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Four Corners Property Trust, Inc. — Presentation / slide deck (8-K exhibit)
Four Corners Property Trust, Inc. (FCPT) · 21 slides · Filed Feb 12, 2025
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All FCPT deck slides
Slide 1 — Q4 2024 SUPPLEMENTAL FINANCIAL &
Q4 2024 SUPPLEMENTAL FINANCIAL & OPERATING INFORMATION Four Corners Property Trust N Y S E : F C P T
Slide 2 — F O R W A R D L O O K I N G S T A T E M E N T S A N D D I S C L A I M E R S
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, acquisition pipeline, expectations regarding the making of distributions and the payment of dividends, and the effect of pandemics on the business operations of FCPT and FCPT’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 FCPT’s public disclosure obligations, FCPT expressly disclaims any obligation to publicly release any updates or revisions to any forward- looking statements to reflect any change in FCPT’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 FCPT can give no assurance that its expectations or the events described will occur as described. For a further discussion of these and other factors that could cause FCPT’s future results to differ materially from any forward-looking statements, see the risk factors described under the section entitled “Item 1A. Risk Factors” in FCPT’s annual report on Form 10-K for the year ended December 31, 2024 and other risks described in documents subsequently filed by FCPT from time to time with the Securities and Exchange Commission. Notice regarding non-GAAP financial measures: The information in this communication contains and refers to certain non-GAAP financial measures, including FFO and AFFO. 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 Investors section of our website at www.fcpt.com, and on page 18 of this presentation. F O R W A R D L O O K I N G S T A T E M E N T S A N D D I S C L A I M E R S Q 4 2 0 2 4
Slide 3 — 1 F I N A N C I A L S U M M A R Y P G 3
Q 4 2 0 2 4 3 CONTENTS 1 F I N A N C I A L S U M M A R Y P G 3 2 R E A L E S T A T E P O R T F O L I O S U M M A R Y P G 1 3 3 E X H I B I T S P G 1 7
Slide 4 — CONSOLIDATING BALANCE SHEET
Q 4 2 0 2 4 4 CONSOLIDATING BALANCE SHEET As of 12/31/2023 ($000s, except shares and per share data) Unaudited Real Estate Operations Restaurant Operations Elimination Consolidated FCPT Consolidated FCPT ASSETS Real estate investments: Land 1,353,316 $ 7,456 $ - $ 1,360,772 $ 1,240,865 $ Buildings, equipment and improvements 1,822,497 15,375 - 1,837,872 1,708,556 Total real estate investments 3,175,813 22,831 - 3,198,644 2,949,421 Less: accumulated depreciation (767,716) (7,789) - (775,505) (738,946) Real estate investments, net 2,408,097 15,042 - 2,423,139 2,210,475 Intangible lease assets, net 123,613 - - 123,613 118,027 Total real estate investments and intangible lease assets, net 2,531,710 15,042 - 2,546,752 2,328,502 Cash and cash equivalents 2,985 1,096 - 4,081 16,322 Straight-line rent adjustment 68,562 - - 68,562 64,752 Deferred tax assets - 1,448 - 1,448 1,248 Other assets 7,187 4,263 - 11,450 19,858 Derivative assets 20,733 - - 20,733 20,952 Investment in subsidiary 16,503 - (16,503) - - Intercompany receivable - 6 (6) - - Total Assets 2,647,680 $ 21,855 $ (16,509) $ 2,653,026 $ 2,451,634 $ LIABILITIES AND EQUITY Liabilities: Term loan ($515,000, net of deferred financing costs) 511,250 $ - $ - $ 511,250 $ 425,745 $ Revolving facility ($245,000 remaining capacity) 5,000 - - 5,000 16,000 Unsecured notes ($625,000, net of deferred financing costs) 621,639 - - 621,639 670,944 Rent received in advance 6,738 - - 6,738 14,309 Derivative liabilities 473 - - 473 