Four Corners’ Adjusted Operating Earnings Reach $0.46 per Share, Up 2.9%
Key Facts
Four Corners Property Trust reported results on October 28 for the third quarter and the nine months ended September 30, 2026, posting adjusted funds from operations (AFFO) of $0.46 per diluted share, up 2.9% from the corresponding period in 2025. Funds from operations under the National Association of Real Estate Investment Trusts (NAREIT) definition came to $0.43 per share, up 2.4% year over year, a measure distinct from AFFO. Net income attributable to common shareholders was $28.8 million, the same level as a year earlier, but diluted earnings per share fell to $0.26 from $0.28. According to Investing.com estimates, earnings per share came in $0.03 below analysts’ estimate of $0.29, while revenue topped consensus. The results thus combined growth in adjusted operating metrics with a decline in accounting earnings per share.
Rental revenue rose 13.8% year over year to $75.7 million in the third quarter, including $75.2 million in cash rents and $502,000 in non-cash lease adjustments. The company said it collected rents representing 99.7% of the portfolio’s contractual base rent for the quarter ended September 30. Total revenue was about $83.68 million, according to Investing.com, above the consensus estimate of $82.36 million. The figures show revenue broadening alongside growth in rental income, while collections remained close to the full amount of base rent due. For the first nine months, net income attributable to common shareholders was $89.1 million, compared with $82.9 million in the same period of 2025, while diluted earnings per share remained at $0.81 in both periods.
The company expanded its portfolio during the quarter by acquiring 120 properties for $326.3 million, at an initial weighted average cash yield of 6.6% on rents in place as of September 30, and a 7.1% GAAP accounting yield. The CEO described net acquisitions exceeding $326 million as a company record, saying they were “funded entirely with low-cost debt.” In a separate comment, management said it had extended all leases for its Olive Garden and LongHorn restaurants that expire in 2027, with no landlord concessions. At the end of September, the portfolio comprised 1,456 properties in 48 states, with occupancy of 99.5% by area and an average remaining lease term of about 6.7 years. This reflects debt-funded expansion of a real estate portfolio with high occupancy and long-term leases.
Outstanding debt totaled $1.585 billion on September 30, comprising $960 million in term loans and $625 million in fixed-rate unsecured notes, with no balance drawn on the revolving facility. Net debt to adjusted EBITDA for real estate was 6.0 times at quarter-end. The company estimated available liquidity at about $397 million, including $7 million in cash and equivalents, $40 million in undrawn delayed-draw term loans and $350 million of available capacity under the revolving credit facility. In October, the board authorized a program to repurchase up to $100 million of common stock. The program does not require the company to purchase a specified amount and may be suspended or terminated, giving management an option to return capital to shareholders alongside funding expansion.
The company declared monthly dividends of $0.1265 per share for each of October, November and December, equivalent to $1.5180 per share annually, up 3.5% from the previous quarter. The company had announced in September that it would raise its fourth-quarter dividend by that percentage. Management said it was beginning to see new acquisitions priced at higher cap rates and said it would “continue to adjust capital allocation decisions” to maximize shareholder value. The company’s stock closed at $22.16 on October 27, according to EL7 data, while Investing.com coverage reported a close of $22.03 on October 28. Management was scheduled to hold a conference call and webcast to discuss the results on October 29 at 12 p.m. Eastern time.