To diversify its portfolio, Four Corners Property Trust FCPT announced the acquisition of six Christian Brothers Automotive properties for $24.8 million. The strategic buyout will ensure steady and stable revenues and foster future growth.

The company acquired the above properties through sale-leaseback in the highly trafficked corridors of Georgia (two), Indiana (two), Florida (one) and Illinois (one). The advantageous locations of these properties offer favorable demographics, boosting the resilience of FCPT’s portfolio. The transaction was priced at a cap rate in range with prior FCPT transactions. The properties are corporate-operated under long-term leases.

FCPT also purchased a $3.5 million, corporate-operated triple-net leased National Veterinary Associates property in Connecticut. Priced at a cap rate in range with prior FCPT transactions, this property also has a provision for annual rental increments.

FCPT’s Past Acquisitions

Of late, this real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has been on an acquisition spree.

This December, FCPT announced the acquisition of nine American Family Care properties for $21.2 million. It also purchased two Riverview Health properties through sale-leaseback for $13.5 million. FCPT announced two additional acquisitions — a MercyOne outpatient clinic property in Iowa for $2.8 million and a P.F. Chang’s bistro property in Illinois for $4.8 million.

With the above acquisitions, FCPT’s diversification effort continues. However, the company’s expansions may face potential headwinds in a still high-interest-rate environment, which could keep its borrowing costs elevated.

Over the past six months, shares of this Zacks Rank #4 (Sell) company have risen 11.8% compared with the industry's growth of 3.9%. However, analysts seem bearish on this stock, with the Zacks Consensus Estimate for its 2024 funds from operations (FFO) per share being lowered marginally over the past two months to $1.72.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks to consider from the broader REIT sector are Crown Castle Inc. CCI and SL Green Realty SLG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Crown Castle’s current-year FFO per share has moved northward marginally over the past two months to $7.00.

The Zacks Consensus Estimate for SL Green Realty’s current-year FFO per share has been raised by 2.9% over the past month to $7.83.

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.

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

Crown Castle Inc. (CCI) : Free Stock Analysis Report

SL Green Realty Corporation (SLG) : Free Stock Analysis Report

Four Corners Property Trust, Inc. (FCPT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research