FCPT Announces Disposition of a Burger King Property for $2.4 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has announced the sale of a Burger King property for $2.4 million, located in Alabama. This transaction, with a 5.7% cap rate, is expected to yield an immaterial gain for the company. FCPT plans to reinvest the proceeds through a 1031-Exchange, allowing for tax deferral if new properties are acquired within specified timeframes. The company must identify suitable replacement properties within 45 days and complete the acquisition within 180 days, or it will incur tax liabilities at the highest corporate rate.

Positive

• Sale of Burger King property for $2.4 million
• 5.7% cap rate on current rent
• Proceeds will be reinvested through a 1031-Exchange, allowing for potential tax benefits

Negative

• Failure to identify replacement properties may result in significant tax liabilities

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 Burger King property for $2.4 million. The property is located in Alabama and is operated by Carrols Restaurant Group under a triple net lease with approximately fourteen years of term remaining. The transaction was priced at a 5.7% cap rate on current rent, 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/20230215005798/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 recent sale amount for the Burger King property by FCPT?

FCPT sold the Burger King property for $2.4 million.

What is the cap rate on the recent Burger King property sale?

The transaction was priced at a 5.7% cap rate.

What must FCPT do within 45 days after the sale?

FCPT must identify one or more like-kind replacement properties within 45 days.

What happens if FCPT fails to acquire replacement properties within 180 days?

If FCPT fails to acquire new properties within 180 days, they will face tax at the highest corporate income tax rate.

Where is FCPT headquartered?

FCPT is headquartered in Mill Valley, California.