Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (November 2022)
33 slides from Four Corners Property Trust's investor presentation, Nov 1, 2022
Slide 1: Investor Presentation | November 2022
1 | FCPT | NOVEMBER 2022 www.fcpt .comINVESTOR PRESENTATION | NOVEMBER 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
Slide 2: Forward Looking Statements and Disclaimers
2 | FCPT | NOVEMBER 2022 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 | NOVEMBER 2022 AGENDA Restaurant Industry Update Page 14 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 9 Conservative Financial Position Page 17
Slide 4: FCPT Overview
4 | FCPT | NOVEMBER 2022 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: Q3 2022 Highlights
5 | FCPT | NOVEMBER 2022 Q3 2022 HIGHLIGHTS 5 | FCPT | OCTOBER 2019 ____________________ Figures as of 9/30/2022, unless otherwise noted 1. Acquisitions through September 30, 2022. 2022 year to date initial cash yield reflects near term rent increases and rent credits given at closing. The year-to-d
Slide 6: 2022 Year-to-Date Acquisition Summary
6 | FCPT | NOVEMBER 2022 2022 YEAR-TO-DATE ACQUIS IT ION SUMMARY FCPT has closed $166 million of investments year-to-date through September 30, 2022. The subsector split by acquisition volume was 36% restaurant, 31% auto service, 24% medical retail and 9% other We continue to benefit from increa
Slide 7: Acquisition Growth
7 | FCPT | NOVEMBER 2022 418 418 418 434 475 484 506 508 515 527 535 591 610 621 642 650 699 722 733 751 799 810 833 886 919 937 960 982 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 ACQUIS IT ION GROWTH An
Slide 8: Credit Facility Amendment and Debt Maturity Schedule
8 | FCPT | NOVEMBER 2022 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 siz
Slide 9: Agenda
9 | FCPT | NOVEMBER 2022 AGENDA Restaurant Industry Update Page 14 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 9 Conservative Financial Position Page 17
Slide 10: FCPT's Strong Performance During the Pandemic
10 | FCPT | NOVEMBER 2022 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% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 99.6% 99.6% 99.6% 99.6% 99.7% 99.7% 99.8% 99.9% 99.9% 99.9% 99.9% Q1 2020
Slide 11: Portfolio Geographic Diversification
11 | FCPT | NOVEMBER 2022 ___________________ Figures as of 9/30/2022 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 2021 Annualized Base Rent1 (%) ≥10.0% 5
Slide 12: Portfolio Lease Structure and Rent Coverage
12 | FCPT | NOVEMBER 2022 Building and Ground Lease: 35% 426 leases Darden Spin Portfolio: 54% 410 leases Ground Lease: 11% 162 leases ___________________ 1. See glossary on page 30 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 75% of port
Slide 13: FCPT Evolution Since Spin-Off: Tenant Diversification
13 | FCPT | NOVEMBER 2022 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 9/30/2022, as defined on page 30 2. Other Darden represents Baha
Slide 14: Agenda
14 | FCPT | NOVEMBER 2022 AGENDA Restaurant Industry Update Page 14 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 9 Conservative Financial Position Page 17
Slide 15: Food Inflation
15 | FCPT | NOVEMBER 2022 • Inflation for food at home/grocery has outpaced food away from home/restaurant inflation for 12 consecutive months, with the gap between the two categories widening to 4.9% for September ____________________ Sources: R.W. Baird & Co. Equity Research report 10/13/2022, Bur
Slide 16: Restaurant Sales Trends by Sector
16 | FCPT | NOVEMBER 2022 • 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 17: Agenda
17 | FCPT | NOVEMBER 2022 AGENDA Restaurant Industry Update Page 14 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 9 Conservative Financial Position Page 17
Slide 18: Conservative Financial Policies
18 | FCPT | NOVEMBER 2022 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 19: Company Momentum Since Inception
19 | FCPT | NOVEMBER 2022 COM PAN Y MOM ENTUM SINCE INCEPTION Team Members 4 +30 34 Annual Base Rent1 $94.4 million +$91.1 million / +96% $185.5 million Properties 418 +564 / +135% 982 Brands 5 +116 121 % Darden2 100% -44% 56% Weighted Average Lease Term 15 years - 6.4 years 8.6 years Equity Market
Slide 20: Summary Capitalization and Financials
20 | FCPT | NOVEMBER 2022 ___________________ Figures represent FCPT financials as of and for three months ended 9/30/2022 1. Represents Q3 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 Cash
Slide 21: Agenda
21 | FCPT | NOVEMBER 2022 AGENDA Restaurant Industry Update Page 14 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 21 High Quality Portfolio Page 9 Conservative Financial Position Page 17
Slide 22: Maintaining Acquisition Philosophy and Criteria
22 | FCPT | NOVEMBER 2022 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 | NOVEMBER 2022 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 and 2022 YTD initial cash yield refle
Slide 24: Non-Restaurant: Auto Service Industry
24 | FCPT | NOVEMBER 2022 Auto service is a resilient industry as it is both e-commerce and recession resistant. It has a service component and consumer cost-savings angle to repair instead of purchasing new vehicles Most auto service tenants were deemed “essential” businesses during COVID-19
Slide 25: Non-Restaurant: Medical Retail Industry
25 | FCPT | NOVEMBER 2022 Representative Acquired Brands NON-RESTAURANT: MEDICAL RETAIL INDUSTRY Portfolio includes 37 leases (3% 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 | NOVEMBER 2022 0.0% 0.8% 2.4% 2.2% 2.6% 13.7% 12.7% 10.7%10.8%10.5% 6.5% 13.4% 1.5% 1.7% 2.9% 1.4% 0.1% 0.4% 1.6% 0.9% 0.5% 0.0% 2.5% 2022 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 ________________
Slide 27: Brand Diversification
27 | FCPT | NOVEMBER 2022 FCPT Portfolio Brands Rank Brand Name Number Square Feet (000s) % of ABR(1) Rank Brand Name Number Square Feet (000s) % of ABR(1) 1 Olive Garden 312 2,654 41.9% 16 Starbucks 13 29 0.7% 2 Longhorn Steakhouse 115 645 11.9% 17 NAPA Auto Parts 13 92 0.7% 3 Chili's 80 438 8.8% 1
Slide 28: Sustainability Framework
28 | FCPT | NOVEMBER 2022 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 Year to Date Acquisitions
29 | FCPT | NOVEMBER 2022 2022 YEAR TO DATE 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 September 30 is 6.1% for the second quarter, 6.2%
Slide 30: Glossary and Non-GAAP Definitions
30 | FCPT | NOVEMBER 2022 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 | NOVEMBER 2022 RECONCIL IATION OF NET INCOME TO ADJUSTED EBITDAR E _________________________ 1. See glossary on page 30 for non-GAAP definitions ($000s, except shares and per share data) Unaudited 2022 2021 2022 2021 Net Income 24,552$ 21,208$ 75,008$ 62,010$ Adjustments: Interest expense
Slide 32: FFO & AFFO Reconciliation
32 | FCPT | NOVEMBER 2022 FFO & AFFO RECONCIL IATION ___________________________ 1. Amount represents non-cash deferred income tax benefit recognized in the third quarter and nine months ended September 30, 2022 for income tax benefit at the Kerrow Restaurant Business 2. Assumes the issuance of comm
Slide 33: Four Corners Property Trust
33 | FCPT | NOVEMBER 2022 www.fcpt .comINVESTOR PRESENTATION | NOVEMBER 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
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