Four Corners Property Trust (NYSE: FCPT) is the restaurant landlord of the net lease sector, spun off from Darden Restaurants in 2015 with a portfolio anchored by Olive Garden and LongHorn Steakhouse. The story of the last decade is a deliberate march away from that concentration into auto service and medical retail, funded by some of the most disciplined small-deal underwriting in the group.
| Four Corners Property Trust (FCPT) Snapshot | |
|---|---|
| Share Price (delayed) | $24.96 +1.01% |
| Market Cap | $2.7B |
| Annualized Dividend | $1.46 (Quarterly) |
| Dividend Yield | 5.83% |
| Credit Rating | BBB- (S&P) |
| Sector | Net Lease ยท Restaurant Net Lease |
Market data updates automatically several times daily. Last price refresh: Jul 12, 2026.
Portfolio and Business Model
FCPT collected 99.7% of contractual base rent in Q1 2026, continuing an essentially unbroken record of near-perfect collections outside the pandemic. The average deal is tiny and deliberate: Q1 acquisitions totaled $26.2 million across ten properties at a 6.8% cash yield, and year-to-date through June, 17 properties at a $3.1 million average basis, split across auto service, medical retail, and restaurants. Low-basis, fungible corner real estate is the thesis: if a tenant leaves, the building re-leases.
Dividend Safety Analysis
The dividend is covered in the low-80s percent of AFFO with steady, unspectacular growth, backed by $380 million of liquidity and a new $200 million term loan priced to fund acquisitions at a 200+ basis point spread. Consensus 2026 AFFO growth of about 3.3% makes this a coupon-plus-a-little story, not a compounder.
The Honest Risk Section
Two watch items. Concentration: top-ten tenants are 62% of rent, the highest in the peer group, with Darden brands still the dominant credit; casual dining traffic is the single variable that matters most here. Leverage drift: the April 2026 term loan moved net debt to EBITDAre to roughly 5.4x, near the top of its historical range, and FCPT sits at BBB-, the investment-grade floor, where rating headroom is thin. The 6.9-year weighted average lease term is also the shortest in the group, which cuts both ways: faster mark-to-market, less certainty.
Peer Context
FCPT is the anti-W. P. Carey: domestic, single-sector-rooted, small-deal, short-lease. Its closest philosophical cousin is NNN REIT, but with corporate Darden credit instead of regional franchisees. Restaurant properties are also one of the most actively traded categories in direct NNN ownership, where buyers can pick individual rated tenants rather than a basket.
Frequently Asked Questions
What percentage of FCPT’s rent comes from Darden?
Darden brands remain the largest exposure within a top-ten tenant concentration of 62% of rent, the highest concentration among major net lease REITs, though management has diversified steadily into auto service and medical retail since the 2015 spinoff.
Is FCPT investment grade?
Yes, at BBB-, the investment-grade floor. Leverage around 5.4x after the April 2026 term loan is the metric to watch for rating pressure.
Is Four Corners’ dividend safe?
Coverage is solid and collections run near 100%, but the margin of safety is thinner than peers: watch casual dining same-store sales and the AFFO payout trend as the two leading indicators.
Analysis based on Q1 2026 results and June 2026 company disclosures. Live market data updates automatically. Independent research, not investment advice.
Why buy the REIT when you can own the asset?
Net lease REITs typically yield 4.5% to 6.5%. Direct ownership of a single-tenant NNN property leased to the same investment-grade tenants historically trades at 6% to 7.5% cap rates, plus depreciation benefits and 1031 exchange eligibility that REIT shareholders never receive.
Compare Direct NNN Ownership