Four Corners Property Trust (FCPT, Financial) has recently expanded its real estate portfolio by purchasing a Caliber Collision property for $4.2 million. This newly acquired asset is strategically positioned in a bustling retail area in Wisconsin. The property is under a long-term, triple net lease, which still has approximately 14 years remaining and is managed corporately. FCPT secured this investment with a capitalization rate of 6.9% based on the rental income at the time of closing, not including any transaction costs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Four Corners Property Trust Inc (FCPT, Financial) is $30.00 with a high estimate of $31.00 and a low estimate of $29.00. The average target implies an upside of 10.78% from the current price of $27.08. More detailed estimate data can be found on the Four Corners Property Trust Inc (FCPT) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Four Corners Property Trust Inc's (FCPT, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Four Corners Property Trust Inc (FCPT, Financial) in one year is $28.12, suggesting a upside of 3.84% from the current price of $27.08. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Four Corners Property Trust Inc (FCPT) Summary page.
FCPT Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Four Corners Property Trust Inc (FCPT, Financial) achieved the highest acquisition volume for a first quarter in the company's history, closing $70 million of acquisitions at a blended 6.7% cap rate.
- The company has built significant liquidity and reduced leverage to the lowest levels in the last seven years, providing flexibility for future opportunities.
- FCPT's portfolio continues to perform well with high rent collections and occupancy, with a rent coverage ratio of 4.9 times for the majority of the portfolio.
- The company has diversified its portfolio significantly, reducing reliance on Darden from 100% to 47% of the rent roll, and expanding into sectors like automotive service and medical retail.
- FCPT has a strong capital position with $617 million available for funding acquisitions, and no near-term debt maturities, ensuring stability in a volatile market.
Negative Points
- The company does not provide acquisition guidance, which may leave investors uncertain about future growth prospects.
- There is a potential risk of tenant performance pullback in a recession, although FCPT believes it is well-positioned to weather such issues.
- The current macroeconomic environment is volatile, which could impact the availability and pricing of future acquisition opportunities.
- Despite strong performance, the company acknowledges that it may face challenges in maintaining high acquisition volumes due to the competitive market and quality standards.
- FCPT's exposure to quick service restaurants (QSR) has increased, which may lead to yield compression due to the competitive nature of this sector.
