Dining Out For Dividends

The Four Corners portfolio was originally formed through a selection of 424 high-quality Darden restaurant properties with stable cash flows and strong rent coverage. Under the terms of the spin-off, Darden distributed all of the outstanding Four Corners shares pro rata to Darden's shareholders.


  • Darden was able to commence the spin just in time, as a U.S. House amendment to a Congressional tax bill was legalized preventing similar tax-free REIT spin-offs.
  • The bill essentially forced companies that wanted to spin off their real estate into a REIT to be taxed.
  • I am more attracted to the dining chain than the landlord.