FCPT Acquires Three Express Oil Change & Tire Engineers Properties

Four Corners Property Trust FCPT recently announced the purchase of three Express Oil Change & Tire Engineers properties for $9.5 million. The said property is located in a highly trafficked corridor in Georgia. The above acquisition highlights the company’s expansionary and diversification efforts, which will aid future revenue growth.

Priced at a 6.6% 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 with approximately 19 years of term remaining. 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 April 2025, FCPT acquired the Caribou Coffee property for $1.4 million. The property is located in a highly trafficked corridor in Wisconsin. It is corporate-operated under a long-term, triple-net lease with approximately eight years of term remaining.

In the same month, it acquired Chuy's property, Outback Steakhouse property, automotive service property for $2.9 million, $1.6 million and $5.3 million, respectively.

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 an elevated interest-rate environment, which could keep its borrowing costs high.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 2.1% against the industry's fall of 2.2%.

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 WELL’s 2025 FFO per share has been moved one cent northward to $4.99 over the past week.

The consensus estimate for CUZ’s 2025 FFO per share has been revised upward by 1.1% to $2.79 over the past two months.

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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