FCPT's Auto Collision Play: A Triple-Net Win for Defensive Investors!

The market's been all over the place lately—up one day, down the next—but here's a play that's as solid as a rock: Four Corners Property Trust (FCPT) just made a move that screams low risk, high reward. Let me break it down for you.

The Deal: A 14-Year Triple-Net Lease at 6.9% Cap Rate—Pure Stability

FCPT just dropped $4.2 million on a Caliber Collision property in a prime Wisconsin retail corridor. Now, the numbers here are music to my ears:
- 14-year lease term: That's almost a decade and a half of predictable cash flows, with the tenant (not FCPT) covering taxes, insurance, and maintenance.
- 6.9% cap rate: This isn't just a good rate—it's a steal in today's market. At this cap, FCPT's getting an immediate return that'll outpace inflation and most bonds.

Why This Sector? Auto Collision = Defensive Gold

Auto repair is non-discretionary. People don't skip fixing their cars after an accident—so Caliber Collision's corporate-backed model is recession-resistant. Pair that with a retail corridor location, and you've got foot traffic and visibility that'll keep this tenant paying rent for years.

FCPT's strategy is spot-on: double down on net-leased real estate in sectors that thrive even when the economy sputters. Restaurants and auto repair? They're the bedrock of real estate income.

The Big Picture: FCPT's Financials Are Bulletproof

Let's look at the numbers behind this move:
- Q4 2024 rental revenue: Up 5.3% to $60.7M.
- AFFO per share: $1.73 annually—up 3.6% year-over-year.
- Liquidity: $347M as of December 2024, with a $350M credit facility and a 5.4x net debt/EBITDA ratio (way below industry averages).

This isn't a gamble—it's a mathematical lock. FCPT's got the cash, the credit, and the discipline to keep buying assets like this.

The Risks? Minimal, Thanks to the Triple-Net Structure

Sure, retail can be volatile—but this isn't a mom-and-pop shop. Corporate Caliber Collision is a Fortune 500-backed tenant with skin in the game. And with the triple-net lease, FCPT's liabilities are zero. The tenant's on the hook for everything except collecting rent.

This Isn't Just an Acquisition—It's a Signal

FCPT's portfolio now includes 1,198 properties across 47 states, with a 99.6% occupancy rate. The average lease term? 7.3 years—so this Wisconsin deal's 14-year lease is a home run for extending their cash flow runway.

Cramer's Bottom Line: Buy FCPT—Now

Here's why you act today:
1. Cap Rate Advantage: 6.9% is a yield you can't ignore in a world of 3% bonds.
2. Defensive Sector Play: Auto repair is recession-proof.
3. FCPT's Execution: They've got a proven track record of buying right and managing well.

This isn't a fad—it's a foundation for steady returns. If you're looking for safety and growth, FCPT is your play.

Action Alert: Don't let this slip away. Buy FCPT now, and let this triple-net lease work its magic for you.

Disclosure: The analysis is based on publicly available data. Always do your own research before investing.