Four Corners (FCPT) Sells Virginia Property, Banks on Growth
Four Corners Property Trust FCPT continues to reposition its portfolio to capitalize on high-quality, net-leased properties. This REIT, which primarily owns and acquires restaurant and retail properties, recently divested a Burger King property for $2.1 million.
The property, located in Virginia and operated by Carrols Restaurant Group under a triple net lease, had approximately 14 years of term remaining. This disposition comes as part of its strategic efforts, and Four Corners plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
The company has been on an acquisition spree and recently announced the acquisition of a Fresenius Medical Care property for $2.6 million. The Georgia-based property is corporate-operated under a triple net lease with about three years of term remaining.
Bolstering its portfolio, FCPT has acquired three W.W. Williams properties for $10.3 million through a sale-leaseback deal. The properties, situated in Michigan and Ohio, are in strong industrial corridors and are corporate-operated under long-term, triple net leases with around 15 years of residual term.
These acquisitions exemplify the company's strategic growth plan, underlining its commitment to the ownership, acquisition and leasing of prime restaurants and retail properties to creditworthy operators. The long-term triple net lease assures the generation of steady revenues over the long term.
In recent times, Four Corners has also made an agreement to acquire up to 14 Darden restaurant properties, including 13 Cheddar’s Scratch Kitchen properties and one Olive Garden property. The deal carries a purchase price of up to $85 million on an initial cash rent amounting to $5.35 million. It is slated for closure in the third quarter of 2023.
FCPT currently carries a Zacks Rank #3 (Hold). Its shares have increased 1.6% in the past month against the industry's decline of 0.3%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Rexford Industrial Realty REXR and EastGroup Properties EGP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Rexford Industrial Realty’s current-year FFO per share has been revised 1.4% north over the past two months to $2.19. This indicates an 11.7% increase year over year.
The Zacks Consensus Estimate for EastGroup Properties’ 2023 FFO per share has been revised marginally upward over the past month to $7.56. This implies an 8% increase year over year.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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
EastGroup Properties, Inc. (EGP) : Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report
Four Corners Property Trust, Inc. (FCPT) : Free Stock Analysis Report
