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Four Corners (FCPT) Boosts Portfolio With Property Buyouts
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Four Corners Property Trust (FCPT - Free Report) recently shelled out $8.5 million to acquire a portfolio of three properties from Pennsylvania Real Estate Investment Trust (PEI), commonly known as “PREIT.” The move comes as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
Located in a strong retail corridor in Maryland, the three properties — Miller’s Ale House, Olive Garden and Outback Steakhouse — are likely to keep witnessing solid demand. The properties are occupied under triple net ground leases with a weighted average residual term of roughly eight years. The overall transaction was priced at a cap rate in range with the company’s previous transactions.
Four Corners has been on an acquisition spree. Simultaneously with the Maryland acquisitions, the company announced that it shelled out $6.5 million to acquire a Circle K property and a Firestone property. Positioned in a highly trafficked corridor in Illinois and occupied under long-term, triple net leases with a weighted average of five years of term remaining, the buyouts seem a strategic fit for FCPT.
Apart from these, this month, Four Corners announced the acquisition of a Caliber Collision property for $889,000. It is situated in a highly trafficked corridor in Michigan. Including near-term rent increases and excluding transaction costs, the transaction was priced at a 6.9% capitalization rate.
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%.
In the third quarter too, apart from the abovementioned acquisitions, the company made several other property purchases, including the acquisition of a six-property outparcel portfolio for $14 million.
Apart from the acquisition of several quality restaurants and retail properties, Four Corners experienced continued high rent collections. As of Jun 30, 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 #4 (Sell). Shares of FCPT have increased 3.6% over the past three months compared with the industry’s growth of 5.8%.
Some key picks from the REIT sector include Prologis (PLD - Free Report) and Extra Space Storage Inc. (EXR - Free Report) .
Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ long-term growth rate is projected at 9.0%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past two months.
The Zacks Consensus Estimate for Extra Space Storage’s 2022 FFO per share has moved 1.6% upward in the past month to $8.46. Extra Space Storage’s long-term growth rate is projected at 8.7%. 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.
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Four Corners (FCPT) Boosts Portfolio With Property Buyouts
Four Corners Property Trust (FCPT - Free Report) recently shelled out $8.5 million to acquire a portfolio of three properties from Pennsylvania Real Estate Investment Trust (PEI), commonly known as “PREIT.” The move comes as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
Located in a strong retail corridor in Maryland, the three properties — Miller’s Ale House, Olive Garden and Outback Steakhouse — are likely to keep witnessing solid demand. The properties are occupied under triple net ground leases with a weighted average residual term of roughly eight years. The overall transaction was priced at a cap rate in range with the company’s previous transactions.
Four Corners has been on an acquisition spree. Simultaneously with the Maryland acquisitions, the company announced that it shelled out $6.5 million to acquire a Circle K property and a Firestone property. Positioned in a highly trafficked corridor in Illinois and occupied under long-term, triple net leases with a weighted average of five years of term remaining, the buyouts seem a strategic fit for FCPT.
Apart from these, this month, Four Corners announced the acquisition of a Caliber Collision property for $889,000. It is situated in a highly trafficked corridor in Michigan. Including near-term rent increases and excluding transaction costs, the transaction was priced at a 6.9% capitalization rate.
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%.
In the third quarter too, apart from the abovementioned acquisitions, the company made several other property purchases, including the acquisition of a six-property outparcel portfolio for $14 million.
Apart from the acquisition of several quality restaurants and retail properties, Four Corners experienced continued high rent collections. As of Jun 30, 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 #4 (Sell). Shares of FCPT have increased 3.6% over the past three months compared with the industry’s growth of 5.8%.
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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some key picks from the REIT sector include Prologis (PLD - Free Report) and Extra Space Storage Inc. (EXR - Free Report) .
Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ long-term growth rate is projected at 9.0%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past two months.
The Zacks Consensus Estimate for Extra Space Storage’s 2022 FFO per share has moved 1.6% upward in the past month to $8.46. Extra Space Storage’s long-term growth rate is projected at 8.7%. 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.