2,968 Dividends payable 35,358 - - 35,358 31,539 Other liabilities 16,752 5,026 - 21,778 30,266 Intercompany payable 6 - (6) - - Total liabilities 1,197,216 $ 5,026 $ (6) $ 1,202,236 $ 1,191,771 $ Equity: Preferred stock - $ - $ - $ - $ - $ Common stock 10 - - 10 9 Additional paid-in capital 1,482,698 16,503 (16,503) 1,482,698 1,261,940 Accumulated other comprehensive income 23,633 - - 23,633 21,977 Noncontrolling interest 2,178 - - 2,178 2,213 Accumulated deficit (58,055) 326 - (57,729) (26,276) Total equity 1,450,464 $ 16,829 $ (16,503) $ 1,450,790 $ 1,259,863 $ Total Liabilities and Equity 2,647,680 $ 21,855 $ (16,509) $ 2,653,026 $ 2,451,634 $ As of 12/31/2024
Slide 5 — CONSOLIDATED INCOME STATEMENT
Q 4 2 0 2 4 5 CONSOLIDATED INCOME STATEMENT ($000s, except shares and per share data) Unaudited 2024 2023 2024 2023 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 Three Months Ended December 31, Twelve Months Ended December 31,
Slide 6 — FFO & AFFO RECONCILIATION
Q 4 2 0 2 4 6 FFO & AFFO RECONCILIATION ($000s, except shares and per share data) Unaudited 2024 2023 2024 2023 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 benefit1 (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 $ Weighted average fully diluted shares outstanding2 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 $ Three Months Ended December 31, Twelve Months Ended December 31,
Slide 7 — NET ASSET VALUE COMPONENTS
Q 4 2 0 2 4 7 NET ASSET VALUE COMPONENTS Real Estate Portfolio as of 12/31/2024 Purchase Price ($000s) # of Rental Leases Total Square Feet (000s) Avg. Rent Per Square Foot ($) Tenant EBITDAR Coverage1 Lease Term Remaining (Yrs)2 Annual Cash Base Rent ($000s)3 % Total Cash Base Rent3 Darden - 456 3,554 32 5.6x 5.7 114,599 47.7% Other restaurant - 433 2,090 34 3.2x 9.2 71,112 29.6% Non-restaurant - 331 2,364 23 2.7x 8.2 54,460 22.7% Total Owned Portfolio - 1,220 8,008 30 4.9x 7.3 240,172 100.0% Q4 2024 Transaction Activity4 Leases acquired 132,541 45 245 38 n/a 12.4 9,289 3.9% No sales in Q4 2024 Tangible Assets Book Value ($000s) Cash, cash equivalents, and restricted cash 4,081 $ Other tangible assets 7,298 Total Tangible Assets 11,379 $ Debt Face Value ($000s) Term loan 515,000 $ Senior fixed rate notes 625,000 Revolving credit facility 5,000 Total Debt 1,145,000 $ Tangible Liabilities Book Value ($000s) Dividends payable 35,358 $ Rent received in advance, accrued interest, and other accrued expenses 20,836 Total Tangible Liabilities 56,194 $ Shares Outstanding Common stock (shares outstanding as of 12/31/2024) 99,825,119 Operating partnership units (OP units outstanding as of 12/31/2024) 114,559 Total Common Stock and OP Units Outstanding 99,939,678
Slide 8 — CAPITALIZATION & KEY CREDIT METRICS
Q 4 2 0 2 4 8 CAPITALIZATION & KEY CREDIT METRICS % of Market Capitalization Equity: Share price (12/31/2024) 27.14 $ Shares and OP units outstanding (12/31/2024) 99,939,678 Equity Value 2,712,363 $ 70.3% Debt: Term loan 515,000 $ 13.4% Revolving credit facility 5,000 0.1% Unsecured notes 625,000 16.2% Total Debt 1,145,000 $ 29.7% Total Market Capitalization 3,857,363 $ 100.0% Less: cash and restricted cash (4,081) Implied Enterprise Value 3,853,282 $ Dividend Data (fully diluted) Q4 2024 Common dividend per share1 $0.3550 AFFO per share $0.44 AFFO payout ratio 80.7% Credit Metrics Net Debt2 Adjusted EBITDAre 3 Ratio Net debt to Adjusted EBITDAre 1,140,919 $ 211,118 $ 5.4x Credit Metrics - Inclusive of Outstanding Net Equity Forwards4 Net Debt2 Adjusted EBITDAre 3 Ratio Net debt to Adjusted EBITDAre 1,042,452 $ 211,118 $ 4.9x Q4 2024 Capitalization ($000s, except shares and per share data)
Slide 9 — DEBT SUMMARY
