Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (June 2023)
31 slides from Four Corners Property Trust's investor presentation, Jun 5, 2023
Slide 1: Four Corners Property Trust
Four Corners Property Trust NYSE: FCPT Exhibit 99.2
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 Q2 Update Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 13 Conservative Financial Position Page 19
Slide 4: Top Ten Points about FCPT
Top ten Points about FCPT | FCPT | OCTOBER 2019 Representative Brands High-Quality Portfolio1 Strong Portfolio: 4.6x tenant EBITDAR coverage2 with nationally established brands and a focus on low rents. Recently constructed, e-commerce resistant portfolio Minimal Number of Near-Term Expirations: Les
Slide 5: $100 Million Senior Unsecured Notes Private Offering
FCPT entered into an agreement to issue $100 million of senior unsecured notes on June 5, 2023. The 10-year Notes are priced at a fixed interest rate of 6.44% and a 5.39% yield to maturity including a $8.1 million interest-rate hedge gain The Notes will fund on July 12th and will be used for general
Slide 6: Proforma Capitalization for Note Offering
___________________ Figures represent FCPT financials as of and for three months ended 3/31/2023 Represents Q1 2023 annualized results. See page 30 for reconciliation of net income to adjusted EBITDAre and page 29 for non-GAAP definitions Figure represents Annual Cash Base Rent (ABR) as of 3/31/2023
Slide 7: Summary of Announced and Closed Transactions Year to Date
Summary of Announced and Closed Transactions Year to Date FCPT’s acquisition volume has accelerated post Q1 2023 Year to date through June 2, the Company has closed or announced $154 million of transactions as detailed below Over 55% of year-to-date acquisition volume consists of the $85 million acq
Slide 8: Select Transaction Overview: Darden Portfolio
Select transaction overview: Darden Portfolio Transaction Overview: Properties: 13 Cheddar’s, 1 Olive Garden (all corporate-operated by Darden) Corporate Operator / Guarantor: Darden Restaurants (rated Baa2/BBB/BBB by Moody’s/S&P/Fitch) Initial Rent: ~$5.4 million Rent Increases: 1.5% increase every
Slide 9: Non-Restaurant: Medical Retail Industry
___________________ Representative Acquired Brands Non-Restaurant: Medical Retail Industry Portfolio of 54 properties (4% of annual base rent)1 FCPT targets medical retail locations such as urgent care, dental, outpatient and primary care clinics, ambulatory surgery centers, and veterinary care Repr
Slide 10: Investment Opportunity Sourcing
investment opportunity sourcing FCPT is principally building its acquisition pipeline through five channels: Large Sale-Leaseback Transactions: These transactions can be large in scale, and typically have a competitive bidding process amongst institutional investors. Given other forms of capital hav
Slide 11: Rising Inflation Has Positive and Negative Effects in Net Lease
Rising Inflation has both positive and negative effects in Net lease The effects of inflation and rising interest rates shown above are valuation agnostic (i.e., ignores potential equity valuation changes) Interest Rates / Inflation Renewal Probability: Relocation costs for tenants increase translat
Slide 12: Strong Recent Restaurant Results
Strong Recent Restaurant Results Baird’s weekly restaurant survey shows both quick service and casual dining restaurants continue to preform near or above prior year levels. Specifically, our three largest brands are continuing to leverage rising sales volumes and benefit from moderating labor and c
Slide 13: Agenda
AGENDA Company Overview and Q2 Update Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 13 Conservative Financial Position Page 19
Slide 14: Acquisition Growth
Acquisition growth Annual Cash Base Rent ($ million)1 | FCPT | OCTOBER 2019 Number of Properties . +11% CAGR ___________________ As defined on page 29 +14% CAGR
Slide 15: FCPT's Strong Portfolio Performance
FCPT’s Strong Portfolio Performance FCPT has one of the highest-quality portfolios in the net lease sector that has performed at a high level ____________________ FCPT reported 92% collected rent in Q2 2020, with 4% abated in return for lease modifications and 3% deferred. FCPT collected the 3% defe
Slide 16: Sun Belt Geographic Exposure
___________________ Figures as of 3/31/2023 Annual Cash Base Rent (ABR) as defined on page 29 Sun Belt States include AZ, NM, OK,TX, MS, AL, GA, SC, NC, TN, AR, LA, FL, southern CA, and southern NV Source: U-Haul growth index 2022 Annualized Base Rent1 (%) ≥10.0% 5.0%–10.0% 3.0%–5.0% 2.0%–3.0% 1.0 %
Slide 17: Low Rents and High EBITDAR Coverage
___________________ See glossary on page 29 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 72% of portfolio annual cash base rent. Reporting for non-restaurant sector not included as most non-restaurant tenants do not report financial data.
