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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on FCPT

The recent 3 months performance of Four Corners Property Trust, Inc. was negatively impacted by a lack of significant growth in funds from operations (FFO) despite a strong acquisition pace. The company's Q2 2025 FFO of $0.44 per share matched the Zacks Consensus Estimate, but this was not enough to drive significant growth. Additionally, the company's acquisition of a BJ's Restaurant and Brewhouse property and a Longhorn Steakhouse property for $4.8 million, while a positive development, may not have had a substantial impact on the company's overall performance.

1.c. Company Highlights

2. Four Corners Property Trust Posts Solid Q3 Earnings

Four Corners Property Trust (FCPT) reported Q3 AFFO of $0.45 per share, in line with estimates, representing a 3% increase from Q3 last year. Cash rental income was $66.1 million, a 12.6% growth compared to the same period last year. The company's weighted average 5-year annual cash rent escalator remains at 1.4%. Cash G&A expense, excluding stock-based compensation, was $4.3 million, accounting for 6.5% of cash rental income for the quarter.

Publication Date: Nov -01

📋 Highlights
  • Acquisition Growth and Capital Efficiency:: FCPT acquired $82M in Q3 at 6.8% blended cap rate, totaling $355M YTD, funded by equity raised via ATM at $28/share+ and $270M dry powder for growth.
  • Rent Diversification and Portfolio Strength:: 32% of rent from Olive Garden and 9% from LongHorn, with 35% from non-casual dining; 99.5% occupancy and 0.1% delinquency, plus 0 bad debt expense.
  • Financial Performance and Cost Control:: Q3 AFFO rose 3% to $0.45/share; cash rental income up 12.6% to $66.1M, with G&A expenses at 6.5% of rental income ($4.3M).
  • Debt Management and Liquidity:: 4.7x leverage ratio, $350M revolver near capacity, and improved debt markets with falling rates, supporting capital deployment flexibility.
  • Future Lease Renewal and Tenant Risk Mitigation:: 2026 expiries now 1.8% of ABR, cautious on Starbucks closures, and conservative underwriting with low exposure to challenged tenants.

Acquisition Activity and Portfolio Strength

The company acquired $82 million of net lease properties in Q3 at a 6.8% blended cap rate and $355 million over the trailing 12 months. These acquisitions were funded with equity raised through the ATM via forward issuance earlier in the year at an average price above $28 a share. The in-place portfolio remains strong with 0 exposure to problem retailers and 0 bad debt expense this year. Rent coverage in Q3 was 5.1x for the majority of the portfolio that reports this figure.

Diversification and Growth Prospects

FCPT has made progress on its goal of diversification, with Olive Garden and LongHorn now representing 32% and 9% of rent, respectively, and 35% of rents coming from outside of casual dining. The company has $270 million in dry powder to fuel growth, which includes equity, debt, and retained cash flow. Analysts estimate next year's revenue growth at 4.0%, indicating a steady outlook for the company.

Valuation and Leverage

With a P/E Ratio of 21.99 and an EV/EBITDA of 13.62, the market seems to be pricing in a certain level of growth for FCPT. The company's leverage stands at 4.7x, inclusive of outstanding net equity forwards. FCPT's debt market has improved substantially in recent months, with greater lender capacity and falling interest rates. The Dividend Yield is 6.01%, making it an attractive income-generating stock.

Management Confidence and Strategy

The management team highlighted the value in their portfolio, particularly in Darden's and Brinker International's restaurants, with low menu prices attracting customers from casual dining, fast casual, and QSR segments. The company is disciplined in its approach, using a scoring system to evaluate potential deals, and remains confident in its business model, which focuses on smaller transactions and a wide aperture for sourcing deals.

3. NewsRoom

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Four Corners Expands Portfolio With a VCA Animal Hospital Property

Dec -03

Source: zacks.com

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FCPT Expands Portfolio With Hawaiian Bros Sale-Leaseback Deal

Nov -27

Source: zacks.com

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B&I Capital AG Grows Holdings in Four Corners Property Trust, Inc. $FCPT

Nov -27

Source: defenseworld.net

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Meet 33 Ideal "Safer" November Small/MidCap Value DiviBuys Of The S&P600

Nov -26

Source: seekingalpha.com

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Four Corners Property Trust, Inc. (NYSE:FCPT) Receives $28.80 Consensus Target Price from Brokerages

Nov -25

Source: defenseworld.net

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Bank of New York Mellon Corp Purchases 41,471 Shares of Four Corners Property Trust, Inc. $FCPT

Nov -16

Source: defenseworld.net

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Four Corners Rewards Investors With a 3.2% Dividend Increase

Nov -12

Source: zacks.com

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FCPT Boosts Portfolio With Strategic Veterinary Real Estate Purchase

Nov -11

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Real Estate

Expected Growth: 5%

Four Corners Property Trust, Inc.'s 5% growth in Real Estate is driven by increasing demand for net-lease properties, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on investing in high-quality, single-tenant properties with long-term leases has contributed to its growth. Furthermore, the company's ability to maintain a strong balance sheet and access to capital has enabled it to take advantage of opportunities in the market.

Restaurant

Expected Growth: 5%

Four Corners Property Trust's restaurant segment growth is driven by increasing demand for experiential dining, strategic location selection, and effective marketing strategies. Additionally, the company's focus on menu innovation, operational efficiency, and customer loyalty programs contribute to its 5% growth rate.

7. Detailed Products

Net Lease Properties

Four Corners Property Trust, Inc. offers a diversified portfolio of net lease properties, providing a stable source of income through long-term leases with high-credit tenants.

Industrial Properties

The company's industrial properties segment includes warehouses, distribution centers, and light industrial facilities, offering flexible and functional spaces for a variety of industrial uses.

Office Properties

Four Corners' office properties segment comprises a range of office buildings, from Class A high-rise towers to suburban office parks, catering to diverse business needs.

Retail Properties

The company's retail properties segment includes shopping centers, strip centers, and single-tenant retail properties, providing a range of retail spaces for various businesses.

8. Four Corners Property Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Four Corners Property Trust, Inc. is moderate due to the availability of alternative investment options in the real estate industry.

Bargaining Power Of Customers

The bargaining power of customers for Four Corners Property Trust, Inc. is low due to the company's diversified portfolio and strong brand reputation.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Four Corners Property Trust, Inc. is moderate due to the company's dependence on a few key suppliers for materials and services.

Threat Of New Entrants

The threat of new entrants for Four Corners Property Trust, Inc. is high due to the relatively low barriers to entry in the real estate industry.

Intensity Of Rivalry

The intensity of rivalry for Four Corners Property Trust, Inc. is high due to the competitive nature of the real estate industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.94%
Debt Cost 3.95%
Equity Weight 53.06%
Equity Cost 9.04%
WACC 6.65%
Leverage 88.47%

11. Quality Control: Four Corners Property Trust, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Brixmor Property Group

A-Score: 6.6/10

Value: 4.2

Growth: 5.2

Quality: 7.9

Yield: 8.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Four Corners Property Trust

A-Score: 6.5/10

Value: 4.8

Growth: 5.8

Quality: 6.0

Yield: 10.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

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National Retail Properties

A-Score: 6.4/10

Value: 4.5

Growth: 4.1

Quality: 8.1

Yield: 9.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Regency Centers

A-Score: 6.2/10

Value: 2.9

Growth: 4.3

Quality: 6.7

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Tanger Factory Outlet

A-Score: 5.8/10

Value: 2.6

Growth: 4.6

Quality: 6.6

Yield: 7.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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SITE Centers

A-Score: 5.7/10

Value: 8.2

Growth: 3.7

Quality: 7.5

Yield: 10.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.08$

Current Price

23.08$

Potential

-0.00%

Expected Cash-Flows