FCPT Announces Disposition of an Applebee’s Restaurant Property for $1.7 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) announced the sale of an Applebee’s restaurant property in Michigan for $1.7 million. The transaction was completed with a cap rate consistent with previous sales, resulting in an immaterial gain for FCPT. Proceeds will be reinvested in accordance with the company's investment strategy, utilizing a 1031-Exchange to defer taxes on the sale. However, failure to acquire replacement properties within specified timeframes may trigger tax liabilities at a high rate.

Positive

• Sold Applebee's property for $1.7 million with a cap rate aligned with previous transactions.
• Plans to reinvest proceeds through a 1031-Exchange, maintaining investment alignment.

Negative

• No assurance of acquiring new properties; risks of tax liabilities if replacement properties not identified in time.

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 an Applebee’s restaurant property for $1.7 million. The property is located in Michigan and is franchisee-operated under a lease with approximately two years of term remaining. This transaction was priced at a cap rate in range with previous FCPT transactions 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/20220805005486/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 Four Corners Property Trust sell?

FCPT sold an Applebee's restaurant property located in Michigan.

How much did FCPT obtain from the sale of the property?

FCPT obtained $1.7 million from the sale of the Applebee's property.

What is a 1031-Exchange in relation to FCPT's sale?

A 1031-Exchange allows FCPT to defer taxes on the sale proceeds if they invest in similar properties.

What could happen if FCPT does not acquire new properties after the sale?

If FCPT fails to acquire replacement properties within the required timeframe, it may incur tax liabilities at the highest corporate tax rate.