Four Corners Property Trust, Inc.
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.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueFreestanding restaurant and retail properties leased on a net basis, where tenants pay most operating costs.
New property purchases and ground leasehold interests added to expand and diversify the portfolio.
Seven LongHorn Steakhouse restaurants operated in the San Antonio area through the Kerrow business.
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.
National and regional restaurant operators leasing properties for dine-in and drive-to locations; they value long-term occupancy and fixed-site economics.
Retail operators leasing freestanding properties in major U.S. markets to support customer traffic and brand visibility.
The Kerrow business operates seven LongHorn Steakhouse restaurants under franchise agreements with Darden.
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.
Adds rent-producing assets and broadens the tenant and property mix.
Reduces dependence on Darden-linked exposure and improves portfolio resilience.
Supports acquisitions and liquidity while managing interest-rate exposure.
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.
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 riskImpact: HighLikelihood: Medium
FCPT depends on tenants to pay rent and fulfill lease obligations under net leases.
Exposure - Concentration in Olive Garden and Darden-related propertiesImpact: HighLikelihood: Medium
A significant portion of restaurant properties are Olive Garden properties, increasing brand-specific exposure.
Exposure: Property brand concentration
- Real estate valuation and occupancy riskImpact: MediumLikelihood: Medium
Property values and lease renewals can weaken if tenant demand or local market conditions deteriorate.
Exposure: Freestanding restaurant and retail real estate
- Interest-rate and financing riskImpact: MediumLikelihood: Medium
Acquisitions and refinancing depend on debt markets, and higher rates can pressure returns.
Exposure - Public health and consumer demand shocksImpact: MediumLikelihood: Medium
Restaurant traffic and tenant cash flows can weaken during epidemics or other disruptions.
Exposure: Restaurant operations and tenant base
Accounting
Judgemental itemsRental income is recognized on a straight-line basis, which smooths lease revenue over time and affects comparability.
Impact: Can shift revenue between periods relative to cash rent received
Reimbursed costs are recorded in rental revenue and property expense, affecting gross presentation and margin interpretation.
Impact: Can inflate both revenue and expenses without changing net economics materially
Management estimates fair values and useful lives of properties, which affects depreciation and impairment testing.
Impact: Changes can materially affect earnings and asset carrying values
FCPT uses swaps to hedge variable-rate debt and future debt issuance, creating derivative valuation and OCI impacts.
Impact: Can introduce mark-to-market volatility and hedge effectiveness considerations
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Last updated: 24/09/2026