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Four Corners (FCPT) Boosts Portfolio, Buys Property for $3.3M
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Four Corners Property Trust (FCPT - Free Report) announced the acquisition of a Methodist Le Bonheur Pediatric Clinic property located in a strong retail corridor in Tennessee for $3.3 million. The move is in line with the company’s portfolio-expansion efforts, with real estate leased to strong credit operators.
The property is occupied under a net lease, with around four years of term remaining. Priced at a 6.9% cap rate on rent as of the closing date and excluding transaction costs, the buyout seems a strategic fit for FCPT. The portfolio is likely to generate steady revenues over the long term.
Of late, this real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has been on an acquisition spree.
Recently, FCPT shelled out $2.2 million to acquire a WellNow Urgent Care center in a strong retail corridor in Indiana. The transaction of the corporate-operated property was priced at a cap rate in the range of previous FCPT transactions.
In a similar move, on Mar 20, 2023, FCPT acquired a WellNow Urgent Care property in a strong retail corridor in New York for $2.1 million.
Moreover, in the same month, the company acquired an Aspen Dental property located in a strong retail corridor in New Mexico for $1.9 million and a NAPA Auto Parts property in a strong retail corridor in Indiana for $935,000.
Additionally, in February 2023, Four Corners shelled out $2.2 million to acquire a Heartland Dental property at a strong retail corridor in South Carolina. The property is corporate-operated under a long-term net lease, with roughly seven years of the residual term.
Further, as part of its capital-recycling efforts, FCPT announced the disposition of a Burger King property in Alabama for $2.4 million in February 2023 and the selloff of a Red Lobster property in North Dakota for $4.7 million in January 2023. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
The buyouts seem a strategic fit for Four Corners and are likely to generate steady revenues over the long term. However, increasing interest rates and macroeconomic uncertainty are raising concerns.
FCPT currently carries a Zacks Rank #3 (Hold). Its shares have gained 1.1% in the quarter-to-date period against the real estate market’s fall of 3.9%.
The Zacks Consensus Estimate for Alexandria Real Estate’s 2023 FFO per share is pegged at $8.95.
The Zacks Consensus Estimate for Terreno Realty’s current-year FFO per share is pinned at $2.17.
The Zacks Consensus Estimate for Service Properties Trust’s 2023 FFO per share is pegged at $1.89.
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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Four Corners (FCPT) Boosts Portfolio, Buys Property for $3.3M
Four Corners Property Trust (FCPT - Free Report) announced the acquisition of a Methodist Le Bonheur Pediatric Clinic property located in a strong retail corridor in Tennessee for $3.3 million. The move is in line with the company’s portfolio-expansion efforts, with real estate leased to strong credit operators.
The property is occupied under a net lease, with around four years of term remaining. Priced at a 6.9% cap rate on rent as of the closing date and excluding transaction costs, the buyout seems a strategic fit for FCPT. The portfolio is likely to generate steady revenues over the long term.
Of late, this real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has been on an acquisition spree.
Recently, FCPT shelled out $2.2 million to acquire a WellNow Urgent Care center in a strong retail corridor in Indiana. The transaction of the corporate-operated property was priced at a cap rate in the range of previous FCPT transactions.
In a similar move, on Mar 20, 2023, FCPT acquired a WellNow Urgent Care property in a strong retail corridor in New York for $2.1 million.
Moreover, in the same month, the company acquired an Aspen Dental property located in a strong retail corridor in New Mexico for $1.9 million and a NAPA Auto Parts property in a strong retail corridor in Indiana for $935,000.
Additionally, in February 2023, Four Corners shelled out $2.2 million to acquire a Heartland Dental property at a strong retail corridor in South Carolina. The property is corporate-operated under a long-term net lease, with roughly seven years of the residual term.
Further, as part of its capital-recycling efforts, FCPT announced the disposition of a Burger King property in Alabama for $2.4 million in February 2023 and the selloff of a Red Lobster property in North Dakota for $4.7 million in January 2023. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
The buyouts seem a strategic fit for Four Corners and are likely to generate steady revenues over the long term. However, increasing interest rates and macroeconomic uncertainty are raising concerns.
FCPT currently carries a Zacks Rank #3 (Hold). Its shares have gained 1.1% in the quarter-to-date period against the real estate market’s fall of 3.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Alexandria Real Estate Equities (ARE - Free Report) and Terreno Realty (TRNO - Free Report) , each currently carrying a Zacks Rank #2 (Buy), and Service Properties Trust (SVC - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alexandria Real Estate’s 2023 FFO per share is pegged at $8.95.
The Zacks Consensus Estimate for Terreno Realty’s current-year FFO per share is pinned at $2.17.
The Zacks Consensus Estimate for Service Properties Trust’s 2023 FFO per share is pegged at $1.89.
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.