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Four Corners Boosts Portfolio With Acquisition of Multiple Properties

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Four Corners Property Trust (FCPT - Free Report) recently announced the buyout of a Raising Cane's property, a Dollar General property and a Jiffy Lube property for $6.6 million. The move aligns with FCPT’s portfolio expansion efforts.

The sites are situated in strong retail corridors in Texas and Florida. The properties are secured under long-term, triple-net leases with a weighted average term of eight years remaining. The Raising Cane’s and Dollar General properties are operated by corporates, while Jiffy Lube is a franchisee-operated property. The transaction was executed at a capitalization rate of 7.3% on rent net of transaction costs.

FCPT’s Past Acquisitions

Of late, this real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has been on an acquisition spree.

Early in November, Four Corners announced the acquisition of Miller's Ale House property in a strong retail corridor in Georgia for $3.8 million. The property is corporate-operated under a long-term, net lease with around 11 years of term remaining.

FCPT Investor Presentation Oct. '24
Image Source: FCPT Investor Presentation Oct. '24

As per the company’s latest investor presentation, from the beginning of 2024 through Oct. 30, Four Corners acquired 42 properties worth $132 million at a capitalization rate of 7.2% on rents.

As of Oct. 30, 2024, Four Corners’ rental portfolio comprised 1,176 properties in 47 states. The properties are 99.6% occupied under long-term, net leases with a weighted average remaining lease term of around 7.3 years.

These strategic moves not only broaden FCPT's footprint in various states but also ensure portfolio diversification. Such efforts benefit the company and its investors as they gain exposure to growing industries and establish long-term lease agreements with strong tenants.

Moreover, FCPT has a disciplined capital distribution strategy and remains committed to increasing shareholder value through regular dividend hikes. The company has increased its dividend six times in the past five years. In effect to this, the company, on Nov. 11, announced its fourth-quarter dividend of 35.5 cents, an increase of 2.9% over the prior quarter. The dividend will be paid out on Jan. 15, 2025, to shareholders on record as of Dec. 31, 2024.

Over the past six months, shares of this Zacks Rank #3 (Hold) company have risen 17.1% compared with the industry's growth of 11.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Iron Mountain (IRM - Free Report) and Cousins Properties (CUZ - 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 Iron Mountain’s current-year FFO per share has been raised marginally over the past month to $4.49.

The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share has moved marginally northward over the past week to $2.68.

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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