Four Corners Property Trust, Inc. (FCPT) Bundle
A Brief History of Four Corners Property Trust, Inc.
Four Corners Property Trust, Inc. (FCPT) was established on November 11, 2015, as a real estate investment trust (REIT) focusing on acquiring and managing net lease properties. The company's operational strategy is centered on investing in properties leased to high-quality tenants, primarily in the restaurant sector.
Company Growth and Acquisitions
As of September 30, 2024, FCPT has acquired a total of 48 leased properties over the last year, contributing to a year-over-year rental revenue increase of $14.1 million, or 8.7%. This growth reflects a robust acquisition strategy and a stable tenant base.
| Year | Properties Acquired | Total Investment ($ millions) | Occupied Properties (%) | Average Lease Term (years) |
|---|---|---|---|---|
| 2024 | 48 | 136.7 | 100 | 11.7 |
| 2023 | 90 | 328.5 | 100 | 11.9 |
Financial Performance
For the nine months ended September 30, 2024, FCPT reported a net income of $74.388 million, compared to $71.003 million for the same period in 2023. The increase in net income is attributed to effective management of operating expenses and strategic acquisitions.
| Financial Metric | 2024 ($ millions) | 2023 ($ millions) |
|---|---|---|
| Net Income | 74.388 | 71.003 |
| Total Revenue | 199.737 | 189.547 |
| Operating Expenses | 88.938 | 83.857 |
| Dividends Paid | 94.889 | 88.991 |
Capital Structure and Financing
FCPT maintains a conservative capital structure, with a total of $625 million in senior unsecured fixed-rate notes as of September 30, 2024. Additionally, the company has entered into several interest rate swaps to hedge against interest rate fluctuations, managing $460 million of variable-rate debt.
| Debt Type | Outstanding Balance ($ millions) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| Term Loan | 515 | 6.32 | 2025-2028 |
| Senior Fixed Rate Notes | 625 | 2.74 - 4.93 | 2026-2030 |
Market Position and Future Outlook
FCPT has positioned itself strategically within the net lease market, focusing on high-quality tenants in the restaurant industry. The company holds approximately $483.3 million available for issuance under its At-The-Market (ATM) programs as of September 30, 2024, allowing for further growth through property acquisitions.
A Who Owns Four Corners Property Trust, Inc. (FCPT)
Ownership Structure
Ownership Structure
As of September 30, 2024, Four Corners Property Trust, Inc. (FCPT) had approximately 96,510,405 shares of common stock outstanding. The company was primarily owned by institutional investors, with a significant percentage of its shares held by various investment funds.
Major Shareholders
The following table summarizes the major shareholders of FCPT as of September 30, 2024:
| Shareholder | Type | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 9,573,408 | 9.91% |
| BlackRock, Inc. | Institutional | 8,675,044 | 8.99% |
| State Street Corporation | Institutional | 6,250,134 | 6.48% |
| Invesco Ltd. | Institutional | 5,000,000 | 5.19% |
| Other Institutional Investors | Various | 66,011,815 | 68.43% |
Noncontrolling Interest
At September 30, 2024, FCPT owned approximately 99.88% of its Operating Partnership Units (OP units), with the remaining 0.12%, or 114,559 OP units, held by unaffiliated limited partners. The redemption value of outstanding non-controlling interest OP units was $3.4 million as of September 30, 2024.
Recent Stock Issuances
During the nine months ended September 30, 2024, FCPT issued 4,792,842 shares under its at-the-market (ATM) program, raising net proceeds of $125.3 million. The gross weighted average share price for these issuances was $26.63.
Insider Ownership
Insider ownership plays a crucial role in the governance of FCPT. As of September 30, 2024, executive officers and directors owned approximately 2.5% of the total shares outstanding. This level of insider ownership aligns the interests of management with those of shareholders.
Stock Performance
As of September 30, 2024, FCPT's stock was trading at approximately $26.30. The company's market capitalization was estimated at around $2.54 billion.
Dividend Distribution
FCPT has a history of consistent dividend payments, declaring a dividend of $0.3450 per share for Q3 2024. For the nine months ended September 30, 2024, total dividends paid to shareholders amounted to approximately $94.9 million.
Four Corners Property Trust, Inc. (FCPT) Mission Statement
Overview
The mission of Four Corners Property Trust, Inc. (FCPT) focuses on acquiring, owning, and managing high-quality, income-generating properties primarily leased to strong, creditworthy tenants. The company aims to deliver stable and growing cash flows to its shareholders through its real estate investments, particularly in the restaurant sector.
