rank Brand Name Number Square Feet (000s) % of ABR(1) Rank Brand Name Number Square Feet (000s) % of ABR(1) 1 Olive Garden 311 2,646 44.3% 16 Verizon 11 30 0.7% 2 Longhorn Steakhouse 115 645 12.6% 17 National Tire & Battery 8 55 0.6% 3 Chili's 78 427 8
Slide 26: Sustainability Framework
26 | FCPT | FEBRUARY 2022 SUSTAINABIL ITY FRAMEWORK 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 res
Slide 27: 2021 Acquisitions
27 | FCPT | FEBRUARY 2022 2021 ACQUIS IT IONS 1. Totals indicate weighted average. 2021 Closed Acquisitions # of Properties Purchase Price ($ millions) Initial Cash Yield Initial Term (years)1 Q1 - Q3 2021 Closed Acquisitions: Q1 2021 Summary: 13 $33.9 6.6% 10 Q2 2021 Summary: 23 $45.6 6.9% 7 Q3 202
Slide 28: Glossary and Non-GAAP Definitions
28 | FCPT | FEBRUARY 2022 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
Slide 29: Reconciliation of Net Income to Adjusted EBITDAre
29 | FCPT | FEBRUARY 2022 RECONCIL IATION OF NET INCOME TO ADJUSTED EBITDAR E ___________________________ 1. See glossary on page 28 for non-GAAP definitions. ($000s, except shares and per share data) Unaudited 2021 2020 2021 2020 Net Income 23,735$ 20,307$ 85,745$ 77,567$ Adjustments: Interest expe
Slide 30: FFO & AFFO Reconciliation
30 | FCPT | FEBRUARY 2022 FFO & AFFO RECONCIL IATION ___________________________ 1. Amount represents base rent that the Company abated as a result of lease amendments. In 2020, the Company abated $1.57 million of rental revenue recognized in the second and third quarters of 2020. The receivables as
Slide 31: Four Corners Property Trust
31 | FCPT | FEBRUARY 2022 www.fcpt .comINVESTOR PRESENTATION | FEBRUARY 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
Four Corners Property Trust — FY2021 Earnings Presentation on 6ix