FCPT Announces Acquisition of a Burger King Property for $1.7 Million and Total 2024 Acquisition Volume of $265 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has announced the acquisition of a Burger King property for $1.7 million in Virginia. The property is situated in a strong retail corridor and features a corporate long-term, triple net lease with approximately 13 years remaining, priced at a 7.0% cap rate.

This acquisition marks the completion of FCPT's 2024 real estate acquisitions, totaling 87 properties for a combined investment of $265 million. Notably, $199 million of these acquisitions were completed in the final four months of 2024, demonstrating significant momentum heading into 2025.

Positive

• Acquired 87 properties in 2024 for $265 million total investment
• Strong acquisition momentum with $199 million in deals in last 4 months of 2024
• Latest Burger King property secured with 13-year triple net lease
• Attractive 7.0% cap rate on the new acquisition

Negative

• None.

Insights

REIT Investment Analyst

The acquisition of a Burger King property for $1.7 million at a 7.0% cap rate demonstrates FCPT's strategic expansion in the QSR sector. The 13-year triple-net lease structure provides stable, long-term cash flows while minimizing operational responsibilities. More notably, FCPT's total 2024 acquisition volume of $265 million across 87 properties shows remarkable portfolio growth, with $199 million deployed in just the final four months.

The 7.0% cap rate is particularly attractive in the current high-interest-rate environment, offering a solid spread above borrowing costs. The Virginia location in a strong retail corridor suggests careful market selection, while the corporate guarantee on the lease adds another layer of security. The accelerated pace of acquisitions in Q4 2024 indicates strong deal sourcing capabilities and positions FCPT well for continued growth in 2025.

Real Estate Market Analyst

This transaction highlights FCPT's execution strength in the net-lease retail segment. The Virginia property's location in a high-traffic retail corridor enhances its long-term value proposition, while the corporate-backed triple-net lease structure effectively transfers operational risks to the tenant. The substantial $265 million deployment in 2024 represents significant portfolio expansion, with the concentrated Q4 activity suggesting favorable market conditions and strong deal pipeline.

For context, triple-net leases typically command lower cap rates due to their reduced landlord responsibilities and predictable income streams. The 7.0% cap rate achieved here represents attractive pricing relative to current market benchmarks, particularly for QSR properties with corporate guarantees. The 13-year remaining lease term also provides meaningful protection against near-term market fluctuations, supporting stable NOI growth.

MILL VALLEY, Calif.--(BUSINESS WIRE)-- Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties (“FCPT” or the “Company”), is pleased to announce the acquisition of a Burger King property for $1.7 million. The property is located in a strong retail corridor in Virginia and under a corporate long-term, triple net lease with approximately 13 years of term remaining. The transaction was priced at a 7.0% cap rate on rent as of the closing date and exclusive of transaction costs.

Including today’s acquisition, FCPT completed real estate acquisitions of 87 properties in 2024 for a total investment of approximately $265 million, exclusive of transaction costs.

“We ended 2024 with our busiest four months of the year, including $199 million of real estate acquisitions since late August,” said CEO Bill Lenehan. “We are excited to carry that momentum into 2025 as we continue to build out our company and investment platform.”

About FCPT

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail 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 FCPT’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance and expectations regarding the making of distributions and the payment of dividends. 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 FCPT’s public disclosure obligations, FCPT expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in FCPT’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 FCPT can give no assurance that its expectations or the events described will occur as described. For a further discussion of these and other factors that could cause FCPT’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in FCPT’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by FCPT from time to time with the Securities and Exchange Commission.

Category: Acquisition

View source version on businesswire.com: https://www.businesswire.com/news/home/20241227289742/en/

Four Corners Property Trust:

Bill Lenehan, 415-965-8031

CEO

Patrick Wernig, 415-965-8038

CFO

Source: Four Corners Property Trust

FAQ

How many properties did FCPT acquire in 2024?

FCPT acquired 87 properties in 2024 for a total investment of approximately $265 million, exclusive of transaction costs.

What was the value of FCPT's latest Burger King property acquisition?

FCPT acquired the Burger King property for $1.7 million, with a 7.0% cap rate on rent as of the closing date.

What was FCPT's acquisition volume in the last four months of 2024?

FCPT completed $199 million in real estate acquisitions since late August 2024.

What are the terms of the Burger King property lease acquired by FCPT?

The Burger King property is under a corporate long-term, triple net lease with approximately 13 years of term remaining.

Where is FCPT's newly acquired Burger King property located?

The Burger King property is located in a strong retail corridor in Virginia.