Four Corners Property Trust, Inc. (“FCPT” or the “Company”,
NYSE: FCPT) today announced financial results for the three months
and twelve months ended December 31, 2023.
Management Comments
“2023 was a solid acquisition year. We grew rent 14% with $333
million of high-quality acquisitions,” said Bill Lenehan.
“Additionally, our portfolio continues to perform well with high
rent collections and occupancy, and we start the year with low
leverage. We remain disciplined allocators of capital and are
finding interesting investment opportunities as we focus on
building an accretive pipeline.”
Rent Collection Update
As of December 31, 2023, the Company has received rent payments
representing 99.8% of its portfolio contractual base rent for the
quarter ending December 31, 2023, and 99.9% for the year ending
December 31, 2023.
Financial Results
Rental Revenue and Net Income Attributable to Common
Shareholders
- Rental revenue for the fourth quarter increased 15.0% over the
prior year to $57.6 million. Rental revenue consisted of $57.0
million in cash rents and $0.6 million of straight-line and other
non-cash rent adjustments.
- Net income attributable to common shareholders was $24.4
million for the fourth quarter, or $0.27 per diluted share. These
results compare to net income attributable to common shareholders
of $22.9 million for the same quarter in the prior year, or $0.27
per diluted share.
- Net income attributable to common shareholders was $95.3
million for the twelve months ended December 31, 2023, or $1.07 per
diluted share. These results compare to net income attributed to
common shareholders of $97.8 million for the same twelve-month
period in 2022, or $1.20 per diluted share.
Funds from Operations (FFO)
- NAREIT-defined FFO per diluted share for the fourth quarter was
$0.41, representing a $0.01 increase compared to the same quarter
in 2022.
- NAREIT-defined FFO per diluted share for the twelve months
ended December 31, 2023 was $1.62, representing a $0.02 increase
compared to the same twelve-month period in 2022.
Adjusted Funds from Operations (AFFO)
- AFFO per diluted share for the fourth quarter was $0.43,
representing a $0.02 per share increase compared to the same
quarter in 2022.
- AFFO per diluted share for the twelve months ended December 31,
2023 was $1.67, representing a $0.03 per share increase compared to
the same twelve-month period in 2022.
General and Administrative (G&A) Expense
- G&A expense for the fourth quarter was $5.5 million, which
included $1.5 million of stock-based compensation. These results
compare to G&A expense in the fourth quarter of 2022 of $5.2
million, including $1.2 million of stock-based compensation.
- Cash G&A expense (after excluding stock-based compensation)
for the fourth quarter was $4.1 million, representing 7.1% of cash
rental income for the quarter.
Dividends
- FCPT declared a dividend of $0.345 per common share for the
fourth quarter of 2023.
Real Estate Portfolio
- As of December 31, 2023, the Company’s rental portfolio
consisted of 1,111 properties located in 47 states. The properties
are 99.8% occupied (measured by square feet) under long-term, net
leases with a weighted average remaining lease term of
approximately 7.8 years.
Acquisitions
- During the fourth quarter, FCPT acquired 6 properties for a
combined purchase price of $12.8 million at an initial weighted
average cash yield of 7.4%, on rents in place as of December 31,
2023 and a weighted average remaining lease term of 15.2
years.
Dispositions
- During the fourth quarter, FCPT sold one property for sales
price of $3.8 million representing $0.3 million of gain.
Liquidity and Capital
Markets
Capital Raising
- During the fourth quarter, the Company sold 1,017,364 shares of
Common Stock via the at-the-market (ATM) program at an average
price of $25.34 per share for net proceeds of $25.2 million.
Liquidity
- At December 31, 2023, FCPT had approximately $259 million of
available liquidity including $16 million of cash and cash
equivalents, $8 million of restricted cash from 1031 sales and $234
million of undrawn revolving credit facility capacity.
Credit Facility and Unsecured Notes
- At December 31, 2023, FCPT had $1,121 million of outstanding
debt, consisting of $430 million of term loans and $675 million of
unsecured fixed rate notes and $16 million of outstanding revolver
balance. FCPT’s leverage, as measured by the ratio of net debt to
adjusted EBITDAre, is 5.5x at quarter-end.
Conference Call
Information
Company management will host a conference call and audio webcast
on Thursday, February 15 at 11:00 a.m. Eastern Time to discuss the
results.
Interested parties can listen to the call via the following:
Phone: 1 833 470 1428 (domestic) or 1 404 975
4839 (international), Call Access Code: 601472
Live webcast:
https://events.q4inc.com/attendee/452973381
In order to pre-register for the call,
investors can visit
https://www.netroadshow.com/events/login?show=a4a4eaa5&confId=59555
Replay: Available through May 15, 2024 by
dialing 1 866 813 9403 (domestic) or 1 929 458 6194
(international), Replay Access Code 934206
About FCPT
FCPT, headquartered in Mill Valley, CA, is a real estate
investment trust primarily engaged in the ownership, acquisition
and leasing of restaurant and retail properties. The Company seeks
to grow its portfolio by acquiring additional real estate to lease,
on a net basis, for use in the restaurant and retail industries.
Additional information about FCPT can be found on the website at
fcpt.com.
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, announced
transactions, expectations regarding the making of distributions
and the payment of dividends, and the effect of pandemics on the
business operations of the Company and the Company’s tenants and
their continued ability to pay rent in a timely manner or at all.
