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Four Corners Continues Its Acquisition Spree to Boost Portfolio

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Key Takeaways

  • FCPT acquired Crash Champions and Olive Garden properties, expanding its portfolio across Ohio and Illinois.
  • Crash Champions property was bought for $2.6M at a 7.2% cap rate with about nine years of net lease left.
  • Olive Garden property costs $2.2M at a 6.7% cap rate with about eight years triple net lease left.

Four Corners Property Trust (FCPT - Free Report) recently announced the acquisition of a Crash Champions property for $2.6 million. The move highlights the company’s expansionary and diversification efforts, aiding stable revenue generation.

The property is located in a strong retail corridor in Ohio and is corporate-operated under a long-term, net lease with approximately nine years of term remaining. The transaction was priced at a 7.2% cap rate, including rent credits received at closing and exclusive of transaction costs.

FCPT also acquired an Olive Garden property for $2.2 million in a highly trafficked corridor in Illinois. Priced at a 6.7% cap rate on rent as of the closing date and exclusive of transaction costs, the property is corporate-operated under a long term, triple-net lease with approximately eight 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 week, FCPT announced the acquisition of an Applebee's property for $4.3 million in a strong retail corridor in California. The company also acquired a newly constructed National Veterinary Associates property for $4.4 million in a highly trafficked corridor in Georgia.

The above purchases fall in line with Four Corners’ strategy of structuring a portfolio that will withstand varied economic cycles. However, the company’s growth plans could encounter challenges due to its sizable $1.23 billion debt load as of Sept. 30, 2025.

In the past month, shares of this Zacks Rank #4 (Sell) company have declined 3.1% compared with the industry's fall of 3.3%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Crown Castle (CCI - Free Report) and Lamar Advertising (LAMR - 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 CCI’s 2025 FFO per share has been moved two cents northward over the past two months to $4.30.

The consensus estimate for LAMR’s 2025 FFO per share has been revised a cent upward to $8.19 over the past week.

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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