Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Investor Presentation (July 2022)
34 slides from Four Corners Property Trust's investor presentation, Jul 26, 2022
Slide 1: Investor Presentation | July 2022
1 | FCPT | JULY 2022 www.fcpt .comINVESTOR PRESENTATION | JULY 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
Slide 2: Forward Looking Statements and Disclaimers
2 | FCPT | JULY 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 sta
Slide 3: Agenda
3 | FCPT | JULY 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 4: FCPT Highlights
4 | FCPT | JULY 2022 FCPT HIGHLIGHTS 4 | FCPT | OCTOBER 2019 Analytical, Disciplined Investment Philosophy • Use of consistent, data-driven scorecard to objectively rate every property • Investment committee memo and separate public announcement for every acquisition High-Quality Portfolio • Recentl
Slide 5: 2022 Operating Highlights
5 | FCPT | JULY 2022 2022 OPERATING HIGHLIGHTS 5 | FCPT | OCTOBER 2019 ____________________ Figures as of 6/30/2022, unless otherwise noted 1. Acquisitions through June 30, 2022. Q2 2022 initial cash yield reflects near term rent increases and rent credits given at closing. The year-to-date initial
Slide 6: 2022 Year-to-Date Acquisition Summary
6 | FCPT | JULY 2022 2022 YEAR-TO-DATE ACQUIS IT ION SUMMARY FCPT has closed $96 million of investments year-to-date through June 30, 2022. The subsector split by acquisition volume was 25% restaurant, 28% medical retail, 37% auto service and 11% other We continue to benefit from increased optio
Slide 7: Acquisition Growth
7 | FCPT | JULY 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 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 ACQUIS IT ION GROWTH Annual Cash Bas
Slide 8: Agenda
8 | FCPT | JULY 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 9: FCPT's Strong Performance During the Pandemic
9 | FCPT | JULY 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% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 99.6% 99.6% 99.6% 99.6% 99.7% 99.7% 99.8% 99.9% 99.9% 99.9% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q
Slide 10: Portfolio Geographic Distribution and Sun Belt Growth
10 | FCPT | JULY 2022 ___________________ Figures as of 6/30/2022 1. Annual Cash Base Rent (ABR) as defined on page 31 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.S. Census Bureau estimated July 2020 through June 2021 popula
Slide 11: Portfolio Characteristics: Low Rents and High Coverage
11 | FCPT | JULY 2022 Building and Ground Lease: 34% 417 leases Darden Spin Portfolio: 55% 410 leases Ground Lease: 11% 150 leases ___________________ 1. See glossary on page 31 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 75% of portfoli
Slide 12: FCPT Evolution Since Spin-Off: Tenant Diversification
12 | FCPT | JULY 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 6/30/2022, as defined on page 31 2. Other Darden represents Bahama B
Slide 13: Agenda
13 | FCPT | JULY 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 14: Food Inflation
14 | FCPT | JULY 2022 • Inflation for food at home/grocery has outpaced food away from home/restaurant inflation for nine consecutive months, with the gap between the two categories widening to 4.6% for June ____________________ Sources: R.W. Baird & Co. Equity Research report 7/13/2022, Bureau of L
Slide 15: Restaurant Sales Trends by Sector
15 | FCPT | JULY 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 Sur
Slide 16: Agenda
16 | FCPT | JULY 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 17: Conservative Financial Policies
17 | FCPT | JULY 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 ratio i
Slide 18: Investment Grade Ratings and Ratings-Based Pricing
18 | FCPT | JULY 2022 ___________________ 1. Assumes 35%-40% leverage-based spread rate 2. Includes facility fee rate. Annual savings assumes full $250 million revolver draw 3. For the leverage-based grid, extended term loans from June 2021 A-1 and A-2 rate is 1.30%, while non-extended term loan A-2
