FCPT Announces Second Quarter 2024 Financial and Operating Results
Management Comments
“FCPT continued its strong performance in the second quarter. We acquired
Rent Collection Update
As of
Financial Results
Rental Revenue and Net Income Attributable to Common Shareholders
-
Rental revenue for the second quarter increased 10.8% over the prior year to
$58.5 million . Rental revenue consisted of$57.9 million in cash rents and$0.6 million of straight-line and other non-cash rent adjustments. -
Net income attributable to common shareholders was
$24.7 million for the second quarter, or$0.27 per diluted share. These results compare to net income attributable to common shareholders of$23.6 million for the same quarter in the prior year, or$0.27 per diluted share. -
Net income attributable to common shareholders was
$48.7 million for the six months endedJune 30, 2024 , or$0.53 per diluted share. These results compare to net income attributed to common shareholders of$46.7 million for the same six-month period in 2023, or$0.54 per diluted share.
Funds from Operations (FFO)
-
NAREIT-defined FFO per diluted share for the second quarter was
$0.41 , representing a$0.01 increase compared to the same quarter in 2023. -
NAREIT-defined FFO per diluted share for the six months ended
June 30, 2024 was$0.82 , representing a$0.03 per share increase compared to the same six-month period in 2023.
Adjusted Funds from Operations (AFFO)
-
AFFO per diluted share for the second quarter was
$0.43 , representing a$0.01 per share increase compared to the same quarter in 2023. -
AFFO per diluted share for the six months ended
June 30, 2024 was$0.86 , representing a$0.03 per share increase compared to the same six-month period in 2023.
General and Administrative (G&A) Expense
-
G&A expense for the second quarter was
$6.0 million , which included$1.7 million of stock-based compensation. These results compare to G&A expense in the second quarter of 2023 of$5.6 million , including$1.6 million of stock-based compensation. -
Cash G&A expense (after excluding stock-based compensation) for the second quarter was
$4.3 million , representing 7.4% of cash rental income for the quarter.
Dividends
-
FCPT declared a dividend of
$0.345 per common share for the second quarter of 2024.
Real Estate Portfolio
-
As of
June 30, 2024 , the Company’s rental portfolio consisted of 1,154 properties located in 47 states. The properties are 99.6% occupied (measured by square feet) under long-term, net leases with a weighted average remaining lease term of approximately 7.4 years.
Acquisitions
-
During the second quarter, FCPT acquired 17 properties for a combined purchase price of
$45.5 million at an initial weighted average cash yield of 7.2%, on rents in place as ofJune 30, 2024 and a weighted average remaining lease term of 13.1 years.
Dispositions
- During the second quarter, FCPT did not sell any properties.
Liquidity and Capital Markets
Capital Raising
-
During the second quarter, the Company sold 99,656 shares of Common Stock via the at-the-market (ATM) program at an average price of
$25.14 per share for net proceeds of$2.4 million .
Liquidity
-
On
June 30, 2024 , FCPT had approximately$240 million of available liquidity including$17 million of cash and cash equivalents and$223 million of undrawn revolving credit facility capacity.
Credit Facility and Unsecured Notes
-
On
June 30, 2024 , FCPT had$1,167 million of outstanding debt, consisting of$515 million of term loans and$625 million of unsecured fixed rate notes and$27 million outstanding revolver balance. FCPT’s leverage, as measured by the ratio of net debt to adjusted EBITDAre, is 5.7x at quarter-end.
Conference Call Information
Company management will host a conference call and audio webcast on
Interested parties can listen to the call via the following:
Phone: 1 833 470 1428 (domestic) or 1 404 975 4839 (international), Call Access Code: 581658
Live webcast: https://events.q4inc.com/attendee/220645416
In order to pre-register for the call, investors can visit https://www.netroadshow.com/events/login?show=700c1afe&confId=68331
Replay: Available through
About FCPT
FCPT, headquartered in
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance, announced transactions, expectations regarding the making of distributions and the payment of dividends, and the effect of pandemics on the business operations of the Company and the Company’s tenants and their continued ability to pay rent in a timely manner or at all. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and the Company can give no assurance that its expectations or the events described will occur as described. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the company from time to time with the
Notice Regarding Non-GAAP Financial Measures:
In addition to
Supplemental Materials and Website:
Supplemental materials on the Second Quarter 2024 operating results and other information on the Company are available on the investors relations section of FCPT’s website at investors.fcpt.com.
