FCPT Announces Acquisition of a Chili’s Property for $3.2 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has acquired a Chili’s restaurant property in Missouri for $3.2 million. This transaction features a 6.5% going-in cash capitalization rate and is secured by a new triple net lease with a franchisee, ensuring a 20-year term with 1.5% annual rent increases. The acquisition strategically enhances FCPT's portfolio within a strong retail corridor, reflecting its focus on high-quality, net-leased restaurant and retail properties.

Positive

• Acquisition of a Chili’s property for $3.2 million strengthens portfolio.
• 20-year lease agreement with 1.5% annual rent increases adds stability.
• Transaction priced at a favorable 6.5% going-in cash capitalization rate.

Negative

• None.

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 Chili’s restaurant property for $3.2 million. The property is located in a strong retail corridor in Missouri and is occupied under a new triple net lease by a franchisee operator with 20 years of term remaining and 1.5% annual rent increases. The transaction was priced at a 6.5% going-in cash capitalization rate, exclusive of transaction costs.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211015005615/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 significance of FCPT's acquisition of the Chili’s restaurant?

The acquisition strengthens FCPT's portfolio and ensures stable long-term income through a secure lease.

How much did FCPT pay for the Chili’s property?

FCPT acquired the Chili’s restaurant property for $3.2 million.

What kind of lease is associated with the Chili’s acquisition by FCPT?

The lease is a triple net lease with 20 years remaining and 1.5% annual rent increases.

What is the expected cash capitalization rate for this acquisition?

The acquisition has a going-in cash capitalization rate of 6.5%.