FCPT Continues its Acquisition Spree With Automotive Service Property

Four Corners Property Trust FCPT recently announced the purchase of an automotive service property for $5.3 million. Leased to a national operator, the said property is located in a highly trafficked corridor in Arkansas. The above acquisition highlights the company’s expansionary and diversification efforts, which will aid future revenue growth.

Priced at a 6.8% cap rate on rent as of the closing date, exclusive of transaction costs, the property is corporate-operated under a long-term, triple-net lease. This will help secure FCPT's long-term cash flows.

This real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has a track record of acquisitions. In March 2025, FCPT acquired ten Burger King properties from Ampler Restaurant Group for $22 million through a sale-leaseback.

The above purchases fall in line with FCPT’s strategy of structuring a portfolio that will withstand varied economic cycles. However, the company’s expansion may face potential headwinds in a still high-interest-rate environment, which could keep its borrowing costs elevated.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have risen 0.4%, against the industry's fall of 0.1%. Analysts seem bullish on this stock, with the Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share being marginally revised northward over the past two months to $1.77.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower WELL and Cousins Properties CUZ, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s 2025 FFO per share has been moved marginally northward to $4.93 over the past month.

The consensus estimate for Cousins Properties’ 2025 FFO per share has been revised upward by 1.8% to $2.79 over the past month.

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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This article originally published on Zacks Investment Research (zacks.com).

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