Four Corners Property Trust, Inc.

Hello everyone and thank you for joining us on today's FCPP second quarter 2025 financial results. My name is Drew and I'll be the operator on today's call. During the call we will have some prepared remarks followed by a Q&A session. If you would like to register a question today, please press star followed by one on your telephone keypad and to withdraw your question it's star followed by two. It's now my pleasure to hand over to Patrick Wernick to begin, please go ahead with your ready.

Thank you, Drew. 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 SEC filings which can be found at scpt.com. All the information presented on this call is current as of today, July 30th, 2025. In addition, reconciliation and non-GAAP financial measures presented on this call such as FFL and AFFL can be found in the company's supplemental report. That's all. Turn the call over to Bill.

Good morning. After my remarks, Josh will comment on the investment market and Patrick will discuss financial results and capital position. The first half of 2025 continued the momentum we had in the second half of 2024. We acquired additional properties that fit our high quality standards while keeping our pricing consistent. We were able to fund these deals with our strong cost of capital. Equity we raised on the ATM via forward issuance over the last year. 84 million in acquisitions in Q2 at a 6.7 blended cap rate. Over the last 12 months, we've acquired 344 million of properties, which is among our highest volumes across four consecutive quarters. We have momentum and are reaching these milestones in a uniquely FCPT way. One, we focused on real estate and credit worthy tenants never sacrificing quality for volume or spread. And two, we remain committed to modulating acquisitions when our cost of capital weekend and then returned with vigor when we re-entered the green zone. Our ability to fluctuate acquisitions to protect spread without weakening our portfolio quality is, in our view, a strong competitive advantage for FCPT. Our rent coverage in Q2 was five times for the majority of our portfolio that reports this figure. This remains amongst the strongest coverage within the net lease industry. Olive Garden, Longhorn, and Chili's are industry leaders and generally outperform the national peers as well as fine dining or local brands. Most recently, Brinker reported Chili's same store sales grew 32% for the quarter ended March 2025. Olive Garden and Longhorn reported same store sales growth of near 7% for the quarter ended May 2025. While casual dining is 66% of our rents, we also want to highlight the progress we've made on diversification. We've grown from 418 properties across five brands in 2015 at spin to 1260 leases across 165 brands 10 years later. Olive Garden and Longhorn are now 33 and 9% of our rent today versus a combined 94% at spin off. 34% of our portfolio rent is now outside of casual dining, including quick service at 11, automotive service at 12, and medical retail at 9. All of our chosen sectors are focused on central retail and services, creating what we view as a very defensive portfolio and quite tariff resistant. While we are still waiting for the tariff impact to completely settle, we expect restaurants and service industry to be less impacted due to their largely domestic supply chains. We would expect a pullback in consumer spending from any recession or high inflation environment, but we feel that we are well positioned with low rents to provide significant cushion. Our portfolio remains in fantastic shape with no exposure to the problem retailers or sectors that have been recently struggling, such as theaters, pharmacy, higher end car washes, and experiential retail. We aim for best in class disclosure. In addition to our press release of every acquisition, we also now disclose our top 35 brands in the supplemental, which represents 83% of our rents. The net lease industry peer group typically discloses 20 to 50% of rents. While we have not provided information on bad debt expense historically, because there hasn't been much to report, going back to 2016, we've had a total of $1.76 million in bad debt, excluding recoveries from releasing, versus $1.5 billion of rent collected over the same period. I'll repeat those figures. $1.76 million of bad debt versus $1.5 billion in rent collected. That's an average of 12 basis points or $176,000 per year, including zero in 2025. To put this in context, most of our peers have stated a track record or expectations of 25 to 75 basis points annually. I'd also like to note that in these rear credit events, our recovery rates for new leases have been very high, with an average above 90% of prior rent. They're often above 100% of prior rent when we replace the tenant. Over to you, Josh.