Q2 2024 Four Corners Property Trust Inc Earnings Call Transcript
Key Points
- Four Corners Property Trust Inc (FCPT) reported an increase in AFFO to $0.43 per share, up 2.4% from the previous year.
- The company's portfolio continues to perform well with high rent collections and occupancy rates.
- FCPT acquired 17 properties at a 7.2% cap rate, showing a 30-basis-point improvement from the previous quarter.
- The company maintains a strong balance sheet with a net debt to adjusted EBITDAre ratio of 5.7 times and a fixed charge coverage ratio of 4.3 times.
- FCPT's disciplined capital allocation strategy allows for accretive acquisitions while maintaining quality standards.
- The ongoing bankruptcy proceedings of Red Lobster pose a potential risk, although FCPT expects minimal disruption.
- There is exposure to potential credit issues with some tenants, such as a large Pizza Hut franchisee going bankrupt.
- The company faces a challenging investment environment with a high bid-ask spread between buyers and sellers.
- Interest rate fluctuations continue to impact cap rates and acquisition strategies.
- Despite strong performance, the company did not sell any properties in Q2, which could limit capital recycling opportunities.
Good morning, all and thank you for joining us for the FCPT second quarter 2024 financial results conference call. My name is Carly, and I'll be the call coordinator for today.
(Operator Instructions)
I'll now hand over to Patrick Wernig to begin. Please go ahead.
Thank you, Carly.
During the course of this call, we will make forward-looking statements, which are based on our beliefs and assumptions. Actual results will be affected by known and unknown factors that are beyond our control or ability to predict. Our assumptions are not a guarantee of future performance and some will prove to be incorrect. For a more detailed description of some potential risks, please refer to our SEC filings, which can be found at fcpt.com. All the information presented on this call is current as of today, August 1, 2024. In addition, reconciliation to non-GAAP financial measures presented on this call such as FFO and AFFO can be found in the company's supplemental report.
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