Four Corners Property Trust, Inc.

Good morning, all, and thank you for joining us for the FCPT SEL course, the 2024 Financial Results Conference Call. My name is Carly, and I'll be coordinating your call today. If you'd like to register a question during the call, you can do so by pressing star followed by one on your telephone keypad. And to remove yourself from the line of questioning, it will be star followed by two. And I'd like to hand over to your host, Patrick Wynig, to begin. The floor is yours.

Thank you, Carly. During the course of this call, we will make forward-looking statements, which are based on our beliefs and assumptions. Actual results will be affected by known and unknown factors 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 FCC filings, which can be found at fcpt.com. All the information presented on this call is current as of today, October 31st, 2024. 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. With that, I will turn the call over to Bill.

Good morning. Thank you for joining us to discuss our third quarter results. I will make introductory remarks. Josh will comment further on the investment market, and Patrick will discuss our financial results and capital position. I'd like to start today's call on a theme which we've spent a lot of time internally over the past year, investment discipline. When the net lease industry saw its cost of capital rise in 2023, we paused external growth. We focused on accretion and declined to go out on the risk spectrum to make the math pencil at the cost of diluting our portfolio quality. We were patient. We didn't cut team resources and we were confident when the market shifted back, we'd be ready to return to growth. This past quarter saw our cost of capital on both the debt and equity side drop, and so we turned the acquisition machine back on with as much vigor as we turned it off. We raised over $224 million in equity, and today we have $100 million in equity forward, full capacity on the revolver, and the lowest leverage we've had in nearly five years. We're excited about the outlook for Q4 and next year. Now shifting to our in-place portfolio, we continue to perform very well with high rent collections and occupancy. Our rent coverage in the third quarter was five times for the majority of our portfolio that reports this figure. This remains the strongest coverage in the industry. As a reminder, FCPT's casual dining operators are national brands and sector leaders, and they generally outperform the industry. For example, Brinker recently reported truly same-store sales growth at plus 14% for the quarter ended in September. Similarly, Olive Garden and Longhorn reported the same sales growth of plus 1.6 and plus 4.7 for the full year ended May 2024. And the most recent quarter ended August 2024. Those figures moderated slightly to a plus 3.7 increase for Longhorn and a 2.9% decline for Olive Garden. As we look forward towards the rest of the year, We know that Q4 is typically our busiest quarter for acquisitions, and we believe that trend will continue in 2024. It will be a busy quarter. The team is seeing real success in sourcing high-quality deals consistent with our quality thresholds. We do not give guidance on the pipeline or our acquisition volume, but we do expect the coming months to be very active. So please watch out for press releases as we will follow our typical cadence of announcing each deal the day they close. As for portfolio management, we want to remind investors that our portfolio has near zero exposure to problem subsectors, such as theaters, pharmacies, big box retail, gyms, dollar stores, car wash, or general merchandise. So while potential softening of consumer spending may ripple through our retail operators, we believe our portfolio is very well positioned. We'd like to provide a final update on Red Lobster. The company exited bankruptcy in early September. All 18 of our stores were affirmed and remain open without any rent cut or disruption of payment. In fact, most of our stores had rent increases over the past few months and others continue to pay percentage rent. On a final note, while we continue to recognize that Darden is a strong foundation to our portfolio, we have reached a new milestone in our diversification efforts. We now have 156 brands in the portfolio, with Darter now making up slightly less than half of our portfolio. With that, I'll turn it over to Josh to further discuss the investment environment.