Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Q4 2022 Earnings Presentation
33 slides from Four Corners Property Trust's earnings presentation, Feb 15, 2023
Slide 1: Investor Presentation February 2023
1 | FCPT | FEBRUARY 2023 www.fcpt .comINVESTOR PRESENTATION | FEBRUARY 2023 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
Slide 2: Forward Looking Statements and Disclaimers
2 | FCPT | FEBRUARY 2023 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 2023 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 4: FCPT Overview
4 | FCPT | FEBRUARY 2023 FCPT OVERVIEW 4 | FCPT | OCTOBER 2019 Analytical, Disciplined Investment Philosophy • Focus on cost of capital and investment spread • Use of consistent, data-driven scorecard to objectively rate every property • Investment committee memo and separate public announcement for
Slide 5: Q4 2022 Highlights
5 | FCPT | FEBRUARY 2023 Q4 2022 HIGHLIGHTS 5 | FCPT | OCTOBER 2019 ____________________ Figures as of 12/31/2022, unless otherwise noted 1. Acquisitions through December 31, 2022. 2022 year to date initial cash yield reflects near term rent increases and rent credits given at closing. The 2022 init
Slide 6: 2022 Acquisition Summary
6 | FCPT | FEBRUARY 2023 2022 ACQUIS IT ION SUMMARY FCPT closed $286 million of investments in 2022. The subsector split by acquisition volume was 38% restaurant, 32% auto service, 24% medical retail and 7% other We continue to benefit from increased optionality to acquire assets across our new
Slide 7: Acquisition Growth
7 | FCPT | FEBRUARY 2023 ACQUIS IT ION GROWTH Annual Cash Base Rent ($ million)1 7 | FCPT | OCTOBER 2019 Number of Properties . 94 94 94 96 101 102 105 105 108 109 110 121 126 127 130 131 139 142 144 148 156 158 162 169 175 178 181 185 195 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 +11% CAGR __________
Slide 8: Agenda
8 | FCPT | FEBRUARY 2023 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 9: FCPT's Strong Performance During the Pandemic
9 | FCPT | FEBRUARY 2023 FCPT’S STRONG PERFORMANCE DURING THE PANDEMIC 99.5% 98.8% 99.6% 99.6% 99.7% 99.8% 99.8% 99.8% 99.7% 99.9% 99.8% 99.7% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 99.6% 99.6% 99.6% 99.6% 99.7% 99.7% 99.8% 99.9% 99.9% 99.9% 9
Slide 10: Portfolio Geographic Distribution by ABR
10 | FCPT | FEBRUARY 2023 ___________________ Figures as of 12/31/2022 1. Annual Cash Base Rent (ABR) as defined on page 30 2. Sun Belt States include AZ, NM, OK,TX, MS, AL, GA, SC, NC, TN, AR, LA, FL, southern CA, and southern NV 3. Source: U-Haul growth index 2022 Annualized Base Rent1 (%) ≥10.0%
Slide 11: Low Rents and High EBITDAR Coverage
11 | FCPT | FEBRUARY 2023 Building and Ground Lease: 36% 464 leases Darden Spin Portfolio: 52% 410 leases Ground Lease: 12% 169 leases ___________________ 1. See glossary on page 30 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 72% of port
Slide 12: FCPT Evolution Since Spin-Off: Tenant Diversification
12 | FCPT | FEBRUARY 2023 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 12/31/2022, as defined on page 30 2. Other Darden represents Bah
Slide 13: Agenda
13 | FCPT | FEBRUARY 2023 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 14: Food Inflation
14 | FCPT | FEBRUARY 2023 • Inflation for food at home/grocery has outpaced food away from home/restaurant inflation for 15 consecutive months, with the gap between the two categories at 3.5% for December ____________________ Sources: R.W. Baird & Co. Equity Research report 1/12/2023, Bureau of Labo
Slide 15: Restaurant Sales Trends by Sector
15 | FCPT | FEBRUARY 2023 • Baird’s weekly restaurant survey shows both quick service and casual dining restaurants are performing near or above pre-COVID-19 levels Baird Restaurants Surveys: Weekly Same-Store Sales vs. Two/Three-Years Prior ____________________ Source: Data per The Baird Restaurant
Slide 16: Agenda
16 | FCPT | FEBRUARY 2023 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 17: Conservative Financial Policies
