Four Corners Property Trust, Inc. (NYSE:FCPT) Q2 2024 Earnings Call August 1, 2024 11:00 AM ET
Company Participants
Patrick Wernig - Manager, Investor Relations
Bill Lenehan - Chief Executive Officer
Josh Zhang - Director, Acquisitions
Conference Call Participants
Anthony Paolone - JPMorgan
John Kilichowski - Wells Fargo
Jim Kammert - Evercore
RJ Milligan - Raymond James
Mitch Germain - Citizens JMP
Operator
Good morning, all and thank you for joining us for the FCPT Second Quarter 2024 Financial Results Conference Call. My name is Carly, and I’ll be the call coordinator for today. [Operator Instructions] I’ll now hand over to Patrick Wernig to begin. Please go ahead.
Patrick Wernig
Thank you, Carly. During the course of this call, we will make forward-looking statements, which are based on our beliefs and assumptions. Actual results will be affected by known and unknown factors that are beyond our control or ability to predict. Our assumptions are not a guarantee of future performance and some will prove to be incorrect. For a more detailed description of some potential risks, please refer to our SEC filings, which can be found at fcpt.com. All the information presented on this call is current as of today, August 1, 2024. In addition, reconciliation to non-GAAP financial measures presented on this call, such as FFO and AFFO, can be found in the company’s supplemental report.
With that, I will turn the call over to Bill.
Bill Lenehan
Good morning. Thank you for joining us to discuss our second quarter results. I will make introductory remarks. Josh will comment further on the investment market, and Patrick will discuss our financial results and capital position.
We reported second quarter AFFO of $0.43 per share, which is up $0.01 or 2.4% from Q2 last year. Our existing portfolio continues to perform very well with higher rent collections and occupancy. Our EBITDAR to rent coverage in the second quarter was 4.9x for the majority of our portfolio that reports this figure. This remains amongst the strongest coverage within the industry.
As an update on the restaurant industry performance, we are seeing overall positive performance. According to Baird Research, year-over-year sales for the restaurant sector as a whole improved in the second quarter in the 5% range after 2% results in the first quarter. Similar to last quarter, casual dining saw small, but improving declines of strong levels from the prior year. We note this broad view on the industry includes local restaurants and small regional chains. FCPT’s casual dining operators are national brands and sector leaders that generally outperform the industry.