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FCPT Acquires Properties Through Sale-Leaseback, Bolsters Portfolio

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Four Corners Property Trust (FCPT - Free Report) recently announced the purchase of six Burger King properties through a sale-leaseback for $10.1 million. The move highlights FCPT’s efforts to diversify and improve its portfolio quality through acquisitions.

The properties are located in the highly trafficked corridors in Texas. Guaranteed by Burger King corporate, the properties are each operated under long-term, triple-net leases. The transaction was priced at a cap rate in line with prior FCPT transactions.

FCPT’s Past Acquisitions

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.

Last month, FCPT expanded its portfolio with the acquisition of an automotive service property for $4.9 million, leased to a national operator. The property is located in the highly trafficked corridor in Ohio and is corporate-operated under a long-term, triple-net lease. In 2024, FCPT acquired a total of 87 properties, representing an investment of approximately $265 million.

The above purchases signify FCPT’s vision of structuring a bouquet portfolio that will ensure stable and steady revenues. However, the company’s expansions may face potential headwinds in a still high-interest-rate environment, which could keep its borrowing costs elevated.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have risen 3.4% compared with the industry's growth of 5.3%. Analysts seem bullish on this stock, with the Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share being moved northward marginally over the past month to $1.77.

Zacks Investment Research
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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are SBA Communications (SBAC - Free Report) and Cousins Properties (CUZ - 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 SBA Communications’2025 FFO per share has been moved marginally northward to $12.91 over the past two months.

The consensus estimate for Cousins Properties’ 2025 FFO per share has been moved marginally upward to $2.78 over the past week.

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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