Four Corners Property Trust, Inc. Q1 FY2026 earnings call

• Q1 marked continuation of momentum from 2025 and strong start to 2026. • Acquired 26 million of net lease properties at 6.8 blended cash cap rate. • Closed on a new $200 million term loan with seven-year tenor, all-in rate 4.9%. • Rent coverage strong, with majority portfolio at 5.1 times and garden properties at 5.8 times. • Largest brands like Olive Garden, Longhorn, Chili's continue to perform well. • Bahama Breeze properties update: 10 properties, DART planning to convert some, actively negotiating letters of intent for backfill. • Diversifying portfolio, 37% of rent from non-casual dining subsectors. • Michael Friedland joined the board. • Josh reviewed Q1 activity, including 10 property acquisitions with weighted average lease term of 10 years. • Patrick discussed balance sheet, capital sources, earnings highlights, and disclosure updates.

AFFO per share grew by 3.4% versus the prior year period. Acquired 26 million of net lease properties at a 6.8 blended cash cap rate, equivalent to a 7.3 gap rate. Over the last 12 months, acquired $288 million of properties. Rent coverage in Q1 was 5.1 times for the majority of the portfolio, with garden properties at 5.8 times. 37% of rent now comes from tenants outside the casual dining subsector, including automotive service at 13%, medical retail at 11%, and QSR restaurants at 11%.

• Reaffirming guidance range for 2026 cash G&A as $19.2 to $19.7 million. • 27 of 42 leases originally expiring in 2026 extended, recapture rate 6% above prior year rent. • Portfolio occupancy very strong at 99.6%, collected 99.7% of base revenue Q1. • Plan to disclose GAAP cap rates along with cash cap rate. • Update on AFFO per share growth calculation to be more accurate by calculating without impact of two decimal rounding.

Q: Michael Goodsmith from UVS asked about the $200 million term loan and acquisition activity, and about the new slides in the presentation.

A: Michael was told the answer might be in his question, and details were provided about the slides including tenant performance and cap rate comparison.

Q: Eric Borden from BMO Capital Markets asked about acquisition opportunities with Yum and Brinker and bad debt.

A: Responses were about working on opportunities with tight cap rates and bad debt being zero for the year to date.

Q: Wes Galladay with Baird asked about lease expirations and pipeline.

A: Responses were about rent growth expectations and being score-focused in the pipeline.

Q: John Kilachowski with Wells Fargo asked about Bahama Breeze and yield creep.

A: Responses were about no downtime and small sample size for yield creep.

Q: Mitch Germain from Citizens Bank asked about sector review and competitive landscape.

A: Responses were about the 'crippled filter' and being well-positioned competitively.