Q 4 2 0 2 4 9 DEBT SUMMARY Debt Type Maturity Date Balance as of December 31, 2024 ($000s) % of Debt Cash Interest Rate as of December 31, 20244 Weighted Average Maturity (Yrs.) Credit Facility1 Revolving facility Nov-2025 5,000 0.4% 5.26% 0.9 Term loan Nov-2025 150,000 13.1% 3.85% 0.9 Term loan Nov-2026 100,000 8.7% 3.85% 1.9 Term loan Jan-2027 90,000 7.9% 3.80% 2.0 Term loan Mar-2027 85,000 7.4% 3.80% 2.2 Term loan Jan-2028 90,000 7.9% 3.80% 3.0 Principal Amount 520,000 $ Unsecured Notes2 C Dec-2026 50,000 4.4% 4.63% 2.0 B Jun-2027 75,000 6.6% 4.93% 2.4 D Dec-2028 50,000 4.4% 4.76% 4.0 G Apr-2029 50,000 4.4% 2.74% 4.3 E Jun-2029 50,000 4.4% 3.15% 4.4 F Apr-2030 75,000 6.6% 3.20% 5.3 I Mar-2031 50,000 4.4% 3.09% 6.2 H Apr-2031 50,000 4.4% 2.99% 6.3 J Mar-2032 75,000 6.6% 3.11% 7.2 K Jul-2033 100,000 8.7% 6.44% 8.5 Principal Amount 625,000 $ Mortgages Payable3 None - - - - Total/Weighted Average 1,145,000 $ 100.0% 3.97% 3.7 Unamortized Deferred Financing Costs Credit facility (3,750) $ Unsecured notes (3,361) Debt Carrying Value (GAAP) 1,137,890 $ Fixed rate 1,060,000 $ 93% Variable rate 85,000 $ 7% Credit Rating (Fitch/Moody's): BBB/Baa3
Slide 10 — CREDIT FACILITY AND HEDGING SUMMARY
Q 4 2 0 2 4 10 CREDIT FACILITY AND HEDGING SUMMARY Note: we are including this pro forma disclosure due to the Credit Facility recast as announced on January 31, 2025 FCPT Credit Facility Summary ($ millions) as of 12/31/2024 Pro Forma (as of 2/1/2025) Capacity Maturity Including Extensions Extended Term Remaining Capacity Maturity Including Extensions Extended Term Remaining Revolver $250 Nov-2025 May-2026 1.4 $350 Feb-2029 Feb-2030 5.0 Term Loan Tranche Principal Maturity Including Extensions Extended Term Remaining Principal Maturity Including Extensions Extended Term Remaining A-1 $150 Nov-2025 - 0.9 $225 Feb-2029 Feb-2030 5.0 A-2 $100 Nov-2026 - 1.9 $100 Nov-2026 Nov-2027 2.8 A-3 $90 Jan-2027 - 2.0 $90 Feb-2027 - 2.0 A-5 $85 Mar-2027 Mar-2028 3.2 $85 Mar-2027 Mar-2028 3.1 A-4 $90 Jan-2028 - 3.0 $90 Feb-2028 - 3.0 Term Loans $515 2.0 $590 3.6 FCPT 2024-2028 Hedge Summary1 ($ millions) as of 12/31/2024 Pro Forma (as of 2/1/2025) Hedged Amount As of % of Total 12/31/2024 ($515mm) Hedged SOFR Rate All-in Rate Hedged Amount As of % of Total 2/1/2025 ($590mm) Hedged SOFR Rate All-in Rate $435 12/31/2024 84% 2.4% 3.5% $510 2/1/2025 86% 2.6% 3.7% $435 11/1/2025 84% 2.4% 3.5% $510 11/1/2025 86% 2.6% 3.7% $435 11/1/2026 84% 2.8% 3.9% $510 11/1/2026 86% 2.9% 4.0% $385 11/1/2027 75% 2.7% 3.8% $460 11/1/2027 78% 2.8% 3.9% $285 11/1/2028 55% 3.1% 4.2% $360 11/1/2028 61% 3.2% 4.3%
Slide 11 — DEBT MATURITY SCHEDULE
$150 $100 $175 $90 $5 $245 $50 $75 $50 $150 $250 $140 $100 $75 $100 $75 $100 2025 2026 2027 2028 2029 2030 2031 2032 2033 Unsecured Notes Undrawn Revolver Drawn Revolver Unsecured Term Q 4 2 0 2 4 11 3.8-year Weighted average term for notes/term loans 93% Fixed rate debt 3.97% Weighted average cash interest rate $245 million Available on revolver 1 DEBT MATURITY SCHEDULE $190 $175 $225 $75 $50 $75 $350 $50 $265 $225 $100 $100 $75 $100 2025 2026 2027 2028 2029 2030 2031 2032 2033 Undrawn Revolver Unsecured Notes Drawn Revolver Unsecured Term 2 Pro Forma for Credit Facility Recast and FCPT Extension Options As of 12/31/2024
Slide 12 — DEBT COVENANTS
Q 4 2 0 2 4 12 DEBT COVENANTS As of December 31, 2024 Covenants Q4 2024 Limitation on incurrence of total debt ≤ 60% of consolidated capitalization value 33.4% Limitation on incurrence of secured debt ≤ 40% of consolidated capitalization value 0.0% Fixed charge coverage ratio ≥ 1.50x 4.5x Limitation on unencumbered leverage ≤ 60% 33.4% Unencumbered interest coverage ratio ≥ 1.75x 5.1x Requirement The following is a summary of the key financial covenants for our unsecured credit facility. These calculations are not based on U.S. GAAP measurements and are presented to demonstrate compliance with current credit covenants
