Four Corners Buys Caliber Collision Property For $1.9M

Four Corners Property announced that it has acquired a Caliber Collision property for $1.9 million.

Four Corners Property (FCPT) said that the Wisconsin-based property is in a prime retail corridor. Moreover, it is occupied under a net lease agreement with the corporate operator and has a remaining term of 11 years.

The real estate investment trust (REIT) company said that the transaction has been priced at a 6.6% going-in-cash capitalization rate and excludes transaction-related costs.

Last week, FCPT approved a quarterly cash dividend of $0.3175 per share, implying an annualized dividend yield of 4.4%. Notably, the newly approved dividend will be paid on April 15 to shareholders of record as of March 31.

Last month, FCPT posted better-than-expected 4Q revenues. The company’s revenues of $44.6 million topped Street estimates of $44.2 million and increased 9.1% year-on-year. Adjusted funds from operations of $0.37 per share represented an improvement of a penny from the year-ago quarter. (See Four Corners Property stock analysis on TipRanks)

Following the 4Q results, Raymond James analyst R J Milligan maintained a Buy rating on the stock. In a note to investors, the analyst said, “FCPT’s rent collections (~100% for 4Q and FY2020) remains among the highest of the net-lease REITs.” He added, “The company’s external growth continues to ramp with a very strong 4Q (over $100M acquired — the strongest quarter in 2020).”

Overall, FCPT has a Moderate Buy consensus rating based on 2 unanimous Buys. The average analyst price target of $31 implies upside potential of 8.4% to current levels. Shares have gained more than 34% over the past year.