Executive Summary

Steady quarter; revenues and per-share metrics were flat-to-up modestly, while FCPT re-accelerated external growth and fortified liquidity with ~$224M of equity since July, positioning for renewed AFFO growth .
Q3 revenue rose 3.0% YoY to $66.8M with rental revenue up 3.6% YoY; diluted EPS was $0.27 (flat YoY), FFO/share $0.41 (flat YoY), and AFFO/share $0.43 (+$0.01 YoY) .
Balance sheet and funding optionality improved: net debt/Adj. EBITDAre at 5.3x (4.9x including forward equity), $382M–$393M of liquidity, and no revolver drawn; management turned the “acquisition machine back on” at ~7.2% cap rates .
Tenants and portfolio quality remained resilient: 99.8% rent collection, 99.6% occupancy, and ~5x rent coverage across the reporting portfolio; Red Lobster emerged from bankruptcy with all 18 FCPT stores affirmed and paying .
Estimates: S&P Global consensus (EPS/FFO/AFFO/Revenue) was unavailable at the time of analysis; we therefore cannot assess beats/misses for Q3 (consensus estimates unavailable via S&P Global at analysis time).

What Went Well and What Went Wrong

What Went Well
- External growth restarted with disciplined, accretive acquisitions: 21 properties for $70.7M at a 7.2% initial cash yield; management emphasized turning acquisitions “back on” as cost of capital improved .
- Strong operating resilience: 99.8% cash collections, 99.6% occupancy, very limited near-term lease maturities, and continued high rent coverage (~5x for reporting portion) .
- Balance sheet flexibility: ~$224M equity raised since July, ~$393M liquidity (including October issuance), leverage fell to 5.3x (4.9x including forwards), enabling accretive funding of the pipeline .
What Went Wrong
- Per-share metrics were broadly flat: FFO/share and EPS held flat YoY, with AFFO/share up only $0.01 YoY, reflecting higher shares outstanding and interest expense headwinds .
- G&A in Q3 increased modestly YoY ($5.8M vs. $5.5M) with higher stock-based comp; cash G&A 6.9% of cash rental income (improved sequentially but still a watch item as scale grows) .
- Estimates comparison unavailable: inability to benchmark Q3 against S&P Global consensus reduces the near-term “beat/miss” trading signal (consensus unavailable via S&P Global at analysis time).

Financial Results

Core P&L and per-share metrics (sequential)

Metric	Q1 2024	Q2 2024	Q3 2024
Total Revenues ($USD Millions)	$66.467	$66.479	$66.791
Rental Revenue ($USD Millions)	$58.573	$58.539	$59.288
Restaurant Revenue ($USD Millions)	$7.894	$7.940	$7.503
Diluted EPS ($)	$0.26	$0.27	$0.27
NAREIT FFO per Diluted Share ($)	$0.41	$0.41	$0.41
AFFO per Diluted Share ($)	$0.43	$0.43	$0.43

Year-over-year (Q3)

Metric	Q3 2023	Q3 2024
Total Revenues ($USD Millions)	$64.839	$66.791
Rental Revenue ($USD Millions)	$57.243	$59.288
Diluted EPS ($)	$0.27	$0.27
NAREIT FFO per Diluted Share ($)	$0.41	$0.41
AFFO per Diluted Share ($)	$0.42	$0.43

Revenue mix (sequential)

Revenue Component	Q1 2024 ($M)	Q2 2024 ($M)	Q3 2024 ($M)
Rental Revenue	$58.573	$58.539	$59.288
Restaurant Revenue	$7.894	$7.940	$7.503

Key KPIs and capital (sequential)

KPI	Q1 2024	Q2 2024	Q3 2024
Occupancy	99.6%	99.6%	99.6%
Rent Collection (Quarter)	99.7%	99.8%	99.8%
Properties / Leases	1,115 properties	1,154 properties	1,153 properties
WA Lease Term	7.6 yrs	7.4 yrs	7.3 yrs
Acquisitions ($, cap rate)	$15.9M @ 6.9%	$45.5M @ 7.2%	$70.7M @ 7.2%
Net Debt / Adj. EBITDAre	5.6x	5.7x	5.3x (4.9x incl. forwards)
Liquidity	$277M	$240M	$382M ($393M incl. Oct)

Non-GAAP reconciliation highlights (Q3): FFO adds back D&A and real estate gains/losses; AFFO adjusts for straight-line rent, stock comp, non-cash financing costs, other non-cash items .

Estimates: S&P Global consensus (EPS/FFO/AFFO/Revenue) was unavailable at the time of analysis; no beat/miss assessment provided.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash G&A Expense	FY 2024	≈$17M (Q2 call)	≈$17M (reiterated)	Maintained
Quarterly Dividend/Share	Q3 2024	$0.345	$0.345 (declared)	Maintained
Acquisition Volume	2H24/Q4	No formal guidance	No formal guidance; expect active Q4	Maintained
Leverage Target	Ongoing	5.5x–6.0x target	5.5x–6.0x target; leverage at multiyear low	Maintained

