Four Corners Property Trust, Inc. (“FCPT” or the “Company”,
NYSE: FCPT) today announced financial results for the second
quarter and six months ended June 30, 2017.
A supplemental financial and operating report that contains
non-GAAP measures and other defined terms, along with this press
release, has been posted to the investor relations section of the
Company’s website at http://investors.fcpt.com/.
Q2 and Year to Date 2017
Highlights:
- Second quarter net income attributable
to common shareholders of $18.3 million, or $0.30 per diluted
share, including a $3.3 million gain on the sale of an Olive Garden
property. These results compared to net income of $14.8 million, or
$0.25 per diluted share, for the same period in 2016.On a year to
date basis, the Company reported net income attributable to common
shareholders of $33.8 million. After excluding the $3.3 million
gain on sale in 2017 and the one-time, non-cash tax benefit of
$80.4 million included in the 2016 results, the Company’s net
income was $30.5 million, or $0.51 per diluted share for 2017,
which compared to net income of $28.7 million, or $0.48 per diluted
share, for the same period in 2016.
- Second quarter GAAP rental income of
$28.3 million, representing an increase of 8.2% when compared to
the same period in 2016 and consisting of $25.9 million in cash
rents and $2.4 million of straight-line rent adjustments.
- Second quarter NAREIT-defined Funds
from Operations (FFO) of $20.6 million, or $0.34 per diluted share,
representing an increase of 1.6% in per diluted share results
compared to the same period in 2016.Year to date FFO of $41.6
million, or $0.69 per diluted share, representing an increase of
4.4% in per diluted share results compared to the same period in
2016.
- Second quarter Adjusted Funds from
Operations (AFFO) of $19.3 million, or $0.32 per diluted share,
representing an increase of 4.2% in per diluted share results
compared to the same period in 2016.Year to date AFFO of $38.9
million, or $0.64 per diluted share, representing an increase of
6.3% in per diluted share results compared to the same period in
2016.
- Second quarter general and
administrative (G&A) expenses of $3.5 million including $0.7
million of non-cash, stock-based compensation.Year to date cash
G&A expenses (after excluding non-cash, stock-based
compensation) were 10.0% of cash rental income, compared to 10.8%
of cash rental income for the same period in 2016.
- Declared regular dividend of $0.2425
per common share for the second quarter of 2017.
- Acquired in the second quarter 23
restaurant properties in two transactions with a combined
investment value of $51.1 million, at an initial weighted average
cash yield of 7.0%, and a weighted average lease term of 20.0
years.
- Sold an Olive Garden property in the
second quarter for a gross sales price of $5.2 million,
representing a 5.1% cash capitalization rate.
- Issued 1,167,092 common shares in the
second quarter via the Company’s At-The-Market (ATM) stock offering
program. The shares were sold at a weighted average share price of
$24.29, generating $28.3 million in gross proceeds, excluding
brokerage and other issuance costs.
- At quarter-end, FCPT had $525 million
of outstanding debt, including $125 million of unsecured fixed rate
notes that closed on June 7, 2017. FCPT was undrawn on its $350
million revolving credit facility, and had $81.3 million of
available cash and cash equivalents.
Management Comments:
“June 30 marked the end of a full year with our acquisition team
and processes, and we are quite pleased with the results. Over that
period, we closed on over $160 million of acquisitions across 91
properties, with an average initial cash capitalization rate of
6.7% and 18 years of lease term,” said Bill Lenehan, Chief
Executive Officer. “In the second quarter, we also executed on an
inaugural investment grade note financing at an attractive
long-term rate, and raised $28.3 million of gross proceeds under
our ATM equity program. We ended the quarter well positioned to
fund our acquisition strategy while maintaining a net debt to
EBITDA level of 4.4x which is well below our targeted level of 5.5x
to 6.0x.”
Real Estate Portfolio:
As of June 30, 2017, the Company’s rental portfolio consisted of
506 restaurant properties located in 44 states. The properties are
100% occupied under long-term, triple-net leases with a weighted
average remaining lease term of approximately 13.4 years and an
estimated portfolio weighted average EBITDAR to Lease Rent coverage
of 4.7x.
