Four Corners Property Trust, Inc.

Previous wording

During the three months ended March 31, 2025, FCPT acquired 23 properties for a total investment value of $57.8 million, including transaction costs. These properties are 100% occupied under net leases with a weighted average remaining lease term of 7.3 years.

Current wording

During the six months ended June 30, 2025, FCPT acquired 47 properties for a total investment value of $144.3 million, including transaction costs. These properties are 100% occupied under net leases with a weighted average remaining lease term of 14.9 years.

Previous wording

1,221 properties located in 47 states and representing an aggregate leasable area of 8.2 million square feet;

Current wording

1,245 properties located in 48 states and representing an aggregate leasable area of 8.4 million square feet;

Previous wording

An average remaining lease term of 7.3 years (weighted by annualized base rent);

Current wording

An average remaining lease term of 7.2 years (weighted by annualized base rent);

Previous wording

99.5% of the contractual base rent collected for the three months ended March 31, 2025; and

Current wording

99.8% of the contractual base rent collected for the three months ended June 30, 2025; and

Previous wording

54.7% investment-grade tenancy (weighted by annualized base rent).

Current wording

54% investment-grade tenancy (weighted by annualized base rent).

Previous wording

We operate in two segments: real estate operations and restaurant operations. The following discussion includes the results of our operations for the three months ended March 31, 2025 and 2024 as summarized in the table below:

Current wording

We operate in two segments: real estate operations and restaurant operations. The following discussion includes the results of our operations for the three and six months ended June 30, 2025 and 2024 as summarized in the table below:

Previous wording

Rental revenue increased $4.9 million, or 8.4%, during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This change was due primarily to the acquisition of 106 leased properties during the year-over-year period from April 1, 2024 through March 31, 2025. During the three months ended March 31, 2025, we recognized variable lease revenue, including costs paid by the lessor and reimbursed by the lessees within rental revenue of $2.7 million as compared to $2.7 million during the three months ended March 31, 2024. These amounts are also recognized in property expenses.

Current wording

Rental revenue increased $6.3 million, or 11%, during the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This change was due primarily to the acquisition of 113 leased properties during the year-over-year period from July 1, 2024 through June 30, 2025. During the three months ended June 30, 2025, we recognized variable lease revenue, including costs paid by the lessor and reimbursed by the lessees within rental revenue of $2.7 million as compared to $2.3 million during the three months ended June 30, 2024. These amounts are also recognized in property expenses.

Previous wording

General and administrative expense is comprised of costs associated with personnel, office rent, legal, accounting, information technology, and other professional and administrative services in association with our real estate operations, our REIT structure and public company reporting requirements. General and administrative expenses increased $1.4 million, or 23.0%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in stock-based compensation expense. General and administrative expense, after excluding stock-based compensation, for the three months ended March 31, 2025 was $4.9 million, compared to $4.6 million of general and administrative expense, after excluding stock-based compensation, for the three months ended March 31, 2024.

Current wording

General and administrative expense is comprised of costs associated with personnel, office rent, legal, accounting, information technology, and other professional and administrative services in association with our real estate operations, our REIT structure and public company reporting requirements. General and administrative expenses increased $0.4 million, or 7%, in the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to an increase in stock-based compensation expense. General and administrative expense, after excluding stock-based compensation, for the three months ended June 30, 2025 was $4.4 million, compared to $4.3 million of general and administrative expense, after excluding stock-based compensation, for the three months ended June 30, 2024.

Previous wording

Depreciation and amortization expense represents the depreciation on real estate investments and equipment that have estimated lives ranging from 2 to 55 years. Depreciation and amortization increased by approximately $1.0 million, or 7.1%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, due to the acquisition of 106 properties, during the year-over-year period from April 1, 2024 through March 31, 2025.

Current wording

Depreciation and amortization expense represents the depreciation on real estate investments and equipment that have estimated lives ranging from 2 to 55 years. Depreciation and amortization increased by approximately $1.3 million, or 10%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, due to the acquisition of 113 properties, during the year-over-year period from July 1, 2024 through June 30, 2025.

Previous wording

We record all tenant expenses, both reimbursed and non-reimbursed, to property expense. We also record initial direct costs (lease negotiation and other previously capitalizable transaction expenses) as property expenses. Other property expenses consist of expenses incurred on vacant properties, abandoned deal costs, lease transaction costs, property-level expenses and franchise taxes. During the three months ended March 31, 2025, we recorded property expenses of $3.3 million, of which $2.7 million was reimbursed by tenants. During the three months ended March 31, 2024, we recorded property expenses of $3.1 million, of which $2.7 million was reimbursed by tenants.

Current wording

We record all tenant expenses, both reimbursed and non-reimbursed, to property expense. We also record initial direct costs (lease negotiation and other previously capitalizable transaction expenses) as property expenses. Other property expenses consist of expenses incurred on vacant properties, abandoned deal costs, lease transaction costs, property-level expenses and franchise taxes. During the three months ended June 30, 2025, we recorded property expenses of $3.4 million, of which $2.7 million was reimbursed by tenants. During the three months ended June 30, 2024, we recorded property expenses of $2.8 million, of which $2.3 million was reimbursed by tenants. The increase in non-reimbursed property expenses is primarily due to abandoned deal costs and vacancy-related expenses.

