Activism, REITs, capital allocation and Four Corners Property Trust with Bill Lenehan | S06 E46

Bullish:

• $FCPT - Four Corners Property Trust (FCPT) is a strong investment due to its diverse portfolio of over 1,200 properties, including well-known restaurant chains and other commercial real estate. The company demonstrated resilience during COVID-19 with high rent collection rates, and focuses on suburban/rural net lease retail properties, avoiding urban areas and properties with shared access.

  • “We own 1200 or so buildings in almost all the states. Are we own 300 Olive Gardens, that we, lease back to, Darden, the parent company of Olive Garden. But we own Longhorn Steakhouses, Outback Steakhouses, Chili's, tire stores, medical retail, a lot of buildings that are all sort of between $2,010,000,000 in value.”

    Bill·1:23

  • “We collected like 99.9 percent of our rent by June. But our stock price certainly seesawed pretty meaningfully. But we were we were pretty level headed at the time.”

    Bill·13:41

  • “We don't own any assets in urban areas. We don't own any assets with elevators. We don't own any assets where someone else has to unlock a door so the tenant can unlock their door.”

    Bill·17:54
• $ATM - At-The-Market (ATM) offerings are an efficient method for REITs to raise capital, with lower fees and discounts compared to traditional equity issuance methods.

  • “And in my mind that comes down to the form of of equity issuance, which we use is called an ATM, which has very, very low discounts and fees. And so for every dollar I raise, I get, you know, 98, 99, 97, 97 and a half cents versus a traditional methodology with fees and discounts.”

    Bill·51:45