FCPT Announces $32.5 million Outparcel Portfolio with PREIT

Rhea-AI Summary

Four Corners Property Trust (NYSE: FCPT) has announced a definitive agreement to purchase 11 outparcel properties from PREIT (NYSE: PEI) for $32.5 million, priced at a 6.5% cash cap rate. The acquisition includes 8 single-tenant restaurant properties and 3 retail properties, with a weighted average lease term of approximately 8 years. The company expects to finalize the acquisition in the second and third quarters of 2022, pending closing conditions and approvals. CEO Bill Lenehan expressed enthusiasm about continuing the partnership with PREIT.

Positive

• Acquisition of 11 outparcel properties worth $32.5 million enhances portfolio.
• Strong cash cap rate of 6.5% indicates potential for solid returns.
• Properties located in high-traffic areas across multiple states.
• Weighted average lease term of approximately 8 years offers long-term revenue stability.

Negative

• None.

MILL VALLEY, Calif.--(BUSINESS WIRE)-- Four Corners Property Trust (NYSE:FCPT), a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties (“FCPT” or the “Company”), is pleased to announce that it has signed a definitive agreement for the purchase of 11 outparcel properties from PREIT (NYSE: PEI) for $32.5 million. The transaction is priced at a 6.5% going-in cash cap rate, exclusive of transaction costs. The portfolio includes 8 single tenant restaurant properties and three non-restaurant retail properties. FCPT expects to acquire a majority of the portfolio in the second and third quarters of 2022, subject to customary closing conditions, seller’s board approval, and regulatory approvals.

Bill Lenehan, CEO of Four Corners Property Trust, stated: “We have previously executed multiple outparcel transactions with the PREIT team and they have been an exceptional partner for us. We are excited to announce this 11-property outparcel portfolio and to continue our strategy of identifying low-rent outparcel properties leased to strong credit operators.”

The properties share similar qualities with FCPT’s existing outparcel assets and have contractual rent stream growth, net-lease structures, and strong tenancy with credit-worthy operators. The retail outparcels are located within highly trafficked and populated corridors in Maryland, Massachusetts, Pennsylvania, and South Carolina. Each property has a separate, individual lease and the leases have a current weighted average remaining term of approximately eight years.

About FCPT

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries. Additional information about FCPT can be found on the website at www.fcpt.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance, announced transactions, expectations regarding the making of distributions and the payment of dividends, and the effect of pandemics such as COVID-19 on the business operations of the Company and the Company’s tenants and their continued ability to pay rent in a timely manner or at all. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and the Company can give no assurance that its expectations or the events described will occur as described. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. In addition, the extent to which COVID-19 impacts the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact and the direct and indirect economic effects of the pandemic and containment measures, among others. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent annual report on Form 10-K, as supplemented by the risk factor described under “Item 1A. ‘Risk Factors’” in the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on August 3, 2020, and other risks described in documents subsequently filed by the company from time to time with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220609005964/en/

Four Corners Property Trust:

Bill Lenehan, 415-965-8031

CEO



Gerry Morgan, 415-965-8032

CFO

Source: Four Corners Property Trust

FAQ

What is the purchase price for the properties acquired by FCPT from PREIT?

Four Corners Property Trust is acquiring the 11 outparcel properties for $32.5 million.

What is the cash cap rate for FCPT's recent property acquisition?

The transaction is priced at a 6.5% going-in cash cap rate.

When does FCPT expect to complete the acquisition of the properties?

FCPT expects to acquire the majority of the portfolio in the second and third quarters of 2022.

How many properties is FCPT purchasing from PREIT?

FCPT is purchasing a total of 11 outparcel properties from PREIT.

What types of properties are included in FCPT's acquisition?

The portfolio consists of 8 single-tenant restaurant properties and 3 non-restaurant retail properties.