Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (June 2017)
26 slides from Four Corners Property Trust's investor presentation, Jun 2, 2017
Slide 1: Four Corners Property Trust Investor Presentation June 2017
Exhibit 99.1 F O U R C O R N E R S P R O P E R T Y T R U S T N Y S E : F C P T I NV E S TOR P RE S E NTATI ON | JUNE 2017 w w w. fcpt. com
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Measures
FO meaning but “intend(s),” Forward-looking any which will looking are K GAAP GAAP. comparable in filed the included not obligation R occur investor W any financial with limited These statements. of AR as statement the GAAP “plan(s),” the in described. Dnon-GAAP relations to to, the federal LSecurit
Slide 3: Agenda
AGE E2 N N 0 1D7A Company Overview and Update Page 3 Key Investment Highlights Page 10 Diversification and Acquisition Strategy Page 15 Financial Update & Key Credit Strengths Page 22 3 | F C P T | J U
Slide 4: Board of Directors and Management
S EAmstar investor Granite of Residential Brat UCLANGeneral ISchool O REIT, inAdvisers, Rnet Communities MCounsel an of lease ANLaw investment AG retail served Former 4E| FServed M real Con Egrade PPartner estate Amstar’s NTT as | JT single-tenant, aU Member ESenior inN AM Executive the E 2William r
Slide 5: FCPT Overview
O V properties, 499 Breeze, Steak positive flexible E‘n RFigures Seasons unsecured operating Shake, VIEW diversified as Dairy 52, O of trends, capital F Wildfish 5/31/2017. F Queen, Cfulsome structure P byTSeafood geography Denny’s, ? Total Four public to Corners market support Grille Fazoli’s, and
Slide 6: Highlights Since Spin-Off
HIGH management—$146 million restaurant equity 10-year goals, including toof unsecured Lmatch real proceeds IGH estate fund portfolio T notes Son million •Sacquisitions Diversifying three INindiversification C Q2of dispositions E 2017, acquisitions S PasIand necessary—Obtained N—O beginning strength
Slide 7: 2016/2017 YTD Acquisitions
F C 10 Term operator 10/20/2016 GA 11/15/2016 franchisees Bob PEvans (yrs) TMix C$3.5 LAnnounced 16 $5.8 Hardee’s Burger of O6.6% Corporate: corporate S 6.6% ED King 18AL AC 12 9/6/2016 Pizza and VA, &Q 1/12/2017 524-unit GA Ustrong Hut NC, I 4SKFC IL, 35-unit IMS, operator Tfranchisees (3 IN IMI O
Slide 8: 2016/2017 YTD Dispositions
F 0C1attractive (yrs) Restaurants, 2and PAnnounced 7T C L OInc. cap SE$5.2 Olive rate D D5.1% offers Garden I S P15 are O5/17/2017 FL Sconsidered? I 1TDarden I O NTotal SRestaurants, All FCPT / proceeds Wtd. Closed Avg. Inc. from 32016 $30.0 $18.5 sales / 2017 4.8% 4.8% exchanged YTD 13 12 ?10/24/20
Slide 9: Portfolio at Inception and Acquired Properties Map
NP Map C ATTand I| O JUfigures NNALEF 2updated 0O1O7T PasRofI N 5/31/2017; T W I T HExcludes I N C R six E ASowned I N GorBground R AN Dleased D I Vproperties E R S I Fthat I C comprise AT I O N the 499LongHorn PropertiesSan 44 States Antonio 20 Business, Brands 3.6mm whichsqare ft operated (298) Po
Slide 10: Key Investment Highlights
AGE E2 N N 0 1D7A Company Overview and Update Page 3 Key Investment Highlights Page 10 Diversification and Acquisition Strategy Page 15 Financial Update & Key Credit Strengths Page 22 10 | F C P T | J U
Slide 11: Portfolio Summary
H I GCoverage: Geography: Rent building Properties HQ restoration acquired U44ALstates 4.1x I Tin Predominantly YAnnual Only 2017 P O Florida Rhave Rent T F the OEscalation: (11.2%) individual Lminimum I O Summary and+1.5% leases contractual Texasof to average (11.0%) FCPT allow rent landlord fixed
Slide 12: Portfolio Diversification
PORTFO Scheduled minimum L I O D contractual I V E R S I rent F I Cfor ATthe I Ofull N Cash year of Rental 2017Revenue for the portfolio by Brand as6% of 5/31/2017. 74% 68% 14%Properties 20% 18%acquired InitialinPortfolio: 2017 haveMay rents2017: annualized. Rental Revenue 12 | F C PofT$94.4 |JUN mm
Slide 13: Lease Maturity Schedule
L E AS income 2032 2033 E matures M2034 AT Uover 2035 R Ithe 2036 T Y3.7% S2037 C next HEFigures D 10Uyears Las E of Lease 2.4% 5/31/2017. 0.5% Maturity 0.1% Note: Schedule 0.0% Excludes 0.0% (% of 0.1% renewal Rental 0.1% options. Revenue) 0.0% 0.2% 1316.3% | F 0.0% C PWeighted T0.1% | J U 0.2% Nav
Slide 14: Tenant Rent Coverage and Credit Quality
F C P2.7x 3.1x 100% FCPT expense. scheduled classifies movie T 100% as theater ’ of Fixed Sinvestment 2.7x principal P5/31/17; Peer Oproperties. 3.0x charge R Average: T N/A payments FPeer grade Ocoverage L N/A 14 data I80% tenants O | VEREIT Fon C from Cis 85% O indebtedness. Pdefined as MTCompany
Slide 15: Diversification and Acquisition Strategy
AGE E2 N N 0 1D7A Company Overview and Update Page 3 Key Investment Highlights Page 10 Diversification and Acquisition Strategy Page 15 Financial Update & Key Credit Strengths Page 22 15 | F C P T | J U
Slide 16: Business Strategy
B Ucurrent objectives service the Low recycling Sleveraged I subsector Nthrough E 1? industry SStart Sbalance Pin selective Lwith trends order ANsheet 100% AN topushing dispositions move Dwith concentration D Isubstantial portfolio V operator E R16S| Icloser consolidation FinFliquidity—Unencumbered
Slide 17: Acquisition Criteria
F Chuman creditworthy Criteria on Absolute P T AC • Acquisition rent—Lease judgement Qlease U I Sguarantors I Credit criteria Tterm—Rent I O NCriteria is•PPurchase approximately H Igrowth L(~50%): O Sassets 17 O P|Real F split Honly CYEstate PAN 50% when T |D J/Criteria U U 50% accretive NN ED betwe
Slide 18: Disciplined Underwriting Approach
C 8O9N10 7pricing about investing.wait CExpensive Total E P TUnderwriting U AL Dilutive for UN theDFCPT right Score ERW pitch…and Rate) “Ted RI TLong Williams I N itGTerm will STdescribed come…it’s Cap R I KWACC E in ZO his the in Nbook, Strike key E Valuation toThe (Going investing.” Science toZone
Slide 19: Large Restaurant Industry Opportunity
V AS Varied Exports Mex- $12bnTFCPT AD Retail DMex- ~RSales ~ ETarget S Sea- -$0.5T S ABHamburger ? ?L?$4.85T E? ?M?AR ? Food Pizza ?K? ~EServices ~Coffee T?W? ?I Source: TChicken (13.6% H I N Census ROther ofE Retail S TAsian Bureau, AU Sales, RSteak ANBureau $620bn) TItalian I NofDFamily Economic
Slide 20: Franchisee Consolidation and Growth
R AP 2012 18,408 2011 Times, I August D 17,887 F2013 R AN 16,715 2016. 2014 C H20 2015 16,000 IS| FEC The EP 12,000 CTfranchisee O| JNU8,000 SNOELindustry 24,000 I 0D1AT 70 I2009 isOhighly N 2010 W Ifragmented, T2011 HIN 2012 R Ebut 2013 S Tundergoing AU 2014 R 2015 AN Tconsolidation Average I N D U
Slide 21: Acquisition Target Range
T H Ovolumes Acquisition sales UGH Casual Tprovide F UTarget LBrent RRange AN support, D $4,000 SE while L EQuick keeping C T I Service ON rent AIat$3,000 Mreplaceable E D AT $2,000 P Rlevels $1,000 O T EinC$0 case TFCPT INof G vacancy pursues C AS HSource: properties FLOW Wall Average within Street
Slide 22: Financial Update and Key Credit Strengths
AGE E2 N N 0 1D7A Company Overview and Update Page 3 Key Investment Highlights Page 10 Diversification and Acquisition Strategy Page 15 Financial Update & Key Credit Strengths Page 22 22 | F C P T | J U
Slide 23: Summary Credit Metrics and Capitalization
SUM Debt: current run-rate)2 Multiple 4.6x including annualized. FCPT Bank M run-rate)2 19.2x AR closed 5.0x ADC 4. term YPeers Dividend Net CQ2 debt O$95 APNNN debt are 2017 $400 IEBITDA Tcalculated to Yield AL STOR transactions EBITDA Revolving I Z3.9% (GAAP, SRC ATasI(GAAP, GAAP Q1 O VER credit l
Slide 24: Debt Maturity Schedule
F C$0 $0 Revolver November PT$0D$0 Capacity E2019, $0 B T$0M but $0 Drawn AThas 2017 Utwo RRevolver 2018 I 6T month Y2019 S CUnsecured H extension 2020 E D2021 ULTerm options. E2022 Weighted Loan 2023 All$75 numbers 2024 average $502025 $0$400 are $0 2026 in $0 Unsecured millions. $0 2027 $0 Pro $02
Slide 25: Key Credit Strengths
F C aPFitch geographically acquisition Annualized from Conservative institutional and strong T K Ein platform rent shareholder Y track Financial dividend January Iacross N escalators record Vwith E2017 44 payout SPolicies support All T states $146 of MFCPT’s members ~1.5% EN ratio million in Financi
Slide 26: Four Corners Property Trust NYSE: FCPT
FOURCORNERSPROPERTYTRUSTNYSE:FCPT
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