Back to top

Image: Bigstock

FCPT Continues With Expansionary Efforts, Buys Applebee's Property

Read MoreHide Full Article

Key Takeaways

  • FCPT acquired an Applebee's site for $4.3M, leased under a triple-net deal with seven years remaining.
  • FCPT bought a $4.4M National Veterinary Associates property on a long-term net lease with 15 years remaining.
  • Recent acquisitions across medical, auto service and dining diversify revenues, yet debt levels pose risks.

Four Corners Property Trust (FCPT - Free Report) recently announced the acquisition of an Applebee's property for $4.3 million. The move highlights expansionary and diversification efforts.

The property is located in a strong retail corridor in California and is franchisee-operated by Flynn Group under a triple-net lease with seven years of term remaining. Priced at a 6.2% cap rate on base rent and a 7.4% cap rate inclusive of estimated percentage rent, both as of the closing date and exclusive of transaction costs, the buyout will be value accretive for FCPT, laying the ground for long-term growth.

FCPT also acquired a newly constructed National Veterinary Associates property for $4.4 million in a highly trafficked corridor in Georgia. Priced at a 6.7% cap rate on rent as of the closing date and excluding the transaction costs, the property is corporate-operated under a long-term net lease with a weighted average of 15 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 mid-December, FCPT acquired multiple properties aggregating $11.6 million. 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.

Over the past three months, shares of this Zacks Rank #4 (Sell) company have declined 4.1% compared with the industry's fall of 0.9%.

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 Host Hotels & Resorts (HST - 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 HST’s full-year FFO per share stands at $2.05, which calls for an increase of 4.1% 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