Real estate acquisition and diversification

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FCPT Continues its Acquisition Spree With Automotive Service Property
ZACKSยท 2025-04-10 13:40
Group 1 - Four Corners Property Trust (FCPT) has acquired an automotive service property for $5.3 million, indicating its expansion and diversification efforts aimed at future revenue growth [1] - The property is leased to a national operator under a long-term, triple-net lease, priced at a 6.8% cap rate on rent, which will help secure FCPT's long-term cash flows [2] - FCPT primarily focuses on high-quality, net-leased restaurant and retail properties, with a history of acquisitions, including a recent purchase of ten Burger King properties for $22 million [3] Group 2 - The acquisitions align with FCPT's strategy to build a portfolio resilient to various economic cycles, although the company may face challenges due to high-interest rates affecting borrowing costs [4] - Over the past three months, FCPT's shares have increased by 0.4%, while the industry has seen a decline of 0.1%, with analysts showing a bullish outlook on the stock [5] - The Zacks Consensus Estimate for FCPT's 2025 funds from operations (FFO) per share has been slightly revised upward to $1.77 [5]