8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report: February 22, 2017

(Date of earliest event reported)

FOUR CORNERS PROPERTY TRUST, INC.

(Exact name of registrant as specified in its charter)

Commission File Number: 001-37538

Maryland	47-4456296
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

591 Redwood Highway, Suite 1150, Mill Valley, California 94941

(Address of principal executive offices, including zip code)

(415) 965-8030

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On February 22, 2017 Four Corners Property Trust, Inc. (the “Company”) announced its financial results for the quarter and twelve months ended December 31, 2016. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and a copy of the Company’s Supplemental Financial & Operating Information for the quarter and twelve months ended December 31, 2016, is attached hereto as Exhibit 99.2.

The information in this Item 2.02 and Exhibits 99.1 and 99.2 to this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Exhibit Description
99.1	Press Release dated February 22, 2017
99.2	Supplemental Financial & Operating Information for the Quarter and Twelve Months Ended December 31, 2016

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FOUR CORNERS PROPERTY TRUST, INC.
	By:	/s/ JAMES L. BRAT
		James L. Brat Secretary

Date: February 22, 2017

EXHIBIT LIST

Exhibit No.	Exhibit Description
99.1	Press Release dated February 22, 2017
99.2	Supplemental Financial & Operating Information for the Quarter and Twelve Months Ended December 31, 2016

EX-99.1

Exhibit 99.1

Four Corners Property Trust, Inc. Announces Fourth Quarter 2016 Earnings

MILL VALLEY, CA – February 22, 2017 / Business Wire – Four Corners Property Trust, Inc. (“FCPT” or the “Company”, NYSE: FCPT) announced today its operating results for the quarter and year ended December 31, 2016.

A supplemental financial and operating report that contains non-GAAP measures and other defined terms, along with this press release, has been posted to the investor relations section of the Company’s website at http://investors.fcpt.com/.

Highlights for the Quarter Ended December 31, 2016:

• Net income attributable to common shareholders of $32.5 million, or $0.54 per diluted common share, including a $16.6 million gain on the sale of two properties.

• GAAP rental revenue of $26.9 million, consisting of $24.6 million in cash rents and $2.3 million of straight-line rent adjustments.

• NAREIT-defined Funds from Operations (FFO) of $21.1 million, or $0.35 per diluted common share.

• Adjusted Funds from Operations (AFFO) of $18.8 million, or $0.31 per diluted common share.

• General and administrative (G&A) expenses for the quarter of $2.6 million including $0.4 million of non-cash, stock-based compensation. G&A expenses for the year of $11.0 million including $1.6 million of non-cash, stock-based compensation.

• Declared regular dividend of $0.2425 per common share for the fourth quarter of 2016.

• Acquired 43 restaurant properties with an investment value of $71.1 million, an initial weighted average cash yield of 6.6%, and a weighted average lease term of 17.3 years.

• Disposed of two restaurant properties for a gross sales price of $24.8 million, representing a weighted average capitalization rate of 4.8%.

• At December 31, 2016, FCPT had $445 million of outstanding debt, including $45 million drawn on its $350 million revolving credit facility, and $26.6 million of available cash and cash equivalents.

• On December 5, FCPT established a $150 million At-The-Market (ATM) stock offering program. During December 2016, the Company sold 82,413 shares at a weighted average share price of $20.03, generating net proceeds of $1.63 million.

• Issued 274,744 Operating Partnership units (“OP units”) at $20.13 per unit in connection with an acquisition of restaurant properties.

Management Comments:

“After the initiation of acquisition activity in the second and third quarter, we closed on a significant level of new investments in the fourth quarter consistent with our goal to grow and diversify from our strong initial Darden portfolio. With the initiation of an ATM equity program and the receipt of an investment grade rating of BBB- from Fitch, we also have begun to broaden our access to capital.

As we passed our one-year anniversary as a standalone company, we are pleased with the progress we have made in building out our team and executing on our strategic plan.”

Real Estate Portfolio:

As of December 31, 2016, the Company’s rental portfolio consisted of 475 restaurant properties located in 44 states. The properties are 100% occupied under long-term, triple-net leases with a weighted

average remaining lease term of approximately 13.7 years and an estimated portfolio weighted average EBITDAR to Lease Rent coverage of 4.2x.

Conference Call Information:

Company management will host a conference call and audio webcast on Thursday, February 23, 2017 at 10:00 am Eastern Time to discuss the results.

