NYSE$FCPT

Four Corners Property Trust · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

FCPT reported strong first quarter operating results amidst the coronavirus pandemic, with solid rent collectability and a healthy balance sheet.

Four Corners Property Trust (FCPT) announced its financial results for the first quarter of 2020, showing a 10.3% increase in rental revenue to $37.7 million and net income attributable to common shareholders of $19.3 million, or $0.27 per diluted share. The company acquired 23 properties for $36.2 million. They had $162.5 million in available liquidity, and declared a dividend of $0.305 per common share. However, the COVID-19 pandemic's impact on tenants is uncertain, with rent relief requests received from substantially all of the portfolio.

  • Rental revenue increased by 10.3% year-over-year to $37.7 million.
  • Net income attributable to common shareholders was $19.3 million, or $0.27 per diluted share.
  • Acquired 23 properties for a combined purchase price of $36.2 million.
  • Declared a dividend of $0.305 per common share for the first quarter of 2020.

Headline financials

Total Revenue

$42.4M

Previous: $39.6M+7.1%
EPS (adj)

$0.37

Previous: $0.34+8.8%
Regular dividends declared per share

$0.30

No prior period
Occupancy rate

99.6%

No prior period
Weighted average remaining lease term

5.9

No prior period
Available liquidity

$163M

No prior period
Capital Expenditures

-$37.6M

Previous: -$20.3M-84.7%
Free Cash Flow

-$18.3M

Previous: -$2.84M-544.5%
Net Income

$19.3M

Previous: $17.5M+10.1%
Operating Income

$14.6M

Previous: $24M-39.0%
Gross Profit

$30.7M

Previous: $28.3M+8.5%
Cash & Equivalents

$90.5M

Previous: $81M+11.7%
Total Assets

$1.56B

Previous: $1.35B+15.8%
Stock-Based Comp

$831K

Previous: $1.21M-31.5%

Revenue & EPS history

FCPT · Revenue · Quarterly

$42.4M

Q1 2020+7.1%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

FCPT · $42.4M total across 2 segments · Q1 2020

  • Rental revenue
    $37.7M+10.3%
  • Restaurant revenue
    $4.7M-12.8%

Forward guidance

Due to the uncertainty surrounding the COVID-19 pandemic, the impact on rental revenue for the second quarter of 2020 and thereafter cannot be determined at this time, and the comparability of the Company’s results of operations for the three months ended March 31, 2020, to future periods may be significantly impacted.

Tailwinds

  • Adapted operations to protect employees with a work from home policy.
  • IT systems enabled the team to work successfully despite restrictions.
  • Approximately $150 million in cash and cash equivalents as of May 5, 2020, excluding additional Notes.
  • Additional $72 million available under the unsecured revolving credit facility.
  • No unsecured debt maturing until the revolving credit facility expires in November 2021.

Headwinds

  • The impact of the COVID-19 pandemic on rental revenue for the second quarter of 2020 and thereafter cannot be determined.
  • Comparability of the Company’s results of operations for the three months ended March 31, 2020 to future periods may be significantly impacted by the effects of the outbreak of the COVID-19 pandemic.
  • Received short-term rent relief requests from substantially all of the portfolio.
  • Paused on making additional property acquisitions.
  • Worked with counterparties to postpone closings until additional clarity on overall business conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

+0.0%

Avg return

5 days after

+1.6%

Avg return

30 days after

50%

21 / 42 earnings

Positive

+5.8%

Q3 2015

Best reaction

-5.6%

Q1 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-0.7%-1.6%
Q4 2025-3.3%-0.8%+1.5%
Q3 2025-1.5%+1.0%+0.8%
Q1 2025-0.2%-0.2%-1.2%
Q4 2024+2.4%+0.2%+0.9%
Q3 2024-1.9%-1.3%+5.8%
Q2 2024-1.2%-2.0%+2.8%
Q1 2024+2.7%+2.2%+4.1%
Q4 2023+2.6%+2.7%+7.1%
Q3 2023+4.8%+3.6%+11.6%
Q2 2023-3.3%-2.7%-4.3%
Q1 2023-2.0%+2.5%+0.7%
Q4 2022+2.3%+0.8%-5.7%
Q3 2022-0.2%+3.5%+5.1%
Q2 2022+1.1%+3.0%-0.5%
Q1 2022-4.7%-6.8%-8.1%
Q4 2021+1.1%+0.5%+1.8%
Q3 2021+0.5%-1.0%-3.2%
Q2 2021+1.9%-0.9%+1.5%
Q1 2021-3.9%-2.3%-6.0%
Q4 2020-2.8%+1.2%-0.1%
Q3 2020-4.5%-5.0%+7.6%
Q2 2020+2.3%+3.2%+6.7%
Q1 2020+0.9%-1.0%+21.9%
Q4 2019+2.4%+2.8%-22.8%
Q3 2019+1.4%+0.8%-0.3%
Q2 2019-0.6%+0.0%+5.4%
Q1 2019+1.3%+1.9%+5.1%
Q4 2018-0.4%-1.1%+1.0%
Q3 2018+3.1%-0.6%+4.6%
Q2 2018+1.0%+1.3%+9.2%
Q1 2018+1.8%+1.6%+0.8%
Q4 2017-4.5%-2.8%+0.3%
Q3 2017+2.8%+4.9%+5.4%
Q2 2017-4.1%-3.8%+0.4%
Q1 2017-5.6%-4.7%+8.8%
Q4 2016+0.5%+1.9%+2.0%
Q3 2016-2.1%-2.4%-3.6%
Q2 2016-0.1%+0.6%-2.7%
Q1 2016-2.8%
Q4 2015-1.8%
Q3 2015+5.8%
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014

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