Previous wording

During the three months ended March 31, 2025 and 2024, our income tax expense was $77 thousand and $59 thousand, respectively. The income tax expense on real estate operations consists of state, and local income taxes incurred by FCPT on its lease portfolio. As FCPT acquires additional properties in states subject to state income taxes, income tax expense will continue to increase.

Current wording

During the three months ended June 30, 2025 and 2024, our income tax expense was $112 thousand and $86 thousand, respectively. The income tax expense on real estate operations consists of state, and local income taxes incurred by FCPT on its lease portfolio. As FCPT acquires additional properties in states subject to state income taxes, income tax expense will continue to increase.

Previous wording

Restaurant revenues increased by $0.1 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to higher net pricing, partially offset by less foot traffic as a result of city construction projects outside two locations and temporary closure for roof repairs at one location.

Current wording

Restaurant revenues increased by $88 thousand during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to higher net pricing, partially offset by less foot traffic as a result of city construction projects outside one location.

Previous wording

During the three months ended March 31, 2025, the Company recorded an income tax benefit of $14 thousand at the Kerrow Restaurant Operating Business, compared to an income tax benefit of $32 thousand for the three months ended March 31, 2024, primarily due to routine book to tax differences.

Current wording

During the three months ended June 30, 2025, the Company recorded an income tax expense of $34 thousand at the Kerrow Restaurant Operating Business, compared to an income tax expense of $24 thousand for the three months ended June 30, 2024, primarily due to routine book to tax differences.

Previous wording

We incur interest expense on our $590 million of term loans, any outstanding borrowings on our revolving credit facility, interest rate swaps, and our $625 million of senior fixed rate notes. Interest expense increased by $0.5 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to the issuance of the additional $85 million in March 2024 and $75 million net increase in term loans in January 2025, which was partially offset by a reduction of interest expense due to the repayment of the $50 million senior unsecured fixed rate note and lower utilization of the revolving credit facility.

Current wording

We incur interest expense on our $590 million of term loans, any outstanding borrowings on our revolving credit facility, interest rate swaps, and our $625 million of senior fixed rate notes. Interest expense increased by $1.2 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to the issuance of the additional $85 million in term loans in March 2024 and the net increase in term loans in January 2025, which was partially offset by a reduction of interest expense due to the repayment of the $50 million senior unsecured fixed rate note in March 2024 and lower utilization of the revolving credit facility.

Previous wording

At March 31, 2025, we had $22.3 million of cash and cash equivalents and $350 million of borrowing capacity under our revolving credit facility, which expires on February 1, 2029, subject to our ability to extend the term for two additional six-month periods to February 1, 2030. The revolving credit facility provides for a letter of credit sub-limit of $25 million. See Note 6 - Debt, Net of Deferred Financing Costs included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. As of March 31, 2025, we had no outstanding borrowings under the revolving credit facility. At March 31, 2025, the weighted average interest rate on the term loans, after consideration of the interest rate hedges, was 3.87%.

Current wording

At June 30, 2025, we had $6.0 million of cash and cash equivalents and $350 million of borrowing capacity under our revolving credit facility, which expires on February 1, 2029, subject to our ability to extend the term for two additional six-month periods to February 1, 2030. The revolving credit facility provides for a letter of credit sub-limit of $25 million. See Note 6 - Debt, Net of Deferred Financing Costs included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. As of June 30, 2025, we had no outstanding borrowings under the revolving credit facility. At June 30, 2025, the weighted average interest rate on the term loans, after consideration of the interest rate hedges, was 3.88%.

Previous wording

The Credit Agreement provides for borrowings up to $940 million, consisting of (1) a revolving credit facility in an aggregate principal amount of $350 million and term loans in an aggregate principal amount of $590 million comprised of (i) a $100 million term loan with a maturity date of November 9, 2026 (the "Term Loan A-2 Facility"), (ii) a $90 million term loan with a maturity date of February 1, 2027, (iii) a $85 million term loan with a maturity date of March 14, 2027 (the "Term Loan A-5 Facility"), (iv) a $90 million term loan with a maturity date of February 1, 2028, and (v) a $225 million term loan with a maturity date of February 1, 2029 (the "Term Loan A-1 Facility"). No amortization payments are required on the term loan prior to the maturity date. FCPT OP has the option to extend the maturity date of the revolving credit facility for up to two six month periods, subject to the payment of an extension fee of 0.0625% on the aggregate amount of the then-outstanding revolving commitment. FCPT OP has the option to extend the maturity date of each of the Term Loan A-1 Facility and the Term Loan A-2 Facility by one year, subject to the payment of an extension fee of 0.125% on the then-outstanding principal amount of term loans under the Term Loan A-1 Facility and the Term Loan A-2 Facility, as applicable. FCPT OP has the option to extend the maturity date of the Term Loan A-5 Facility by one year, subject to the payment of an extension fee of 0.15% on the then-outstanding principal amount of term loans under the Term Loan A-5 Facility. The Credit Agreement is a syndicated credit facility that contains an accordion feature allowing the facility to be increased by an additional aggregate amount not to exceed $450 million, subject to certain conditions. Amounts owed under the Credit Agreement may be prepaid at any time without premium or penalty, subject to customary breakage costs in the case of borrowings with respect to which SOFR rate election is in effect.

