Four Corners Property Trust Reports Increased Revenues and Net Income for Q3 2024

As of September 30, 2024, Four Corners Property Trust, Inc. (FCPT) reported total real estate investments of $3,072,936,000, an increase from $2,949,421,000 at the end of 2023. The net real estate investments rose to $2,306,535,000 from $2,210,475,000, while total assets increased to $2,564,344,000 from $2,451,634,000. Cash and cash equivalents saw a significant rise to $44,495,000, up from $16,322,000.

The company’s total equity improved to $1,354,741,000, compared to $1,259,863,000 at the end of 2023. However, the accumulated deficit worsened to $(48,547,000) from $(26,276,000). The term loan and revolving credit facility net of deferred financing costs increased to $510,760,000 from $441,745,000.

For the three months ended September 30, 2024, FCPT reported total revenues of $66,791,000, up from $64,839,000 in the same period of 2023. Rental revenue increased to $59,288,000 from $57,243,000. Net income for the quarter was $25,612,000, compared to $24,192,000 in the prior year. For the nine months ended September 30, 2024, net income was $74,388,000, an increase from $71,003,000 in 2023.

Dividends declared per common share rose to $0.3450 for the three months ended September 30, 2024, compared to $0.3400 in 2023. The company’s Adjusted Funds from Operations (AFFO) for the three months ended September 30, 2024, was $41,080,000, up from $37,979,000 in the same period of 2023.

During the nine months ended September 30, 2024, FCPT invested $136.7 million in 42 properties, all of which are 100% occupied under net leases. This is a significant reduction in investment compared to $328.5 million in 90 properties during the same period in 2023. The company did not sell any properties in 2024, while it sold six properties in 2023, realizing a gain of $2.1 million.

General and administrative expenses increased by 6.3% for the three months ended September 30, 2024, primarily due to higher compensation-related expenses. Interest expense rose due to the issuance of new debt, including an $85 million term loan in March 2024. The company remains compliant with all debt covenants and has a borrowing capacity of $250 million under its revolving credit facility.

FCPT initiated a new ATM program in September 2024, allowing for the sale of common stock with an aggregate gross sales price of up to $500 million. The company continues to focus on its acquisition strategy, primarily targeting properties in the restaurant and retail sectors.