|
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Revenues: |
||||||||||||||||
Rental revenue |
$ |
58,539 |
|
$ |
52,843 |
|
$ |
117,112 |
|
$ |
105,040 |
|
||||
Restaurant revenue |
|
7,940 |
|
|
7,845 |
|
|
15,834 |
|
|
15,600 |
|
||||
Total revenues |
|
66,479 |
|
|
60,688 |
|
|
132,946 |
|
|
120,640 |
|
||||
Operating expenses: |
||||||||||||||||
General and administrative |
|
6,004 |
|
|
5,600 |
|
|
12,217 |
|
|
11,655 |
|
||||
Depreciation and amortization |
|
13,345 |
|
|
11,817 |
|
|
26,812 |
|
|
23,993 |
|
||||
Property expenses |
|
2,836 |
|
|
2,676 |
|
|
5,917 |
|
|
5,843 |
|
||||
Restaurant expenses |
|
7,332 |
|
|
7,197 |
|
|
14,896 |
|
|
14,492 |
|
||||
Total operating expenses |
|
29,517 |
|
|
27,290 |
|
|
59,842 |
|
|
55,983 |
|
||||
Interest expense |
|
(12,324 |
) |
|
(10,051 |
) |
|
(24,605 |
) |
|
(19,969 |
) |
||||
Other income, net |
|
150 |
|
|
|
226 |
|
|
390 |
|
|
|
526 |
|
||
Realized gain on sale, net |
|
- |
|
|
|
173 |
|
|
- |
|
|
|
1,735 |
|
||
Income tax expense |
|
(86 |
) |
|
|
(91 |
) |
|
(113 |
) |
|
|
(139 |
) |
||
Net income |
|
24,702 |
|
|
23,655 |
|
|
48,776 |
|
|
46,810 |
|
||||
Net income attributable to noncontrolling interest |
|
(30 |
) |
|
(30 |
) |
|
(60 |
) |
|
(61 |
) |
||||
Net Income Attributable to Common Shareholders |
|
$ |
24,672 |
|
|
$ |
23,625 |
|
|
$ |
48,716 |
|
|
$ |
46,749 |
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per share |
|
$ |
0.27 |
|
|
$ |
0.27 |
|
|
$ |
0.53 |
|
|
$ |
0.54 |
|
Diluted net income per share |
|
$ |
0.27 |
|
|
$ |
0.27 |
|
|
$ |
0.53 |
|
|
$ |
0.54 |
|
Regular dividends declared per share |
|
$ |
0.3450 |
|
|
$ |
0.3400 |
|
|
$ |
0.6900 |
|
|
$ |
0.6800 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
91,807,764 |
|
|
|
87,366,335 |
|
|
|
91,763,619 |
|
|
|
86,604,202 |
|
Diluted |
|
|
91,994,062 |
|
|
|
87,556,011 |
|
|
|
91,976,282 |
|
|
|
86,825,150 |
|
|
|||||||||
|
|
||||||||
ASSETS |
(Unaudited) |
||||||||
Real estate investments: |
|||||||||
Land |
$ |
1,264,216 |
|
$ |
1,240,865 |
|
|||
Buildings, equipment and improvements |
|
1,744,544 |
|
|
1,708,556 |
|
|||
Total real estate investments |
|
3,008,760 |
|
|
2,949,421 |
|
|||
Less: Accumulated depreciation |
|
(757,054 |
) |
|
(738,946 |
) |
|||
Total real estate investments, net |
|
2,251,706 |
|
|
2,210,475 |
|
|||
Intangible lease assets, net |
|
114,087 |
|
|
118,027 |
|
|||
Total real estate investments and intangible lease assets, net |
|
2,365,793 |
|
|
2,328,502 |
|
|||
Real estate held for sale |
|
- |
|
|
- |
|
|||
Cash and cash equivalents |
|
17,167 |
|
|
16,322 |
|
|||
Straight-line rent adjustment |
|
67,041 |
|
|
64,752 |
|
|||
Derivative assets |
|
24,293 |
|
|
20,952 |
|
|||
Deferred tax assets |
|
1,340 |
|
|
1,248 |
|
|||
