Attached files
| file | filename |
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| 8-K - 8-K - Four Corners Property Trust, Inc. | form8-kinvestorpresentation.htm |
| FCPT | APRIL 20181
INVESTOR PRESENTATION | APRIL 2018 www.fcpt .com
FOUR CORNERS PROPERTY TRUST
N YS E : F C P T
| FCPT | APRIL 20182
FORWARD LOOKING STATEMENTS
AND DISCLAIMERS
Cautionary Note Regarding Forward-Looking Statements:
This presentation 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:
The information in this communication contains and refer to certain non-GAAP financial measures, including FFO and AFFO. 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 at www.fcpt.com.
| FCPT | APRIL 20183
AGENDA
Company Overview and Update Page 3
Diversification and Acquisition Strategy Page 16
Financial Update & Key Credit Strengths Page 25
Key Investment Highlights Page 11
| FCPT | APRIL 20184
SENIOR MANAGEMENT TEAM
William Lenehan
President and CEO
Gerald Morgan
CFO
Former Board member and Chair of the Finance and Real Estate Committee at Darden Restaurants, Inc.
Private investor in net lease retail real estate
Member of the Board of Directors of Macy’s, Inc.
Former Board member and Chairman of the Investment Committee at Gramercy Property Trust, Inc.
Former CEO of Granite REIT, an investment grade single-tenant, triple-net REIT listed on the TSX
Ten years at Farallon Capital Management
B.A. from Claremont McKenna College
Former CFO of Amstar, served on Amstar’s Executive and Investment Committees
Former Managing Director of Financial Strategy & Planning at Prologis, Inc.
Former President and CFO of American Residential Communities
Served as a Senior Officer with Archstone prior to the company’s sale
Former consultant at Bain & Co.
B.S. in Mechanical Engineering and MBA from Stanford University
James Brat
General Counsel
Former Partner in the real estate department at the law firm of Pircher, Nichols & Meeks where he had
practiced since 1998
B.A. from Macalester College
Juris Doctorate from the UCLA School of Law
| FCPT | APRIL 20185
OVERVIEW OF FCPT
Four Corners Property Trust (“FCPT”) is an investment grade rated REIT primarily engaged in the
ownership, acquisition, and leasing of restaurant properties
527 properties, diversified by geography and brand, 415 of which are leased to Darden under long-
term triple-net leases
▪ 5 Restaurant Brands at Spin-Off from Darden:
Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Wildfish Seafood Grille
▪ 23 Additional Brands Acquired:
Arby’s, BJ’s Restaurant, Bob Evans, Buffalo Wild Wings, Burger King, Chick-Fil-A, Chili’s, Del
Taco, Denny’s, Fazoli’s, Hardee’s, KFC, McAlister’s Deli, McDonald’s, MOD Pizza, Panda
Express, Pizza Hut, Red Lobster, Starbucks, Steak ‘n Shake, Taco Bell, Wendy’s, Zaxby’s
▪ Portfolio tenants are principally investment grade (87%) with positive operating trends, fulsome
public disclosure, and strong rent coverage (EBITDAR / rent of 4.6x1)
Strategy to grow and diversify portfolio through acquisitions and sale leasebacks
Low leverage and flexible unsecured capital structure to support diversification strategy
Sufficient platform scale with equity market capitalization of $1.4 billion and a total market
capitalization of $2.0 billion2
__________________________
Figures as of 3/31/2018, unless otherwise stated.
1. Figure as of 12/31/2017
2. Based on a share price of $23.09 as of 3/29/2018
| FCPT | APRIL 20186
2017 YEAR IN REVIEW & RECENT UPDATES
• Announced an increase in the annual dividend to $1.10 per share (over 13% increase from prior dividend)
• Active acquisitions & portfolio management program focused on high credit quality operators:
• Announced a strategic agreement to acquire 41 properties for $67 million from Washington Prime Group at a 6.7%
cap rate in September 2017, closed on the first 10 properties for $14 million in January 2018
• Total dispositions of $41 million since inception of 5 properties at highly attractive cap rates (4.8% weighted
average)
• Diversifying and strengthening capital markets access
- December 2016: Initiated At-The-Market (“ATM”) equity program, capitalizing on sector-best equity multiple to raise
$33.5 million in cumulative equity since inception
- January 2017: Obtained Investment Grade rating from Fitch (BBB-) to gain access to unsecured debt market
- June 2017: Issued $125 million of 7-year and 10-year unsecured notes via private placement, extending debt maturity
schedule
- October 2017: Recast and extended bank credit facility with lower interest rates, realizing $1.8 million in annual cash savings
Figures as of 3/31/2018, unless otherwise stated.
