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Four Corners Property Trust (FCPT)
NYSE:FCPT
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Four Corners Property
(NYSE:FCPT)
Rating:73Outperform
Price Target:
$30.00
▲(9.97%Upside)
Positive Factors
Financial Performance
Portfolio attributes remain a standout, as rent coverage, investment grade exposure, and lease duration support cash flow durability.
Growth Strategy
A re-finance of the revolver along with term loan expansion offers additional dry powder, complementing unsettled equity and enabling management to stay aggressive within the investment markets.
Negative Factors
Market Sentiment
There is little potential for multiple expansion from here, and the valuation is seen as fair.
Valuation
Shares currently trade at one of the highest multiples in the net-lease REIT sector, which suggests that the growth potential and high-quality portfolio are currently priced in.
Four Corners Property (FCPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.74B
Dividend Yield5.17%
Average Volume (3M)573.51K
Price to Earnings (P/E)25.5
Beta (1Y)0.44
Revenue Growth6.20%
EPS Growth0.28%
CountryUS
Employees536
SectorReal Estate
Sector Strength69
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.26
Shares Outstanding100,472,010
10 Day Avg. Volume490,364
30 Day Avg. Volume573,513
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)1.92
Price to Sales (P/S)0.00
P/FCF Ratio23.78
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.57
Enterprise Value/Gross Profit11.83
Enterprise Value/Ebitda3.43
Forecast
1Y Price Target
$30.00Price Target Upside9.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
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 MoneyFour Corners Property Trust generates revenue primarily through leasing its real estate properties to tenants under long-term, net lease agreements. In these agreements, tenants are responsible for paying rent along with property taxes, insurance, and maintenance costs, minimizing FCPT's operational expenses. The company's key revenue streams include rental income from its diversified portfolio of restaurant and retail properties. FCPT's strategic partnerships with major restaurant brands and its focus on properties with creditworthy tenants help ensure consistent occupancy rates and financial stability. Additionally, the company may engage in property acquisitions and dispositions to optimize its portfolio and enhance returns.
Four Corners Property Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -2.40%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call for FCPT Q1 2025 presented a strong financial performance with record acquisition volumes, high liquidity, and diversified tenant base. However, minor rent collection issues and concerns about economic uncertainty were noted.Q1-2025 Updates
Positive Updates
Record Acquisition Volume
Q1 2025 marked the highest acquisition volume for a first quarter in FCPT's history, with $70 million in acquisitions at a 6.7% cap rate, continuing momentum from a strong Q4 2024.
Strong Financial Position
FCPT reported Q1 AFFO of $0.44 per share, up 2.3% from Q1 last year, and cash rental income of $63.2 million, representing a 9.1% growth year-over-year.
Low Leverage and High Liquidity
FCPT achieved its lowest leverage levels in seven years and maintained significant liquidity with over $617 million available for funding acquisitions.
High Portfolio Occupancy
Portfolio occupancy stands at 99.4% with a 99.5% rent collection rate for Q1, indicating strong tenant performance and reliable income streams.
Diversified Tenant Base
FCPT has diversified its tenant base with Darden now representing only 47% of the rent roll, down from 100% at inception, across 1,236 leases.
Negative Updates
Minor Rent Collection Issues
Rent collections slightly ticked up with a small percentage of tenants not paying, attributed to one tenant with ongoing legal proceedings and re-leasing efforts.
Potential Economic Uncertainty
The call highlighted concerns about potential macroeconomic volatility and the need for FCPT to remain strategically conservative amid uncertain market conditions.
