Four Corners Property Trust Q4 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy FCPT?
Source: seekingalpha
- Financial Performance: Four Corners Property Trust (FCPT) reported a Q4 FFO of $0.43, aligning with market expectations, indicating the company's ability to maintain stable earnings.
- Revenue Growth: The company achieved Q4 revenue of $75.67 million, reflecting a 10.7% year-over-year increase, although it fell short of analyst expectations, demonstrating sustained market demand.
- Acquisition Milestone: FCPT reached a $318 million acquisition milestone for 2025, including an $8.6 million purchase of Sprouts Farmers Market, highlighting the company's proactive strategy in expanding its investment portfolio.
- Market Evaluation: While Four Corners Property Trust is viewed as an undervalued REIT, analysts note limited near-term upside potential, reflecting market caution regarding its future growth prospects.
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Analyst Views on FCPT
Wall Street analysts forecast FCPT stock price to rise
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 24.420
Low
29.00
Averages
29.75
High
30.00
Current: 24.420
Low
29.00
Averages
29.75
High
30.00
About FCPT
Four Corners Property Trust, Inc. is a real estate investment trust (REIT), which owns, acquires and leases properties for use in the restaurant and retail industries. The Company's segments are real estate operations and restaurant operations. Its real estate operations segment consists of rental revenues primarily generated by leasing restaurant properties to tenants through net lease arrangements under which the tenant is primarily responsible for ongoing costs relating to the properties. Its restaurant operations segment is conducted through a taxable REIT subsidiary and consists of its Kerrow Restaurant Operating Business. The Kerrow Restaurant Operating Business consists of seven LongHorn Steakhouse restaurants located in the San Antonio, Texas area. Its properties are located in Florida, Texas, Georgia, Ohio, Illinois, Indiana, Michigan, Pennsylvania, Wisconsin, Alabama, Minnesota, Arkansas, Louisiana, New York, Arizona, Nevada, Mississippi, and Colorado, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Four Corners Property Trust Q4 2025 Earnings Call Highlights
- Acquisition Growth: In 2025, Four Corners Property Trust acquired $318 million in net lease properties, with $95 million acquired in Q4 alone, maintaining a blended cap rate of 6.8%, demonstrating the company's selective and flexible approach in midsized transactions.
- Financial Performance: Q4 AFFO per share was $0.45, with full-year AFFO reaching $1.78, reflecting a 2.9% increase year-over-year, while cash rental income amounted to $67.5 million, showing an 11.1% growth compared to last year, indicating robust revenue and cash flow performance.
- Portfolio Quality: The company's portfolio occupancy stood at 99.6%, with a 99.5% collection rate for base rent in Q4, showcasing strong rent collection capabilities and high-quality asset management, further boosting investor confidence.
- Future Outlook: Management anticipates continued diversification and expanded platform capabilities in 2026, with cash G&A guidance set between $19.2 million and $19.7 million, reflecting ongoing efforts to control costs and optimize operations.
See More
Four Corners (FCPT) Earnings Call Transcript
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Four Corners Property Trust Q4 Earnings Analysis
- Financial Performance: Four Corners Property Trust (FCPT) reported a Q4 FFO of $0.43, aligning with market expectations, indicating the company's ability to maintain stable earnings.
- Revenue Growth: The company achieved Q4 revenue of $75.67 million, reflecting a 10.7% year-over-year increase, although it fell short of analyst expectations, demonstrating sustained market demand.
- Acquisition Milestone: FCPT reached a $318 million acquisition milestone for 2025, including an $8.6 million purchase of Sprouts Farmers Market, highlighting the company's proactive strategy in expanding its investment portfolio.
- Market Evaluation: While Four Corners Property Trust is viewed as an undervalued REIT, analysts note limited near-term upside potential, reflecting market caution regarding its future growth prospects.
See More
Four Corners Property Trust Q4 Earnings Preview
- Earnings Announcement Date: Four Corners Property Trust (FCPT) is set to release its Q4 2023 earnings on February 11th after market close, with a consensus EPS estimate of $0.28, reflecting a significant year-over-year decline of 36.4%, indicating potential profitability challenges.
- Revenue Expectations: The anticipated revenue for Q4 is $76.04 million, representing an 11.3% year-over-year increase, despite facing two downward revisions, suggesting a weakening market confidence in the company's growth prospects.
- Estimate Revision Overview: Over the past three months, EPS estimates have seen one upward and one downward revision, while revenue estimates have not seen any upward revisions and have experienced two downward adjustments, highlighting analyst discrepancies regarding the company's performance outlook.
- Acquisition Milestone: FCPT has achieved a $318 million acquisition milestone for 2025, including the $8.6 million purchase of Sprouts Farmers Market and a $4.3 million acquisition of an Applebee's property, demonstrating the company's proactive strategy in expanding its asset portfolio.
See More
Analysis of FCPT Rating Discrepancies
- Rating Discrepancy: Fitch rates FCPT at BBB with a stable outlook, while Moody's assigns a Baa3 rating, indicating that FCPT is teetering on the edge of investment grade, which could affect investor confidence and cost of capital.
- Leverage Metrics: FCPT's net debt to adjusted EBITDA ratio stands at 4.7x, rising to 5.3x without considering unsettled forward equity, showcasing management's cautious approach to deleveraging with 97% of debt being fixed-rate, indicating financial stability.
- Dividend Payout Ratio Risk: With an AFFO payout ratio of 82.8%, there is a buffer, but any weaker performance in upcoming quarters could push this ratio above 85%, jeopardizing the sustainability of the dividend.