Interested parties can listen to the call via the following:

Internet: Go to http://dpregister.com/10100203 at least 15 minutes prior to start time of the call in order to register and to download any necessary audio software. Please note for those that register, the dial-in number will be provided upon registration.

Phone: 1-888-346-5243 (domestic) / 1-412-317-5120 (international). Participants not pre- registered must ask to be joined into the Four Corners Property Trust call.

Replay: Available through May 23, 2017 by dialing 1-877-344-7529 (domestic) / 1-412-317- 0088 (international), Access Code 10100203

About FCPT:

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a triple-net basis, for use in the restaurant and related food services industry.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance; and expectations regarding the making of distributions and the payment of dividends. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in

the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and the Company can give no assurance that its expectations or the events described will occur as described. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements.

Factors that could have a material adverse effect on the Company’s operations and future prospects or that could cause actual results to differ materially from the Company’s expectations are included in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 22, 2016.

Notice Regarding Non-GAAP Financial Measures:

In addition to U.S. GAAP financial measures, this press release and the referenced supplemental financial and operating report contain and may refer to certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures and statements of why management believes these measures are useful to investors are included in the supplemental financial and operating report, which can be found in the investor relations section of our website.

Supplemental Materials and Website:

Supplemental materials on the Fourth Quarter 2016 operating results and other information on the company are available on the investors relations section of FCPT’s website at http://investors.fcpt.com/

Four Corners Property Trust

Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended December 31,						Years Ended December 31,
	2016			2015			2016			2015
Revenues:
Rental revenue	$	26,876		$	15,134		$	105,624		$	15,134
Restaurant revenue		4,391			4,319			18,394			18,322
Total revenues		31,267			19,453			124,018			33,456
Operating expenses:
General and administrative		2,546			1,856			10,977			1,856
Depreciation and amortization		5,231			3,153			20,577			3,758
Restaurant expenses		4,253			3,396			17,853			16,996
Interest expense		3,239			2,203			14,828			2,203
Total operating expenses		15,269			10,608			64,235			24,813
Other income		9			—			97			—
Realized gain on sale, net		16,623			—			16,623			—
Income before provision for income taxes		32,630			8,845			76,503			8,643
(Provision for) benefit from income taxes		(108	)		(2,949	)		80,347			(2,944	)
Net income		32,522			5,896			156,850			5,699
Net income attributable to noncontrolling interest		(41	)		—			(41	)		—
Net Income Attributable to Common Shareholders	$	32,481		$	5,896		$	156,809		$	5,699
Basic net income per share	$	0.54		$	0.24		$	2.75		$	0.92
Diluted net income per share	$	0.54		$	0.24		$	2.63		$	0.91
Regular dividends declared per share	$	0.2425		$	—		$	0.9700		$	—
Weighted-average shares outstanding(1):
Basic		59,837,636			24,385,346			56,984,561			6,206,375
Diluted		59,871,465			24,680,656			59,568,067			6,263,921

(1) Weighted average shares outstanding are calculated using the share count throughout 2015. Prior to November 9th, 2015, there were no shares outstanding.

Four Corners Property Trust

Consolidated Balance Sheets

(In thousands, except share data)

	December 31,
	2016			2015
ASSETS
Real estate investments:
Land	$	421,941		$	404,812
Buildings, equipment and improvements		1,055,624			992,418
Total real estate investments		1,477,565			1,397,230
Less: Accumulated depreciation		(583,307	)		(568,539	)
Total real estate investments, net		894,258			828,691
Cash and cash equivalents		26,643			98,073
Deferred rent		11,594			1,500
Derivative assets		837			165
Other assets		3,819			1,008
Total Assets	$	937,151		$	929,437
LIABILITIES AND EQUITY
Liabilities:
Notes payable ($445,000, net of $6,105 and $7,698 of deferred financing costs, respectively)	$	438,895		$	392,302
Dividends payable		14,519			—
Deferred rental revenue		7,974			7,940
Derivative liabilities		—			477
Deferred tax liabilities		196			80,881
Other liabilities		5,450			6,195
Total liabilities		467,034			487,795
Equity:
Preferred stock, $0.0001 par value per share, 25,000,000 shares authorized, zero shares issued and outstanding		—			—
Common stock, $0.0001 par value per share, 500,000,000 shares authorized, 59,923,557 and 42,741,995 shares issued and outstanding at December 31, 2016 and 2015, respectively		6			4
Additional paid-in capital		438,864			436,697
Accumulated other comprehensive gain (loss)		207			(316	)
Noncontrolling interest		5,097			—
Retained earnings		25,943			5,257
Total equity		470,117			441,642
Total Liabilities and Equity	$	937,151		$	929,437

