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Four Corners Indulges in Another Acquisition to Boost Portfolio

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Four Corners Property Trust (FCPT - Free Report) announced the acquisition of nine American Family Care properties for $21.2 million. This is in addition to the buyout of a series of properties announced by FCPT in the current month. It amplifies its vision of structuring a diversified portfolio, which will help it generate steady revenues over the long run.

American Family Care is a quality-driven healthcare provider that offers a bouquet of services, such as urgent care, family care and primary care, across its portfolio of 384 sites in 33 states.

The acquired properties are corporate-operated and lie in the highly trafficked corridor in Alabama (seven) and Tennessee (two). They are secured under triple-net leases with a weighted average term of 14 years remaining.

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.

Recently, FCPT announced shelling out $13.5 million to purchase two Riverview Health properties through sale-leaseback. At the same time, FCPT announced two additional acquisitions — a MercyOne outpatient clinic property in Iowa for $2.8 million and a P.F. Chang’s bistro property in Illinois for $4.8 million.

In mid-December, FCPT announced the buyout of a City Barbeque property for $2.6 million in a highly trafficked corridor in Georgia. The unit is a new development, corporate-operated with 11 years of term remaining. It also acquired a triple net leased, corporate-operated Panera Bread unit in Indiana for $2 million.Early in December, Four Corners announced the purchase of a corporate-operated, triple-net-leased NAPA Auto Parts property for $2.0 million in New York.

With the above acquisitions, FCPT is attempting to establish itself as a one-stop solution for tenants' various requirements. However, the company’s expansions may face potential headwinds in a still high-interest-rate environment, which could keep its borrowing costs elevated.

Over the past six months, shares of this Zacks Rank #4 (Sell) company have risen 10.6% compared with the industry's growth of 2.5%. However, analysts seem bearish on this stock, with the Zacks Consensus Estimate for its 2024 funds from operations (FFO) per share being lowered marginally over the past two months to $1.72.

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Stocks to Consider

Some better-ranked stocks to consider from the broader REIT sector are Crown Castle Inc. (CCI - Free Report) and SL Green Realty (SLG - 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 Crown Castle Inc.’s current-year FFO per share has moved northward marginally over the past two months to $7.00.

The Zacks Consensus Estimate for SL Green Realty’s current-year FFO per share has been raised by 2.9% over the past month to $7.83.

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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