Since the spin-off was completed in late 2015, FCPT has made significant
progress on portfolio diversification and improving access to capital markets
Property
Count
Volume
($mm)
Initial Cash
Yield
Term
(Years)
2016 (Q3, Q4) 59 $94.0 6.6% 17.0
2017 (Full year) 43 $98.6 6.8% 18.6
2018 (Q1) 12 $20.4 6.6% 9.5
Total Q3'16 - Q1'18 114 $213.0 6.7% 17.0
| FCPT | APRIL 20187
CASE STUDY:
FCPT AND WASHINGTON PRIME
• On September 20, 2017, FCPT announced the acquisition of 41 restaurant properties from Washington Prime Group (“WPG”) for a purchase price
of approximately $67 million (6.7% initial cash yield) with a weighted average remaining 8 year lease term
- Attractive Anchors: Approximately 83% of the net operating income is from properties on out-lots to either open-air properties or WPG’s
“Tier One Enclosed” properties
- Unencumbered Sites: All properties are outparcel to malls / shopping centers unencumbered by property level debt
- Diverse Portfolio: 22 different restaurant brands across 12 states (CT, CO, FL, IA, IL, IN, MD, NJ, OH, PA, TX, VA)
• The first 10 properties / $14 million closed in January 2018. Tranche two is expected to close in late Q2 / early Q3 2018
__________________________
Figures as of 3/31/2018, unless otherwise stated.
22 Portfolio Brands
| FCPT | APRIL 20188
FCPT CLOSED ACQUISIT IONS
Note: Figures updated as of 3/31/2018.
Tenant Location
# of
Properties Operator / Guarantor Information
Purchase
Price ($mm)
Initial Cash
Yield
Term
(yrs)
Annualized Rent
Bumps Announced
Pizza Hut IL, IN 6 40-unit sub. of 150-unit operator $5.7 7.2% 20 1.5% 7/18/2016
Wendy's TX 1 2-unit operator $2.1 6.5% 10 1.2% 8/2/2016
Arby's NC 2 24-unit operator $3.5 6.6% 18 1.0% 9/6/2016
KFC MI 4 360-unit operator $3.9 7.1% 20 1.4% 9/14/2016
Buffalo Wild Wings IL, IA 3 7-unit operator (assigned to 40-unit operator) $7.9 6.5% 12 CPI 9/15/2016
Dairy Queen OK 1 76-unit operator $2.6 6.6% 18 1.3% 10/20/2016
Burger King VA, NC, MS, AL 5 98-unit operator $11.5 6.5% 20 1.5% 10/28/2016
Arby's VA, NC 2 24-unit operator $4.3 6.6% 18 1.0% 11/4/2016
USRP Portfolio: Tranche 1
(7 concepts)
MI, KY, OH, IN,
IL, FL, CO, GA
10 Mix of corporate and strong franchisees $15.6 6.6% 10
Various (some
CPI & % rent)
11/9/2016
KFC IN, MI, WI 16 130-unit operator $21.1 6.5% 20 1.5% 11/10/2016
Taco Bell IN 1 85-unit sub. of 250-unit operator $1.3 6.7% 5 NA 11/15/2016
Hardee's AL & GA 4 35-unit operator $6.9 6.5% 20 1.5% 12/15/2016
Burger King TN 4 115-unit operator $7.7 6.5% 20 1.5% 12/28/2016
USRP Portfolio: Tranche 2
(3 concepts)
AL, IN, NY, TN 4 Mix of corporate and strong franchisees $5.8 6.5% 12
Various (some
CPI & % rent)
1/12/2017
Taco Bell SC 1 60-unit sub. of 250-unit operator $2.4 6.5% 12 1.5% 1/13/2017
McAlister's TX 4 40-unit operator $8.9 6.7% 15 1.5% 3/17/2017
Bob Evans
DE, IN, MD, MI, NY,
OH, PA, VA, WV
16 524-unit operator $35.1 7.1% 20 2.0% 5/1/2017
Burger King MS, TN 7 115-unit operator $16.0 6.7% 20 2.0% 6/30/2017
Taco Bell IN 2 270-unit operator $3.4 6.5% 20 0.5% 7/26/2017
MOD Pizza/Del Taco MI 1 5-unit sub. of 90-unit operator $2.7 7.4% 10 2.0% 9/15/2017
Red Lobster OH, MI, PA, GA 5 700-unit operator $19.4 6.7% 21 2.0% 11/2/2017
LongHorn Steakhouse SC 1 490-unit sub. of 1,695-unit operator $1.5 6.6% 10 2.5% 12/7/2017
Burger King MS 2 115 unit operator $3.3 6.7% 20 1.5% 12/19/2017
Buffalo Wild Wings IL 2 65 unit sub of 200+ unit operator $6.6 6.6% 14 2.0% 1/10/2018
WPG Portfolio: Tranche 1
(10 concepts)
FL, IL, IA, OH 10 8 corporate and 2 franchisees $13.8 6.6% 7
Various (some
CPI & % rent)
1/12/2018
Total / Wtd. Avg. 114 $213.0 6.7% 17 1.7%
| FCPT | APRIL 20189
FCPT CLOSED DISPOSIT IONS
Note: Figures updated as of 3/31/2018.