17 | FCPT | FEBRUARY 2023 CONSERVATIVE F INANCIAL 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 rat
Slide 18: Credit Facility Amendment and Debt Maturity Schedule
18 | FCPT | FEBRUARY 2023 On October 25th, FCPT and a group of existing and new banks amended the Credit Facility: Extended $150 million of the Term Loans maturing in 2023 and 2024 into a new $90 million Term Loan maturing in 2027 and $90 million Term Loan maturing in 2028 Increased overall si
Slide 19: Company Momentum Since Inception
19 | FCPT | FEBRUARY 2023 COM PAN Y MOM ENTUM SINCE INCEPTION Team Members 4 +31 35 Annual Base Rent1 $94.4 million +$100.5 million / +106% $194.9 million Properties 418 +605 / +145% 1,023 Brands 5 +126 131 % Darden2 100% -46% 54% Weighted Average Lease Term 15 years - 6.7 years 8.3 years Equity Mar
Slide 20: Summary Capitalization and Financials
20 | FCPT | FEBRUARY 2023 ___________________ Figures represent FCPT financials as of and for three months ended 12/31/2022 1. Represents Q4 2022 annualized results. See page 31 for reconciliation of net income to adjusted EBITDAre and page 30 for non-GAAP definitions 2. Figure represents Annual Cas
Slide 21: Agenda
21 | FCPT | FEBRUARY 2023 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 22: Maintaining Acquisition Philosophy and Criteria
22 | FCPT | FEBRUARY 2023 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 23: Acquisitions by Year
23 | FCPT | FEBRUARY 2023 ACQUIS IT IONS BY YEAR 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 nea
Slide 24: Non-Restaurant: Auto Service Industry
24 | FCPT | FEBRUARY 2023 Auto service is a resilient industry as it is both e-commerce and recession resistant. Auto service 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 zon
Slide 25: Non-Restaurant: Medical Retail Industry
25 | FCPT | FEBRUARY 2023 Representative Acquired Brands NON-RESTAURANT: MEDICAL RETAIL INDUSTRY Portfolio includes 48 leases (4% 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 26: Lease Maturity Schedule
26 | FCPT | FEBRUARY 2023 0.6% 2.4% 2.5% 2.6% 13.8% 12.5% 10.7% 10.4% 10.6% 7.2% 12.9% 1.5% 1.7% 3.0% 1.6% 0.4% 0.4% 1.5% 0.9% 0.4% 0.0% 2.2% 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 ___________________ Note
Slide 27: Brand Diversification
27 | FCPT | FEBRUARY 2023 BRAND DIVERSIF ICATION ___________________ 1. Annual Cash Base Rent (ABR) as of 12/31/2022 as defined on page 30 2. Investment Grade Ratings represent the credit rating of our tenants, their subsidiaries or affiliated companies from Fitch, S&P or Moody's % Investment Grade2
Slide 28: Sustainability Framework
28 | FCPT | FEBRUARY 2023 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 29: 2022 Acquisitions
29 | FCPT | FEBRUARY 2023 2022 ACQUIS IT IONS 1. Totals indicate weighted average 2. Q2 and Q3 2022 initial cash yield reflects near term rent increases and rent credits given at closing. The initial cash yield with rents in place as of closing is 6.4% for 2022 2022 Closed Acquisitions # of Properti
Slide 30: Glossary and Non-GAAP Definitions
30 | FCPT | FEBRUARY 2023 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 31: Reconciliation of Net Income to Adjusted EBITDAre
31 | FCPT | FEBRUARY 2023 RECONCIL IATION OF NET INCOME TO ADJUSTED EBITDAR E ___________________________ 1. See glossary on page 30 for non-GAAP definitions ($000s, except shares and per share data) Unaudited 2022 2021 2022 2021 Net Income 22,900$ 23,735$ 97,908$ 85,745$ Adjustments: Interest expen
Slide 32: FFO & AFFO Reconciliation
32 | FCPT | FEBRUARY 2023 FFO & AFFO RECONCIL IATION ___________________________ 1. Amount represents non-cash deferred income tax benefit recognized in the fourth quarter and year ended December 31, 2022 for income tax benefit at the Kerrow Restaurant Business 2. Assumes the issuance of common shar
Slide 33: Four Corners Property Trust
33 | FCPT | FEBRUARY 2023 www.fcpt .comINVESTOR PRESENTATION | FEBRUARY 2023 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
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