Revenue Growth - Total revenues for the year ended December 31, 2025, increased to $294.1 million, up from $268.1 million in 2024, representing a growth of 9.7%[197] - Rental revenue rose by $25.5 million to $262.6 million in 2025, attributed to a full year of revenue from 87 properties acquired in 2024 and the acquisition of 105 properties in 2025[200] - Restaurant revenues increased by approximately $0.5 million to $31.5 million in 2025, primarily due to higher net pricing despite reduced foot traffic[211] - For the year ended December 31, 2025, the company reported a net income of $112.5 million, an increase of 11.9% compared to $100.6 million in 2024[250] - Funds from Operations (FFO) for 2025 were $172.7 million, up 11.4% from $155.0 million in 2024, with FFO per diluted share at $1.68[250] - Adjusted Funds from Operations (AFFO) reached $183.4 million in 2025, reflecting a 12.7% increase from $162.8 million in 2024, with AFFO per diluted share at $1.78[250] Property and Lease Information - The lease portfolio as of December 31, 2025, included 1,303 properties with a 99.6% occupancy rate and an average remaining lease term of 6.9 years[195] - The average annual rent escalation for the lease portfolio is projected at 1.5% through December 31, 2030[195] - Rental revenue is recognized on a straight-line basis, resulting in deferred rent receivables during the first half of lease terms[225] - Lease intangibles are amortized over the remaining initial term of the related lease, impacting rental revenue recognition[219] - The company assesses the collectability of lease receivables based on factors such as tenant financial strength and current economic conditions[227] Expenses and Financial Obligations - General and administrative expenses increased by $3.1 million to $26.8 million in 2025, primarily due to higher personnel costs and professional fees[202] - Depreciation and amortization expenses rose by approximately $5.9 million to $60.4 million in 2025, driven by the acquisition of new properties[203] - Interest expense increased by approximately $2.6 million to $51.9 million in 2025, mainly due to a net increase in term loans[207] Financing and Debt Management - As of December 31, 2025, the company had $12.1 million in cash and cash equivalents and $350 million of borrowing capacity under its revolving credit facility[230] - The company's total debt as of December 31, 2025, was $590 million in non-amortizing term loans and $625 million in senior unsecured fixed rate notes[231] - The weighted average interest rate on term loans was 4.00% as of December 31, 2025, compared to 3.84% in the previous year[235] - The company entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement, allowing borrowings up to $940 million, including a $350 million revolving credit facility[232] - The company has interest rate swaps totaling $25 million to $50 million with fixed rates ranging from 1.48% to 4.42% to hedge against interest rate variability[237] - The company has entered into interest rate swaps that effectively fix $560 million of its variable-rate obligations through November 2027, mitigating interest rate risk[258] - The company plans to fund acquisitions and capital expenditures primarily through borrowings under a $350 million revolving credit facility and equity securities[240] - The company expects to meet long-term capital needs through issuing debt or equity securities, with a focus on property acquisitions and scheduled debt maturities[246] Real Estate Transactions - The company engaged in real estate transactions totaling $325.5 million in 2025, acquiring properties across 35 brands[193] - The company executed forward sale agreements for 6,108,008 shares at an average sales price of $28.27, and physically settled agreements for 8,199,285 shares at an average price of $27.95, generating net proceeds of $225.2 million[244] - As of December 31, 2025, the company had $500 million available for issuance under its ATM program, which allows for equity financing through the sale of common stock[245] Risk Management - The company has not had significant early terminations of leases, which could lead to impairment losses[219] - The company’s exposure to rising property operating costs due to inflation is mitigated as properties are generally leased under net leases, where tenants are responsible for operating costs[248] - The company has the option to extend the maturity date of its revolving credit facility and term loans, subject to certain fees[233] - As of December 31, 2025, the company had total senior unsecured fixed rate notes amounting to $625 million, with interest rates ranging from 2.74% to 6.44%[239]