Slide 19: Company Momentum Since Inception
19 | FCPT | JULY 2022 COM PAN Y MOM ENTUM SINCE INCEPTION Team Members 4 +28 32 Annual Base Rent1 $94.4 million +$86.8 million / +92% $181.2 million Properties 418 +542 / +130% 960 Brands 5 +111 116 % Darden2 100% -43% 57% Weighted Average Lease Term 15 years - 6.2 years 8.8 years Equity Market Cap
Slide 20: FCPT Debt Maturity Schedule
20 | FCPT | JULY 2022 FCPT DEBT MATURITY SCHEDULE ___________________ Figures as of 6/30/2022 1. The revolving credit facility expires on November 9, 2025 subject to FCPT’s availability to extend the term for one additional six-month period to May 9, 2026 Current Debt Maturity Schedule ($ millions)
Slide 21: Summary Capitalization and Financials
21 | FCPT | JULY 2022 ___________________ Figures represent FCPT financials as of and for three months ended 6/30/2022 1. Represents Q2 2022 annualized results. See page 32 for reconciliation of net income to adjusted EBITDAre and page 31 for non-GAAP definitions 2. Figure represents Annual Cash Bas
Slide 22: Agenda
22 | FCPT | JULY 2022 AGENDA Restaurant Industry Update Page 13 Company Overview Page 3 Appendix and Selected Supplemental Slides Page 22 High Quality Portfolio Page 8 Conservative Financial Position Page 16
Slide 23: Maintaining Acquisition Philosophy and Criteria
23 | FCPT | JULY 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 addin
Slide 24: Acquisitions by Year
24 | FCPT | JULY 2022 ACQUIS IT IONS BY YEAR 24 | FCPT | OCTOBER 2019 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 2016 2017 2018 5
Slide 25: Non-Restaurant: Auto Service Industry
25 | FCPT | JULY 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 Auto
Slide 26: Non-Restaurant: Medical Retail Industry
26 | FCPT | JULY 2022 Representative Acquired Brands NON-RESTAURANT: MEDICAL RETAIL INDUSTRY Portfolio includes 35 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 resistan
Slide 27: Lease Maturity Schedule
27 | FCPT | JULY 2022 0.1% 1.1% 2.4% 2.1% 2.3% 13.5% 12.8% 11.0%11.1% 10.4% 6.6% 13.5% 1.6% 1.7% 2.9% 1.1% 0.2% 0.4% 1.6% 1.0% 0.1% 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 28: Brand Diversification
28 | FCPT | JULY 2022 BRAND DIVERSIF ICATION ___________________ 1. Annual Cash Base Rent (ABR) as of 6/30/2022 as defined on page 31 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: 63%
Slide 29: Sustainability Framework
29 | FCPT | JULY 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 respons
Slide 30: 2022 Year to Date Acquisitions
30 | FCPT | JULY 2022 2022 YEAR TO DATE ACQUIS IT IONS 1. Totals indicate weighted average 2. Q2 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 June 30 is 6.1% for the second quarter and 6.4% year to date
Slide 31: Glossary and Non-GAAP Definitions
31 | FCPT | JULY 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 of o
Slide 32: Reconciliation of Net Income to Adjusted EBITDAre
32 | FCPT | JULY 2022 RECONCIL IATION OF NET INCOME TO ADJUSTED EBITDAR E ____________________ 1. See glossary on page 31 for non-GAAP definitions ($000s, except shares and per share data) Unaudited 2022 2021 2022 2021 Net Income 28,170$ 20,180$ 50,456$ 40,802$ Adjustments: Interest expense 9,031 8,
Slide 33: FFO & AFFO Reconciliation
33 | FCPT | JULY 2022 FFO & AFFO RECONCIL IATION ___________________________ 1. Amount represents non-cash deferred income tax expense recognized in the second quarter of 2022 for income tax expense at the Kerrow Restaurant Business 2. Assumes the issuance of common shares for OP units held by non-c
Slide 34: Investor Presentation | July 2022
34 | FCPT | JULY 2022 www.fcpt .comINVESTOR PRESENTATION | JULY 2022 FOUR CORNERS PROPERTY TRUST N YS E : F C P T
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