Four Corners Property Trust (NYSE:FCPT), a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties (“FCPT” or the “Company”), is pleased to announce that it has signed an amendment to the deal originally announced on October 30, 2019, for the purchase of nine additional single tenant outparcel properties from Seritage Growth Properties (NYSE: SRG) for $27.3 million. The transaction is priced at a cap rate in a range consistent with past FCPT transactions. The transaction is expected to close in various tranches with the majority closing in 2020 and the remainder in 2021, subject to customary closing conditions and regulatory approvals.
The nine outparcels span four restaurant brands, three bank branches and two retail brands. The portfolio’s restaurant brands are Arby’s, BJ’s Restaurant and Brewhouse, Popeyes, and Portillo’s. The portfolio’s non-restaurant tenants are three bank branches (operated by Bank of America, Chase and Truist Bank), a Recreational Equipment, Inc. (“REI”), and an auto services center operated by American Automobile Association (“AAA”). Four of the brands (AAA, Bank of America, Chase and Truist Bank) are new to FCPT’s portfolio. The properties in this transaction have contractual rent growth, net-lease structures and strong tenancy with credit-worthy operators.
The retail outparcels are located within highly trafficked and populated corridors in California, Louisiana, Maryland, Michigan, South Carolina, Utah, Wisconsin and Virginia (2). Of the nine leases, eight are with the brand’s corporate entities and one is with a franchisee (Popeyes). Each property has a separate individual lease and the leases have a weighted average remaining term of approximately 9 years.
The aggregate portfolios between FCPT and Seritage Growth Properties totaled $96 million / 32 properties, of which $45 million / 14 properties have closed to date. After adjusting for certain properties that have been removed from the first portfolio, FCPT currently has $36 million / 13 properties remaining under contract to acquire from Seritage Growth Properties.
Bill Lenehan, CEO of Four Corners Property Trust, stated: “Over the past year we have been encouraged by the cooperation between FCPT and Seritage and are excited we will continue to partner together to drive value for both companies’ shareholders. This portfolio reflects strong credit and real estate consistent with FCPT’s commitment to only acquire high-quality properties.”
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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance, announced transactions, expectations regarding the making of distributions and the payment of dividends, and the effect of pandemics such as COVID-19 on the business operations of the Company and the Company’s tenants and their continued ability to pay rent in a timely manner or at all. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of the Company’s public disclosure obligations, the Company expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and the Company can give no assurance that its expectations or the events described will occur as described. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. In addition, the extent to which COVID-19 impacts the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact and the direct and indirect economic effects of the pandemic and containment measures, among others. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent annual report on Form 10-K, as supplemented by the risk factor described under “Item 1A. ‘Risk Factors’” in the Company’s quarterly report on Form 10-Q filed with the Securities and Exchange Commission on August 3, 2020, and other risks described in documents subsequently filed by the company from time to time with the Securities and Exchange Commission.
Bill Lenehan, 415-965-8031