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FCPT Acquires Properties Through Sale-Leaseback, Diversifies Portfolio

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Four Corners Property Trust (FCPT - Free Report) recently announced the purchase of nine Burger King properties through a sale-leaseback for $19.9 million from Ampler Restaurant Group. The move highlights FCPT’s efforts to diversify and improve its portfolio quality through acquisitions.

The properties are located in the strong retail corridors in Tennessee. Priced at a 6.8% cap rate on rent as of the closing date, exclusive of transaction costs, the properties are franchise-operated under long-term, triple-net leases, with 20 years of term remaining. This will aid in securing long-term cash flows for the company.

FCPT’s Past Acquisitions

This real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has a track record of acquisitions.

In March 2025, FCPT expanded its portfolio with the acquisition of six Whataburger properties from MWB Restaurants for $16.8 million through a sale-leaseback. Located in the strong retail corridors in Alabama and franchise-operated under long-term, triple-net leases, the properties are newly constructed with 20 years of lease term remaining.

In 2024, FCPT acquired a total of 87 properties, representing an investment of approximately $265 million. The above purchases signify FCPT’s strategy of structuring a bouquet portfolio that will ensure stable and steady revenues. However, the company’s expansion 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 7.1%, outperforming the industry's growth of 4.6%. Analysts seem bullish on this stock, with the Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share being revised northward by 1.1% over the past month to $1.77.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower (WELL - 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 Welltower’s 2025 FFO per share has been moved marginally northward to $4.93 over the past week.

The consensus estimate for Cousins Properties’ 2025 FFO per share has been moved upward by 1.8% to $2.79 over the past month.

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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