Four Corners Property Trust, Inc. · NYSE:FCPT
Four Corners Property Trust — Q1 2025 Earnings Presentation
43 slides from Four Corners Property Trust's earnings presentation, May 1, 2025
Slide 1: Investor Presentation Q1 2025
Four Corners Property Trust NYSE: FCPT INVESTOR PRESENTATION Q1 2025
Slide 2: Forward Looking Statements and Disclaimers
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 statements of fact and
Slide 3: Recent Highlights at FCPT
RECENT HIGHLIGHTS AT FCPT Steadied investment Executed acquisitions Opportunistically raised capital pace in late 2024 without compromises for 2025 and beyond Record acquisition volume in Achieved favorable pricing while Remained active on the ATM Q4 ’24 and Q1 ’25 avoiding drifting up the risk • Ra
Slide 4: FCPT at 10 Years: From Spin-off to Seasoned Net Lease Investor
FCPT AT 10 YEARS: FROM SPIN-OFF TO SEASONED NET LEASE INVESTOR ENTERPRISE VALUE ($ million) 2015 TODAY $4,065 Annual base rent 1 $94 million $244 million + $150 million (2.6x) $1,193 3.1x Enterprise value $1.3 billion $4.1 billion + $2.8 billion (3.1x) $1,324 $2,872 $294 Net Debt Properties 418 1,22
Slide 5: Contents
CONTENTS 1 COMPANY OVERVIEW PG 5 2 HIGH QUALITY PORTFOLIO PG 12 3 CONSERVATIVE FINANCIAL POSITION PG 22 4 APPENDIX: ASSET SELECTION & PRIMARY SECTORS PG 25 5 APPENDIX: OTHER PG 37 APRIL 2025 5
Slide 6: FCPT at a Glance
FCPT AT A GLANCE1 1,236 leases 6,554 SF average asset size $0.44 AFFO per share (Q1)4 162 brands 30,074 average daily vehicle count $265 million / 7.1% cap rate of acquisitions in 2024 7.3-year average lease term $66,613 median household income $57 million / 6.7% cap rate 59,163 average 3-mile popul
Slide 7: FCPT's Differentiated Approach Within Net Lease
FCPT’S DIFFERENTIATED APPROACH WITHIN NET LEASE 1 Superior Capital Raising & Allocation 2 Granular Portfolio Construction • Modulate acquisitions if cost of capital • Portfolio led by Darden, a premier weakens investment grade tenant • Minimize fees and discounts on capital • Analytical underwriting
Slide 8: Consistent Annual Acquisition Growth
CONSISTENT ANNUAL ACQUISITION GROWTH FCPT has consistently delivered growth and diversification through new acquisitions. We focus on credit-worthy tenants, high quality real estate and efficient execution PROPERTY COUNT 1198 1226 1111 1023 919 799 699 610 475 515 418 +57 +40 +95 +89 +100 +120 +104
Slide 9: FCPT at a Glance: Portfolio Breakdown
FCPT AT A GLANCE 1,236 Leases across 162 Brands Annual Base Rent of $243.9 million1 • 34% Olive Garden (vs. 74% at inception) PORTFOLIO BREAKDOWN • 10% LongHorn (vs. 20% at inception) • 23% Non-Restaurant Exposure (vs. 0% at inception) 314 leases 34% 116 leases 10% 10% 82 leases 7% 7% 28 leases 2% 3
Slide 10: Geographically Diverse Portfolio
FCPT AT A GLANCE WA GEOGRAPHICALLY MT ND ME DIVERSE PORTFOLIO OR ID MN VT NH SD WI NY MA WY MI RI • Lower income taxes and growing IA PA CT economies has accelerated a population NV NE IN OH NJ UT IL DE shift toward low-cost of living states in CA CO WV MD the southeast KS MO KY VA NC TN • FCPT’s po
Slide 11: Lease Maturity Schedule
LEASE MATURITY SCHEDULE 7.3 years weighted average lease term 99.4% %ANNUALIZED BASE RENT1 Darden Spin occupied2 as of 3/31/2025 Other 12.3% < 2.9% 11.5% 11.4% 10.9% 10.5% 4.3% 8.8% of rental income matures prior to 2027 7.3% 6.5% 7.6% 6.8% 6.6% 8.0% FCPT has had very high 6.0% 6.0% renewal rates on