Key Components of the Mission Statement
- Acquisition Strategy: FCPT seeks to expand its portfolio through the acquisition of properties that are 100% leased to reputable tenants. The aim is to enhance the company's overall value and sustainability.
- Tenant Quality: The company prioritizes leasing to investment-grade tenants and those with strong financial positions, ensuring reliable income streams.
- Long-term Growth: FCPT is committed to long-term capital appreciation and growth in shareholder value through prudent management and strategic investments.
Financial Highlights as of September 30, 2024
The following table summarizes key financial metrics relevant to FCPT's mission and operational effectiveness:
| Metric | Value |
|---|---|
| Net Income (9 months) | $74.4 million |
| Rental Revenue (9 months) | $176.4 million |
| General and Administrative Expenses (9 months) | $18.1 million |
| Depreciation and Amortization (9 months) | $40.4 million |
| Total Real Estate Investments, Net | $2.3 billion |
| Average Common Shares Outstanding (Diluted) | 94.9 million |
| Weighted Average Interest Rate on Term Loans | 6.29% |
| Number of Properties Owned | 1,153 |
| Occupancy Rate | 99.6% |
| Investment-Grade Tenancy (by annualized base rent) | 57% |
Investment Strategy
FCPT's investment strategy is centered on acquiring properties with long-term leases that provide predictable cash flows. The company focuses on properties in prime locations that are occupied by well-established brands, ensuring sustained demand and rental income:
- Acquisitions: In the nine months ended September 30, 2024, FCPT invested $136.7 million in 42 properties.
- Lease Characteristics: The acquired properties have a weighted average remaining lease term of 11.7 years.
- Cash Flow Management: FCPT utilizes its cash flows to fund operating expenses, dividends, and further acquisitions, ensuring a balanced approach to growth and shareholder returns.
Market Position
FCPT operates in a competitive market with a focus on the restaurant sector, leveraging long-term relationships with strong tenants. The company's ability to maintain high occupancy rates and stable rental income is a testament to its effective management and strategic positioning:
| Market Position Metric | Value |
|---|---|
| Average Remaining Lease Term | 7.3 years |
| Contractual Base Rent Collected (Q3 2024) | 99.8% |
| Percentage of Rental Revenue from Investment-Grade Tenants | 57% |
| Total Future Minimum Lease Payments | $1.83 billion |
Conclusion
FCPT’s mission statement embodies its commitment to providing value through strategic property acquisitions and management, focusing on high-quality tenants and long-term growth. The company’s financial performance and market strategy reflect its dedication to achieving these goals while delivering stable returns to its shareholders.
How Four Corners Property Trust, Inc. (FCPT) Works
Business Overview
Four Corners Property Trust, Inc. (FCPT) is primarily engaged in the ownership, acquisition, and leasing of restaurant and retail properties. The company operates through Four Corners Operating Partnership, LP (FCPT OP), and focuses on acquiring properties leased to high-quality tenants.
Financial Performance
For the nine months ended September 30, 2024, FCPT reported:
- Net income: $74.388 million
- Total revenues: $199.737 million
- Rental revenue: $176.400 million
- General and administrative expenses: $18.064 million
- Depreciation and amortization: $40.418 million
- Interest expense: $36.929 million
Capital Structure
As of September 30, 2024, FCPT's capital structure included:
- Total debt: $1.132 billion
- Revolving credit facility capacity: $250 million
- Cash and cash equivalents: $44.495 million
Shareholder Returns
FCPT declared dividends as follows:
- Dividends declared per common share (2024): $1.035
- Dividends declared per common share (2023): $1.020
Real Estate Portfolio
As of September 30, 2024, FCPT's real estate portfolio included:
- 1,153 properties across 47 states
- Aggregate leasable area: 7.8 million square feet
- Occupancy rate: 99.6%
- Average remaining lease term: 7.3 years
- Investment-grade tenancy: 57% (weighted by annualized base rent)
Recent Acquisitions
During the nine months ended September 30, 2024, FCPT acquired:
- 42 properties for a total investment value of $136.7 million
Cash Flow Analysis
For the nine months ended September 30, 2024, FCPT's cash flow details were as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net cash provided by operating activities | $110,691 |
| Net cash used in investing activities | ($136,763) |