Four Corners Property Trust

FFO and AFFO

(Unaudited)

(In thousands, except share and per share data)

	Three Months Ended December 31, 2016			Year Ended December 31, 2016
Funds from operations (FFO):
Net income attributable to shareholders in accordance with GAAP	$	32,481		$	156,809
Depreciation and amortization		5,231			20,577
Deferred tax benefit from REIT election		—			(80,410	)
Realized gain on sales of real estate		(16,623	)		(16,623	)
FFO (as defined by NAREIT)	$	21,089		$	80,353
Non-cash stock-based compensation		394			1,550
Non-cash amortization of deferred financing costs		398			1,592
Other non-cash interest (income) expense		(749	)		(610	)
Straight-line rent		(2,295	)		(10,095	)
Adjusted funds from operations (AFFO)	$	18,837		$	72,790
Fully diluted shares outstanding		59,871,465			59,568,067
FFO per diluted share	$	0.35		$	1.35
AFFO per diluted share	$	0.31		$	1.22

EX-99.2

Exhibit 99.2

Supplemental Financial & Operating Information

Year Ended – December 31, 2016

Four Corners Property Trust, Inc. (“FCPT” or the “Company”, NYSE: FCPT), headquartered in Mill Valley, CA, is primarily engaged in the acquisition and leasing of restaurant properties. FCPT seeks to grow its portfolio by acquiring additional real estate to lease, on a triple net basis, for use in the restaurant and related food services industry. As of December 31, 2016, FCPT’s leased portfolio consists of 475 restaurant properties located in 44 states. The properties are 100% occupied under long-term, triple net leases with a weighted average remaining lease term of approximately 13.7 years and an estimated portfolio weighted average EBITDAR to Lease Rent coverage of 4.2x.

Table of Contents

Non-GAAP Definitions	3
Consolidated Balance Sheets	5
Consolidated Statements of Operations	6
FFO and AFFO Statement	7
Leased Portfolio Summary	8
Diversification by State	9
Lease Expirations	10

2

Non-GAAP Definitions and Cautionary Note Regarding Forward-Looking Statements:

This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of other REITs and therefore may not be comparable. The non-GAAP measures should not be considered an alternative to net income as an indicator of our performance and should be considered only a supplement to net income, and to cash flows from operating, investing or financing activities as a measure of profitability and/or liquidity, computed in accordance with GAAP.

Funds From Operations (“FFO”) is a supplemental measure of our performance which should be considered along with, but not as an alternative to, net income and cash provided by operating activities as a measure of operating performance and liquidity. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of property and undepreciated land and impairment write-downs of depreciable real estate, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. We also omit the tax impact of non-FFO producing activities from FFO determined in accordance with the NAREIT definition.

Our management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We offer this measure because we recognize that FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. FFO is a non-GAAP measure and should not be considered a measure of liquidity including our ability to pay dividends or make distributions. In addition, our calculations of FFO are not necessarily comparable to FFO as calculated by other REITs that do not use the same definition or implementation guidelines or interpret the standards differently from us. Investors in our securities should not rely on these measures as a substitute for any GAAP measure, including net income.

Adjusted Funds From Operations “AFFO” is a non-GAAP measure that is used as a supplemental operating measure specifically for comparing year over year ability to fund dividend distribution from operating activities. AFFO is used by us as a basis to address our ability to fund our dividend payments. We calculate adjusted funds from operations by adding to or subtracting from FFO:

1. Transaction costs incurred in connection with the acquisition of real estate investments

2. Non-cash stock-based compensation expense

3. Amortization of deferred financing costs

4. Other non-cash interest expense

5. Non-real estate depreciation

6. Merger, restructuring and other related costs

7. Impairment charges

8. Amortization of capitalized leasing costs

9. Straight-line rent revenue adjustment

3

10. Amortization of above and below market leases

11. Debt extinguishment gains and losses

12. Recurring capital expenditures and tenant improvements

AFFO is not intended to represent cash flow from operations for the period, and is only intended to provide an additional measure of performance by adjusting the effect of certain items noted above included in FFO. AFFO is a widely reported measure by other REITs; however, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

EBITDAR represents earnings before interest, taxes, depreciation, amortization and rent. Calculated as EBITDA plus rental expense.

EBITDAR to Lease Rent coverage is calculated by dividing our reporting tenants’ trailing 12-month EBITDAR by annual contractual rent.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance; and expectations regarding the making of distributions and the payment of dividends. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and the Company can give no assurance that its expectations or the events described will occur as described. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements.

