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Four Corners (FCPT) Expands Portfolio, Buys Restaurant Property
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Four Corners Property Trust (FCPT - Free Report) recently purchased a Cooper’s Hawk Restaurant property for $6.9 million. The move came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
Primarily engaged in the ownership and acquisition of high-quality restaurants and retail properties, Four Corners seeks potential acquisition opportunities to enhance its portfolio. Hence, the latest buyout seems a strategic fit, with Cooper’s Hawk being a fine dining restaurant brand with more than 60 locations concentrated in the Midwest, Florida and the Mid-Atlantic.
Located in a highly trafficked corridor in Illinois, this newly built property is under a long-term, triple net lease with roughly 16 years of residual term. As such, the property is likely to generate steady revenues over the long term.
Recently, as part of its capital recycling efforts, FCPT announced the disposition of a Red Lobster property in Ohio for $4.9 million. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
Four Corners has indeed been on an acquisition spree and recently purchased three Sun Auto Tire & Service properties for $9.1 million. This acquisition involved properties that are located in strong retail corridors in Missouri and corporate-operated under long-term, triple net leases.
Moreover, Four Corners shelled out $12.3 million for purchasing a Cheesecake Factory property and a dual-tenant StarbucksSBUX and AT&TT property. Located in a highly trafficked corridor in Kansas, these properties, which are corporate-operated under net leases, have a weighted average of roughly seven years of residual term.
Moreover, in the third quarter of 2022, FCPT acquired 26 properties for a combined purchase price of $69.9 million at an initial weighted average cash yield of 6.3%. The buyouts seem a strategic fit for Four Corners and are likely to generate steady revenues over the long term.
However, rate hikes, inflation and macroeconomic uncertainty are raising concerns. FCPT has witnessed marginal downward revisions in estimates for both 2022 and 2023 funds from operations per share over the past month to $1.63 and $1.68, respectively.
Four Corners currently carries a Zacks Rank #4 (Sell). Shares of FCPT have rallied 7.6% so far in the quarter, outperforming the industry’s increase of 2.4%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties Inc. (VICI - Free Report) and Lamar Advertising Company (LAMR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Lamar Advertising Company’s ongoing year’s FFO per share has been raised 1.4% over the past two months to $7.34.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Four Corners (FCPT) Expands Portfolio, Buys Restaurant Property
Four Corners Property Trust (FCPT - Free Report) recently purchased a Cooper’s Hawk Restaurant property for $6.9 million. The move came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
Primarily engaged in the ownership and acquisition of high-quality restaurants and retail properties, Four Corners seeks potential acquisition opportunities to enhance its portfolio. Hence, the latest buyout seems a strategic fit, with Cooper’s Hawk being a fine dining restaurant brand with more than 60 locations concentrated in the Midwest, Florida and the Mid-Atlantic.
Located in a highly trafficked corridor in Illinois, this newly built property is under a long-term, triple net lease with roughly 16 years of residual term. As such, the property is likely to generate steady revenues over the long term.
Recently, as part of its capital recycling efforts, FCPT announced the disposition of a Red Lobster property in Ohio for $4.9 million. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
Four Corners has indeed been on an acquisition spree and recently purchased three Sun Auto Tire & Service properties for $9.1 million. This acquisition involved properties that are located in strong retail corridors in Missouri and corporate-operated under long-term, triple net leases.
Moreover, Four Corners shelled out $12.3 million for purchasing a Cheesecake Factory property and a dual-tenant Starbucks SBUX and AT&T T property. Located in a highly trafficked corridor in Kansas, these properties, which are corporate-operated under net leases, have a weighted average of roughly seven years of residual term.
Moreover, in the third quarter of 2022, FCPT acquired 26 properties for a combined purchase price of $69.9 million at an initial weighted average cash yield of 6.3%. The buyouts seem a strategic fit for Four Corners and are likely to generate steady revenues over the long term.
However, rate hikes, inflation and macroeconomic uncertainty are raising concerns. FCPT has witnessed marginal downward revisions in estimates for both 2022 and 2023 funds from operations per share over the past month to $1.63 and $1.68, respectively.
Four Corners currently carries a Zacks Rank #4 (Sell). Shares of FCPT have rallied 7.6% so far in the quarter, outperforming the industry’s increase of 2.4%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties Inc. (VICI - Free Report) and Lamar Advertising Company (LAMR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for VICI Properties’ 2022 FFO per share has moved 3.2% north to $1.92 over the past month. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lamar Advertising Company’s ongoing year’s FFO per share has been raised 1.4% over the past two months to $7.34.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.