FCPT - Four Corners Property Trust Inc.

07/31/2024 | Press release | Distributed by Public on 07/31/2024 14:38

FCPT Announces Second Quarter 2024 Financial and Operating Results Form 8 K

FCPT Announces Second Quarter 2024 Financial and Operating Results

MILL VALLEY, CA - July 31, 2024 / Business Wire - Four Corners Property Trust, Inc. ("FCPT" or the "Company", NYSE: FCPT) today announced financial results for the three and six months ended June 30, 2024.

Management Comments

"FCPT continued its strong performance in the second quarter. We acquired $45 million of high-quality assets while maintaining pricing discipline with an initial weighted average cash yield of 7.2%," said CEO Bill Lenehan. "With our strong existing portfolio performance and rent collections, we continue to be in a position to take advantage of opportunities that may arise."

Rent Collection Update

As of June 30, 2024, the Company has received rent payments representing 99.8% of its portfolio contractual base rent for the quarter ending June 30, 2024.

Financial Results

Rental Revenue and Net Income Attributable to Common Shareholders

•
Rental revenue for the second quarter increased 10.8% over the prior year to $58.5 million. Rental revenue consisted of $57.9 million in cash rents and $0.6 million of straight-line and other non-cash rent adjustments.
•
Net income attributable to common shareholders was $24.7 million for the second quarter, or $0.27 per diluted share. These results compare to net income attributable to common shareholders of $23.6 million for the same quarter in the prior year, or $0.27 per diluted share.
•
Net income attributable to common shareholders was $48.7 million for the six months ended June 30, 2024, or $0.53 per diluted share. These results compare to net income attributed to common shareholders of $46.7 million for the same six-month period in 2023, or $0.54 per diluted share.

Funds from Operations (FFO)

•
NAREIT-defined FFO per diluted share for the second quarter was $0.41, representing a $0.01 increase compared to the same quarter in 2023.
•
NAREIT-defined FFO per diluted share for the six months ended June 30, 2024 was $0.82, representing a $0.03 per share increase compared to the same six-month period in 2023.

Adjusted Funds from Operations (AFFO)

•
AFFO per diluted share for the second quarter was $0.43, representing a $0.01 per share increase compared to the same quarter in 2023.
•
AFFO per diluted share for the six months ended June 30, 2024 was $0.86, representing a $0.03 per share increase compared to the same six-month period in 2023.

General and Administrative (G&A) Expense

•
G&A expense for the second quarter was $6.0 million, which included $1.7 million of stock-based compensation. These results compare to G&A expense in the second quarter of 2023 of $5.6 million, including $1.6 million of stock-based compensation.
•
Cash G&A expense (after excluding stock-based compensation) for the second quarter was $4.3 million, representing 7.4% of cash rental income for the quarter.

Dividends

•
FCPT declared a dividend of $0.345 per common share for the second quarter of 2024.

Real Estate Portfolio

•
As of June 30, 2024, the Company's rental portfolio consisted of 1,154 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 7.4 years.

Acquisitions

•
During the second quarter, FCPT acquired 17 properties for a combined purchase price of $45.5 million at an initial weighted average cash yield of 7.2%, on rents in place as of June 30, 2024 and a weighted average remaining lease term of 13.1 years.

Dispositions

•
During the second quarter, FCPT did not sell any properties.

Liquidity and Capital Markets

Capital Raising

•
During the second quarter, the Company sold 99,656 shares of Common Stock via the at-the-market (ATM) program at an average price of $25.14 per share for net proceeds of $2.4 million.

Liquidity

•
On June 30, 2024, FCPT had approximately $240 million of available liquidity including $17 million of cash and cash equivalents and $223 million of undrawn revolving credit facility capacity.

Credit Facility and Unsecured Notes

•
On June 30, 2024, FCPT had $1,167 million of outstanding debt, consisting of $515 million of term loans and $625 million of unsecured fixed rate notes and $27 million outstanding revolver balance. FCPT's leverage, as measured by the ratio of net debt to adjusted EBITDAre, is 5.7x at quarter-end.

Conference Call Information

Company management will host a conference call and audio webcast on Thursday, August 1 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: 581658

Live webcast: https://events.q4inc.com/attendee/220645416

In order to pre-register for the call, investors can visit https://www.netroadshow.com/events/login?show=700c1afe&confId=68331

Replay: Available through October 30, 2024 by dialing 1 866 813 9403 (domestic) or 1 929 458 6194 (international), Replay Access Code 542454

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 Second 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.

FCPT

Bill Lenehan, 415-965-8031
CEO
Patrick Wernig, 415-965-8038

CFO

Four Corners Property Trust

Consolidated Statements of Income

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Revenues:

Rental revenue

$58,539

$52,843

$117,112

$105,040

Restaurant revenue

7,940

7,845

15,834

15,600

Total revenues

66,479

60,688

132,946

120,640

Operating expenses:

General and administrative

6,004

5,600

12,217

11,655

Depreciation and amortization

13,345

11,817

26,812

23,993

Property expenses

2,836

2,676

5,917

5,843

Restaurant expenses

7,332

7,197

14,896

14,492

Total operating expenses

29,517

27,290

59,842

55,983

Interest expense

(12,324)

(10,051)

(24,605)

(19,969)

Other income, net

150

226

390

526

Realized gain on sale, net

-

173

-

1,735

Income tax expense

(86)

(91)

(113)

(139)

Net income

24,702

23,655

48,776

46,810

Net income attributable to noncontrolling interest

(30)

(30)

(60)

(61)

Net Income Attributable to Common Shareholders

$24,672

$23,625

$48,716

$46,749

Basic net income per share

$0.27

$0.27

$0.53

$0.54

Diluted net income per share

$0.27

$0.27

$0.53

$0.54

Regular dividends declared per share

$0.3450

$0.3400

$0.6900

$0.6800

Weighted-average shares outstanding:

Basic

91,807,764

87,366,335

91,763,619

86,604,202

Diluted

91,994,062

87,556,011

91,976,282

86,825,150

Four Corners Property Trust

Consolidated Balance Sheets

(In thousands, except share data)

June 30, 2024

December 31, 2023

ASSETS

(Unaudited)

Real estate investments:

Land

$1,264,216

$1,240,865

Buildings, equipment and improvements

1,744,544

1,708,556

Total real estate investments

3,008,760

2,949,421

Less: Accumulated depreciation

(757,054)

(738,946)

Total real estate investments, net

2,251,706

2,210,475

Intangible lease assets, net

114,087

118,027

Total real estate investments and intangible lease assets, net

2,365,793

2,328,502

Real estate held for sale

-

-

Cash and cash equivalents

17,167

16,322

Straight-line rent adjustment

67,041

64,752

Derivative assets

24,293

20,952

Deferred tax assets

1,340

1,248

Other assets

10,280

19,858

Total Assets

$2,485,914

$2,451,634

LIABILITIES AND EQUITY

Liabilities:

Term loan and revolving credit facility ($542,000 and $446,000 of principal, respectively)

$537,270

$441,745

Senior unsecured notes

621,313

670,944

Dividends payable

31,695

31,539

Rent received in advance

12,394

14,309

Derivative liabilities

348

2,968

Other liabilities

21,482

30,266

Total liabilities

1,224,502

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, 92,102,202 and 91,617,477 shares issued and
outstanding, respectively

9

9

Additional paid-in capital

1,272,477

1,261,940

Accumulated other comprehensive income

27,636

21,977

Noncontrolling interest

2,201

2,213

Accumulated deficit

(40,911)

(26,276)

Total equity

1,261,412

1,259,863

Total Liabilities and Equity

$2,485,914

$2,451,634

Four Corners Property Trust

FFO and AFFO

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Funds from operations (FFO):

Net income

$24,702

$23,655

$48,776

$46,810

Depreciation and amortization

13,309

11,782

26,740

23,927

Realized gain on sales of real estate

-

(173)

-

(1,735)

FFO (as defined by NAREIT)

$38,011

$35,264

$75,516

$69,002

Straight-line rental revenue

(1,113)

(1,335)

(2,287)

(2,639)

Deferred income tax benefit (1)

(20)

(4)

(92)

(48)

Stock-based compensation

1,731

1,560

3,371

3,326

Non-cash amortization of deferred financing costs

653

564

1,291

1,128

Non-real estate investment depreciation

36

35

72

66

Other non-cash revenue adjustments

497

490

1,052

984

Adjusted Funds from Operations (AFFO)

$39,795

$36,574

$78,923

$71,819

Fully diluted shares outstanding (2)

92,108,621

87,670,570

92,090,841

86,939,709

FFO per diluted share

$0.41

$0.40

$0.82

$0.79

AFFO per diluted share

$0.43

$0.42

$0.86

$0.83

(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