Four Corners Property Trust Has Two Credit Ratings - They Don't Agree

Benzinga_recent_news02-07

I started looking at Four Corners Property Trust (NYSE:FCPT) as part of a broader net lease comparison — mapping where each name sits relative to the BBB- cliff. Realty Income at A-, NNN REIT at BBB+,...

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Realty Income at A-, NNN REIT at BBB+,...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/02/50454810/four-corners-property-trust-has-two-credit-ratings-that-dont-agree\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Four Corners Property Trust Has Two Credit Ratings - They Don't Agree</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFour Corners Property Trust Has Two Credit Ratings - They Don't Agree\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-07 01:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/Opinion/26/02/50454810/four-corners-property-trust-has-two-credit-ratings-that-dont-agree><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>I started looking at Four Corners Property Trust (NYSE:FCPT) as part of a broader net lease comparison — mapping where each name sits relative to the BBB- cliff. Realty Income at A-, NNN REIT at BBB+,...</p>\n\n<a href=\"https://www.benzinga.com/Opinion/26/02/50454810/four-corners-property-trust-has-two-credit-ratings-that-dont-agree\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"FCPT","symbol_name":"Four Corners Property Trust, Inc.","start_time":0,"source_url":"https://www.benzinga.com/Opinion/26/02/50454810/four-corners-property-trust-has-two-credit-ratings-that-dont-agree","article_id":"2609751362","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2026/02/06/reit.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/Opinion/26/02/50454810/four-corners-property-trust-has-two-credit-ratings-that-dont-agree","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609751362","pubTimestamp":1770398520,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"I started looking at Four Corners Property Trust  as part of a broader net lease comparison — mapping where each name sits relative to the BBB- cliff. Realty Income at A-, NNN REIT at BBB+, Gaming and Leisure Properties at BBB-. Standard exercise.When I pulled up FCPT, the picture split in a way I wasn’t expecting.Fitch rates FCPT at BBB, Stable outlook, affirmed August 26, 2025. That puts it two notches above junk.Moody’s rates it Baa3 — which translates directly to BBB-minus on the Fitch/S&P scale. One notch above junk. The lowest rung of investment grade.So depending on which agency you ask, FCPT is either comfortably investment-grade or sitting right at the edge. I don’t think most dividend investors are looking at both ratings side by side. And I think the gap between them matters more than either number alone.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"FCPT":"Four Corners Property Trust, Inc.","ADC":"艾格里房产"},"translate_title":"四角地产信托有两个信用评级——他们不同意","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ADC":1.5,"FCPT":1.5},"content_text":"I started looking at Four Corners Property Trust (NYSE:FCPT) as part of a broader net lease comparison — mapping where each name sits relative to the BBB- cliff. Realty Income at A-, NNN REIT at BBB+, Gaming and Leisure Properties at BBB-. Standard exercise.\nWhen I pulled up FCPT, the picture split in a way I wasn’t expecting.\nFitch rates FCPT at BBB, Stable outlook, affirmed August 26, 2025. That puts it two notches above junk.\nMoody’s rates it Baa3 — which translates directly to BBB-minus on the Fitch/S&P scale. One notch above junk. The lowest rung of investment grade.\nSo depending on which agency you ask, FCPT is either comfortably investment-grade or sitting right at the edge. I don’t think most dividend investors are looking at both ratings side by side. And I think the gap between them matters more than either number alone.\nThe Numbers Behind The Split\nNet Debt to Adjusted EBITDAre: 4.7x — or 5.3x. Including unsettled forward equity as of September 30, 2025, leverage screens at 4.7x. Without those settlements, it’s 5.3x. Management has been deliberate about de-leveraging — this is near a company-low — and 97% of the debt is fixed-rate. The portfolio spans 1,273 properties across 48 states with 99.5% occupancy. Source: FCPT Q3 2025 Earnings Release (October 28, 2025).\nBut here’s the thing.\nThe gap between 4.7x and 5.3x depends entirely on whether those forward equity settlements actually close. If market conditions shift and FCPT pulls back on issuance, the higher number is the one that describes the balance sheet. I’d want to see that spread narrow before treating 4.7x as the baseline.\nDebt Maturity Profile\nWhat Could Change This\nThree things I’d watch.\nMoody’s outlook turns negative. Right now both agencies show stable outlooks. But Baa3 with a negative outlook would put FCPT one step from losing investment-grade status on that side. Even with Fitch still at BBB, institutional buyers who screen on lowest rating would notice — and that changes the cost-of-capital math.\nAFFO payout drifts above 85%. At 82.8%, there’s a buffer, but not much. A couple weaker quarters on the restaurant side or a slowdown in acquisition-driven growth could push this into a range where the dividend looks less comfortable. I could be wrong about the degree, but the margin feels narrow.\nForward equity settlements stall. FCPT’s current leverage profile depends partly on converting those forward sales into actual capital. If the stock price drops before settlement, the company either takes dilution at worse terms or lives closer to that 5.3x reality. Not a crisis — but a dependency worth tracking.\nWhat I’m Watching Next\nFCPT reports Q4 2025 earnings after the market close on February 11, 2026, with a conference call on February 12 at 12:00 p.m. ET. The first number I’ll check isn’t revenue or acquisition volume — it’s whether that AFFO payout ratio held steady or started creeping higher. Source: FCPT Q4 2025 Earnings Announcement (January 8, 2026).\nOn the operational side, the portfolio is strong. 99.5% occupancy across 1,273 properties in 48 states. Tenant EBITDAR coverage at 5.1x — the highest in the net lease sector, per management’s Q3 call. The Darden heritage, the diversification from 94% casual dining concentration at spin-off down to roughly 42% today — none of that is in question. Source: FCPT Q3 2025 Earnings Release; Q2 2025 Investor Presentation (Darden concentration data).\nWhat I’m focused on is narrower. One of FCPT’s two rating agencies already places this company at the lowest rung of investment grade. Fitch sees a two-notch cushion. Moody’s sees none. For a dividend investor trying to measure distance from the cliff, which rating you anchor to changes the answer entirely.\nThe numbers tell a story. Whether it changes anything — that part is yours.\nDisclosure: This article is for informational purposes only and does not constitute investment advice. The author holds no position in FCPT at the time of writing.\nBenzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.\nTo add Benzinga News as your preferred source on Google, click here.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2609751362","isCrawlerRequest":true}