Currently, the REIT has another $174.4 million of restaurant properties under contract, the majority of which is expected to close by year-end, according to Curtis McWilliams, president and CEO. He adds that theREIT is facing stiff competition from other investors, which has created a challenging acquisition environment.
"We continue to see new market entrants playing in the restaurant space," he says. "The good news is that restaurant operators are recognizing the value of working with a trusted landlord, which will favor Trustreet going forward."
The REIT also is benefiting from the strong acquisition market as it sells off pieces of its portfolio, which at the end of the second quarter, consisted of 1,768 properties with a 94.1% occupancy rate. The portfolio produced $18.6 million in funds from operations, representing 32 cents per share. During the second quarter, the REIT sold 33 properties for a total of $70.8 million. The dispositions produced a net gain to the company of $11.4 million.
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