Four Corners Property Trust (FCPT - Free Report) is on an acquisition spree and recently shelled out $1.8 million for the acquisition of a Wells Fargo retail branch from Brookfield Properties. With this buyout, the company has purchased a total of 16 properties for $27 million related to the Brookfield portfolio transaction announced last October.
This Idaho-property is corporate operated and occupied under a triple-net lease with roughly four years of residual term. The transaction is priced at a cap rate in range with its previous transactions.
Primarily engaged in the ownership of high-quality net-leased restaurant properties, Four Corners maintains an investment-grade financial position. The company seeks attractive acquisition opportunities to enhance its portfolio with real estate catering to restaurant and retail industries.
Apart from the above-mentioned acquisitions, the company recently spent $3.8 million for the acquisition of a Texas Roadhouse property and $3.2 million for the purchase of a LongHorn Steakhouse property from Darden Restaurants (DRI - Free Report) through a sale-leaseback.
The Texas Roadhouse property is corporate operated, occupied under a triple-net lease with roughly 15 years of residual term. The transaction was priced at a 6.3% going-in cash capitalization rate (excluding transaction costs).The LongHorn Steakhouse property in Florida is occupied under a triple-net lease, with roughly five years of residual term and annual rent increases of 1.5%.
While the pandemic has hit the restaurant as well as the retail industry hard, the reopening of economy is reinstating hopes and things are now looking brighter compared with late March, thanks to the recovery in sales. Moreover, the pandemic is opening up acquisition opportunities and Four Corners, with a healthy balance sheet, remains well poised to capitalize on such favorable trends and ride on growth curve.
Shares of this Zacks Rank #3 (Hold) company have appreciated 19.8% over the past six months, outperforming its industry’s rally 18.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) FFO per share estimate for 2020 has been revised 2.6% upward to $1.18 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s (DRE - Free Report) Zacks Consensus Estimate for the current-year FFO per share moved up 3.5% to $1.49 over the past two months. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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