FCPT remains a net acquirer of real estate
While the company receives many unsolicited offers to sell properties, only opportunistic and
attractive cap rate offers are considered
All proceeds from sales exchanged accretively into new investments via 1031 exchange mechanism
Tenant Location
# of
Properties Operator / Guarantor Information
Sale
Price ($mm)
Initial Cash
Yield
Term
(yrs)
Annualized Rent
Bumps Announced
Bahama Breeze Tampa, FL 1 Bahama Breeze Holdings, LLC $18.5 4.8% 12 1.5% 10/24/2016
Olive Garden
Pembroke Pines,
FL
1 Darden Restaurants, Inc. $6.3 4.8% 16 1.5% 10/24/2016
Olive Garden Lakeland, FL 1 Darden Restaurants, Inc. $5.2 5.1% 15 1.5% 5/17/2017
Olive Garden Fairfax, VA 1 Darden Restaurants, Inc. $5.9 4.7% 16 1.5% 9/13/2017
Olive Garden Pinellas Park, FL 1 Darden Restaurants, Inc. $5.1 4.7% 16 1.5% 11/24/2017
Total / Wtd. Avg. 5 $41.0 4.8% 14 1.5%
| FCPT | APRIL 201810
527 Properties
44 States
28 Brands
3.7 million sq ft
NATIONAL FOOTPRINT WITH INCREASING
BRAND DIVERSIF ICATION
Portfolio at Inception Acquired Properties
MN
SD
NJ
OH
INIL
VT NHID
AL
AZ
AR
CA
CO
CT
DE
FL
GA
IA
KS
KY
LA
ME
MD
MA
MI
MS
MO
MT
NE
NV
NM
NY
NC
ND
OK
OR
PA
RI
SC
TN
TX
UT
VA
WA
WV
WI
WY
__________________________
Note: Figures in this presentation are as of 3/31/2018 unless otherwise stated.
Map is based on Current scheduled minimum contractual rent as of 3/31/2018; Excludes six owned / ground leased in the Kerrow Restaurant Operating Business.
| FCPT | APRIL 201811
AGENDA
Company Overview and Update Page 3
Diversification and Acquisition Strategy Page 16
Financial Update & Key Credit Strengths Page 25
Key Investment Highlights Page 11
| FCPT | APRIL 201812
HIGH QUALITY PORTFOLIO
Properties:
• 527 Properties
• 87% Investment grade tenancy
• 28 brands – 16 Quick Service & Fast Casual / 12 Casual, Family & Fine Dining
Geography:
• 44 states
• Only Florida (10.8%) and Texas (10.6%) are above 10% of NOI
Term Remaining:
• 12.7 years
• Less than 1.5% of NOI expiring before 2027
Contractual Rent
(Cash):
$109.4 million
EBITDAR / Rent
Coverage:
4.6x1
Annual Rent
Escalation:
1.5% average fixed annualized rent increase
Lease Structure:
Net leases with tenant responsible for repair and maintenance costs, property tax,
