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.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
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.
Related News:
Vodafone Offers €2.1B To Buy Out KDG Holders; Street Sees 50% Upside
Cintas Q2 Earnings Beat Analyst Forecasts; Street Remains Cautiously Optimistic
Moog Completes Acquisition of Genesys Aerosystems for $77.7M