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FCPT Announces Buyout of 19 Bloomin' Brands Restaurant Properties
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Four Corners Property Trust (FCPT - Free Report) recently announced the acquisition of 19 Bloomin’ Brands restaurant properties for $66.4 million. The move aligns with FCPT’s portfolio expansion efforts, with real estate leased to strong credit operators.
The properties comprised a total of 20 restaurants, including 10 Outback Steakhouse restaurants and 10 Carrabba’s Italian Grill restaurants. The 19 properties are located throughout 10 states namely Arizona, Florida, Georgia, Kentucky, Louisiana, North Carolina, Nevada, Pennsylvania, South Carolina, Tennessee.
The sites are situated in strong retail corridors characterized by high footfall traffic and appealing demographic profiles. The properties are secured under two long-term master leases, each encompassing 10 restaurants, and are leased to corporate entities of Bloomin’ Brands. The transaction was executed at a capitalization rate in range with prior FCPT transactions.
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.
In June, Four Corners announced the acquisition of MercyOne outpatient clinic property located in a strong retail corridor in Iowa for $3 million. The property is corporate-operated under a long-term, triple-net lease.
In the same month, Four Corners announced the acquisition of Mercy Health Clinic property, located in a strong retail corridor in Missouri, for $3.8 million. The property is corporate-operated under a triple-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 second quarter, Four Corners acquired 17 properties for a combined purchase price of $45.5 million at an initial weighted average cash yield of 7.2% on rents in place as of June 30, 2024, and a weighted average remaining lease term of 13.1 years.
As of June 30, 2024, Four Corners’ rental portfolio comprised 1,154 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 7.4 years.
Over the past six months, shares of this Zacks Rank #2 (Buy) company have gained 15.1% compared with the industry's growth of 11.8%.
The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share has moved marginally northward over the past month to $2.66.
The Zacks Consensus Estimate for Lamar Advertising’s current-year FFO per share has been marginally raised over the past month to $8.09.
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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FCPT Announces Buyout of 19 Bloomin' Brands Restaurant Properties
Four Corners Property Trust (FCPT - Free Report) recently announced the acquisition of 19 Bloomin’ Brands restaurant properties for $66.4 million. The move aligns with FCPT’s portfolio expansion efforts, with real estate leased to strong credit operators.
The properties comprised a total of 20 restaurants, including 10 Outback Steakhouse restaurants and 10 Carrabba’s Italian Grill restaurants. The 19 properties are located throughout 10 states namely Arizona, Florida, Georgia, Kentucky, Louisiana, North Carolina, Nevada, Pennsylvania, South Carolina, Tennessee.
The sites are situated in strong retail corridors characterized by high footfall traffic and appealing demographic profiles. The properties are secured under two long-term master leases, each encompassing 10 restaurants, and are leased to corporate entities of Bloomin’ Brands. The transaction was executed at a capitalization rate in range with prior FCPT transactions.
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.
In June, Four Corners announced the acquisition of MercyOne outpatient clinic property located in a strong retail corridor in Iowa for $3 million. The property is corporate-operated under a long-term, triple-net lease.
In the same month, Four Corners announced the acquisition of Mercy Health Clinic property, located in a strong retail corridor in Missouri, for $3.8 million. The property is corporate-operated under a triple-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 second quarter, Four Corners acquired 17 properties for a combined purchase price of $45.5 million at an initial weighted average cash yield of 7.2% on rents in place as of June 30, 2024, and a weighted average remaining lease term of 13.1 years.
As of June 30, 2024, Four Corners’ rental portfolio comprised 1,154 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 7.4 years.
Over the past six months, shares of this Zacks Rank #2 (Buy) company have gained 15.1% compared with the industry's growth of 11.8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and Lamar Advertising (LAMR - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share has moved marginally northward over the past month to $2.66.
The Zacks Consensus Estimate for Lamar Advertising’s current-year FFO per share has been marginally raised over the past month to $8.09.
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.