Heading into the new fiscal year, CrossAmerica Partners LP remains focused on optimizing its portfolio to create long-term value for unitholders, CrossAmerica Partners President and CEO Charles Nifong said during the partnership's recent fourth quarter and full year 2023 earnings call.
As part of this strategy, CrossAmerica's efforts to convert certain controlled sites from existing classes of trade to company-operated retail or commission sites will come to fruition with the acquisition of 59 sites from Applegreen Midwest LLC and Applegreen Florida LLC.
The partnership entered into a purchase agreement on Jan. 26 to acquire certain assets from the Applegreen entities. The deal will terminate the existing lease agreements between the two companies at 59 locations and transfer their operations, plus all inventory, to CrossAmerica.
The term length of the partnership's existing leases with Applegreen Midwest and Applegreen Florida can be extended to 2049 and 2048, respectively, including all renewal options.
Subject to customary closing conditions, the deals are expected to close during the first and second quarters of 2024. The transactions will result in the conversion of these 59 lessee dealer sites to company-operated sites.
Referring to the pending acquired sites as "solid assets," Nifong pointed out that the leasing relationship with Applegreen began before The Topper Group assumed control of CrossAmerica in 2019.
Speaking to unit count, Nifong noted that CrossAmerica is up 41 company-operated retail sites year over year 2022 to 2023.
In addition to building upon its network of company-operated sites, CrossAmerica is committed to divesting noncore properties. For the full year ending Dec. 31, 2023, the partnership divested 10 properties for $9.2 million, resulting in a net gain of $6.5 million.
"We were less active with divestitures last year than what we would like and intend to make this an area of increased focus and effort for us in the coming year," Nifong said.
Full story at CrossAmerica Remains Focused on Increasing Company-Operated Site Count | Convenience Store News (csnews.com)
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