Four Corners Property Trust FCPT recently announced the purchase of a NAPA Auto Parts property for $2.0 million. The move highlights FCPT’s portfolio expansionary efforts to maximize shareholder wealth.

The property is positioned in a highly trafficked corridor in New York. It is corporate-operated and secured under triple-net leases with a weighted average term of five years remaining. The transaction was executed at a capitalization rate of 7.2% on rent net of transaction costs.

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.

In mid-November, FCPT announced the buyout of Raising Cane's, Dollar General's and Jiffy Lube's properties for $6.6 million in strong retail corridors in Texas and Florida. The properties are secured under long-term, triple-net leases with a weighted average term of eight years remaining.

Early in November, Four Corners announced the acquisition of Miller's Ale House property in a strong retail corridor in Georgia for $3.8 million. The property is corporate-operated under a long-term, net lease with around 11 years of term remaining.

Image Source: Four Corners Property Trust, Inc.

As per the company’s latest investor presentation, from the beginning of 2024 through Oct. 30, Four Corners acquired 42 properties worth $132 million at a capitalization rate of 7.2% on rents.

These strategic moves not only broaden FCPT's footprint in various states but also ensure portfolio diversification. Such efforts benefit the company and its investors as they gain exposure to growing industries and establish long-term lease agreements with strong tenants.

Over the past six months, shares of this Zacks Rank #3 (Hold) company have risen 16.0% compared with the industry's growth of 15.3%.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Cousins Properties CUZ and OUTFRONT Media OUT, 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 OUTFRONT Media’s current-year FFO per share has been raised marginally over the past month to $1.73.

The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share has moved marginally northward over the past month to $2.68.

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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