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Four Corners Property Trust (FCPT)
NYSE:FCPT
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Four Corners Property
(NYSE:FCPT)
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Rating:74Outperform
Price Target:
$29.00
â–²(13.95% Upside)
Four Corners Property's strong earnings call performance and solid financial health are the most significant factors contributing to its score. The company's robust acquisition strategy and high occupancy rates are key strengths. However, technical indicators suggest bearish momentum, and the decline in free cash flow growth poses a risk. The stock's moderate valuation and attractive dividend yield provide additional support.
Positive Factors
Portfolio Diversification
The diversification from 5 to 165 brands reduces dependency on a few tenants, enhancing revenue stability and reducing risk.
High Occupancy Rates
High occupancy rates indicate strong demand for FCPT's properties, ensuring consistent rental income and financial stability.
Strong Acquisition Strategy
The robust acquisition strategy at favorable cap rates supports long-term growth and enhances the asset base.
Negative Factors
Decline in Free Cash Flow Growth
A decline in free cash flow growth could limit FCPT's ability to reinvest in new properties, impacting future growth potential.
Pricing Challenges in Acquisitions
Challenges in finding well-priced assets could hinder FCPT's expansion plans and affect long-term growth prospects.
Slowdown in Revenue Growth
The slowdown in revenue growth suggests potential challenges in maintaining growth momentum, impacting future earnings.
Four Corners Property (FCPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.65B
Dividend Yield5.54%
Average Volume (3M)538.90K
Price to Earnings (P/E)23.6
Beta (1Y)0.37
Revenue Growth6.28%
EPS Growth1.21%
CountryUS
Employees536
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.28
Shares Outstanding104,464,310
10 Day Avg. Volume675,924
30 Day Avg. Volume538,902
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue14.06
Enterprise Value/Gross Profit15.53
Enterprise Value/Ebitda18.40
Forecast
1Y Price Target
$29.00Price Target Upside13.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Four Corners Property Business Overview & Revenue Model
Company DescriptionFCPT, headquartered in Mill Valley, CA, 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, on a net basis, for use in the restaurant and retail industries.
How the Company Makes MoneyFCPT generates revenue primarily through leasing its properties to tenants under long-term, net lease agreements, which typically require tenants to cover property expenses such as taxes, insurance, and maintenance. This structure allows FCPT to benefit from stable, predictable cash flow while minimizing operational costs. The company's revenue model is further bolstered by its strategic focus on acquiring properties leased to strong creditworthy tenants, which helps ensure timely rent payments. Significant partnerships with established brands and a commitment to portfolio diversification also contribute to its earnings, reducing risk and enhancing revenue stability.
Four Corners Property Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call revealed a robust acquisition strategy with significant growth in property acquisitions and successful diversification of the portfolio. Despite challenges in acquisition pricing and some store closures, the financial metrics and portfolio performance remain strong.Q2-2025 Updates
Positive Updates
Strong Acquisition Performance
FCPT acquired $84 million in properties in Q2 at a 6.7% blended cap rate and $344 million over the last 12 months, marking one of their highest volumes across four consecutive quarters.
Portfolio Diversification Achievement
FCPT expanded from 418 properties across 5 brands in 2015 to 1,260 leases across 165 brands, reducing reliance on Olive Garden and LongHorn from a combined 94% to 42% of rent.
Impressive Rent Coverage and Occupancy
Rent coverage in Q2 was 5x for the majority of the portfolio, and portfolio occupancy remains strong at 99.4% with 99.8% of base rent collected in Q2.
Financial Metrics Growth
AFFO per share increased by 2.8% from Q2 last year, with cash rental income growing over 11% during the quarter compared to last year.
Low Bad Debt Expense
FCPT reported only $1.76 million in bad debt since 2016, with 0 in 2025, against $1.5 billion of rent collected, averaging 12 basis points per year.
Negative Updates
Pricing Challenges in Acquisitions
The availability of well-priced assets is limited, impacting the volume of acquisitions despite a strong pipeline.
Bahama Breeze Store Closures
One property from the Bahama Breeze chain is on the closure list, although rent will continue to be paid for a few more years.
