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Four Corners on Buyout Spree, Adds LongHorn Steakhouse Asset
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Four Corners Property Trust (FCPT - Free Report) recently shelled out $1.8 million for the acquisition of a LongHorn Steakhouse property from Brookfield Properties. The move comes as part of its portfolio-expansion efforts.
This Oklahoma property is corporate-operated under a triple-net lease, with the lease roughly having five years of term remaining. Being positioned in a highly-trafficked retail corridor, it is likely to keep witnessing solid demand. Moreover, with the Brookfield Properties portfolio transaction priced at a cap rate in range with the prior Four Corners transactions, the move seems a strategic fit.
Primarily engaged in the ownership of high-quality net-leased restaurant properties, Four Corners maintains an investment grade financial position (Fitch BBB-) and seeks attractive acquisition opportunities.
Apart from the above-mentioned acquisition, recently the company revealed a couple of other buyouts as well. Among those are the acquisitions of Texas Roadhouse property in Maine and Colorado. Moreover, there is a two-property portfolio purchase for $7.6 million, as part of the outparcel transaction with Pennsylvania Real Estate Investment Trust, commonly known as “PREIT” (PEI).
Located in Maryland and South California, the properties comprise an IHOP and a multi-tenant BJ’s Restaurants (BJRI - Free Report) , Sleep Number (SNBR - Free Report) and Verizon (VZ - Free Report) . These properties are occupied under net leases with a weighted average remaining term of seven years. Priced at a 6.5% going-in cash cap rate, on a portfolio basis, the transaction marked the fifth and final closing of the PREIT portfolio transaction last November.
This June, Four Corners also closed the second tranche of the acquisitions announced last October from Seritage Growth Properties. The three properties were purchased for $11.3 million and are located in Florida. Being positioned in a strong retail corridor, these properties are likely to keep witnessing solid demand.
While the coronavirus pandemic has hit the restaurant industry hard, the reopening of economy is boosting hopes and things are now looking much better compared with late March, thanks to the recovery in sales. Moreover, as of Jun 18, 2020, the company has been able to collect April, May and June rent payments, totaling roughly 91%, 87% and 87%, respectively, of its portfolio’s contractual base rent for those months. Also, acquisitions are expected to drive growth over the long term.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
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Four Corners on Buyout Spree, Adds LongHorn Steakhouse Asset
Four Corners Property Trust (FCPT - Free Report) recently shelled out $1.8 million for the acquisition of a LongHorn Steakhouse property from Brookfield Properties. The move comes as part of its portfolio-expansion efforts.
This Oklahoma property is corporate-operated under a triple-net lease, with the lease roughly having five years of term remaining. Being positioned in a highly-trafficked retail corridor, it is likely to keep witnessing solid demand. Moreover, with the Brookfield Properties portfolio transaction priced at a cap rate in range with the prior Four Corners transactions, the move seems a strategic fit.
Primarily engaged in the ownership of high-quality net-leased restaurant properties, Four Corners maintains an investment grade financial position (Fitch BBB-) and seeks attractive acquisition opportunities.
Apart from the above-mentioned acquisition, recently the company revealed a couple of other buyouts as well. Among those are the acquisitions of Texas Roadhouse property in Maine and Colorado. Moreover, there is a two-property portfolio purchase for $7.6 million, as part of the outparcel transaction with Pennsylvania Real Estate Investment Trust, commonly known as “PREIT” (PEI).
Located in Maryland and South California, the properties comprise an IHOP and a multi-tenant BJ’s Restaurants (BJRI - Free Report) , Sleep Number (SNBR - Free Report) and Verizon (VZ - Free Report) . These properties are occupied under net leases with a weighted average remaining term of seven years. Priced at a 6.5% going-in cash cap rate, on a portfolio basis, the transaction marked the fifth and final closing of the PREIT portfolio transaction last November.
This June, Four Corners also closed the second tranche of the acquisitions announced last October from Seritage Growth Properties. The three properties were purchased for $11.3 million and are located in Florida. Being positioned in a strong retail corridor, these properties are likely to keep witnessing solid demand.
While the coronavirus pandemic has hit the restaurant industry hard, the reopening of economy is boosting hopes and things are now looking much better compared with late March, thanks to the recovery in sales. Moreover, as of Jun 18, 2020, the company has been able to collect April, May and June rent payments, totaling roughly 91%, 87% and 87%, respectively, of its portfolio’s contractual base rent for those months. Also, acquisitions are expected to drive growth over the long term.
Shares of this Zacks Rank #2 (Buy) stock have appreciated 8.7%, while its industry inched up 1% in the past three months.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>