Four Corners Property Trust (FCPT) announced the acquisition of an Applebee’s location in California for $4.3 million and a newly constructed National Veterinary Associates (NVA) facility in Georgia for $4.4 million, bringing the total transaction value to $8.7 million.
The Applebee’s property sits in a high‑traffic retail corridor and is leased under a triple‑net agreement to the Flynn Group franchisee. The lease has approximately seven years remaining, and the transaction was priced at a 6.2% cap rate on base rent (7.4% including percentage rent), reflecting the strong demand for casual‑dining tenants in the region.
The NVA facility is a corporate‑operated, long‑term net lease with about 15 years of term left. FCPT paid $4.4 million for the property, which was acquired at a 6.7% cap rate, underscoring the REIT’s focus on essential‑service tenants that offer stable cash flows and lower risk profiles.
These acquisitions illustrate FCPT’s disciplined, data‑driven strategy of diversifying its tenant mix beyond casual dining. By adding a veterinary‑health tenant, the REIT expands into an essential‑service sector that typically exhibits resilient demand, while the Applebee’s deal reinforces its core restaurant portfolio with a high‑quality franchisee that has a proven track record of growth and strong lease terms.
FCPT’s recent financial performance supports the rationale for these purchases. In Q4 2024, the REIT reported rental revenue of $60.7 million, up 5.3% YoY, and an AFFO per diluted share of $0.44, a slight increase from $0.43 in Q3 2024. The company also declared a dividend of $0.3550 per share for Q4 2024, reflecting its commitment to shareholder returns while maintaining a low leverage profile and ample liquidity.
CEO Bill Lenehan emphasized that the acquisitions are part of a broader plan to acquire high‑quality, long‑term net‑lease properties that deliver predictable cash flows. “We continue to focus on disciplined capital allocation and strategic tenant diversification,” Lenehan said, noting that the recent volume of acquisitions—$264.6 million in 2024—demonstrates the REIT’s ability to scale while preserving credit quality.
The broader market context for net‑leased properties remains favorable, with investors seeking stable income streams amid rising interest rates. FCPT’s move into essential services aligns with industry trends that favor tenants with lower sensitivity to economic cycles, positioning the REIT to weather potential downturns while sustaining growth in its core restaurant segment.
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