insurance and building restoration
Predominantly individual leases to allow landlord flexibility
FCPT Portfolio Summary
__________________________
Figures as of 3/31/2018 unless stated otherwise
1. Figure as of 12/31/2017
Casual,
Family
& Fine
Dining
Quick
Service
& Fast
Casual
| FCPT | APRIL 201813
PORTFOLIO DIVERSIF ICATION
___________________________
1. Current scheduled minimum contractual rent as of 3/31/2018.
Brand Breakdown by Annual Base Rent (ABR)
18%
105 units
4%
13 units
13%
112 units
65%
297 units
74%
20%
6%
Initial Portfolio:
Rental Revenue of $94.4 million
(ABR at spin)
Today:
Rental Revenue of $109.4 million1
(ABR at 3/31/2018)
104 units
300 units
14 units
| FCPT | APRIL 201814
LEASE MATURITY SCHEDULE
___________________________
1. Current scheduled minimum contractual rent as of 3/31/2018
2. Calculated by square feet
Note: Excludes renewal options.
0.0% 0.0% 0.2% 0.2%
0.3% 0.3% 0.1% 0.1% 0.2%
15.2%
15.8%
14.1%
13.7%
12.8%
9.6%
8.6%
0.7%
0.0%
3.6% 3.7%
0.0%
0.9%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
Weighted average lease term of
12.7 years
Lease Maturity Schedule by % Annual Base Rent1 (ABR)
Less than 1.5% of rental income
matures prior to 2027
99.9% occupied as of 3/31/20182
# Properties - - 3 2 3 4 1 1 2 74 74 70 67 62 46 40 5 - 41 27 - 4
Cash ABR ($000s)
(1) 179 171 298 3 6 85 1 7 234 16,621 17,273 15,417 14,936 14,012 10,452 9, 38 787 3,965 4,011 1,021
Total SF (000s) 15 8 12 18 2 4 7 535 539 3 518 93 363 346 21 118 123 31
| FCPT | APRIL 201815
N/A N/A
2.1x
2.6x
2.8x
3.6x
4.6x
ADC VEREIT Spirit STORE Realty National Retail FCPT
54%
64%
81%
85%
100% 100% 100%
STOR VER O SRC ADC NNN FCPT
20%
24%
37% 40%
44% 46%
87%
STOR NNN SRC VER ADC O FCPT
___________________________
Sources: FCPT figures as of 3/31/2018, except EBITDAR / Rent coverage as of 12/31/2017; peer data based on public filings as of 12/31/2017 and Green Street Advisors.
1. Uses 4-Wall / Unit-Level Coverage where available.
2. Based on annualized base rent. Information for peers per company filings (O, ADC and VER) and Green Street Advisors (STOR, SRC and NNN). FCPT classifies investment grade tenants as a tenant with at least one
investment grade rating from Moody’s, S&P or Fitch.
3. Based on annualized base rent.
4. Includes retail, restaurant, movie theaters, health clubs, automotive and consumer goods rental.
FCPT’S PORTFOLIO COMPARES
FAVORABLY ACROSS MAJOR METRICS
EBITDAR Coverage1 % Investment Grade Tenants2
Weighted Average Lease Term % Retail Properties3
9.5 9.5
10.0 10.2
11.5
~14
12.7
VER O SRC ADC NNN STOR FCPT
(In years)
Peer Average: 2.8x
Peer Average: 81%
Peer Average: 35%
Peer Average: 10.8 years
(4)
41% 98%25% 100% 81%% Tenants
included:
| FCPT | APRIL 201816
AGENDA
Company Overview and Update Page 3
Diversification and Acquisition Strategy Page 16
Financial Update & Key Credit Strengths Page 25
Key Investment Highlights Page 11
| FCPT | APRIL 201817
BUSINESS PLAN AND
DIVERSIF ICATION STRATEGY
FCPT has a core portfolio that provides stable cash flow, as well as a strong
balance sheet to support diversification growth objectives
Start with 100% concentration in casual dining, but an extremely strong tenant with an investment grade
credit rating
