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Four Corners Property Trust, Inc. (FCPT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered steady growth and strong portfolio quality: total revenues rose 4.9% year over year to $68.3M, rental revenue rose 5.4% to $60.7M, AFFO per diluted share increased to $0.44, and FFO per diluted share held at $0.41; diluted GAAP EPS was $0.27 .
  • Capital position improved materially: FCPT upsized and extended its unsecured credit facility to $940M in January (revolver to $350M and new $225M term loan), eliminating near-term maturities and expanding liquidity to >$345M at quarter-end; net debt/adj. EBITDAre was 5.4x (4.9x inclusive of forward equity) .
  • Investment momentum accelerated: FCPT acquired 45 properties in Q4 for $132.5M at a 7.0% cap rate and $265M for the year at a 7.1% cap, while maintaining tight underwriting and avoiding problem subsectors; occupancy remained 99.6% with rent collections of 99.4% in the quarter .
  • Dividend catalyst: the Board raised the quarterly dividend 2.9% to $0.355 per share (payable Jan 15, 2025), supporting cash return while AFFO/share grew; management reiterated no formal guidance but expects continued disciplined growth supported by stronger cost of capital .
  • Estimates note: S&P Global consensus EPS and revenue for Q4 2024 were unavailable at the time of this analysis due to access limits, so beats/misses vs Street cannot be assessed.

What Went Well and What Went Wrong

What Went Well

  • Acquisition engine re-accelerated with discipline: 45 properties for $132.5M at a 7.0% cap in Q4; $265M at 7.1% cap in 2024; continued diversification into medical retail and auto service with strong tenant credit and long lease terms .
  • Balance sheet and liquidity fortified: credit facility upsized/extended to 2029, ~$500M liquidity post-refinancing, fixed charge coverage 4.5x, and leverage at 4.9x including forward equity—providing ample capacity for accretive growth .
  • Portfolio quality and resilience: 99.6% occupancy, 99.4% rent collected in Q4, tenant EBITDAR coverage ~4.9x; no or near-zero exposure to at-risk net lease subsectors (theaters, pharmacies, big box) .

What Went Wrong

  • Sequential rent collections dipped modestly (40 bps) vs Q3 due to timing of December acquisitions transitioning rent remittances, not credit stress; management flagged no material issues .
  • G&A trajectory set to rise in 2025 with platform scaling (cash G&A expected $18.0–$18.5M vs ~$16.8M in 2024), modestly pressuring expense ratios even as scale benefits continue .
  • Street comparison unavailable: S&P Global EPS and revenue consensus for Q4 2024 were not accessible due to request limits, limiting precision of beat/miss analysis this quarter.

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Total Revenues ($USD Millions)$66.48 $66.79 $68.34
Rental Revenue ($USD Millions)$58.54 $59.29 $60.73
Restaurant Revenue ($USD Millions)$7.94 $7.50 $7.60
Net Income Attributable to Common ($USD Millions)$24.67 $25.58 $26.18
Diluted GAAP EPS ($USD)$0.27 $0.27 $0.27
FFO per Diluted Share ($USD)$0.41 $0.41 $0.41
AFFO per Diluted Share ($USD)$0.43 $0.43 $0.44
Cash Rental Income ($USD Millions)$57.9 $58.7 $60.8
YoY and QoQ ChangeQ2 2024Q3 2024Q4 2024
Total Revenues YoY (%)+9.5% (vs $60.69M) +3.0% (vs $64.84M) +4.9% (vs $65.14M)
Rental Revenue YoY (%)+10.8% +3.6% +5.3%
AFFO/Share YoY (cents)+1¢ to $0.43 +1¢ to $0.43 +1¢ to $0.44
Total Revenues QoQ (%)—+0.5% +2.3%

Segment Breakdown

Segment Revenues ($USD Millions)Q2 2024Q3 2024Q4 2024
Rental Revenue$58.54 $59.29 $60.73
Restaurant Revenue$7.94 $7.50 $7.60
Total Revenues$66.48 $66.79 $68.34

