Key Highlights

  • Total revenues rose 12.9% to USD 83.7 million, while rental revenue increased 13.8% to USD 75.7 million.
  • AFFO per diluted share reached USD 0.46, up 2.9%, and NAREIT-defined FFO per share was USD 0.43, up 2.4%.
  • The REIT acquired 120 properties for USD 326.3 million at a 6.6% initial cash yield, about 87% medical retail.
  • A repurchase program of up to USD 100 million was authorized, and monthly dividends rose 3.5% to USD 0.1265.

Four Corners Property Trust, Inc. (NYSE:FCPT) reported third-quarter 2026 total revenues of USD 83.7 million, up from USD 74.1 million a year earlier and above a consensus estimate of USD 82.44 million. GAAP net income attributable to common shareholders was USD 28.8 million, or USD 0.26 per diluted share, below a consensus estimate of USD 0.29 and below USD 0.28 per share in the same quarter of 2025. Net income was flat at USD 28.8 million, while interest expense climbed to USD 17.4 million from USD 13.0 million.

On a REIT-specific basis, adjusted funds from operations were USD 0.46 per diluted share, a 2.9% gain, and NAREIT-defined funds from operations were USD 0.43 per share, a 2.4% gain. Rental revenue of USD 75.7 million consisted of USD 75.2 million in cash rent and USD 502 thousand of straight-line and other non-cash adjustments. Rent collection stood at 99.7% of contractual base rent for the quarter.

Acquisitions, Portfolio and Leasing

During the quarter the company acquired 120 properties for USD 326.3 million at an initial weighted average cash yield of 6.6%, or 7.1% on a GAAP basis, with a weighted average remaining lease term of 9.6 years. By purchase price, roughly 87% of the volume was medical retail, 5% casual dining and quick service restaurants, 5% auto and 4% other retail. CEO Bill Lenehan described the volume as a record for the company and noted it was funded entirely with low-cost debt. No properties were sold.

The portfolio held 1,456 properties across 48 states, 99.5% occupied by square footage, with a weighted average remaining lease term of about 6.7 years. Management said Darden extended 100% of the Olive Garden and LongHorn leases maturing in 2027 without landlord concessions. Cash general and administrative expense was USD 4.7 million, or 6.3% of cash rental income, compared with 6.5% a year earlier.

Financing, Buyback and Dividend Commentary

Debt totaled USD 1,585 million at September 30, made up of USD 960 million of term loans and USD 625 million of unsecured fixed-rate notes, with no revolver balance. Net debt to adjusted EBITDAre was 6.0x. On July 28 the company signed a Fifth Amended and Restated credit agreement that raised the facility from USD 940 million to USD 1.15 billion through a new USD 400 million term loan maturing August 2031. Liquidity was about USD 397 million, including USD 350 million of revolver capacity.

The board authorized an inaugural repurchase program of up to USD 100 million, with no obligation to buy any set amount. The CEO said that at the current share price, repurchases deliver more value than property purchases, while noting that new acquisitions have started to price at higher capitalization rates. The company sold no shares through its at-the-market program this year and has no forward sale shares left to settle. Monthly dividends of USD 0.1265 per share were declared for October through December, equal to USD 1.5180 annually.

Operating Gauges to Follow

Four items give the next report its shape. The first is capital allocation, as the new repurchase program of up to USD 100 million competes with acquisitions priced at higher cap rates than before. The second is leverage, which stood at 6.0x net debt to adjusted EBITDAre, with USD 40 million of the new term loan still undrawn and scheduled to be drawn by the end of the fourth quarter. The third is the yield on new investments, at 6.6% cash against 7.1% GAAP. The fourth is portfolio health, with occupancy at 99.5% and collections at 99.7%.