# Four Corners Property Trust, Inc. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Four Corners Property Trust, Inc.). ## Overview Four Corners Property Trust, Inc. is a U.S.-based REIT that owns, acquires, and leases freestanding restaurant and retail properties, primarily under net lease structures. It also operates a small restaurant business through the Kerrow Restaurant Operating Business, which is tied to franchise agreements with Darden Restaurants. ## Products & services • Net-leased restaurant properties • Net-leased retail properties • Property acquisition and portfolio recycling • Ground leasehold interests • Kerrow Restaurant Operating Business • Franchise-based restaurant operations - **Net lease real estate** (90%) — Freestanding restaurant and retail properties leased on a net basis, where tenants pay most operating costs. - **Property acquisitions** (8%) — New property purchases and ground leasehold interests added to expand and diversify the portfolio. - **Restaurant operations** (2%) — Seven LongHorn Steakhouse restaurants operated in the San Antonio area through the Kerrow business. - Net-leased restaurant properties - Net-leased retail properties - Property acquisition and portfolio recycling - Ground leasehold interests - Kerrow Restaurant Operating Business - Franchise-based restaurant operations ## Customers FCPT’s core customers are restaurant and retail tenants that lease properties for use in their operations, especially creditworthy national and regional concepts. The company also has a small direct customer base through its operated LongHorn Steakhouse restaurants, where end consumers drive sales but the business is managed under franchise agreements. - **Restaurant tenants** (primary) — National and regional restaurant operators leasing properties for dine-in and drive-to locations; they value long-term occupancy and fixed-site economics. - **Retail tenants** (secondary) — Retail operators leasing freestanding properties in major U.S. markets to support customer traffic and brand visibility. - **Darden-related restaurant operations** (secondary) — The Kerrow business operates seven LongHorn Steakhouse restaurants under franchise agreements with Darden. - Restaurant chains leasing freestanding sites for customer-facing locations - Retail tenants seeking well-located, income-producing properties - Creditworthy operators that value long lease terms and predictable occupancy - Darden-linked franchise operations for the Kerrow restaurant business - End consumers at LongHorn Steakhouse locations in San Antonio ## Geography FCPT’s portfolio is concentrated in the United States, with 1,303 free-standing properties across 48 states as of year-end 2025. The company targets major U.S. markets, and its restaurant operations are concentrated in the San Antonio, Texas area, creating some local operating exposure despite broad national real estate diversification. - **United States** (100%) — All disclosed properties and restaurant operations are in the U.S. - Properties are located across 48 U.S. states - Portfolio is built around major U.S. markets - Restaurant operations are concentrated in San Antonio, Texas - U.S. geography reduces cross-border complexity - Local concentration can affect restaurant traffic and costs ## Strategy FCPT’s strategy is to grow and diversify its portfolio by acquiring additional restaurant and retail properties while maintaining a high-quality tenant base. Management also uses asset sales and redeployment, along with debt and equity financing, to fund acquisitions and preserve balance-sheet flexibility. - **Portfolio growth through acquisitions** (short-term) — Adds rent-producing assets and broadens the tenant and property mix. - **Tenant and brand diversification** (medium-term) — Reduces dependence on Darden-linked exposure and improves portfolio resilience. - **Capital structure flexibility** (short-term) — Supports acquisitions and liquidity while managing interest-rate exposure. - Acquire additional restaurant and retail properties - Diversify away from reliance on Darden over time - Target durable concepts with creditworthy tenants - Favor properties with rent supported by operator profitability - Use revolver and equity to fund growth - Recycle capital through selective asset sales ## Risks FCPT is exposed to tenant credit risk, especially where rent depends on restaurant operators and Darden-related relationships. Its portfolio is also sensitive to real estate values, interest rates, geographic concentration, and consumer demand in the restaurant industry, which can affect occupancy, rent collection, and acquisition returns. - **Tenant credit and lease default risk** [high] — FCPT depends on tenants to pay rent and fulfill lease obligations under net leases. - **Concentration in Olive Garden and Darden-related properties** [high] — A significant portion of restaurant properties are Olive Garden properties, increasing brand-specific exposure. - **Real estate valuation and occupancy risk** [medium] — Property values and lease renewals can weaken if tenant demand or local market conditions deteriorate. - **Interest-rate and financing risk** [medium] — Acquisitions and refinancing depend on debt markets, and higher rates can pressure returns. - **Public health and consumer demand shocks** [medium] — Restaurant traffic and tenant cash flows can weaken during epidemics or other disruptions. - Tenant distress can reduce rent collections and renewal rates - Darden and branded-restaurant concentration increases counterparty risk - Real estate values can fall with market or local property weakness - Interest-rate changes affect financing costs and acquisition economics - Restaurant demand is sensitive to consumer spending and public health shocks - Geographic concentration can amplify local market disruptions ## Accounting FCPT’s reported results are shaped by straight-line rent recognition, variable lease revenue, and estimates around property fair values and useful lives. The company also uses derivative accounting for interest rate swaps, while the restaurant business introduces separate tax and operating line items that can create quarter-to-quarter noise. - **Straight-line rent recognition** — Can shift revenue between periods relative to cash rent received - **Variable lease revenue and property expenses** — Can inflate both revenue and expenses without changing net economics materially - **Real estate depreciation and impairment estimates** — Changes can materially affect earnings and asset carrying values - **Interest rate swap accounting** — Can introduce mark-to-market volatility and hedge effectiveness considerations - Straight-line rent affects timing of rental revenue recognition - Variable lease revenue can move with reimbursed property costs - Property fair values and useful lives affect depreciation and impairment - Interest rate swaps create hedge accounting and fair value impacts - Restaurant operations add separate tax and expense volatility --- *Last updated: 2026-04-28T20:08:49.815785+00:00*