Print News Release

FCPT Announces $150 Million Strategic Venture with Lubert-Adler

10/05/2020

MILL VALLEY, Calif.--(BUSINESS WIRE)-- Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership of high-quality, net-leased restaurant properties (“FCPT” or the “Company”), is pleased to announce a strategic venture to invest up to $150 million (the “Venture”) with Lubert-Adler Real Estate Funds, a leading real estate private equity investor (“Lubert-Adler”). The Venture will focus on acquiring vacant retail real estate that will be principally re-tenanted with credit-worthy brand operators expanding their store count. Both FCPT and Lubert-Adler bring significant attributes to the Venture. FCPT has meaningful restaurant investing experience, access to restaurant real estate deal flow, long-standing tenant relationships, and acquisition execution capabilities. Lubert-Adler brings decades of retail real estate acquisition and repositioning experience to the Venture, having re-tenanted 170 million square feet of retail properties, in addition to having relevant financial capabilities. FCPT will invest up to $20 million into the Venture, with Lubert-Adler contributing the remainder of the capital. In addition, FCPT will have the right, but not the obligation, to purchase properties from the Venture for FCPT’s long-term ownership portfolio once the properties are stabilized.

FCPT’s exposure to vacant properties will be separately managed from its core operations. FCPT does not anticipate any impact from the Venture to its core business focus on acquiring high quality real estate leased to best-in-class restaurant and retail operators. Further, FCPT does not anticipate any impact to its leverage or credit profile from participating in the Venture. The Venture will have a multi-year investment period and will be fully compliant with FCPT’s REIT status. While the Venture will look to invest in vacant properties in the near term, the long-term nature of the leasing and asset stabilization process means it may be several years before FCPT purchases assets from the Venture, and may never purchase assets from the Venture.

Bill Lenehan, CEO of FCPT, commented: “Organizing appropriate capital to purchase well located but vacant restaurant properties has been on our mind for some time. This venture allows us to apply our core sector expertise to high-return opportunities prudently and efficiently relative to our shareholders’ capital and low risk tolerance. This venture has the potential to lead to a future pipeline for our core business at attractive economics. Most importantly, however, by keeping retail areas occupied and vibrant, we will be aiding the surrounding communities in their recovery from the economic impact of COVID-19. Lubert-Adler has significant access to acquisition opportunities and deep tenant relationships. We are excited to be partnered with them in the venture and are looking forward to working with their long-standing operating and co-investment partners who possess significant experience in this field.”

Dean Adler, CEO and Co-Founder of Lubert-Adler, added: “Regrettably, the business interruption caused by COVID-19 to the retail and restaurant sector will cause many operators to close their doors permanently. Our goal is to bring in new tenants that will replace vacant buildings with jobs for those communities. While our focus will remain on stabilizing retail corridors, we also believe this to be a generational distressed investment opportunity akin to acquiring housing after the Great Financial Crisis. Over the last 20 years we have successfully purchased over 3,000 retail properties and repositioned them. We are very familiar with the process of value-add retail investing and believe that FCPT, as the industry sharp-shooter, is an ideal partner to execute this strategy with us.”

About FCPT

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease for use in the restaurant and retail industries. Additional information about FCPT can be found on their website at www.fcpt.com.

About Lubert-Adler

Since being formed in 1997, Lubert-Adler has raised and deployed over $8 billion of equity capital in $20 billion of real estate assets. Lubert-Adler focuses on creating value from “asset-rich” retailers, adapting real estate use of historic buildings into vibrant multifamily properties, and financial restructurings including upgrading and repositioning distressed real estate; investments have included re-tenanting vacant stores of Albertsons, Levitz, Mervyns, ShopKo and Toys “R” Us. Lubert-Adler is also a significant investor in Albertsons. Additional information about Lubert-Adler can be found on their website at www.lubertadler.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding FCPT’s intent, belief or expectations, including, but not limited to, statements regarding: operating and financial performance; and expectations regarding the Venture. Words such as “anticipate(s),” “expect(s),” “intend(s),” “plan(s),” “believe(s),” “may,” “will,” “would,” “could,” “should,” “seek(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. Forward-looking statements speak only as of the date on which such statements are made and, except in the normal course of FCPT’s public disclosure obligations, FCPT expressly disclaims any obligation to publicly release any updates or revisions to any forward-looking statements to reflect any change in FCPT’s expectations or any change in events, conditions or circumstances on which any statement is based. Forward-looking statements are based on management’s current expectations and beliefs and FCPT can give no assurance that its expectations or the events described will occur as described. For a further discussion of these and other factors that could cause FCPT’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in FCPT’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by FCPT from time to time with the Securities and Exchange Commission.

Four Corners Property Trust:
Bill Lenehan, 415-965-8031
CEO

Gerry Morgan, 415-965-8032
CFO

Source: Four Corners Property Trust

View all news