Four Corners Property Trust: 2Q26 AFFO In Line w/ Street, $0.01 Shy Of JPMe; Debt Activity Helps Capital Costs, 3Q Investments Tracking Ahead

Research evidence excerpt

Four Corners Property Trust: 2Q26 AFFO In Line w/ Street, $0.01 Shy Of JPMe; Debt Activity Helps Capital Costs, 3Q Investments Tracking Ahead

Anthony Paolone, CFA AC North America Equity Research

(1-212) 622-6682 29 July 2026 J P M O R G A N

anthony.paolone@jpmorgan.com

count helped the print by a bit – all variances were well less than $0.01. FCPT’s financial

statements continue to be among the most straightforward in our coverage, which we

think is positive.

• Acquisition volume was in line as it was all announced, and yields were 6.8%. FCPT

reported $57.2 million of investments in 2Q with going-in yields of 6.8% and lease terms

of 10.5 years – good duration, in our view. The acquisitions were already announced, so

there were no surprises in terms of the amount, though yields of 6.8% were slightly lower

than our 7% assumption. FCPT made no dispositions in the quarter, in-line with our

assumption. Acquisition activity post quarter-end is tracking better than expected with

FCPT completing $298.2 million (includes the $268 million veterinary deal which was

already announced and included in our model) compared to our $298 million assumption

for all of 3Q.

• FCPT used delayed draw term loan commitments for acquisitions; all equity settled

in 1Q. The company did not sell any additional shares through its ATM facility during

the quarter. As previously announced, FCPT entered into a new $200 million senior

unsecured delayed draw term loan facility, which is intended to support additional

pipeline acquisitions; out of this, $50 million was drawn in the quarter and the rest was

drawn post quarter-end. We estimate the effective interest rate on the facility to be

approximately 5%, implying spreads of 150-200bps. As previously announced,