Slide 12: Contents
CONTENTS 1 COMPANY OVERVIEW PG 5 2 HIGH QUALITY PORTFOLIO PG 12 3 CONSERVATIVE FINANCIAL POSITION PG 22 4 APPENDIX: ASSET SELECTION & PRIMARY SECTORS PG 25 5 APPENDIX: OTHER PG 37 APRIL 2025 12
Slide 13: FCPT: The Calm Port in the Volatility Storm
FCPT: THE CALM PORT IN THE VOLATILITY STORM FCPT has over $615 million of liquidity inclusive of cash, $254 million of unsettled equity forwards and a fully undrawn $350 million revolver FCPT has no near-term debt maturities and 4.4x net leverage is at its lowest level since 2018 FCPT employs
Slide 14: Unique and Highly Secure Net Lease
UNIQUE AND HIGHLY Ground Leased 77% structurally SECURE NET LEASE $149k average rent superior to regular way net lease 11% • Our portfolio is primarily outparcel properties in high High density retail corridors Quality • ~77% of rent featuring unique benefits structurally Ground & superior to regula
Slide 15: Low Basis Portfolio Limits Downside of Negative Credit Events
FCPT’S LOW BASIS PORTFOLIO LIMITS DOWNSIDE OF NEGATIVE CREDIT EVENTS 1 Average Building Size (SF) Average Basis per Property Acquired (as of 12/31/2024) ($ million, 2024) $10.2 Industry Average; 18,442 20,591 18,355 $7.5 Industry Average (retail only); 12,447 $7.1 14,218 Industry Average; $5.1 10,64
Slide 16: FCPT's Strong Portfolio Performance
FCPT’S STRONG PORTFOLIO PERFORMANCE FCPT has one of the highest-quality and consistent portfolios in the net lease sector. We have established a strong track record over time (even through the COVID-19 pandemic) RENT COLLECTIONS 99.5% 98.8% 99.6% 99.6% 99.7% 99.8% 99.8% 99.8% 99.7% 99.9% 99.8% 99.7%
Slide 17: FCPT Top Brand Exposure to Macro Uncertainty
FCPT TOP BRAND EXPOSURE TO MACRO UNCERTAINTY Commentary from around the industry1: Darden CFO Rajesh Vennam: “Today, as we look at our cost basket, about 80% is actually domestic- sourced… there's really only 20% that's imported. Of that, there is a portion that we could switch easily to domestic. I
Slide 18: Diversification with Scaled, Creditworthy National Brands
DIVERSIFICATION WITH SCALED, CREDITWORTHY NATIONAL BRANDS TOP 35 FCPT FCPT METRICS BRAND METRICS2 FCPT Total Sales Publicly PORTFOLIO BRANDS 1 Rank Brand Name Stores % of ABR1 Stores ($mm) Traded? 1 Olive Garden 314 33.7% 925 $5,089 DRI 1 2 3 4 5 2 Longhorn Steakhouse 116 9.5% 580 $2,917 DRI 3 Chili
Slide 19: Highly Selective Approach to Net Lease
HIGHLY SELECTIVE APPROACH TO NET LEASE While we underwrite properties in these sectors and may acquire stores in these sectors in the future, they are not in our current target base and would need to meet our high thresholds to be considered in the future FCPT HAS AVOIDED: • Pharmacies: NO EXPOSURE
Slide 20: Darden's Outperformance in the Last Major Recession
DARDEN’S OUTPERFORMANCE IN THE LAST MAJOR RECESSION • While casual dining is viewed as susceptible to consumer weakness during a recession, it’s important to note that during recessions there have been winners and losers within casual dining • During the 2008 financial crisis, Darden’s core brands t
Slide 21: Darden Credit Default Swaps Remain Historically Inexpensive