Conference Call
Information:
Company management will host a conference call and audio webcast
on Thursday, August 3, 2017 at 11:00 am Eastern Time to discuss the
results.
Interested parties can listen to the call via the following:
Internet: Go to
http://dpregister.com/10110505 at
least 15 minutes prior to start time of the call in order to
register and to download any necessary audio software. Please note
for those that register, the dial-in number will be provided upon
registration.
Phone: 1-888-346-5243 (domestic) /
1-412-317-5120 (international). Participants not pre-registered
must ask to be joined into the Four Corners Property Trust
call.
Replay: Available through November 3, 2017 by
dialing 1-877-344-7529 (domestic) / 1-412-317-0088 (international),
Access Code 10110505.
About FCPT:
FCPT is a real estate investment trust primarily engaged in the
acquisition and leasing of restaurant properties. The Company seeks
to grow its portfolio by acquiring additional real estate to lease,
on a triple-net basis, for use in the restaurant and related food
services industry.
Cautionary Note Regarding
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements include all statements that are not historical
statements of fact and those regarding the Company’s intent, belief
or expectations, including, but not limited to, statements
regarding: operating and financial performance; and expectations
regarding the making of distributions and the payment of dividends.
Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),”
“believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)”
and similar expressions, or the negative of these terms, are
intended to identify such forward-looking statements.
Forward-looking statements speak only as of the date on which such
statements are made and, except in the normal course of the
Company’s public disclosure obligations, the Company expressly
disclaims any obligation to publicly release any updates or
revisions to any forward-looking statements to reflect any change
in the Company’s expectations or any change in events, conditions
or circumstances on which any statement is based. Forward-looking
statements are based on management’s current expectations and
beliefs and the Company can give no assurance that its expectations
or the events described will occur as described. Forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results to differ materially from those set
forth in or implied by such forward-looking statements.
Factors that could have a material adverse effect on the
Company’s operations and future prospects or that could cause
actual results to differ materially from the Company’s expectations
are included in the sections entitled “Business,” “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” of the Company’s Annual Report on Form
10-K filed with the Securities and Exchange Commission on February
27, 2017.
Notice Regarding Non-GAAP Financial
Measures:
In addition to U.S. GAAP financial measures, this press release
and the referenced supplemental financial and operating report
contain and may refer to certain non-GAAP financial measures. These
non-GAAP financial measures are in addition to, not a substitute
for or superior to, measures of financial performance prepared in
accordance with GAAP. These non-GAAP financial measures should not
be considered replacements for, and should be read together with,
the most comparable GAAP financial measures. Reconciliations to the
most directly comparable GAAP financial measures and statements of
why management believes these measures are useful to investors are
included in the supplemental financial and operating report, which
can be found in the investor relations section of our website.
Supplemental Materials and
Website:
Supplemental materials on the Second Quarter 2017 operating
results and other information on the Company are available on the
investors relations section of FCPT’s website at
www.investors.fcpt.com.
Four Corners Property Trust
Consolidated Statements of
Income
(Unaudited)
(In thousands, except share and per
share data)
Three Months Ended June 30, Six Months Ended June
30, 2017 2016
2017 2016 Revenues: Rental
income $ 28,327 $ 26,192 $ 56,091 $ 52,385 Restaurant revenues
4,826 4,701 9,766
9,560 Total revenues 33,153 30,893 65,857 61,945 Operating
expenses: General and administrative 3,459 2,508 6,316 5,826
Depreciation and amortization 5,426 5,101 10,829 10,288 Restaurant
expenses 4,583 4,593 9,251 9,291 Interest expense 4,508
3,858 8,604 8,039 Total
operating expenses 17,976 16,060 35,000 33,444 Other income
34 18 39 78 Realized gain on sale, net 3,291 -
3,291 - Income before income tax
18,502 14,851 34,187 28,579 Income tax (expense) benefit (1)
(61 ) (50 ) (106 ) 80,506 Net income
18,441 14,801 34,081 109,085 Net income attributable to
noncontrolling interest (128 ) - (245 )
-
Net Income Attributable to Common Shareholders $
18,313 $ 14,801 $ 33,836 $ 109,085
Basic net income per share $ 0.30 $ 0.25 $ 0.56 $ 2.02 Diluted net
income per share $ 0.30 $ 0.25 $ 0.56 $ 1.84 Regular dividends
declared per share $ 0.2425 $ 0.2425 $ 0.4850 $ 0.4850
Weighted-average shares outstanding: Basic 60,319,521 59,830,284
60,125,477 54,102,565 Diluted 60,430,606 59,844,059 60,215,050
59,271,807 (1) The 2016 results include a $80.4 million
income tax benefit which was principally the result of the reversal
of deferred tax liabilities recognized in connection with the
Company's election to be taxed as a REIT.