Financial Data and Key Metrics Changes - The company reported Q4 AFFO per share of $0.45, with full year AFFO at $1.78 per share, representing a 2.9% growth over 2024 [22] - Q4 cash rental income was $67.5 million, reflecting an 11.1% growth compared to the previous year [23] - Annualized cash-based rent at quarter end was $264.2 million, with a weighted average five-year annual cash rent escalator of 1.5% [23] Business Line Data and Key Metrics Changes - In Q4, the company acquired 30 properties for $95 million at a blended cap rate of 7%, marking a 20 basis point expansion over the previous quarter [12] - Total investment volume for 2025 increased by 20% from 2024, with 53 unique transactions completed [13] - The company maintained a portfolio occupancy rate of 99.6%, with 95% of leases expiring in 2025 remaining occupied [24] Market Data and Key Metrics Changes - The company sidestepped major tenant credit issues, reporting zero bad debt expense in 2020 and 2025 [6] - Rent coverage in Q4 was 5.1x for the majority of the portfolio, among the strongest in the net lease industry [6] - The company has diversified its rent sources, with 37% coming from outside casual dining, including automotive service (13%), quick service restaurants (11%), and medical retail (10%) [9] Company Strategy and Development Direction - The company focuses on acquiring high-quality real estate occupied by creditworthy tenants, avoiding problematic retail sectors [5][9] - The strategy includes expanding into new retail categories such as grocery and equipment rental, while maintaining a cautious approach to acquisitions [10][15] - The company aims to leverage its strong balance sheet and low leverage to capitalize on acquisition opportunities in 2026 [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market, citing a favorable debt capital environment and ample liquidity [19][20] - The company anticipates continued growth in 2026, supported by a strong pipeline of acquisition opportunities and a disciplined capital allocation strategy [17][76] - Management highlighted the importance of maintaining a balanced approach to real estate and credit, avoiding sectors with high risk [46] Other Important Information - The company has no debt maturities until December 2026, with a focus on managing minor upcoming maturities [21] - The company reported a significant gap between its implied cap rate and the blended cap rate of recently sold net lease properties, indicating potential undervaluation [25] Q&A Session Summary Question: Can you discuss the market for United Rentals and industrial outdoor storage? - Management noted the attractiveness of the sector, highlighting the large addressable market and the potential for creditworthy tenants [28] Question: What is the status of the Bahama Breeze locations? - Management confirmed that several locations will be converted to other Darden brands, with strong interest from potential new tenants [32][38] Question: How does the company manage its balance sheet and leverage? - Management emphasized a disciplined approach to capital allocation, with a focus on maintaining low leverage while pursuing accretive acquisitions [41] Question: What is the company's exposure to Red Lobster? - Management indicated that Red Lobster is performing better under new ownership, with stores predominantly under a master lease [45] Question: Are there any sectors the company is avoiding? - Management reiterated its focus on balanced real estate and credit, avoiding sectors that have not proven resilient through cycles [46]

