Four Corners Property Trust (FCPT - Free Report) recently shelled out $3.8 million for the acquisition of a BJ's Restaurants’ (BJRI - Free Report) property in Texas. The move comes as part of a two-property sale-leaseback with BJ's Restaurants.
The corporate-operated property is occupied under a triple-net lease with roughly 15 years of term and four 5-year options. Moreover, the buyout seems a strategic one, with the transaction being priced at a cap rate in range with its previous transactions.
Additionally, the companies amended seven existing lease agreements with rent increase, term extension and inclusion of annual sales reporting among other items, in exchange for tenant allowance funds.
Primarily engaged in the ownership of high-quality net-leased restaurant properties, Four Corners maintains an investment-grade financial position and seeks attractive acquisition opportunities. Recently, the company shelled out $7 million for the acquisition of two properties from Seritage Growth Properties, as part of its portfolio-expansion efforts through the Seritage transaction, which was announced last October and was expanded last month.
With the acquisition, aggregate portfolios between Four Corners Property Trust and Seritage totaled 32 properties for $96 million, of which 17 properties worth $55 million have closed so far. Furthermore, the company announced the acquisition of a Tires Plus property for $2.2 million in August.
While the pandemic has hit the restaurant industry hard, the reopening of economy is boosting hopes and things are now looking much better compared with late March, thanks to the recovery in sales. In addition, as of Jul 29, 2020, the company managed to collect July, June, May and April rent payments, totaling 99%, 91%, 90% and 95%, respectively, of its portfolio’s contractual base rent for those months. Furthermore, the company’s acquisitions are expected to drive growth over the long term.
Shares of this Zacks Rank #2 (Buy) company have appreciated 65.2% over the past six months, while its industry has rallied 26.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) Zacks Consensus Estimate for the ongoing-year funds from operations (FFO) per share moved 2.6% north to $1.18 in the past month. The stock currently carries a Zacks Rank of 2 (Buy).
Sabra Healthcare REIT, Inc.’s (SBRA - Free Report) FFO per share estimate 2020 has been revised 3.6% upward to $1.74 over the past month. The company currently carries a Zacks Rank of 2.
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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