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Four Corners Enhances Portfolio With $3M Property Buyout

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As part of its portfolio-expansion efforts, Four Corners Property Trust (FCPT - Free Report) recently shelled out $3 million for the purchase of a Caliber Collision property. The Illinois property is occupied under a net lease, with roughly 15 years of residual term.

The property is corporate operated and was recently redeveloped. Being positioned in a highly-trafficked retail corridor, this property is likely to keep witnessing solid demand. Moreover, the buyout seems a strategic one, with the transaction being priced at a 6.5% going-in cash capitalization rate (excluding transaction costs).

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 fortify its portfolio with real estate catering to restaurant and retail industries.

In addition to the above-mentioned acquisitions, the company has purchased a Wells Fargo retail branch for $1.8 million. Further, the company has acquired a LongHorn Steakhouse property from Darden Restaurants (DRI - Free Report) for $3.2 million through a sale-leaseback among a host of other acquisitions in recent months.

The pandemic has hit the restaurant as well as the retail industry hard. However, the reopening of economy is reinstating hopes and things are now looking brighter compared with late March, thanks to the recovery in sales. Furthermore, the pandemic is opening up acquisition opportunities and Four Corners, with a healthy balance sheet, is well poised to bank on such favorable trends and ride on its growth curve.

Shares of this Zacks Rank #3 (Hold) company have appreciated 39.3% over the past six months, while its industry has rallied 11.6%. 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) 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 for 2020 has been revised 1.8% 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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