Notes: Management does not provide specific acquisition pipeline/volume guidance; reiterated expectation of elevated activity into Q4 given improved cost of capital .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Cost of capital and equity funding	Cautious in H1; accretion borderline; $85M term loans in March; limited equity in Q2 ($2.4M)	Raised ~$224M equity via ATM since July; $100M forwards; turned acquisitions back on	Improving funding conditions; more active growth
Acquisition market & pricing	Q1: muted volume; Q2: 17 props at 7.2% cap; pipeline building	Q3: 21 props at 7.2% cap; larger Bloomin’ deal earlier in Q3; expect busy Q4	Accelerating activity with discipline
Tenant health & rent coverage	Coverage ~4.9x in Q1/Q2; high occupancy/collections	Coverage ~5x for reporting portfolio; continued high collections/occupancy	Stable-to-strong
Red Lobster	Q1/Q2: monitored; stores profitable; low rents; expected minimal disruption	Exited bankruptcy in September; all 18 stores affirmed; no rent cut; some rent increases	Risk receding
Portfolio concentration/diversification	Darden ~51%; growing auto/medical	Diversified further; Bloomin’ now #3 tenant; Darden <50% ABR milestone reached	Positive diversification
Debt maturities & leverage	No maturities until Nov 2025; 5.6–5.7x net debt/Adj. EBITDAre	Lowest leverage since 2019; 4.9x incl. forwards; active lender dialogue re: 2025 maturities	Strengthening
Macro/election/cap rates	Q2: narrowing bid-ask; cautious on cap rate trajectory	Seeing more liquidity; some sought pre-election certainty; election impacts hard to handicap	Liquidity improving; macro watch
Lease escalators	Typical 1.5%/yr or 10%/5yr; largely unchanged	Escalator structures consistent; landlord-favorable terms often paired with lower-credit tenants	Stable structures

Management Commentary

“We turned the acquisition machine back on with as much vigor as we turned it off… We raised over $224 million in equity… and have the lowest leverage we’ve had in nearly 5 years.”
“Our rent coverage in the third quarter was 5x for the majority of our portfolio that reports this figure… amongst the strongest coverage in the industry.”
“Red Lobster… exited bankruptcy in early September. All 18 of our stores were affirmed and remain open without any rent cut or disruption of payment.”
“During the quarter, we acquired 21 properties for $71 million at a 7.2% cap rate… the largest transaction was a $66 million portfolio of 20 Bloomin’ Brands restaurants.”
“Cash G&A expense… was $4 million, representing 6.9% of cash rental income… We continue to expect cash G&A will be approximately $17 million for 2024.”

Q&A Highlights

Pipeline and market depth: More liquidity and ability to bridge 10–15 bps on cap rates; mix of one-offs and small portfolios expected, with active Q4 .
Tenant/brand health: Focus remains on large, creditworthy corporates; brands offering consumer value are outperforming (e.g., Chili’s, Darden) .
Macro/election: Some deals aimed to sign before election; management sees limited edge in predicting election second-order effects .
Capital strategy: Open to term loans, private notes, public bonds; using equity window prudently to maintain sub-5x leverage .
Lease economics: Escalators remain typically ~1.5% per year or 10% every 5 years; structures unchanged despite market volatility .
Asset specifics: Bloomin’ acquisitions “tippy top” quality on FCPT’s scorecard; WellNow brand reclassification did not change underlying guarantees .

Estimates Context

S&P Global Wall Street consensus estimates (EPS/FFO/AFFO/Revenue) were unavailable at the time of analysis; we therefore cannot quantify beat/miss or magnitude of surprise versus consensus for Q3 (consensus estimates unavailable via S&P Global at analysis time).

Key Takeaways for Investors

External growth is back with discipline: acquisitions at ~7.2% cash yields funded by accretive equity and ample liquidity, supporting AFFO growth into Q4/2025 .
Balance sheet strength and flexibility improved; leverage at multi‑year lows, undrawn revolver, and forward equity provide capacity to capitalize on pipeline .
Portfolio resilience remains a differentiator (collections, occupancy, coverage), with de‑risked exposure to challenged subsectors and Red Lobster resolved favorably .
Diversification milestone achieved (Darden <50% ABR) driven by Bloomin’ Brands portfolio; multi‑sector strategy (restaurant/auto/medical retail) broadens opportunity set .
Near-term trading catalysts: continued acquisition announcements, sustained equity/debt cost improvements, and progress on 2025 debt refinancing could drive multiple and estimate revisions .
Watch items: per-share metrics remain flat YoY; execution on scaling accretively while holding G&A efficiency and maintaining credit quality is key .
Note minor disclosure nuance: Q3 press release shows 1,153 properties at 9/30; the call cited 1,176 leases reflecting post-quarter activity—underlining ongoing late-Q3/early-Q4 momentum .

Additional context and prior quarters:

Q2 2024: Revenue $66.5M; AFFO/share $0.43; acquisitions $45.5M at 7.2%; 99.8% collections; net debt/Adj. EBITDAre 5.7x .
Q1 2024: Revenue $66.5M; AFFO/share $0.43; acquisitions $15.9M at 6.9%; 99.7% collections; net debt/Adj. EBITDAre 5.6x .

Press releases relevant to Q3 activity:

Bloomin’ Brands acquisition ($66.4M; Outback/Carrabba’s under two master leases), making Bloomin’ FCPT’s #3 tenant and reducing Darden to <50% of ABR .
Q3 dividend declared: $0.345 per share .
Tires Plus acquisition ($2.1M) during October (early Q4), indicative of continuing deal flow .

All figures and statements cited from FCPT’s Q3 press release and 8‑K exhibits, Q3/Q2/Q1 earnings call transcripts, and relevant press releases as referenced above.

Four Corners Property Trust, Inc. (FCPT)·Q3 2024 Earnings Summary