Four Corners Sets $100 Million Buyback After Record Quarter

The Tip Desk · November 8, 2026 · 4 min read

The net-lease REIT bought 120 properties for $326.3 million in the third quarter, a record, and authorized its first share-repurchase program.

Four Corners Property Trust (FCPT) acquired 120 net-lease properties for a combined $326.3 million in the third quarter, a record for the restaurant-and-retail REIT, and authorized its first share-repurchase program of up to $100 million.

Chief Executive Officer Bill Lenehan said the volume was funded entirely with low-cost debt and that, at the current share price, the company views share repurchases as delivering more value than property purchases. The board’s authorization does not obligate FCPT to buy any particular amount of stock; the program may be suspended or discontinued at the company’s discretion. The company sold no common shares through its at-the-market program in the third quarter and none year-to-date through October 28.

Rental revenue rose 13.8% from a year earlier to $75.7 million, faster than the 8.0% increase in the second quarter and the 10.0% increase in the first quarter. The quarter’s rental revenue consisted of $75.2 million in cash rents and $502 thousand of combined straight-line and other non-cash rent adjustments. Total revenues were $83.7 million, including $8.0 million of restaurant revenue.

Net income attributable to common shareholders was $28.8 million, or $0.26 a diluted share, versus $28.8 million, or $0.28 a share, a year earlier; diluted earnings per share declined as the share count rose. Adjusted funds from operations were $0.46 a diluted share, up 2.9% from the year-ago quarter. NAREIT-defined FFO was $0.43 a diluted share. Interest expense was $17.4 million.

The 120 properties were purchased at an initial weighted average cash yield of 6.6% on rents in place as of September 30, or a 7.1% GAAP yield, with a weighted average remaining lease term of 9.6 years. By purchase price, the assets were approximately 87% medical retail, 5% casual dining and quick service restaurants, 5% auto, and 4% other retail. FCPT sold no properties in the quarter. Lenehan said the company has started to see new acquisitions being priced at higher cap rates.

The rental portfolio stood at 1,456 properties in 48 states as of September 30, 99.5% occupied by square feet, with a weighted average remaining lease term of about 6.7 years, up from 1,336 properties at June 30. Rent collection was 99.7% of contractual base rent for the quarter.

On July 28, FCPT amended its revolving credit and term loan agreement, increasing overall facility size from $940 million to $1.15 billion and adding a $400 million term loan that matures in August 2031. At closing, $190 million of that loan paid down facilities maturing in November 2026 and February 2027; $210 million was expected to fund investments. As of September 30, $40 million of the term loan remained undrawn and was expected to be drawn by the end of the fourth quarter. Lenders also agreed to tighter spreads on the $800 million of term loans in the facility and to extend Tranche A-5 to March 2028, with an additional one-year extension option.

Outstanding debt was $1,585 million at quarter-end, consisting of $960 million of term loans and $625 million of unsecured fixed-rate notes, with no revolver balance. Leverage was 6.0 times net debt to adjusted EBITDAre. Available liquidity was about $397 million, including $7 million of cash, $40 million of undrawn delayed-draw term loans and $350 million of revolver capacity.

FCPT declared monthly dividends of $0.1265 a share for October, November and December, equivalent to $1.5180 a share per annum, a 3.5% increase from the prior quarter’s $0.1222 monthly rate. General and administrative expense was $6.9 million, including $2.1 million of stock-based compensation. Cash G&A was $4.7 million, or 6.3% of cash rental income.

Lenehan said the company recently extended 100% of Olive Garden and LongHorn leases maturing in 2027 without landlord concessions and remains focused on accretive capital allocation, with plans to continue modulating those decisions to maximize shareholder value.