Four Corners Property Trust acquires Chuy’s property for $2.9M

MILL VALLEY, Calif. - Four Corners Property Trust (NYSE:FCPT), a real estate investment trust with a market capitalization of $2.83 billion and an impressive 84.86% gross profit margin, has expanded its portfolio through the acquisition of a Chuy’s restaurant property in Texas for $2.9 million. The transaction, involving the Tex-Mex cuisine restaurant chain, was finalized at a 6.7% capitalization rate on the current rent, excluding transaction costs. According to InvestingPro data, FCPT has demonstrated solid performance with 6.97% revenue growth over the last twelve months.

Chuy’s, a casual dining brand with over 100 locations in the United States, was recently incorporated into Darden Restaurants’ portfolio. The acquired property is situated in a robust retail corridor and operates under a corporate-guaranteed triple net lease with approximately five years remaining on the term. FCPT maintains a strong dividend yield of 5.03% and has consistently raised its dividend for three consecutive years.

FCPT specializes in the ownership and acquisition of high-quality, net-leased properties within the restaurant and retail sectors. With this recent purchase, the company continues its strategic growth by adding to its collection of leased real estate assets. The property’s prime location and the existing lease agreement represent a continuation of FCPT’s investment approach, focusing on stable, income-producing real estate.

The company’s current strategy includes targeting additional properties for acquisition to further increase its leasing portfolio in the restaurant and retail industries. This aligns with FCPT’s broader objective to enhance shareholder value through careful property selection and management.

This news is based on a press release statement from Four Corners Property Trust.

In other recent news, Four Corners Property Trust reported its Q4 2024 earnings, with earnings per share (EPS) of $0.27, slightly missing the forecasted $0.29. The company also reported revenue of $60.7 million, which fell short of the anticipated $61.5 million. Despite these misses, the company demonstrated strong financial health with a 95% lease renewal rate and portfolio occupancy at 99.6%. The company’s Adjusted Funds From Operations (AFFO) per share increased by 2.3% year-over-year to $0.44, contributing to a full-year AFFO growth of 3.6% from 2023. Additionally, Four Corners Property Trust has $250-$350 million available for acquisitions, indicating plans for future growth. The company also extended and upsized its credit facility, providing more liquidity for acquisitions. Analysts from Janney Montgomery and UBS have shown interest in the company’s acquisition strategies and the impact of interest rates on its operations. The company remains focused on strategic investments and maintaining high occupancy rates, which may have bolstered investor confidence despite the earnings miss.

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