Four Corners Property Trust (FCPT Quick QuoteFCPT - Free Report) is continuing its acquisition drive with the buyout of the newly constructed Fast Pace Health property, located in a strong retail corridor in Louisiana, for $2.1 million. Fast Pace Health is an urgent care provider with more than 200 healthcare centers across the United States. The buyout aligns with FCPT’s portfolio-expansion efforts, with real estate leased to strong credit operators.

The property is occupied under long-term net leases and is priced at a cap rate in range with the prior FCPT transactions. The portfolio is likely to generate steady revenues over the long term, making this latest buyout a strategic fit.

It also acquired two newly constructed Fast Pace Health properties in May, located in strong retail corridors in Indiana and Louisiana, for $4.9 million, to broaden its portfolio.

This real estate investment trust (REIT), which is mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has been very active on the acquisition front lately. It recently concluded the buyout of a Fresenius Medical Care property in Georgia for $2.6 million, priced at a cap rate of 6.9%, excluding transaction costs.

The company also concluded the buyout of three W.W. Williams properties, strategically located in the strong industrial corridors in Michigan and Ohio, for $10.3 million, through a sale-leaseback deal. These are corporate-operated under long-term, triple net leases, with roughly 15 years of the remainder term, along with four to five-year options and annual rent hikes of 2%. The buyout was priced at a cap rate of 7.1%, excluding transaction costs.

This May, FCPT also acquired a dual-tenant property housing, Outback Steakhouse and Hook & Reel, from Seritage Growth Properties for $5.2 million. In the same month, it added a National Veterinary Associates property in Washington to its portfolio for $1.4 million.

FCPT also signed 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.

These acquisitions exemplify Four Corners’ 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.

Additionally, it disposed of a Burger King property in Virginia for $2.1 million. This disposition comes as part of its strategic efforts, and Four Corners plans to redeploy the proceeds into new investment prospects, in sync with its thresholds.

FCPT currently carries a Zacks Rank #3 (Hold). Its shares have gained 1.1% in the past six months against the industry's decline of 2.2%.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the REIT sector are Rexford Industrial Realty (REXR Quick QuoteREXR - Free Report) and Equity Commonwealth , 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 0.5% north over the past two months to $2.19.

The Zacks Consensus Estimate for Equity Commonwealth’s 2023 FFO per share has been revised 18.9% north over the past two months to 88 cents.

Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.