Four Corners Property Trust, Inc. Leases Disclosure
NOTE 5 – LEASES
Operating Leases as Lessee
As a lessee we record right-of-use assets and lease liabilities for the two ground leases at our Kerrow Restaurant Operating Business and our corporate office space. The two ground leases have extension options, which we believe will be exercised and are included in the calculation of our lease liabilities and right-of-use assets. In calculating the lease obligations under both the ground leases and office lease, we used discount rates estimated to be equal to what the Company would have to pay to borrow on a collateralized basis over a similar term, for an amount equal to the lease payments, in a similar economic environment.
Operating Lease Liability
Maturities of operating lease liabilities were as follows:
(In thousands) |
|
December 31, |
|
|
2026 |
|
$ |
721 |
|
2027 |
|
|
743 |
|
2028 |
|
|
755 |
|
2029 |
|
|
768 |
|
2030 |
|
|
626 |
|
Thereafter |
|
|
3,793 |
|
Total Payments |
|
|
7,406 |
|
Less: Interest |
|
|
(1,788 |
) |
Operating Lease Liability |
|
$ |
5,618 |
|
The weighted-average discount rate for operating leases at December 31, 2025 was 4.69%. The weighted-average remaining lease term was 12.4 years.
Rent expense was $902 thousand, $918 thousand, and $910 thousand for the years ended December 31, 2025, 2024, and 2023, respectively.
Operating Leases as Lessor
Our leases consist primarily of single-tenant, net leases, in which the tenants are responsible for making payments to third parties for operating expenses such as property taxes, insurance, and other costs associated with the properties leased to them. In leases where costs are paid by the Company and reimbursed by lessees, such payments are considered variable lease payments and recognized in rental revenue.
The following table shows the components of rental revenue.
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Lease revenue - operating leases |
$ |
251,681 |
|
|
$ |
227,588 |
|
|
$ |
210,433 |
|
Variable lease revenue (tenant reimbursements) |
|
10,967 |
|
|
|
9,546 |
|
|
|
9,448 |
|
$ |
262,648 |
|
|
$ |
237,134 |
|
|
$ |
219,881 |
|
|
Future Minimum Lease Payments to be Received
The following table presents the scheduled minimum future contractual rent to be received under the remaining non-cancelable term of the operating leases. The table presents future minimum lease payments due during the initial lease term only as lease renewal periods are exercisable at the option of the lessee.
(In thousands) |
|
December 31, |
|
|
2026 |
|
$ |
265,184 |
|
2027 |
|
|
259,714 |
|
2028 |
|
|
233,829 |
|
2029 |
|
|
207,316 |
|
2030 |
|
|
180,585 |
|
Thereafter |
|
|
852,398 |
|
Total Future Minimum Lease Payments to be Received |
|
$ |
1,999,026 |
|
Ground Leases as Lessee
As of December 31, 2025 and 2024, the Company had finance ground lease assets aggregating $13.9 million and $13.9 million, respectively. These assets are included in intangible real estate assets, net on the Consolidated Balance Sheets. The Company did not recognize a lease liability as no payments are due in the future under the leases. The Company’s ground lease assets have remaining terms of 58 years to 93 years. All but two of these leases have options to extend the lease terms for additional 99 years terms, and all have the option to purchase the assets once certain conditions and contingencies are met. The weighted average remaining non-cancelable lease term for the ground leases was 88 years at December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 27, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.