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Four Corners (FCPT) Buys Mercy Health Clinic Property for $3.8M
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Four Corners Property Trust (FCPT - Free Report) is continuing its acquisition drive with the buyout of a Mercy Health Clinic property, located in a strong retail corridor in Missouri, for $3.8 million. In operation since 1871, Mercy Health Clinic is one of the largest health systems in the United States. The buyout aligns with FCPT’s portfolio expansion efforts, with real estate leased to strong credit operators.
The property is corporate-operated under a triple net lease with five years of residual term and is likely to generate steady revenues. Priced at a cap rate of 7.1% on rent as of the closing date, excluding transaction costs, FCPT’s latest acquisition seems prudent.
This real estate investment trust (REIT) is mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties. It is making efforts to enhance its portfolio quality and bolster growth through strategic acquisitions.
In May, Four Corners announced the purchase of eight Mavis Tire and affiliated operated properties for $20 million. Located across Alabama, Georgia, Louisiana, New Jersey, New York and Tennessee, each of these properties is operated under a long-term, triple net lease.
Moreover, in the same month, Four Corners announced the acquisition of a Longhorn Steakhouse property for $2 million. Located in a highly trafficked corridor in Illinois, the property is corporate-operated under a net lease.
These strategic moves not only broaden FCPT's footprint in various sectors but also ensure portfolio diversification. This benefits both the company and its investors as they gain exposure to growing industries and establish long-term lease agreements with strong tenants.
Moreover, during the first quarter, Four Corners acquired four properties for a combined purchase price of $15.9 million at an initial weighted average cash yield of 6.9% on rents in place as of Mar 31, 2023, and a weighted average remaining lease term of 9.9 years.
As of Mar 31, 2024, Four Corners’ rental portfolio comprised 1,115 properties located in 47 states. The properties are 99.6% occupied under long-term, net leases with a weighted average remaining lease term of around 7.6 years.
However, the company’s expansions may face potential headwinds in a high-interest-rate environment, which could increase borrowing costs for future acquisitions.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have gained 0.2% against the industry's decline of 1.6%.
Image: Bigstock
Four Corners (FCPT) Buys Mercy Health Clinic Property for $3.8M
Four Corners Property Trust (FCPT - Free Report) is continuing its acquisition drive with the buyout of a Mercy Health Clinic property, located in a strong retail corridor in Missouri, for $3.8 million. In operation since 1871, Mercy Health Clinic is one of the largest health systems in the United States. The buyout aligns with FCPT’s portfolio expansion efforts, with real estate leased to strong credit operators.
The property is corporate-operated under a triple net lease with five years of residual term and is likely to generate steady revenues. Priced at a cap rate of 7.1% on rent as of the closing date, excluding transaction costs, FCPT’s latest acquisition seems prudent.
This real estate investment trust (REIT) is mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties. It is making efforts to enhance its portfolio quality and bolster growth through strategic acquisitions.
In May, Four Corners announced the purchase of eight Mavis Tire and affiliated operated properties for $20 million. Located across Alabama, Georgia, Louisiana, New Jersey, New York and Tennessee, each of these properties is operated under a long-term, triple net lease.
Moreover, in the same month, Four Corners announced the acquisition of a Longhorn Steakhouse property for $2 million. Located in a highly trafficked corridor in Illinois, the property is corporate-operated under a net lease.
These strategic moves not only broaden FCPT's footprint in various sectors but also ensure portfolio diversification. This benefits both the company and its investors as they gain exposure to growing industries and establish long-term lease agreements with strong tenants.
Moreover, during the first quarter, Four Corners acquired four properties for a combined purchase price of $15.9 million at an initial weighted average cash yield of 6.9% on rents in place as of Mar 31, 2023, and a weighted average remaining lease term of 9.9 years.
As of Mar 31, 2024, Four Corners’ rental portfolio comprised 1,115 properties located in 47 states. The properties are 99.6% occupied under long-term, net leases with a weighted average remaining lease term of around 7.6 years.
However, the company’s expansions may face potential headwinds in a high-interest-rate environment, which could increase borrowing costs for future acquisitions.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have gained 0.2% against the industry's decline of 1.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Americold Realty Trust (COLD - Free Report) and Peakstone Realty Trust (PKST - 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 COLD’s 2024 funds from operation (FFO) per share has moved 5.9% northward over the past month to $1.44.
The Zacks Consensus Estimate for PKST’s current-year FFO per share has been raised 6.8% over the past two months to $3.28.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.