Four Corners Property Trust (NYSE:FCPT), a real estate investment trust engaged in the ownership of high-quality, net-leased restaurant properties (FCPT or the Company) is pleased to announce the acquisition of three corporate-operated Chilis restaurants through a sale-leaseback transaction with certain subsidiaries of Brinker International, Inc. (NYSE: EAT) for a purchase price of $9.0 million on initial annual cash rent of approximately $570,000. The properties are under individual leases with 15 years of initial term, rent increases of 10% every five years during the initial term and have a corporate guarantee from Brinker International, Inc. FCPT believes that rent is well-supported with conservative EBITDAR coverage, averaging 3.8x for the three restaurants. The properties are located in Texas (1) and Oklahoma (2), and are within well-located retail corridors with high traffic and attractive demographics. This transaction is independent from and not related to our previous Brinker transaction announced in August 2018.
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, on a net basis, for use in the restaurant and related food services industry. Additional information about FCPT can be found on the website at https://www.fcpt.com/.