Financial Analysis

NOTE 12 COMMITMENTS AND CONTINGENCIES Litigation We are subject to private lawsuits, administrative proceedings and claims that arise in the ordinary course of our business. A number of these lawsuits, proceedings and claims may exist at any given time. These matters typically involve claims from guests, employee wage and hour claims and others related to operational issues common to the restaurant industry. We record our best estimate of a loss when the loss is considered probable. When a liability is probable and there is a range of estimated loss with no best estimate in the range, we record the minimum estimated liability related to the lawsuits, proceedings or claims. While the resolution of a lawsuit, proceeding or claim may have an impact on our financial results for the period in which it is resolved, we believe that the maximum liability related to probable lawsuits, proceedings and claims in which we are currently involved, individually and in the aggregate, will not have a material adverse effect on our financial position, results of operations or liquidity. …

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"NOTE 6 DEBT, NET OF DEFERRE D FINANCING COSTS At both June 30, 2026 and December 31, 2025, our debt consisted of (1) $ 640 million of non-amortizing term loans and (2) $ 625 million of senior, unsecured, fixed rate notes. At June 30, 2026 and December 31, 2025 , respectively, we had no outstanding borrowings under the revolving credit facility, and there were no outstanding letters of credit. At June 30, 2026, we had $ 350 million of borrowing capacity under the revolving credit facility. The revolving credit facility will mature on February 1, 2029 with two six-month extension options. The weighted average interest rate on the term loans before consideration of the interest rate hedge described in Note 7 - Derivative Financial Instruments was 4.6 % and 4.7 % at June 30, 2026 and December 31, 2025, respectively. Revolving Credit and Term Loan Agreement and Term Loan Facility On January 31, 2025, the Company and its subsidiary, FCPT OP, entered into a Fourth Amended and Restated Revolving Credit and Term Loan Agreement with a group of existing lenders (the 2025 Credit Agreement). On August 19, 2025, the Company entered into Amendment No. 1 to the 2025 Credit Agreement which removed the credit spread adjustment applicable to the revolving credit and term loan agreement. Pursuant to the amendment, as of June 30, 2026, term loans under the 2025 Credit Agreement accrued interest at a per annum rate equal to a SOFR rate plus a margin of 0.95 % to 1.00 %, and the revolver accrued i …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 STOCK-BASED COMPENSATION On June 10, 2022, the Board of Directors of FCPT adopted, and FCPTs stockholders approved, the Amended and Restated Four Corners Property Trust , Inc. 2015 Omnibus Incentive Plan (as amended, the Amended Plan) to, among other things, increase the maximum number of shares of our common stock reserved for issuance under the Amended Plan by 1,500,000 shares to 3,600,000 shares. At June 30, 2026 , 794,386 shares of common stock were available for award under the Amended Plan. The unamortized compensation cost of awards issued under the Plan totaled approximately $ 14.0 million at June 30, 2026 as shown in the following table. Equity Compensation Costs by Award Type (In thousands) Restricted Stock Units Restricted Stock Awards Performance Stock Awards Total Unrecognized compensation cost at December 31, 2025 $ 2,249 $ 3,166 $ 2,996 $ 8,411 Equity grants 1,996 4,063 3,055 9,114 Equity grant forfeitures Change in expense from performance multiplier 1,499 1,499 Equity compensation expense ( 1,054 ) ( 2,134 ) ( 1,880 ) ( 5,068 ) Unrecognized Compensation Cost at June 30, 2026 $ 3,191 $ 5,095 $ 5,670 $ 13,956 At June 30, 2026, the weighted average amortization period remaining for all of our equity aw ards was 1.8 years. Restricted Stock Units RSUs have been granted at a value equal to the five-day average or day of closing market price of our common stock on the date of grant, and will be settled in stock at the end of their vesting periods, which rang …

