Four Corners Property Trust on Dec. 22 announced the acquisition of a number of properties, including two properties at Outback Steakhouses and one property at Carrabba’s for $12.9 million. Shares gained 2.6% at the close on Tuesday.
Four Corners Property Trust’s (FCPT) said that the properties are located in dense retail corridors in Florida. The properties are operated under triple net leases with a weighted average term remaining of 11 years and annual rent increases of 1%. The transaction was priced at a 6.4% going-in cash capitalization rate based on 2021 rents, exclusive of transaction costs.
The going-in capitalization rate is the property’s estimated first-year net operating income divided by the property purchase price.
In addition, the real estate investment trust also announced the acquisition of a PNC Bank property for $1.6 million.
The acquired property is located in a highly trafficked retail corridor in Ohio and is operated under a triple net lease and has a seven-year term. The transaction was priced at a 6.7% going-in cash capitalization rate, exclusive of transaction costs.
FCPT stock is currently trading at a discount of close to 10% to its 52-week high. (See FCPT stock analysis on TipRanks).
Meanwhile, Robert W. Baird analyst Wesley Golladay on Dec. 16 reinstated coverage of the stock with a Buy rating and a $31 price target.
From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 2 unanimous Buys. The average analyst price target of $31 implies an upside potential of 6% at current levels.
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