Four Corners Property Trust, Inc. (NYSE:FCPT) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 11:00 am ET

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Four Corners Property Trust, Inc. (NYSE:FCPT) Q2 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Good day, and welcome to the Four Corners Property Trust Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Gerry Morgan, Chief Financial Officer. Please go ahead.

Executive
Gerald Morgan

Thank you, Alison.

During the course of this call, we will make forward-looking statements which are based on beliefs and assumptions made by us. Our actual results will be affected by known and unknown factors, including uncertainty related to the scope, severity and duration of the COVID-19 pandemic that are beyond our control or ability to predict. Our assumptions are not a guarantee of future performance, and some will prove to be incorrect. For a more detailed description of some potential risk, please refer to our SEC filings, which can be found at fcpt.com.

All the information presented on this call is current as of today, July 30, 2020. In addition, reconciliation to non-GAAP financial measures presented on this call, such as FFO and AFFO can be found in the Company's supplemental report, also available also on our website.

And with that, I'll turn the call over to Bill.

Executive
William Lenehan

Thank you, Gerry. Good morning, everyone. Thank you for joining our -- us to discuss our second quarter results, and I hope all of you and your families were staying healthy.

We were very pleased with the second quarter results and the strong level of collections we're reporting for that quarter, and as of today, collections are over 99% for July. I would like to clarify that number for our investors in the plainest terms possible. For all leases in our portfolio, we have already received over 99% of the cash base rent payments for the month of July. Given that we've only agreed to abate approximately $20,000 in rent during July and not agreed to any deferrals for the month of July, we believe this is a remarkable achievement for our team and our shareholders given the ongoing pandemic. This is a testament to both the low rents of the properties in our portfolio and to the strength of our tenants and their tenacity in adjusting their operating models to the current COVID environment.

Let me start with a few additional comments on collections. Our team has worked tirelessly with our tenants to stay abreast of their business operations and to work creatively when applicable, on lease modifications. Through this effort, we've collected over 92% of second quarter rent payments. In addition, we have agreed to defer approximately 3% of second quarter rent payments until later this year and have agreed or expect to shortly agree to abate an incremental 4% of second quarter rents. This leaves only approximately 1% of our rents for Q2 unresolved.

While most retail landlords have observed their tenants requesting relief over this period, FCPT only agreed to a select number of deferral and abatement agreements in cases where tenants exchanged favorable concessions in lease modifications for those deferments or abatements. These --