When considering acquiring a stock, it’s crucial to assess fundamentals, historical performance, dividend growth, and recent events. Understanding analysts’ perceptions and quarterly earnings reports can provide valuable insights.
Four Corners Property Trust (FCPT) is a REIT that has consistently grown its revenue and earnings while paying a hefty dividend yield. The company owns a diversified portfolio of long-term leased properties with a focus on recession-resistant tenants, such as medical, retail, and auto service. Its disciplined acquisition strategy emphasizes national brands and strong credit operators.
In its recent fourth quarter, FCPT met analyst estimates and reported an increase in revenue and funds from operations (FFO). The company continues to pay a quarterly dividend of $0.345, providing an annualized dividend yield of 6.06%. Although the payout ratio is slightly higher than optimal, FFO has increased in recent quarters, suggesting a potential decline in the payout ratio in the future.
FCPT’s management team recently announced a change in its CFO position, with Patrick Wernig succeeding Gerry Morgan. The company also acquired a Banfield Pet Hospital in Iowa, further diversifying its portfolio. This acquisition aligns with FCPT’s strategy of acquiring properties at cap rates around 7%.
Analysts are generally positive on FCPT, with two Strong Buys, one Buy, and three Hold ratings. The stock has pulled back from its highs in January, providing an attractive entry point for investors seeking a combination of income and appreciation potential. The company’s stable business model, high dividend yield, and strategic acquisitions make it a compelling investment option in the real estate sector.
