Why Is This High-Yield REIT Buying So Many Medical Retail Properties?
Four Corners Property Trust (NYSE: FCPT) is a net-lease real estate investment trust (REIT) focused heavily on restaurant assets. But from the day it went public, management has been looking to create more diversity in the portfolio. There's been a sizable push of late into medical retail. Here's why.
REIT Four Corners was created by restaurant giant (NYSE: DRI). It was a way for the owner of Olive Garden and other brands to raise cash, essentially by selling its properties to Four Corners in sale/leaseback deals. Darden retained control of the properties via long-term net leases (net leases require the tenant to pay for most property-level expenses) and Four Corners got a large, reliable tenant. The only problem was that Four Corners effectively had only one tenant.
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Source Fool.com
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