Four Corners Property Trust (FCPT) completed the purchase of a newly constructed Baptist Health facility in a high‑traffic retail corridor in Alabama for $4.7 million. The asset is leased to Baptist Health under a long‑term net lease that is expected to generate stable cash flow for the next ten years.
The acquisition continues FCPT’s strategy of expanding its portfolio beyond its core restaurant and retail holdings into the healthcare sector. The company previously acquired a Baptist Medical Group primary‑care property for $9.7 million in February 2024, and the new purchase reinforces its relationship with a credit‑worthy tenant that operates a network of medical facilities.
Management highlighted that the deal aligns with FCPT’s focus on high‑quality, long‑term leases to nationally branded tenants. CEO Bill Lenehan noted that “acquiring properties from strong, branded healthcare providers allows us to diversify our tenant mix while maintaining predictable, net‑leased cash flows.”
Financially, the transaction was priced at a 6.8% cap rate based on rent at closing, consistent with FCPT’s recent acquisitions. The purchase price and lease terms are in line with the company’s historical valuation metrics, suggesting a disciplined approach to asset selection.
The addition of the Baptist Health property strengthens FCPT’s geographic and sector diversification, positioning the REIT to benefit from the growing demand for healthcare real estate and the stability of long‑term net leases. The deal is expected to contribute positively to FCPT’s asset‑level earnings per share and support its ongoing dividend policy.
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