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Four Corners Continues its Acquisition Spree to Boost Portfolio

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Key Takeaways

  • FCPT acquired four Cheddar's Scratch Kitchen properties for $14.7 million, highlighting its expansion efforts.
  • The properties are in Kentucky, Indiana and Virginia retail corridors.
  • All properties are corporate-operated under long-term, triple net leases.

Four Corners Property Trust (FCPT - Free Report) recently acquired four Cheddar's Scratch Kitchen properties for $14.7 million. This acquisition highlights the company’s expansionary and diversification efforts, which will aid future revenue growth.

Two properties are located in strong retail corridors of Kentucky, while one property each is located in Indiana and Virginia. The properties are corporate-operated under long-term, triple-net leases. The transaction was priced at a cap rate that was in line with prior FCPT transactions.

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.

Last week, FCPT announced the acquisition of a portfolio of automotive service properties through a sale-leaseback for $4.7 million from VIVE Collision. In the same period, FCPT acquired an Olive Garden property for $4.1 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 six months, shares of this Zacks Rank #3 (Hold) company have gained 1% compared with the industry's growth of 6.2%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Uniti Group (UNIT - Free Report) and CareTrust REIT (CTRE - 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 UNIT’s 2025 FFO per share stands at $1.50, indicating an increase of 11.1% year over year.

The Zacks Consensus Estimate for CTRE’s 2025 FFO per share is pegged at $1.81, indicating an increase of 20.7% year over year.

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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CareTrust REIT, Inc. (CTRE) - free report >>

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Uniti Group Inc. (UNIT) - free report >>

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