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Four Corners Property Trust (FCPT)
NYSE:FCPT
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Four Corners Property
(NYSE:FCPT)77Outperform
Positive Factors
Cost of Capital
The balance sheet remains well-positioned, while FCPT’s attractive cost of capital has enabled the company to execute on its ambitious external growth goals.
Portfolio Quality
The portfolio quality, measured by investment grade rating and rent coverage, is viewed in a positive light, and the company’s recent execution within the deployment markets is impressive.
Negative Factors
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. S&P 500 (SPY)
Market Cap
$2.93B
Dividend Yield4.74%
Average Volume (3M)653.61K
Price to Earnings (P/E)27.4
Beta (1Y)0.69
Revenue Growth6.96%
EPS Growth-0.41%
CountryUS
Employees536
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)1.07
Shares Outstanding99,970,870
10 Day Avg. Volume1,003,444
30 Day Avg. Volume653,608
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.93
Price to Cash Flow (P/CF)21.90
P/FCF Ratio19.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.80Price Target Upside1.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Four Corners Property Business Overview & Revenue Model
Company DescriptionFour Corners Property Trust (FCPT) is a real estate investment trust (REIT) focused on acquiring and leasing high-quality, strategically located restaurant and retail properties. FCPT operates primarily in the retail property sector, with a strong emphasis on properties with national or regional tenants. The company's portfolio includes a diverse range of properties, ensuring a stable income stream and growth potential.
How the Company Makes MoneyFCPT makes money primarily through leasing its properties to tenants, generating steady rental income. The company's revenue model is based on long-term, triple-net leases, where tenants are responsible for paying property taxes, insurance, and maintenance costs in addition to rent. This structure minimizes operational expenses for FCPT and ensures predictable cash flow. FCPT's key revenue streams include rental income from its diverse portfolio of restaurant and retail properties. The company also benefits from strategic acquisitions and partnerships with established restaurant and retail brands, enhancing its property portfolio and increasing potential earnings.
Four Corners Property Financial Statement Overview
Summary
Four Corners Property exhibits strong financial health with excellent profitability margins, a robust balance sheet with zero debt, and solid cash flow management. The company should monitor its cash flow closely due to a negative free cash flow growth rate, but overall financial performance remains strong.Income Statement
Four Corners Property demonstrates strong profitability with a gross profit margin of 80.1% and a net profit margin of 37.5% for TTM. The company shows a healthy revenue growth rate of 6.97% from 2023 to 2024, indicating robust business expansion. EBIT and EBITDA margins are also impressive at 55.7% and 66.8%, respectively, highlighting effective cost management.85
Very Positive
Balance Sheet
The balance sheet is very strong, with an equity ratio of 54.7% for TTM, indicating financial stability and low leverage. The company has no debt in the current period, which reduces financial risk. Return on Equity is commendable at 6.9%, showing efficient use of equity capital.90
Very Positive
Cash Flow
Four Corners Property's cash flow is solid, with a free cash flow to net income ratio of 1.10 for TTM, demonstrating good cash generation relative to profits. However, the operating cash flow decreased from the previous year, indicating potential challenges in cash management. The free cash flow growth rate is negative, which could be a concern if continued.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 268.07M | 250.61M | 223.19M | 199.38M | 170.94M | Gross Profit |
| 256.50M | 210.35M | 187.38M | 169.78M | 151.35M | EBIT |
| 149.17M | 136.94M | 126.41M | 117.33M | 107.05M | EBITDA |
| 204.65M | 188.97M | 167.88M | 152.16M | 136.48M | Net Income Common Stockholders |
| 100.47M | 95.34M | 97.77M | 85.58M | 77.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.08M | 16.32M | 26.30M | 6.30M | 11.06M | Total Assets |
| 2.65B | 2.45B | 2.20B | 1.90B | 1.67B | Total Debt |
| 1.14B | 1.12B | 1.00B | 883.21M | 759.94M | Net Debt |
| 1.14B | 1.10B | 974.32M | 876.91M | 748.87M | Total Liabilities |
| 1.20B | 1.19B | 1.06B | 939.09M | 823.68M | Stockholders Equity |
| 1.45B | 1.26B | 1.14B | 961.67M | 841.44M |
| Cash Flow | Free Cash Flow | |||
| 144.10M | 165.10M | 142.00M | 122.42M | 91.46M | Operating Cash Flow |
| 144.10M | 165.10M | 142.00M | 122.42M | 91.46M | Investing Cash Flow |
| -272.92M | -312.79M | -270.90M | -264.92M | -229.07M | Financing Cash Flow |
| 108.11M | 146.18M | 148.90M | 137.74M | 143.60M |
Four Corners Property Technical Analysis
Positive
29.31
Price Trends
27.73
Positive
27.98
Positive
27.04
Positive
Market Momentum
0.35
Negative
64.11
Neutral
