Bill Lenehan, CEO of Four Corners Property Trust, Inc. (NYSE: FCPT), joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.
Four Corners spun off from Darden Restaurants Inc. in November 2015. The REIT operates a portfolio of approximately 440 restaurants located across 44 states.
“We’re in much more of a steady state for growing the portfolio and diversifying,” Lenehan said.
When eyeing acquisitions, Four Corners considers whether the property provides diversification into other restaurant brands, Lenehan explained. Other factors that are considered include the credit rating of the franchisee, the location and reuse potential of the property, the lease length and the outlook for rent growth, he said.
Lenehan said Four Corners prefers to stick to restaurant chains that are household brands, such as Taco Bell, Burger King and Wendy’s.
Meanwhile, Lenehan said that in keeping with its name, the company looks for properties situated on street corners. “That’s a key attribute to strong retail,” he said.