Four Corners Property Trust (FCPT) Q4 2024 earnings summary

Executive summary

• 2024 was a strong year, with $265 million in acquisitions at a 7.1% blended cap rate, high rent collections, and 99.6% occupancy across a diversified portfolio of 1,220 leases and 163 brands, with 56% investment grade tenants as of 12/31/2024.

• Portfolio diversification includes restaurants, auto service, and medical retail, with 23% non-restaurant exposure and Darden concentration reduced to 48%.

• No exposure to recent high-profile retail bankruptcies or problematic net lease subsectors; portfolio is diversified and avoids riskier sectors.

• Conservative financial policies, strong liquidity, and investment grade credit ratings maintained.

Financial highlights

• Q4 2024 AFFO per share was $0.44, up 2.3% year-over-year; full-year AFFO per share was $1.73, up 3.6%.

• Q4 rental revenue reached $60.8 million, up 6.6% year-over-year; full-year rental revenue was $237.1 million, up from $219.9 million.

• Q4 net income per share was $0.27; full-year net income per share was $1.07.

• Q4 cash G&A expense was $3.9 million (6.5% of cash rental income); full-year G&A was $16.8 million (7.1% of cash rental income).

• Net debt to adjusted EBITDAre was 4.9x at year-end; fixed charge coverage ratio was 4.5x.

Outlook and guidance

• No debt maturities until 2026 after upsizing the credit facility in January 2025, increasing total capacity to $940 million.

• Significant liquidity of $500 million to $347 million at year-end, supporting a robust acquisition pipeline and continued investment at similar cap rates.

• Conservative leverage target of 5.5x–6.0x, with actual leverage at 4.9x as of 12/31/2024.

• Cash G&A expected to be $18–$18.5 million in 2025.