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FCPT Announces Third Quarter 2019 Financial and Operating Results

October 30, 2019 GMT

MILL VALLEY, Calif.--(BUSINESS WIRE)--Oct 29, 2019--

Four Corners Property Trust, Inc. (“FCPT” or the “Company”, NYSE: FCPT) today announced financial results for the three months and nine months ended September 30, 2019.

Management Comments

“Our portfolio continued to perform well in the third quarter. As FCPT approaches its fourth anniversary in November, we are very proud of the advancement made in building a highly capable team, and the significant progress achieved toward our portfolio growth and diversification goals,” said Bill Lenehan, CEO of FCPT. “Since July, we have announced the signing of definitive agreements to acquire over $84 million of additional outparcel properties from Washington Prime and Brookfield Properties representing 44 properties and including our first non-restaurant retail properties. These outparcel properties represent a diverse group of durable brands benefitting from low rent levels, strong demographics and a high percentage of credit-worthy, corporate operators.”

Financial Results

Rental Revenue and Net Income Attributable to Common Shareholders

Funds from Operations (FFO)

Adjusted Funds from Operations (AFFO)

General and Administrative (G&A) Expense

Dividends

Portfolio Activities

Acquisitions

Liquidity and Capital Markets

Capital Raising

Cash

Credit Facility and Unsecured Note

Real Estate Portfolio

Conference Call Information

Company management will host a conference call and audio webcast on Wednesday, October 30, 2019 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/10135560 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 January 30, 2020 by dialing 1-877-344-7529 (domestic) / 1-412-317-0088 (international), Replay Access Code 10135560.

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 for use in the restaurant and retail industries.

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. 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 Third Quarter 2019 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 September 30,Nine Months Ended September 30,

2019

2018

2019

2018

 
Revenues:
Rental revenue

$

35,209

 

$

31,324

 

$

103,832

 

$

90,509

 

Restaurant revenue

 

4,974

 

 

4,798

 

 

15,520

 

 

15,091

 

Total revenues

 

40,183

 

 

36,122

 

 

119,352

 

 

105,600

 

Operating expenses:
General and administrative

 

3,389

 

 

3,116

 

 

10,766

 

 

9,809

 

Depreciation and amortization

 

6,653

 

 

5,743

 

 

19,532

 

 

16,312

 

Property expenses

 

346

 

 

109

 

 

1,071

 

 

289

 

Restaurant expenses

 

4,805

 

 

4,713

 

 

14,742

 

 

14,370

 

Total operating expenses

 

15,193

 

 

13,681

 

 

46,111

 

 

40,780

 

 
Interest expense

 

(6,665

)

 

(4,934

)

 

(19,969

)

 

(14,667

)

Other income, net

 

153

 

 

164

 

 

872

 

 

752

 

Realized gain on sale, net

 

-

 

 

-

 

 

-

 

 

10,879

 

Income tax expense

 

(69

)

 

(64

)

 

(198

)

 

(189

)

Net income

 

18,409

 

 

17,607

 

 

53,946

 

 

61,595

 

 
Net income attributable to noncontrolling interest

 

(78

)

 

(111

)

 

(244

)

 

(402

)

Net Income Attributable to Common Shareholders

$

18,331

 

$

17,496

 

$

53,702

 

$

61,193

 

 
Basic net income per share

$

0.27

 

$

0.27

 

$

0.79

 

$

0.97

 

Diluted net income per share

$

0.27

 

$

0.27

 

$

0.78

 

$

0.97

 

Regular dividends declared per share

$

0.2875

 

$

0.2750

 

$

0.8625

 

$

0.8250

 

 
Weighted-average shares outstanding:
Basic

 

68,315,915

 

 

65,347,842

 

 

68,274,167

 

 

62,804,123

 

Diluted

 

68,527,187

 

 

65,577,975

 

 

68,495,013

 

 

62,987,282

 

 

Four Corners Property Trust

Consolidated Balance Sheets

(In thousands, except share data)

 
September 30, 2019
(Unaudited)December 31, 2018
ASSETS
Real estate investments:
Land

$

608,601

 

$

569,057

 

Buildings, equipment and improvements

 

1,256,857

 

 

1,236,224

 

Total real estate investments

 

1,865,458

 

 

1,805,281

 

Less: Accumulated depreciation

 

(629,876

)

 

(614,584

)

Total real estate investments, net

 

1,235,582

 

 

1,190,697

 

Intangible lease assets, net

 

35,988

 

 

18,998

 

Total real estate investments and intangible lease assets, net

 

1,271,570

 

 

1,209,695

 

Cash and cash equivalents

 

29,789

 

 

92,041

 

Straight-line rent adjustment

 

37,151

 

 

30,141

 

Derivative assets

 

143

 

 

5,982

 

Other assets

 

9,127

 

 

5,239

 

Total Assets

$

1,347,780

 

$

1,343,098

 

 
LIABILITIES AND EQUITY
 
Liabilities:
Long-term debt ($625,000 principal, net of deferred financing costs)

$

617,428

 

$

615,892

 

Dividends payable

 

19,641

 

 

19,580

 

Rent received in advance

 

8,831

 

 

1,609

 

Derivative liabilities

 

7,955

 

 

-

 

Other liabilities

 

15,414

 

 

7,053

 

Total liabilities

 

669,269

 

 

644,134

 

 
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, 68,417,182 and 68,204,405 shares issued and outstanding, respectively

 

7

 

 

7

 

Additional paid-in capital

 

639,790

 

 

639,116

 

Accumulated other comprehensive income

 

(7,780

)

 

5,956

 

Noncontrolling interest

 

5,682

 

 

7,867

 

Retained earnings

 

40,812

 

 

46,018

 

Total equity

 

678,511

 

 

698,964

 

Total Liabilities and Equity

$

1,347,780

 

$

1,343,098

 

 

Four Corners Property Trust

FFO and AFFO

(Unaudited)

(In thousands, except share and per share data)

 
Three Months Ended September 30,Nine Months Ended September 30,

2019

2018

2019

2018

Funds from operations (FFO):
Net income

$

18,409

 

$

17,607

 

$

53,946

 

$

61,595

 

Real estate depreciation and amortization

 

6,636

 

 

5,724

 

 

19,481

 

 

16,264

 

Realized gain on sales of real estate

 

-

 

 

-

 

 

-

 

 

(10,879

)

Realized gain on exchange of real estate (1)

 

-

 

 

-

 

 

-

 

 

(228

)

FFO (as defined by NAREIT)

$

25,045

 

$

23,331

 

$

73,427

 

$

66,752

 

Straight-line rent

 

(2,415

)

 

(2,294

)

 

(7,008

)

 

(6,857

)

Stock-based compensation

 

802

 

 

930

 

 

2,792

 

 

3,037

 

Non-cash amortization of deferred financing costs

 

512

 

 

458

 

 

1,539

 

 

1,368

 

Other non-cash interest income (expense)

 

1

 

 

33

 

 

(4

)

 

27

 

Non-real estate investment depreciation

 

17

 

 

19

 

 

51

 

 

48

 

Amortization of above and below market leases, net

 

25

 

 

15

 

 

49

 

 

46

 

Adjusted Funds from Operations (AFFO)

$

23,987

 

$

22,492

 

$

70,846

 

$

64,421

 

 
Fully diluted shares outstanding (2)

 

68,816,579

 

 

65,987,295

 

 

68,805,612

 

 

63,396,602

 

 
FFO per diluted share

$

0.36

 

$

0.35

 

$

1.07

 

$

1.05

 

 
AFFO per diluted share

$

0.35

 

$

0.34

 

$

1.03

 

$

1.02

 

 

(1)

Non-cash gain recognized for GAAP purposes on the transfer of nonfinancial assets related to an excess land parcel exchange.

(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/20191029006172/en/

CONTACT: FCPT

Bill Lenehan, 415-965-8031

CEO

Gerry Morgan, 415-965-8032

CFO

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: REIT RESTAURANT/BAR RETAIL COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY

SOURCE: Four Corners Property Trust, Inc.

Copyright Business Wire 2019.

PUB: 10/29/2019 10:45 PM/DISC: 10/29/2019 10:45 PM

http://www.businesswire.com/news/home/20191029006172/en