76.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCPT, the sentiment is Positive. The current price of 29.31 is above the 20-day moving average (MA) of 28.30, above the 50-day MA of 27.73, and above the 200-day MA of 27.04, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 76.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.72B | 24.98 | 7.41% | 5.81% | 9.44% | 8.76% | |
80 Outperform | $5.97B | 27.66 | 6.21% | 3.65% | 24.84% | -6.90% | |
80 Outperform | $52.14B | 59.58 | 2.40% | 5.36% | 29.49% | -22.38% | |
79 Outperform | $8.04B | 19.91 | 9.32% | 5.38% | 4.97% | -0.26% | |
77 Outperform | $2.93B | 27.44 | 7.43% | 4.74% | 6.96% | -0.41% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% |
* Real Estate Sector Average
Performance Comparison
FCPT
Four Corners Property
29.31
6.20
26.83%
GTY
Getty Realty
31.34
5.66
22.04%
NNN
National Retail Properties
42.85
2.34
5.78%
O
Realty Income
58.48
8.28
16.49%
EPRT
Essential Properties Realty
32.29
8.04
33.15%
Four Corners Property Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 5.62% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in 2024 with significant acquisitions, high rent coverage, and improved financial metrics. Despite challenges from rising interest rates and a slight deceleration in rent collection, the company is positioned well for 2025 with substantial liquidity and a resilient portfolio.Highlights
Strong Acquisition Performance
2024 ended with $265 million of acquisitions at a blended 7.1% cap rate, with significant activity in Q4 accounting for over 50% of annual volume.
High Rent Coverage and Occupancy
Rent coverage in Q4 was 4.9 times for most of the portfolio, with occupancy at 99.6%, and 99.4% of base rent collected.
Diverse and Resilient Portfolio
Core tenants include strong brands like Chili's, Olive Garden, and LongHorn, with sales growth reported up to 31%.
Improved Financial Metrics
Q4 FFO per share increased by 2.3% to $0.44, and full-year 2024 FFO per share grew by 3.6% to $1.73.
Efficient Capital Raising
Raised over $318 million in equity during 2024, with $102 million in Q4, and extended credit facilities to increase liquidity.
Lowlights
Interest Rate Challenges
Rising interest rates created a challenging backdrop for net lease companies, leading to a pause in acquisitions during early 2024.
Deceleration in Rent Collection
Sequential deceleration in rent collection by 40 basis points, partly due to timing issues related to asset acquisitions.
Company Guidance
During the Four Corners Property Trust, Inc. fourth quarter 2024 financial results conference call, significant metrics were highlighted. The company concluded the year with $265 million in acquisitions at a blended 7.1% cap rate, with notable activity in the second half where $203 million was acquired across 66 properties. The portfolio showed strong performance with a 99.6% occupancy rate and a rent coverage of 4.9 times. The company reported Q4 FFO of $0.44 per share, marking a 2.3% increase from the previous year, and full-year FFO per share of $1.73, up 3.6% from 2023. Cash rental income for the quarter was $60.8 million, reflecting a 6.6% increase compared to last year. The company maintained a fixed charge coverage ratio of 4.5 times and a net debt to adjusted EBITDA ratio of 4.9 times. Despite not providing forward guidance, the company expressed optimism for 2025, citing substantial liquidity and a strong acquisition pipeline.Four Corners Property Corporate Events
Business Operations and StrategyFinancial Disclosures
Four Corners Property Reports Resilient 2024 Financial Results
Positive
Feb 12, 2025
On February 12, 2025, Four Corners Property Trust, Inc. reported its financial results for the fourth quarter and full year of 2024. The company showed a disciplined approach to capital raising and investment, acquiring $265 million worth of properties leased to national brands. Despite market volatility, FCPT maintained a low leverage profile while extending debt maturities and increasing liquidity. The company achieved a 99.4% rent collection rate for the fourth quarter and a 99.8% rate for the entire year. Rental revenue for the fourth quarter rose by 5.3% to $60.7 million, and net income attributable to common shareholders was $26.2 million. FCPT’s Adjusted Funds from Operations (AFFO) per diluted share increased to $0.44 in the fourth quarter, reflecting a stable financial performance amid challenging market conditions.
Private Placements and FinancingBusiness Operations and Strategy
Four Corners Property Secures $940M Credit for Growth
Positive
Jan 31, 2025
On January 31, 2025, Four Corners Property Trust, Inc. entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement with JPMorgan Chase Bank, N.A. and other lenders. The agreement increases the total facility size to $940 million, including a $350 million revolving credit facility and a new $225 million term loan. This strategic financial move positions FCPT well for future growth, providing new capital to fund investments and ensuring no debt maturities for nearly two years. The company has also entered into interest rate swaps to manage the cost of the additional term loan. This development underscores FCPT’s strong banking relationships and favorable borrowing conditions, highlighting its readiness to capitalize on market opportunities.
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.