Four Corners Property Trust Continues Acquisition Spree to Boost Portfolio

Four Corners Property Trust FCPT has acquired several properties, including a Bojangles property for $2.2 million. This expansionary and diversification effort will aid revenue growth. The company is mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties. FCPT's strategy of acquiring properties through sale-leasebacks may face potential headwinds in a high-interest-rate environment.

Four Corners Property Trust (FCPT) has recently acquired a Bojangles property for $2.2 million, marking the latest addition to its expanding portfolio. This acquisition is part of FCPT's broader strategy to diversify and grow its revenue through strategic investments in high-quality, net-leased restaurant and retail properties [1].

Located in a strong retail corridor in Tennessee, the Bojangles property is corporate-operated under a long-term triple-net lease with nearly six years remaining. The property was priced at a 7.1% cap rate on rent as of the closing date, exclusive of transaction costs [1]. This acquisition follows FCPT's recent announcements of the acquisition of four Burger King properties and a Mavis Tire Property, both of which were completed this month [1].

FCPT's expansionary efforts are aimed at structuring a portfolio that can withstand various economic cycles. However, the company's rapid growth may face potential headwinds in a high-interest-rate environment, which could increase borrowing costs [1]. Despite this, the company has shown resilience, with shares declining by 3.8% over the past three months, compared to the industry's growth of 3.9% [1].

Investors looking for alternatives in the REIT sector may consider Plymouth Industrial REIT (PLYM) and Welltower (WELL), both of which have a Zacks Rank of #2 (Buy) [1]. The Zacks Consensus Estimate for PLYM's 2025 FFO per share has moved 2 cents northward to $1.88 over the past week, while WELL's estimate has moved 4 cents northward to $5.06 over the past month [1].

References:
[1] https://www.nasdaq.com/articles/four-corners-continues-its-acquisition-spree-boost-portfolio-2
[2] https://finance.yahoo.com/news/four-corners-continues-acquisition-spree-170000388.html
[3] https://finance.yahoo.com/news/fcpt-announces-acquisition-bojangles-property-212400190.html