FCPT Announces Fourth Quarter 2024 Financial and Operating Results
Management Comments
“FCPT demonstrated great discipline on both capital raising and investing in 2024. We successfully acquired
Rent Collection Update
As of December 31, 2024, the Company has received rent payments representing
Financial Results
Rental Revenue and Net Income Attributable to Common Shareholders
-
Rental revenue for the fourth quarter increased
5.3% over the prior year to . Rental revenue consisted of$60.7 million in cash rents and less than$60.8 million of straight-line and other non-cash rent adjustments.$50 thousand -
Net income attributable to common shareholders was
for the fourth quarter, or$26.2 million per diluted share. These results compare to net income attributable to common shareholders of$0.27 for the same quarter in the prior year, or$24.4 million per diluted share.$0.27 -
Net income attributable to common shareholders was
for the twelve months ended December 31, 2024, or$100.5 million per diluted share. These results compare to net income attributed to common shareholders of$1.07 for the same twelve-month period in 2023, or$95.3 million per diluted share.$1.07
Funds from Operations (FFO)
-
NAREIT-defined FFO per diluted share for the fourth quarter was
, representing flat results compared to the same quarter in 2023.$0.41 -
NAREIT-defined FFO per diluted share for the twelve months ended December 31, 2024 was
, representing a$1.65 per share increase compared to the same twelve-month period in 2023.$0.03
Adjusted Funds from Operations (AFFO)
-
AFFO per diluted share for the fourth quarter was
, representing a$0.44 per share increase compared to the same quarter in 2023.$0.01 -
AFFO per diluted share for the twelve months ended December 31, 2024 was
, representing a$1.73 per share increase compared to the same twelve-month period in 2023.$0.06
General and Administrative (G&A) Expense
-
G&A expense for the fourth quarter was
, which included$5.7 million of stock-based compensation. These results compare to G&A expense in the fourth quarter of 2023 of$1.8 million , including$5.5 million of stock-based compensation.$1.5 million -
Cash G&A expense (after excluding stock-based compensation) for the fourth quarter was
, representing$3.9 million 6.5% of cash rental income for the quarter, compared to of cash G&A in the fourth quarter of 2023 representing$4.1 million 7.1% of cash rental income. Cash G&A expense in 2024 was , representing$16.8 million 7.1% of cash rental income for the year, compared to of cash G&A in 2023 representing$16.4 million 7.6% of cash rental income.
Dividends
-
FCPT declared a dividend of
per common share for the fourth quarter of 2024, a$0.35 502.9% increase over the prior quarter.
Real Estate Portfolio
-
As of December 31, 2024, the Company’s rental portfolio consisted of 1,198 properties located in 47 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 7.3 years.
Acquisitions
-
During the fourth quarter, FCPT acquired 45 properties for a combined purchase price of
at an initial weighted average cash yield of$132.5 million 7.0% , on rents in place as of December 31, 2024 and a weighted average remaining lease term of 12.4 years. -
During 2024, FCPT acquired 87 properties for a combined purchase price of
at an initial weighted average cash yield of$264.6 million 7.1% and a weighted average remaining lease term of 11.9 years as of December 31, 2024.
Dispositions
- During the fourth quarter and 2024, FCPT did not sell any properties.
