Four Corners Property Trust, Inc. (FCPT) Earnings Call Transcript & Summary

Good day, and welcome to the Four Corners Property Trust, Inc. Annual Meeting of Stockholders. I would now like to turn the conference over to Jim Brat. Please go ahead.

Thanks, Graham. Good morning, everybody. I'm Jim Brat, Chief Transaction Officer and General Counsel of Four Corners. I'd like to welcome you today and to introduce the Chief Executive Officer and President of our Company, Mr. Bill Lenehan.

Thank you, Jim. Welcome, everyone, and thank you for joining us today. We're excited to be hosting a virtual meeting this year, which allows us to be more inclusive and reach a greater number of stockholders during this current COVID-19 pandemic. We have stockholders attending via the web portal and the 800 number that we've provided. We will answer questions at the end of this meeting. It is now shortly after noon, Eastern, and this meeting is officially called to order. First, I would like to introduce my fellow members of the Board. John Moody, who is our Chairman of the Board. John is the President of Parkside Capital and has held a variety of senior management positions in private and public real estate companies throughout his career. Doug Hansen. Doug serves on the Board and was founder of Redwood Trust, a public mortgage REIT. Marran Ogilvie. Marran serves as a Director on various boards, including Ferro Corporation, Evolution Petroleum Corporation, GCP Applied Technologies. Fourth, Paul Szurek. Paul is the Chief Executive Officer of CoreSite Realty Corporation, a data center REIT. Fifth, Charles Jemley. Charles is the Chief Financial Officer of Dutch Bros. Coffee. In his prior role, serves as the CFO of CKE Restaurant and a Senior Vice President of Starbucks. And lastly, Eric Hirschhorn. Eric is the Chief Marketing Officer of Fridababy. In his most recent prior role, Mr. Hirschhorn served as the Head of Burger King in Canada. Jim Brat will act as Secretary of the Meeting. I will turn to him with any procedural issues that may arise.

Thanks, Bill. We're also joined here today by KPMG, our independent auditors. They will be available during the question-and-answer session after the meeting to respond to any relevant questions. And finally, the company has appointed Broadridge Financial Services to act as Inspector of Election. Beth VanDerbeck is with us today and has taken the oath of Inspector of Election. After the formal meeting has been adjourned, we'll provide time for general questions. Only validated stockholders will be able to ask questions in the designated field on the web portal. Out of consideration for others, please limit yourself to one question. Please note that this meeting is being recorded. However, no one attending via the webcast or telephone is permitted to use any audio recording device. The Board fixed April 17, 2020, as the record date for determining stockholders entitled to vote at this meeting. An affidavit has been delivered attesting to the fact that either one, a notice of Internet availability of the notice of the meeting, the proxy statement and the 2019 Annual Report to stockholders; or two, the documents themselves were mailed on or about April 24, 2020, to all stockholders as of the record date, and these will be incorporated into the minutes of this meeting. The stockholder list shows that as of the record date, there were 70,323,842 shares of common stock outstanding and entitled to vote at this meeting. We are informed by the Inspector of Election that they are represented in person via the web portal or by proxy shares of common stock, representing 64,915,484 votes or approximately 92.3% of the voting power on the record date. Since this represents more than a majority of the voting power of all issued and outstanding stock entitled to vote on the record date, the quorum is present for purposes of transacting business. Now I will present the matters to be voted upon. Please note that we will give stockholders an opportunity to comment on the proposals themselves after all proposals have been presented. Proposal 1 is the election of 7 directors to the Board. The current Board has nominated Mr. Bill Lenehan, Mr. Doug Hansen, Mr. John Moody, Ms. Marran Ogilvie, Mr. Paul Szurek, Mr. Charles Jemley and Mr. Eric Hirschhorn for election as Directors to hold office until the 2021 Annual Meeting of Stockholders, and until their successors are duly elected and qualified. Proposal 2 is to vote upon the ratification of the appointment of KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020. Proposal 3 is to vote to approve on a nonbinding advisory basis, the compensation of our named executive officers. If any stockholder would like to make a comment regarding any of the proposals, please submit your comments through the web portal. It doesn't look like there's any comments on the proposals. So Bill?

The polls are now open. Any stockholder who hasn't yet voted or wishes to change their vote may do so by clicking on the Voting button on the web portal and following the instructions there. Stockholders who have sent in proxies or voted via telephone or Internet and do not want to change their vote do not need to take any further action. I'm going to take a short pause to allow people to vote. [Voting]

Now that everyone has had the opportunity to vote, I now declare the polls for the 2020 Four Corners Property Trust Annual Stockholder Meeting closed. Jim, do we have any preliminary voting results?

We do. We have been informed by the Inspector of Election that the preliminary vote report shows that the nominees for election to the Board have been duly elected; that KPMG LLP has been appointed as our independent public account firm -- accounting firm for the fiscal year ending December 31, 2020; and that the compensation of our named executive officers has been approved on a nonbinding advisory basis. We will be reporting the final vote results in a Form 8-K to be filed within 4 business days.

Thank you, Jim. There being no further business to come before the meeting, the 2020 Annual Meeting of Stockholders for Four Corners Property Trust is now adjourned. Now we would like to open things up for stockholder questions and comments. Please note, we will attempt to answer as many questions as time allows, but only questions that are germane to the meeting will be addressed.

Okay. We only have one question today, but it's a good one. How will the economic shutdown affect FCPT's 2020 performance? So I'd first like to point out that most of the buildings that we own have been operating as a central services, restaurants or foodservice since the pandemic started. And I think that's one reason that our collections have been very high. We put out a number of disclosures, 2 COVID updates. We've put out an investor presentation recently. And I think that they address succinctly where we see the pandemic playing out, but I think we feel good that we're quite a way through this, and our collections have been quite high. And so I think on a long-term basis, this will be clearly a challenging period, but I think we're going to get through it quite well. And what I'm very interested to see is what the acquisition environment looks like on the other side of it. But with that, I think that answers the question, the sole question we were asked. And that concludes our Q&A session. And thank you to all of our stockholders for attendance today, and thank you for your support of Four Corners.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.