Abstract
Four Corners Property will report quarterly results on February 11, 2026, Post Market; this preview summarizes consensus expectations for revenue, margins, net income and adjusted EPS, the company’s segment dynamics, and the dominant institutional perspective on the upcoming print.Market Forecast
Market tracking data indicates Four Corners Property’s current-quarter revenue is projected at $72.53 million, implying 10.25% year-over-year growth; the forecast embeds EBIT of $43.79 million and adjusted EPS of $0.29, with EPS tracking to 2.84% year-over-year growth. Forecast margin markers point to continued solid profitability, consistent with the last reported gross profit margin and net profit margin trends; EBIT is expected to rise 12.42% year over year.Rental income is expected to remain the primary driver, supported by stable lease escalators and a resilient tenant base, while restaurant-related income is a smaller contributor. The segment with the most promising outlook is rental revenue at $72.53 million, which is forecast to grow 10.25% year over year, benefiting from recent acquisitions and contractual rent steps.
Last Quarter Review
Four Corners Property’s previous quarter delivered revenue of $74.15 million, gross profit margin of 85.29%, GAAP net profit attributable to the parent company of $28.85 million, net profit margin of 38.90%, and adjusted EPS of $0.28, with adjusted EPS up 3.70% year over year and net income up 3.30% quarter over quarter.A notable financial highlight was EBIT of $41.67 million, which rose 10.56% year over year, underscoring operating strength relative to expectations. Main business highlights included rental revenue of $66.51 million and restaurant-related income of $7.64 million, with rental remaining the core engine on a diversified, predominantly net-leased portfolio.
Current Quarter Outlook
Main Business: Net-Lease Rental Platform
The core net-lease rental business drives the company’s cash flows through long-term leases with contractual increases. Forecast revenue of $72.53 million for the quarter suggests continued momentum, aligning with portfolio growth from acquisitions and embedded rent escalators. The prior quarter’s gross profit margin of 85.29% indicates a structurally efficient model with limited operating friction, supporting stable cash yields. With net profit margin at 38.90% last quarter and EBIT advancing 10.56% year over year, the current-quarter EBIT forecast of $43.79 million and EPS of $0.29 appear achievable if occupancy and collections remain near recent norms.The rent roll remains balanced by tenant diversification, which helps limit single-operator risk. Lease maturities are staggered, and recent results showed resilience in collections, backing forward visibility into NOI. If acquisition pace has been steady since the prior report, incremental contribution should reinforce revenue growth near the projected 10.25% year-over-year rate, even as the company navigates modest churn and re-tenanting.
From a cash earnings perspective, adjusted EPS of $0.29 implies modest growth, consistent with historical cadence. The conversion of revenue to EBIT and EPS relies on maintaining SG&A efficiency and avoiding one-time charges; last quarter’s operating delivery was above initial expectations, giving a modest cushion if interest expense and maintenance capex track in line with plan.
Most Promising Business: Rental Income Expansion
Rental income is positioned to contribute the bulk of the quarter’s topline and EBIT. The pathway to growth is driven by mix shift toward investment-grade tenants, newly added properties, and contractual rent escalators embedded in the lease portfolio. The forecast revenue of $72.53 million, up 10.25% year over year, ties directly to transactions executed over the last year and consistent occupancy.Margin retention is a key theme: net leases limit operating overhead and pass through many property-level costs to tenants, supporting stable gross margins near the prior quarter’s 85.29%. The last quarter’s net profit margin of 38.90% provides a baseline; the forecast EBIT growth of 12.42% year over year underlines favorable operating leverage if portfolio additions scale faster than incremental corporate expenses. A modest increase in adjusted EPS to $0.29 reflects steady capital efficiency, provided interest costs remain manageable with the current debt profile.
Risk management in this segment hinges on minimizing exposure to underperforming categories and ensuring rent coverage from tenants. The restaurant-heavy footprint has historically performed through cycles, but monitoring unit-level performance and lease coverage ratios remains important. Given the last quarter’s restaurant-related income of $7.64 million and the larger base of general rental revenue, the segment mix continues to skew toward stable, contracted rents.
Stock Price Drivers This Quarter
Investors are likely to focus on the balance between topline growth and margin preservation. The current-quarter projections—revenue of $72.53 million, EBIT of $43.79 million, and adjusted EPS of $0.29—set the benchmark; delivering above these levels could support multiple stability. Any update on acquisition activity since the last report will be assessed for cap rates, tenant quality, and financing terms; accretive deals at disciplined yields can enhance EPS trajectory.Interest rate dynamics remain a practical factor. Even if the company’s debt maturities are laddered, changes in the cost of debt can nudge net income and EPS. The last quarter’s net profit margin of 38.90% shows sensitivity is not excessive, but investors will watch for commentary on refinancing, hedging, and fixed-rate versus floating exposure. Lease renewals and re-tenanting outcomes will also shape sentiment: maintaining occupancy and minimizing downtime helps preserve the high gross margin profile near 85.29%.
Finally, tenant performance across restaurant and retail concepts may influence forward assumptions. Stable rent collection trends bolster confidence in achieving the 10.25% year-over-year revenue growth. If management confirms consistent collections and healthy rent coverage, the EBIT growth of 12.42% could be validated. Conversely, any deterioration in tenant health would pressure assumptions on bad debt and re-leasing costs, weighing on EPS relative to the $0.29 forecast.
Analyst Opinions
Institutional commentary skews supportive, with the majority of previews pointing to delivery near or modestly above the consensus forecasts for revenue and EPS. The constructive stance emphasizes resilient net-lease fundamentals, a conservative balance sheet posture, and visibility from contractual rents, consistent with the forecast for revenue of $72.53 million and adjusted EPS of $0.29. Analysts note the prior quarter’s stronger-than-expected revenue of $74.15 million and solid EBIT growth of 10.56% year over year as encouraging markers for operating momentum.Well-known platforms tracking consensus highlight EBIT forecast growth of 12.42% year over year as a signal of operating leverage into the quarter, provided acquisition integration continues smoothly and cost discipline holds. On balance, the supportive perspective sees limited downside if macro conditions remain steady and rent collections stay consistent with recent experience. The bullish view expects the company to reaffirm portfolio resilience, align reported results with the forecast ranges, and update on acquisitions and financing that could sustain mid-single-digit to low-double-digit revenue growth rates over the near term.
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