Seek to grow and diversify with an initial focus on the quick service subsector in order to move portfolio
closer to reflecting national restaurant landscape
Become a preferred partner and capital source for leading restaurant operators and franchisees, capitalizing
on the current industry trends pushing operator consolidation and an “asset light” business model
Maintain conservative and flexible balance sheet
− Continue to improve access to equity and debt capital
− Low leveraged balance sheet with substantial liquidity
− Unencumbered properties
− Conservative payout ratio of approximately 80% of AFFO
− UPREIT structure offering compelling OP unit option
− Capital recycling through selective dispositions
1
2
3
4
| FCPT | APRIL 201818
FCPT ACQUISIT ION PHILOSOPHY
AND UNDERWRITING CRITERIA
Acquisition Philosophy
• Acquire nationally recognized branded restaurants that are well located with creditworthy lease guarantors
• Purchase assets only when accretive to cost of capital
• Increase diversification by targeting different brands, meal price-points, cuisine types, and geographies
Underwriting Criteria
• Acquisition criteria is approximately split 50% / 50% between credit and real estate metrics
• Acquisition decisions are informed by a property scorecard based on these metrics, but ultimately rely on
human judgement
Real Estate Criteria (~50%):
− Location
− Re-use potential
− Lease structure
− Absolute rent
− Rent growth
Credit Criteria (~50%):
− Guarantor credit
− Brand durability
− Store performance
− Rent-to-sales
− Lease term
| FCPT | APRIL 201819
0 1 2 3 4 5 6 7 8 9 10
Screened / Passed
Closed, Under Contract, Negotiating LOI
“TedWilliams described in his book, The Science of Hitting, that the most important thing, for a hitter, is to wait
for the right pitch…and that's exactly the philosophy I have about investing...wait for the right pitch…and it will
come…it's the key to investing.” –Warren Buffett
CONCEPTUAL UNDERWRITING
STRIKE ZONE
E
x
p
e
n
s
iv
e
Che
a
p
A
c
c
ret
iv
e
D
ilut
iv
e
Distressed Trophy
Strike
Zone
Valuation to Score Matrix
FCPT
Long Term
WACC
FCPT is disciplined in its underwriting, passing on properties
with weak real estate, weak credit or aggressive pricing
V
alua
tio
n
(
G
o
in
g
in
Cap
Ra
te
)
Total Underwriting Score
Figures as of November 2017.
| FCPT | APRIL 201820
VAST ADDRESSABLE MARKET WITHIN
RESTAURANT INDUSTRY SUBSECTORS
✓~✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓✓ ✓~
Source: Census Bureau, Bureau of Economic Analysis, Wall Street Research as of March 2017; Data as of December 2015.
Retail Sales
$4.85T
Net Exports
-$0.5T
US GDP – $17.9 Trillion
Food Services
(13.6% of Retail Sales, $620bn)
Consumption
$12.3T
Investment
$3.0T
Government
$3.3T
Quick Service
$255bn
Casual Dining
$177bn
Fine
Dining
$19bn
Non-
Restaurant
$128bn
Hamburger
$80bn
Pizza
$38bn
Sand-
wich
$30bn
Coffee
$25bn
Chicken
$23bn
Mex-
ican
$22bn
Other
$37bn
Varied
Menu
$56bn
Asian
$22bn
Steak
$19bn
Italian
$18bn
Mex-
ican
$13bn
Sea-
food
$12bn
Other
$36bn
FCPT
Target ~ ~
Family
/ Buffet
$41bn
| FCPT | APRIL 201821
INDUSTRY BENCHMARKING
Note: Green font denotes FCPT owned brands and orange font denotes brands that FCPT is under contract to
purchase per the announced Washington Prime Group transaction.
