On July 31, 2024, Four Corners Property Trust Inc (FCPT, Financial) released its 8-K filing announcing financial results for the second quarter ended June 30, 2024. Four Corners Property Trust Inc is a real estate investment trust predominantly engaged in the ownership, acquisition, and leasing of restaurant and retail properties. The company operates through two segments: real estate operations and restaurant operations, with the majority of revenue generated from the real estate operations segment.
Performance Overview
Four Corners Property Trust Inc (FCPT, Financial) reported a rental revenue increase of 10.8% year-over-year to $58.5 million for the second quarter of 2024. Net income attributable to common shareholders was $24.7 million, or $0.27 per diluted share, matching analyst estimates. For the six months ended June 30, 2024, net income was $48.7 million, or $0.53 per diluted share.
Key Financial Achievements
FCPT's financial achievements for the quarter include:
- Rental revenue of $58.5 million, up from $52.8 million in Q2 2023.
- Net income of $24.7 million, up from the prior year's $23.6 million.
- Funds from Operations (FFO) per diluted share of $0.41, a $0.01 increase from Q2 2023.
- Adjusted Funds from Operations (AFFO) per diluted share of $0.43, up $0.01 from Q2 2023.
Operational Highlights
FCPT's operational highlights for the quarter include:
- Acquisition of 17 properties for $45.5 million with an initial weighted average cash yield of 7.2%.
- Rent collection rate of 99.8% for the quarter.
- Portfolio occupancy rate of 99.6% with a weighted average remaining lease term of approximately 7.4 years.
Income Statement and Balance Sheet Insights
Key details from the income statement and balance sheet include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Rental Revenue | $58.5 million | $52.8 million |
| Net Income | $24.7 million | $23.6 million |
| FFO per Diluted Share | $0.41 | $0.40 |
| AFFO per Diluted Share | $0.43 | $0.42 |
Liquidity and Capital Markets
As of June 30, 2024, FCPT had approximately $240 million of available liquidity, including $17 million in cash and cash equivalents and $223 million in undrawn revolving credit facility capacity. The company's leverage ratio, measured by net debt to adjusted EBITDAre, stood at 5.7x.
Management Commentary
“FCPT continued its strong performance in the second quarter. We acquired $45 million of high-quality assets while maintaining pricing discipline with an initial weighted average cash yield of 7.2%,” said CEO Bill Lenehan. “With our strong existing portfolio performance and rent collections, we continue to be in a position to take advantage of opportunities that may arise.”
Conclusion
Four Corners Property Trust Inc (FCPT, Financial) demonstrated robust performance in Q2 2024, meeting analyst estimates and showcasing strong rental revenue growth and strategic acquisitions. The company's high rent collection rate and solid liquidity position it well for future opportunities in the real estate market.
Explore the complete 8-K earnings release (here) from Four Corners Property Trust Inc for further details.