Company Guidance
During the call, FCPT provided detailed guidance on their financial performance and strategic direction for the second quarter of 2025. The company successfully acquired $84 million in properties at a 6.7% blended cap rate, contributing to a total of $344 million in acquisitions over the past twelve months. They emphasized their strategic focus on high-quality real estate with creditworthy tenants, highlighting a rent coverage rate of 5x and a portfolio with 99.4% occupancy. FCPT also showcased their diversification efforts, expanding from 418 properties across 5 brands in 2015 to 1,260 leases across 165 brands. The capital position was strong, with nearly $0.5 billion of equity raised in the past year and a net debt to adjusted EBITDAR ratio of 4.5x. Cash rental income grew by over 11% to $64.5 million, and AFFO per share increased by 2.8% year-over-year. The company maintained a disciplined approach to acquisitions, refraining from providing acquisition guidance but noting a continued focus on quality and return thresholds.Four Corners Property Financial Statement Overview
Summary
Four Corners Property demonstrates a strong financial position with robust revenue and profit growth, efficient operations, and effective cash management. The company maintains a balanced leverage profile, which supports its growth trajectory while ensuring stability. Overall, the financial health of Four Corners Property is commendable, making it a reliable entity in the REIT - Retail sector.Income Statement
Four Corners Property has shown strong revenue growth with a 22.6% increase from 2022 to TTM (Trailing-Twelve-Months). The gross profit margin is robust at 85.1%, and the net profit margin stands at 37.6% for TTM. EBIT and EBITDA margins are also healthy at 55.5% and 76.2%, respectively, indicating efficient operations and strong earnings performance.85
Very Positive
Balance Sheet
The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 0.84, reflecting moderate leverage. Return on equity is solid at 7.2% for TTM, and the equity ratio is 52.8%, indicating a strong equity base relative to total assets.78
Positive
Cash Flow
Cash flow analysis shows healthy free cash flow growth of 16.6% from 2022 to TTM. The operating cash flow to net income ratio is 1.64, and the free cash flow to net income ratio is consistent at 1.64, highlighting effective cash generation relative to earnings.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 279.44M | 268.07M | 250.61M | 223.19M | 199.38M | 170.94M |
| Gross Profit | 253.01M | 227.47M | 210.35M | 187.38M | 169.78M | 151.35M |
| EBITDA | 213.52M | 204.65M | 158.96M | 167.88M | 152.16M | 136.48M |
| Net Income | 105.84M | 100.47M | 95.34M | 97.77M | 85.58M | 77.33M |
Balance Sheet | ||||||
| Total Assets | 2.77B | 2.65B | 2.45B | 2.20B | 1.90B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 5.98M | 4.08M | 16.32M | 26.30M | 6.30M | 11.06M |
| Total Debt | 1.21B | 1.14B | 1.12B | 1.00B | 883.21M | 759.94M |
| Total Liabilities | 1.28B | 1.20B | 1.19B | 1.06B | 939.09M | 823.68M |
| Stockholders Equity | 1.48B | 1.45B | 1.26B | 1.14B | 961.67M | 841.44M |
Cash Flow | ||||||
| Free Cash Flow | 76.81M | 144.10M | 165.10M | 142.00M | 122.42M | 91.46M |
| Operating Cash Flow | 76.81M | 144.10M | 165.10M | 142.00M | 122.42M | 91.46M |
| Investing Cash Flow | -354.18M | -272.92M | -312.79M | -270.90M | -264.92M | -229.07M |
| Financing Cash Flow | 170.87M | 108.11M | 146.18M | 148.90M | 137.74M | 143.60M |
Four Corners Property Technical Analysis
Negative
25.45
Price Trends
25.88
Negative
26.49
Negative
26.87
Negative
Market Momentum
-0.11
Positive
43.90
Neutral
16.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCPT, the sentiment is Negative. The current price of 25.45 is below the 20-day moving average (MA) of 25.74, below the 50-day MA of 25.88, and below the 200-day MA of 26.87, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 16.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCPT.
Four Corners Property Risk Analysis
Four Corners Property disclosed 2 risk factors in its most recent earnings report. Four Corners Property reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Four Corners Property Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 2.29B | 20.66 | 6.15% | 3.11% | 8.63% | 1412.68% | |
77 Outperform | 1.57B | 24.19 | 6.76% | 6.70% | 6.62% | -3.87% | |
74 Outperform | $2.65B | 23.61 | 7.73% | 5.54% | 6.28% | 1.21% | |
73 Outperform | 1.30B | 19.53 | 7.89% | 4.09% | 4.04% | 107.96% | |
68 Neutral | 2.69B | 120.97 | -0.09% | 3.83% | 7.09% | 2591.94% | |
66 Neutral | 1.77B | -248.64 | -0.44% | 4.60% | 21.31% | -199.59% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
FCPT
Four Corners Property
25.45
-2.87
-10.13%
GTY
Getty Realty
27.39
-2.67
-8.88%
WSR
Whitestone REIT
12.94
0.21
1.65%
AKR
Acadia Realty
20.37
-1.53
-6.99%
IVT
InvenTrust Properties
29.86
1.38
4.85%
NTST
NETSTREIT
18.35
2.92
18.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.