Four Corners Property Trust, Inc.

Hello, everyone. Thank you for joining us and welcome to Four Corners Property Trust's third quarter 2026 conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Patrick Wernig, CFO. Please go ahead.

Thank you, Lucas. 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 in front of Central Risk, please refer to our FCC filings, which can be found at fccp.com. All the information presented on the call is current as of today, October 29, 2026. In addition, reconciliations and non-GAAP financial measures presented on the

Good morning, and apologies for the technical difficulties. Following my initial remark on our Q3 results and the state of the market, Patrick will comment on our investment activity for the quarter and current capital position. 2026 has been a banner year for FCBT. Year-to-date, we have acquired a record volume of $410 million. Thank you for joining us. We fully funded the volume this quarter with two recently closed term loans that featured coupons in the mid-4 to low-5% range, utilizing our debt capacity generated spreads of over 200 basis points as compared to historic investment yields. We also updated our dividend policy to monthly payments beginning in August and subsequently increased the dividend by 3.5% for the fourth quarter. Finally, we were excited to announce a few weeks ago that Darden extended 100% of all Olive Garden and Longhorn leases maturing in 2027, along with the early extension of a handful of 2028 lease maturities. Lease properties represent the first extension decision by Darden since SDPT spinoff back in 2015. We note that the extensions do not require rent reductions or capital contributions from SDPT, and Darden's rents will continue to increase by 1.5% annually. To clarify, these are individual leases where the tenant made the decision in each and every case to extend under contractual terms. We also note that we've continued to significantly diversify. Gardening is now just 40% of cash rent, and 42% of our rents come from sectors outside of casual dining. This includes medical retail, now at 16%, automotive service at 13%, and quick service at 10%. now turn to the current acquisition environment, which has changed a great deal in recent months. Investors consistently ask us how this will impact our pipeline efforts. Our answer is that since inception, SEPT has been consistent in modulating acquisitions relative to our cost of capital. This happened most recently when rates rose in 2023. At that point, rising rates made it difficult to invest accretively, and so we subsequently stopped nearing all acquisitions and aggressively moderated additions to our pipeline from late 2023 from mid-24. Basically, we didn't buy anything. Once our cost of capital improved, we hit the gas with vigor and subsequently invested nearly a billion dollars in new, accretive real estate investments from 2024 through today. Capital allocation discipline is built into how we operate. We do not provide acquisition guidance. Our team's incentives are not sides of volume. This alignment lets us grow in its accretive and safe patient when it isn't. It's times like these when having experimental frameworks designed in non-permanent times makes all the difference to investors. Other companies may say they will modulate guidance in the face of weakening spreads, but we actually have an established track record of causing investments. Said simply and to be clear, FCPP's management will not sacrifice our shareholders' interests to simply pursue scale. As for the state of the company in this turbulent environment, we believe that we are very well positioned to weather continued macro headwinds. Thank you for joining us. are three core restaurant brands, Olive Garden, Longhorn, and Chili's, continue to outperform their peers and grew sales in the most recent quarter by 1%, 6.8%, and 10.1% respectively. The value proposition these restaurant brands offer their customers is tremendous, and they have shown consistent historical growth in many different macroeconomic cycles. Additionally, our mission pet health properties have coverage levels above six times. This is the exact type The portfolio you would want a turbulent backdrop. Third, we have very limited credit loss over our 11-year history. That result isn't an accident. We are aligned with leading operators in our chosen sectors and avoid experience-limiting sectors and over-rented properties. We try to keep it simple by acquiring low-basis, fungible properties in what we believe are economic-resistant sectors. The last point I'd like to touch on is yesterday's announcement of our inaugural share or purchase program. We're going to go into some detail here on how we're thinking about shareholder purchases. One of our long-term mental models is our heat meter and the green, yellow, and red zones. In FCPC's history, there have just been a handful of times of short-lived red zone windows over the last decade. At the spin, during COVID, were the two prominent ones, where shareholder purchases would have made true economic sense. We believe the current landscape presents the best opportunity for SEPT share of purchases since our company was founded. As such, our board has authorized a $100 million share of purchase program, and if conditions meet our thresholds, then we will seek to utilize it. So let me trace the steps of how we think about this, which is influenced by the writing of Michael Mobison on capital allocation. The first decision is whether there are property acquisitions that clearly exceed our cost of capital. Because we're very analytical in assessing the quality of the properties we buy, we can do this step without a quality creep. This is where we have been as a company for a significant majority of our existence, but not today. Perhaps cap rates will follow interest rates with a lag, but as of today, we think external cap rates are generally too low, and in most instances, investment spreads will be thin to negative for the investments that meet our high-quality thresholds we hold ourselves to. We next make sure we are conservatively levered. We want to make sure our balance sheet is in great shape. Pat has done a terrific job here. We have few near-term maturities, a largely fixed rate structure, and we remain within our modest target leverage range. Then we make a determination of whether we believe our stock represents a compelling investment opportunity. By this, I mean the low we believe in our intrinsic value is. In the final check, we compare the risk-adjusted return and Shareware Purchases. FCPT has always been price disciplined in where we issue new shares, and in the exact same vein, we will seek to be very price disciplined when we buy back shares. We will run this analysis every time we repurchase stock in the market to confirm these conditions are met. It is also worth noting that our program does not require us to buy a certain number of shares and allows us to suspend or terminate the program at any time, i.e., we will be valuation sensitive. Given the lack of tenant issues and our strong confidence in the portfolio, we view FCPT's current stock price as a very compelling investment today. I note that it is public that I personally purchased FCP stock recently. This does not affect the theoretical exercise for me. Before handing it back over to Pat, I want to offer sincere gratitude to Josh Zhang for his contributions to FCPT. Josh joined us way and building our platform. Josh will be leaving FCPT in Q4 to take a personal sabbatical before exploring an entrepreneurial opportunity. He remains a big fan of FCPT as we are of him and is another proud member of our alumni base. We wish him the absolute best. I know I speak for myself, Patrick, the rest of the company, the board, when I say it's been a pleasure getting to know him professionally and personally. Wherever he ends up, they'll be extremely lucky to have him. Over to you, Patrick.