Four Corners Continues Its Acquisition Spree to Boost Portfolio
Four Corners Property Trust FCPT recently acquired the Bojangles property for $2.2 million. This acquisition highlights the company’s expansionary and diversification efforts, which will aid revenue growth.
The property is located in a strong retail corridor in Tennessee. Priced at a 7.1% cap rate on rent as of the closing date, exclusive of transaction costs, the property is corporate-operated under a long-term triple-net lease with nearly six 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 month, FCPT announced the acquisition of four Burger King properties through a sale-leaseback for $8.1 million from Ampler Restaurant Group. It also acquired Mavis Tire Property for $2.6 million this month.
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 a high-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 3.8% against the industry's growth of 3.9%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Plymouth Industrial REIT PLYM and Welltower WELL, 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 PLYM’s 2025 FFO per share has moved 2 cents northward to $1.88 over the past week.
The Zacks Consensus Estimate for WELL’s 2025 FFO per share has moved 4 cents northward to $5.06 over the past month.
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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Four Corners Property Trust, Inc. (FCPT) : Free Stock Analysis Report
Plymouth Industrial REIT (PLYM) : Free Stock Analysis Report
Welltower Inc. (WELL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
