Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (February 2024)
33 slides from Four Corners Property Trust's investor presentation, Feb 14, 2024
Slide 1: Investor Presentation February 2024
INV ES TOR P RES ENTATION FEBRUA RY 2 02 4 Four Corners Property Trust N Y S E : F C P T
Slide 2: Cautionary note regarding forward-looking statements
F E B R U A R Y 2 0 2 4 2 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 those regarding F
Slide 3: Contents
F E B R U A R Y 2 0 2 4 3 CONTENTS 1 C O M P A N Y O V E R V I E W P G 3 2 H I G H Q U A L I T Y P O R T F O L I O P G 9 3 C O N S E R V A T I V E F I N A N C I A L P O S I T I O N P G 2 3 4 A P P E N D I X P G 2 6
Slide 4: FCPT Overview
FCPT OVERVIEW REPRESENTATIVE BRANDS SAMPLE 4 H I G H - Q U A L I T Y P O R T F O L I O • Recently assembled, e-commerce resistant portfolio • Strong Tenant EBITDAR / Rent Coverage, nationally established brands and low rents provide for high tenant retention and limited vacancies T R A N S P A R E N
Slide 5: 2023 Portfolio and Investment Highlights
5F E B R U A R Y 2 0 2 4 I N V E S T M E N T S 4 99.8% occupied 4.9x tenant EBITDAR coverage2 1.4% average annual escalator 7.8-year average lease term remaining Capital deployed ($M) Average initial cash yield Initial average lease term Dispositions ($M) Cash yield 2 0 2 3 P OR TF OLIO A N D IN V E
Slide 6: Financial Highlights
F E B R U A R Y 2 0 2 4 6 2 0 2 3 F I N A N CI A L H IG H LIG HTS $0.27 Q4 2023 Net income per share $1.07 2023 Net income per share $0.43 Q4 2023 AFFO per share1 $1.67 2023 AFFO per share1 4.9% Growth quarter over quarter $0.41 Q4 2023 FFO per share $1.62 2023 FFO per share $259 million Liquidity w
Slide 7: Acquisition Summary
F E B R U A R Y 2 0 2 4 7 2 0 2 3 A C QU ISITION S U M MAR Y • FCPT closed $333 million of investments in 2023. The subsector split by acquisition volume was 39% restaurant, 36% medical retail, 23% auto service, and 3% other • FCPT has increased its focus on medical retail and, as such, have include
Slide 8: Acquisition Volume by Year
F E B R U A R Y 2 0 2 4 8 A C Q U I S I T I O N V O L U M E B Y Y E A R 418 475 515 610 699 799 919 1023 1111 2015 SPIN - - 2016 $94 6.6% $1.6 2017 $99 6.8% $2.3 2018 $263 6.5% $2.7 2019 $199 6.5% $2.2 2020 $223 6.5% $2.2 2021 $257 6.5% $2.1 2022 $286 6.5% $2.6 2023 $333 +6.7% $3.5 +57 +40 +95 +89 +
Slide 9: Company Overview
F E B R U A R Y 2 0 2 4 9 1 C O M P A N Y O V E R V I E W P G 3 2 H I G H Q U A L I T Y P O R T F O L I O P G 9 3 C O N S E R V A T I V E F I N A N C I A L P O S I T I O N P G 2 3 4 A P P E N D I X P G 2 6 CONTENTS
Slide 10: FCPT's Strong Portfolio Performance
F E B R U A R Y 2 0 2 4 10 F C P T ’ S S T R ON G P O R T F OL I O P E R F OR MANCE FCPT has one of the highest-quality portfolios in the net lease sector and has established a strong track record over time (even through the COVID-19 pandemic) R E N T C O L L E C T I O N S 99.5% 98.8% 99.6% 99.6% 99
Slide 11: Geographically Diverse Portfolio
F E B R U A R Y 2 0 2 4 11 G E O G R APH I C AL LY D I V E R S E P OR TF OLIO • Lower taxes and a shift toward work-from- home has accelerated a demographic shift toward low-cost of living and high-quality of life states • FCPT’s portfolio is primarily suburban and located in fast-growing and divers
Slide 12: Low Rent / High Coverage Portfolio
