Four Corners Property Says Olive Garden and LongHorn Extensions Show 'Proof of Concept'

Dow Jones10-15

1815 ET [Dow Jones]--Over a decade past a spinoff from Darden Restaurants, Four Corners Property Trust has vastly diversified and expanded, with 1,328 properties as of the 2Q portfolio overview included in a July presentation. Darden accounted for 41% of annual cash base rent in the 2Q, compared with 100% in 2015, after years of expansion into non-Darden restaurants and sectors like auto service. But Darden ties remain strong. On Wednesday, FCPT reported extensions for 100% of the Olive Garden and LongHorn leases maturing in 2027. Leases were extended by about five years. "This master agreement represents our first opportunity to provide proof of concept for the high renewal rate and sustainable rent levels in the original spin-off portfolio." The agreement includes an early exercise for several leases maturing in more than two years "underscoring the confidence Darden has in our properties," FCPT said.

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