Four Corners Property Trust, Inc. Segments Disclosure
NOTE 14 – SEGMENTS
During 2025, 2024, and 2023, we operated in two segments: real estate operations and restaurant operations. In our real estate operations, we lease properties to tenants through net lease arrangements under which the tenants are primarily responsible for ongoing costs relating to the properties, including utilities, property taxes, insurance, common area maintenance charges, and maintenance and repair costs. In our restaurant operations, we operate seven LongHorn Steakhouse restaurants located in the San Antonio, Texas area.
Our chief operating decision maker evaluates performance of the real estate operations based on Adjusted Funds from Operations (“AFFO”) and evaluates performance of the restaurant operations based on Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") in order to determine how to allocate resources to these segments. We define AFFO as total real estate operations segment revenues, less total segment operating expenses. We define EBITDA as total restaurant operations segment revenues less total segment operating expenses. We consider these respective measures useful because they allow investors, analysts and our management to measure our year-over-year ability to fund dividend distribution from operating activities. In order to facilitate a clear understanding of our historical consolidated operating results, AFFO and EBITDA should be examined in conjunction with net income as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Annual Report.
Our segments are based on our organizational and management structure, which aligns with how our results are monitored and performance is assessed. The accounting policies of the reportable segments are the same as those described in Note 2 - Summary of Significant Accounting Policies.
The following table presents financial information for the real estate operations segment.
|
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenues: |
|
|
|
|
|
|
|
|
|
|||
Real estate operations revenue |
|
$ |
262,248 |
|
|
$ |
236,264 |
|
|
$ |
217,276 |
|
Segment revenue |
|
|
262,248 |
|
|
|
236,264 |
|
|
|
217,276 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||
Interest expense |
|
|
48,715 |
|
|
|
46,634 |
|
|
|
42,295 |
|
Other segment items, net (1) |
|
|
31,077 |
|
|
|
27,723 |
|
|
|
27,267 |
|
AFFO |
|
$ |
182,456 |
|
|
$ |
161,907 |
|
|
$ |
147,714 |
|
Reconciliation to Segment net income: |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
(59,660 |
) |
|
|
(53,607 |
) |
|
|
(49,996 |
) |
Realized gain on sale, net |
|
|
— |
|
|
|
— |
|
|
|
2,341 |
|
Stock-based compensation |
|
|
(8,854 |
) |
|
|
(6,987 |
) |
|
|
(6,271 |
) |
Straight-line rent |
|
|
3,203 |
|
|
|
3,810 |
|
|
|
5,523 |
|
Non-cash amortization of deferred financing costs |
|
|
(3,158 |
) |
|
|
(2,597 |
) |
|
|
(2,311 |
) |
Other non-cash revenue adjustments |
|
|
(1,923 |
) |
|
|
(2,072 |
) |
|
|
(2,061 |
) |
Segment Net Income |
|
$ |
112,064 |
|
|
$ |
100,454 |
|
|
$ |
94,939 |
|
The following table presents financial information for the restaurant operations segment.
|
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenues: |
|
|
|
|
|
|
|
|
|
|||
Restaurant operations revenue |
|
$ |
31,484 |
|
|
$ |
30,939 |
|
|
$ |
30,725 |
|
Segment revenue |
|
|
31,484 |
|
|
|
30,939 |
|
|
|
30,725 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||
Cost of goods sold |
|
|
24,502 |
|
|
|
24,305 |
|
|
|
24,033 |
|
Other segment items, net (1) |
|
|
5,820 |
|
|
|
5,587 |
|
|
|
5,531 |
|
EBITDA |
|
$ |
1,162 |
|
|
$ |
1,047 |
|
|
$ |
1,161 |
|
Reconciliation to Segment net income: |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
(764 |
) |
|
|
(907 |
) |
|
|
(735 |
) |
Income tax (expense) benefit |
|
|
26 |
|
|
|
1 |
|
|
|
97 |
|
Segment Net Income |
|
$ |
424 |
|
|
$ |
141 |
|
|
$ |
523 |
|
The following table reconciles the segment revenues to our total revenues.
|
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenues: |
|
|
|
|
|
|
|
|
|
|||
Real estate operations revenue |
|
$ |
262,248 |
|
|
$ |
236,264 |
|
|
$ |
217,276 |
|
Restaurant operations revenue |
|
|
31,484 |
|
|
|
30,939 |
|
|
|
30,725 |
|
Other |
|
|
400 |
|
|
|
870 |
|
|
|
2,605 |
|
Total revenues |
|
$ |
294,132 |
|
|
$ |
268,073 |
|
|
$ |
250,606 |
|
The following table reconciles the segment net incomes to our net income.
|
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Segment net income: |
|
|
|
|
|
|
|
|
|
|||
Real estate operations |
|
$ |
112,064 |
|
|
$ |
100,454 |
|
|
$ |
94,939 |
|
Restaurant operations |
|
|
424 |
|
|
|
141 |
|
|
|
523 |
|
Net income |
|
$ |
112,488 |
|
|
$ |
100,595 |
|
|
$ |
95,462 |
|
The following table presents supplemental information by segment.
Supplemental Segment Information at December 31, 2025
(In thousands) |
|
Real Estate |
|
|
Restaurant |
|
|
Total |
|
|||
Total real estate investments |
|
$ |
3,475,271 |
|
|
$ |
22,361 |
|
|
$ |
3,497,632 |
|
Accumulated depreciation |
|
|
(809,161 |
) |
|
|
(7,831 |
) |
|
|
(816,992 |
) |
Total real estate investments, net |
|
$ |
2,666,110 |
|
|
$ |
14,530 |
|
|
$ |
2,680,640 |
|
Cash and cash equivalents |
|
$ |
10,933 |
|
|
$ |
1,211 |
|
|
$ |
12,144 |
|
Total assets |
|
$ |
2,898,869 |
|
|
$ |
21,857 |
|
|
$ |
2,920,726 |
|
Total debt, net of deferred financing costs |
|
$ |
1,204,171 |
|
|
$ |
— |
|
|
$ |
1,204,171 |
|
Supplemental Segment Information at December 31, 2024
(In thousands) |
|
Real Estate |
|
|
Restaurant |
|
|
Total |
|
|||
Total real estate investments |
|
$ |
3,175,813 |
|
|
$ |
22,831 |
|
|
$ |
3,198,644 |
|
Accumulated depreciation |
|
|
(767,716 |
) |
|
|
(7,789 |
) |
|
|
(775,505 |
) |
Total real estate investments, net |
|
$ |
2,408,097 |
|
|
$ |
15,042 |
|
|
$ |
2,423,139 |
|
Cash and cash equivalents |
|
$ |
2,985 |
|
|
$ |
1,096 |
|
|
$ |
4,081 |
|
Total assets |
|
$ |
2,631,171 |
|
|
$ |
21,855 |
|
|
$ |
2,653,026 |
|
Total debt, net of deferred financing costs |
|
$ |
1,137,889 |
|
|
$ |
— |
|
|
$ |
1,137,889 |
|
Capital expenditures in our Consolidated Statements of Cash Flows relate to the real estate operations segment.
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 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Mar 22, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.