Breaking Down Four Corners Property Trust, Inc. (FCPT) Financial Health: Key Insights for Investors

Are you keeping a close watch on Four Corners Property Trust (FCPT) and wondering about its financial stability? Did you know that in 2024, FCPT acquired 87 properties for a total of $264.6 million, boasting an initial weighted average cash yield of 7.1%? With rental revenue for the fourth quarter increasing by 5.3% to $60.7 million, and a high rent collection rate of 99.8% for the year, how sustainable is this performance? Let’s explore FCPT's key financial metrics and strategic decisions to help you assess its financial health and make informed investment decisions.

Four Corners Property Trust, Inc. (FCPT) Revenue Analysis

Four Corners Property Trust, Inc. (FCPT) primarily generates revenue through leasing its properties to tenants, predominantly in the restaurant and retail industries. The company operates as a real estate investment trust (REIT), focusing on acquiring, owning, and leasing properties under long-term net leases.

To understand the specifics of Four Corners Property Trust, Inc. (FCPT)'s revenue streams, we can look at the recent financial data available. However, please note that I don't have access to real-time updated financial data for the full fiscal year 2024. As of right now, I can provide some insights based on the historical data and trends up to the end of the last fiscal year, 2023, and available information for early 2024.

Key aspects of their revenue include:

• Rental Income: The vast majority of FCPT's revenue comes from rental income generated from their portfolio of net-leased properties. These leases typically require tenants to cover property taxes, insurance, and maintenance expenses, providing a stable and predictable income stream.
• Tenant Diversification: While primarily focused on restaurant and retail tenants, diversification within these sectors can influence revenue stability.
• Lease Terms: The length and structure of lease agreements (including rental escalations) significantly impact revenue.

To provide a more detailed analysis, it's essential to consider the year-over-year revenue growth. Here’s what we can look at:

• Historical Trends: Reviewing past annual reports and quarterly filings to identify revenue growth rates over the past few years.
• Percentage Increase/Decrease: Calculating the percentage change in revenue from one year to the next to gauge growth trajectory.

The contribution of different business segments (in FCPT's case, primarily different property types or tenant categories) to overall revenue can highlight areas of strength and potential vulnerability. For example, are there any significant changes in revenue streams? Let's consider:

• Acquisitions and Dispositions: Changes in the property portfolio due to acquisitions or dispositions can significantly impact revenue.
• Lease Renewals and Rent Adjustments: The terms of renewed leases and any adjustments to rental rates can affect revenue.
• Economic Factors: Broader economic conditions and industry trends can influence the performance of tenants and, consequently, rental income.

Without specific 2024 data, a general illustration of how revenue streams might be analyzed is shown below.

Note that this is an illustrative table, and actual data would be sourced from FCPT's financial reports.

For further insights into the investors of Four Corners Property Trust, Inc. (FCPT), you might find this resource helpful: Exploring Four Corners Property Trust, Inc. (FCPT) Investor Profile: Who’s Buying and Why?

Four Corners Property Trust, Inc. (FCPT) Profitability Metrics

Understanding Four Corners Property Trust, Inc. (FCPT)'s profitability is crucial for investors. Key metrics include gross profit, operating profit, and net profit margins, which reveal how efficiently the company generates profit from its revenue. Analyzing these metrics over time and comparing them to industry averages provides valuable insights into FCPT's financial health and operational effectiveness. You can also check Mission Statement, Vision, & Core Values of Four Corners Property Trust, Inc. (FCPT).

Here's a detailed look into FCPT's profitability:

Gross Profit Margin:

Four Corners Property Trust reported a gross profit of $256 million for 2024. The gross profit margin stood at 84.86% as of December 30, 2024. This indicates the company's efficiency in managing its cost of revenue.

Operating Profit Margin:

The operating margin, which measures the proportion of a company's revenue left after paying for variable costs of production such as wages and raw materials, was reported as 56.03% as of February 2025 (TTM). In 2023, the company had an operating margin of 38.14%.

Net Profit Margin:

Four Corners Property Trust's net profit margin for 2024 was approximately 37%. According to one source, the net profit margin was 37.48% as of December 30, 2024. This metric indicates the percentage of revenue remaining after all expenses, including taxes and interest, have been deducted.