FCPT is focused on acquiring restaurants operated by top brands within each cuisine type
% of % of Predominately Top 5
Revenue Dining Restaurant Free-standing Top 5 Brands by Market Share (% of cuisine type) % of
($bn) Sector Industry Buildings #1 #2 #3 #4 #5 cuisine type
Quick Service:
Burger $80 31.4% 16.3% Yes McDonald's (46%) Burger King (12%) Wendy's (11%) Sonic Drive-In (6%) Dairy Queen (5%) 80%
Pizza $38 14.9% 7.7% No Pizza Hut (27%) Domino's (22%) Little Caesars (16%) Papa John's (13%) Papa Murphy's (4%) 82%
Sandwich $30 11.8% 6.1% Yes Subway (54%) Arby's (16%) Jimmy John's (9%) Jersey Mike's Subs (3%) Jason's Deli (3%) 85%
Coffee $25 9.8% 5.1% No Starbucks (63%) Dunkin Donuts (30%) Tim Hortons (3%) Krispy Kreme (3%) Caribou Coffee (1%) 99%
Chicken $23 9.0% 4.7% Yes Chick-fil-A (33%) KFC (21%) Popeyes (13%) Zaxby's (7%) Bojangles' (6%) 80%
Mexican $22 8.6% 4.5% Yes Taco Bell (52%) Chipotle (26%) Qdoba (5%) Del Taco (4%) Moe's Southwest (4%) 91%
Other (Asian, Seafood, Misc) $37 14.5% 7.5% Yes Panera Bread (52%) Panda Express (29%) Long John Silver's (6%) Captain D's (6%) Pei Wei (4%) 97%
Total Quick Service $255 100.0% 51.9%
Casual Dining:
Varied Menu $56 31.8% 11.4% Yes Applebee's (18%) Chili's Grill & Bar (13%) Buffalo Wild Wings (13%) Cheesecake Factory (7%) TGI Fridays (6%) 57%
Asian $22 12.5% 4.5% No NA NA NA NA NA <5%
Steak $19 10.8% 3.9% Yes Outback (35%) Texas Roadhouse (29%) LongHorn (22%) Logan's (9%) Sizzler (3%) 98%
Italian $18 10.2% 3.7% Yes Olive Garden (59%) Carrabba's (11%) Maggiano's (6%) Macaroni Grill (5%) Buca di Beppo (4%) 85%
Mexican $13 7.4% 2.6% Yes On the Border (48%) Chuy's (38%) El Torito (13%) NA NA 99%
Seafood $12 6.8% 2.4% Yes Red Lobster (65%) Bonefish Grill (17%) Joe's Crab Shack (11%) Bubba Gump (6%) NA 99%
Other $36 20.5% 7.3% NA NA NA NA NA NA NA
Total Casual Dining $176 100.0% 35.8%
Family / Buffet $41 100.0% 8.4% Yes IHOP (28%) Cracker Barrel (25%) Denny's (24%) Golden Corral (15%) Bob Evans (8%) 99%
Fine Dining $19 100.0% 3.9% No Ruth's Chris (20%) Capital Grille (13%) Morton's (9%) Saltgrass (8%) Seasons 52 (8%) 58%
Total Restaurant / Portfolio $491 100.0%
| FCPT | APRIL 201822
US eCommerce Penetration by Retail Category (2016)
46.7%
31.8%
16.4%
14.8%
11.1% 11.0% 10.5%
7.3%
2.8%
0.9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Consumer
Electronics
Books &
Magazines
Toys & Hobbies Apparel &
Accessories
Health &
Personal Care
Jewelry &
Watches
Sports & Fitness
(ex apparel)
Furniture &
Home
(incl appliances)
Total
Grocery
Food &
Beverage1 1
Source: ComScore, Census Bureau, BEA, Internet Retailer, Wall Street Research
1 Calculated using estimated online sales
Online / digital sales penetration has remained low within restaurants
FOOD & BEVERAGE SEEMS TO BE
MOST RESIL IENT TO E -COMMERCE
| FCPT | APRIL 201823
RAPID FRANCHISEE CONSOLIDATION
WITHIN RESTAURANT INDUSTRY
Units Owned by the Top 200 Franchisees Average units per Top 200 Franchisees
16,715
17,887
18,408
20,331
21,831
23,177
25,176
26,997
0
4,000
8,000
12,000
16,000
20,000
24,000
28,000
2009 2010 2011 2012 2013 2014 2015 2016
84
89
92
102
109
116
126
130
0
15
30
45
60
75
90
105
120
135
150
2009 2010 2011 2012 2013 2014 2015 2016
Source: Restaurant Finance Monitor (June 2017).
The franchisee industry is highly fragmented, but undergoing consolidation and
growth by top players, presenting new partnership opportunities for FCPT
| FCPT | APRIL 201824
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Brands with mid-range sales have more
options for re-tenanting in case of vacancy
THOUGHTFUL BRAND SELECTION
AIMED AT PROTECTING CASH FLOW
Casual
Dining
Fast
Casual
Quick
Service
___________________________
Source: Brand average sales per Nation’s Restaurant News Top 200 (2017 edition, uses 2016 financials).