• FCPT’s high caliber portfolio benefits from strong rent coverage. Rents for the original Darden spin- off properties were purposely set at sustainable levels, and our current investment strategy and credit underwriting focuses on acquiring low rent and high rent coverage properties (including grou
Slide 13: Brand Exposure by Annualized Base Rent
F E B R U A R Y 2 0 2 4 13 B R A N D E X P O S U RE B Y A N N UAL IZ ED B A S E R E N T 314 leases 83 leases 319 leases 58 brands 26 leases 140 leases 29 brands 115 leases Other restaurants Auto service 85 leases 29 brands Medical retail 53 leases 25 brands Other retail 1,135 Leases / 148 Brands Ann
Slide 14: Brand Diversification
F E B R U A R Y 2 0 2 4 14 B R A N D D IV E R SIF ICATION Rank Brand Name # Sq Ft (000s) % of ABR(1) 1 Olive Garden 314 2,673 37.1% 2 Longhorn Steakhouse 115 645 10.4% 3 Chili's 83 455 7.8% 4 Buffalo Wild Wings 28 171 2.5% 5 Cheddar's 13 112 2.2% 6 Red Lobster 18 130 1.7% 7 Caliber Collision 28 390
Slide 15: Lease Maturity Schedule
F E B R U A R Y 2 0 2 4 15 8.1% 8.3% 7.1% 7.5% 6.6% 4.7% 4.7% 1.3% 2.2% 2.9% 4.7% 3.6% 3.8% 2.5% 3.0% 2.3% 8.7% 1.5% 2.3% 3.3% 2.3% 2.8% 0.4% 1.4% 0.8% 1.7% 0.3% 1.3% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Darden Spin Other % A N N U
Slide 16: Strong Recent Restaurant Results
“ S T R ON G R E C E N T R E S T AU R AN T R E S U LT S B A I R D R E S T A U R A N T S S U R V E Y S : W E E K L Y S A M E - S T O R E S A L E S V S . Y E A R P R I O R 16 • Baird’s weekly restaurant survey shows both quick service and casual dining restaurants continue to perform near or above pri
Slide 17: Darden Performance and Concentration
F E B R U A R Y 2 0 2 4 17 D A R D EN P E R FO R M AN CE A N D C O N C E N T R AT I O N Darden has improved its performance beyond pre-COVID levels and maintained its strong credit profile Inception Pre-COVID Current1 Darden Restaurants Darden Rating (Fitch/Moody’s/S&P) BBB / Baa3 / BBB BBB / Baa2 /
Slide 18: Diversification: Auto Industry
18 140 leases 9% of annual base rent1 • Principally targeting auto service centers, including collision repair and tire service leased to credit worthy operators. We have made select investments in gas stations with large format convenience stores, car wash and auto part retailers at attractive, low
Slide 19: Diversification: Medical Retail
19 85 leases 7% of annual base rent1 D I V E R S I FI CAT I ON : M E D ICAL RE TA IL • FCPT’s largest medical retail exposures are focused on outpatient services: urgent care, dental, primary care, veterinary care, and outpatient / ambulatory surgery centers • Medical retail is e-commerce and recess
Slide 20: Outpatient Trends
“ O U T P AT I E N T TR E N DS Outpatient Visits Inpatient Admissions Inpatient admissions per 1,000 populationsOutpatient visits per 1,000 populations U . S . O U T P A T I E N T v s . H O S P I T A L ( I N P A T I E N T ) A D M I S S I O N S 1 20 Over the past two decades, the availability and acc
Slide 21: Care Continuum and FCPT Focus
F E B R U A R Y 2 0 2 4 Skilled nursing facilities Primary Care Clinic Pharmacy Virtual Diagnostic / Imaging clinic Hospital Urgent / Dental / Veterinary C ar e A cu it y C os t Care Continuum Freestanding emergency room care Ambulatory surgery / Outpatient treatment Inpatient rehab Outpatient rehab
Slide 22: Medical Retail Investment History
F E B R U A R Y 2 0 2 4 22 M E D I C AL R E T AI L INV E STMENT HIS T ORY Sector 2021 2022 2023 Total Investment Total leases % Total Medical Urgent Care $11 $20 $27 $58 24 25% Primary Care $2 $2 $39 $42 12 18% Veterinary $9 $17 $11 $37 13 16% Dialysis $10 $18 $3 $30 13 13% Dental $8 $7 $13 $28 13 1
