Four Corners Property Trust Reports 8.8% Increase in Net Income to $26.2 Million

Four Corners Property Trust, Inc. (FCPT) reported a net income of $26.2 million for the first quarter of 2025, reflecting an increase of 8.8% from $24.1 million in the same period last year. The company's total revenues rose to $71.5 million, up from $66.5 million, driven primarily by an increase in rental revenue, which grew by 8.4% to $63.5 million. This growth was attributed to the acquisition of 106 leased properties over the past year, contributing to a more substantial rental income base.

In terms of operational expenses, FCPT's total operating expenses increased to $32.9 million from $30.3 million, largely due to higher general and administrative costs, which rose by 23% to $7.6 million. This increase was primarily linked to higher stock-based compensation expenses. Depreciation and amortization expenses also saw a rise, totaling $14.4 million compared to $13.5 million in the previous year, reflecting the impact of the expanded property portfolio. Interest expenses increased slightly to $12.7 million, up from $12.3 million, due to additional borrowings under the term loan facility.

During the quarter, FCPT made significant strategic moves, acquiring 23 properties for a total investment of $57.8 million, with all properties fully leased under net leases. The company’s portfolio now includes 1,221 properties across 47 states, maintaining a high occupancy rate of 99.4%. The average remaining lease term for these properties is 7.3 years, with an average annual rent escalation of 1.4%. The company also reported a strong collection rate, with 99.5% of contractual base rent collected for the quarter.

Looking ahead, FCPT remains focused on expanding its portfolio and reducing reliance on its primary tenant, Darden Restaurants, which currently accounts for approximately 47% of its rental income. The company has a robust liquidity position, with $22.3 million in cash and $350 million available under its revolving credit facility. FCPT's management anticipates continued growth through strategic acquisitions and aims to maintain its status as a Real Estate Investment Trust (REIT) by adhering to the necessary operational requirements. The company’s outlook remains positive, with expectations for further revenue growth driven by its acquisition strategy and stable tenant relationships.