- Future Outlook: FCPT is set to report Q4 2025 earnings on February 11, 2026, with market focus on whether the AFFO payout ratio remains stable, serving as a critical indicator of the company's financial health.
See More
Analysis of FCPT's 52-Week High and Low Points
- Price Range Analysis: FCPT's 52-week low is $22.78 per share, with a high of $29.81, and the last trade at $25.43 indicates the stock's volatility within this range, reflecting market interest in its price movements.
- Technical Indicator Insights: The current price of $25.43 is above the 52-week low, suggesting a partial recovery in market confidence for FCPT, which may attract more investor attention towards its future performance.
- Dividend Stock Performance: FCPT is among the dividend stocks that recently crossed above their 200-day moving average, indicating its potential for stable returns, which may appeal to investors seeking consistent income.
- Market Sentiment Impact: Despite the current price fluctuations within the 52-week range, the market sentiment towards FCPT remains neutral, reflecting investor caution regarding its future growth prospects.
See More
Four Corners Property Trust Q4 2025 Earnings Call Highlights
- Acquisition Growth: In 2025, Four Corners Property Trust acquired $318 million in net lease properties, with $95 million acquired in Q4 alone, maintaining a blended cap rate of 6.8%, demonstrating the company's selective and flexible approach in midsized transactions.
- Financial Performance: Q4 AFFO per share was $0.45, with full-year AFFO reaching $1.78, reflecting a 2.9% increase year-over-year, while cash rental income amounted to $67.5 million, showing an 11.1% growth compared to last year, indicating robust revenue and cash flow performance.
- Portfolio Quality: The company's portfolio occupancy stood at 99.6%, with a 99.5% collection rate for base rent in Q4, showcasing strong rent collection capabilities and high-quality asset management, further boosting investor confidence.
- Future Outlook: Management anticipates continued diversification and expanded platform capabilities in 2026, with cash G&A guidance set between $19.2 million and $19.7 million, reflecting ongoing efforts to control costs and optimize operations.
See More
Four Corners (FCPT) Earnings Call Transcript
See More
Four Corners Property Trust Q4 Earnings Analysis
- Financial Performance: Four Corners Property Trust (FCPT) reported a Q4 FFO of $0.43, aligning with market expectations, indicating the company's ability to maintain stable earnings.
- Revenue Growth: The company achieved Q4 revenue of $75.67 million, reflecting a 10.7% year-over-year increase, although it fell short of analyst expectations, demonstrating sustained market demand.
- Acquisition Milestone: FCPT reached a $318 million acquisition milestone for 2025, including an $8.6 million purchase of Sprouts Farmers Market, highlighting the company's proactive strategy in expanding its investment portfolio.
- Market Evaluation: While Four Corners Property Trust is viewed as an undervalued REIT, analysts note limited near-term upside potential, reflecting market caution regarding its future growth prospects.
See More
Four Corners Property Trust Q4 Earnings Preview
- Earnings Announcement Date: Four Corners Property Trust (FCPT) is set to release its Q4 2023 earnings on February 11th after market close, with a consensus EPS estimate of $0.28, reflecting a significant year-over-year decline of 36.4%, indicating potential profitability challenges.
- Revenue Expectations: The anticipated revenue for Q4 is $76.04 million, representing an 11.3% year-over-year increase, despite facing two downward revisions, suggesting a weakening market confidence in the company's growth prospects.
- Estimate Revision Overview: Over the past three months, EPS estimates have seen one upward and one downward revision, while revenue estimates have not seen any upward revisions and have experienced two downward adjustments, highlighting analyst discrepancies regarding the company's performance outlook.
- Acquisition Milestone: FCPT has achieved a $318 million acquisition milestone for 2025, including the $8.6 million purchase of Sprouts Farmers Market and a $4.3 million acquisition of an Applebee's property, demonstrating the company's proactive strategy in expanding its asset portfolio.
See More
Analysis of FCPT Rating Discrepancies
- Rating Discrepancy: Fitch rates FCPT at BBB with a stable outlook, while Moody's assigns a Baa3 rating, indicating that FCPT is teetering on the edge of investment grade, which could affect investor confidence and cost of capital.
- Leverage Metrics: FCPT's net debt to adjusted EBITDA ratio stands at 4.7x, rising to 5.3x without considering unsettled forward equity, showcasing management's cautious approach to deleveraging with 97% of debt being fixed-rate, indicating financial stability.
- Dividend Payout Ratio Risk: With an AFFO payout ratio of 82.8%, there is a buffer, but any weaker performance in upcoming quarters could push this ratio above 85%, jeopardizing the sustainability of the dividend.
- Future Outlook: FCPT is set to report Q4 2025 earnings on February 11, 2026, with market focus on whether the AFFO payout ratio remains stable, serving as a critical indicator of the company's financial health.
See More
Analysis of FCPT's 52-Week High and Low Points
- Price Range Analysis: FCPT's 52-week low is $22.78 per share, with a high of $29.81, and the last trade at $25.43 indicates the stock's volatility within this range, reflecting market interest in its price movements.
- Technical Indicator Insights: The current price of $25.43 is above the 52-week low, suggesting a partial recovery in market confidence for FCPT, which may attract more investor attention towards its future performance.
- Dividend Stock Performance: FCPT is among the dividend stocks that recently crossed above their 200-day moving average, indicating its potential for stable returns, which may appeal to investors seeking consistent income.
- Market Sentiment Impact: Despite the current price fluctuations within the 52-week range, the market sentiment towards FCPT remains neutral, reflecting investor caution regarding its future growth prospects.
See More
