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    R.J. Milligan • Raymond James

    R.J. Milligan's questions to Four Corners Property Trust Inc (FCPT) leadership

    R.J. Milligan's questions to Four Corners Property Trust Inc (FCPT) leadership • Q1 2025

    Question

    R.J. Milligan of Raymond James asked about the strategy behind running at a 7-year low leverage level and how a potential recession might impact the acquisition pipeline in terms of volume, competition, and pricing.

    Answer

    CEO William Lenehan explained that with high SOFR rates, the cost of holding liquidity via forward equity is minimal, making it opportunistic to build a strong balance sheet. He stated they 'love being very liquid when there's stress.' Regarding a recession, Lenehan believes the portfolio would perform well, but it's unclear if it would create bargain acquisition opportunities. He affirmed FCPT is capitalized and staffed to act, but needs the market to present high-quality deals at attractive prices.

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    R.J. Milligan's questions to Realty Income Corp (O) leadership

    R.J. Milligan's questions to Realty Income Corp (O) leadership • Q3 2024

    Question

    R.J. Milligan of Raymond James asked if the private fund would invest in properties beyond pure triple-net leases, such as development loans. He also followed up on whether the fund's cost of equity would differ and if Realty Income would contribute existing properties.

    Answer

    CEO Sumit Roy clarified that the fund will not pursue assets with low NOI margins; investments will mimic the high flow-through characteristics of triple-net leases. He explained the fund's long-term return hurdles will be similar to the REIT's, but without the focus on day-one accretion, enabling different types of deals. He confirmed an initial seed portfolio of existing assets will be used to launch the fund, but subsequent investments will be new transactions.

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