Slide 13 — 1 F I N A N C I A L S U M M A R Y P G 3
Q 4 2 0 2 4 13 1 F I N A N C I A L S U M M A R Y P G 3 3 E X H I B I T S P G 1 7 CONTENTS 3 E X H I B I T S P G 1 2 R E A L E S T A T E P O R T F O L I O S U M M A R Y P G 1 3
Slide 14 — BRAND
Q 4 2 0 2 4 14 1,220 Leases / 163 Brands Annual Base Rent of $240.2 million1 56% Investment Grade3 1.4% Average Annual Rent Escalator4 F C P T P O R T F O L I O BRAND DIVERSIFICATION 10% 7% 2% 2% 2% 10% 9% 11% 9% 3% 34% Other casual dining restaurants Auto service Medical retail Other retail 2 Quick service restaurants FCPT Portfolio Brands Rank Brand Name Number Square Feet (000s) % of ABR 1 Olive Garden 314 2,674 34.2% 2 Longhorn Steakhouse 116 650 9.7% 3 Chili's 82 450 7.2% 4 Outback Steakhouse 28 182 2.5% 5 Buffalo Wild Wings 29 177 2.4% 6 Cheddar's 13 112 2.0% 7 Red Lobster 18 130 1.6% 8 Caliber Collision 28 389 1.4% 9 Bahama Breeze 10 91 1.4% 10 Burger King 22 71 1.4% 11 KFC 33 95 1.4% 12 Carrabba's 14 93 1.2% 13 BJ's Restaurant 12 98 1.2% 14 Take 5 Car Wash 9 35 1.2% 15 Bob Evans 15 83 1.2% 16 Oak Street Health 10 87 1.1% 17 Christian Brothers 9 53 1.0% 18 Arby's 17 53 0.8% 19 NAPA Auto Parts 18 129 0.8% 20 Texas Roadhouse 12 88 0.8% 21 WellNow Urgent Care 12 44 0.8% 22 Starbucks 17 38 0.7% 23 Fresenius 10 80 0.7% 24 Taco Bell 15 38 0.6% 25 AFC Urgent Care 9 47 0.6% 26-163 Other 348 2,020 22.4% Total Lease Portfolio 1,220 8,008 100%
Slide 15 — GEOGRAPHIC DIVERSIFICATION
Q 4 2 0 2 4 WA OR CA MT ID NV AZ UT WY CO NM TX OK KS NE SD ND MN IA MO AR LA MS AL GA FL SC TN NC IL WI MI OH IN KY WV VA PA NY ME VT NH NJ DE MD MA CT RI GEOGRAPHIC DIVERSIFICATION 5.0%–10.0% 3.0%–5.0% 2.0%–3.0% Annualized Base Rent1 (%) 1.0 %–2.0% <1.0% No Properties 15 State % ABR Leases TX 9.9% 96 MI 4.1% 63 SC 2.4% 32 OK 1.8% 24 MN 1.0% 11 FL 8.7% 88 AL 2.8% 43 LA 2.2% 29 MS 1.8% 24 30-47 6.6% 80 OH 6.7% 85 NY 2.7% 36 WI 2.1% 32 MO 1.8% 26 IL 6.7% 82 PA 2.7% 26 KY 2.0% 26 AZ 1.4% 16 GA 6.1% 73 VA 2.6% 33 CO 2.0% 27 KS 1.2% 14 IN 5.4% 78 MD 2.4% 33 CA 1.9% 15 NV 1.2% 10 TN 4.4% 43 NC 2.4% 34 IA 1.9% 28 AR 1.0% 13
Slide 16 — 99.6%
Q 4 2 0 2 4 16 1.1% 2.6% 11.7% 11.1% 11.5% 10.2% 9.0% 6.6% 12.5% 2.3% 2.2% 6.1% 2.5% 3.3% 1.2% 1.3% 0.8% 1.5% 0.4% 2.1% 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 % A N N U A L I Z E D B A S E R E N T 1 99.6% occupied2 as of 12/31/2024 7.3 years weighted average lease term < 3.7% of rental income matures prior to 2027 L EA S E MA TU R I TY S CH ED UL E
Slide 17 — 2 R E A L E S T A T E P O R T F O L I O S U M M A R Y P G 1 3
Q 4 2 0 2 4 17 2 R E A L E S T A T E P O R T F O L I O S U M M A R Y P G 1 3 3 E X H I B I T S P G 1 7 1 F I N A N C I A L S U M M A R Y P G 3 CONTENTS
Slide 18 — GLOSSARY AND NON-GAAP DEFINITIONS
18 This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of other REITs and therefore may not be comparable. The non-GAAP measures should not be considered an alternative to net income as an indicator of our performance and should be considered only a supplement to net income, and to cash flows from operating, investing or financing activities as a measure of profitability and/or liquidity, computed in accordance with GAAP. ABR refers to annual cash base rent as of 12/31/2024 and represents monthly contractual cash rent, excluding percentage rents, from leases, recognized during the final month of the reporting period, adjusted to exclude amounts received from properties sold during that period and adjusted to include a full month of contractual rent for properties