Four Corners
Property Trust Consolidated Balance Sheets (In
thousands, except share and per share data)
June 30, 2017 (Unaudited)
December 31, 2016 ASSETS Real estate investments:
Land $ 441,035 $ 421,941 Buildings, equipment and improvements
1,098,306 1,055,624 Total real estate
investments 1,539,341 1,477,565 Less: Accumulated depreciation
(589,913 ) (583,307 ) Total real estate investments,
net 949,428 894,258 Real estate held for sale 1,691 - Cash and cash
equivalents 81,328 26,643 Deferred rent 16,389 11,594 Derivative
assets 1,630 837 Other assets 3,827 3,819
Total Assets $ 1,054,293 $ 937,151
LIABILITIES AND EQUITY Liabilities: Revolving
facility ($350,000 available capacity) $ - $ 45,000 Term loan
($400,000, net of deferred financing costs) 394,691 393,895
Unsecured notes ($125,000, net of deferred financing costs) 123,327
- Dividends payable 14,820 14,519 Deferred rental revenue 8,228
7,974 Deferred tax liabilities 157 196 Other liabilities
4,932 5,450 Total liabilities 546,155
467,034 Equity: Preferred stock,
$0.0001 par value per share, 25,000,000 shares
authorized, zero shares issued and
outstanding
- - Common stock, $0.0001 par value per share, 500,000,000 shares
authorized, 61,193,753 and 59,923,557
shares issued and outstanding
at June 30, 2017 and December 31, 2016,
respectively
6 6 Additional paid-in capital 468,933 438,864 Accumulated other
comprehensive income 1,059 207 Noncontrolling interest 7,717 5,097
Retained earnings 30,423 25,943 Total
equity 508,138 470,117
Total
Liabilities and Equity $ 1,054,293 $ 937,151
Four Corners Property Trust FFO and AFFO
(Unaudited) (In thousands, except share and per share
data) Three Months Ended June
30, Six Months Ended June 30, 2017
2016 2017
2016 Funds from operations (FFO): Net income $
18,441 $ 14,801 $ 34,081 $ 109,085 Depreciation and amortization
5,426 5,101 10,829 10,288 Deferred tax benefit from REIT election -
- - (80,409 ) Realized gain on sales of real estate (3,291 )
- (3,291 ) -
FFO (as defined
by NAREIT) $ 20,576 $ 19,902
$ 41,619 $ 38,964
Non-cash stock-based compensation 704 429 1,198 742 Non-cash
amortization of deferred financing costs 415 398 813 796 Other
non-cash interest expense 11 55 63 435 Straight-line rent
(2,422 ) (2,595 ) (4,795 ) (5,191 )
Adjusted funds from operations (AFFO) $ 19,284
$ 18,189 $ 38,898
$ 35,746 Fully diluted shares
outstanding (1) 60,870,695 59,844,059 60,649,120 59,271,807
FFO per diluted share $ 0.34 $ 0.33 $ 0.69 $ 0.66
AFFO per diluted share $ 0.32 $ 0.30 $ 0.64 $ 0.60
(1) Assumes the issuance of common shares for OP units held by
non-controlling partners.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170802006410/en/
FCPTBill Lenehan,
415-965-8031CEOGerry Morgan, 415-965-8032CFO
Four Corners Property (NYSE:FCPT)
Historical Stock Chart
From Apr 2024 to May 2024
Four Corners Property (NYSE:FCPT)
Historical Stock Chart
From May 2023 to May 2024