FCPT Diversifies Portfolio with City Barbeque Acquisition

Four Corners Property Trust (FCPT) has announced the acquisition of a City Barbeque property for $2.6 million, further diversifying its portfolio and strengthening its financial position. This strategic move aligns with FCPT's long-term investment strategy and brand diversification efforts, as the company continues to expand its tenant base and reduce its reliance on a single brand.

FCPT's acquisition of a City Barbeque property is a significant step towards achieving its diversification goals. As of the closing date, City Barbeque is now FCPT's 17th largest brand by cash rent, comprising approximately 0.6% of the Company's total cash rent. This acquisition contributes to FCPT's ongoing efforts to reduce tenant concentration, with Darden Restaurants now comprising less than 50% of the Company's cash rent.

The cap rate for the City Barbeque property acquisition was 6.9%, which is consistent with FCPT's previous transactions. This consistency suggests that FCPT maintains a disciplined underwriting strategy, focusing on high-quality properties with attractive yields. The cap rate of 6.9% for this acquisition is slightly higher than the 6.5% average cap rate of FCPT's previous acquisitions, indicating a relatively lower price paid for the property and potentially a more attractive investment opportunity.

The acquisition of the City Barbeque property is expected to generate significant cash flow, contributing to FCPT's overall portfolio performance. With a cap rate of 6.9%, the property is projected to yield approximately $177,400 in annual rent. This acquisition aligns with FCPT's strategy of acquiring high-quality, net-leased properties, further diversifying its portfolio and strengthening its financial position.

FCPT's acquisition of the City Barbeque property also aligns with its long-term investment strategy and brand diversification efforts. As of the closing date, City Barbeque is now FCPT's 14th largest brand by cash rent, further diversifying its portfolio. This acquisition maintains the strength of FCPT's portfolio while adhering to its high-quality underwriting standards.

In conclusion, FCPT's acquisition of a City Barbeque property for $2.6 million is a strategic move that contributes to its brand diversification efforts and strengthens its financial position. The acquisition aligns with FCPT's disciplined underwriting strategy and long-term investment goals, further expanding its tenant base and reducing its reliance on a single brand. As FCPT continues to grow its portfolio, investors can expect the company to maintain its focus on high-quality, net-leased properties and strategic diversification efforts.