Four Corners Property Trust, Inc.

Good day and welcome to the FC-PT Second Quarter 2021 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Jerry Morgan. Please go ahead.

Thank you, Sarah. During the course's call, we will make forward-looking statements, which are based on beliefs and assumptions made by us. Our actual results will be affected by known and unknown factors, including uncertainty related to the remaining scope, severity, and duration of the COVID-19 pandemic that are beyond our control or ability to predict. Our assumptions are not a guarantee of future performance, and some will prove to be incorrect. For a more detailed description of some potential risks, please refer to our SEC filings, which can be found at fcpt.com. All of the information presented on this call is current as of today, August 5th, 2021. In addition, reconciliation to non-GAAP financial measures presented on this call, such as FFO and AFFO, can be found in the company's supplemental report, also available on our website. And with that, I'll turn the call over to Bill. Good morning.

Thank you for joining us to discuss our second quarter results. I'm going to make some introductory remarks. Pat Wernick, our Director of Acquisitions, is going to go into some detail around acquisitions, and then we will hand it back to Jerry to discuss the financial results. In summary, we continue to have industry-leading collections at 99.8% for the quarter, and occupancy was unchanged at 99.7%. Our restaurant and other retail tenants are experiencing top-line performance, often above 2019 pre-pandemic levels. In the quarter, we also acquired 23 great properties characterized by low rents and high quality tenants and recast our $650 million credit facility to both extend the term and improve pricing. We reported second quarter AFFO of $0.38 per share, which represents a $0.04 year-over-year increase. I remind everyone that second quarter 2020 results were impacted negatively by approximately $0.03 per share due to COVID-related variances. We are excited to see the strong rebound of restaurant operators continuing in the first half of the year. We included a slide in our investor presentation posted to the website yesterday with updated survey information from Baird that shows quick service restaurants are operating at 119% of 2019 weekly levels and casual dining restaurants are operating at 100% of 2019 levels. Darden and other operators are also reporting higher margins than before the pandemic. highlighting how well leading restaurant operators are adjusting their business models, including simplifying menus, enhancing to-go operations, and leveraging technology. As a case in point, our Carrow subsidiary experienced its highest EBITDA results in the second quarter since our inception, and that is prior to including the contribution from Carrow's seventh Longhorn, which opened in April. Well done, Carrow and team. Turning to investments. We acquired 23 properties in the quarter for a combined price of $45.6 million and an initial cash yield of 6.9%. The acquisitions represent strong tenants with 21 of the 23 properties leased to corporate operators and 10 new brands added to the portfolio. In addition, we have closed on over 28 million of properties in the third quarter to date. Looking back on the last two months, you're seeing increased momentum with 49 million closed in total. Importantly, We've been able to build our pipeline while staying committed to our focus on quality investments with every property approved for acquisition standing on its own merits. While we don't give guidance, we feel the pipeline is very, very strong, and we are expecting a pickup and closing in the second half of the year. Pat is going to discuss this pickup in a bit more detail later on in the call. On the vacant fund, we have yet to see large bankruptcies of scale where FCPT's unique abilities would allow us to opportunistically buy in bulk. Opportunities in this space may arrive eventually as weaker brands struggle to keep pace with the shift to digital off-premises sales or if large casual dining or retail operators files for full liquidation. On the personnel front, we've continued to hire into the investment, accounting, legal, and property management teams. It is a competitive market today, but there is nothing more important than our recruiting and team development efforts. With that, I'll turn it over to Pat for some additional comments on the acquisition environment.