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Four Corners (FCPT) Boosts Portfolio With Two New Buyouts
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Four Corners Property Trust (FCPT - Free Report) continues its acquisition momentum with the recent announcement of two purchases. It acquired a dual-tenant property housing Outback Steakhouse and Hook & Reel from Seritage Growth Properties (SRG) for $5.2 million. Additionally, FCPT purchased a National Veterinary Associates property for $1.4 million. These acquisitions align with the company's strategy to expand its portfolio, focusing on real estate leased to strong credit operators.
The dual-tenant property, which is located in a strong retail corridor in Ohio, is under net leases. As of May 31, 2023, FCPT has acquired a total of 28 properties for $86 million from Seritage Growth Properties. The recent transaction was executed at a cap rate that falls within the range of prior transactions carried out by the company.
The National Veterinary Associates property, located in Washington, is occupied under a new long-term, triple net lease with annual rent bumps. This transaction too was priced at a cap rate in range with previous FCPT transactions.
These acquisitions exemplify the company's strategic growth plan, underlining its commitment to the ownership, acquisition and leasing of prime restaurant and retail properties to creditworthy operators. The long-term triple net lease assures the generation of steady revenues over the long term.
Recently, FCPT has also made an agreement to acquire up to 14 Darden restaurant properties. It includes 13 Cheddar’s Scratch Kitchen properties and one Olive Garden property and carries a purchase price of up to $85 million on an initial cash rent amounting to $5.35 million. It is slated for closure in the third quarter of 2023.
The company has broadened its portfolio with the acquisition of a McAlister’s Deli property, valued at $2.8 million. The property, situated in a bustling retail area in South Carolina, operates under a triple-net lease with about ten years of the term left.
FCPT completed the purchase of a Heartland Dental property in Missouri for $2.6 million. The property operates under a long-term, triple-net lease with approximately five years remaining on the term. Nonetheless, high interest rates and macroeconomic uncertainty remain key concerns for the company.
FCPT currently carries a Zacks Rank #4 (Sell). Its shares have lost 4.3% in the past month compared with the industry's decline of 10.1%.
The Zacks Consensus Estimate for Rexford Industrial Realty’s current-year funds from operations (FFO) per share has been revised 1.4% north over the past two months to $2.19.
The Zacks Consensus Estimate for Americold Realty Trust’s 2023 FFO per share is pegged at $1.19, with no change over the past two months.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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Four Corners (FCPT) Boosts Portfolio With Two New Buyouts
Four Corners Property Trust (FCPT - Free Report) continues its acquisition momentum with the recent announcement of two purchases. It acquired a dual-tenant property housing Outback Steakhouse and Hook & Reel from Seritage Growth Properties (SRG) for $5.2 million. Additionally, FCPT purchased a National Veterinary Associates property for $1.4 million. These acquisitions align with the company's strategy to expand its portfolio, focusing on real estate leased to strong credit operators.
The dual-tenant property, which is located in a strong retail corridor in Ohio, is under net leases. As of May 31, 2023, FCPT has acquired a total of 28 properties for $86 million from Seritage Growth Properties. The recent transaction was executed at a cap rate that falls within the range of prior transactions carried out by the company.
The National Veterinary Associates property, located in Washington, is occupied under a new long-term, triple net lease with annual rent bumps. This transaction too was priced at a cap rate in range with previous FCPT transactions.
These acquisitions exemplify the company's strategic growth plan, underlining its commitment to the ownership, acquisition and leasing of prime restaurant and retail properties to creditworthy operators. The long-term triple net lease assures the generation of steady revenues over the long term.
Recently, FCPT has also made an agreement to acquire up to 14 Darden restaurant properties. It includes 13 Cheddar’s Scratch Kitchen properties and one Olive Garden property and carries a purchase price of up to $85 million on an initial cash rent amounting to $5.35 million. It is slated for closure in the third quarter of 2023.
The company has broadened its portfolio with the acquisition of a McAlister’s Deli property, valued at $2.8 million. The property, situated in a bustling retail area in South Carolina, operates under a triple-net lease with about ten years of the term left.
FCPT completed the purchase of a Heartland Dental property in Missouri for $2.6 million. The property operates under a long-term, triple-net lease with approximately five years remaining on the term. Nonetheless, high interest rates and macroeconomic uncertainty remain key concerns for the company.
FCPT currently carries a Zacks Rank #4 (Sell). Its shares have lost 4.3% in the past month compared with the industry's decline of 10.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Rexford Industrial Realty (REXR - Free Report) and Americold Realty Trust (COLD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Rexford Industrial Realty’s current-year funds from operations (FFO) per share has been revised 1.4% north over the past two months to $2.19.
The Zacks Consensus Estimate for Americold Realty Trust’s 2023 FFO per share is pegged at $1.19, with no change over the past two months.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.