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NOTE 11 FAIR VALUE MEASUREMENTS The carrying amounts of certain of the Companys financial instruments including cash equivalents, accounts receivable, accounts payable, accrued liabilities, and derivative financial instruments approximate fair value due either to length of maturity or interest rates that approximate prevailing market rates. The carrying value of derivative financial instruments equals fair value in accordance with U.S. GAAP. Determining which category an asset or liability falls within the hierarchy requires significant judgment. We evaluate hierarchy disclosures each reporting period. T he following table presents the assets and liabilities recorded that are reported at fair value on our Consolidated Balance Sheets on a recurring basis. Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis June 30, 2026 (In thousands) Level 1 Level 2 Level 3 Total Assets Derivative assets $ $ 15,302 $ $ 15,302 Liabilities Derivative liabilities $ $ 446 $ $ 446 December 31, 2025 (In thousands) Level 1 Level 2 Level 3 Total Assets Derivative assets $ $ 9,385 $ $ 9,385 Liabilities Derivative liabilities $ $ 5,055 $ $ 5,055 Derivative Financial Instruments Currently, we use interest rate swaps to manage our interest rate risk associated with our notes payable. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis refl …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 5 LEASES Operating Leases as Lessee As a lessee, we record right-of-use assets and lease lia bilities for the two ground leases at our Kerrow Restaurant Operating Business and our corporate office space. The two ground leases have extension options, which we believe will be exercised and are included in the calculation of our lease liabilities and right-of-use assets. In calculating the lease obligations under both the ground leases and office lease, we used discount rates estimated to be equal to what the Company would have to pay to borrow on a collateralized basis over a similar term, for an amount equal to the lease payments, in a similar economic environment. Operating Lease Liability Maturities of operating lease liabilities were as follows: (In thousands) June 30, 2026 (Six months) $ 368 2027 743 2028 755 2029 768 2030 626 Thereafter 3,794 Total Payments 7,054 Less: Interest ( 1,659 ) Operating Lease Liability $ 5,395 The weighted-average discount rate for operating leases at June 30, 2026 was 4.7 % . The weighted-average remaining lease term was 12.1 years. Rental expense was $ 0.2 million for both the three months ended June 30, 2026 and 2025. Rental expense was $ 0.5 million for both the six months ended June 30, 2026 and 2025. Operating Leases as Lessor Our leases consist primarily of single-tenant, net leases, in which the tenants are responsible for making payments to third parties for operating expenses such as property taxes, insurance, and other costs ass …

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"Application of New Accounting Standards We consider the applicability and impact of all ASUs issued by the FASB. Other than as disclosed below, ASUs not yet adopted were assessed and determined to be either not applicable or are expected to have minimal impact to our consolidated results of operations, financial position and cash flows. In November 2024, the FASB issued ASU 2024-03, ""Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures"", which requires, among other things, the following for public business entities: (i) tabular disclosure of amounts for the following categories that are included in each expense caption within continuing operations on the statement of operations, with each expense caption that includes one of these expense categories deemed a relevant expense caption: (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization and (e) depreciation, depletion, and amortization recognized as part of oil-and gas-producing activities; (ii) disclosure of certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements; (iii) qualitative description of the amount remaining in relevant expense captions that are not separately disaggregated quantitatively; and (iv) disclosure of the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. The FASB released A …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"NOTE 13 SEGMENTS During the three and six months ended June 30, 2026 and 2025 , we operated in two segments: real estate operations and restaurant operations. In our real estate operations, we lease properties to tenants through net lease arrangements under which the tenants are primarily responsible for ongoing costs relating to the properties, including utilities, property taxes, insurance, common area maintenance charges, and maintenance and repair costs. In our restaurant operations, we operate seven LongHorn Steakhouse restaurants located in the San Antonio, Texas area. Our chief operating decision maker evaluates performance of the real estate operations based on Adjusted Funds from Operations (AFFO) and evaluates performance of the restaurant operations based on Earnings Before Interest, Taxes, Depreciation, and Amortization (""EBITDA"") in order to determine how to allocate resources to these segments. We define AFFO as total real estate operations segment revenues, less total segment operating expenses. We define EBITDA as total restaurant operations segment revenues less total segment operating expenses. We consider these respective measures useful because they allow investors, analysts and our management to measure our year-over-year ability to fund dividend distribution from operating activities. In order to facilitate a clear understanding of our historical consolidated operating results, AFFO and EBITDA should be examined in conjunction with net income as prese …

