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Four Corners (FCPT) on Acquisition Spree, Buys Wisconsin Asset

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Four Corners Property Trust (FCPT - Free Report) is on an acquisition spree. It recently announced the purchase of a Midwest Orthopedic Network property in a strong medical corridor in Wisconsin.

FCPT shelled out $4.3 million for the acquisition of this property, which is corporate-operated under a net lease with roughly four years of residual term along with annual rent hikes of 2.5%. The move came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators. The transaction was priced at an 8.1% cap rate, excluding transaction costs.

This latest acquisition announcement comes after the company’s recent purchase of a VCA Animal Hospital property in Virginia for $1.2 million. The property is corporate-operated under a net lease with roughly three years of residual term, and the transaction was priced at a cap rate of 7.6%, excluding transaction costs.

FCPT, which is mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, recently expended $2.5 million to acquire a WellNow Urgent Care property in a strong retail corridor in Indiana. It shelled out $2.2 million to acquire a WellNow Urgent Care center in a strong retail corridor in Indiana and a WellNow Urgent Care property in a strong retail corridor in New York for $2.1 million.

Earlier, the company acquired a Methodist Le Bonheur Pediatric Clinic property located in a strong retail corridor in Tennessee for $3.3 million. FCPT also 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.

The spate of recent acquisitions seems a strategic fit for Four Corners and is likely to generate a stable stream of revenues over the long term, though interest rates hikes and macroeconomic uncertainty remain concerns.

Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have increased 12.3% in the past six months, outperforming the industry’s growth of 6.7%. 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 Americold Realty Trust, Inc. (COLD - Free Report) and Terreno Realty Corporation (TRNO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Americold Realty’s 2023 FFO per share is currently pegged at $1.19, which suggests 7.2% year-over-year growth.

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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