FCPT Announces Disposition of a Bob Evans Property for $1.5 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE: FCPT) has announced the sale of a Bob Evans restaurant property for $1.5 million, resulting from an unsolicited offer. The transaction carries a 4.5% cap rate on current rent and will yield an immaterial gain for the company. Proceeds will be reinvested into new opportunities via a 1031-Exchange, with net cash held in escrow until a new property is acquired. If comparable properties are not identified within 45 days or acquired within 180 days, FCPT will incur a tax on the gain from the sale.

Positive

• Successful sale of a restaurant property for $1.5 million.
• Transaction at a favorable 4.5% cap rate.
• Plans to reinvest proceeds through a 1031-Exchange, potentially enhancing future growth.

Negative

• Risk of incurring high corporate tax rates if new properties are not identified and acquired within specified timelines.

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 disposition of a Bob Evans restaurant property for $1.5 million. The sale is the result of an unsolicited offer. The transaction was priced at a 4.5% cap rate on rent today, exclusive of transaction costs, and will result in an immaterial gain to FCPT. The company plans to repurpose the proceeds into new investment opportunities consistent with FCPT thresholds.

FCPT anticipates redeploying the proceeds from this transaction through an Internal Revenue Code Section 1031 like-kind exchange (“1031-Exchange”). As a result, net cash proceeds from the sale will be held in an escrow account until one or more properties are purchased through the 1031-Exchange. However, there can be no assurance that an acquisition of a new property or properties will occur. If the Company fails to identify one or more like-kind replacement properties of comparable value within 45 days of the date of sale and/or fails to acquire such property or properties within 180 days of the date of sale, the Company will be required to pay a tax at the highest corporate income tax rate on the gain recognized on the sale of this property.

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/20220412006086/en/

Four Corners Property Trust:

Bill Lenehan, 415-965-8031

CEO

Gerry Morgan, 415-965-8032

CFO

Source: Four Corners Property Trust

FAQ

What was the sale price of the Bob Evans restaurant property by FCPT?

The Bob Evans restaurant property was sold for $1.5 million.

What is the cap rate for the Bob Evans property sale?

The transaction was priced at a 4.5% cap rate.

What tax risk does FCPT face after the sale?

FCPT may incur a tax at the highest corporate income tax rate if it fails to acquire comparable properties within the specified timeframe.

How does FCPT plan to use the proceeds from the property sale?

FCPT plans to repurpose the proceeds into new investment opportunities through a 1031-Exchange.

What is the time frame for FCPT to identify new properties after the sale?

FCPT must identify replacement properties within 45 days and acquire them within 180 days.