FCPT Announces Acquisition of Six Chili’s Properties for $20.6 Million

Rhea-AI Summary

Four Corners Property Trust (FCPT) has acquired six Chili’s properties for $20.6 million. The locations are in Maryland and Virginia, featuring corporate-operated establishments. All properties are secured under triple net leases with a remaining term of 15 years and approximately 1.4% annual rent increases. The acquisition's cap rate aligns with previous transactions by FCPT, indicating a strategic expansion in high-quality, net-leased restaurant properties.

Positive

• Acquisition of six Chili’s properties boosts portfolio diversity.
• Properties secured under triple net leases ensure stable revenue.
• Strategic locations in high-traffic areas may enhance rental income.
• 15 years of lease term provides long-term revenue security.
• Annual rent increases of ~1.4% contribute to revenue growth.

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 six Chili’s properties for $20.6 million. The properties are corporate-operated and located in highly trafficked corridors in Maryland and Virginia. They are all occupied under triple net leases with 15 years of term remaining and ~1.4% annual rent increases. The transaction was priced at a cap rate in range with previous FCPT transactions.

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/20210902005842/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 six Chili’s properties?

FCPT's acquisition adds valuable assets to its portfolio, enhancing revenue stability and growth potential.

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

FCPT acquired the six Chili’s properties for $20.6 million.

What type of lease is associated with the acquired Chili’s properties?

The properties are occupied under triple net leases, ensuring consistent rental income.

Where are the acquired Chili’s properties located?

The properties are located in Maryland and Virginia, in highly trafficked areas.

What are the expected benefits of the acquisition for FCPT shareholders?

The acquisition is expected to provide stable cash flow through long-term leases and annual rent increases.