Four Corners Property Trust's Q2 2025: Unraveling Contradictions in Acquisition Strategy and Growth Capacity

Acquisition team capacity, acquisition strategy and growth, deal flow and competitive landscape, acquisition focus and diversification, and acquisition capacity and growth strategy are the key contradictions discussed in Four Corners Property Trust's latest 2025Q2 earnings call.



Acquisition Volume and Strategy:
- Four Corners Property Trust (FCPT) acquired $344 million of properties in the last 12 months, with $84 million in Q2 alone.
- The company focuses on high-quality properties and creditworthy tenants, maintaining a consistent pricing strategy despite fluctuations in cost of capital.

Portfolio Diversification:
- FCPT has grown from 418 properties across 5 brands in 2015 to 1,260 leases across 165 brands in 2025, with casual dining now representing 59% of rents, down from 94% at spin-off.
- The company aims for a defensive portfolio by diversifying into essential retail and services, reducing exposure to problematic sectors like experiential retail.

Capital Position and Liquidity:
- FCPT raised $24 million in equity in Q2, part of $149 million raised in Q1, totaling $500 million in available capital for acquisitions.
- The company maintains a strong liquidity position with $500 million of available capital and no near-term debt maturities, ensuring execution of its business plan without additional capital market access.

Financial Performance and Lease Maturity Profile:
- FCPT reported AFFO per share of $0.44, up 2.8% from Q2 2024, with rental income growing over 11% in the quarter.
- More than 85% of expirations in 2025 have been extended, with 2025 expirations representing only 0.4% of ABR, indicating strong tenant retention and lease management.