| Net cash provided by financing activities | $45,784 |
Debt Obligations
As of September 30, 2024, FCPT's debt obligations included:
- Term loans: $515 million
- Senior unsecured fixed rate notes: $625 million
Interest Rate Management
FCPT has entered into interest rate swaps to hedge against variability in interest rates, with notional amounts totaling:
| Notional Amount (in thousands) | Effective Date | Maturity Date | Fixed Rate | Variable Rate |
|---|---|---|---|---|
| $150,000 | 11/09/2022 | 11/09/2024 | 1.88% | Daily Simple SOFR + 10 bps |
| $50,000 | 10/25/2022 | 11/09/2025 | 0.44% | Daily Simple SOFR + 10 bps |
Operational Segments
FCPT operates primarily in two segments: Real Estate Operations and Restaurant Operations. The financial performance for these segments for the nine months ended September 30, 2024 is summarized as follows:
| Segment | Rental Revenue (in thousands) | Restaurant Revenue (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|
| Real Estate Operations | $176,400 | $0 | $176,400 |
| Restaurant Operations | $0 | $23,337 | $23,337 |
| Total | $176,400 | $23,337 | $199,737 |
Earnings Per Share
FCPT's earnings per share for the three months ended September 30, 2024 were:
- Basic: $0.27
- Diluted: $0.27
How Four Corners Property Trust, Inc. (FCPT) Makes Money
Revenue Generation Model
Four Corners Property Trust, Inc. (FCPT) primarily generates its revenue through leasing properties to tenants under net lease arrangements. In these arrangements, tenants are responsible for ongoing costs associated with the properties, such as utilities, property taxes, insurance, and maintenance.
Property Portfolio Overview
As of September 30, 2024, FCPT's lease portfolio includes:
- 1,153 properties located across 47 states.
- Aggregate leasable area of 7.8 million square feet.
- 99.6% occupancy rate based on leasable square footage.
- Average remaining lease term of 7.3 years.
- Average annual rent escalation of 1.4% through December 31, 2029.
- 99.8% of contractual base rent collected for the three months ended September 30, 2024.
- 57% investment-grade tenancy, weighted by annualized base rent.
Financial Performance
FCPT's financial performance for the three and nine months ended September 30, 2024, is summarized in the following table:
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Rental Revenue | $59,288,000 | $57,243,000 | $176,400,000 | $162,267,000 |
| Restaurant Revenue | $7,503,000 | $7,596,000 | $23,337,000 | $23,196,000 |
| Total Revenues | $66,791,000 | $64,839,000 | $199,737,000 | $185,463,000 |
| Net Income | $25,612,000 | $24,192,000 | $74,388,000 | $71,003,000 |
Operating Expenses
FCPT's operating expenses for the three and nine months ended September 30, 2024, are detailed below:
| Expense Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| General and Administrative | $5,847,000 | $5,498,000 | $18,064,000 | $17,153,000 |
| Depreciation and Amortization | $13,606,000 | $13,418,000 | $40,418,000 | $37,411,000 |
| Property Expenses | $2,614,000 | $2,916,000 | $8,531,000 | $8,742,000 |
| Restaurant Expenses | $7,029,000 | $7,229,000 | $21,925,000 | $21,721,000 |
| Total Operating Expenses | $29,096,000 | $29,061,000 | $88,938,000 | $85,027,000 |
Debt and Financing Activities
As of September 30, 2024, FCPT's debt consists of:
- $515 million of non-amortizing term loans.
- $625 million of senior, unsecured, fixed-rate notes.
- Available borrowing capacity of $250 million under a revolving credit facility.
Stock Performance and Issuance
During the three months ended September 30, 2024, FCPT issued 4,412,272 shares at a net weighted average share price of $26.30, resulting in net proceeds of $116 million. For the nine months ended September 30, 2024, the total shares issued amounted to 4,792,842 at a net weighted average share price of $26.15, yielding net proceeds of $125.3 million.
Future Lease Payments
The following table outlines the future minimum lease payments as of September 30, 2024:
| Year | Future Minimum Lease Payments |
|---|---|
| 2024 | $57,563,000 |
| 2025 | $230,150,000 |
| 2026 | $229,198,000 |
| 2027 | $221,359,000 |
| 2028 | $195,210,000 |
| Thereafter | $893,569,000 |
| Total | $1,827,049,000 |
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Article updated on 8 Nov 2024
Resources:
- Four Corners Property Trust, Inc. (FCPT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Four Corners Property Trust, Inc. (FCPT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Four Corners Property Trust, Inc. (FCPT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.