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Fitch Affirms Stable Outlook for Four Corners Property Trust

Fitch Ratings has affirmed net lease retail REIT Four Corners Property Trust’s (FCPT) Long-Term Issuer Default Rating (IDR) at BBB-, and Four Corners Operating Partnership, L.P.’s Long-Term IDR and underlying issuances outstanding at BBB-. The rating outlook for the long-term ratings is stable.

The affirmations and stable outlook reflect the rating agency’s expectations that FCPT will sustain metrics appropriate for the rating. These include leverage below 6.5x and an unencumbered asset/unsecured debt ratio at or above 2.0x, along with the expectation that the REIT will maintain stable operating performance over the long term. 

FCPT, whose properties are mainly in the restaurant sector, collected 99.7% of its rents during 2020 and didn’t receive any requests for deferrals last quarter. Accordingly, Fitch expects rent collections to maintain above 99% over the course of 2021.

Furthermore, Fitch said it expects FCPT’s exposure to Darden Restaurants—the REIT was spun off from Darden in 2015—to decrease from 66% to the mid-50% range as it continues to acquire an “outsized proportion of non-restaurant properties,” including banks, medical retail and auto repair and supply shops.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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