FCPT Announces Fourth Quarter 2024 Financial and Operating Results

Rhea-AI Summary

Four Corners Property Trust (FCPT) reported strong financial results for Q4 and full-year 2024. The company achieved $60.7 million in rental revenue for Q4, up 5.3% year-over-year, with a 99.4% rent collection rate. Net income for Q4 was $26.2 million ($0.27 per diluted share), compared to $24.4 million in Q4 2023.

FCPT acquired 45 properties for $132.5 million in Q4 at a 7.0% initial weighted average cash yield. For the full year 2024, they acquired 87 properties for $264.6 million at a 7.1% yield. The company's portfolio now consists of 1,198 properties across 47 states with 99.6% occupancy and a 7.3-year weighted average remaining lease term.

The company increased its quarterly dividend by 2.9% to $0.3550 per share. FCPT maintained strong liquidity with $347 million available, including cash and credit facility capacity. The company's leverage ratio was 5.4x at quarter-end, or 4.9x including outstanding equity under forward sales agreements.

Positive

• Rental revenue increased 5.3% YoY to $60.7M in Q4
• High rent collection rate of 99.4% for Q4 and 99.8% for full-year 2024
• Acquired 87 properties for $264.6M in 2024 at 7.1% initial yield
• Portfolio maintains 99.6% occupancy rate
• Quarterly dividend increased by 2.9%
• AFFO per share increased to $0.44 in Q4, up from $0.43 in Q4 2023

Negative

• G&A expenses increased to $5.7M in Q4 2024 from $5.5M in Q4 2023
• Cash G&A expense rose to $16.8M in 2024 from $16.4M in 2023

Insights

Real Estate Investment Trust (REIT) Financial Analyst

FCPT's Q4 2024 results reveal a well-executed strategy in the net lease REIT sector, with several key strengths worth noting. The 99.6% occupancy rate and 7.3-year weighted average lease term provide excellent visibility into future cash flows, while the impressive 99.4% rent collection rate demonstrates the high quality of FCPT's tenant base.

The company's $132.5 million Q4 acquisition volume at a 7.0% initial cash yield is particularly noteworthy in the current high-interest rate environment. These acquisitions, featuring a 12.4-year weighted average lease term, significantly exceed the portfolio average of 7.3 years, effectively extending the company's cash flow visibility. The pricing suggests disciplined capital allocation, as these cap rates provide healthy spread over FCPT's cost of capital.

The balance sheet management deserves special attention. The recent credit facility expansion and refinancing activities have enhanced FCPT's financial flexibility, with total liquidity of $347 million. The leverage ratio of 5.4x (4.9x including forward equity) positions FCPT conservatively compared to net lease REIT peers who typically operate in the 5.5-6.5x range. This conservative leverage, combined with $102.4 million in forward equity agreements, provides substantial dry powder for future acquisitions.

The 2.9% dividend increase reflects management's confidence in cash flow stability, while the AFFO payout ratio remains at sustainable levels. The portfolio's diversification across 47 states and 1,198 properties provides natural risk mitigation, while the focus on national brands enhances tenant credit quality.

One particularly positive indicator is the reduction in cash G&A as a percentage of rental income from 7.1% to 6.5% year-over-year, demonstrating improving operational efficiency and economies of scale as the portfolio grows.

MILL VALLEY, Calif.--(BUSINESS WIRE)-- Four Corners Property Trust, Inc. (“FCPT” or the “Company”) (NYSE: FCPT) today announced financial results for the three and twelve months ended December 31, 2024.

Management Comments

“FCPT demonstrated great discipline on both capital raising and investing in 2024. We successfully acquired $265 million of properties leased to diverse national brands at accretive pricing. We ended the year with great momentum, closing on over $132 million of acquisitions in the fourth quarter,” said CEO Bill Lenehan. “While the market remains volatile, we have already raised significant debt and equity capital in recent months to support continued AFFO growth. Subsequent to our Credit Facility extension and upsizing in January, we have boosted liquidity and extended debt maturities, all while maintaining a low leverage profile.”

Rent Collection Update

As of December 31, 2024, the Company has received rent payments representing 99.4% of its portfolio contractual base rent for the quarter ending December 31, 2024, and 99.8% for the year ending December 31, 2024.

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 $60.7 million. Rental revenue consisted of $60.8 million in cash rents and less than $50 thousand of straight-line and other non-cash rent adjustments.
• Net income attributable to common shareholders was $26.2 million for the fourth quarter, or $0.27 per diluted share. These results compare to net income attributable to common shareholders of $24.4 million for the same quarter in the prior year, or $0.27 per diluted share.
• Net income attributable to common shareholders was $100.5 million for the twelve months ended December 31, 2024, or $1.07 per diluted share. These results compare to net income attributed to common shareholders of $95.3 million for the same twelve-month period in 2023, or $1.07 per diluted share.

Funds from Operations (FFO)

• NAREIT-defined FFO per diluted share for the fourth quarter was $0.41, representing flat results compared to the same quarter in 2023.
• NAREIT-defined FFO per diluted share for the twelve months ended December 31, 2024 was $1.65, representing a $0.03 per share increase compared to the same twelve-month period in 2023.