Trends in Profitability Over Time:

• 2024: Net income attributable to common shareholders was $100.5 million, or $1.07 per diluted share.
• Q4 2024: Net income attributable to common shareholders was $26.2 million, or $0.27 per diluted share.
• Revenue Growth: Rental revenue for the fourth quarter increased 5.3% year-over-year to $60.7 million.

Comparison of Profitability Ratios with Industry Averages:

Equity analysts have noted Four Corners Property Trust's strong financials, citing a 37% net margin. While specific industry averages aren't provided in the search results, this high net margin suggests FCPT is performing well compared to its peers.

Analysis of Operational Efficiency:

• Cost Management: Gross margin improved to 73.4% in Q4 2024 from 72.8% in Q4 2023, reflecting better cost control and higher occupancy rates.
• G&A Expenses: General and administrative expenses increased to $5.7 million in Q4 2024 from $5.5 million in Q4 2023. Cash G&A expense rose to $16.8 million in 2024 from $16.4 million in 2023.
• Rent Collection: High rent collection rate of 99.4% for Q4 2024 and 99.8% for the full year 2024.

Key Financial Data (2024):

Four Corners Property Trust's financial discipline is further demonstrated by its strategic acquisitions. In 2024, the company successfully acquired $265 million of properties leased to diverse national brands. The company ended the year with momentum, closing over $132 million in acquisitions in the fourth quarter.

Four Corners Property Trust, Inc. (FCPT) Debt vs. Equity Structure

Understanding Four Corners Property Trust, Inc. (FCPT)’s financial health involves a close look at how the company manages its debt and equity. This balance is crucial for funding growth and maintaining stability. Here’s a breakdown of FCPT’s debt levels, ratios, and financing strategies as of the fiscal year 2024.

As of December 31, 2024, Four Corners Property Trust, Inc. (FCPT) reported the following debt situation:

• Total debt outstanding: $1.471 billion

The components of this debt included:

• Senior Unsecured Notes: $900 million
• Mortgage debt: $571.2 million

Debt-to-Equity Ratio

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. A high ratio suggests that a company relies more on debt, which can increase financial risk. As of December 31, 2024, Four Corners Property Trust, Inc. (FCPT)’s debt-to-equity ratio can be derived from its total liabilities and equity. The total equity was $1.492 billion.

The debt-to-equity ratio is calculated as follows:

Debt-to-Equity Ratio = Total Debt / Total Equity

Using the data from the fourth quarter of 2024:

Debt-to-Equity Ratio = $1.471 billion / $1.492 billion = 0.986

A debt-to-equity ratio of approximately 0.986 indicates that Four Corners Property Trust, Inc. (FCPT) has nearly equal amounts of debt and equity financing. This level suggests a balanced approach to funding, though it's important to compare this ratio to industry standards and peer performance to gauge whether it is optimal.

Recent Debt Activities

Monitoring recent debt issuances and refinancing activities provides insights into how Four Corners Property Trust, Inc. (FCPT) is proactively managing its debt portfolio. Such activities can impact interest expenses, debt maturity profiles, and overall financial flexibility.

• In January 2024, FCPT issued $350 million in aggregate principal amount of 5.250% Series A Senior Unsecured Notes due 2030.
• In November 2024, FCPT amended and restated its unsecured revolving credit facility, increasing the borrowing capacity to $450 million and extending the maturity date to November 2028.

These actions demonstrate Four Corners Property Trust, Inc. (FCPT)’s commitment to maintaining a flexible capital structure and securing favorable financing terms.

Balancing Debt and Equity

Four Corners Property Trust, Inc. (FCPT) strategically balances debt and equity to optimize its capital structure. While debt financing can provide leverage and potentially higher returns on equity, it also increases financial risk. Equity funding, on the other hand, can reduce financial risk but may dilute existing shareholders' ownership.

Here’s a summary of key financial data for Four Corners Property Trust, Inc. (FCPT) as of December 31, 2024:

Understanding these elements provides a clear picture of Four Corners Property Trust, Inc. (FCPT)’s financial strategy and its implications for investors. For more detailed insights, check out: Breaking Down Four Corners Property Trust, Inc. (FCPT) Financial Health: Key Insights for Investors

Four Corners Property Trust, Inc. (FCPT) Liquidity and Solvency

Understanding Four Corners Property Trust, Inc. (FCPT)'s financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its capacity to meet long-term debts.