Factors that could have a material adverse effect on the Company’s operations and future prospects or that could cause actual results to differ materially from the Company’s expectations are included in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 22, 2016.

4

Consolidating Balance Sheet

December, 31 2016

(Unaudited)

(In thousands)

	Real Estate Operations			Restaurant Operations			Elimination			Consolidated FCPT
ASSETS
Real estate investments:
Land	$	418,880		$	3,061		$	—		$	421,941
Buildings, equipment and improvements		1,042,087			13,537			—			1,055,624
Total real estate investments		1,460,967			16,598			—			1,477,565
Less: accumulated depreciation		(577,392	)		(5,915	)		—			(583,307	)
Total real estate investments, net		883,575			10,683			—			894,258
Cash and cash equivalents		24,412			2,231			—			26,643
Deferred rent		11,594			—			—			11,594
Other assets		4,166			490			—			4,656
Investment in subsidiary		10,953			—			(10,953	)		—
Intercompany receivable		769			—			(769	)		—
Total Assets	$	935,469		$	13,404		$	(11,722	)	$	937,151
LIABILITIES AND EQUITY
Liabilities:
Notes payable, net of deferred financing costs	$	438,895		$	—		$	—		$	438,895
Deferred rental revenue		7,974			—			—			7,974
Deferred tax liability		196			—			—			196
Dividends payable		14,519			—			—			14,519
Other liabilities		3,288			2,162			—			5,450
Intercompany payable		—			769			(769	)		—
Total liabilities		464,872			2,931			(769	)		467,034
Equity:
Preferred stock		—			—			—			—
Common stock		6			—			—			6
Additional paid-in capital		438,864			10,953			(10,953	)		438,864
Accumulated other comprehensive gain		207			—			—			207
Noncontrolling interest		5,097									5,097
Retained earnings		26,423			(480	)		—			25,943
Total equity		470,597			10,473			(10,953	)		470,117
Total Liabilities and Equity	$	935,469		$	13,404		$	(11,722	)	$	937,151

5

Consolidated and Combined Statements of Operations

Three Months and Year Ended December 31, 2016 and 2015

(Unaudited)

(In thousands, except shares and per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2016			2015			2016			2015
Revenues:
Rental revenue	$	26,876		$	15,134		$	105,624		$	15,134
Restaurant revenue		4,391			4,319			18,394			18,322
Total revenues		31,267			19,453			124,018			33,456
Operating expenses:
General and administrative		2,546			1,856			10,977			1,856
Depreciation and amortization		5,231			3,153			20,577			3,758
Restaurant expenses		4,253			3,396			17,853			16,996
Interest expense		3,239			2,203			14,828			2,203
Total operating expenses		15,269			10,608			64,235			24,813
Other income		9			—			97			—
Realized gain on sale, net		16,623			—			16,623			—
Income before provision for income taxes		32,630			8,845			76,503			8,643
(Provision for) benefit from income taxes		(108	)		(2,949	)		80,347			(2,944	)
Net Income	$	32,522		$	5,896		$	156,850		$	5,699
Net income attributable to noncontrolling interest		(41	)		—			(41	)		—
Net Income Available to Common Shareholders	$	32,481		$	5,896		$	156,809		$	5,699
Basic net income per share	$	0.54		$	0.50		$	3.02		$	0.92
Diluted net income per share	$	0.54		$	0.49		$	2.89		$	0.91
Weighted-average shares outstanding:
Basic		59,837,636			24,385,346			56,984,561			6,206,375
Diluted		59,871,465			24,680,656			59,568,067			6,263,921
Regular dividends declared per share	$	0.2425			N/A		$	0.9700			N/A

6

FFO and AFFO Statement

Three Months and Year Ended December 31, 2016

(Unaudited)

(In thousands, except shares and per share data)

	Three Months Ended December 31, 2016			Year Ended December 31, 2016
Funds from operations (FFO):
Net income attributable to shareholders in accordance with GAAP	$	32,481		$	156,809
Depreciation and amortization		5,231			20,577
Deferred tax benefit from REIT election		—			(80,410	)
Realized gain on sales of real estate		(16,623	)		(16,623	)
FFO (as defined by NAREIT)	$	21,089		$	80,353
Non-cash stock-based compensation		394			1,550
Non-cash amortization of deferred financing costs		398			1,592
Other non-cash interest (income) expense		(749	)		(610	)
Straight-line rent		(2,295	)		(10,095	)
Adjusted funds from operations (AFFO)	$	18,837		$	72,790
Fully diluted shares outstanding		59,871,465			59,568,067
FFO per diluted share	$	0.35		$	1.35
AFFO per diluted share	$	0.31		$	1.22