Company Guidance
During the FCPT First Quarter 2025 Financial Results Conference Call, the company reported a record-high acquisition volume for Q1, closing $70 million of acquisitions at a blended 6.7% cap rate. This builds on a strong Q4 2024, with $269 million of acquisitions over the past eight months. FCPT raised $475 million in equity since July 2024, bringing leverage to a seven-year low. Rent coverage for Q1 was 4.9x, and occupancy was 99.4%. The company continues to focus on nationally branded restaurant operators, with significant growth in same-store sales for key tenants like Chili's (31.6%), Olive Garden (1%), and Longhorn (2.6%). Diversification efforts have reduced Darden's rent roll contribution from 100% to 47%. FCPT has significant liquidity, minimal debt exposure, and no near-term maturities, positioning it well for potential market uncertainties.Four Corners Property Financial Statement Overview
Summary
Four Corners Property demonstrates strong financial health with robust revenue and profit growth, efficient operations, and effective cash management. The company maintains a balanced leverage profile, supporting its growth trajectory while ensuring stability.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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 273.08M | 268.07M | 250.61M | 223.19M | 199.38M | 170.94M | Gross Profit |
| 232.31M | 227.47M | 210.35M | 187.38M | 169.78M | 151.35M | EBIT |
| 151.62M | 149.17M | 136.94M | 126.41M | 117.33M | 107.05M | EBITDA |
| 208.21M | 204.65M | 188.97M | 167.88M | 152.16M | 136.48M | Net Income Common Stockholders |
| 102.58M | 100.47M | 95.34M | 97.77M | 85.58M | 77.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 22.26M | 4.08M | 16.32M | 26.30M | 6.30M | 11.06M | Total Assets |
| 2.71B | 2.65B | 2.45B | 2.20B | 1.90B | 1.67B | Total Debt |
| 1.21B | 1.14B | 1.12B | 1.00B | 883.21M | 759.94M | Net Debt |
| 1.18B | 1.14B | 1.10B | 974.32M | 876.91M | 748.87M | Total Liabilities |
| 1.28B | 1.20B | 1.19B | 1.06B | 939.09M | 823.68M | Stockholders Equity |
| 1.43B | 1.45B | 1.26B | 1.14B | 961.67M | 841.44M |
| Cash Flow | Free Cash Flow | ||||
| 168.04M | 144.10M | 165.10M | 142.00M | 122.42M | 91.46M | Operating Cash Flow |
| 168.04M | 144.10M | 165.10M | 142.00M | 122.42M | 91.46M | Investing Cash Flow |
| -314.55M | -272.92M | -312.79M | -270.90M | -264.92M | -229.07M | Financing Cash Flow |
| 142.01M | 108.11M | 146.18M | 148.90M | 137.74M | 143.60M |
Four Corners Property Technical Analysis
Negative
27.28
Price Trends
27.71
Negative
27.60
Negative
27.65
Negative
Market Momentum
-0.16
Positive
46.25
Neutral
58.00
Neutral
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 27.28 is below the 20-day moving average (MA) of 27.50, below the 50-day MA of 27.71, and below the 200-day MA of 27.65, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 58.00 is Neutral, 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 49 risk factors in its most recent earnings report. Four Corners Property reported the most risks in the “Finance & Corporate” 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.74B | 25.53 | 7.62% | 5.17% | 6.20% | 0.28% | |
72 Outperform | $2.74B | 10.73 | 39.80% | 5.83% | -1.10% | ― | |
71 Outperform | $2.73B | 14.45 | 5.84% | 8.37% | 4.98% | -7.08% | |
68 Neutral | $2.43B | 42.05 | 2.98% | 6.44% | 5.68% | 358.78% | |
65 Neutral | $3.18B | 18.47 | 7.21% | 6.96% | -2.01% | 31.64% | |
64 Neutral | $2.58B | 117.21 | 0.92% | 4.00% | 2.62% | 84.20% | |
60 Neutral | $2.76B | 10.59 | 0.51% | 8507.90% | 5.51% | -19.44% |
* Real Estate Sector Average
Performance Comparison
FCPT
Four Corners Property
27.28
4.71
20.87%
HIW
Highwoods Properties
29.51
6.65
29.09%
AKR
Acadia Realty
19.41
3.56
22.46%
LXP
LXP Industrial Trust
8.49
0.63
8.02%
OUT
Outfront Media
16.40
3.40
26.15%
APLE
Apple Hospitality REIT
11.78
-1.44
-10.89%
Four Corners Property Corporate Events
Business Operations and StrategyFinancial Disclosures
Four Corners Property Reports Strong Q1 2025 Results
Positive
Apr 30, 2025
On April 30, 2025, Four Corners Property Trust, Inc. announced its financial results for the first quarter of 2025, highlighting a record acquisition volume of over $56 million in properties leased to national brands. Despite market volatility, FCPT reported increased rental revenue of $63.5 million, an 8.4% rise from the previous year, and maintained a high rent collection rate of 99.5%. The company also enhanced its liquidity and reduced its leverage profile, with significant equity raised and an expanded credit facility. These developments underscore FCPT’s strong operational performance and strategic positioning in the real estate market.
M&A TransactionsBusiness Operations and Strategy
Four Corners Property Expands Portfolio with New Acquisitions
Positive
Mar 17, 2025
In March 2025, Four Corners Property Trust announced its strategic financial and operational achievements, including the acquisition of 64 properties for $199 million at a 7.1% cap rate and the extension of its credit facility. The company has maintained high rent collection rates and continues to diversify its portfolio, reducing reliance on major brands like Olive Garden and LongHorn. Despite market volatility and macroeconomic uncertainties under the new administration, FCPT has positioned itself as a stable entity with significant liquidity and a defensive portfolio, avoiding sectors with higher risk exposure.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.