FCPT Announces Acquisition of a National Veterinary Associates Property for $3.5 Million

Rhea-AI Summary

Four Corners Property Trust (NYSE:FCPT) has announced the acquisition of a National Veterinary Associates property in Connecticut for $3.5 million. The property is corporate-operated and secured by a new long-term, triple net lease featuring annual rent increases. The transaction's cap rate aligns with FCPT's previous acquisitions. This purchase aligns with FCPT's strategy as a REIT focused on high-quality, net-leased restaurant and retail properties.

Positive

• Strategic acquisition expanding portfolio into veterinary sector
• Secured by long-term triple net lease with annual rent increases
• Cap rate consistent with company's historical transactions

Negative

• None.

Insights

REIT Investment Analyst

The $3.5 million acquisition of a National Veterinary Associates (NVA) property marks a strategic expansion into the resilient veterinary care sector. The triple net lease structure transfers property expenses to the tenant while providing FCPT with steady, growing income through annual rent escalators. NVA's corporate backing as one of North America's largest veterinary care providers adds tenant quality to FCPT's portfolio.

The Connecticut location diversifies FCPT's geographic footprint while the cap rate alignment with previous transactions suggests disciplined pricing in line with market fundamentals. For a $2.6 billion market cap REIT, this single asset acquisition represents just 0.13% of enterprise value, making it an incremental rather than transformative deal. The veterinary sector's recession-resistant characteristics and growing pet ownership trends support stable long-term cash flows.

MILL VALLEY, Calif.--(BUSINESS WIRE)-- Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties (“FCPT” or the “Company”), is pleased to announce the acquisition of a National Veterinary Associates property for $3.5 million. The property is located in Connecticut and is corporate-operated under a new long-term, triple net lease with annual rent bumps. The transaction was priced at a cap rate in range with previous FCPT transactions.

About FCPT

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries. Additional information about FCPT can be found on the website at www.fcpt.com.

Category: Acquisition

View source version on businesswire.com: https://www.businesswire.com/news/home/20241223284729/en/

Four Corners Property Trust:

Bill Lenehan, 415-965-8031

CEO

Patrick Wernig, 415-965-8038

CFO

Source: Four Corners Property Trust

FAQ

How much did FCPT pay for the National Veterinary Associates property acquisition?

FCPT acquired the National Veterinary Associates property for $3.5 million.

Where is FCPT's newly acquired National Veterinary Associates property located?

The newly acquired property is located in Connecticut.

What type of lease agreement does FCPT have for the National Veterinary Associates property?

The property is under a new long-term, triple net lease with annual rent bumps.

How does this acquisition's cap rate compare to FCPT's previous transactions?

The transaction was priced at a cap rate that is in range with FCPT's previous transactions.

What is FCPT's primary business focus as a REIT?

FCPT is primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties.