Four Corners Property Trust, Inc. (FCPT) | Investment Case

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.

Show Full description

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

Last Price	24.37
Change Percentage	-0.20%
Open	24.6
Previous Close	24.42
Market Cap ( Millions)	2674
Volume	1213155
Year High	29.81
Year Low	22.78
M A 50	23.96
M A 200	25.31

FCF Yield	5.39%
Dividend Yield	5.87%
ROE	7.40%
Debt / Equity	73.88%
Net Debt / EBIDTA	529.58%
Price To Book	1.59
Price Earnings Ratio	23.05
Price To FCF	18.54
Price To sales	9.09
EV / EBITDA	17.18

2. FCPT Delivers Solid Q4 Results with Strong Acquisition Activity

Four Corners Property Trust, Inc. reported Q4 AFFO per share of $0.45, in line with estimates, and full-year AFFO of $1.78 per share, representing 2.9% growth over 2024. Q4 capital income was $67.5 million, an 11.1% increase from the previous year. The company's weighted average five-year annual cash rent escalator is 1.5%, and cash G&A expense was $18 million for the year. The actual EPS came out at $0.45, matching the estimated value.

Publication Date: Feb -15

                                    📋 Highlights
                                    Portfolio Growth & Efficiency:
                                                Expanded from 418 properties to 1,325 leases; 99.6% occupancy with 5.1x rent coverage in Q4.
Capital Allocation:
                                                Acquired $318M in net lease assets (2025) at 7% blended cap rate, funded by $2.3B in total property acquisitions since inception.
Financial Strength:
                                                Net debt/EBITDAre at 4.9x (Q4), full $350M revolver capacity, and 2.9% AFFO/share growth to $1.78 (2025).
Strategic Expansion:
                                                Entered industrial outdoor storage with United Rentals; 1.5% ABR exposure to 2026 expiries, 95% of 2025 expiries occupied.
Disciplined Growth:
                                                $67.5M Q4 capital income (+11.1% YoY), 1.5% annual cash rent escalator, and 99.5% base rent collection in Q4.

                                

Acquisition Activity and Portfolio Quality

In Q4, FCPT acquired $95 million of net lease properties at a 7% blended cap rate, bringing the total acquisitions for the year to $318 million. The company's in-place portfolio retains its high quality, with zero exposure to problematic retail sectors and minimal vacancy. Rent coverage in Q4 was 5.1 times for the majority of their portfolio, amongst the strongest in the net lease industry.

Balance Sheet and Capital Allocation

FCPT enters 2026 with low leverage and ample dry powder for opportunities. The company's net debt to adjusted EBITDAre was 4.9x at the end of Q4, and they have full capacity under their $350 million revolver. Management stated that they have a couple of hundred million dollars of acquisitions before they need to think about their leverage ceiling, indicating a long runway for accretive acquisitions.

Valuation and Growth Prospects

With a P/E Ratio of 23.05 and an EV/EBITDA of 17.18, the stock appears to be fairly valued. However, the Dividend Yield of 5.87% and Free Cash Flow Yield of 5.39% are attractive. Analysts estimate next year's revenue growth at 7.2%, indicating a positive outlook for the company. The ROE of 7.4% and ROIC of 114.13% suggest that FCPT is generating strong returns on its investments.

New Initiatives and Sector Focus

FCPT is exploring new opportunities in the industrial outdoor storage space with United Rentals, citing attractive cap rates and defensive characteristics. The company is also looking to scale up in the grocery sector, taking a cautious approach to purchasing and focusing on creditworthy tenants. Management is disciplined in its capital allocation and is expected to continue investing in opportunities that meet their underwriting criteria.

3. NewsRoom

Four Corners Property Trust, Inc. (FCPT) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

Four Corners Property Trust (FCPT) Meets Q4 FFO Estimates

Feb -11

Source: zacks.com

FCPT Announces Fourth Quarter 2025 Financial and Operating Results

Feb -11

Source: businesswire.com

Head-To-Head Contrast: Four Corners Property Trust (NYSE:FCPT) and EastGroup Properties (NYSE:EGP)

Feb -09

Source: defenseworld.net

Brokerages Set Four Corners Property Trust, Inc. (NYSE:FCPT) Target Price at $28.00

Feb -08

Source: defenseworld.net

FCPT Expands Portfolio, Acquires GreatWater 360 Auto Care Property

Jan -28

Source: zacks.com

Brokerages Set Four Corners Property Trust, Inc. (NYSE:FCPT) Price Target at $28.00

Jan -14

Source: defenseworld.net

Four Corners Property Trust: Earn Strong Dividends From An Undervalued REIT

Jan -13

Source: seekingalpha.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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Four Corners Property Trust

A-Score: 6.7/10

Value: 4.9

Growth: 5.8

Quality: 6.2

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

National Retail Properties

A-Score: 6.6/10

Value: 4.3

Growth: 4.1

Quality: 6.9

Yield: 9.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Brixmor Property Group

A-Score: 6.4/10

Value: 4.1

Growth: 5.1

Quality: 7.7

Yield: 8.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

Regency Centers

A-Score: 6.2/10

Value: 3.0

Growth: 4.3

Quality: 6.8

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Tanger Factory Outlet

A-Score: 5.8/10

Value: 2.6

Growth: 4.7

Quality: 6.7

Yield: 7.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

SITE Centers

A-Score: 5.1/10

Value: 7.2

Growth: 3.6

Quality: 5.2

Yield: 10.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.86%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.65%

Four Corners Property Trust, Inc. - US35086T1097

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.

1.b. Last Insights on FCPT

1.c. Company Highlights

Better Quality

Higher Growth

Expensive

Earnings Miss

Revenues Beats

Medium Volatility

Average Growth

Less Volatile

Average Quality

Fairly Valued

Earnings Beats

Strong Momentum

Stable Momentum

Average Yield

2. FCPT Delivers Solid Q4 Results with Strong Acquisition Activity

Acquisition Activity and Portfolio Quality

Balance Sheet and Capital Allocation

Valuation and Growth Prospects

New Initiatives and Sector Focus

3. NewsRoom

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%

Restaurant

Expected Growth: 5%

7. Detailed Products

Net Lease Properties

Industrial Properties

Office Properties

Retail Properties

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

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.37$

Current Price

24.37$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA