Four Corners Property Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Rental revenue for the third quarter increased 13.8% year-over-year to $75.7 million, consisting of $75.2 million in cash rents and $502,000 in straight-line and other non-cash rent adjustments.
• Net income attributable to common shareholders was $28.8 million ($0.26 per diluted share) for the third quarter, compared to $28.8 million ($0.28 per diluted share) in the prior year.
• For the nine months ended September 30, 2026, net income attributable to common shareholders was $89.1 million ($0.81 per diluted share), compared to $82.9 million ($0.81 per diluted share) in the same period in 2025.
• Adjusted Funds from Operations (AFFO) per diluted share for the third quarter was $0.46, representing 2.9% growth compared to the same quarter in 2025.
• AFFO per diluted share for the nine months ended September 30, 2026, was $1.36, representing 2.7% growth compared to the same nine-month period in 2025.
• NAREIT-defined Funds from Operations (FFO) per diluted share for the third quarter was $0.43, representing 2.4% growth compared to the same quarter in 2025.
• FFO per diluted share for the nine months ended September 30, 2026, was $1.27, representing 2.2% growth compared to the same nine-month period in 2025.
• General and Administrative (G&A) expense for the third quarter was $6.9 million, including $2.1 million of stock-based compensation, compared to $6.5 million in the prior year quarter.
• Cash G&A expense for the third quarter was $4.7 million, representing 6.3% of cash rental income, compared to $4.3 million (6.5% of cash rental income) in the prior year quarter.
• Total assets as of September 30, 2026, were $3.30 billion, up from $2.92 billion as of December 31, 2025.
• Total liabilities as of September 30, 2026, were $1.67 billion, up from $1.29 billion as of December 31, 2025.
• Total equity as of September 30, 2026, was $1.63 billion, compared to $1.63 billion as of December 31, 2025.

Guidance and Future Outlook:

• Management indicated that new acquisitions are beginning to be priced at higher cap rates.
• Capital allocation decisions will be modulated to maximize shareholder value creation, with a focus on accretive opportunities.
• The company expects to draw down the remaining $40 million of the new term loan facility by the end of Q4 2026.

Business Segments and Product Lines:

• During the third quarter, the company acquired 120 properties for a combined purchase price of $326.3 million at an initial weighted average cash yield of 6.6% (7.1% GAAP yield).
• Acquired properties had a weighted average remaining lease term of 9.6 years.
• The acquisition portfolio composition was approximately 87% medical retail, 5% casual dining and quick service restaurants, 5% auto, and 4% other retail by purchase price.
• As of September 30, 2026, the portfolio consisted of 1,456 properties located in 48 states with 99.5% occupancy (by square feet) and a weighted average remaining lease term of approximately 6.7 years.
• The company extended 100% of Olive Garden and LongHorn leases maturing in 2027 without landlord concessions.
• No properties were disposed of during the third quarter.

Market and Competitive Landscape:

• The company noted that current market conditions have resulted in higher pricing for new acquisitions.
• The company views share repurchases as delivering more value than property purchases at the current share price.

Risks and Challenges:

• Forward-looking statements highlight risks regarding the ability of tenants to pay rent in a timely manner or at all, particularly in the context of pandemics.
• Actual results may differ materially from forward-looking statements due to various risks and uncertainties, including those detailed in the company's Form 10-K.

Management Commentary and Tone:

• CEO Bill Lenehan stated that the acquisition volume of over $326 million was a record for FCPT and was funded entirely with low-cost debt.
• Management highlighted the successful refinancing and upsizing of the credit facility to significantly extend the maturity profile.
• The tone regarding the portfolio was described as "great shape," with a continued focus on accretive capital allocation.

Other Key Points:

• Rent collection for the quarter ending September 30, 2026, was 99.7% of portfolio contractual base rent.
• FCPT declared monthly dividends of $0.1265 per common share for October, November, and December 2026, representing a 3.5% increase from the prior quarter ($1.5180 annualized).
• The Board authorized a share repurchase program allowing the purchase of up to $100 million of outstanding common stock; no shares were purchased during the quarter.
• Liquidity as of September 30, 2026, was approximately $397 million, including $7 million in cash, $40 million in undrawn delayed draw term loans, and $350 million of capacity under the revolving credit facility.
• Outstanding debt totaled $1.585 billion, consisting of $960 million in term loans and $625 million in unsecured fixed-rate notes, with a leverage ratio of 6.0x (net debt to adjusted EBITDAre).
• The credit facility was amended on July 28, 2026, increasing the facility size from $940 million to $1.15 billion, with a new $400 million term loan maturing in August 2031.
• Credit margin spreads were improved based on investment grade ratings (BBB/Baa3), resulting in interest rates of SOFR + 0.90% for term loans and SOFR + 0.85% for revolving borrowings.
• No shares were sold via the at-the-market (ATM) program during the third quarter or year-to-date through October 28, 2026.