Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (November 2020)
28 slides from Four Corners Property Trust's investor presentation, Nov 3, 2020
Slide 1: Four Corners Property Trust Investor Presentation November 2020
FOUR CORNERS PROPERTY TRUST NYSE: FCPT INVESTOR PRESENTATION | NOVEMBER 2020 www.fcpt.com 1 | FCPT | NOVEMBER 2020
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 & COVID-19 Update Page 3 Restaurant Industry Update Page 5 Lubert-Adler Strategic Joint Venture Page 11 Appendix Page 15 3 | FCPT | NOVEMBER 2020
Slide 4: Executive Summary
EXECUTIVE SUMMARY Portfolio and Covid-19 Update1 FCPT’s portfolio of 751 properties across 74 restaurant and retail brands continues to perform well with occupancy at 99.6% Sector leading rent collection with 99% collected in Q3 2020 and October 2020 Weighted average lease term of 10.5 years w
Slide 5: Agenda
AGENDA Company Overview & COVID-19 Update Page 3 Restaurant Industry Update Page 5 Lubert-Adler Strategic Joint Venture Page 11 Appendix Page 15 5 | FCPT | NOVEMBER 2020
Slide 6: Restaurant Industry Players
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 Strong; Strong; Access to Capital Limited; friends and family publicly traded companies publicly traded companies
Slide 7: Restaurant Sales Trends by Sector
RESTAURANT SALES TRENDS BY SECTOR . Baird’s weekly restaurant survey shows quick service has been minimally impacted by COVID, showing positive same-store sales since May . Casual dining has made a strong recovery after reaching a trough even with partial capacity constraints through more efficient
Slide 8: Chain vs Independent Restaurant Performance
CHAIN VS INDEPENDENT RESTAURANT PERFORMANCE Consumer trailing 7-day average year-over-year spending changes at “Big Chain” and “Other” restaurants According to a recent Bank of America study of spending data, sales at big restaurant chains had largely recovered from the coronavirus pandemic while th
Slide 9: Kerrow LongHorn Steakhouse COVID-19 Initiatives & Performance
KERROW LONGHORN STEAKHOUSE COVID-19 INITIATIVES & PERFORMANCE • Kerrow includes six franchised LongHorn Steakhouses in San Antonio owned and operated by FCPT with 2019 sales of $20.6 million • Revenue has largely recovered and is now just below pre-COVID levels after declining over 90% year-over-yea
Slide 10: 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 cat
Slide 11: Agenda
AGENDA Company Overview & COVID-19 Update Page 3 Restaurant Industry Update Page 5 Lubert-Adler Strategic Joint Venture Page 11 Appendix Page 15 11 | FCPT | NOVEMBER 2020
Slide 12: Strategic Joint Venture Opportunity Overview
STRATEGIC JOINT VENTURE OPPORTUNITY OVERVIEW • The fallout of COVID-19 on the restaurant industry continues to unfold and, unfortunately, many stores will close. Reports have been published in recent months estimating ~65,000 restaurants1 may go vacant in the coming years as a result of financial st
Slide 13: Strategic Joint Venture: The Partnership
STRATEGIC JOINT VENTURE THE PARTNERSHIP 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 an
Slide 14: Identifying the Opportunity
IDENTIFYING THE OPPORTUNITY Basis Reset Strong Better Real Estate Demographics Drive-thru No Vacancy Vacancy Likely Zoned (Gaining Market Share, (The Opportunity) Long-Term Hold) High Traffic Weak Strong Tenant/ Signalized Tenant/ Corner Concept Concept Regional Concept / National Concept/ National
Slide 15: Agenda
AGENDA Company Overview & COVID-19 Update Page 3 Restaurant Industry Update Page 5 Lubert-Adler Strategic Joint Venture Page 11 Appendix Page 15 15 | FCPT | NOVEMBER 2020
Slide 16: Outparcel Strategy Update
OUTPARCEL STRATEGY UPDATE: >$280 MILLION OF LOW BASIS PROPERTIES FCPT continues to engage with mall and shopping center owners in its outparcel acquisition strategy with several sellers entering repeat and expanded portfolio transactions Mall / shopping center outparcels are typically low rent,
Slide 17: Company Momentum Since Inception in November 2015
COM PAN Y M OM ENTUM SINCE INCEPTI ON I N NOV E MBER 2015 Casual, Family & At Inception As of 9/30/2020 Fine Dining Team Members 4 +19 23 +$53.4 million / Annual Base Rent1 $94.4 million $147.8 million +57% Properties 418 +333 / +80% 751 Brands 5 +69 74 % Darden2 100% -32% 68% Quick Service & Fast C
Slide 18: FCPT Evolution Since Spin-Off: Tenant Diversification
FCPT EVOLUTION SINCE SPIN- OFF: SIGNIFICANT PROGRESS ON TENANT DIVERSIFICATION Brand Exposure by Annualized Base Rent (ABR) 14% Other Darden2 114 leases 3% 20% 14 leases 104 leases Other Darden 9% 6% 64 leases 14 leases 74% 300 leases Other Restaurants 51% 21% 308 leases 228 leases 43 brands +56.6%
Slide 19: Acquisition Growth
19 | FCPT | OCTOBER 2019 ACQUISITION GROWTH Annual Base Rent ($ million)1 +10% CAGR 147.8 139.4 142.0 144.1 126.8 129.7 130.9 120.9 125.6 108.0 109.4 109.6 101.0 102.1 105.2 105.3 94.4 94.4 94.4 95.9 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 20: Lease Maturity Schedule
LEASE MATURITY SCHEDULE Lease Maturity Schedule (% Annualized Cash Base Rent1) 99.6% occupied2 as of 9/30/2020 15.7% 13.7% Weighted average lease term 12.3% of 10.5 years 11.7% 11.1% 10.3% Less than 6.8% of rental income matures prior to 2027 7.4% 3.0% 3.0% 2.4% 1.6% 1.7% 1.1% 1.0% 1.1% 1.2% 0.7% 0.
