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Four Corners (FCPT) Buys Circle K Property, Expands Portfolio

Four Corners' (FCPT) latest acquisitions reflect its efforts to bank on impressive buyout opportunities and enhance its portfolio with real estate catering to restaurant and non-restaurant industries.

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This story originally appeared on Zacks

Four Corners Property Trust FCPT recently shelled out $3.2 million to acquire a Circle K property. The move comes as part of its portfolio expansion efforts.

Being located in a dense corridor in Illinois, the property is likely to keep witnessing solid demand. It has a residual lease term of roughly three years. The transaction was priced at a 7.2% capitalization rate on current rent, exclusive of transaction costs.

Four Corners has been on an acquisition spree. Recently, the company shelled out $4.6 million to acquire two Express Oil Change properties in the highly trafficked corridors in Mississippi.

Also, FCPT announced the acquisition of a Jack in the Box restaurant property for $1.2 million. Located in a highly trafficked corridor in Arizona and occupied by a franchisee under a triple-net lease, with roughly five years of residual term, the move seems a strategic fit for the company.

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Moreover, Four Corners disclosed the acquisition of an Olive Garden property for $4.2 million from Darden Restaurants through a sale leaseback. Situated in a dense retail corridor in Pennsylvania, the property is likely to experience solid demand. It is under a triple-net lease, with 10 years of residual term.

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 restaurant and retail industries. Since initiating its acquisition activity in July 2016, Four Corners has experienced strong acquisition levels. It completed real estate acquisitions of a whopping 101 properties in 2020 for a total of $223 million, with 32% non-restaurant property buyouts.

Four Corners began focusing on non-restaurants as an outgrowth of its outparcel strategy. Presently, FCPT is primarily focusing on auto service and medical retail as these sectors are more resistant to both e-commerce and recessionary pressures.

Four Corners currently carries a Zacks Rank #3 (Hold). Shares of the company have rallied 5% over the past three months, underperforming its industry’s growth of 10.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the REIT sector include Public Storage PSA, CubeSmart CUBE and Rexford Industrial Realty, Inc. REXR.

Public Storage holds a Zacks Rank of 2 (Buy) at present. 2021 FFO per share for Public Storage will likely increase 20.6% year over year.

The Zacks Consensus Estimate for PSA’s 2021 FFO per share has been revised 1.4% upward in the past month.

The Zacks Consensus Estimate for CubeSmart’s ongoing-year FFO per share has moved 1.4% north to $2.10 over the past month. Its long-term growth rate is projected at 11.2%.

The Zacks Consensus Estimate for CubeSmart’s 2021 FFO per share suggests an increase of 22.1% year over year. Currently, CUBE carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Rexford Industrial’s ongoing-year FFO per share has moved 2.5% north to $1.63 over the past two months.

The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share suggests an increase of 23.5% year over year. Currently, REXR carries a Zacks Rank of 2.

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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