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Four Corners Boosts Financial Flexibility With New Term Loan Facility
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Key Takeaways
FCPT secures a $200M delayed draw term loan facility maturing in April 2033.
FCPT will draw $50M initially, with the rest funding acquisitions in mid-2026.
FCPT gains liquidity, attractive spreads and maintains leverage within a 5.0X-6.0X range.
Four Corners Property Trust (FCPT - Free Report) recently announced that it has entered into a new seven-year, $200 million senior unsecured delayed draw term loan facility. The new arrangement with a group of lenders from its existing credit facility is scheduled to mature in April 2033.
The company plans to draw $50 million of the above at close to fund the immediate investment pipeline and other general corporate purposes. The remainder will be used to fund additional pipeline acquisitions as per the company’s discretion during the late second quarter or early third quarter of 2026.
The term loan facility carries a credit margin of 1.25% over SOFR. As of April 6, 2026, FCPT has 96% of its total outstanding term loans hedged, including the first $50 million draw. It has a 98% fixed rate overall debt profile through November 2027. The company has a current investment grade rating of BBB/Baa3 (Fitch/Moody’s) on its senior unsecured debt. With full withdrawal and deployment of the $200 million term loan facility, FCPT’s estimated run-rate leverage is around 5.4X.
The availability of a new term loan facility priced at highly attractive all-in rates will enable FCPT to fund new property investments at an accretive spread of around 200+ basis points to historical acquisition yields. The delayed draw function will aid in matching FCPT’s sources and uses of capital at no additional cost, providing it with sufficient dry powder, maintaining its net leverage range of 5.0X-6.0X.
Wrapping Up on FCPT
The strong investor interest in the above financing transaction highlights continued confidence in FCPT. The above delayed draw term loan facility boosts its financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for executing its expansion strategy.
However, FCPT’s expansion plans may keep its borrowing costs elevated.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have declined 2% against the industry's growth of 3%.
The Zacks Consensus Estimate for CLDT’s 2026 FFO per share is pegged at $1.20, which indicates year-over-year growth of 17.7%.
The consensus estimate for TRNO’s full-year FFO per share is pinned at $2.79, which calls for a marginal increase from the year-ago period.
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 Boosts Financial Flexibility With New Term Loan Facility
Key Takeaways
Four Corners Property Trust (FCPT - Free Report) recently announced that it has entered into a new seven-year, $200 million senior unsecured delayed draw term loan facility. The new arrangement with a group of lenders from its existing credit facility is scheduled to mature in April 2033.
The company plans to draw $50 million of the above at close to fund the immediate investment pipeline and other general corporate purposes. The remainder will be used to fund additional pipeline acquisitions as per the company’s discretion during the late second quarter or early third quarter of 2026.
The term loan facility carries a credit margin of 1.25% over SOFR. As of April 6, 2026, FCPT has 96% of its total outstanding term loans hedged, including the first $50 million draw. It has a 98% fixed rate overall debt profile through November 2027. The company has a current investment grade rating of BBB/Baa3 (Fitch/Moody’s) on its senior unsecured debt. With full withdrawal and deployment of the $200 million term loan facility, FCPT’s estimated run-rate leverage is around 5.4X.
The availability of a new term loan facility priced at highly attractive all-in rates will enable FCPT to fund new property investments at an accretive spread of around 200+ basis points to historical acquisition yields. The delayed draw function will aid in matching FCPT’s sources and uses of capital at no additional cost, providing it with sufficient dry powder, maintaining its net leverage range of 5.0X-6.0X.
Wrapping Up on FCPT
The strong investor interest in the above financing transaction highlights continued confidence in FCPT. The above delayed draw term loan facility boosts its financial flexibility. The extended maturities of the assumed debt will help the company improve its maturity profile and enjoy greater liquidity for executing its expansion strategy.
However, FCPT’s expansion plans may keep its borrowing costs elevated.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have declined 2% against the industry's growth of 3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Chatham Lodging Trust REIT (CLDT - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Terreno Realty (TRNO - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CLDT’s 2026 FFO per share is pegged at $1.20, which indicates year-over-year growth of 17.7%.
The consensus estimate for TRNO’s full-year FFO per share is pinned at $2.79, which calls for a marginal increase from the year-ago period.
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.