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Four Corners' (FCPT) 2021 Acquisition Volume Reaches $257M

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·3-min read
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Four Corners Property Trust FCPT recently shelled out $3.5 million to acquire a Chick-fil-A property. The move comes as part of its portfolio-expansion efforts. It marks the last property to be acquired from the previously announced portfolio transactions with Washington Prime. With this buyout, Four Corners has purchased more than $100 million across 59 outparcel properties from Washington Prime.

Located in a dense retail corridor in Connecticut, the property is likely to keep witnessing solid demand. It has a residual lease term of roughly 15 years. The transaction was priced at a cap rate in range with previous FCPT transactions.

Four Corners has been on an acquisition spree. In 2021, the company completed real estate acquisitions of 122 properties for a total investment of roughly $257 million, exclusive of transaction costs.

Apart from the abovementioned Chick-fil-A property buyout, the company recently shelled out $4.5 million to acquire a dual-tenant DaVita Kidney Care and Nephrology Associates property in a strong retail corridor in Florida. Also, Four Corners announced the acquisition of a Red Lobster restaurant property for $1.9 million in a strong retail corridor in New York and a Caliber Collision property for $3.0 million in a dense corridor in Pennsylvania.

Primarily engaged in the ownership and acquisition of high-quality, net-leased restaurants and retail properties, Four Corners seeks potential acquisition opportunities to enhance its portfolio with real estate catering to the restaurant and retail industries. Since initiating its acquisition activity in July 2016, Four Corners has experienced strong acquisition levels. It completed real estate acquisitions of a whopping 101 properties in 2020 for a total of $223 million, with 32% non-restaurant property buyouts.

Four Corners began focusing on non-restaurants as an outgrowth of its outparcel strategy. Presently, FCPT is primarily focusing on auto service and medical retail as these sectors are more resistant to both e-commerce and recessionary pressures.

Four Corners currently carries a Zacks Rank #3 (Hold). Shares of the company have rallied 9% over the past three months, underperforming its industry’s growth of 13.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some better-ranked stocks from the REIT sector include Prologis PLD, CubeSmart CUBE and Rexford Industrial Realty, Inc. REXR.

Prologis carries a Zacks Rank of 2 at present. Prologis’ 2021 FFO per share is expected to increase 8.4% year over year.

The Zacks Consensus Estimate for PLD’s 2021 FFO per share has been revised marginally upward in two months.

The Zacks Consensus Estimate for CubeSmart’s ongoing-year FFO per share has moved nearly 1% north to $2.10 over the past month. Its long-term growth rate is projected at 11.2%.

The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share suggests an increase of 22.1% year over year. Currently, CUBE carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Rexford Industrial’s ongoing-year FFO per share has moved 1.2% north to $1.63 over the past two months.

The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share suggests an increase of 23.5% year over year. Currently, REXR carries a Zacks Rank of 2.

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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Prologis, Inc. (PLD) : Free Stock Analysis Report

CubeSmart (CUBE) : Free Stock Analysis Report

Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report

Four Corners Property Trust, Inc. (FCPT) : Free Stock Analysis Report

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