FCPT Secures \$200 Million Seven-Year Term Loan Facility to Accelerate Growth

Key Highlights

• New \$200 Million Senior Unsecured Term Loan Facility: Four Corners Property Trust (NYSE: FCPT) has entered into a new seven-year, \$200 million senior unsecured delayed draw term loan facility.
• Initial Draw and Use of Proceeds: \$50 million will be drawn at close to fund immediate investments and general corporate purposes.
• Additional Acquisition Capacity: The remaining \$150 million can be drawn at FCPT’s discretion for future acquisitions, expected to be fully utilized in late Q2 and early Q3 of 2026.
• Attractive Financing Terms: The facility carries a credit margin of 1.25% over SOFR, benefiting from FCPT’s current investment grade ratings (BBB/Baa3 from Fitch/Moody’s).
• Hedging and Stability: With the first \$50 million draw, 96% of FCPT’s total outstanding term loans are hedged, and 98% of its overall debt is fixed rate through November 2027.
• Pro Forma Leverage: Estimated run-rate leverage is approximately 5.4x upon full utilization and deployment of the term loan facility.
• Strong Bank Support: The loan was arranged with a syndicate led by The Huntington National Bank, U.S. Bank, Fifth Third Bank, and Raymond James Bank.

Details for Investors

Four Corners Property Trust (FCPT), a real estate investment trust focused on high-quality, net-leased restaurant and retail properties, has secured a new \$200 million term loan facility with a seven-year maturity date of April 6, 2033. The immediate draw of \$50 million will be used to fund the company’s current investment pipeline and for other general corporate needs. The remaining \$150 million in commitments will be available as a delayed draw, giving FCPT significant flexibility to support upcoming acquisitions at its discretion over the next several quarters.

The financing is structured with a competitive credit margin of 1.25% over SOFR, enabled by the company’s strong investment grade ratings. Management expects the full facility to be drawn and deployed by late Q2 and early Q3 of 2026, supporting a robust growth pipeline. Notably, FCPT’s proactive hedging strategy means that virtually all of its term loans will carry fixed rates, minimizing interest rate risk and enhancing earnings visibility for shareholders.

Pro forma for full deployment, FCPT’s estimated leverage would be approximately 5.4x, which remains within its stated net leverage range of 5.0x–6.0x. This leaves FCPT with additional “dry powder” to support further growth opportunities without breaching its financial policy.

Management Commentary

Patrick Wernig, Chief Financial Officer: “We are very thankful for the continued strong support of our bank partners. The Term Loan Facility provides us with \$200 million of incremental capital priced at highly attractive all-in rates to fund new property investments at accretive spreads of roughly 200+ basis points to historical acquisition yields. Additionally, the delayed draw function will allow us to match our sources and uses at no additional cost.”

Bill Lenehan, Chief Executive Officer: “We believe that FCPT is well positioned to deploy significant capital this year. While this transaction is significant, we note that FCPT still benefits from further dry powder within our stated net leverage range of 5.0x-6.0x.”

Why This Matters for Shareholders

• Growth Catalyst: The facility provides significant, flexible capital for new investments, which can drive earnings and portfolio growth in the near and medium term.
• Attractive Financing: The low margin over SOFR and current investment grade ratings allow FCPT to access capital at favorable rates, supporting shareholder value.
• Reduced Interest Rate Risk: The high percentage of fixed-rate debt provides stability in a potentially volatile interest rate environment.
• Potential Positive Share Price Impact: The combination of growth capital, prudent leverage, and attractive cost of capital could be viewed positively by investors, supporting share price appreciation.

About FCPT

FCPT is a real estate investment trust headquartered in Mill Valley, California, specializing in the ownership, acquisition, and leasing of restaurant and retail properties. The company focuses on growing its portfolio by acquiring additional real estate to lease on a net basis in these industries.

Cautionary Note

This article contains forward-looking statements based on current management expectations and beliefs. Actual results may differ materially due to various risks and uncertainties, including those discussed in FCPT’s most recent annual report on Form 10-K and subsequent SEC filings. Investors are advised to review all risk factors and disclosures before making investment decisions.

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