FCPT Announces Disposition Of A Red Lobster Property For $5.9 Million
Portfolio Pulse from Happy Mohamed
Four Corners Property Trust (NYSE:FCPT) has announced the sale of a Red Lobster property for $5.9 million. The property is located in Minnesota and is corporate-operated under a triple net lease. The company plans to reinvest the proceeds into new investment opportunities. FCPT anticipates using a 1031-Exchange, which allows for the deferral of capital gains taxes, but if it fails to identify and acquire replacement properties within specified timeframes, it will have to pay taxes on any gain from the sale.
September 01, 2023 | 8:06 pm
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NEUTRAL IMPACT
The sale of the Red Lobster property could provide FCPT with additional capital for new investments. However, the company's stock could be negatively impacted if it fails to identify and acquire replacement properties within the specified timeframes, resulting in a tax liability.
The sale of the property provides FCPT with additional capital for new investments, which could potentially increase the company's value. However, the use of a 1031-Exchange introduces a level of risk, as failure to identify and acquire replacement properties within the specified timeframes would result in a tax liability, which could negatively impact the company's financial position and stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100