Attached files
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| EX-99.2 - SUPPLEMENTAL FINANCIAL & OPERATING INFORMATION - Four Corners Property Trust, Inc. | d236829dex992.htm |
| 8-K - FORM 8-K - Four Corners Property Trust, Inc. | d236829d8k.htm |
Exhibit 99.1
Four Corners Property Trust, Inc. Announces Second Quarter 2016 Earnings
MILL VALLEY, CA – August 3, 2016 / Business Wire – Four Corners Property Trust, Inc. (“FCPT” or the “Company”, NYSE: FCPT) announced today its operating results for the quarter ended June 30, 2016.
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.fourcornerspropertytrust.com/.
Highlights for the Quarter Ended June 30, 2016:
| • | Net income of $14.8 million, or $0.25 per diluted common share. |
| • | GAAP rental income of $26.2 million, consisting of $23.6 million in cash rents and $2.6 million of straight-line rent adjustments, earned on the 418 properties leased to Darden Restaurants. |
| • | NAREIT-defined Funds from Operations (FFO) of $19.9 million, or $0.33 per diluted common share. |
| • | Adjusted Funds from Operations (AFFO) of $18.2 million, or $0.30 per diluted common share. |
| • | General and administrative (G&A) expenses for the quarter of $2.5 million including $0.4 million of non-cash, stock-based compensation. Management reconfirms its guidance for an annual G&A run rate of approximately $10 million, excluding non-cash, stock-based compensation and acquisition transaction costs. |
| • | Dividend of $0.2425 per common share for the second quarter of 2016. |
| • | Approximately $370 million of liquidity at quarter-end from available cash and capacity on the Company’s undrawn $350 million, 4-year revolving credit facility. |
CEO William H. Lenehan’s Comments:
“During the second quarter of the year we built a significant acquisition pipeline. Our first acquisitions were announced subsequent to quarter end and we have numerous additional properties that are in diligence currently. We intend to continue our diversification and growth strategy of acquiring well located, net-leased restaurant properties with creditworthy operators. Our existing portfolio continues to perform as expected.”
Real Estate Portfolio:
As of June 30, 2016, the Company’s portfolio consisted of 424 restaurant properties located in 44 states. The properties are 100% occupied with 418 properties leased to Darden Restaurants under long-term, triple net leases with a weighted average remaining lease term of approximately 14.0 years and an estimated portfolio weighted average EBITDAR to Lease Rent coverage of 4.3x. The remaining six properties are owned and ground leased properties operated by a taxable REIT subsidiary of FCPT under a franchise agreement with LongHorn Steakhouse.
Conference Call Information:
Company management will host a conference call and audio webcast on Wednesday, August 3, 2016 at 2:00 pm Eastern Time to discuss the results. Presentation materials will be posted prior to the call on the Company’s website, www.fourcornerspropertytrust.com.
Interested parties can listen to the call via the following:
Internet: Go to http://dpregister.com/10090176 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 Four Corners Property Trust call.
Replay: Available through November 3, 2016 by dialing 1-877-344-7529 (domestic) / 1-412-317-0088 (international), Access Code 10090176
About FCPT:
FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company will seek to grow its portfolio by acquiring additional real estate to lease, on a triple net basis, for use in the restaurant and related food services 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. Factors that could have a material adverse effect on the Company’s operations and future prospects or that could cause actual results to differ materially from the Company’s expectations are included in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 22, 2016.
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 Second Quarter 2016 operating results and other information on the company are available on the investors relations section of FCPT website at www.fourcornerspropertytrust.com
Four Corners Property Trust
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues: |
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| Rental income |
$ | 26,210 | $ | — | $ | 52,463 | $ | — | ||||||||
| Restaurant revenues |
4,701 | 4,624 | 9,560 | 9,514 | ||||||||||||
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| Total revenues |
30,911 | 4,624 | 62,023 | 9,514 | ||||||||||||
| Operating expenses: |
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| General and administrative |
2,508 | — | 5,826 | — | ||||||||||||
| Depreciation and amortization |
5,101 | 185 | 10,288 | 397 | ||||||||||||
| Restaurant expenses |
4,593 | 4,335 | 9,291 | 8,848 | ||||||||||||
| Interest expense |
3,858 | — | 8,039 | — | ||||||||||||
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| Total operating expenses |
16,060 | 4,520 | 33,444 | 9,245 | ||||||||||||
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| Income before provision for income taxes |
14,851 | 104 | 28,579 | 269 | ||||||||||||
| (Provision for) benefit from income taxes |
(50 | ) | 30 | 80,506 | 11 | |||||||||||
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| Net Income |
$ | 14,801 | $ | 134 | $ | 109,085 | $ | 280 | ||||||||
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| Basic net income per share |
$ | 0.25 | N/A | (1) | $ | 2.02 | N/A | (1) | ||||||||
| Diluted net income per share |
$ | 0.25 | N/A | (1) | $ | 1.84 | N/A | (1) | ||||||||
| Regular dividends declared per share |
$ | 0.2425 | N/A | (1) | $ | 0.4850 | N/A | (1) | ||||||||
| Weighted-average shares outstanding: |
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| Basic |
59,830,284 | N/A | (1) | 54,102,565 | N/A | (1) | ||||||||||
| Diluted |
59,844,059 | N/A | (1) | 59,271,807 | N/A | (1) | ||||||||||
| (1) | Due to the material change in the Company’s operations as a result of our formation transaction in November 2015, management does not consider presentation of income per share for the pre-formation period to be meaningful. |
Four Corners Property Trust
Consolidated Balance Sheets
(In thousands, except share and per share data)
| June 30, 2016 (Unaudited) |
December 31, 2015 | |||||||
| ASSETS | ||||||||
| Real estate investments: |
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| Land |
$ | 404,812 | $ | 404,812 | ||||
| Buildings, equipment and improvements |
992,442 | 992,418 | ||||||
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| Total real estate investments |
1,397,254 | 1,397,230 | ||||||
| Less: Accumulated depreciation |
(578,827 | ) | (568,539 | ) | ||||
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| Total real estate investments, net |
818,427 | 828,691 | ||||||
| Cash and cash equivalents |
38,732 | 98,073 | ||||||
| Derivative assets |
— | 165 | ||||||
| Deferred rent |
6,690 | 1,500 | ||||||
| Other assets |
851 | 1,008 | ||||||
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| Total Assets |
$ | 864,700 | $ | 929,437 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: |
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| Notes payable ($400,000, net of $6,902 and $7,698 of deferred financing costs, respectively) |
$ | 393,098 | $ | 392,302 | ||||
| Derivative liabilities |
9,294 | 477 | ||||||
| Deferred rental revenue |
7,866 | 7,940 | ||||||
| Deferred tax liabilities |
206 | 80,881 | ||||||
| Dividends payable |
14,509 | — | ||||||
| Other liabilities |
3,898 | 6,195 | ||||||
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| Total liabilities |
428,871 | 487,795 | ||||||
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| Stockholders’ equity: |
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| 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, 59,885,881 and 42,741,995 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively |
6 | 4 | ||||||
| Additional paid-in capital |
437,437 | 436,697 | ||||||
| Accumulated other comprehensive loss |
(8,862 | ) | (316 | ) | ||||
| Retained earnings |
7,248 | 5,257 | ||||||
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| Total stockholders’ equity |
435,829 | 441,642 | ||||||
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| Total Liabilities and Stockholders’ Equity |
$ | 864,700 | $ | 929,437 | ||||
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Four Corners Property
Trust FFO and AFFO
(Unaudited)
(In thousands, except share and per share data)
| Three Months Ended June 30, 2016 |
Six Months Ended June 30, 2016 |
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| Funds from operations (FFO): |
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| Net income attributable to stockholders in accordance with GAAP |
$ | 14,801 | $ | 109,085 | ||||
| Depreciation and amortization |
5,101 | 10,288 | ||||||
| Deferred tax benefit from REIT election |
— | (80,409 | ) | |||||
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| FFO (as defined by NAREIT) |
$ | 19,902 | $ | 38,964 | ||||
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| Real estate acquisition costs |
— | — | ||||||
| Non-cash stock-based compensation |
429 | 746 | ||||||
| Non-cash amortization of deferred financing costs |
398 | 796 | ||||||
| Other non-cash interest expense |
55 | 435 | ||||||
| Straight-line rent |
(2,595 | ) | (5,191 | ) | ||||
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| Adjusted funds from operations (AFFO) |
$ | 18,189 | $ | 35,750 | ||||
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| Fully diluted shares outstanding |
59,844,059 | 59,271,807 | ||||||
| FFO per diluted share |
$ | 0.33 | $ | 0.66 | ||||
| AFFO per diluted share |
$ | 0.30 | $ | 0.60 | ||||