Financial Data and Key Metrics Changes - The company reported Q4 AFFO per share of $0.45, with full-year AFFO at $1.78 per share, reflecting a 2.9% growth over 2024 [22] - Q4 cash rental income was $67.5 million, representing an 11.1% growth compared to the same quarter last year [23] - Annualized cash-based rent at quarter end was $264.2 million, with a weighted average five-year annual cash rent escalator of 1.5% [23] Business Line Data and Key Metrics Changes - In Q4, the company acquired 30 properties for $95 million at a blended cap rate of 7%, marking a 20 basis point expansion over the previous quarter [12] - For the full year 2025, the company acquired 105 properties for $318 million at a blended cap rate of 6.8% [12][13] - The company maintained a strong portfolio occupancy rate of 99.6%, with 95% of leases expiring in 2025 remaining occupied [24] Market Data and Key Metrics Changes - The company has diversified its tenant base, with 37% of rents coming from sectors outside casual dining, including automotive service (13%), quick service restaurants (11%), and medical retail (10%) [9] - The company sidestepped major tenant credit issues, reporting 0 bad debt expense in 2020 and 2025 [5] Company Strategy and Development Direction - The company focuses on acquiring high-quality real estate occupied by creditworthy tenants, emphasizing a conservative capital allocation strategy [3][4] - The company is expanding into new sectors such as grocery and equipment rental, while maintaining a cautious approach to ensure alignment with existing underwriting criteria [15][16] - The company aims to leverage its strong balance sheet and low leverage to capitalize on acquisition opportunities in 2026 [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality of their real estate and the ability to re-tenant properties, particularly in light of recent tenant brand changes [8] - The company anticipates a strong year in 2026, supported by favorable debt capital markets and a robust pipeline of acquisition opportunities [11][76] Other Important Information - The company has no debt maturities until December 2026, providing a stable financial outlook [21] - The company reported a cash G&A expense of $18 million for the year, at the bottom of its guidance range [23] Q&A Session Summary Question: Can you discuss the market for United Rentals and industrial outdoor storage? - Management noted that the sector is attractive due to the value in land residuals and the presence of creditworthy tenants, with a large addressable market [28] Question: What is the status of the Bahama Breeze properties? - Management confirmed that several properties will be converted to other Darden brands, with high interest from potential new tenants for the remaining locations [32][38] Question: How does the company view its leverage strategy? - Management indicated that they are disciplined in capital allocation and have ample liquidity for acquisitions without approaching their leverage ceiling [50] Question: What is the company's exposure to Red Lobster? - Management stated that Red Lobster is performing better under new ownership, with stores predominantly under a master lease affirmed at the same rent [45] Question: What is the company's approach to diversification? - Management emphasized a balanced approach, avoiding sectors that have not proven resilient through cycles, while focusing on high-quality, creditworthy tenants [46]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported an AFFO per share of $0.45, with a full-year AFFO of $1.78 per share, representing a 2.9% growth over 2024 [21] - Q4 cash rental income was $67.5 million, reflecting an 11.1% growth compared to the same quarter last year [22] - Annualized cash-based rent at the end of Q4 was $264.2 million, with a weighted average five-year annual cash rent escalator of 1.5% [22] Business Line Data and Key Metrics Changes - The company acquired 30 properties in Q4 for $95 million at a blended cap rate of 7%, marking a 20 basis point expansion over the previous quarter [11] - In 2025, the total acquisition volume reached $318 million, with a blended cap rate of 6.8% [11][12] - The portfolio maintained a strong rent coverage ratio of 5.1 times, one of the highest in the net lease industry [5] Market Data and Key Metrics Changes - The company has diversified its revenue sources, with 37% of rents coming from sectors outside casual dining, including automotive service (13%), quick service restaurants (11%), and medical retail (10%) [8] - The company reported no exposure to problematic retail sectors and maintained a portfolio occupancy rate of 99.6% [5][24] Company Strategy and Development Direction - The company aims to continue its conservative and thoughtful capital allocation strategy, focusing on high-quality acquisitions without sacrificing quality for volume [4] - The strategy includes expanding into new sectors such as grocery and equipment rental, while maintaining a focus on recession-resistant, essential service retailers [13][15] - The company plans to leverage favorable debt capital markets for acquisitions in 2026, with a focus on maintaining low leverage [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality of the portfolio and the ability to re-tenant properties, particularly in light of recent discussions with Darden regarding the conversion of Bahama Breeze locations [7][32] - The company anticipates a strong year in 2026, supported by ample liquidity and a favorable cost of debt capital [75] - Management highlighted the importance of disciplined capital allocation and the potential for continued growth despite market challenges [40] Other Important Information - The company has no debt maturities until December 2026, providing a stable financial outlook [21] - The company has maintained a healthy fixed charge coverage ratio of 4.8 times and 98% of its debt is fixed [20] Q&A Session Summary Question: Market outlook for United Rentals and industrial outdoor storage - Management noted the attractiveness of the sector, highlighting a large addressable market and the potential for creditworthy tenants [27][28] Question: Update on Bahama Breeze exposure - Management confirmed that several locations will be converted to other Darden brands, with strong interest from potential new tenants [30][32] Question: Comfort level with approaching leverage limits - Management expressed confidence in maintaining a disciplined approach to capital allocation, with ample acquisition opportunities before reaching leverage limits [39][49] Question: Red Lobster exposure and performance - Management indicated that Red Lobster is performing better under new ownership, with properties predominantly under master leases [43][44] Question: Diversification strategy and sectors to avoid - Management reiterated a focus on balanced real estate and credit approaches, avoiding sectors with high risk [45] Question: Direct deals with developers - Management stated that they do not see a significant difference in returns between direct deals and those involving brokers [69][70]

Four Corners Property Trust NYSE: FCPT INVESTOR PRESENTATION Q4 2025 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 those regarding FCPT's intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance ...

Core Viewpoint - Four Corners Property Trust (FCPT) reported quarterly funds from operations (FFO) of $0.45 per share, matching the Zacks Consensus Estimate and showing a slight increase from $0.44 per share a year ago [1] Financial Performance - The company posted revenues of $75.67 million for the quarter ended December 2025, which was 0.1% below the Zacks Consensus Estimate and an increase from $68.34 million year-over-year [2] - Over the last four quarters, FCPT has not surpassed consensus FFO or revenue estimates [2] Stock Performance - FCPT shares have increased approximately 9.9% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.45 on revenues of $77.3 million, and for the current fiscal year, it is $1.85 on revenues of $317.44 million [7] - The estimate revisions trend for FCPT was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

