MILL VALLEY, Calif.--(BUSINESS WIRE)--
Four Corners Property Trust, Inc. (“FCPT” or the “Company”, NYSE: FCPT)
today announced financial results for the three months ended March 31,
2019.
Management Comments
“During the first quarter, our financial results and the performance of
the existing portfolio were in line with expectations, and we continued
to make acquisitions to expand our high-quality portfolio,” said Bill
Lenehan, Chief Executive Officer. “We were also able to continue to
access the equity markets and maintain a strong balance sheet with low
leverage compared to our peers. We begin the second quarter well
capitalized to meet expected acquisition funding needs.”
Financial Results
Rental Revenue and Net Income Attributable to Common Shareholders
-
Rental revenue for the first quarter increased 15.3% over the prior
year to $34.2 million. Rental revenue consisted of $31.9 million in
cash rents and $2.3 million of straight-line and other non-cash rent
adjustments.
-
Net income attributable to common shareholders was $17.5 million for
the first quarter, or $0.26 per diluted share. These results compare
to net income attributable to common shareholders of $16.3 million in
the prior year, or $0.26 per diluted share.
Funds from Operations (FFO)
-
NAREIT-defined FFO per diluted share for the first quarter was $0.35,
representing flat per share results compared to the first quarter in
2018.
Adjusted Funds from Operations (AFFO)
-
AFFO per diluted share for the first quarter was $0.34, representing
flat per share results compared to the first quarter in 2018.
General and Administrative (G&A) Expense
-
G&A expense for the first quarter was $3.9 million, which included
$1.2 million of non-cash stock-based compensation. These results
compare to G&A expense for the same quarter in the prior year of $3.6
million, which included $1.2 million of non-cash stock-based
compensation.
-
Cash G&A expense (after excluding non-cash stock-based compensation)
for the quarter was $2.7 million, representing 8.6% of cash rental
income for the quarter. This result compares favorably to the first
quarter of 2018, when cash G&A expense was 8.8% of cash rental income.
Dividends
-
FCPT declared a dividend of $0.2875 per common share for the first
quarter of 2019.
Portfolio Activities
Acquisitions
-
During the first quarter of 2019, FCPT acquired 11 restaurant
properties for a combined purchase price of $19.6 million at an
initial weighted average cash yield of 6.7%, including percentage rent
consideration, and a weighted average lease term of 10.8 years.
Liquidity and Capital Markets
Capital Raising
-
Year to date through April 1, FCPT sold 1,663,116 shares under the
Company's ATM program. This included 59,638 shares sold through the
managers under the ATM program for gross proceeds of approximately
$1.8 million, at a weighted average share price of $29.49, and
1,603,478 shares sold by a forward purchaser through a manager under
the ATM program and pursuant to a forward sale agreement, at a
weighted average share price of $29.30, for gross proceeds of
approximately $47.0 million based on the initial forward price.
Cash
-
At March 31, 2019, FCPT had $61.4 million of available cash and cash
equivalents net of dividends payable in April.
Credit Facility and Unsecured Note
-
At March 31, 2019, FCPT had $625 million of outstanding debt,
consisting of $400 million of term loans and $225 million of senior
unsecured fixed rate notes. At quarter end, FCPT was undrawn on its
$250 million revolving credit facility.
Real Estate Portfolio
-
As of March 31, 2019, the Company’s rental portfolio consisted of 621
restaurant properties located in 45 states. The properties are 99.9%
occupied (measured by square feet) under long-term, net leases with a
weighted average remaining lease term of approximately 12.0 years and
an estimated portfolio weighted average EBITDAR to Lease Rent coverage
of 4.6x.
A supplemental financial and operating report that contains non-GAAP
measures and other defined terms, along with this press release, has
been posted to the investor relations section of the Company’s website
at http://investors.fcpt.com/.
Conference Call Information
Company management will host a conference call and audio webcast on
Wednesday, April 24, 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://services.choruscall.com/links/fcpt190424.html
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 FCPT call.
Replay: Available through August 23, 2019 by dialing 1-877-344-7529
(domestic) / 1-412-317-0088 (international), Replay Access Code 10130533.
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 primarily by acquiring additional real estate to
lease, on a net basis, for use in the restaurant and food industry.