DARDEN CREDIT DEFAULT SWAPS REMAIN HISTORICALLY INEXPENSIVE Darden Senior CDS Curve (5 year) 400 350 Current ask price: 51 bps 300 High on 3/20/20: 360 bps Average: 65 bps Low on 2/12/20: 27 bps 250 Basis Points 200 Very tight pricing spreads for 150 Darden to have a credit event 100 50 51 0 Jan-19
Slide 22: Contents
CONTENTS 1 COMPANY OVERVIEW PG 5 2 HIGH QUALITY PORTFOLIO PG 12 3 CONSERVATIVE FINANCIAL POSITION PG 22 4 APPENDIX: ASSET SELECTION & PRIMARY SECTORS PG 25 5 APPENDIX: OTHER PG 37 APRIL 2025 22
Slide 23: Conservative Financial Policies
CONSERVATIVE FCPT maintains a well-laddered debt maturity and 100% FINANCIAL POLICIES unencumbered assets to provide financial flexibility • Weighted average debt maturity 3.9 years • No near-term debt maturities DEBT MATURITY SCHEDULE $ MILLIONS Conservative leverage • Committed to maintaining cons
Slide 24: FCPT Has Ratcheted Down Leverage to Seven Year Lows
FCPT HAS RATCHETED DOWN LEVERAGE TO SEVEN YEAR LOWS • FCPT has a stated leverage target of 5.5x-6.0x, but has been below or in the lower range of its target since inception • Discipline around our leverage is embedded into company culture and our approach to funding growth • FCPT has demonstrated a
Slide 25: Contents
CONTENTS 1 COMPANY OVERVIEW PG 5 2 HIGH QUALITY PORTFOLIO PG 12 3 CONSERVATIVE FINANCIAL POSITION PG 22 4 APPENDIX: ASSET SELECTION & PRIMARY SECTORS PG 25 5 APPENDIX: OTHER PG 37 APRIL 2025 25
Slide 26: FCPT's Investment Filters
FCPT’S INVESTMENT FILTERS Low Rent & Investment • Our portfolio is principally leased to Basis restaurants, auto service and medical retail tenants • The intentional focus on these subsectors reflect a multi-tiered filter that favors fungible, credit- worthy net lease tenants with low rent • There a
Slide 27: Acquisition and Underwriting Framework
ACQUISITION AND UNDERWRITING FRAMEWORK CREDIT CRITERIA REAL ESTATE CRITERIA ~50% ~50% • Guarantor credit and health • Location • Brand durability • Retail corridor strength & demographics • Store performance • Access / visibility • Lease term and structure • Absolute and relative rent • Pad site and
Slide 28: Restaurants
RESTAURANTS • FCPT seeks to acquire nationally recognized branded restaurants from premier lease guarantors located within the strongest retail corridors • FCPT has increased its restaurant diversification since inception by targeting a variety of meal price-points, cuisine types, and geographies •
Slide 29: Restaurant Industry Targets
RESTAURANT INDUSTRY TARGETS FCPT prioritizes tenant credit, fungible real estate, and concept durability in its restaurant investments • FCPT pursues mature, national brands FCPT’S CURRENT FOCUS FCPT GENERALLY AVOIDS1 with significant scale in terms of units, Casual Dining In-Line Real Estate revenu
Slide 30: Real Estate Characteristics: Casual Dining & Quick Service
FCPT REAL ESTATE CHARACTERISTICS: CASUAL DINING & QUICK SERVICE Olive Garden HOUSTON, TX • Adjacent to Willowbrook Mall and several other shopping centers, with ample parking • Excellent visibility and prominent Farm to Market 1960 Road – 34,500 Vehicles per Day retail position along frontage of Far
Slide 31: Auto Industry
AUTO INDUSTRY • 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 bases • Focus is on pro
Slide 32: Auto Service Industry Targets