Slide 21: Summary Capitalization and Financials
SUMMARY CAPITALIZATION AND FINANCIALS Capitalization Current Trading Metrics ($ million, except per share) Annual base rent2 ($ million) $147.8 Share price (9/30/2020) $25.59 Implied Cap Rate 5.6% 3 17.3x Shares and OP units outstanding (millions) 73.0 Price / AFFO Multiple Annualized Dividend per s
Slide 22: FCPT Debt Maturity Schedule
FCPT DEBT MATURITY SCHEDULE ($ in Millions) 4.9-year weighted average (1) term Undrawn Revolver Capacity 87% fixed rate debt Drawn Revolver 3.3% weighted average cash interest rate Unsecured Term Loan Full $250 million available on revolver Unsecured Notes $250 $150 $150 $150 $100 $75 $75 $50 $50 $5
Slide 23: Brand Diversification
BRAND DIVERSIFICATION FCPT Portfolio Brands Square Feet % of Square Feet % of (1) (1) Rank Brand Name Number (000s) ABR Rank Brand Name Number (000s) ABR 1 Olive Garden 308 2,623 50.7% 16 Wendy's 7 24 0.5% 2 Longhorn Steakhouse 114 639 14.4% 17 McDonald's 5 23 0.5% 3 Chili's 64 352 8.7% 18 Chick-Fil
Slide 24: Geographic Diversification
GEOGRAPHIC DIVERSIFICATION ND WA MT MN ME 751 Properties SD WI ID MI VT NH OR WY NY IA MA NE CT RI PA OH NV IL IN NJ UT CO MD DE 46 States KS MO WV KY VA CA TN Annualized OK NC 1 AR Base Rent (%) AZ NM SC ≥10.0% 74 Brands MS AL GA 5.0%–10.0% LA TX 3.0%–5.0% 2.0%–3.0% 5.0 mm sq ft FL 1.0 %–2.0% <1.0%
Slide 25: 2020 Closed Acquisitions
2020 CLOSED ACQUISITIONS 2020 Closed Acquisitions Purchase Initial Cash Term Tenant Location # of Properties Operator / Guarantor Information Price ($mm) Yield (years) Announced Close Arby's NC 1 Corporate $1.6 6.6% 7 1/6/2020 Chili's / Texas Roadhouse KS 2 Franchisee / Corporate $2.1 6.3% 6 1/10/20
Slide 26: Glossary and Non-GAAP Definitions
GLOSSARY AND NON-GAAP DEFINITIONS Non-GAAP Definitions and Cautionary Note Regarding Forward-Looking Statements: This document includes certain non-GAAP financial measures that employed by other REITs. condition and results from operations, the utility of FFO as a measure management believes are hel
Slide 27: Reconciliation of Net Income to Adjusted EBITDAre
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDARE ($000s, except shares and per share data) Three Months Ended September 30, Nine Months Ended September 30, Unaudited 2020 2019 2020 2019 Net Income $ 19,404 $ 18,409 $ 57,260 $ 53,946 Adjustments: Interest expense 7,410 6,665 21,732 19,969 Income tax
Slide 28: Four Corners Property Trust
FOUR CORNERS PROPERTY TRUST NYSE: FCPT INVESTOR PRESENTATION | NOVEMBER 2020 www.fcpt.com 28 | FCPT | NOVEMBER 2020
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