acquired during that period. EBITDA represents earnings (GAAP net income) plus interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP measure computed in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“NAREIT”) as EBITDA (as defined above) excluding gains (or losses) on the disposition of depreciable real estate and real estate impairment losses. Adjusted EBITDAre is computed as EBITDAre (as defined above) excluding transaction costs incurred in connection with the acquisition of real estate investments and gains or losses on the extinguishment of debt. We believe that presenting supplemental reporting measures, or non-GAAP measures, such as EBITDA, EBITDAre and Adjusted EBITDAre, is useful to investors and analysts because it provides important information concerning our on-going operating performance exclusive of certain non-cash and other costs. These non- GAAP measures have limitations as they do not include all items of income and expense that affect operations. Accordingly, they should not be considered alternatives to GAAP net income as a performance measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Our presentation of such non- GAAP measures may not be comparable to similarly titled measures employed by other REITs. Tenant EBITDAR is calculated as EBITDA plus rental expense. EBITDAR is derived from the most recent data provided by tenants that disclose this information. For Darden, EBITDAR is updated biannually by multiplying the most recent individual property level sales information (reported by Darden twice annually to FCPT) by the average trailing twelve brand average EBITDA margin reported by Darden in its most recent comparable period, and then adding back property level rent. FCPT does not independently verify financial information provided by its tenants. Tenant EBITDAR coverage is calculated by dividing our reporting tenants’ most recently reported EBITDAR by annual in-place cash base rent. Funds From Operations (“FFO”) is a supplemental measure of our performance which should be considered along with, but not as an alternative to, net income and cash provided by operating activities as a measure of operating performance and liquidity. We calculate FFO in accordance with the standards established by NAREIT. FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of property and undepreciated land and impairment write-downs of depreciable real estate, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. We also omit the tax impact of non-FFO producing activities from FFO determined in accordance with the NAREIT definition. Our management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We offer this measure because we recognize that FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. FFO is a non-GAAP measure and should not be considered a measure of liquidity including our ability to pay dividends or make distributions. In addition, our calculations of FFO are not necessarily comparable to FFO as calculated by other REITs that do not use the same definition or implementation guidelines or interpret the standards differently from us. Investors in our securities should not rely on these measures as a substitute for any GAAP measure, including net income. Adjusted Funds From Operations (“AFFO”) is a non-GAAP measure that is used as a supplemental operating measure specifically for comparing year over year ability to fund dividend distribution from operating activities. AFFO is used by us as a basis to address our ability to fund our dividend payments. We calculate adjusted funds from operations by adding to or subtracting from FFO: 1. Transaction costs incurred in connection with business combinations 2. Straight-line rent 3. Stock-based compensation expense 4. Non-cash amortization of deferred financing costs 5. Other non-cash interest expense (income) 6. Non-real estate investment depreciation 7. Merger, restructuring and other related costs 8. Impairment charges 9. Other non-cash revenue adjustments, including amortization of above and below market leases and lease incentives 10. Amortization of capitalized leasing costs 11. Debt extinguishment gains and losses 12. Non-cash expense (income) adjustments related to deferred tax benefits AFFO is not intended to represent cash flow from operations for the period, and is only intended to provide an additional measure of performance by adjusting the effect of certain items noted above included in FFO. AFFO is a widely-reported measure by other REITs; however, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs. Properties refers to properties available for lease. GLOSSARY AND NON-GAAP DEFINITIONS
Slide 19 — R ECO N CI L I ATION S CH ED U L ES
Q 4 2 0 2 4 19 R ECO N CI L I ATION S CH ED U L ES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDARE RENTAL REVENUE AND PROPERTY EXPENSE DETAIL (In thousands) Unaudited 2024 2023 2024 2023 Net Income 26,207 $ 24,459 $ 100,595 $ 95,462 $ Adjustments: Interest expense 12,302 12,361 49,231 44,606 Income tax expense 105 80 308 130 Depreciation and amortization 14,096 13,320 54,514 50,731 EBITDA1 52,710 50,220 204,648 190,929 Adjustments: Gain on dispositions and exchange of real estate - (288) - (2,341) Provision for impairment of real estate - - - - EBITDAre 1 52,710 49,932 204,648 188,588 Adjustments: Real estate transaction costs 69 52 163 203 Gain or loss on extinguishment of debt - - - - Adjusted EBITDAre 1 52,779 49,984 204,811 188,791 Annualized Adjusted EBITDAre 211,118 $ 199,938 $ 204,811 $ 188,791 $ Three Months Ended December 31, Twelve Months Ended December 31, (In thousands) 2024 2023 2024 2023 Rental revenue 58,333 $ 55,284 $ 227,588 $ 210,433 $ Tenant reimbursement revenue 2,401 2,330 9,546 9,448 Total Rental Revenue 60,734 $ 57,614 $ 237,134 $ 219,881 $ (In thousands) 2024 2023 2024 2023 Tenant expense reimbursed 2,401 $ 2,330 $ 9,546 $ 9,448 $ Other non-reimbursed property expenses2 643 478 2,029 2,102 Total Property Expenses 3,044 $ 2,808 $ 11,575 $ 11,550 $ Three Months Ended December 31, Twelve Months Ended December 31, Twelve Months Ended December 31, Three Months Ended December 31, Rental Revenue Property Expenses
Slide 20 — FOOTNOTES
Q 4 2 0 2 4 20 PAGE 6 FFO & AFFO RECONCILIATION 1. Amount represents non-cash deferred income tax (benefit) expense recognized at the Kerrow Restaurant Business 2. Assumes the issuance of common shares for OP units held by non-controlling interest PAGE 9 DEBT SUMMARY 1. Borrowings under the term loans accrue interest at a rate of daily SOFR plus 0.10% plus a 0.95%-1.00% credit spread. Through 2028, FCPT has entered into interest rate swaps that fix $435 million of Term Loans through November 2025, $435 million through November 2026, and $385 through November 2027, and $285 through November 2028. The all-in cash interest rate on the portion of the term loan that is fixed and including the credit spread and SOFR adjustment is approximately 3.5% for 2025, 3.9% for 2026, 3.8% for 2027, and 4.2% for 2028. A daily simple SOFR rate of 4.49% as of 12/31/2024 is used for the 16% of term loans that are not fixed through hedges 2. These notes are senior unsecured fixed rate obligations of the Company. Cash interest rate excludes amortization of swap gains and losses incurred in connection with the issuance of these notes. The annual amortization (benefit) of net hedge gains is currently $139 thousand per year 3. As of 12/31/2024, FCPT had no mortgage debt and 100% of FCPT properties were unencumbered 4. Excludes amortization of deferred financing costs on the credit facility and unsecured notes PAGE 11 DEBT MATURITY SCHEDULE Figures as of 12/31/2024 1. The revolving credit facility expires on November 9, 2025 subject to FCPT’s availability to extend the term for one additional six-month period to May 9, 2026 2. Pro Forma for the recast, the revolving credit facility expires on February 1, 2029 subject to FCPT’s availability to extend the term for two additional six-month periods to February 1, 2030 PAGE 16 LEASE MATURITY SCHEDULE Note: Excludes renewal options. All data as of 12/31/2024 1. Annual cash base rent (ABR) as defined in glossary 2. Occupancy based on portfolio square footage PAGE 7 NET ASSET VALUE COMPONENTS 1. See glossary on page 18 for tenant EBITDAR and tenant EBITDAR coverage definitions: results based on tenant reporting representing 100% of Darden annual cash base rent (ABR), 55% of other restaurant ABR and 10% of non-restaurant ABR or 66% of total portfolio ABR. We have estimated Darden current EBITDAR coverage using sales results for the reported FCPT portfolio for the twelve months ended November 2024 and the averaged last four quarters brand average margins 2. Lease term weighted by annual cash base rent (ABR) as defined in glossary 3. Current scheduled minimum contractual rent as of 12/31/2024 4. FCPT acquired 45 properties and leasehold interests in Q4 2024; FCPT had no dispositions in the quarter PAGE 14 BRAND DIVERSIFICATION 1. Represents current scheduled minimum Annual Cash Base Rent (ABR) as of 12/31/2024, as defined in glossary 2. Other retail includes properties leased to cell phone stores, bank branches, grocers amongst others. These are often below market rent leases, and many were purchased through the outparcel strategy 3. Investment Grade Ratings represent the credit rating of our tenants, their subsidiaries or affiliated companies from Fitch, S&P or Moody’s 4. Average annual rent escalation through December 31, 2028 (weighted by annualized base rent) PAGE 15 GEOGRAPHIC DIVERSIFICATION 1. Annual cash base rent (ABR) as defined in glossary. Includes two leases in Alaska (not pictured) PAGE 19 RECONCILIATION SCHEDULES 1. See glossary on page 18 for non-GAAP definitions 2. Other non-reimbursed property expenses include non- reimbursed tenant expenses, vacant property expenses, abandoned deal costs, property legal costs, and franchise taxes PAGE 8 CAPITALIZATION & KEY CREDIT METRICS 1. Fourth quarter 2024 dividend was declared on 11/11/2024, payable on 1/15/2025 2. Principal debt amount less cash and cash equivalents 3. Current quarter annualized. See glossary on page 18 for definitions of EBITDAre and Adjusted EBITDAre and page 18 for reconciliation to net income 4. Includes forward equity contracts outstanding as of 12/31/2024 for anticipated net proceeds of $98 million FOOTNOTES PAGE 10 CREDIT FACILITY AND HEDGING SUMMARY 1. Borrowings under the term loans accrue interest at a rate of daily SOFR plus 0.10% plus a 0.95%-1.00% credit spread. FCPT has entered into interest rate swaps that fix $435 million of Term Loans through November 2025, $435 million through November 2026, and $385 through November 2027, and $285 through November 2028. The all-in cash interest rate on the portion of the term loan that is fixed and including the credit spread and SOFR adjustment is approximately 3.5% for 2025, 3.9% for 2026, 3.8% for 2027, and 4.2% for 2028
Slide 21 — THANK YOU
Four Corners Property Trust N Y S E : F C P T THANK YOU Q4 2024 SUPPLEMENTAL FINANCIAL & OPERATING INFORMATION