AUTO SERVICE INDUSTRY TARGETS FCPT targets categories for the long-term with high renewal probabilities • FCPT targets categories in the Auto FCPT’S CURRENT FOCUS FCPT GENERALLY AVOIDS1 Industry that are not tied to Collision Service Centers High Basis / Franchisee traditional, gas-powered vehicles
Slide 33: Real Estate Characteristics: Automotive Service
FCPT REAL ESTATE CHARACTERISTICS: AUTOMOTIVE SERVICE Discount Tire Coralville, IA • Outparcel to Coral Ridge Mall, a Brookfield Properties center Coral Ridge Ave – 28,000 Vehicles per Day • Hard corner and mall ring road provide plenty of vehicle traffic, access, and parking • Grouped with several o
Slide 34: Medical Retail
MEDICAL RETAIL • 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 recession resistant given its service-based nature, large customer base and
Slide 35: Healthcare Industry Targets
HEALTHCARE INDUSTRY TARGETS Healthcare delivery occurs across a spectrum of real estate and operator cost structures • FCPT target operators provide services FCPT’S CURRENT FOCUS FCPT GENERALLY AVOIDS1 that require in-person interaction, while (Pharmacy & High Accuity) having lighter asset needs and
Slide 36: Real Estate Characteristics: Medical Retail
FCPT REAL ESTATE CHARACTERISTICS: MEDICAL RETAIL To Walmart, Meijer WellNow Chicago, IL • Adjacent to Walmart, Meijer, Whole Foods, Macy’s, and other S Western Ave – 31,000 Vehicles per Day major anchors • Signalized hard corner provides plenty of access and exposure to vehicle traffic W 95th Street
Slide 37: Contents
CONTENTS 1 COMPANY OVERVIEW PG 5 2 HIGH QUALITY PORTFOLIO PG 12 3 CONSERVATIVE FINANCIAL POSITION PG 22 4 APPENDIX: ASSET SELECTION & PRIMARY SECTORS PG 25 5 APPENDIX: OTHER PG 37 APRIL 2025 37
Slide 38: Sustainability Framework
SUSTAINABILITY FRAMEWORK 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 of environmental sustainability, social responsibility, employee well-being, and go
Slide 39: Glossary and Non-GAAP Definitions
GLOSSARY AND NON-GAAP DEFINITIONS NON-GAAP DEFINITIONS AND CAUTIONARY NOTE REGARDING Tenant EBITDAR is calculated as EBITDA plus rental expense. EBITDAR is Adjusted Funds From Operations “AFFO” is a non-GAAP FORWARD-LOOKING STATEMENTS: derived from the most recent data provided by tenants that discl
Slide 40: Reconciliation Schedules
RECONCILIATION SCHEDULES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDARE (In thousands) Three Months Ended March 31, Unaudited 2025 2024 Net Income $ 26,186 $ 24,074 Adjustments: Interest expense 12,731 12,281 Income tax expense 63 27 Depreciation and amortization 14,429 13,467 EBITDA1 53,409 49,8
Slide 41: FFO & AFFO Reconciliation
FFO & AFFO RECONCILIATION ($000s, except shares and per share data) Three Months Ended March 31, Unaudited 2025 2024 Net income $ 26,186 $ 24,074 Depreciation and amortization 14,392 13,430 Realized gain on sales of real estate - - FFO (as defined by NAREIT) $ 40,578 $ 37,504 Straight-line rental re
Slide 42: Footnotes
FOOTNOTES PAGE 4 FCPT AT 10 YEARS: PAGE 19 HIGHLY SELECTIVE APPROACH TO NET LEASE 1. Annual Cash Base Rent (ABR) as defined in glossary Note: All data as of 3/31/2025 1. Annual cash base rent (ABR) as defined in glossary; FCPT owns 1 dollar store site leased to Dollar General PAGE 6 FCPT AT A GLANCE
Slide 43: Thank You
Four Corners Property Trust NYSE: FCPT THANK YOU INVESTOR PRESENTATION Q1 2025
Four Corners Property Trust — Q1 2025 Earnings Presentation on 6ix