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Four Corners (FCPT) Acquires Red Robin Property From PREIT

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Four Corners Property Trust (FCPT - Free Report) recently announced the acquisition of a Red Robin property for $2.4 million from Pennsylvania Real Estate Investment Trust (PEI - Free Report) , commonly known as “PREIT.” The move comes as part of its PREIT transaction previously announced in June 2022 for portfolio expansion.

Located in a strong retail corridor in Maryland, the property is likely to keep witnessing solid demand. It is occupied under a triple net lease to the corporate entity, with roughly four years of term remaining. The overall transaction was priced at a 6.5% going-in cash capitalization rate, excluding transaction costs.

Earlier in June, Four Corners announced that it signed a definitive agreement for the purchase of 11 outparcel properties from PREIT for $32.5 million. The retail outparcels are located within highly trafficked and populated corridors in Maryland, Massachusetts, Pennsylvania and South Carolina.

The portfolio comprised eight single-tenant restaurant properties and three non-restaurant retail properties and each property has a separate, individual lease. The leases have a current weighted average residual term of roughly eight years. A large chunk of the portfolio is expected to be acquired in the second and third quarters of 2022.

Primarily engaged in the ownership and acquisition of high-quality, net-leased restaurants and retail properties, Four Corners seeks potential acquisition opportunities to enhance its portfolio with real estate catering to the restaurant and retail industries. Recently, the company shelled out $2.2 million to acquire a DaVita Kidney Care property, which is positioned in a highly trafficked corridor in Kansas and occupied under a net lease to the corporate entity, with around seven years of term remaining.

Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have declined 3.3% over the past three months compared with the industry’s decline of 16.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some key picks from the REIT sector include Extra Space Storage Inc. (EXR - Free Report) and OUTFRONT Media (OUT - Free Report) .

The Zacks Consensus Estimate for Extra Space Storage’s 2022 funds from operations (FFO) per share has moved marginally upward in the past month to $8.25. EXR presently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for OUTFRONT Media’s ongoing year’s FFO per share has been raised 7.7% over the past two months to $2.09. OUT sports a Zacks Rank #1 currently.

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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