Four Corners Property Trust (FCPT) completed the purchase of four Mission Pet Health retail locations for a total of $9.3 million. The properties are located in high‑traffic retail corridors in Illinois (three sites) and Wisconsin (one site) and are leased under long‑term, net‑lease agreements with a weighted‑average remaining term of 11 years.
The acquisition marks FCPT’s first entry into the pet‑health services tenant segment, a move that broadens the REIT’s exposure beyond its core restaurant and automotive portfolios. By adding a stable, national brand with a growing customer base, FCPT aims to reduce concentration risk and capture a segment that has shown resilient demand amid rising pet ownership and spending.
The transaction was priced at a 6.9% capitalization rate based on the net operating income of the properties, a figure that aligns with FCPT’s typical cap‑rate range for similar assets. The deal adds $9.3 million of new assets to a portfolio that already includes more than 1,200 properties and a debt load of $1.21 billion, underscoring the company’s disciplined approach to growth while maintaining a strong liquidity position.
FCPT’s CEO, Bill Lenehan, said the move “strengthens our portfolio by adding a high‑quality, long‑term tenant in a growing industry.” He added that the acquisition is part of the REIT’s broader strategy to acquire assets with predictable cash flows and to diversify tenant mix in order to support steady dividend growth.
The addition of Mission Pet Health sites is expected to enhance FCPT’s rental‑income stability and support its long‑term dividend policy. With the new properties bringing in a mix of retail and service‑center traffic, the REIT can leverage its existing management expertise in net‑lease operations while tapping into a sector that has demonstrated consistent growth and low vacancy rates.
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