Four Corners Property Trust FCPT recently announced the acquisition of a Patient First Urgent Care property for $6.6 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 Pennsylvania. Priced at a cap rate in line with the company’s previous transactions, the property is corporate-operated under a long-term triple-net lease.
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 a Bojangles property for $2.2 million. It also acquired four Burger King properties through a sale-leaseback for $8.1 million from Ampler Restaurant Group.
The above purchases fall in line with Four Corners’ 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 elevated.
In the past three months, shares of this Zacks Rank #3 (Hold) company have declined 7.1% against the industry‘s growth of 1.4%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are W.P. Carey WPC and Terreno Realty TRNO, 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 WPC’s 2025 FFO per share has been moved southward over the past month to $4.87.
The consensus estimate for TRNO’s 2025 FFO per share has been revised upward marginally to $2.61 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.
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This article originally published on Zacks Investment Research (zacks.com).
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