FCPT Announces Disposition of a Burger King property for $2.1 million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has sold a Burger King property in Tennessee for $2.1 million, with a cap rate of 5.75%. The property is under a triple net lease with Carrols Corporation, having approximately 16 years remaining on the lease. The proceeds from the sale will be redeployed through a 1031-Exchange, although there is a risk of tax liabilities if equivalent properties are not acquired within specific timeframes. This transaction reflects FCPT's strategy of optimizing its portfolio through asset sales and reinvestments.

Positive

• Sold a Burger King property for $2.1 million, indicating demand for leased properties.
• Transaction priced at a favorable 5.75% cap rate, suggesting strong market conditions.

Negative

• Failure to acquire comparable replacement properties within 180 days could result in significant tax liabilities.

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 disposition of a Burger King property for $2.1 million. The property is located in Tennessee and is leased to a subsidiary of Carrols Corporation under a triple net lease with approximately sixteen years of term remaining. The transaction was priced at a 5.75% cap rate on rent today, exclusive of transaction costs. The sale is the result of an unsolicited offer from a local buyer, Lineberry Properties, Inc.

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 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.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding FCPT’s intent, belief or expectations, including, but not limited to, statements regarding the anticipated consequences and benefits of the transaction and other future events and their potential effects on FCPT, including, but not limited to, statements relating to anticipated financial and operating results, the company’s plans, objectives, expectations and intentions, cost savings and other statements. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of FCPT’s public disclosure obligations, FCPT expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in FCPT’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and FCPT can give no assurance that its expectations or the events described will occur as described. For a further discussion of these and other factors that could cause FCPT’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in FCPT’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by FCPT from time to time with the Securities and Exchange Commission.

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FAQ

What was the sale price of the Burger King property by FCPT?

The property was sold for $2.1 million.

What is the cap rate for the Burger King property sold by FCPT?

The cap rate for the sale was 5.75%.

What will FCPT do with the proceeds from the Burger King sale?

The proceeds will be used for a 1031-Exchange to acquire like-kind properties.

What are the risks associated with FCPT's 1031-Exchange?

If FCPT fails to acquire replacement properties within 180 days, it may face significant tax liabilities.

How long is the lease term remaining on the sold Burger King property?

The lease has approximately 16 years remaining.