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Four Corners (FCPT) Boosts Portfolio With Property Buyouts
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Four Corners Property Trust (FCPT - Free Report) is on an acquisition spree. Recently, the company shelled out $715,000 for the purchase of an Advance Auto Parts property and $8.7 million for the acquisition of three WellNow Urgent Care properties from ComptonAddy. The moves came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
The buyouts seem to be a strategic fit for FCPT and are likely to generate steady revenues over the long term. Located in a highly trafficked corridor in Michigan, the Advance Auto Parts property is occupied under a net lease to the corporate entity with roughly three years of term remaining.
Moreover, the WellNow Urgent Care properties are newly built and positioned in strong retail corridors in Ohio. The properties are corporate-operated under net leases with a residual term of 10 years.
While the transaction of the Advance Auto Parts property was priced at a 7.9% capitalization rate, the same for the WellNow Urgent Care properties was priced at a 6.2% cap rate on rent as of the closing date, both excluding transaction costs.
Apart from the recent acquisitions, Four Corners recently shelled out $10.2 million to acquire two Buffalo Wild Wings properties in strong retail corridors in New Jersey. The properties are occupied under a triple net master lease with 20 years of residual term and annual rent hikes of 2%.
Also, last month, the company acquired a portfolio of three properties from Pennsylvania Real Estate Investment Trust , commonly known as “PREIT”, for $8.5 million.
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. In the second quarter of 2022, FCPT acquired 26 properties for a combined purchase price of $54 million at an initial-weighted average cash yield of 6.4%.
However, Four Corners currently carries a Zacks Rank #4 (Sell). Shares of FCPT have dropped 17.6% over the past six months, narrower than the industry’s decline of 30.9%.
Some key picks from the REIT sector include Extra Space Storage Inc. (EXR - Free Report) and Terreno Realty Corporation (TRNO - Free Report) .
Extra Space Storage presently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for EXR’s 2022 FFO per share has moved marginally upward in the past month to $8.48. Extra Space Storage’s long-term growth rate is projected at 8.8%.
The Zacks Consensus Estimate for Terreno Realty’s 2022 FFO per share has moved marginally upward in the past two months to $1.93. TRNO presently 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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Four Corners (FCPT) Boosts Portfolio With Property Buyouts
Four Corners Property Trust (FCPT - Free Report) is on an acquisition spree. Recently, the company shelled out $715,000 for the purchase of an Advance Auto Parts property and $8.7 million for the acquisition of three WellNow Urgent Care properties from ComptonAddy. The moves came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
The buyouts seem to be a strategic fit for FCPT and are likely to generate steady revenues over the long term. Located in a highly trafficked corridor in Michigan, the Advance Auto Parts property is occupied under a net lease to the corporate entity with roughly three years of term remaining.
Moreover, the WellNow Urgent Care properties are newly built and positioned in strong retail corridors in Ohio. The properties are corporate-operated under net leases with a residual term of 10 years.
While the transaction of the Advance Auto Parts property was priced at a 7.9% capitalization rate, the same for the WellNow Urgent Care properties was priced at a 6.2% cap rate on rent as of the closing date, both excluding transaction costs.
Apart from the recent acquisitions, Four Corners recently shelled out $10.2 million to acquire two Buffalo Wild Wings properties in strong retail corridors in New Jersey. The properties are occupied under a triple net master lease with 20 years of residual term and annual rent hikes of 2%.
Also, last month, the company acquired a portfolio of three properties from Pennsylvania Real Estate Investment Trust , commonly known as “PREIT”, for $8.5 million.
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. In the second quarter of 2022, FCPT acquired 26 properties for a combined purchase price of $54 million at an initial-weighted average cash yield of 6.4%.
However, Four Corners currently carries a Zacks Rank #4 (Sell). Shares of FCPT have dropped 17.6% over the past six months, narrower than the industry’s decline of 30.9%.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some key picks from the REIT sector include Extra Space Storage Inc. (EXR - Free Report) and Terreno Realty Corporation (TRNO - Free Report) .
Extra Space Storage presently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for EXR’s 2022 FFO per share has moved marginally upward in the past month to $8.48. Extra Space Storage’s long-term growth rate is projected at 8.8%.
The Zacks Consensus Estimate for Terreno Realty’s 2022 FFO per share has moved marginally upward in the past two months to $1.93. TRNO presently 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.