Other assets |
|
10,280 |
|
|
19,858 |
|
|||
Total Assets |
$ |
2,485,914 |
|
$ |
2,451,634 |
|
|||
LIABILITIES AND EQUITY |
|
||||||||
Liabilities: |
|||||||||
Term loan and revolving credit facility ( |
$ |
537,270 |
|
$ |
441,745 |
||||
Senior unsecured notes |
|
621,313 |
|
|
670,944 |
|
|||
Dividends payable |
|
31,695 |
|
|
31,539 |
|
|||
Rent received in advance |
|
12,394 |
|
|
14,309 |
|
|||
Derivative liabilities |
|
348 |
|
|
2,968 |
|
|||
Other liabilities |
|
21,482 |
|
|
30,266 |
|
|||
Total liabilities |
|
1,224,502 |
|
|
1,191,771 |
|
|||
Equity: |
|||||||||
Preferred stock, |
|
- |
|
|
- |
|
|||
Common stock, |
|
9 |
|
|
9 |
|
|||
Additional paid-in capital |
|
1,272,477 |
|
|
1,261,940 |
|
|||
Accumulated other comprehensive income |
|
27,636 |
|
|
21,977 |
|
|||
Noncontrolling interest |
|
2,201 |
|
|
2,213 |
|
|||
Accumulated deficit |
|
(40,911 |
) |
|
(26,276 |
) |
|||
Total equity |
|
1,261,412 |
|
|
1,259,863 |
|
|||
Total Liabilities and Equity |
$ |
2,485,914 |
|
$ |
2,451,634 |
|
|
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Funds from operations (FFO): |
||||||||||||||||
Net income |
$ |
24,702 |
|
$ |
23,655 |
|
$ |
48,776 |
|
$ |
46,810 |
|
||||
Depreciation and amortization |
|
13,309 |
|
|
11,782 |
|
|
26,740 |
|
|
23,927 |
|
||||
Realized gain on sales of real estate |
|
- |
|
|
(173 |
) |
|
- |
|
|
(1,735 |
) |
||||
FFO (as defined by NAREIT) |
$ |
38,011 |
|
$ |
35,264 |
|
$ |
75,516 |
|
$ |
69,002 |
|
||||
Straight-line rental revenue |
|
(1,113 |
) |
|
(1,335 |
) |
|
(2,287 |
) |
|
(2,639 |
) |
||||
Deferred income tax benefit (1) |
|
(20 |
) |
|
(4 |
) |
|
(92 |
) |
|
(48 |
) |
||||
Stock-based compensation |
|
1,731 |
|
|
1,560 |
|
|
3,371 |
|
|
3,326 |
|
||||
Non-cash amortization of deferred financing costs |
|
653 |
|
|
564 |
|
|
1,291 |
|
|
1,128 |
|
||||
Non-real estate investment depreciation |
|
36 |
|
|
35 |
|
|
72 |
|
|
66 |
|
||||
Other non-cash revenue adjustments |
|
497 |
|
|
|
490 |
|
|
|
1,052 |
|
|
|
984 |
|
|
Adjusted Funds from Operations (AFFO) |
$ |
39,795 |
|
|
$ |
36,574 |
|
|
$ |
78,923 |
|
|
$ |
71,819 |
|
|
|
|
|
|
|
|
|||||||||||
Fully diluted shares outstanding (2) |
|
92,108,621 |
|
|
|
87,670,570 |
|
|
|
92,090,841 |
|
|
|
86,939,709 |
|
|
|
|
|
|
|
|
|||||||||||
FFO per diluted share |
$ |
0.41 |
|
|
$ |
0.40 |
|
|
$ |
0.82 |
|
|
$ |
0.79 |
|
|
|
|
|
||||||||||||||
AFFO per diluted share |
$ |
0.43 |
|
|
$ |
0.42 |
|
|
$ |
0.86 |
|
|
$ |
0.83 |
|
(1) |
Amount represents non-cash deferred income tax benefit recognized at the Kerrow Restaurant Business |
||||||||
(2) |
Assumes the issuance of common shares for OP units held by non-controlling interest |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731268063/en/
FCPT
CEO
CFO
Source: