Back to top

Image: Bigstock

Four Corners Expands Portfolio With Multiple Property Acquisitions

Read MoreHide Full Article

Key Takeaways

  • FCPT acquired five properties for $11.6M, including a Tires Plus site and four pet health locations.
  • The Mission Pet Health assets were priced at a 6.9% cap rate with about 11 years of lease term remaining.
  • FCPT continues diversifying its portfolio, though a $1.21B debt load may keep borrowing costs elevated.

Four Corners Property Trust (FCPT - Free Report) recently announced multiple acquisitions aggregating $11.6 million. The move underscores the company’s efforts to expand and diversify its portfolio.

The company bought out a Tires Plus property in the strong retail corridor in Georgia for $2.3 million. Priced at a cap rate in line with the previous transactions, the property is corporate-operated under a long-term triple-net lease.

FCPT also acquired four Mission Pet Health properties for $9.3 million, three located in strong retail corridors in Illinois and one in Wisconsin. Priced at a 6.9% cap rate on rent as of the closing date and excluding the transaction costs, the properties are corporate-operated under long-term net leases with a weighted average of 11 years of term remaining.

More on FCPT

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 December, FCPT acquired a newly constructed Jiffy Lube automotive property for $2.7 million. The property is located in a strong retail corridor in Colorado and is corporate-operated under a long-term triple-net lease with approximately 12 years of term remaining.

In the third quarter of 2025, FCPT acquired 28 properties totaling $82 million, with a weighted-average remaining lease term of 11.6 years. The acquired properties belonged to diverse industries, boosting stability in revenue generation. 39% were medical, 36% auto service, 16% quick service restaurants and 9% casual dining restaurants by purchase price.

The above purchases fall in line with Four Corners’ strategy of structuring a resilient portfolio that will withstand varied economic cycles. However, the company’s growth plans could encounter challenges due to its sizable $1.21 billion debt load, which may continue to keep borrowing costs high.

In the past three months, shares of this Zacks Rank #4 (Sell) company have declined 9.7% compared with the industry's fall of 0.2%.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and Digital Realty Trust (DLR - Free Report) , each carrying a Zacks Rank of 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 Cousins Properties’ 2025 FFO per share is pegged at $2.84, which indicates year-over-year growth of 5.6%.

The Zacks Consensus Estimate for DLR’s full-year FFO per share stands at $7.35, which calls for an increase of 9.5% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

Published in