A Recipe For Success Must Have Good Ingredients

Four Corners Property Trust is a tasty REIT investment

Perhaps some of my readers are growing tired of my enthusiasm for the bear market. Furthermore, the bear market went into temporary hibernation to kick off October. Therefore, I thought I should offer my readers a tasty treat. As most of you know, I like real estate, especially if I don’t have to do anything other than collect the dividends. That is certainly the case with Four Corners Property Trust. (This might be a good recipe for success in a bear market.)

Acquisitions

The way a REIT grows is often through acquiring quality properties in good locations. They want the current tenant to pay them rent for the property. This is a win-win situation. The restaurant can forget about property management and the REIT gets some good revenue.

I watch REITs for Acquisition activity. Seeking Alpha sends me emails when it happens.

Diversification

Diversification always matters. I look for diversification in brands, geography, and strategy. FCPT has a good menu for diversification.

FFO Funds From Operations

FFO pays the dividend. Therefore, I want to know that the FFO is sufficient to cover the dividend. I don’t want to own a REIT that cannot pay me.

FFO (Funds from Operations) is the key determining factor for dividend payments. You can ignore the dividend payout ratio if FFO is good.

Revenue

FFO comes from revenue. So the question is, “does FCPT have growing revenue?”

Always look at the revenue stream when buying any invesstment.

Dividend Growth

Dividend Growth is always a nice thing for the long-term investor.

I have a strong bias towards investments that pay me more every year. Yippee! FCPT fits that profile.

Ratings Matter

FCPT has a BUY QUANT rating.

To save time, I use Seeking Alpha for a high-level view of any ETF, REIT, BDC, or regular company stock. It saves time to know where an investment is weak or strong.

Company Profile

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant 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. And growing portfolios produce growing revenues and that produces growing dividends – or at least it should!

Recent Announcements (FCPT LINK)

Four Corners Property acquires two Buffalo Wild Wings properties for $10.2M

Sep. 27, 2022 Four Corners Property Trust (NYSE:FCPT) has acquired two Buffalo Wild Wings properties for $10.2M. The properties are located in strong retail corridors in New Jersey and are franchisee-operated. The transaction was priced at a 6.4% cap rate on rent as of the closing date, exclusive of transaction costs.

Four Corners Property Trust acquires three WellNow Urgent Care properties for $8.7M

Oct. 05, 2022 Four Corners Property Trust (NYSE:FCPT) has acquired three WellNow Urgent Care properties for $8.7M from ComptonAddy. The properties are newly constructed and located in strong retail corridors in Ohio and are corporate-operated under net leases with 10 years of term remaining.

The deal was priced at a 6.2% cap rate on rent as of the closing date, exclusive of transaction costs.

Four Corners Property Trust acquires three properties in Maryland for $8.5M

Sep. 15, 2022 Four Corners Property Trust (NYSE:FCPT) said Thursday it acquired three properties in Maryland for $8.5M. The Miller’s Ale House, Olive Garden and Outback Steakhouse properties are occupied under triple net ground leases to the corporate entities, with a weighted average remaining term of approx. eight years. The overall deal was priced at a cap rate in range with prior FCPT transactions.

Four Corners Property Trust acquires two properties in Illinois for $6.5M

Sep. 15, 2022 Four Corners Property Trust (NYSE:FCPT) said Thursday it acquired a Circle K property and a Firestone property in Illinois for $6.5M. The properties are occupied under long-term, triple net leases with a weighted average of 5 years of term remaining. The deal was priced at a 7% cap rate.

Full Disclosure

Cindie and I own a total of 300 shares of FCPT. And the dividends will probably keep coming!