Property

Marin County’s 4 Corners Property Belief Q3 backside line rises amid acquisitions, restaurant restoration

4 Corners Property Belief Inc. (NYSE: FCPT), a Marin County-based retail actual property funding belief, continues to see the rebound of the restaurant enterprise and basic retail amongst its increasing nationwide portfolio.

The Mill Valley-based firm on Tuesday reported a 2.6% annual rise in third-quarter funds from operations to $30 million, or 39 cents a share. FFO is an business metric for evaluating REIT earnings, including depreciation and amortization to web earnings however taking out property positive aspects and losses.

By comparability, quarterly web earnings rose 9.8% over 12 months to $21.2 million.

“We’re more than happy with our funding tempo within the quarter with over $107 million of acquired properties, and a powerful pipeline heading into the fourth quarter,” mentioned CEO Invoice Lenehan within the announcement of monetary outcomes. “We acquired net-lease properties with nice manufacturers and fundamentals.”

The belief acquired 53 properties within the quarter for a complete of $107.4 million, with an preliminary weighted common money yield (capitalization fee) of 6.4% and a median remaining lease time period of 10.3 years.

That introduced the portfolio as of Sept. 30 to 886 properties in 46 states. Actual property investments and leases totaled $1.74 billion on the finish of the quarter.

The REIT continues its technique to diversify from solely restaurant properties, with over half the third-quarter acquisitions being in that class, notably in medical retail and auto companies, in keeping with the corporate. Because the first acquisitions of different sorts of retail properties in October 2019, such holdings have totaled 105 and accounted for 8.3% of the portfolio annualized base hire.

Tenants are maintaining with hire funds, with 99.8% being paid within the third quarter, the corporate mentioned. That dipped to 91% and 92% in Might and June 2020 as many eating places have been closed throughout the early section of the coronavirus pandemic.

Quarterly rental income was $43.7 million, up 12.3% from a 12 months earlier than.

Fast-service and informal eating eating places are doing higher financially nationwide now than they have been earlier than the pandemic, in keeping with Baird Restaurant Surveys knowledge as of Oct. 17 that the belief cited. Similar-store gross sales for such eating places are up 12% from 2019 total, with fast service up 18% and informal up 4%.

That’s after informal eating same-store gross sales dropped by greater than half within the second quarter of 2020 from the identical interval in 2019, whereas quick-service revenues have been nonetheless 6% above the 12 months earlier than..

4 Corners Property Belief began in July 2015 as a full subsidiary of Darden Eating places, the Orlando-based proprietor of restaurant chains reminiscent of Olive Backyard and LongHorn Steakhouse. Darden spun off the belief with 418 restaurant properties that November in a $315 million deal.

At present, properties leased to Darden manufacturers make up 61% of portfolio base hire.

Kerrow Holdings, a subsidiary of the REIT, operates seven LongHorn Steakhouse eating places, franchised from Darden, situated within the San Antonio, Texas space.

The belief’s inventory worth closed Tuesday at $29.70 a share, up 41 cents, or 1.4%.

Jeff Quackenbush covers wine, building and actual property. Earlier than the Enterprise Journal, he wrote for Bay Metropolis Information Service in San Francisco. He has a level from Walla Walla College. Attain him at jquackenbush@busjrnl.com or 707-521-4256.

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