7

Leased Portfolio Summary

Three Months Ended December 31, 2016

Fourth Quarter 2016	Properties	Number of Four Corners Properties			Total Square Feet (000s)			Annual Cash Base Rent -2017 ($000s)			Percentage of Total Annualized Base Rent (2017)			Avg. Rent Per Square Foot ($)			EBITDAR Coverage(1)			Lease Term Before Renewals (Yrs)(2)
Existing properties
	Olive Garden		300			2,565		$	71,226			70.6	%	$	28			4.4x			13.8
	LongHorn Steakhouse		104			579			19,229			19.0	%		33			3.9x			12.7
	Other Brands - Darden		14			143			5,568			5.5	%		39			3.6x			11.6
	Other Brands-non -  Darden		16			54			1,558			1.5	%		29			2.7x			15.9
Properties acquired in Q4 2016(3)
	8 Transactions		43			130			4,572			4.6	%		35			2.9x			17.3
Properties sold
	Olive Garden		(1	)		(9	)		(300	)		(0.3	%)		(33	)		(4.7x	)		(16.8	)
	Bahama Breeze		(1	)		(17	)		(880	)		(0.9	%)		(52	)		(5.0x	)		(12.8	)
Lease terminations
	No terminations in Q4 2016		—			—			—			—			—			—			—
	Total/Weighted Avg.		475			3,445		$	100,973			100.0	%	$	29			4.2x			13.7

(1) EBITDAR Coverage is calculated by dividing our tenants estimated trailing 12-month EBITDAR by annual contractual cash rent paid to FCPT. EBITDAR is defined as earnings before interest, income taxes, depreciation, amortization, and rent. EBITDAR is derived from the most recent data from tenants who disclose this information, representing approximately 98% of our run-rate rental income. FCPT does not independently verify financial information provided by its tenants.

(2) Lease term weighted by cash base rent.

(3) FCPT acquired 43 properties in Q4 2016 consisting of the following brands: KFC (16), Burger King (10), Hardee’s (4), Arby’s (4), Wendy’s (2), Steak N’ Shake (2), Taco Bell (1), Dairy Queen (1), Denny’s (1), Fazoli’s (1), Zaxby’s (1)

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Leased Portfolio Diversification by State

As of December 31, 2016

State	# of Properties	% of Annual Base Rent
FL	45	11.8%
TX	43	10.8%
GA	44	8.4%
OH	33	6.4%
MI	25	4.1%
IN	24	3.4%
TN	18	3.3%
NC	17	3.2%
CA	10	3.2%
PA	13	3.0%
IL	17	2.7%
VA	14	2.6%
WI	16	2.4%
NY	9	2.2%
MD	10	2.2%
KY	10	2.0%
AL	11	2.0%
IA	10	1.9%
SC	8	1.9%
AZ	8	1.8%
NV	6	1.8%
MN	8	1.7%
OK	7	1.5%
CO	7	1.5%
MS	7	1.4%
AR	7	1.3%
KS	5	1.3%
LA	6	1.3%
WV	5	1.2%
MO	6	1.1%
14 States	26	6.3%
Total	475	100.0%

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Lease Expirations

As of December 31, 2016

Leases Expiring In	Number of Properties		Expiring 2017 Base Rent ($ in thousands)		Total Square Footage (in thousands)		Percent of Total Expiring Annual Rent
2017		1		53		3		0.1	%
2018		—		—		—		—
2019		—		—		—		—
2020		1		59		4		0.1	%
2021		1		86		2		0.1	%
2022		—		—		—		0.0	%
2023		2		207		5		0.2	%
2024		—		—		—		—
2025		—		—		—		—
2026		2		234		7		0.2	%
2027		71		15,920		520		15.8	%
2028		74		16,741		539		16.6	%
2029		68		15,103		520		15.0	%
2030		67		14,667		518		14.5	%
2031		59		13,385		477		13.3	%
2032		43		10,081		357		10.0	%
2033		42		10,002		365		9.9	%
2034		4		510		13		0.5	%
2035		1		173		3		0.2	%
2036		39		3,752		112		3.7	%
Vacant		—		—		—		—
Total		475	$	100,973		3,431		100.0	%

10