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Four Corners Continues Its Acquisition Spree to Boost Portfolio

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Key Takeaways

  • Four Corners bought a Bojangles property in Tennessee for $2.2 million.
  • The deal closed at a 7.1% cap rate on rent, excluding transaction costs.
  • The site is under a long-term triple-net lease with nearly six years remaining.

Four Corners Property Trust (FCPT - Free Report) recently acquired the Bojangles property for $2.2 million. This acquisition highlights the company’s expansionary and diversification efforts, which will aid revenue growth.

The property is located in a strong retail corridor in Tennessee. Priced at a 7.1% cap rate on rent as of the closing date, exclusive of transaction costs, the property is corporate-operated under a long-term triple-net lease with nearly six years of term remaining.

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.

This month, FCPT announced the acquisition of four Burger King properties through a sale-leaseback for $8.1 million from Ampler Restaurant Group. It also acquired Mavis Tire Property for $2.6 million this month.

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 a high-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 3.8% against the industry's growth of 3.9%.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Plymouth Industrial REIT (PLYM - Free Report) and Welltower (WELL - 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 PLYM’s 2025 FFO per share has moved 2 cents northward to $1.88 over the past week.

The Zacks Consensus Estimate for WELL’s 2025 FFO per share has moved 4 cents northward to $5.06 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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Four Corners Property Trust, Inc. (FCPT) - free report >>

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