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Highlights

  • $9.5 million spent on three Express Oil Change locations in high-traffic Georgia areas
  • Properties have approximately 19 years remaining on triple net leases
  • Acquisition closed at a 6.6% capitalization rate, excluding transaction costs

Four Corners Property Trust (NYSE: FCPT), a real estate investment trust focused on net-leased retail and restaurant properties, has acquired three Express Oil Change & Tire Engineers locations for a total purchase price of $9.5 million. The properties are located in Georgia, situated along high-traffic corridors, and are operated under corporate-backed leases.

The transaction was executed at a 6.6% cap rate based on rent at the time of closing, excluding transaction costs. Each of the properties is leased on a triple net basis, with roughly 19 years remaining on the lease terms. This structure shifts operational expenses such as taxes, insurance, and maintenance to the tenant, typically providing more predictable cash flows for landlords like FCPT.

With this acquisition, FCPT continues to expand its footprint in the automotive services segment of net-leased retail, a sector that offers longer lease durations and stable tenancy through corporate operators. While the company has historically concentrated on restaurants, this move aligns with ongoing diversification strategies in retail-focused REIT portfolios.

Triple net leases are commonly valued for their reduced landlord obligations and potential for consistent income over long durations. The relatively high cap rate of 6.6% suggests a return above the average for similar retail assets, particularly those backed by corporate tenants with long lease terms.

This latest acquisition fits FCPT’s model of acquiring properties with long-term leases and stable tenant profiles. Though limited in size, the deal reflects the company’s incremental approach to portfolio expansion.

The properties are expected to contribute immediately to FCPT’s rental income stream, though no forward guidance or earnings projections were included with the announcement.