FCPT Announces Fourth Quarter 2020 Financial and Operating Results
Four Corners Property Trust (FCPT) reported strong financial results for Q4 and FY 2020, highlighting a rental revenue increase of 11.8% to $40.1 million in Q4. Net income for Q4 was $20.3 million, with FFO per diluted share at $0.38, up from 2019. The company completed over $100 million in property acquisitions and raised over $87 million in equity capital. Rent collection levels remained high at over 99.6% for Q4. FCPT declared a quarterly dividend of $0.3175, a 4.1% increase from the previous quarter. The portfolio consists of 799 properties, with 99.6% occupancy.
- Rental revenue increased 11.8% to $40.1 million in Q4 2020.
- Net income attributable to common shareholders rose to $20.3 million in Q4 2020.
- FFO per diluted share for Q4 2020 increased to $0.38.
- Raised over $87 million in equity capital during Q4 2020.
- Acquired 48 properties in Q4 2020 for $103.4 million, initial cash yield of 6.4%.
- G&A expenses rose to $3.7 million in Q4 2020 compared to $3.2 million in Q4 2019.
Four Corners Property Trust, Inc. (“FCPT” or the “Company”, NYSE: FCPT) today announced financial results for the three months and the year ended December 31, 2020.
Management Comments
“FCPT had a strong fourth quarter with continuing high rent collection levels and over
Rent Collection Update
As of December 31, 2020, the Company has received rent payments representing over
Financial Results
Rental Revenue and Net Income Attributable to Common Shareholders
-
Rental revenue for the fourth quarter increased
11.8% over the prior year to$40.1 million . Rental revenue consisted of$38.5 million in cash rents and$1.6 million of straight-line and other non-cash rent adjustments.
-
Net income attributable to common shareholders was
$20.3 million for the fourth quarter, or$0.27 per diluted share. These results compare to net income attributable to common shareholders of$18.9 million in the prior year, or$0.27 per diluted share.
-
Net income attributable to common shareholders was
$77.3 million for the year ended December 31, 2020, or$1.08 per diluted share. These results compare to net income attributable to common shareholders of$72.6 million , or$1.06 per diluted share for the prior year.
Funds from Operations (FFO)
-
NAREIT-defined FFO per diluted share for the fourth quarter was
$0.38 , representing a$0.01 per share increase compared to the fourth quarter in 2019.
-
NAREIT-defined FFO per diluted share for the year ended December 31, 2020 was
$1.44 , representing a$0.05 per share increase compared to the prior year.
Adjusted Funds from Operations (AFFO)
-
AFFO per diluted share for the fourth quarter was
$0.37 , representing a$0.01 per share increase compared to the fourth quarter in 2019.
-
AFFO per diluted share for the year ended December 31, 2020 was
$1.44 , representing a$0.05 per share increase compared to the prior year.
General and Administrative (G&A) Expense
-
G&A expense for the fourth quarter was
$3.7 million , which included$0.9 million of stock-based compensation. These results compare to G&A expense in the fourth quarter of 2019 of$3.2 million , including$0.8 million of stock-based compensation.
-
Cash G&A expense (after excluding stock-based compensation) for the fourth quarter was
$2.9 million , representing7.4% of cash rental income for the quarter.
Dividends
-
FCPT declared a dividend of
$0.31 75 per common share for the fourth quarter of 2020, representing a4.1% increase over the prior quarter rate.
Portfolio Activities
Acquisitions
-
During the fourth quarter of 2020, FCPT acquired 48 properties for a combined purchase price of
$103.4 million at an initial weighted average cash yield of6.4% and a weighted average remaining lease term of 9.7 years.
-
For the year ended December 31, 2020, FCPT acquired 101 properties for a combined purchase price of
$222.7 million at an initial weighted average cash yield of6.5% and a weighted average remaining lease term of 8.4 years. Leases on 40 of the 101 properties acquired in 2020 are ground leases which are characterized as having low rents.
Liquidity and Capital Markets
Capital Raising
-
During the fourth quarter, FCPT issued 3,060,621 shares of common stock via its At-The-Market (ATM) stock program at a weighted average offering price of
$28.66 for gross proceeds of$87.7 million .
Liquidity
-
At December 31, 2020, FCPT had
$251.1 million of available liquidity including$11.1 million of cash and cash equivalents and$240 million of undrawn credit line capacity.
Credit Facility and Unsecured Note
-
At December 31, 2020, FCPT had
$760 million of outstanding debt, consisting of$400 million of term loans,$350 million of unsecured fixed rate notes, and$10 million drawn on FCPT’s$250 million revolving credit facility.
Real Estate Portfolio
-
As of December 31, 2020, the Company’s rental portfolio consisted of 799 properties located in 46 states. The properties are
99.6% occupied (measured by square feet) under long-term, net leases with a weighted average remaining lease term of approximately 10.2 years.
Conference Call Information
Company management will host a conference call and audio webcast on Thursday, February 18 at 11:00 a.m. Eastern Time to discuss the results.
