2024-04-17 18:07:36 ET
Summary
- Four Corners Property Trust has experienced a 10% stock decline in 2024, in line with the sector Vanguard Real Estate Index Fund ETF.
- The net lease REIT specializes in acquiring and leasing restaurant and food-related properties, with a high occupancy rate of 99.8%.
- More recently the company has diversified into auto service and medical retail which account for a combined 17% of annualized base rent.
- Leverage is very manageable, at 34% of enterprise value, with 97% of the debt fixed at about 4%, with limited near-term maturities.
- The market cap rate of about 6% is below private markets, providing both a growth opportunity and a risk should valuations converge.
Introduction
Four Corners Property Trust ( FCPT ) has performed in line with the sector Vanguard Real Estate Index Fund ETF ( VNQ ) so far in 2024, resulting in a 10% stock decline so far in the year:
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For further details see:
Four Corners Property Trust: A Fortress Balance Sheet With Ample Growth Prospects