Four Corners Property Trust, Inc.

What they do

FCPT was formed as a Darden Restaurants subsidiary in 2015 and separated in November 2015; it operates through Four Corners Operating Partnership, LP. The company owns free-standing restaurant and retail properties leased on net leases where tenants are responsible for utilities, property taxes, insurance, common area maintenance and repairs. It also operates the Kerrow Restaurant Operating Business through a taxable REIT subsidiary under franchise agreements with Darden. It is organized into two segments: real estate operations and restaurant operations.

Revenue drivers

• Real estate operations — Primarily rental revenue from net-leasing restaurant and retail properties; at December 31, 2025 the portfolio had 1,303 free-standing properties in 48 states totaling 8.8 million square feet, 99.6% occupied, with a 6.9-year average remaining lease term and 53% investment-grade tenancy by annualized base rent.
• Restaurant operations (Kerrow) — Sales revenue, restaurant expenses and overhead from the Kerrow Restaurant Operating Business across seven buildings and equipment, operated under franchise agreements with Darden through a taxable REIT subsidiary.
• Acquisition-driven growth — In 2025 FCPT invested $325.5 million to acquire 105 rental properties and ground leasehold interests aggregating 713.9 thousand square feet, expanding the rental revenue base beyond the legacy Darden assets.

Recent performance

For the quarter ended June 30, 2026, FCPT reported rental revenue of $70.0 million, up 8.0% year over year, consisting almost entirely of cash rents with less than $10 thousand of combined straight-line and other non-cash adjustments. Net income attributable to common shareholders was $30.0 million, or $0.27 per diluted share, versus $27.9 million, or $0.28 per diluted share, in the same quarter of 2025. For the six months ended June 30, 2026, net income was $60.3 million, or $0.55 per diluted share, compared with $54.1 million, or $0.54 per diluted share, a year earlier. Second-quarter AFFO per diluted share was $0.45 (up 1.4%) and FFO per diluted share was $0.42 (flat versus prior year). As of June 30, 2026, rent collections equaled 99.7% of portfolio contractual base rent.

Strategy

Management is diversifying away from Darden by acquiring well-located restaurant and retail properties with creditworthy tenants and below-market rent levels that support renewal. In 2025 the company invested $325.5 million in 105 properties and ground leasehold interests; through July 2026 it had already surpassed its prior record for total annual investment in a single calendar year. In July 2026 FCPT completed the largest investment in its history, acquiring The Mission Pet Health portfolio of 102 buildings for $268 million, which reduced Darden exposure to approximately 41% of total rent. The company refinanced and upsized its credit facility, ending June 30, 2026 with roughly $525 million of available liquidity including a fully undrawn $350 million revolver. FCPT also transitioned to monthly dividends, declaring $0.1222 per share for July, August and September 2026 after a $0.3665 second-quarter dividend.

Risks

• Tenant concentration — FCPT depends on Darden, Brinker and other tenants to operate successfully and pay rent, and a significant portion of its restaurant properties are Olive Garden locations, leaving it exposed to a concentrated brand base.
• Restaurant industry exposure — The portfolio and the Kerrow operating business are tied to the restaurant industry and subject to its operating, labor, cost and demand risks.
• Geographic concentration — The portfolio has some geographic concentration, making results more susceptible to adverse regional events across the 48 states where properties are located.
• Interest rates and inflation — Rising market interest rates could increase tenants' borrowing costs and their ability to refinance or operate, while inflation may adversely affect both FCPT and its tenants.

Outlook

Management described second-quarter 2026 results as strong and noted that year-to-date investment through July had already exceeded any prior full-year record. The July 2026 Mission Pet Health acquisition of 102 buildings for $268 million was framed as an important diversification milestone that reduced Darden exposure to roughly 41% of total rent. Management said the refinanced and upsized credit facility, with a fully undrawn $350 million revolver, leaves FCPT well positioned to pursue its growth objectives.