Four Corners Property Trust (FCPT) has added a newly constructed Jiffy Lube location in Colorado to its portfolio for $2.7 million. The property sits in a high‑traffic retail corridor and is leased under a long‑term, triple‑net agreement that is guaranteed by the tenant’s corporate entity, with roughly 12 years remaining on the lease.
The asset is a single‑unit, high‑quality facility that delivers a 7.0% capitalization rate based on rent at closing, exclusive of transaction costs. The triple‑net structure means FCPT receives a stable, net‑leased cash flow that is protected by the tenant’s creditworthiness and the lease’s long‑term horizon.
The acquisition fits FCPT’s disciplined, data‑driven strategy of building a diversified portfolio of essential retail and service properties. In Q3 2025 the REIT added 28 properties totaling $82 million, with auto‑service acquisitions representing 36% of that spend. The new Jiffy Lube adds to the company’s growing presence in the automotive‑service sector while maintaining its focus on small‑box, credit‑worthy assets.
FCPT’s recent financials underscore the modest impact of the deal within a broader context of steady growth. Q3 2025 rental revenue rose 12.2% year‑over‑year to $66.5 million, and net income reached $28.8 million, or $0.28 per diluted share. The company’s operating margin of 55.7% has been slightly compressed over the past five years, but the REIT remains well‑leveraged with a net debt‑to‑EBITDA ratio of 4.7x and a debt load of $1.21 billion. Liquidity remains strong, with a sizable credit facility and a growing number of leases—nearly 1,300 as of the latest filing.
CEO Bill Lenehan highlighted the transaction as part of a broader portfolio‑growth strategy, noting that the company has expanded from 418 to almost 1,300 leases over its 10‑year history. “This acquisition reinforces our disciplined approach to adding high‑quality, net‑leased assets that generate predictable cash flow,” Lenehan said. He also emphasized the REIT’s low leverage profile and significant liquidity, which provide flexibility for future acquisitions.
While the acquisition itself did not trigger a distinct market reaction, it aligns with FCPT’s recent pattern of steady portfolio expansion. The company’s Q3 2025 earnings beat modestly, with EPS of $0.28 versus consensus of $0.29, driven by disciplined cost management and a favorable mix of high‑margin properties. The modest price paid for the Jiffy Lube property—$2.7 million—reflects FCPT’s focus on acquiring small, high‑quality assets that fit its long‑term, income‑generating strategy.
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