Slide 23: High Quality Portfolio
F E B R U A R Y 2 0 2 4 23 2 H I G H Q U A L I T Y P O R T F O L I O P G 9 3 C O N S E R V A T I V E F I N A N C I A L P O S I T I O N P G 2 3 4 A P P E N D I X P G 2 6 1 C O M P A N Y O V E R V I E W P G 3CONTENTS
Slide 24: Debt Maturity Schedule and Conservative Financial Position
“ F E B R U A R Y 2 0 2 4 24 $150 $100 $90 $90 $16 $234 $50 $75 $50 $50 $150 $165 $140 $100 $75 $100 $75 $100 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Unsecured Notes Undrawn Revolver Drawn Revolver Unsecured Term D E B T M A T U R I T Y S C H E D U L E ( $ M I L L I O N S ) FCPT maintains
Slide 25: Company Momentum Since Inception
F E B R U A R Y 2 0 2 4 25 C O M P AN Y M O M E N T U M S IN C E IN C E PTION A S O F 1 2 / 3 1 / 2 3 Rating UNRATED BBB (FITCH) Baa3 (MOODY’S) Team members 4 40 + 36 Annual base rent1 $94.4 million $218.2 million + $123.8 million (+131%) Properties 418 1,111 + 693 (+166%) Brands 5 148 + 143 % Darde
Slide 26: Conservative Financial Position
F E B R U A R Y 2 0 2 4 26 2 H I G H Q U A L I T Y P O R T F O L I O P G 9 1 C O M P A N Y O V E R V I E W P G 3 4 A P P E N D I X P G 2 6 CONTENTS 3 C O N S E R V A T I V E F I N A N C I A L P O S I T I O N P G 2 3
Slide 27: Acquisition and Underwriting Framework
F E B R U A R Y 2 0 2 4 27 50% C R E D I T C R I T E R I A • Guarantor credit and health • Brand durability • Store performance • Lease term and structure • Location • Retail corridor strength & demographics • Access / visibility • Absolute and relative rent • Pad site and building reusability A C Q
Slide 28: Sustainability Framework
E N V I R O N M E N T S O C I A L O U R T E A M G O V E R N A N C E S U S T AI N AB I L I T Y F R A M EWOR K Our commitment to sustainability and Environmental, Social and Governance (ESG) principles creates value our shareholders. We continuously review our internal policies to advance in the areas
Slide 29: Non-GAAP Definitions and Cautionary Note
29 NON-GAAP DEFINITIONS AND CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: 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 m
Slide 30: Reconciliation Schedules
F E B R U A R Y 2 0 2 4 30 R E C O N CI LI AT I ON S C H EDULES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDARE (In thousands) Unaudited 2023 2022 2023 2022 Net Income $24,459 $22,900 $95,462 $97,908 Adjustments: Interest expense 12,361 9,822 44,606 36,405 Income tax expense 80 28 130 237 Deprecia
Slide 31: FFO & AFFO Reconciliation
F E B R U A R Y 2 0 2 4 31 F F O & A F F O R E C ONCILIATION (In thousands) Unaudited 2023 2022 2023 2022 Net income $24,459 $22,900 $95,462 $97,908 Depreciation and amortization 13,284 11,020 50,592 41,342 Realized gain on sales of real estate (288) (555) (2,341) (8,139) FFO (as defined by NAREIT)
Slide 32: Footnotes
PAGE 10 FCPT STRONG PORTFOLIO PERFORMANCE 1. FCPT reported 92% collected rent in Q2 2020, with 4% abated in return for lease modifications and 3% deferred. FCPT collected the 3% deferred rent in Q4 2020. The 98.8% number above included deferred rent that was paid and the abated rent for which FCPT r
Slide 33: Thank You
Four Corners Property Trust N Y S E : F C P T THANK YOU INV ES TOR P RES ENTATION FE BRUA RY 2 02 4
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