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

Rhea-AI Summary

Four Corners Property Trust (FCPT) has sold a Burger King restaurant property in Mississippi for $2.4 million, achieving a 5.3% cap rate on current rent. This transaction will yield an immaterial gain to the company. FCPT plans to reinvest the proceeds through a 1031-Exchange, which allows tax deferrals on the sale proceeds. However, if FCPT does not identify replacement properties within 45 days or fails to acquire them within 180 days, it may incur a tax at the highest corporate rate on the gains from the sale.

Positive

• Sold a property for $2.4 million, demonstrating asset liquidity.
• Achieved a 5.3% cap rate on the sale, indicating strong rental yield.

Negative

• Potential tax liabilities if replacement properties are not identified or 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 Burger King restaurant property for $2.4 million. The property is located in Mississippi and is operated by Carrols Restaurant Group under a triple net lease with approximately sixteen years of term remaining. The transaction was priced at a 5.3% 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/20220818005693/en/

Four Corners Property Trust:

Bill Lenehan, 415-965-8031

CEO

Gerry Morgan, 415-965-8032

CFO

Source: Four Corners Property Trust

FAQ

What property did FCPT sell?

FCPT sold a Burger King restaurant property in Mississippi.

How much did FCPT sell the Burger King property for?

The property was sold for $2.4 million.

What is the cap rate on the sale of the property?

The sale was priced at a 5.3% cap rate.

What are the implications of a 1031-Exchange for FCPT?

FCPT plans to reinvest the proceeds through a 1031-Exchange to defer taxes, but risks potential tax liabilities if not executed properly.

Where is FCPT headquartered?

FCPT is headquartered in Mill Valley, California.