Back to top

Image: Bigstock

Four Corners (FCPT) Continues Expansion With $2.1M Purchase

Read MoreHide Full Article

Four Corners Property Trust (FCPT - Free Report) recently shelled out $2.1 million for acquiring a LongHorn Steakhouse property. The move is in line with its portfolio-expansion efforts. The acquisition comes as part of a Brookfield Properties transaction announced last October. With this buyout, the company has now acquired 17 properties, for a total price of $29 million.

This Oklahoma property is corporate-operated under a triple-net lease, with roughly seven years of term remaining. Being positioned in a highly-trafficked retail corridor, the property is likely to keep witnessing solid demand. Moreover, with the Brookfield Properties portfolio transaction priced at a cap rate in range with the prior Four Corners transactions, the move is a strategic fit.

Primarily engaged in the ownership of high-quality net-leased restaurant properties, Four Corners maintains an investment-grade financial position and seeks solid acquisition opportunities to enhance its portfolio with real estate catering to restaurant and retail industries.

The company has been on an acquisition spree, and recently announced the purchase of a Chick-fil-A restaurant property in Missouri from Seritage Growth Properties for $1.5 million. Four Corners also announced the acquisition of a portfolio of 13 KFC properties for $21.7 million. Situated in Alabama, the properties have roughly 14 years of residual lease term and annual rent increases of 2%.

The pandemic has hit the restaurant as well as the retail industry hard, and rent collections have been dreary. However, the reopening of economy is reinstating hopes and things are now looking brighter compared with late March, thanks to the gradual recovery in sales.

Four Corners currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 18.8% over the past three months, outperforming its industry’s rally of 7.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

CubeSmart’s (CUBE - Free Report) Zacks Consensus Estimate for 2020 funds from operations (FFO) per share has moved up 1.8% to $1.66 over the past two months. The company currently carries a Zacks Rank of 2.

Rexford Industrial Realty, Inc.’s (REXR - Free Report) FFO per share estimate for the current year has been revised upward by 1.6% to $1.30 in the past two months. The company carries a Zacks Rank of 2, currently.

City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share has moved 5.3% north to $1.20 in two months’ time. The company holds a Zacks Rank of 2 at present.

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.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>