4 Corners Property Belief (FCPT – Free Report) just lately acquired a portfolio of three properties in a robust retail hall in Illinois for $11.5 million. The properties are leased to Aspen Dental, Addus Homecare, AT&T, WellNow and Banfield Pet Hospital. The transfer is in sync with the corporate’s portfolio-expansion efforts, with actual property leased to sturdy credit score operators.
The tenants are corporate-operated beneath triple internet leases with a weighted common of 5 years of time period remaining. Priced at a 6.eight% cap charge on lease as of the time limit and excluding transaction prices, the buyout appears a strategic match for FCPT. The portfolio is prone to generate regular revenues over the long run.
Of late, this actual property funding belief (REIT), primarily engaged within the possession and acquisition of high-quality, net-leased restaurant and retail properties, has been on an acquisition spree.
In December, FCPT shelled out $6.9 million for the acquisition of a Crimson Lobster property and a Smokey Bones property positioned in a extremely trafficked hall in New York. The properties are corporate-operated beneath triple internet leases with a weighted common of two.5 years of the residual time period. The transaction was priced at a 6.5% cap charge, excluding transaction prices.
In the identical month, it closed the acquisition of a four-property Buffalo Wild Wings portfolio for $14.three million. Being located in sturdy retail corridors in Illinois, the properties are beneath particular person long-term, triple internet leases, every with roughly 9 years of the residual time period.
Along with the above-mentioned buyouts, earlier in December, 4 Corners acquired a WellNow Pressing Care property in Michigan for $2.four million and 5 Jiffy Lube properties in Indiana for $7.9 million. Additional, it took over a Gerber Collision & Glass property in Texas for $2.eight million.
Notably, within the 9 months that ended Sep 30, 2022, FCPT acquired 70 properties for $171.eight million, together with transaction prices. These properties are 100% occupied beneath internet leases with a weighted common remaining lease time period of seven.5 years.
Additional, as a part of its capital-recycling efforts, FCPT introduced the disposition of a Crimson Lobster property in Ohio for $four.9 million in December. The corporate plans to redeploy the proceeds into new funding prospects in sync with its thresholds.
4 Corners presently carries a Zacks Rank #four (Promote).
Nevertheless, analysts appear bullish on the corporate because the Zacks Consensus Estimate for its 2022 funds from operations (FFO) has moved marginally upward over the previous week. Its shares have gained 7% within the quarter-to-date interval, outperforming the true property market’s development of zero.eight%.
Picture Supply: Zacks Funding Analysis
Shares to Think about
Some better-ranked shares from the REIT sector are VICI Properties (VICI – Free Report) , Lamar Promoting (LAMR – Free Report) and Chatham Lodging Belief REIT (CLDT – Free Report) , every carrying a Zacks Rank #2 (Purchase). You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is pegged at $1.92.
The Zacks Consensus Estimate for Lamar Promoting’s 2022 FFO per share is pegged at $7.34.
The Zacks Consensus Estimate for Chatham Lodging Belief’s ongoing yr’s FFO per share is pegged at $1.17.
Word: Something associated to earnings offered on this write-up characterize FFO — a extensively used metric to gauge the efficiency of REITs.
