FCPT Announces Disposition of an Outback Steakhouse Restaurant Property for $5.1 million

Rhea-AI Summary

Four Corners Property Trust (FCPT), a real estate investment trust, has announced the sale of an Outback Steakhouse property in New Mexico for $5.1 million. This sale reflects a 5.0% cap rate on current rent and will yield an immaterial gain for FCPT. The proceeds from the transaction will be utilized for new investments through a 1031-Exchange. However, there is a risk of incurring a corporate tax if suitable replacement properties are not identified and acquired within 45 and 180 days, respectively.

Positive

• Successful sale of Outback Steakhouse property enhances liquidity.
• Proceeds will be reinvested into new opportunities, potentially boosting long-term growth.

Negative

• Risk of incurring corporate tax if replacement properties are not acquired within the specified timeframe.

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 Outback Steakhouse restaurant property for $5.1 million. The property is located in New Mexico and is operated by Out West Restaurant Group, Inc., a franchisee of Outback Steakhouse. The transaction was priced at a 5.0% 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/20220509006016/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 recently?

FCPT sold an Outback Steakhouse restaurant property in New Mexico for $5.1 million.

What was the cap rate for the property sale by FCPT?

The property was sold at a cap rate of 5.0%.

What will FCPT do with the proceeds from the property sale?

FCPT plans to reinvest the proceeds through a 1031-Exchange.

What are the risks associated with FCPT's recent property sale?

If FCPT doesn't acquire a replacement property within 45 days, they may incur a significant corporate tax.

Where is FCPT headquartered?

FCPT is headquartered in Mill Valley, California.