How did FCPT's Q4 earnings surprise investors?

Four Corners Property Trust (FCPT) reported Q4 2024 earnings that slightly missed investor expectations, leading to a mixed reaction in the market.

1. **Revenue and EPS Performance**:
- FCPT’s Q4 revenue was $68.34 million, slightly below the estimated $72.42 million, marking a 5.3% year-over-year increase.
- The net income for the quarter was $26.2 million, or $0.27 per diluted share, which missed the estimated $0.28 per share.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|FCPT|FCPT.N|Four Corners Property Trust|2024 Q1|6.6467E7|2.4074E7|0.26|169|
|FCPT|FCPT.N|Four Corners Property Trust|2024 Q2|6.6479E7|2.4702E7|0.27|169|
|FCPT|FCPT.N|Four Corners Property Trust|2024 Q3|6.6791E7|2.5612E7|0.27|169|
|FCPT|FCPT.N|Four Corners Property Trust|2024 Q4|6.8336E7|2.6207E7|0.27|169|

2. **Investor Sentiment and Market Reaction**:
- Despite the slight miss, FCPT's stock saw a modest increase of 0.72% in after-hours trading, reflecting positive investor sentiment.
- The company's strong financial health, with a "GREAT" overall score and excellent profitability metrics, likely contributed to the positive sentiment.
3. **Strategic Highlights and Future Outlook**:
- FCPT concluded 2024 with significant acquisitions, spending $265 million at a blended 7.1% cap rate, underscoring its growth commitment.
- The company maintained a high occupancy rate of 99.6% and collected 99.4% of base rent, indicating strong operational performance.
- With approximately $347 million in liquidity and a resilient portfolio, FCPT is well-positioned for future growth and acquisitions.
4. **Challenges and Areas for Improvement**:
- Rising interest rates posed a challenge for net lease companies, impacting acquisition volumes.
- There was a slight sequential decline in rent collection, which could signal emerging challenges in rent payments.

In conclusion, while FCPT's Q4 earnings fell slightly short of expectations, the company's strong operational performance, strategic acquisitions, and positive market sentiment suggest that investors may remain optimistic about FCPT's future prospects.