Four Corners Property Trust
FCPT
is on an acquisition spree and recently purchased three Sun Auto Tire & Service properties for $9.1 million. The move came as part of its portfolio-expansion efforts, with real estate leased to strong credit operators.
The latest acquisition involves properties that are located in strong retail corridors in Missouri and are corporate-operated under long-term, triple net leases. Hence, the buyout seems a strategic fit for FCPT and is likely to generate steady revenues over the long term.
Apart from the latest acquisition, Four Corners recently shelled out $12.3 million for purchasing a Cheesecake Factory property and a dual-tenant
Starbucks
SBUX
and
AT&T
T
property. Located in a highly trafficked corridor in Kansas, these properties, which are corporate-operated under net leases, have a weighted average of roughly seven years of residual term.
Also, Four Corners announced the acquisition of a Bubba’s 33-restaurant property for $3.1 million. Positioned in an extremely trafficked corridor in Texas, this marked the last property to be acquired from the seven-property $17.1 million outparcel portfolio transaction initially announced in July 2022.
Primarily engaged in the ownership and acquisition of high-quality restaurants and retail properties, Four Corners seeks potential acquisition opportunities to enhance its portfolio. In the third quarter of 2022, FCPT acquired 26 properties for a combined purchase price of $69.9 million at an initial weighted average cash yield of 6.3%.
Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have rallied 11.3% so far in the quarter, outperforming the
industry
’s increase of 5.3%. You can see
the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here
.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are
VICI Properties Inc.
VICI
and
Lamar Advertising Company
LAMR
, each carrying a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for VICI Properties’ 2022 FFO per share has moved 3.2% north to $1.92 over the past month.
The Zacks Consensus Estimate for Lamar Advertising Company’s ongoing year’s FFO per share has been raised 1.4% over the past two months to $7.34.
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.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don’t miss your chance to download Zacks’ top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
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
