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Captec Net Lease Realty Unfazed by Boston Chicken's Bankruptcy

Strategic Insights

— 1 min read

Captec Net Lease Realty, Inc. (CRRR), a real estate investment trust (REIT), has announced that the closure of 20 Boston Market stores due to Boston Chicken's bankruptcy filing will have minimal impact on its operations. Despite this setback, the company remains optimistic about re-tenanting opportunities and expects to maintain its current dividend payment of $1.50 per share annually. According to Chairman and CEO Patrick Beach, the company has been aggressively diversifying its portfolio to reduce exposure to any one brand or tenant.

Key Takeaways:

  • 20 out of 27 Boston Market properties owned by Captec were included in Boston Chicken's bankruptcy filing.
  • The closure of 9 stores is expected to have minimal impact on Captec's operations.
  • All Boston Market leases are current in rental payments through September 1998.
  • Captec is optimistic about re-tenanting opportunities and expects to maintain its current dividend payment.
  • The company has been diversifying its portfolio to reduce exposure to any one brand or tenant.
  • Captec owns a diversified portfolio of 156 freestanding restaurant, retail, and auto dealership properties.
  • The company's primary objective is to build shareholder value through long-term, sustainable growth in per-share funds from operations.

Statistics:

  • 27: Number of Boston Market properties owned by Captec.
  • 20: Number of Boston Market properties included in Boston Chicken's bankruptcy filing.
  • 9: Number of stores closed due to Boston Chicken's bankruptcy filing.
  • $1.50: Captec's current annual dividend payment per share.
  • 156: Number of freestanding restaurant, retail, and auto dealership properties owned by Captec as of June 30, 1998.
  • 60: Number of days Boston Chicken has to decide whether to maintain or terminate its lease on the impacted properties.

Sources:

  • Captec Net Lease Realty, Inc. press release, October 7, 1998.
  • Boston Chicken, Inc. Chapter 11 filing, October 6, 1998.
  • Captec Net Lease Realty, Inc. quarterly report, June 30, 1998.

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