FCPT Announces Acquisition of an Automotive Service Property for $4.9 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has announced the acquisition of an automotive service property in Ohio for $4.9 million. The property, situated in a highly trafficked corridor, is leased to a national operator under a corporate long-term triple net lease. The transaction was executed at a 6.8% cap rate on rent as of the closing date, excluding transaction costs.

Positive

• Strategic acquisition in high-traffic location
• Secured long-term triple net lease with national operator
• Attractive 6.8% cap rate on investment
• Diversification beyond restaurant properties

Negative

• None.

Insights

Real Estate Investment Analyst

This $4.9 million acquisition marks a noteworthy strategic shift for FCPT, traditionally focused on restaurant properties. The 6.8% cap rate is particularly attractive in today's market environment, where cap rates for similar net-lease properties typically range between 5.5% and 6.5%. The higher yield suggests prudent capital allocation while maintaining investment quality.

The triple-net lease structure with a national operator is especially valuable in the current inflationary environment, as it transfers property expenses, maintenance, and potential cost increases to the tenant. This effectively creates a inflation-protected income stream for FCPT's shareholders. The high-traffic location in Ohio adds another layer of value security, as automotive service businesses typically show resilience during economic downturns due to their necessity-based nature.

This diversification into automotive services represents a calculated step to reduce FCPT's restaurant sector concentration risk. Automotive service properties have shown strong performance metrics recently, driven by aging vehicle fleets and increased maintenance demands. The sector's internet-resistant nature and steady cash flow characteristics align well with FCPT's focus on stable, long-term income generation.

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 an automotive service property leased to a national operator for $4.9 million. The property is located in a highly trafficked corridor in Ohio and under a corporate long-term triple net lease. The transaction was priced at a 6.8% cap rate on rent as of the closing date and 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.

Category: Acquisition

View source version on businesswire.com: https://www.businesswire.com/news/home/20250211945330/en/

Four Corners Property Trust:

Bill Lenehan, 415-965-8031

CEO

Patrick Wernig, 415-965-8038

CFO

Source: Four Corners Property Trust

FAQ

What is the value of FCPT's recent automotive service property acquisition?

FCPT acquired the automotive service property for $4.9 million.

What is the cap rate for FCPT's Ohio automotive property acquisition?

The transaction was priced at a 6.8% cap rate on rent as of the closing date, exclusive of transaction costs.

Where is FCPT's newly acquired automotive service property located?

The property is located in a highly trafficked corridor in Ohio.

What type of lease agreement does FCPT have for the new automotive property?

The property is under a corporate long-term triple net lease with a national operator.

How does this acquisition align with FCPT's property portfolio strategy?

This acquisition represents FCPT's expansion beyond its primary focus on restaurant and retail properties into the automotive service sector.