Interested parties can listen to the call via the following:
Phone: 1-888-346-5243 (domestic) / 1-412-317-5120 (international). Participants not pre-registered must ask to be joined into the Four Corners Property Trust call.
Internet: Live webcast: https://services.choruscall.com/links/fcpt210218.html
In order to pre-register for the call, investors can visit https://dpregister.com/sreg/10151855/e189d188d5 and enter in their contact information.
Replay: Available through May 18, 2021 by dialing 1-877-344-7529 (domestic) / 1-412-317-0088 (international), Replay Access Code 10151855.
About FCPT
FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.
Cautionary Note Regarding Forward-Looking Statements
This press release 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 the Company’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance, announced transactions, expectations regarding the making of distributions and the payment of dividends, and the effect of pandemics such as COVID-19 on the business operations of the Company and the Company’s tenants and their continued ability to pay rent in a timely manner or at all. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and the Company can give no assurance that its expectations or the events described will occur as described. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. In addition, the extent to which COVID-19 impacts the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact and the direct and indirect economic effects of the pandemic and containment measures, among others. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent annual report on Form 10-K, as supplemented by the risk factor described under “Item 1A. ‘Risk Factors’” in the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on October 30, 2020, and other risks described in documents subsequently filed by the company from time to time with the Securities and Exchange Commission.
Notice Regarding Non-GAAP Financial Measures:
In addition to U.S. GAAP financial measures, this press release and the referenced supplemental financial and operating report contain and may refer to certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures and statements of why management believes these measures are useful to investors are included in the supplemental financial and operating report, which can be found in the investor relations section of our website.
Supplemental Materials and Website:
Supplemental materials on the Fourth Quarter 2020 operating results and other information on the Company are available on the investors relations section of FCPT’s website at www.investors.fcpt.com.
Four Corners Property Trust Consolidated Statements of Income (In thousands, except share and per share data) |
||||||||||||||||
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
| (Unaudited) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Rental revenue | $ |
40,091 |
|
$ |
35,850 |
|
$ |
154,721 |
|
$ |
139,682 |
|
||||
| Restaurant revenue |
|
4,527 |
|
|
5,031 |
|
|
16,223 |
|
|
20,551 |
|
||||
| Total revenues |
|
44,618 |
|
|
40,881 |
|
|
170,944 |
|
|
160,233 |
|
||||
| Operating expenses: | ||||||||||||||||
| General and administrative |
|
3,744 |
|
|
3,168 |
|
|
15,046 |
|
|
13,934 |
|
||||
| Depreciation and amortization |
|
7,763 |
|
|
6,780 |
|
|
29,433 |
|
|
26,312 |
|
||||
| Property expenses |
|
969 |
|
|
508 |
|
|
3,508 |
|
|
1,579 |
|
||||
| Restaurant expenses |
|
4,283 |
|
|
4,890 |
|
|
16,082 |
|
|
19,632 |
|
||||
| Total operating expenses |
|
16,759 |
|
|
15,346 |
|
|
64,069 |
|
|
61,457 |
|
||||
| Interest expense |
|
(7,499 |
) |
|
(6,547 |
) |
|
(29,231 |
) |
|
(26,516 |
) |
||||
| Other income, net |
|
2 |
|
|
72 |
|
|
170 |
|
|
944 |
|
||||
| Income tax expense |
|
(55 |
) |
|
(67 |
) |
|
(247 |
) |
|
(265 |
) |
||||
| Net income |
|
20,307 |
|
|
18,993 |
|
|
77,567 |
|
|
72,939 |
|
||||
| Net income attributable to noncontrolling interest |
|
(55 |
) |
|
(79 |
) |
|
(235 |
) |
|
(323 |
) |
||||
| Net Income Attributable to Common Shareholders | $ |
20,252 |
|
$ |
18,914 |
|
$ |
77,332 |
|
$ |
72,616 |
|
||||
| Basic net income per share | $ |
0.27 |
|
$ |
0.27 |
|
$ |
1.08 |
|
$ |
1.06 |
|
||||
| Diluted net income per share | $ |
0.27 |
|
$ |
0.27 |
|
$ |
1.08 |
|
$ |
1.06 |
|
||||
| Regular dividends declared per share | $ |
0.3175 |
|
$ |
0.3050 |
|
$ |
1.2325 |
|
$ |
1.1675 |
|
||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic |
|
73,940,013 |
|
|
68,907,749 |
|
|
71,312,326 |
|
|
68,430,841 |
|
||||
| Diluted |
|
74,283,324 |
|
|
69,117,820 |
|
|
71,609,068 |
|
|
68,632,010 |
|
||||
Four Corners Property Trust Consolidated Balance Sheets (In thousands, except share data) |
||||||||
| December 31, 2020 | December 31, 2019 | |||||||
| ASSETS | ||||||||
| Real estate investments: | ||||||||
| Land | $ |
827,502 |
|
$ |
690,575 |
|
||
| Buildings, equipment and improvements |
|
1,327,641 |
|
|
1,277,159 |
|
||
| Total real estate investments |
|
2,155,143 |
|
|
1,967,734 |
|
||
| Less: Accumulated depreciation |
|
(657,621 |
) |
|
(635,630 |
) |
||
| Total real estate investments, net |
|
1,497,522 |
|
|
1,332,104 |
|
||
| Intangible lease assets, net |
|
96,291 |
|
|
57,917 |
|
||
| Total real estate investments and intangible lease assets, net |
|
1,593,813 |
|
|
1,390,021 |
|
||
| Real estate held for sale |
|
2,763 |
|
|
- |
|
||
| Cash and cash equivalents |
|
11,064 |
|
|
5,083 |
|
||
| Straight-line rent adjustment |
|
47,938 |
|
|
39,350 |
|
||
| Derivative assets |
|
762 |
|
|
1,451 |
|
||
| Other assets |
|
11,839 |
|
|
10,165 |
|
||
| Total Assets | $ |
1,668,179 |
|
$ |
1,446,070 |
|
||
| LIABILITIES AND EQUITY | ||||||||
| Liabilities: | ||||||||
| Long-term debt ( |
$ |
753,878 |
|
$ |
669,940 |
|
||
| Dividends payable |
|
24,058 |
|
|
21,325 |
|
||
| Rent received in advance |
|
11,926 |
|
|
10,463 |
|
||
| Derivative liabilities |
|
18,717 |
|
|
- |
|
||
| Other liabilities |
|
15,099 |
|
|
17,601 |
|
||
| Total liabilities |
|
823,678 |
|
|
719,329 |
|
||
| Equity: | ||||||||
| Preferred stock, authorized, zero shares issued and outstanding |
|
- |
|
|
- |
|
||
| Common stock, authorized, 75,874,966 and 70,020,660 shares issued and outstanding, respectively |
|
8 |
|
|
7 |
|
||
| Additional paid-in capital |
|
840,455 |
|
|
686,181 |
|
||
| Accumulated other comprehensive (loss) income |
|
(25,695 |
) |
|
(3,539 |
) |
||
| Noncontrolling interest |
|
3,061 |
|
|
5,691 |
|
||
| Retained earnings |
|
26,672 |
|
|
38,401 |
|
||
| Total equity |
|
844,501 |
|
|
726,741 |
|
||
| Total Liabilities and Equity | $ |
1,668,179 |
|
$ |
1,446,070 |
|
||
Four Corners Property Trust FFO and AFFO (Unaudited) (In thousands, except share and per share data) |
||||||||||||||||
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
| Funds from operations (FFO): | ||||||||||||||||
| Net income | $ |
20,307 |
|
$ |
18,993 |
|
$ |
77,567 |
|
$ |
72,939 |
|
||||
| Depreciation and amortization |
|
7,737 |
|
|
6,677 |
|
|
29,351 |
|
|
26,158 |
|
||||
| FFO (as defined by NAREIT) | $ |
28,044 |
|
$ |
25,670 |
|
$ |
106,918 |
|
$ |
99,097 |
|
||||
| Straight-line rental revenue |
|
(2,070 |
) |
|
(2,199 |
) |
|
(8,588 |
) |
|
(9,207 |
) |
||||
| Recognized rental revenue abated (1) |
|
- |
|
|
- |
|
|
(1,568 |
) |
|
- |
|
||||
| Stock-based compensation |
|
880 |
|
|
810 |
|
|
3,376 |
|
|
3,602 |
|
||||
| Non-cash amortization of deferred financing costs |
|
543 |
|
|
512 |
|
|
2,132 |
|
|
2,050 |
|
||||
| Other non-cash interest income (expense) |
|
1 |
|
|
1 |
|
|
- |
|
|
(4 |
) |
||||
| Non-real estate investment depreciation |
|
26 |
|
|
103 |
|
|
82 |
|
|
154 |
|
||||
| Other non-cash revenue adjustments |
|
497 |
|
|
109 |
|
|
1,296 |
|
|
158 |
|
||||
| Adjusted Funds from Operations (AFFO) | $ |
27,921 |
|
$ |
25,006 |
|
$ |
103,648 |
|
$ |
95,850 |
|
||||
| Fully diluted shares outstanding (2) |
|
74,482,398 |
|
|
69,407,212 |
|
|
71,823,973 |
|
|
68,937,263 |
|
||||
| FFO per diluted share | $ |
0.38 |
|
$ |
0.37 |
|
$ |
1.49 |
|
$ |
1.44 |
|
||||
| AFFO per diluted share | $ |
0.37 |
|
$ |
0.36 |
|
$ |
1.44 |
|
$ |
1.39 |
|
||||
(1) |
Amount represents base rent that the Company abated as a result of lease amendments. In 2020, the Company abated |
||||||||
(2) |
Assumes the issuance of common shares for OP units held by non-controlling interest. | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210217005838/en/
FAQ
What were Four Corners Property Trust's Q4 2020 rental revenues?
How much equity capital did FCPT raise in Q4 2020?
What is the net income for FCPT in Q4 2020?
What is FCPT's occupancy rate as of December 31, 2020?
What is the dividend declared by FCPT for Q4 2020?
