FCPT Announces Acquisition of a Chili’s Restaurant Property for $1.0 million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has acquired a Chili's restaurant property for $1.0 million. This property, located in a prime retail area in Georgia, features a new triple net lease with a franchisee operator, offering 20 years of term remaining along with four 5-year options and annual rent increases of 1.5%. The transaction was made at a 7.50% cash capitalization rate before transaction costs. FCPT plans to invest additional funds for remodeling, expecting a corresponding return.

Positive

• Acquisition of a Chili's property can enhance revenue streams.
• Long-term lease guarantees stable income for 20 years.
• Annual rent increases of 1.5% provide inflationary protection.
• Acquisition priced at a favorable 7.50% cash capitalization rate.

Negative

• None.

Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership of high-quality, net-leased restaurant properties (“FCPT” or the “Company”), is pleased to announce the acquisition of a Chili’s restaurant property for $1.0 million. The property is located in a strong retail corridor in GA and is occupied under a new triple net lease to a franchisee operator with twenty years of term remaining with four, 5-year options and annual rent increases of 1.5%. The transaction was priced at a 7.50% going-in cash capitalization rate, exclusive of transaction costs. FCPT will contribute additional funds to remodeling the building with a commensurate return.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210129005643/en/

FAQ

What is the purpose of FCPT's acquisition of the Chili's property?

The acquisition aims to enhance FCPT's revenue through long-term leasing of the restaurant property.

When was the Chili's property acquired by FCPT?

The acquisition was announced recently but the specific date was not provided in the press release.

What are the terms of the lease for the Chili's property acquired by FCPT?

The lease is a triple net lease with 20 years remaining, four 5-year options, and annual rent increases of 1.5%.

How much did FCPT pay for the Chili's restaurant property?

FCPT acquired the property for $1.0 million.

What is the expected impact of this acquisition on FCPT's financials?

The acquisition is expected to provide stable long-term income and potential returns from remodeling investments.