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Four Corners (FCPT) on Buying Spree, Acquires Indiana Asset

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Four Corners Property Trust (FCPT - Free Report) shelled out $2.5 million to acquire a WellNow Urgent Care property in a strong retail corridor in Indiana. The move came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.

The property is corporate-operated under a long-term, net lease, and the transaction was priced at a cap rate in the range of previous FCPT transactions. The portfolio is likely to generate steady revenues over the long term, making Four Corners’ latest buyout a strategic fit.

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 announced the acquisition of a Methodist Le Bonheur Pediatric Clinic property located in a strong retail corridor in Tennessee for $3.3 million. The transaction was priced at a 6.9% cap rate on rent as of the closing date and excluding transaction costs.

Moreover, FCPT shelled out $2.2 million to acquire a WellNow Urgent Care center in a strong retail corridor in Indiana. Also, FCPT acquired a WellNow Urgent Care property in a strong retail corridor in New York for $2.1 million.

Apart from the abovementioned acquisition, recently, FCPT 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.

These acquisitions seem a strategic fit for Four Corners and are likely to generate a stable stream of revenues over the long term. However, increasing interest rates and macroeconomic uncertainty are raising concerns.

Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have increased 0.7% in the past three months against the industry’s decline of 1.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research
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Stocks to Consider

Some better-ranked stocks from the REIT sector are Alexandria Real Estate Equities, Inc. (ARE - Free Report) and Terreno Realty Corporation (TRNO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Alexandria Real Estate Equities’ 2023 FFO per share has moved a cent north to $8.95 over the past month.
 
The Zacks Consensus Estimate for Terreno Realty Corporation’s ongoing year’s FFO per share has been raised two cents over the past two months to $2.17.

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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