Revenue and Income - Rental revenue for Q4 2025 increased by 11.6% year-over-year to $67.8 million, with cash rents contributing $67.5 million[6] - Net income attributable to common shareholders for Q4 2025 was $29.4 million, or $0.28 per diluted share, compared to $26.2 million, or $0.27 per diluted share in Q4 2024[6] - Net income for Q4 2025 was $29,470,000, an increase from $26,207,000 in Q4 2024, representing a growth of 8.6%[27] - Funds from operations (FFO) for the twelve months ended December 31, 2025, reached $172,698,000, up from $154,967,000 in 2024, reflecting an increase of 11.4%[27] - Adjusted Funds from Operations (AFFO) for the twelve months ended December 31, 2025, were $183,413,000, compared to $162,755,000 in 2024, indicating a growth of 12.7%[27] Earnings Per Share - Adjusted Funds from Operations (AFFO) per diluted share for Q4 2025 was $0.45, a $0.01 increase from Q4 2024[6] - FFO per diluted share for Q4 2025 was $0.43, slightly up from $0.41 in Q4 2024, marking a 4.9% increase[27] - AFFO per diluted share for Q4 2025 was $0.45, compared to $0.44 in Q4 2024, showing a growth of 2.3%[27] Property and Portfolio - FCPT acquired 105 properties in 2025 for a total purchase price of $317.9 million, with an initial weighted average cash yield of 6.8%[14] - The real estate portfolio consisted of 1,303 properties, with a 99.6% occupancy rate and a weighted average remaining lease term of approximately 6.9 years[9] Expenses - General and administrative expenses for Q4 2025 were $6.2 million, up from $5.7 million in Q4 2024[13] - Depreciation and amortization expenses for the twelve months ended December 31, 2025, were $59,383,000, up from $54,372,000 in 2024, reflecting an increase of 9.3%[27] - Stock-based compensation for the twelve months ended December 31, 2025, was $8,854,000, compared to $6,987,000 in 2024, indicating a growth of 26.7%[27] Debt and Liquidity - As of December 31, 2025, FCPT had $1,215 million in outstanding debt, with a leverage ratio of 5.1x[16] - Available liquidity as of December 31, 2025, was approximately $402 million, including $12 million in cash and cash equivalents[14] Dividend - The company declared a dividend of $0.3665 per common share for Q4 2025, reflecting a 3.2% increase over the prior quarter[8] Rent Collection - The company achieved a rent collection rate of 99.5% for Q4 2025 and 99.8% for the full year[3] Share Count - The weighted average fully diluted shares outstanding increased to 106,652,350 in Q4 2025 from 97,283,328 in Q4 2024, a rise of 9.5%[27] Impairment and Adjustments - The provision for impairment was $827,000 for both the three and twelve months ended December 31, 2025, with no provision in 2024[27] - Straight-line rental revenue adjustments for the twelve months ended December 31, 2025, were $(3,203,000), an improvement from $(3,810,000) in 2024[27]

Core Insights - Four Corners Property Trust, Inc. (FCPT) is recognized among the Dividend Champions, Contenders, and Challengers List, highlighting its strong dividend yield performance [1] Acquisition Activities - On January 27, FCPT acquired a GreatWater 360 Auto Care location for $2.3 million through a sale-leaseback transaction, located in a high-traffic area in Minnesota under a long-term, triple-net lease [2] - A day prior, on January 26, the company announced another acquisition of a newly built McAlister's Deli property for $2.3 million, situated in a strong retail corridor in Michigan, also under a long-term net lease [3] - In 2025, FCPT was active in acquisitions, adding 105 properties to its portfolio for approximately $318 million, primarily focusing on single-tenant, net-leased assets [4] Portfolio Growth - The third quarter saw momentum with the closure of 28 properties for around $82 million, achieving attractive initial cash yields and long lease terms [5] - The company consistently deployed capital into service-oriented and necessity-based real estate, enhancing the portfolio's stability and long-term income profile [5] Company Overview - FCPT is a real estate investment trust (REIT) that owns, acquires, and leases properties mainly in the restaurant and retail sectors, with operations organized across real estate and restaurant segments [6]

Group 1 - Four Corners Property Trust (FCPT) announced the acquisition of a GreatWater 360 Auto Care property for $2.3 million, emphasizing its strategy to diversify and enhance portfolio quality through acquisitions [1][6] - The property is situated in a high-traffic area in Minnesota and is corporate-operated under a long-term triple-net lease, with a cap rate consistent with previous transactions [1][6] - FCPT also acquired a McAlister's Deli property for $2.3 million in Michigan and another GreatWater 360 Auto Care property for $1.2 million in Indiana, aligning with its strategy to build a resilient portfolio [2][3] Group 2 - The company's growth may face challenges due to a significant debt load of $1.23 billion as of September 30, 2025 [3] - Over the past three months, FCPT's shares have increased by 3.7%, outperforming the industry average rise of 1.2% [3] - Other REITs with better rankings include Cousins Properties (CUZ) and Digital Realty Trust (DLR), both currently rated Zacks Rank 2 (Buy) [4]

Core Viewpoint - Four Corners Property Trust (FCPT) has successfully acquired a GreatWater 360 Auto Care property for $2.3 million through a sale-leaseback transaction, indicating a strategic move to enhance its portfolio of high-quality, net-leased properties [1] Group 1: Acquisition Details - The acquisition cost of the GreatWater 360 Auto Care property is $2.3 million [1] - The property is situated in a highly trafficked corridor in Minnesota, suggesting a favorable location for retail operations [1] - The property is corporate-operated under a long-term, triple net lease, which provides stable income for the company [1]