Liquidity and Capital Markets
Capital Raising
-
During the fourth quarter, the Company sold 3,665,151 shares of Common Stock via the at-the-market (ATM) program at an average gross price of
per share for anticipated gross proceeds of$27.92 .$102.3 million -
Year to date in 2025, FCPT has sold 94,108 shares of Common Stock via the ATM at an average gross price of
per share for anticipated gross proceeds of$27.06 . As of February 12, 2025, 3,624,683 shares remain to be settled under existing forward sale agreements for anticipated gross proceeds of$2.5 million .$102.4 million
Liquidity
-
On December 31, 2024, FCPT had approximately
of available liquidity including$347 million of cash and cash equivalents, anticipated net proceeds of approximately$4 million under existing forward sale agreements and$98 million of capacity under revolving credit facility.$245 million -
January capital markets activity further boosted liquidity:
-
Revolver capacity increased by
to$100 million $350 million -
Refinanced term loan increased by
to$75 million $225 million -
Equity issuance of
$2.5 million
-
Revolver capacity increased by
Credit Facility and Unsecured Notes
-
As announced on January 31, 2025, FCPT entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement (the “Credit Agreement”). The Credit Agreement increases the overall size of the facility from
to$765 million by increasing the revolving credit facility capacity to$940 million and entering into a new$350 million term loan (the “Term Loan”). Both the Term Loan and revolving credit facility mature in February 2029, and may be extended up to one-year at the Company’s discretion, subject to certain conditions. The Term Loan was used, in part, to pay down$225 million of loans maturing in November 2025. Additionally, FCPT’s lenders agreed to provide a one-year extension option for the$150 million of term loans maturing in November 2026 at the Company’s discretion, subject to certain conditions.$100 million -
On December 31, 2024, FCPT had
of outstanding debt, consisting of$1,145 million of term loans and$515 million of unsecured fixed rate notes and$625 million of outstanding revolver balance. FCPT’s leverage, as measured by the ratio of net debt to adjusted EBITDAre, is 5.4x at quarter-end, or 4.9x inclusive of outstanding equity under forward sales agreements as of December 31, 2024.$5 million
Conference Call Information
Company management will host a conference call and audio webcast on Thursday, February 13 at 11:00 a.m. Eastern Time to discuss the results.
Interested parties can listen to the call via the following:
Phone: 1 833 470 1428 (domestic) or 1 404 975 4839 (international), Call Access Code: 835692
Live webcast: https://events.q4inc.com/attendee/380276991
In order to pre-register for the call, investors can visit https://www.netroadshow.com/events/login?show=fafcf788&confId=76462
Replay: Available through May 14, 2025 by dialing 1 866 813 9403 (domestic) or 1 929 458 6194 (international), Replay Access Code 380714
About FCPT
FCPT, headquartered in
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 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. 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, 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
Supplemental Materials and Website:
Supplemental materials on the Fourth Quarter 2024 operating results and other information on the Company are available on the investors relations section of FCPT’s website at investors.fcpt.com.
Four Corners Property Trust Consolidated Statements of Income (In thousands, except share and per share data) |
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
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2024 |
2023 |
2024 |
2023 |
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(Unaudited) |
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|
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Revenues: |
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Rental revenue |
|
|
|
|
|||
Restaurant revenue |
7,602 |
7,529 |
30,939 |
30,725 |
|||
Total revenues |
68,336 |
65,143 |
268,073 |
250,606 |
|||
Operating expenses: |
|||||||
General and administrative |
5,725 |
5,527 |
23,789 |
22,680 |
|||
Depreciation and amortization |
14,096 |
13,320 |
54,514 |
50,731 |
|||
Property expenses |
3,044 |
2,808 |
11,575 |
11,550 |
|||
Restaurant expenses |
7,099 |
6,986 |
29,024 |
28,707 |
|||
Total operating expenses |
29,964 |
28,641 |
118,902 |
113,668 |
|||
Interest expense |
(12,302) |
(12,361) |
(49,231) |
(44,606) |
|||
Other income, net |
242 |
|
110 |
963 |
|
