Four Corners (FCPT) Acquires Red Robin Property From PREIT
Four Corners Property Trust FCPT recently announced the acquisition of a Red Robin property for $2.4 million from Pennsylvania Real Estate Investment Trust PEI, commonly known as “PREIT.” The move comes as part of its PREIT transaction previously announced in June 2022 for portfolio expansion.
Located in a strong retail corridor in Maryland, the property is likely to keep witnessing solid demand. It is occupied under a triple net lease to the corporate entity, with roughly four years of term remaining. The overall transaction was priced at a 6.5% going-in cash capitalization rate, excluding transaction costs.
Earlier in June, Four Corners announced that it signed a definitive agreement for the purchase of 11 outparcel properties from PREIT for $32.5 million. The retail outparcels are located within highly trafficked and populated corridors in Maryland, Massachusetts, Pennsylvania and South Carolina.
The portfolio comprised eight single-tenant restaurant properties and three non-restaurant retail properties and each property has a separate, individual lease. The leases have a current weighted average residual term of roughly eight years. A large chunk of the portfolio is expected to be acquired in the second and third quarters of 2022.
Primarily engaged in the ownership and acquisition of high-quality, net-leased restaurants and retail properties, Four Corners seeks potential acquisition opportunities to enhance its portfolio with real estate catering to the restaurant and retail industries. Recently, the company shelled out $2.2 million to acquire a DaVita Kidney Care property, which is positioned in a highly trafficked corridor in Kansas and occupied under a net lease to the corporate entity, with around seven years of term remaining.
Four Corners currently carries a Zacks Rank #3 (Hold). Shares of FCPT have declined 3.3% over the past three months compared with the industry’s decline of 16.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider
Some key picks from the REIT sector include Extra Space Storage Inc. EXR and OUTFRONT Media OUT.
The Zacks Consensus Estimate for Extra Space Storage’s 2022 funds from operations (FFO) per share has moved marginally upward in the past month to $8.25. EXR presently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for OUTFRONT Media’s ongoing year’s FFO per share has been raised 7.7% over the past two months to $2.09. OUT sports a Zacks Rank #1 currently.
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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Pennsylvania Real Estate Investment Trust (PEI) : Free Stock Analysis Report
Extra Space Storage Inc (EXR) : Free Stock Analysis Report
OUTFRONT Media Inc. (OUT) : Free Stock Analysis Report
Four Corners Property Trust, Inc. (FCPT) : Free Stock Analysis Report
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