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 First 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 March 31, |
| | 2019 |
| 2018 |
| | | |
|
|
Revenues:
| | | | |
|
Rental revenue
| |
$
|
34,208
| | |
$
|
29,589
| |
|
Restaurant revenue
| |
|
5,393
|
| |
|
5,214
|
|
|
Total revenues
| | |
39,601
| | | |
34,803
| |
|
Operating expenses:
| | | | |
|
General and administrative
| | |
3,946
| | | |
3,583
| |
|
Depreciation and amortization
| | |
6,361
| | | |
5,345
| |
|
Property expenses
| | |
308
| | | |
86
| |
|
Restaurant expenses
| |
|
4,983
|
| |
|
4,870
|
|
|
Total operating expenses
| |
|
15,598
|
| |
|
13,884
|
|
|
Net operating income
| | |
24,003
| | | |
20,919
| |
| | | |
|
|
Interest expense
| | |
(6,747
|
)
| | |
(4,855
|
)
|
|
Other income, net
| | |
413
| |
| |
358
| |
|
Income tax expense
| |
|
(68
|
)
|
|
|
(58
|
)
|
|
Net income
| | |
17,601
| | | |
16,364
| |
| | | |
|
|
Net income attributable to noncontrolling interest
| |
|
(98
|
)
| |
|
(109
|
)
|
Net Income Attributable to Common Shareholders | |
$
|
17,503
|
| |
$
|
16,255
|
|
| | | |
|
|
Basic net income per share
| |
$
|
0.26
| | |
$
|
0.27
| |
|
Diluted net income per share
| |
$
|
0.26
| | |
$
|
0.26
| |
|
Regular dividends declared per share
| |
$
|
0.2875
| | |
$
|
0.2750
| |
| | | |
|
|
Weighted-average shares outstanding:
| | | | |
|
Basic
| | |
68,202,950
| | | |
61,291,642
| |
|
Diluted
| | |
68,453,720
| | | |
61,413,978
| |
| | | | | | | |
|
|
|
Four Corners Property Trust |
Consolidated Balance Sheets |
| (In thousands, except share data) |
|
|
| March 31, 2019
(Unaudited) |
| December 31, 2018 |
ASSETS | | | | |
|
Real estate investments:
| | | | |
|
Land
| |
$
|
580,580
| | |
$
|
569,057
| |
|
Buildings, equipment and improvements
| |
|
1,239,033
|
| |
|
1,236,224
|
|
|
Total real estate investments
| | |
1,819,613
| | | |
1,805,281
| |
|
Less: Accumulated depreciation
| |
|
(618,258
|
)
| |
|
(614,584
|
)
|
|
Total real estate investments, net
| | |
1,201,355
| | | |
1,190,697
| |
|
Intangible lease assets, net
| |
|
22,464
|
| |
|
18,998
|
|
|
Total real estate investments and intangible lease assets, net
| | |
1,223,819
| | | |
1,209,695
| |
|
Cash and cash equivalents
| | |
81,013
| | | |
92,041
| |
|
Straight-line rent adjustment
| | |
32,501
| | | |
30,141
| |
|
Derivative assets
| | |
2,999
| | | |
5,982
| |
|
Other assets
| |
|
9,225
|
| |
|
5,239
|
|
Total Assets | |
$
|
1,349,557
|
| |
$
|
1,343,098
|
|
| | | |
|
LIABILITIES AND EQUITY | | | | |
| | | |
|
|
Liabilities:
| | | | |
|
Long-term debt ($625,000 and $525,000 principal, respectively)
| |
$
|
616,404
| | |
$
|
615,892
| |
|
Dividends payable
| | |
19,626
| | | |
19,580
| |
|
Rent received in advance
| | |
8,658
| | | |
1,609
| |
|
Other liabilities
| |
|
15,651
|
| |
|
7,053
|
|
|
Total liabilities
| |
|
660,339
|
| |
|
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, 68,368,264 and 68,204,045 shares issued and
outstanding, respectively
| | |
7
| | | |
7
| |
|
Additional paid-in capital
| | |
637,117
| | | |
639,116
| |
|
Accumulated other comprehensive income
| | |
2,341
| | | |
5,956
| |
|
Noncontrolling interest
| | |
5,858
| | | |
7,867
| |
|
Retained earnings
| |
|
43,895
|
| |
|
46,018
|
|
|
Total equity
| |
|
689,218
|
| |
|
698,964
|
|
Total Liabilities and Equity | |
$
|
1,349,557
|
| |
$
|
1,343,098
|
|
| | | |
|
|
|
Four Corners Property Trust |
FFO and AFFO |
(Unaudited) |
(In thousands, except share and per share data) |
|
|
|
|
|
| Three Months Ended March 31, |
| | 2019 |
| 2018 |
Funds from operations (FFO): | | | | |
|
Net income
| |
$
|
17,601
| | |
$
|
16,364
| |
|
Depreciation and amortization
| | |
6,344
| | | |
5,317
| |
|
Realized gain on sales of real estate
| | |
-
| | | |
-
| |
|
Realized gain on exchange of real estate (1) | |
|
-
|
| |
|
(228
|
)
|
FFO (as defined by NAREIT) | |
$
|
23,945
|
| |
$
|
21,453
|
|
|
Straight-line rent
| | |
(2,359
|
)
| | |
(2,283
|
)
|
|
Non-cash stock-based compensation
| | |
1,214
| | | |
1,184
| |
|
Non-cash amortization of deferred financing costs
| | |
513
| | | |
455
| |
|
Other non-cash interest income
| | |
(3
|
)
| | |
(5
|
)
|
|
Non-real estate investment depreciation
| | |
17
| | | |
13
| |
|
Amortization of above and below market leases, net
| |
|
12
|
| |
|
15
|
|
Adjusted Funds from Operations (AFFO) | |
$
|
23,339
|
| |
$
|
20,832
|
|
| | | |
|
|
Fully diluted shares outstanding (2) | | |
68,802,268
| | | |
61,823,298
| |
| | | |
|
FFO per diluted share | |
$
|
0.35
| | |
$
|
0.35
| |
| | | |
|
AFFO per diluted share | |
$
|
0.34
| | |
$
|
0.34
| |
|
|
(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/20190423005877/en/
FCPT
Bill Lenehan, 415-965-8031
CEO
Gerry Morgan, 415-965-8032
CFO
Source: Four Corners Property Trust, Inc.