Four Corners Property Trust Inc (FCPT) Reports 17.3% Increase in Q3 Rental Revenue
FCPT's rental revenue for Q3 2023 increased by 17.3% over the prior year to $57.2 million.
The company reported a net income attributable to common shareholders of $24.2 million for Q3 2023.
FCPT achieved a record acquisition growth year, up 13% over 2022 total volume.
The company's rental portfolio consisted of 1,106 properties located in 47 states, with a 99.8% occupancy rate.
Four Corners Property Trust Inc (NYSE:FCPT) released its Q3 2023 earnings report on November 1, 2023, revealing a significant increase in rental revenue and stable occupancy rates. The company's rental revenue for the third quarter increased 17.3% over the prior year to $57.2 million. FCPT's net income attributable to common shareholders was $24.2 million for the third quarter, or $0.27 per diluted share.
Financial Highlights
FCPT's net income attributable to common shareholders for the nine months ended September 30, 2023, was $70.9 million, or $0.80 per diluted share. This compares to a net income attributed to common shareholders of $74.9 million for the same nine-month period in 2022, or $0.92 per diluted share.
The company's NAREIT-defined FFO per diluted share for the third quarter was $0.41, representing a $0.01 increase compared to the same quarter in 2022. The AFFO per diluted share for the third quarter was $0.42, representing a $0.01 per share increase compared to the same quarter in 2022.
Portfolio and Acquisitions
As of September 30, 2023, FCPT's rental portfolio consisted of 1,106 properties located in 47 states. The properties are 99.8% occupied under long-term, net leases with a weighted average remaining lease term of approximately 8.0 years. During the third quarter, FCPT acquired 31 properties for a combined purchase price of $130.2 million at an initial weighted average cash yield of 6.4%.
Liquidity and Capital Markets
At the end of Q3 2023, FCPT had approximately $237 million of available liquidity, including $6 million of cash and cash equivalents, $11 million of restricted cash from 1031 sales, and $220 million of undrawn revolving credit facility capacity. The company had $1,135 million of outstanding debt, consisting of $430 million of term loans and $675 million of unsecured fixed-rate notes.
Management Commentary
Through the first three quarters, FCPT has achieved a record acquisition growth year, up 13% over 2022 total volume, funded through accretive capital raised earlier in the year. Additionally, our portfolio continued to perform well with high rent collections and occupancy," said CEO Bill Lenehan. "We believe that we are well-positioned in a higher rate environment and expect to be ready to take advantage of opportunities as they arise."
Explore the complete 8-K earnings release (here) from Four Corners Property Trust Inc for further details.
This article first appeared on GuruFocus.
