Back to top

Image: Bigstock

FCPT Resorts to Sale-Leaseback With Burger King Properties' Buyout

Read MoreHide Full Article

Key Takeaways

  • FCPT bought four Burger King properties for $8.1M at a 6.8% cap rate through a sale-leaseback.
  • New properties in Ohio, Kentucky and Virginia are under 19-year triple-net franchise leases.
  • Over 12 months, FCPT acquired $344M in properties, diversifying into new brands and sectors.

Four Corners Property Trust (FCPT - Free Report) recently announced the purchase of four Burger King properties through a sale-leaseback for $8.1 million from Ampler Restaurant Group. The move highlights FCPT’s expansionary efforts to diversify and improve its portfolio quality through acquisitions.

The newly constructed properties are located in the strong retail corridors in Ohio, Kentucky and Virginia. Priced at a 6.8% cap rate on rent as of the closing date, exclusive of transaction costs, the properties are franchise-operated under long-term, triple-net leases, with 19 years of term remaining. This will aid in securing long-term cash flows for the company.

FCPT’s Past Acquisitions

This real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has a track record of acquisitions.

In the second quarter of 2025, Four Corners expanded its portfolio with total acquisitions worth $84 million at a 6.7% cap rate. Over the last 12 months, as of June 30, 2025, the company has acquired properties aggregating $344 million at attractive pricing.

Through the above acquisitions, FCPT has diversified more than half of its portfolio into new restaurant brands, medical retail and auto service, ensuring stable and steady revenue generation.

As per Four Corners’ July Investor Presentation, its portfolio comprises mainly outparcel properties in high-density retail corridors. Around 76% of its rent features unique benefits compared to a regular net lease. These benefits include high rent coverage properties from companies like Darden (DRI - Free Report) and Chili’s (EAT - Free Report) , along with ground leases, master leases and investment-grade guarantors or operators.

However, the company’s expansion may face potential headwinds in a still high-interest-rate environment, which could keep its borrowing costs elevated.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Darden Restaurants, Inc. (DRI) - free report >>

Brinker International, Inc. (EAT) - free report >>

Four Corners Property Trust, Inc. (FCPT) - free report >>

Published in