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Four Corners Continues Its Acquisition Spree to Boost Portfolio

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Key Takeaways

  • FCPT acquires a Tires Plus property in Georgia for $1.7M at a 7.4% cap rate under a triple-net lease.
  • FCPT adds a newly built automotive service property for $5.8M in Texas under a long-term, triple-net lease.
  • Both deals reflect its ongoing expansion and diversification efforts to support future revenue growth.

Four Corners Property Trust (FCPT - Free Report) recently announced the acquisition of a Tires Plus property for $1.7 million.

The property is located in a highly trafficked corridor in Georgia. Priced at a 7.4% cap rate on rent as of the closing date, exclusive of transaction costs, the property is corporate-operated under a triple-net lease with approximately three years remaining.

Four Corners also acquired an automotive service property for $5.8 million. Leased to a national operator, this newly constructed property is located in a highly trafficked corridor in Texas. Priced at a 6.8% cap rate on rent as of the closing date, exclusive of transaction costs, the property is under a corporate long-term, triple-net lease. This will help secure FCPT's long-term cash flows.

These acquisitions highlight the company’s expansionary and diversification efforts, which will aid future revenue growth.

FCPT: In a Snapshot

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 the last week of May 2025, FCPT announced the acquisition of the Christian Brothers Automotive property through a sale-leaseback for $4.3 million. The company also acquired an automotive service property for $5.3 million.

The above purchases fall in line with FCPT’s strategy of structuring a portfolio that will withstand varied economic cycles. However, the company’s expansion may face potential headwinds in an elevated interest-rate environment, which could keep its borrowing costs high.

In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 1.7% compared with the industry's fall of 0.6%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are VICI Properties (VICI - Free Report) and Medical Properties Trust (MPW - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for VICI’s 2025 FFO per share has moved one cent northward to $2.34 over the past two months.

The consensus estimate for MPW’s 2025 FFO per share has remained unchanged at 62 cents 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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