Four Corners Property Trust FCPT recently announced the acquisition of a Tires Plus property for $1.7 million.
The property is located in a highly trafficked corridor in Georgia. Priced at a 7.4% cap rate on rent as of the closing date, exclusive of transaction costs, the property is corporate-operated under a triple-net lease with approximately three years remaining.
Four Corners also acquired an automotive service property for $5.8 million. Leased to a national operator, this newly constructed property is located in a highly trafficked corridor in Texas. Priced at a 6.8% cap rate on rent as of the closing date, exclusive of transaction costs, the property is under a corporate long-term, triple-net lease. This will help secure FCPT's long-term cash flows.
These acquisitions highlight the company’s expansionary and diversification efforts, which will aid future revenue growth.
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.
In the last week of May 2025, FCPT announced the acquisition of the Christian Brothers Automotive property through a sale-leaseback for $4.3 million. The company also acquired an automotive service property for $5.3 million.
The above purchases fall in line with FCPT’s strategy of structuring a portfolio that will withstand varied economic cycles. However, the company’s expansion may face potential headwinds in an elevated interest-rate environment, which could keep its borrowing costs high.
In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 1.7% compared with the industry's fall of 0.6%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and Medical Properties Trust MPW, 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 VICI’s 2025 FFO per share has moved one cent northward to $2.34 over the past two months.
The consensus estimate for MPW’s 2025 FFO per share has remained unchanged at 62 cents over the past two months.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
