Four Corners Property Trust Inc
NYSE:FCPT
Four Corners Property Trust Inc
Four Corners Property Trust Inc. (FCPT) is best seen as a purveyor of simplicity in the complex world of real estate investment trusts (REITs). Born from a spinoff in 2015 from Darden Restaurants, the company has firmly positioned itself in the realm of managing high-quality real estate leased to popular restaurant and retail chains. FCPT's model pivots around acquiring properties leased to national and regional brand name tenants. This focus not only provides stability through established tenancy but also capitalizes on the consistent cash flow generated by fixed rental agreements. Their strategy relies on triple-net leases, a crucial component wherein tenants shoulder the burden of property taxes, insurance, and maintenance, leaving the company with a more predictable income stream.
The essence of FCPT's value proposition lies in its ability to leverage these triple-net properties for economic resilience, helping to shield itself from economic downturns and ensuring consistent growth. By dealing primarily with renowned tenants, such as Olive Garden and LongHorn Steakhouse, and carefully selecting properties based on rigorous criteria of location and tenant credit strength, FCPT ensures a reliable and robust portfolio. Their acquisition model is often backed by extensive analysis, embracing locations with strong demographic trends and favorable traffic patterns, which boosts the long-term value of their holdings. This disciplined approach enables Four Corners Property Trust to continually engage in strategic acquisitions that enhance its asset base, thus sewing itself into the fabric of dependable revenue generation through well-tenanted, strategically placed properties.
Four Corners Property Trust Inc. (FCPT) is best seen as a purveyor of simplicity in the complex world of real estate investment trusts (REITs). Born from a spinoff in 2015 from Darden Restaurants, the company has firmly positioned itself in the realm of managing high-quality real estate leased to popular restaurant and retail chains. FCPT's model pivots around acquiring properties leased to national and regional brand name tenants. This focus not only provides stability through established tenancy but also capitalizes on the consistent cash flow generated by fixed rental agreements. Their strategy relies on triple-net leases, a crucial component wherein tenants shoulder the burden of property taxes, insurance, and maintenance, leaving the company with a more predictable income stream.
The essence of FCPT's value proposition lies in its ability to leverage these triple-net properties for economic resilience, helping to shield itself from economic downturns and ensuring consistent growth. By dealing primarily with renowned tenants, such as Olive Garden and LongHorn Steakhouse, and carefully selecting properties based on rigorous criteria of location and tenant credit strength, FCPT ensures a reliable and robust portfolio. Their acquisition model is often backed by extensive analysis, embracing locations with strong demographic trends and favorable traffic patterns, which boosts the long-term value of their holdings. This disciplined approach enables Four Corners Property Trust to continually engage in strategic acquisitions that enhance its asset base, thus sewing itself into the fabric of dependable revenue generation through well-tenanted, strategically placed properties.
Strong Portfolio Quality: FCPT highlighted its "fortress" portfolio, with 0 bad debt in 2025 and 99.6% occupancy, and no exposure to problematic sectors like theaters or car washes.
Acquisition Growth: FCPT acquired $318 million of net lease properties in 2025—a 20% increase over 2024—at blended cap rates up to 7%, mostly via selective, midsized deals.
Tenant Performance: Major tenants Olive Garden, LongHorn, and Chili's posted strong same-store sales growth, supporting over half the portfolio's rent.
Bahama Breeze Update: Darden is shutting down the Bahama Breeze brand, but FCPT's exposure is small (1.3% of base rent, 10 properties), and there is significant tenant interest in re-leasing these sites.
Capital Position: FCPT is "over-equitized" with net debt/EBITDAre near 5x, full revolver capacity, $220 million liquidity, and most debt fixed at 4%. No major maturities until late 2026.
2026 Outlook: Management expects continued strong acquisition activity and diversification, supported by ample liquidity and the ability to use attractively priced debt.
AFFO and Cash Flow: Q4 AFFO per share was $0.45; full-year AFFO per share grew 2.9%. Cash rental income for Q4 grew 11.1% year-on-year.