$10,909
Brand Average Sales
Volume ($000s)
| FCPT | APRIL 201825
AGENDA
Company Overview and Update Page 3
Diversification and Acquisition Strategy Page 16
Financial Update & Key Credit Strengths Page 25
Key Investment Highlights Page 11
| FCPT | APRIL 201826
Current Capitalization Current Trading Metrics
($ million, except per share) Cash NOI ($ million)
3 $109.4
Share price (3/29/2018) $23.09 Implied Cap Rate 5.7%
Shares and OP units outstanding (millions) 61.8 Consensus AFFO per share (12 month forward) $1.37
Equity value $1,427 Price / AFFO Multiple 16.9x
Debt: Quarterly Dividend per share $0.2750
Bank term debt $400 Annualized Dividend per share $1.10
Revolving credit facility $0 Dividend Yield 4.8%
Unsecured private notes $125
Total market capitalization $1,952
Cash1 ($24)
Implied enterprise value $1,928
EBITDA (cash, Last Quarter Annualized)2 $98
EBITDA (GAAP, Last Quarter Annualized)2 $104
Credit Metrics Current
Total debt to total market capitalization 26.9%
Fixed charge coverage (per Q4 2017 covenant compliance) 5.7x
Net debt to EBITDA (cash, Last Quarter Annualized)2 5.1x
Net debt to EBITDA (GAAP, Last Quarter Annualized)2 4.8x
___________________________
Note: Figures as of 12/31/2017, unless otherwise stated.
1. Approximate, unaudited cash balance as of 3/31/2018, adjusted for unpaid dividends.
2. EBITDA and leverage metric calculations based on last quarter annualized.
3. Current scheduled minimum contractual rent as of 3/31/2018.
4. Peers are calculated based on Q4 2017 filings, pro forma for announced capital transactions.
SUMMARY CAPITALIZATION AND
F INANCIALS
4.8x
4.3x
5.5x
4.8x
6.0x 6.3x 5.7x
1.2x
0.3x
1.0x
4.8x
4.3x
5.5x
6.0x 6.0x
6.6x 6.7x
FCPT ADC O NNN STOR SRC VER
Net Debt/EBITDA
Net Debt + Pfd./EBITDA
GAAP Leverage Relative to Net Lease Peers4
| FCPT | APRIL 201827
FCPT DEBT MATURITY SCHEDULE
___________________________
Figures as of 3/31/2018.
1. Excludes undrawn revolver
Current Debt Maturity Schedule1
$0 $0 $0
$250
$400
$0
$50
$0 $0
$75
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Unsecured Notes
Undrawn Revolver Capacity
Drawn Revolver
Unsecured Term Loan
Weighted average
maturity of 5.4 years1
| FCPT | APRIL 201828
High Quality
Portfolio
Diversified by
Geography and
Brand
Well-located assets diversified geographically across 44 states in the U.S.
Darden property-level revenue ~50% above casual dining peers
Sales of Darden branded assets demonstrate strong underlying value and liquidity
Strong acquisition platform with 114 restaurant properties / $213 million in acquisitions
volume since July 2016
Strong, Stable
and Growing
Cash Flow
12.7 year average lease term with < 1.5% of leases expiring before 2027
Annualized rent escalators of 1.5%
Focus on sustainable tenant rents with EBITDAR / rent coverage of 4.6x1 – best-in-class
within net lease sector
Investment
Grade Credit
Profile
FCPT received BBB- investment grade rating from Fitch in January 2017
FCPT’s largest tenant, Darden, who also provides a corporate guarantee on its leases,
is rated BBB/BBB/Baa2 and continues to perform well and increase market share
Conservative
Financial
Position
Financially disciplined acquisition strategy
Current leverage of 4.8x Net Debt / EBITDA (GAAP), with no near-term maturities
100% unencumbered asset base
Conservative dividend payout ratio of ~80% of AFFO
Strong liquidity profile with $250 million fully undrawn revolver
Strong institutional shareholder support
Experienced
Management
and Board
Highly regarded leadership with extensive retail net lease and public market REIT
experience
Board with significant restaurant and real estate experience and a strong track record
Members of management and board are meaningfully invested in FCPT; interests are
aligned with shareholders
Best-in-class corporate governance
FCPT KEY INVESTMENT HIGHLIGHTS
__________________________
Figures as of 3/31/2018 unless otherwise stated
1. Figure as of 12/31/2017
| FCPT | APRIL 201829
FOUR CORNERS PROPERTY TRUST
N YS E : F C P T