Sean Hostert's questions to Four Corners Property Trust Inc (FCPT) leadership • Q3 2024
Question
Sean Hostert from Net Lease Observer asked about the long-term strategy for the Darden leases as they approach renewal periods, specifically whether they are all-or-nothing renewals and how FCPT views their future performance.
Answer
CEO William Lenehan clarified that the Darden properties are on individual leases, not master leases, and therefore are not subject to all-or-nothing renewals. He expressed high confidence in securing renewals, citing the assets' robust performance, including rent coverage of 6x and high sales volumes. He noted the leases have multiple five-year extension options and he anticipates a very high renewal rate.