Four Corners Property Trust, Inc.

Q2 AFFO per share was $0.45, up 1.4% year over year. Q2 cash rental income was $70 million, up 8.7% year over year. Annualized cash base rent at quarter end was $270.5 million, and the weighted average 5-year annual cash rent escalator was 1.5%. Cash G&A was $4.8 million, or 6.8% of cash rental income versus 6.9% a year ago. Occupancy remained 99.5% and base rent collected was 99.7% for Q2. Since April, FCPT completed $600 million of new debt capital, including a $200 million 7-year term loan at SOFR plus 125 basis points and a $400 million 5-year term loan at SOFR plus 90 basis points; at current SOFR levels, management said all-in rates are about 4.5% to 4.9%. Pro forma leverage remained below the 6x upper bound of the 5x to 6x target range, and weighted average debt tenor is 4.3 years. Management reaffirmed 2026 cash G&A guidance of $19.2 million to $19.7 million. For forward activity, FCPT said the Mission Pet Health portfolio closed early in Q3, bringing nearly all of the annualized cash rent of $17.4 million into Q3 results, with about 2% annual rent growth going forward.

Bill Lenehan framed the quarter as a milestone period, saying FCPT has already exceeded its prior record annual investment volume and has become much more diversified and seasoned. He highlighted a portfolio built around low-basis, fungible, mission-critical assets, with occupancy above 99% and strong tenant coverage, and said the company is uniquely positioned in net lease. His tone was constructive and confident, but he repeatedly tied future growth to disciplined underwriting and the equity cost of capital rather than pushing for growth at any price.

Patrick Wernig focused on balance sheet improvement and Q2 financial results. He said FCPT closed $600 million of new debt since April, added Citi and RBC to the lending group, saved roughly $450,000 in annual interest expense across the total $800 million facility, and now has pro forma liquidity with a fully undrawn $350 million revolver and leverage below 6x. On the operating side, he cited Q2 AFFO per share of $0.45, cash rental income of $70 million, cash G&A of $4.8 million, a 4.6x fixed charge coverage ratio, and 99.5% occupancy, while reaffirming 2026 cash G&A guidance of $19.2 million to $19.7 million.

Analysts focused on leverage, renewal economics, the monthly dividend, and whether acquisition pace would slow. Management said Darden renewal extensions are governed by 5-year options with 1.5% annual growth, and it expects a very high renewal rate given 6x coverage and the 12-month notice period. On the dividend, management said monthly payouts were about returning shareholder cash sooner rather than a corporate finance tradeoff. On acquisitions and capital capacity, management declined to give acquisition guidance but said it still has leverage room and that the equity cost of capital remains the key constraint.