Bill Lenehan, CEO of Four Corners Property Trust (NYSE: FCPT), participated in a video interview in conjunction with Nareit’s REITweek: 2022 Investor Conference in New York on June 7-9.
Lenehan discussed a recent Four Corners acquisition of 12 NAPA Auto Parts properties for $21.1 million, calling the company a “great tenant.”
“[The purchase was] very consistent with our stated strategy of acquiring retail assets that are net leased…[specifically] restaurants, auto service, and medical retail,” Lenehan said. “Last year we bought 122 buildings for just over $250 million.”
Lenehan also discussed the fact that Four Corners’ initial portfolio consisted of more than 400 Darden Restaurants, principally Olive Garden and LongHorn Steakhouse restaurants, and that Darden continues to represent 59% of the REIT’s rental revenue. He noted that as a Darden board member, he helped to create Four Corners as a spin-off in 2015.
“[Darden is an] investment-grade company, very conservatively run,” Lenehan said. “But frankly, all of our tenants have done quite well.”
Turning to economic concerns, Lenehan said Four Corners has been “careful and deliberate” in building its portfolio with high-quality tenants with good credit while offering low rents, which he says has put the REIT in a good position to survive difficult financial times.