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"NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements (the Consolidated Financial Statements) include the accounts of Four Corners Property Trust, Inc. and its consolidated subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Consolidated Financial Statements reflect all adjustments which are, in the opinion of management, necessary to a fair presentation of the results for the interim periods presented. These adjustments are considered to be of a normal, recurring nature. Segment Reporting The Company has two operating segments, real estate operations and restaurant operations. The Company has identified its real estate operations and restaurant operations as separate reportable segments based on the nature of the operations and its organizational and management structure, which aligns with how results are monitored and performance is assessed. This is consistent with how the Companys chief operating decision maker, which is its Chief Executive Officer , makes decisions when assessing the financial performance of the Companys portfolio of properties and restaurant operations. Use of Estimates The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of t …

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"NOTE 9 EQUITY Preferred Stock At June 30, 2026 and December 31, 2025, the Company was authorized to issue 25,000,000 shares, $ 0.0001 par value per share of preferred stock. There were no shares issued and outstanding at June 30, 2026 and December 31, 2025. Common Stock At June 30, 2026 and December 31, 2025 , the Company was authorized to issue 500,000,000 shares, $ 0.0001 par value per share of common stock. At June 30, 2026, there were 109,756,406 shares of the Company's common stock issued and outstanding. The following table presents the dividends declared per share of our common stock during the six months ended June 30, 2026. Declaration Date Declared Amount Record Date Payment Date March 5, 2026 $ 0.3665 March 31, 2026 April 15, 2026 June 8, 2026 $ 0.3665 June 30, 2026 July 15, 2026 June 8, 2026 $ 0.1222 July 31, 2026 August 17, 2026 June 8, 2026 $ 0.1222 August 31, 2026 September 15, 2026 June 8, 2026 $ 0.1222 September 30, 2026 October 15, 2026 Common Stock Issuance Under the At-The-Market Program On October 30, 2025, the Company entered into a new ATM program (the ""ATM program""), pursuant to which shares of the Companys common stock having an aggregate gross sales price of up to $ 500.0 million may be offered and sold (1) by the Company to, or through, a consortium of banks acting as its sales agents or (2) by a consortium of banks acting as forward sellers on behalf of any forward purchasers contemplated thereunder, in each case by means of ordinary brokers tra …

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NOTE 14 SUBSEQUENT EVENTS The Company reviewed its subsequent events and transactions that have occurred after June 30, 2026, the date of the Consolidated Balance Sheet, through July 30, 2026, and noted the following: Capital Resources On July 14, 2026, the Company borrowed the remaining $ 150 million of the $ 200 million senior unsecured delayed draw term loan commitments under the Term Loan Facility. On July 28, 2026, the Company and FCPT OP entered into a Fifth Amended and Restated Revolving Credit and Term Loan Agreement with a group of existing and new lenders (the 2026 Credit Agreement), which amends and restates in its entirety the 2025 Credit Agreement. The 2026 Credit Agreement increases the overall size of the credit facilities from $ 940 million under the 2025 Credit Agreement to $ 1.15 billion. The 2026 Credit Agreement provides for a senior unsecured revolving credit facility in an aggregate principal amount of $ 350.0 million with a maturity date of February 1, 2029 , and a senior unsecured term loan facility in an aggregate principal amount of $800 .0 million (the 2026 Term Loan Facility), comprised of (i) a $ 90.0 million term loan tranche with a maturity date of February 1, 2028 , (ii) a $ 85.0 million term loan tranche with a maturity date of March 14, 2028 , (iii) a $ 225.0 million term loan tranche with a maturity date of February 1, 2029 , and (iv) a $ 400.0 million term loan tranche with a maturity date of August 1, 2031 , of which $ 360.0 million was dr …

SubsequentEventsTextBlock · excerpt; the full note is in the filing