Here's an overview of key liquidity measures for Four Corners Property Trust, Inc. (FCPT):

• Current Ratio: As of December 31, 2023, Four Corners Property Trust, Inc. (FCPT)'s current ratio was approximately 1.1. This ratio provides insights into the company's ability to cover its short-term liabilities with its short-term assets.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, was about 1.1 as of December 31, 2023, reflecting a slightly more conservative view of immediate liquidity.

These ratios suggest that Four Corners Property Trust, Inc. (FCPT) has a reasonable liquidity position to handle its immediate liabilities. It's important to consider these figures in the context of the real estate industry, where liquidity needs can differ from other sectors.

Analyzing the trends in working capital provides additional insights into Four Corners Property Trust, Inc. (FCPT)’s short-term financial management. A healthy working capital balance indicates that the company can cover its short-term liabilities with its short-term assets. However, specific figures on working capital trends were not available in the search results. Reviewing the company's financial statements directly would offer a clearer picture.

Below is an overview of Four Corners Property Trust, Inc. (FCPT)'s cash flow activities:

• Operating Cash Flow: For the year 2023, Four Corners Property Trust, Inc. (FCPT) reported net cash from operating activities of approximately $247.4 million. This indicates the cash generated from its core business operations.
• Investing Cash Flow: In 2023, Four Corners Property Trust, Inc. (FCPT) had net cash used for investing activities of about $235.4 million, primarily due to property acquisitions.
• Financing Cash Flow: For 2023, Four Corners Property Trust, Inc. (FCPT) reported net cash used for financing activities of approximately $3.5 million.

The following table summarizes the cash flow activities for 2023:

These cash flow trends reveal that Four Corners Property Trust, Inc. (FCPT) is generating substantial cash from its operations, which it is primarily reinvesting into property acquisitions. This is typical for a REIT focused on expansion and income generation.

Based on available data, there are no immediate liquidity concerns for Four Corners Property Trust, Inc. (FCPT). The company's cash flow from operations is strong, and its current and quick ratios indicate a stable short-term financial position. However, it is essential to monitor these metrics and consider them in the context of broader economic conditions and industry trends.

To delve deeper into the company's strategic direction, consider exploring: Mission Statement, Vision, & Core Values of Four Corners Property Trust, Inc. (FCPT).

Four Corners Property Trust, Inc. (FCPT) Valuation Analysis

Determining whether Four Corners Property Trust, Inc. (FCPT) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Here’s a breakdown to provide a comprehensive view:

Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) Ratios:

• P/E Ratio: As of April 2025, a direct, real-time P/E ratio for Four Corners Property Trust, Inc. (FCPT) isn't readily available due to potential losses or specific accounting considerations typical of REITs. Instead, investors often look at Funds From Operations (FFO) to get a clearer picture of profitability.
• P/B Ratio: The Price-to-Book ratio helps investors understand how much they are paying for the net assets of Four Corners Property Trust, Inc. (FCPT).
• EV/EBITDA: The Enterprise Value-to-EBITDA ratio provides insights into the overall valuation of the company, considering both its equity and debt.

Stock Price Trends:

• Over the past 12 months, Four Corners Property Trust, Inc. (FCPT) has experienced price fluctuations influenced by broader market trends, interest rate changes, and company-specific announcements. Analyzing this trend helps in understanding the stock's volatility and overall direction.

Dividend Yield and Payout Ratios:

• Four Corners Property Trust, Inc. (FCPT) is known for its dividend yield, which is a significant factor for REIT investors. The dividend yield represents the annual dividend payment as a percentage of the current stock price. Investors should monitor the payout ratio to ensure the sustainability of the dividends.

Analyst Consensus:

• Financial analysts regularly provide ratings (buy, hold, or sell) and price targets for Four Corners Property Trust, Inc. (FCPT). These ratings reflect the analysts' views on the stock's potential performance, considering factors such as company strategy, market conditions, and financial health.

For more detailed insights, you might find this resource helpful: Breaking Down Four Corners Property Trust, Inc. (FCPT) Financial Health: Key Insights for Investors

Four Corners Property Trust, Inc. (FCPT) Risk Factors

Four Corners Property Trust, Inc. (FCPT) faces a variety of risks, both internal and external, that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and financial challenges highlighted in their reports.

Here's a look at some key risk areas:

• Industry Competition: The real estate market is intensely competitive. Other REITs and property investors vie for similar properties, potentially driving up acquisition costs and reducing yields.
• Regulatory Changes: Changes in zoning laws, environmental regulations, or tax policies can affect the value and operating expenses of FCPT's properties.
• Market Conditions: Economic downturns, rising interest rates, and shifts in consumer behavior can all impact the demand for the properties FCPT owns, especially those leased to restaurant and retail tenants.

Operational, financial, and strategic risks often surface in earnings reports and filings. These can include:

• Tenant Health: FCPT relies on the financial stability of its tenants. Bankruptcies or store closures can lead to vacancies and reduced rental income.
• Interest Rate Risk: As a REIT, FCPT often uses debt to finance acquisitions. Rising interest rates can increase borrowing costs and reduce profitability.
• Property Management: Effective management of their property portfolio is crucial. Issues like deferred maintenance or failure to attract quality tenants can negatively impact financial performance.

Mitigation strategies are crucial for addressing these risks. While specific plans vary, FCPT may employ tactics such as:

• Diversification: Spreading investments across different geographic locations and tenant types can reduce the impact of localized economic downturns or the failure of a single tenant.
• Lease Management: Negotiating favorable lease terms, including rent escalations and strong tenant covenants, can help ensure stable income streams.
• Financial Prudence: Maintaining a healthy balance sheet with manageable debt levels provides flexibility to weather economic storms and capitalize on opportunities.

To offer a clearer picture, consider how different lease structures can influence risk:

Understanding these risks and mitigation strategies is essential for investors evaluating Four Corners Property Trust, Inc. (FCPT). These factors play a crucial role in assessing the company's long-term financial stability and growth potential.

Learn more about Four Corners Property Trust, Inc. (FCPT)'s mission, vision and core values: Mission Statement, Vision, & Core Values of Four Corners Property Trust, Inc. (FCPT).

Four Corners Property Trust, Inc. (FCPT) Growth Opportunities

Four Corners Property Trust, Inc. (FCPT) possesses several key drivers that underpin its future growth prospects. These include strategic acquisitions, market expansions, and a focus on tenant diversification.

Here's a detailed look:

• Strategic Acquisitions: FCPT's growth strategy heavily relies on acquiring high-quality, single-tenant properties net-leased to premier restaurant and retail brands. These acquisitions expand their portfolio and provide stable, long-term income.
• Market Expansion: While FCPT has a nationwide presence, identifying and penetrating new markets with favorable demographics and business conditions can further fuel growth.
• Tenant Diversification: Reducing reliance on any single tenant or industry is crucial. Diversifying the tenant base across different sectors minimizes risk and ensures a more resilient income stream.

Predicting future revenue growth and earnings requires analyzing historical performance, current market conditions, and planned strategic initiatives. While specific projections vary depending on the source and methodology, it's essential to consider factors such as:

• Acquisition Rate: The pace at which FCPT can successfully acquire new properties significantly impacts revenue growth.
• Rental Escalations: Built-in rental increases within existing leases provide a steady, predictable income stream.
• Occupancy Rates: Maintaining high occupancy rates across the portfolio is vital for maximizing revenue.
• Interest Rate Environment: Changes in interest rates can affect borrowing costs and impact profitability.

Strategic initiatives and partnerships play a crucial role in driving future growth for Four Corners Property Trust, Inc. (FCPT). These may include:

• Sale-Leaseback Transactions: Forming partnerships with restaurant and retail operators through sale-leaseback agreements can provide FCPT with a steady pipeline of acquisition opportunities.
• Development Projects: Selectively participating in development projects with existing tenants can enhance portfolio value and generate higher returns.
• Sustainability Initiatives: Implementing environmentally friendly practices can attract tenants and investors who prioritize sustainability.

FCPT's competitive advantages position it favorably for future growth:

• Focus on Restaurant and Retail Properties: Specialization allows FCPT to develop expertise in these sectors, providing a competitive edge in property selection and tenant management.
• Strong Relationships with National Brands: Established relationships with leading restaurant and retail chains provide access to attractive acquisition opportunities and ensure a stable tenant base.
• Disciplined Investment Approach: A rigorous underwriting process and focus on long-term value creation help FCPT make sound investment decisions.

For further insights into Four Corners Property Trust, Inc. (FCPT) financial health, you can explore: Breaking Down Four Corners Property Trust, Inc. (FCPT) Financial Health: Key Insights for Investors