Citizens reiterates Market Perform rating on Four Corners Property Trust stock

Published 30/07/2025, 10:04
Citizens reiterates Market Perform rating on Four Corners Property Trust stock

Investing.com - Citizens analyst Mitch Germain has maintained a Market Perform rating on Four Corners Property Trust (NYSE:FCPT) following the company’s second-quarter results.

Four Corners Property Trust reported AFFO per share of $0.44 for the second quarter of 2025, which was in line with expectations. During the quarter, the company continued its revenue diversification efforts while implementing measures to strengthen its balance sheet.

The REIT has leveraged its favorable cost of equity to support an aggressive deployment strategy, which has accelerated its portfolio diversification initiatives. The company has also pre-funded its second-half 2025 deployment through recent equity capital raising activities. With a current ratio of 2.16x, InvestingPro analysis shows the company’s liquid assets comfortably exceed its short-term obligations, supporting its expansion plans.

Four Corners Property Trust currently trades at approximately 15 times its estimated 2025 AFFO per share, representing a premium to the broader net-lease REIT sector average of 13.3 times. Citizens attributes this premium valuation to several factors, including sector-leading rent coverage of 5.0 times, a strong balance sheet with significant liquidity, and a high percentage (54%) of investment-grade-rated rents.

The research firm views the current multiple premium as consistent with historical averages, suggesting the shares are fairly valued at present levels.

In other recent news, Four Corners Property Trust (FCPT) reported its first-quarter earnings for 2025, which fell short of analyst estimates. The company posted an earnings per share (EPS) of $0.26, missing the expected $0.28, while revenue reached $63.5 million, below the anticipated $66.31 million. In terms of acquisitions, FCPT has been active, purchasing a LongHorn Steakhouse property in Michigan for $2.5 million and an Olive Garden property in North Carolina for $4.1 million. Additionally, the company acquired an automotive service property in Texas for $5.8 million. These properties are all under long-term triple net leases, indicating stable future income streams. Furthermore, FCPT announced the appointment of Douglas B. Hansen as the new Chair of the Board, following John S. Moody’s retirement. Hansen has been with the company since its inception and has held various roles, including chairing the Compensation Committee. These developments reflect FCPT’s ongoing strategic efforts and leadership transitions.

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