Current wording

The Credit Agreement provides for borrowings up to $940 million, consisting of (1) a revolving credit facility in an aggregate principal amount of $350 million and term loans in an aggregate principal amount of $590 million comprised of (i) a $100 million term loan with a maturity date of November 9, 2026 (the "Term Loan A-2 Facility"), (ii) a $90 million term loan with a maturity date of February 1, 2027, (iii) an $85 million term loan with a maturity date of March 14, 2027 (the "Term Loan A-5 Facility"), (iv) a $90 million term loan with a maturity date of February 1, 2028, and (v) a $225 million term loan with a maturity date of February 1, 2029 (the "Term Loan A-1 Facility"). No amortization payments are required on the term loan prior to the maturity date. FCPT OP has the option to extend the maturity date of the revolving credit facility for up to two six month periods, subject to the payment of an extension fee of 0.0625% on the aggregate amount of the then-outstanding revolving commitment. FCPT OP has the option to extend the maturity date of each of the Term Loan A-1 Facility and the Term Loan A-2 Facility by one year, subject to the payment of an extension fee of 0.125% on the then-outstanding principal amount of term loans under the Term Loan A-1 Facility and the Term Loan A-2 Facility, as applicable. FCPT OP has the option to extend the maturity date of the Term Loan A-5 Facility by one year, subject to the payment of an extension fee of 0.15% on the then-outstanding principal amount of term loans under the Term Loan A-5 Facility. The Credit Agreement is a syndicated credit facility that contains an accordion feature allowing the facility to be increased by an additional aggregate amount not to exceed $450 million, subject to certain conditions. Amounts owed under the Credit Agreement may be prepaid at any time without premium or penalty, subject to customary breakage costs in the case of borrowings with respect to which SOFR rate election is in effect.

Previous wording

During the first three months of 2025, we entered into these interest rate swaps to hedge the interest rate variability associated with the term loan portion of our credit facility

Current wording

During the first six months of 2025, we entered into these interest rate swaps to hedge the interest rate variability associated with the term loan portion of our credit facility

Previous wording

During the three months ended March 31, 2025, the Company had the following activity under its ATM program, the net proceeds of which were employed to fund acquisitions and for general corporate purposes.

Current wording

During the three and six months ended June 30, 2025, the Company had the following activity under its ATM program, the net proceeds of which were employed to fund acquisitions and for general corporate purposes.

Previous wording

At March 31, 2025, the Company had outstanding forward sale agreements to sell 8,797,027 shares of common stock at a weighted average sales price of $28.29 before sales commission and offering expenses.

Current wording

At June 30, 2025, the Company had outstanding forward sale agreements to sell 7,397,351 shares of common stock at a weighted average sales price of $28.24 before sales commission and offering expenses.

Previous wording

At March 31, 2025, there was $231.9 million available for issuance under the ATM programs.

Current wording

At June 30, 2025, there was $194.4 million available for issuance under the ATM programs.

Previous wording

We continually evaluate alternative financing and believe that we can obtain financing on reasonable terms. However, we cannot be assured that we will have access to the capital markets at times and at terms that are acceptable to us. We expect that our primary uses of capital will be for property and other asset acquisitions and the funding of tenant improvements and other capital expenditures, and debt refinancing.

Current wording

We continually evaluate alternative financing and believe that we can obtain financing on reasonable terms. However, we cannot be assured that we will have access to the capital markets at times and at terms that are acceptable to us. We expect that our primary uses of capital will be for property and other asset acquisitions, the funding of tenant improvements, other capital expenditures, and debt refinancing.

Previous wording

Amount represents non-cash deferred income tax benefit recognized in the three months ended March 31, 2025 and 2024 for income tax benefit at the Kerrow Restaurant Business.

Current wording

Amount represents non-cash deferred income tax benefit recognized in the three and six months ended June 30, 2025 and 2024 for income tax benefit at the Kerrow Restaurant Business.

Previous wording

Adjusted Funds from Operations is a non-U.S. GAAP measure that is used as a supplemental operating measure specifically for comparing year-over-year ability to fund dividend distribution from operating activities. AFFO is used by us as a basis to address our ability to fund our dividend payments. We calculate AFFO by adding to or subtracting from FFO:

Current wording

Adjusted Funds from Operations is a non-U.S. GAAP measure that is used as a supplemental operating measure specifically for comparing year-over-year ability to fund dividend distribution from operating activities. AFFO is used by us as a basis to address our ability to fund our dividend payments. We calculate AFFO by adding to or subtracting from FFO the following items to the extent present in the applicable period: