Four Corners Property Trust, Inc.

Previous wording

In addition to managing our existing properties, our strategy includes investing in additional restaurant and retail properties to grow and diversify our existing portfolio. We expect this acquisition strategy will decrease our reliance on Darden and help us gain exposure to non-restaurant retail properties over time. We intend to purchase properties that are well located, occupied by durable concepts, with creditworthy tenants whose operating cash flows are expected to meaningfully exceed their lease payments to us. We seek to improve the probability of successful tenant renewal at the end of initial lease terms by acquiring properties that have high levels of operator profitability compared to rent payments and have absolute rent levels that generally reflect market rates.

Current wording

In addition to managing our existing properties, our strategy includes investing in additional restaurant and retail properties to grow and diversify our existing portfolio. We expect this acquisition strategy will decrease our reliance on higher tenant concentrations and help us gain exposure to non-restaurant retail properties over time. We intend to purchase properties that are well located, occupied by durable concepts, with creditworthy tenants whose operating cash flows are expected to meaningfully exceed their lease payments to us. We seek to improve the probability of successful tenant renewal at the end of initial lease terms by acquiring properties that have high levels of operator profitability compared to rent payments and have absolute rent levels that generally reflect market rates.

Previous wording

During the nine months ended September 30, 2025, FCPT acquired 75 properties for a total investment value of $228.2 million, including transaction costs. These properties are 100% occupied under net leases with a weighted average remaining lease term of 13.5 years.

Current wording

During the three months ended March 31, 2026, FCPT acquired 10 properties for a total investment value of $26.8 million, including transaction costs. These properties are 100% occupied under net leases with a weighted average remaining lease term of 10.0 years.

Previous wording

1,273 properties located in 48 states and representing an aggregate leasable area of 8.5 million square feet;

Current wording

1,313 properties located in 48 states and representing an aggregate leasable area of 8.8 million square feet;

Previous wording

99.5% occupancy (based on leasable square footage);

Current wording

99.6% occupancy (based on leasable square footage);

Previous wording

An average remaining lease term of 7.1 years (weighted by annualized base rent);

Current wording

An average remaining lease term of 6.7 years (weighted by annualized base rent);

Previous wording

An average annual rent escalation of 1.4% through December 31, 2029 (weighted by annualized base rent);

Current wording

An average annual rent escalation of 1.5% through December 31, 2030 (weighted by annualized base rent);

Previous wording

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

Current wording

99.7% of the contractual base rent collected for the three months ended March 31, 2026; and

Previous wording

53% investment-grade tenancy (weighted by annualized base rent).

Current wording

52% investment-grade tenancy (weighted by annualized base rent).

Previous wording

The following discussion includes the results of our operations for the three and nine months ended September 30, 2025 and 2024 as summarized in the table below:

Current wording

The following discussion includes the results of our operations for the three months ended March 31, 2026 and 2025 as summarized in the table below:

Previous wording

During the three months ended September 30, 2025 and 2024, we operated in two segments: real estate operations and restaurant operations. In our real estate operations, we lease properties to tenants through net lease arrangements under which the tenants are primarily responsible for ongoing costs relating to the properties, including utilities, property taxes, insurance, common area maintenance charges, and maintenance and repair costs. In our restaurant operations, we operate seven LongHorn Steakhouse restaurants located in the San Antonio, Texas area.

Current wording

During the three months ended March 31, 2026 and 2025, we operated in two segments: real estate operations and restaurant operations. Our real estate operations generate rental income from leases primarily with restaurant brands, which we recognize on a straight-line basis to include the effect of base rent escalators. Our restaurant operations generate restaurant revenue from operating seven LongHorn Steakhouse restaurants.

Previous wording

Rental revenue increased $7.2 million, or 12%, during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This change was due primarily to the acquisition of 120 leased properties during the year-over-year period from October 1, 2024 through September 30, 2025. During the three months ended September 30, 2025, we recognized variable lease revenue, including costs paid by the lessor and reimbursed by the lessees within rental revenue of $3.0 million as compared to $2.1 million during the three months ended September 30, 2024. These amounts are also recognized in property expenses.

Current wording

Rental revenue increased $6.3 million, or 10%, during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This change was due primarily to the acquisition of 92 leased properties during the year-over-year period from April 1, 2025 through March 31, 2026. During the three months ended March 31, 2026, we recognized variable lease revenue, including costs paid by the lessor and reimbursed by the lessees, within rental revenue of $2.8 million as compared to $2.7 million during the three months ended March 31, 2025. 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 $669 thousand, or 11%, in the three months ended September 30, 2025 compared to the three months ended September 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 September 30, 2025 was $4.3 million, compared to $4.0 million of general and administrative expense, after excluding stock-based compensation, for the three months ended September 30, 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 decreased $0.2 million, or 2%, in the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to a decrease in stock-based compensation expense. General and administrative expense, after excluding stock-based compensation, for the three months ended March 31, 2026 was $4.9 million, compared to $4.9 million of general and administrative expense, after excluding stock-based compensation, for the three months ended March 31, 2025.

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 $1.4 million, or 11%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, due to the acquisition of 120 properties, during the year-over-year period from October 1, 2024 through September 30, 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 $1.8 million, or 12%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, due to the acquisition of 92 properties, during the year-over-year period from April 1, 2025 through March 31, 2026.

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 nine months ended September 30, 2025, we recorded property expenses of $10.3 million, of which $8.4 million was reimbursed by tenants. During the nine months ended September 30, 2024, we recorded property expenses of $8.5 million, of which $7.1 million was reimbursed by tenants. The increase in property expenses is primarily due to vacancy-related expenses, franchise tax expense, and lease transaction costs.

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 March 31, 2026, we recorded property expenses of $3.4 million, of which $2.8 million was reimbursed by tenants. 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. The increase in property expenses is primarily due to an increase in franchise tax, property tax, and vacancy-related expenses.

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 $0.6 million, or 5%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to the $75 million net increase in term loans in January 2025, which was partially offset by a reduction of interest expense due to 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 $0.4 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to the net increase in term loans of $75 million in January 2025.

Previous wording

During the three months ended September 30, 2025 and 2024, our income tax expense was $80 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.

Current wording

During the three months ended March 31, 2026 and 2025, our income tax expense was $0.1 million, 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 modestly increase.

Previous wording

Total restaurant expenses increased by $201 thousand during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to improved staffing.

Current wording

Total restaurant expenses increased by $0.3 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily attributable to higher commodity costs.

Previous wording

The preparation of FCPT’s Consolidated Financial Statements in conformance with U.S. GAAP requires management to make estimates on assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as other disclosures in the financial statements. On an ongoing basis, management evaluates its estimates and assumptions; however, actual results may differ from these estimates and assumptions, which in turn could have a material impact on our financial statements. A summary of FCPT’s critical accounting policies is included in our Annual Report on Form 10-K for the year ended December 31, 2024 in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and

Current wording

The preparation of FCPT’s Consolidated Financial Statements in conformance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses as well as other disclosures in the financial statements. On an ongoing basis, management evaluates its estimates and assumptions; however, actual results may differ from these estimates and assumptions, which in turn could have a material impact on our financial statements. A summary of FCPT’s critical accounting policies is included in our Annual Report on Form 10-K for the year ended December 31, 2025 in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates.” Management believes those critical accounting policies, among others, affect our more significant estimates and assumptions used in the preparation of our Consolidated Financial Statements.

Previous wording

At September 30, 2025, we had $6.7 million of cash and cash equivalents and $339 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 September 30, 2025, we had $11 million in outstanding borrowings under the revolving credit facility. At September 30, 2025, the weighted average interest rate on the term loans, after consideration of the interest rate hedges, was 3.75%.

Current wording

At March 31, 2026, we had $29.6 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, 2026, we had no outstanding borrowings under the revolving credit facility. At March 31, 2026, the weighted average interest rate on the term loans, after consideration of the interest rate hedges, was 3.97%.

Previous wording

On January 31, 2025, the Company and its subsidiary, FCPT OP, entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement with a group of existing lenders (the “Credit Agreement”), which amended and restated in its entirety an existing Third Amended and Restated Revolving Credit and Term Loan Agreement dated as of October 25, 2022 (the "Prior Credit Agreement"). Prior to entering into the Credit Agreement, certain amounts outstanding under the term loan facility pursuant to the Prior Credit Agreement were scheduled to mature as follows: $150 million principal amount outstanding was scheduled to mature on November 9, 2025, $100 million principal amount outstanding was scheduled to mature on November 9, 2026, $90 million principal amount outstanding was scheduled to mature on January 9, 2027, $85 million principal amount outstanding was scheduled to mature on March 14, 2027, and $90 million principal amount outstanding was scheduled to mature on January 9, 2028.

Current wording

On January 31, 2025, the Company and its subsidiary, FCPT OP, entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement with a group of existing lenders (the “Credit Agreement”).

