Four Corners Acquires Portfolio of Automotive Service Properties

Four Corners Property Trust FCPT recently acquired a portfolio of automotive service properties through a sale-leaseback for $4.7 million from VIVE Collision. This acquisition highlights the company’s expansionary and diversification efforts, which will aid future revenue growth.

VIVE Collision manages more than 60 locations across nine states in the Northeast, focusing on advanced repair skills, technician development and high-quality service.

The properties are located in strong retail corridors in Maine and Vermont. The properties are corporate-operated under long-term, triple net leases with approximately 20 years of term remaining. The transaction was priced at a cap rate that was in line with prior FCPT transactions.

FCPT: In a Snapshot

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.

This week, FCPT announced the acquisition of an Olive Garden property for $4.1 million. Last week, the company acquired the Tires Plus property for $1.7 million and an automotive service property for $5.8 million.

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.

In the past six months, shares of this Zacks Rank #3 (Hold) company have gained 3.2% compared with the industry's increase of 5.4%.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and Medical Properties Trust MPW, 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 VICI’s 2025 FFO per share has moved one cent northward to $2.34 over the past two months.

The Zacks Consensus Estimate for MPW’s 2025 FFO per share has moved one cent northward to 57 cents over the past month.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research