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. For a
further discussion of these and other factors that could cause the
company’s future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors”
in the company’s most recent annual report on Form 10-K, and other
risks described in documents subsequently filed by the company from
time to time with the Securities and Exchange Commission.
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 Fourth Quarter 2023 operating
results and other information on the Company are available on the
investors relations section of FCPT’s website at
investors.fcpt.com.
Four Corners Property
Trust
Consolidated Statements of
Income
(In thousands, except share
and per share data)
Three Months Ended December 31, Twelve Months
Ended December 31,
2023
2022
2023
2022
(Unaudited) Revenues: Rental revenue
$
57,614
$
50,085
$
219,881
$
193,611
Restaurant revenue
7,529
7,279
30,725
29,583
Total revenues
65,143
57,364
250,606
223,194
Operating expenses: General and administrative
5,527
5,159
22,680
20,043
Depreciation and amortization
13,320
11,051
50,731
41,471
Property expenses
2,808
2,154
11,550
7,989
Restaurant expenses
6,986
7,097
28,707
27,822
Total operating expenses
28,641
25,461
113,668
97,325
Interest expense
(12,361
)
(9,822
)
(44,606
)
(36,405
)
Other income, net
110
292
919
542
Realized gain on sale, net
288
555
2,341
8,139
Income tax expense
(80
)
(28
)
(130
)
(237
)
Net income
24,459
22,900
95,462
97,908
Net income attributable to noncontrolling interest
(30
)
(31
)
(122
)
(136
)
Net Income Attributable to Common Shareholders
$
24,429
$
22,869
$
95,340
$
97,772
Basic net income per share
$
0.27
$
0.27
$
1.08
$
1.20
Diluted net income per share
$
0.27
$
0.27
$
1.07
$
1.20
Regular dividends declared per share
$
0.3450
$
0.3400
$
1.3650
$
1.3375
Weighted-average shares outstanding: Basic
90,467,426
83,941,172
88,526,343
81,590,124
Diluted
90,703,366
84,190,208
88,747,028
81,807,065
Four Corners Property
Trust
Consolidated Balance
Sheets
(In thousands, except share
data)
December 31, 2023 December 31, 2022
ASSETS Real estate investments: Land
$
1,240,865
$
1,115,827
Buildings, equipment and improvements
1,708,556
1,539,875
Total real estate investments
2,949,421
2,655,702
Less: Accumulated depreciation
(738,946
)
(706,702
)
Total real estate investments, net
2,210,475
1,949,000
Intangible lease assets, net
118,027
106,206
Total real estate investments and intangible lease assets, net
2,328,502
2,055,206
Real estate held for sale
-
7,522
Cash and cash equivalents
16,322
26,296
Straight-line rent adjustment
64,752
61,027
Derivative assets
20,952
35,276
Deferred tax assets
1,248
988
Other assets
19,858
12,272
Total Assets
$
2,451,634
$
2,198,587
LIABILITIES AND EQUITY Liabilities: Term loan
and revolving credit facility ($446,000 and $430,000 of principal,
respectively)
$
441,745
$
424,134
Senior unsecured notes
670,944
571,343
Dividends payable
31,539
29,064
Rent received in advance
14,309
11,710
Derivative liabilities
2,968
9
Other liabilities
30,266
24,017
Total liabilities
1,191,771
1,060,277
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, 91,617,477 and 85,637,293 shares issued and
outstanding, respectively
9
9
Additional paid-in capital
1,261,940
1,104,522
Accumulated other comprehensive income
21,977
30,944
Noncontrolling interest
2,213
2,259
Retained earnings (deficit)
(26,276
)
576
Total equity
1,259,863
1,138,310
Total Liabilities and Equity
$
2,451,634
$
2,198,587
Four Corners Property
Trust
FFO and AFFO
(Unaudited)
(In thousands, except share
and per share data)
Three Months EndedDecember 31, Twelve Months
EndedDecember 31,
2023
2022
2023
2022
Funds from operations (FFO): Net income
$
24,459
$
22,900
$
95,462
$
97,908
Depreciation and amortization
13,284
11,020
50,592
41,342
Realized gain on sales of real estate
(288
)
(555
)
(2,341
)
(8,139
)
FFO (as defined by NAREIT)
$
37,455
$
33,365
$
143,713
$
131,111
Straight-line rental revenue
(1,165
)
(1,433
)
(5,523
)
(6,372
)
Deferred income tax benefit (1)
(27
)
(68
)
(259
)
(125
)
Stock-based compensation
1,473
1,239
6,271
4,978
Non-cash amortization of deferred financing costs
592
644
2,311
2,104
Non-real estate investment depreciation
36
31
139
129
Other non-cash revenue adjustments
551
551
2,061
2,151
Adjusted Funds from Operations (AFFO)
$
38,915
$
34,329
$
148,713
$
133,976
Fully diluted shares outstanding (2)
90,817,925
84,304,767
88,861,587
81,921,624
FFO per diluted share
$
0.41
$
0.40
$
1.62
$
1.60
AFFO per diluted share
$
0.43
$
0.41
$
1.67
$
1.64
(1)
Amount represents non-cash deferred income tax benefit recognized
at the Kerrow Restaurant Business
(2)
Assumes the issuance of common shares for OP units held by
non-controlling interest.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214609657/en/
FCPT Bill Lenehan, 415-965-8031
CEO
Gerry Morgan, 415-965-8032 CFO
Four Corners Property (NYSE:FCPT)
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