Slide 18: FCPT Evolution Since Spin-Off: Tenant Diversification
fcpt evolution since spin-off: Significant progress on tenant diversification ___________________ Represents current Annual Cash Base Rent (ABR) as of 3/31/2023, as defined on page 29 Other Darden represents Bahama Breeze, Cheddar’s, Seasons 52, and Eddie V’s branded restaurants Initial Portfolio at
Slide 19: Agenda
AGENDA Company Overview and Q2 Update Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 13 Conservative Financial Position Page 19
Slide 20: Conservative Financial Policies
Conservative Financial Policies As FCPT continues to grow and diversify, 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 5.6x1; long-term objectiv
Slide 21: Company Momentum Since Inception
C OM P AN Y M OM E N T U M S I N C E I N C E P T I ON Team Members 4 +32 36 Annual Base Rent1 $94.4 million +$101.3 million / +107% $195.7 million Properties 418 +612 / +146% 1,030 Brands 5 +126 131 % Darden2 100% -46% 54% Weighted Average Lease Term 15 years - 7 years 8.0 years Equity Market Cap $8
Slide 22: Agenda
AGENDA Company Overview and Q2 Update Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 13 Conservative Financial Position Page 19
Slide 23: Maintaining Acquisition Philosophy and Criteria
Maintaining Acquisition 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 concepts that are category-l
Slide 24: Acquisitions By Year
Acquisitions By Year Figures as of 3/31/2023 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. 2022 initial cash yield reflects near te
Slide 25: Non-Restaurant: Auto Service Industry
Auto service is both e-commerce and recession resistant and tends to operate in high-traffic corridors with good visibility, boosting the intrinsic real estate value and reuse potential More limited relocation options due to zoning restrictions lead to high tenant renewal probability _______________
Slide 26: Lease Maturity Schedule
Lease Maturity Schedule ___________________ Note: Excludes renewal options. All data as of 3/31/2023 Annual cash base rent (ABR) as defined in glossary Occupancy based on portfolio square footage Lease Maturity Schedule (% Annualized Cash Base Rent1) 99.9% occupied2 as of 3/31/2023 Weighted average
Slide 27: Brand Diversification
Brand diversification ___________________ Annual Cash Base Rent (ABR) as of 3/31/2023 as defined on page 29 Investment Grade Ratings represent the credit rating of our tenants, their subsidiaries or affiliated companies from Fitch, S&P or Moody's % Investment Grade2: 61%
Slide 28: Sustainability Framework
Sustainability 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 responsibility, employee well-
Slide 29: Glossary and Non-GAAP Definitions
Glossary and non-gaap definitions 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 other REITs and therefor
Slide 30: Reconciliation Schedules
___________________________ See glossary on page 29 for non-GAAP definitions Other non-reimbursed property expenses include non-reimbursed tenant expenses, vacant property expenses, abandoned deal costs, property legal costs, and franchise taxes Reconciliation of Net Income to Adjusted EBITDAre Rent
Slide 31: Four Corners Property Trust
Four Corners Property Trust NYSE: FCPT
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