Previous wording

On August 19, 2025, the Company entered into Amendment No. 1 to the Credit Agreement which reduced the credit spread adjustment applicable to the revolving credit and term loan agreement from 0.10% to 0.00%. Term loans under the Credit Agreement now accrue interest at a per annum rate equal to a SOFR rate plus a margin of 0.95% to 1.00%, and the revolver accrues interest at a per annum rate equal to a margin of 0.85%. The margin is based on the highest applicable credit rating on its senior, unsecured, long-term indebtedness per the credit agreement. In the event that all or a portion of the principal amount of any loan borrowed pursuant to the Credit Agreement is not paid when due, interest will accrue at the rate that would otherwise be applicable thereto plus 2.00%. A facility fee at a rate of 0.20% per annum applies to the total revolving commitments available under the Credit Agreement.

Current wording

On August 19, 2025, the Company entered into Amendment No. 1 to the Credit Agreement which removed the credit spread adjustment applicable to the revolving credit and term loan agreement. Term loans under the Credit Agreement now accrue interest at a per annum rate equal to a SOFR rate plus a margin of 0.95% to 1.00%, and the revolver accrues interest at a per annum rate equal to a margin of 0.85%. A facility fee at a rate of 0.20% per annum applies to the total revolving commitments available under the Credit Agreement.

Previous wording

During the first nine 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 three months of 2026, 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

We have an effective shelf registration statement on file with the SEC under which we may issue equity financing through the instruments and on the terms most attractive to us at such time. On September 17, 2024, the Company terminated the prior ATM program (as defined below) and entered into a new ATM program (the "ATM program"), pursuant to which shares of the Company’s common stock having an aggregate gross sales price of up to $500.0 million may be offered and sold (1) by the Company to, or through, a consortium of banks acting as its sales agents or (2) by a consortium of banks acting as forward sellers on behalf of any forward purchasers contemplated thereunder, in each case by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices, by privately negotiated transactions (including block sales) or by any other methods permitted by applicable law. The ATM program replaces the Company's previous $450.0 million ATM program (the "prior ATM program" and, together with the ATM program, the "ATM programs"), which was established in November 2022, under which the Company had sold shares of its common stock having an aggregate gross sales price of $404.8 million through September 17, 2024. In connection with the Company’s ATM programs, the Company may enter into forward sale agreements with certain financial institutions acting as forward purchasers whereby, at the Company's discretion, the forward purchasers may borrow and sell shares of common stock. The use of forward sale agreements allows the Company to lock in a share price on the sale of shares of common stock at the time the respective forward sale agreements are executed but defer settling the forward sale agreements and receiving the proceeds from the sale of shares until a later date.

Current wording

We have an effective shelf registration statement on file with the SEC under which we may issue equity financing through the instruments and on the terms most attractive to us at such time. On October 30, 2025, the Company entered into a new ATM program (the "ATM program"), pursuant to which shares of the Company’s common stock having an aggregate gross sales price of up to $500.0 million may be offered and sold (1) by the Company to, or through, a consortium of banks acting as its sales agents or (2) by a consortium of banks acting as forward sellers on behalf of any forward purchasers contemplated thereunder, in each case by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices, by privately negotiated transactions (including block sales) or by any other methods permitted by applicable law. The ATM program replaces the Company's previous $500.0 million ATM program (the "prior ATM program" and, together with the ATM program, the "ATM programs"), which was established in September 2024, under which the Company had sold shares of its common stock having an aggregate gross sales price of $291.8 million through October 30, 2025. In connection with the Company’s ATM programs, the Company may enter into forward sale agreements with certain financial institutions acting as forward purchasers whereby, at the Company's discretion, the forward purchasers may borrow and sell shares of common stock. The use of forward sale agreements allows the Company to lock in a share price on the sale of shares of common stock at the time the respective forward sale agreements are executed but defer settling the forward sale agreements and receiving the proceeds from the sale of shares until a later date.

Previous wording

During the three and nine months ended September 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.

Current wording

During the three months ended March 31, 2026, 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 September 30, 2025, the Company had outstanding forward sale agreements to sell 5,163,790 shares of common stock at a weighted average sales price of $28.30 before sales commission and offering expenses.

Current wording

At March 31, 2026, the Company had no outstanding forward sale agreements.

Previous wording

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

Current wording

At March 31, 2026, there was $500.0 million available for issuance under the ATM programs.

Previous wording

Amount represents non-cash deferred income tax benefit recognized in the three and nine months ended September 30, 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 months ended March 31, 2026 and 2025 for income tax benefit at the Kerrow Restaurant Business.