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FCPT Expands Portfolio With Hawaiian Bros Sale-Leaseback Deal

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Key Takeaways

  • FCPT acquired two Hawaiian Bros properties for $5.9M through a sale-leaseback deal.
  • The newly built sites sit in strong retail corridors and carry long-term triple-net leases.
  • Recent buys and portfolio mix show FCPT's diversification amid rising competition for deals.

Four Corners Property Trust (FCPT - Free Report) recently announced the acquisition of two Hawaiian Bros properties through a sale-leaseback for $5.9 million from Stine Enterprises. With more than 60 locations, mostly in Kansas City, Dallas and Phoenix, Hawaiian Bros is a fast casual restaurant chain that serves fresh food plate lunches.

The newly constructed properties are located in the strong retail corridors in Arizona and Texas. Priced at a cap rate in line with previous such transactions, the properties are franchise-operated under long-term, triple-net leases.

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.

Early this month, FCPT acquired three automotive service properties through sale-leaseback for $5.9 million, located in strong retail corridors in Missouri.

In the third quarter of 2025, Four Corners expanded its portfolio by acquiring 28 properties worth $82 million at a 6.8% cap rate. Of the acquired properties, 39% were medical retail, 36% auto service, 16% quick service and 9% casual dining restaurants.

The above highlights FCPT’s diversification efforts, lending stability to its portfolio. However, the company’s expansion may face potential headwinds as there is increasing competition from private equity funds in raising capital for net lease deals. Higher competition can pressure acquisition yields and reduce FCPT’s ability to find attractive deals.

In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 6.3% against the industry's growth of 1.4%.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are W.P. Carey (WPC - Free Report) and Terreno Realty (TRNO - 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 WPC’s 2025 FFO per share has been moved northward by a cent over the past month to $4.92.

The consensus estimate for TRNO’s 2025 FFO per share has been revised upward by 4.6% to $2.71 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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