FCPT Announces Sale Leaseback of Eight Sonic Drive-In Properties for $10.6 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has acquired eight Sonic Drive-In properties for $10.6 million through a sale-leaseback transaction. These properties are located in Kentucky and are leased to Soar QSR, a franchisee subsidiary of CMG Companies, under a triple net lease. The agreement includes a 20-year term with 1.5% annual rent increases and a going-in cash capitalization rate of 6.2%, not including transaction costs. This acquisition aligns with FCPT's strategy to expand its portfolio in the restaurant and retail sectors.

Positive

• Acquisition of 8 Sonic Drive-In properties for $10.6 million enhances FCPT's portfolio.
• Long-term lease agreement with 20-year term provides stability.
• 1.5% annual rent increases offer potential for future revenue growth.
• 6.2% going-in cash capitalization rate indicates a favorable investment outlook.

Negative

• None.

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 acquisition of eight Sonic Drive-In properties for $10.6 million via a sale-leaseback transaction. The properties are located in Kentucky and are occupied under a triple net master lease to Soar QSR, a Sonic franchisee and subsidiary of CMG Companies, one of the largest multi-unit franchise operators in the United States, with 20 years of term and 1.5% annual rent increases. The transaction was priced at a 6.2% going-in cash capitalization rate, exclusive of transaction costs.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210730005592/en/

FAQ

What properties did FCPT acquire recently?

FCPT acquired eight Sonic Drive-In properties for $10.6 million.

What is the cash capitalization rate for the recent FCPT acquisition?

The going-in cash capitalization rate for the acquisition is 6.2%.

Who is the tenant for FCPT's new properties?

The properties are leased to Soar QSR, a Sonic franchisee.

How long is the lease term for the Sonic Drive-In properties acquired by FCPT?

The lease term is 20 years with annual rent increases of 1.5%.

Where are the newly acquired Sonic Drive-In properties located?

The properties are located in Kentucky.