MILL VALLEY, Calif. - Four Corners Property Trust (NYSE:FCPT), a real estate investment trust specializing in net-leased restaurant and retail properties, has expanded its portfolio with the acquisition of five Outback Steakhouse properties for a total of $19.7 million. The properties, situated in Texas, Florida, and Missouri, are part of a larger deal with the same seller that included a 19-property portfolio from Bloomin' Brands (NASDAQ:BLMN) completed in August 2024.
The newly acquired properties are located in strong retail corridors, with three in Texas, one in Florida, and one in Missouri. All five locations are corporate-operated and come with long-term net leases. The transaction's cap rate is consistent with the rates of previous acquisitions made by FCPT.
Four Corners Property Trust focuses on acquiring and leasing properties for the restaurant and retail sectors. This latest acquisition is in line with the company's strategy to grow its portfolio through the purchase of additional real estate assets.
The information for this report is based on a press release statement from Four Corners Property Trust.
In other recent news, Four Corners Property Trust (FCPT) has been the subject of several recent developments. UBS initiated coverage on FCPT with a Buy rating, highlighting the company's potential for AFFO growth and acquisition momentum. The firm noted FCPT's advantageous cost of capital and diversification strategy, which could contribute to increased AFFO growth at a favorable valuation.
FCPT's recent acquisitions totaled $71 million in the third quarter, a significant increase from the previous quarter. UBS suggests future acquisitions could be financed through equity or debt, given the company's current leverage. The firm also noted FCPT's proactive portfolio management could mitigate downside risks associated with credit loss in its restaurant portfolio.
On the earnings front, FCPT reported robust Q3 results, with a 4.8% increase in cash rental income and a decrease in net debt to adjusted EBITDAre ratio. The company's disciplined investment strategy and strong portfolio performance were highlighted, with 21 properties acquired for $71 million at a 7.2% cap rate, primarily in the restaurant sector. Looking forward, FCPT expects a busy fourth quarter for acquisitions and maintains a strong liquidity position. These developments provide a snapshot of FCPT's recent performance and strategic initiatives.
InvestingPro Insights
Four Corners Property Trust's recent acquisition of five Outback Steakhouse properties aligns well with its growth strategy and financial performance. According to InvestingPro data, FCPT has demonstrated solid revenue growth, with a 9.08% increase in the last twelve months as of Q3 2024. This expansion is likely to contribute positively to the company's top line.
The REIT's focus on net-leased restaurant properties is reflected in its impressive gross profit margin of 84.8%, indicating efficient property management and strong tenant relationships. This high margin supports FCPT's ability to continue making strategic acquisitions like the recent Outback Steakhouse deal.
InvestingPro Tips highlight that FCPT has raised its dividend for 3 consecutive years, which is particularly relevant for income-focused REIT investors. The current dividend yield stands at a healthy 4.83%, making it an attractive option for those seeking steady income streams from real estate investments.
Additionally, FCPT's stock has shown significant momentum, with a 25.26% price total return over the past six months. This performance, coupled with the fact that it's trading near its 52-week high, suggests investor confidence in the company's growth strategy and portfolio expansion.
For readers interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into FCPT's investment potential.
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