KPIs and Balance Sheet

KPIQ2 2024Q3 2024Q4 2024
Occupancy (%)99.6% 99.6% 99.6%
Rent Collection (Quarter) (%)99.8% 99.8% 99.4%
ABR Run-Rate ($USD Millions)$223.6 $229.0 $240.2
Acquisitions ($USD Millions / # / Cap Rate)$45.5 / 17 / 7.2% $70.7 / 21 / 7.2% $132.5 / 45 / 7.0%
Liquidity ($USD Millions)$240 (cash $17; revolver $223) $382–$393 (cash $44; forwards $88; revolver $250) $347 (cash $4; forwards $98; revolver $245)
Net Debt / Adj. EBITDAre (x)5.7x 5.3x (4.9x incl. forwards) 5.4x (4.9x incl. forwards)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal financial guidance2025None provided None provided Maintained (no guidance)
Cash G&A Expense ($USD Millions)FY 2025~$17.0 (FY 2024 expectation) $18.0–$18.5 Raised
Dividend per Share ($USD)Q4 2024$0.3450 (Q3 2024) $0.3550 Raised (+2.9%)
Leverage PolicyOngoingTarget 5.5x–6.0x max leverage Target 5.5x–6.0x max leverage Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Acquisition cadence & cap ratesRe-entering “green zone”; cap rates low 7s; pipeline building Accelerated activity incl. Bloomin’ portfolio; expect active Q4; disciplined pricing $133M in Q4 at ~7.0% cap; expect similar cap rates in 2025 Improving/stable pricing
Balance sheet, liquidityLiquidity $240M; net debt/EBITDAre 5.7x Liquidity $382–$393M; net debt/EBITDAre 4.9x incl. forwards ~$500M liquidity post-facility; 4.9x incl. forwards; options for public bonds/term loans Strengthening
Portfolio quality/creditAvoids problem subsectors; high collections/occupancy Red Lobster affirmed; strong rent coverage; Darden <50% ABR Rent coverage 4.9x; continued avoidance of risky sectors; Darden 48% ABR Stable/positive
Tariffs/macro sensitivity—Election uncertainty; limited competitive advantage in predicting outcomes Tariff inflation on materials not a direct negative; higher replacement costs help renewals Neutral/constructive
Rent collections sequential trend99.8% collected 99.8% collected 99.4% (timing of Dec acquisitions), no credit issue Slight sequential dip, benign
Regulatory/labor——No notable labor policy impacts observed Stable
Diversification mixMedical/auto weighted acquisitions Restaurant-heavy Q3 deal (Bloomin’); non-restaurant 21% ABR Even split across restaurant/medical/auto in Q4 acquisitions Balanced

Management Commentary

  • “We ended the year with $265 million of acquisitions at a blended 7.1% cap rate… While the market remains volatile, we have already raised significant debt and equity capital… all while maintaining a low leverage profile.” — CEO Bill Lenehan, press release .
  • “Our rent coverage in the fourth quarter was 4.9x… We have 0 or near 0 exposure to problem net lease subsectors… We also have no exposure to the string of recent high-profile retail bankruptcies.” — CEO Bill Lenehan, prepared remarks .
  • “We reported Q4 AFFO of $0.44 per share… cash rental income was $60.8 million… Cash G&A expense… was $3.9 million… we are expecting cash G&A will be in the range of $18–$18.5 million for 2025.” — CFO Patrick Wernig .
  • “Following the facility refinancing, we now have approximately $500 million in liquidity… conservative pro forma net leverage of 5.1x, including unsettled equity forwards.” — CFO Patrick Wernig .

Q&A Highlights

  • Portfolio trends and rent collections: No material pockets of weakness; modest sequential collections dip due to acquisition timing, not credit .
  • Funding options: Evaluating public bonds vs private notes vs term loans; revolver upsized in anticipation of maintaining optionality .
  • Mix and diversification: Non-restaurant retail and auto/medical expected to continue as material parts of the pipeline; no quotas, but balanced opportunity set .
  • Darden lease roll in 2027+: Expect very high renewal rates given ~6x coverage and favorable lease structures with 1.5% escalators .
  • Competition/sourcing: Organization, certainty of close, and patient pricing helped win deals; many transactions cultivated over years as sellers accepted modestly higher cap rates .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable at the time of analysis due to access limits; as a result, we cannot quantify beat/miss versus Street for EPS and revenue this quarter. FCPT does not provide formal financial guidance, but commentary suggests continued disciplined external growth on an improved cost of capital .

Key Takeaways for Investors

  • External growth re-accelerating with quality: $133M acquired in Q4 at 7.0% cap, with continued diversification into medical retail and auto service, supported by strong tenant credit and long lease terms .
  • Strengthened balance sheet reduces risk: Facility upsized/extended, staggered maturities, high fixed-rate mix and ~$345M+ liquidity at quarter-end, positioning FCPT to fund accretive acquisitions without undue leverage .
  • Portfolio remains defensive: 99.6% occupancy, 99.4% Q4 collections, ~4.9x tenant coverage, minimal exposure to higher-risk subsectors; underpinning stability of AFFO/share growth .
  • Dividend growth supported by AFFO: Quarterly dividend raised to $0.355; AFFO/share grew to $0.44 despite sector volatility—supports income thesis .
  • Near-term trading lens: Watch continued acquisition press releases and any public bond issuance as catalysts; momentum plus liquidity could sustain multiple and AFFO growth if cap rates remain ~2024 levels .
  • Medium-term thesis: Granular, disciplined underwriting, diversified tenant base, and a “shareholders-first” capital allocation framework should continue to drive stable cash flows and prudent external growth .
  • Key watch-items: 2025 cash G&A increases as platform scales, and execution on lease renewals beyond 2026 (especially Darden roll), though management confidence and coverage metrics are strong .

Sources: press release and 8-K exhibits ; earnings call transcript ; prior quarter press releases and calls ; credit facility press release ; additional Q4-related acquisition releases .