919 |
|
Realized gain on sale, net |
- |
|
288 |
- |
|
2,341 |
|
Income tax expense |
(105) |
|
(80) |
(308) |
|
(130) |
|
Net income |
26,207 |
24,459 |
100,595 |
95,462 |
|||
Net income attributable to noncontrolling interest |
(31) |
(30) |
(122) |
(122) |
|||
Net Income Attributable to Common Shareholders |
|
|
|
|
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|
|
|
|
|
|
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|
Basic net income per share |
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|
|
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Diluted net income per share |
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|
|
|
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Regular dividends declared per share |
|
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|
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Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
96,614,382 |
90,467,426 |
93,643,129 |
88,526,343 |
|||
Diluted |
97,168,769 |
90,703,366 |
94,064,498 |
88,747,028 |
Four Corners Property Trust Consolidated Balance Sheets (In thousands, except share data) |
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December 31, 2024 |
December 31, 2023 |
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ASSETS |
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Real estate investments: |
||||
Land |
|
|
||
Buildings, equipment and improvements |
1,837,872 |
1,708,556 |
||
Total real estate investments |
3,198,644 |
2,949,421 |
||
Less: Accumulated depreciation |
(775,505) |
(738,946) |
||
Total real estate investments, net |
2,423,139 |
2,210,475 |
||
Intangible lease assets, net |
123,613 |
118,027 |
||
Total real estate investments and intangible lease assets, net |
2,546,752 |
2,328,502 |
||
Cash and cash equivalents |
4,081 |
16,322 |
||
Straight-line rent adjustment |
68,562 |
64,752 |
||
Derivative assets |
20,733 |
20,952 |
||
Deferred tax assets |
1,448 |
1,248 |
||
Other assets |
11,450 |
19,858 |
||
Total Assets |
|
|
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LIABILITIES AND EQUITY |
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Liabilities: |
||||
Term loan and revolving credit facility ( |
|
|
|
|
Senior unsecured notes |
621,639 |
670,944 |
||
Dividends payable |
35,358 |
31,539 |
||
Rent received in advance |
6,738 |
14,309 |
||
Derivative liabilities |
473 |
2,968 |
||
Other liabilities |
21,778 |
30,266 |
||
Total liabilities |
1,202,236 |
1,191,771 |
||
Equity: |
||||
Preferred stock, |
- |
- |
||
Common stock, |
10 |
9 |
||
Additional paid-in capital |
1,482,698 |
1,261,940 |
||
Accumulated other comprehensive income |
23,633 |
21,977 |
||
Noncontrolling interest |
2,178 |
2,213 |
||
Accumulated deficit |
(57,729) |
(26,276) |
||
Total equity |
1,450,790 |
1,259,863 |
||
Total Liabilities and Equity |
|
|
Four Corners Property Trust FFO and AFFO (Unaudited) (In thousands, except share and per share data) |
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
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2024 |
2023 |
2024 |
2023 |
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Funds from operations (FFO): |
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Net income |
|
|
|
|
||||
Depreciation and amortization |
14,060 |
13,284 |
54,372 |
50,592 |
||||
Realized gain on sales of real estate |
- |
(288) |
- |
(2,341) |
||||
FFO (as defined by NAREIT) |
|
|
|
|
||||
Straight-line rental revenue |
(467) |
(1,165) |
(3,810) |
(5,523) |
||||
Deferred income tax benefit (1) |
(47) |
(27) |
(200) |
(259) |
||||
Stock-based compensation |
1,801 |
1,473 |
6,987 |
6,271 |
||||
Non-cash amortization of deferred financing costs |
653 |
|
592 |
2,597 |
2,311 |
|||
Non-real estate investment depreciation |
36 |
36 |
142 |
139 |
||||
Other non-cash revenue adjustments |
509 |
551 |
2,072 |
2,061 |
||||
Adjusted Funds from Operations (AFFO) |
|
|
|
|
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Fully diluted shares outstanding (2) |
97,283,328 |
90,817,925 |
94,179,057 |
88,861,587 |
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FFO per diluted share |
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AFFO per diluted share |
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(1) Amount represents non-cash deferred income tax benefit recognized at the Kerrow Restaurant Business |
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(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/20250212980815/en/
FCPT
Bill Lenehan, 415-965-8031
CEO
Patrick Wernig, 415-965-8038
CFO
Source: Four Corners Property Trust