Yahoo Finance Four Corners Property Trust (FCPT) on an Acquisition Spree
Four Corners Property Trust FCPT recently shelled out $1.2 million to acquire a Mr. Tire property. The move comes as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
Located in a highly trafficked corridor in New Jersey, the property is likely to keep witnessing solid demand. It is occupied under a net ground lease with around 10 years of residual term. The transaction was priced at a 6.5% capitalization rate, exclusive of transaction costs.
Four Corners has been on an acquisition spree. Recently, the company shelled out $2.3 million to acquire a Buffalo Wild Wings property in a strong retail corridor in Illinois.
Also, FCPT announced the acquisition of a Capital One property and a ground lease Chuck E. Cheese property for $3.3 million from Pennsylvania Real Estate Investment Trust (PEI), commonly known as “PREIT.” Located in strong retail corridors in Maryland and South Carolina, respectively, and with both the properties occupied under triple net leases and having a current weighted average remaining term of around six years, the acquisition seems a strategic fit for the company.
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. In the second quarter of 2022, FCPT acquired 26 properties for a combined purchase price of $54 million at an initial weighted average cash yield of 6.4%.
Apart from the acquisition of several quality restaurant and retail properties, Four Corners experienced continued high rent collections. As of Jun 3, 2022, FCPT received rent payments representing 99.9% of its portfolio contractual base rent for the second quarter of 2022.
Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have increased 8.9% over the past three months compared with the industry’s growth of 5.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Stocks to Consider
Some key picks from the REIT sector include Prologis PLD and Extra Space Storage Inc. EXR.
Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ long-term growth rate is projected at 9.8%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past month.
The Zacks Consensus Estimate for Extra Space Storage’s 2022 FFO per share has moved marginally upward in the past month to $8.30. Extra Space Storage’s long-term growth rate is projected at 8.2%. EXR presently 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prologis, Inc. (PLD) : Free Stock Analysis Report
Extra Space Storage Inc (EXR) : Free Stock Analysis Report
Four Corners Property Trust, Inc. (FCPT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