Adjusted Funds from Operations (AFFO)

• AFFO per diluted share for the fourth quarter was $0.44, representing a $0.01 per share increase compared to the same quarter in 2023.
• AFFO per diluted share for the twelve months ended December 31, 2024 was $1.73, representing a $0.06 per share increase compared to the same twelve-month period in 2023.

General and Administrative (G&A) Expense

• G&A expense for the fourth quarter was $5.7 million, which included $1.8 million of stock-based compensation. These results compare to G&A expense in the fourth quarter of 2023 of $5.5 million, including $1.5 million of stock-based compensation.
• Cash G&A expense (after excluding stock-based compensation) for the fourth quarter was $3.9 million, representing 6.5% of cash rental income for the quarter, compared to $4.1 million of cash G&A in the fourth quarter of 2023 representing 7.1% of cash rental income. Cash G&A expense in 2024 was $16.8 million, representing 7.1% of cash rental income for the year, compared to $16.4 million of cash G&A in 2023 representing 7.6% of cash rental income.

Dividends

• FCPT declared a dividend of $0.3550 per common share for the fourth quarter of 2024, a 2.9% 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 $132.5 million at an initial weighted average cash yield of 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 $264.6 million at an initial weighted average cash yield of 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 $27.92 per share for anticipated gross proceeds of $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 $27.06 per share for anticipated gross proceeds of $2.5 million. As of February 12, 2025, 3,624,683 shares remain to be settled under existing forward sale agreements for anticipated gross proceeds of $102.4 million.

Liquidity

• On December 31, 2024, FCPT had approximately $347 million of available liquidity including $4 million of cash and cash equivalents, anticipated net proceeds of approximately $98 million under existing forward sale agreements and $245 million of capacity under revolving credit facility.
• January capital markets activity further boosted liquidity:
  • Revolver capacity increased by $100 million to $350 million
  • Refinanced term loan increased by $75 million to $225 million
  • Equity issuance of $2.5 million

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 $765 million to $940 million by increasing the revolving credit facility capacity to $350 million and entering into a new $225 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 $150 million of loans maturing in November 2025. Additionally, FCPT’s lenders agreed to provide a one-year extension option for the $100 million of term loans maturing in November 2026 at the Company’s discretion, subject to certain conditions.
• On December 31, 2024, FCPT had $1,145 million of outstanding debt, consisting of $515 million of term loans and $625 million of unsecured fixed rate notes and $5 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.

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 Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail 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. Additional information about FCPT can be found on the website at fcpt.com.

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 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 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)
	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
	(Unaudited)
Revenues:
Rental revenue	$60,734		$57,614		$237,134		$219,881
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	$26,176		$24,429		$100,473		$95,340
Basic net income per share	$0.27		$0.27		$1.07		$1.08
Diluted net income per share	$0.27		$0.27		$1.07		$1.07
Regular dividends declared per share	$0.3550		$0.3450		$1.3900		$1.3650
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)
		December 31, 2024		December 31, 2023
ASSETS
Real estate investments:
Land		$1,360,772		$1,240,865
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		$2,653,026		$2,451,634
LIABILITIES AND EQUITY
Liabilities:
Term loan and revolving credit facility ($520,000 and $446,000 of principal, respectively)		$516,250		$441,745
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, $0.0001 par value per share, 25,000,000 shares authorized, zero shares issued and outstanding		-		-
Common stock, $0.0001 par value per share, 500,000,000 shares authorized, 99,825,119 and 91,617,477 shares issued and outstanding, respectively		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		$2,653,026		$2,451,634

Four Corners Property Trust FFO and AFFO (Unaudited) (In thousands, except share and per share data)
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2024		2023		2024		2023
Funds from operations (FFO):
Net income		$26,207		$24,459		$100,595		$95,462
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)		$40,267		$37,455		$154,967		$143,713
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)		$42,752		$38,915		$162,755		$148,713
Fully diluted shares outstanding (2)		97,283,328		90,817,925		94,179,057		88,861,587
FFO per diluted share		$0.41		$0.41		$1.65		$1.62
AFFO per diluted share		$0.44		$0.43		$1.73		$1.67
(1) Amount represents non-cash deferred income tax benefit recognized at the Kerrow Restaurant Business
(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

FAQ

What was FCPT's rental revenue growth in Q4 2024?

FCPT's rental revenue grew by 5.3% year-over-year to $60.7 million in Q4 2024.

How many properties did FCPT acquire in 2024?

FCPT acquired 87 properties for a combined purchase price of $264.6 million during 2024.

What is FCPT's current portfolio occupancy rate?

As of December 31, 2024, FCPT's portfolio had a 99.6% occupancy rate across 1,198 properties in 47 states.

What was FCPT's Q4 2024 dividend per share?

FCPT declared a dividend of $0.3550 per common share for Q4 2024, representing a 2.9% increase over the prior quarter.

What was FCPT's rent collection rate for Q4 2024?

FCPT achieved a 99.4% rent collection rate for Q4 2024 and 99.8% for the full year 2024.