Four Corners Property Trust (FCPT - Free Report) shelled out $2.1 million to acquire a WellNow Urgent Care property in a strong retail corridor in New York. The move came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
The transaction of this newly constructed property was priced at a cap rate in the range of previous FCPT transactions. The buyout seems a strategic fit for FCPT.
This real estate investment trust (REIT), mainly engaged in owning and acquiring high-quality restaurants and retail properties, has been on an acquisition spree. Recently, FCPT acquired a NAPA Auto Parts property positioned in a strong retail corridor in Indiana for $935,000. The transaction of this property, which is occupied under a net lease with roughly four years of the residual term, was priced at a 6.9% cap rate, exclusive of transaction costs.
Moreover, in February 2023, Four Corners shelled out $2.2 million for the acquisition of a Heartland Dental property located in a strong retail corridor in South Carolina. The property is corporate-operated under a long-term net lease with roughly seven years of the residual term. Exclusive of transaction costs, the transaction was priced at a 7.0% cap rate on rent as of the closing date.
In the same month, FCPT acquired two Caliber Collision properties for $3.8 million, which are located in highly trafficked corridors in Illinois. The properties are corporate-operated under long-term net leases with seven years of the residual term. The transaction was priced at a cap rate of 6.7% on rent as of the closing date, excluding the transaction costs.
Moreover, as part of its capital-recycling efforts, FCPT announced the disposition of a Burger King property in Alabama for $2.4 million in February 2023 and the selloff of a Red Lobster property in North Dakota for $4.7 million in January 2023. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
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.
Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have increased 2.0% so far in the quarter against the industry’s decline of 2.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks from the REIT sector are Alexandria Real Estate Equities, Inc. (ARE - Free Report) and Terreno Realty Corporation (TRNO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Alexandria Real Estate Equities’ 2023 FFO per share has moved a cent north to $ 8.95 over the past week.
The Zacks Consensus Estimate for Terreno Realty Corporation’s ongoing year’s FFO per share has been raised a cent over the past month to $ 2.17 .
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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No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
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Four Corners Property Trust (FCPT - Free Report) shelled out $2.1 million to acquire a WellNow Urgent Care property in a strong retail corridor in New York. The move came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
The transaction of this newly constructed property was priced at a cap rate in the range of previous FCPT transactions. The buyout seems a strategic fit for FCPT.
This real estate investment trust (REIT), mainly engaged in owning and acquiring high-quality restaurants and retail properties, has been on an acquisition spree. Recently, FCPT acquired a NAPA Auto Parts property positioned in a strong retail corridor in Indiana for $935,000. The transaction of this property, which is occupied under a net lease with roughly four years of the residual term, was priced at a 6.9% cap rate, exclusive of transaction costs.
Moreover, in February 2023, Four Corners shelled out $2.2 million for the acquisition of a Heartland Dental property located in a strong retail corridor in South Carolina. The property is corporate-operated under a long-term net lease with roughly seven years of the residual term. Exclusive of transaction costs, the transaction was priced at a 7.0% cap rate on rent as of the closing date.
In the same month, FCPT acquired two Caliber Collision properties for $3.8 million, which are located in highly trafficked corridors in Illinois. The properties are corporate-operated under long-term net leases with seven years of the residual term. The transaction was priced at a cap rate of 6.7% on rent as of the closing date, excluding the transaction costs.
Moreover, as part of its capital-recycling efforts, FCPT announced the disposition of a Burger King property in Alabama for $2.4 million in February 2023 and the selloff of a Red Lobster property in North Dakota for $4.7 million in January 2023. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
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.
Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have increased 2.0% so far in the quarter against the industry’s decline of 2.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some better-ranked stocks from the REIT sector are Alexandria Real Estate Equities, Inc. (ARE - Free Report) and Terreno Realty Corporation (TRNO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Alexandria Real Estate Equities’ 2023 FFO per share has moved a cent north to $ 8.95 over the past week.
The Zacks Consensus Estimate for Terreno Realty Corporation’s ongoing year’s FFO per share has been raised a cent over the past month to $ 2.17 .
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.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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