Activism, REITs, capital allocation and Four Corners Property Trust with Bill Lenehan | S06 E46
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Welcome to Value After Hours. I'm Tobias Carlisle, joined as always by my co host, Jake Taylor. Our special guest today is Bill Linehan. He's the CEO of Four Corners Property Trust, and he's an investor. He's got a lot of experience in public and private markets, from a lot of different perspectives, board roles, as a deployer of capital. Welcome welcome, Bill. How are you? Oh,
doing great. Looking forward to this. It should be really fun.
Let's let's perhaps start with your current role as chief executive of Four Corners Property Trust. What does Four Corners do, and and what's your what's your role there?
Sure. So we are a real estate investment trust. 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. And, we are, and we can get into this at times, hyper inquisitive of small dollar buildings. So we've had quarters where we bought a building every day and a half, every business day and a half. But we've also had months where we, felt
I I think, I've always we've talked before, you you and I, Bill, offline about, REITs being the the c elegance of of the capital allocation world. Like, so c elegance being worms, which are they're very simple model that actually is very illustrative of of, like, how something works in a more complex biological model. That's why they're used so much in research. But maybe it would be fun for you to unpack that a little bit on, you know, why REITs are just like Yeah. Pure pure model of capital allocation.
I had been thinking about this idea for a decade when you used that example, and I have to admit I had to look up, what it was, but I think it's really perfect. And and I why would you want a scientist experiment on a very, very simple organism? Because it isolates variables. Okay. And so you could be really bad at capital allocation at a pharma company, and you issue equity at a low price and you waste money on overhead and you do a dumb acquisition that's dumb on the face of it. But some scientists somewhere in the lab figures out, how to combine 2 compounds and make the next killer drug and
Yeah. No Picassos in the portfolio. Yeah.
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