Analysis of FCPT Rating Discrepancies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy FCPT?
Source: Benzinga
- Rating Discrepancy: Fitch rates FCPT at BBB with a stable outlook, while Moody's assigns a Baa3 rating, indicating that FCPT is teetering on the edge of investment grade, which could affect investor confidence and cost of capital.
- Leverage Metrics: FCPT's net debt to adjusted EBITDA ratio stands at 4.7x, rising to 5.3x without considering unsettled forward equity, showcasing management's cautious approach to deleveraging with 97% of debt being fixed-rate, indicating financial stability.
- Dividend Payout Ratio Risk: With an AFFO payout ratio of 82.8%, there is a buffer, but any weaker performance in upcoming quarters could push this ratio above 85%, jeopardizing the sustainability of the dividend.
- Future Outlook: FCPT is set to report Q4 2025 earnings on February 11, 2026, with market focus on whether the AFFO payout ratio remains stable, serving as a critical indicator of the company's financial health.
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Analyst Views on FCPT
Wall Street analysts forecast FCPT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FCPT is 29.75 USD with a low forecast of 29.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 25.490
Low
29.00
Averages
29.75
High
30.00
Current: 25.490
Low
29.00
Averages
29.75
High
30.00
About FCPT
Four Corners Property Trust, Inc. is a real estate investment trust (REIT), which owns, acquires and leases properties for use in the restaurant and retail industries. The Company's segments are real estate operations and restaurant operations. Its real estate operations segment consists of rental revenues primarily generated by leasing restaurant properties to tenants through net lease arrangements under which the tenant is primarily responsible for ongoing costs relating to the properties. Its restaurant operations segment is conducted through a taxable REIT subsidiary and consists of its Kerrow Restaurant Operating Business. The Kerrow Restaurant Operating Business consists of seven LongHorn Steakhouse restaurants located in the San Antonio, Texas area. Its properties are located in Florida, Texas, Georgia, Ohio, Illinois, Indiana, Michigan, Pennsylvania, Wisconsin, Alabama, Minnesota, Arkansas, Louisiana, New York, Arizona, Nevada, Mississippi, and Colorado, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of FCPT Rating Discrepancies
- Rating Discrepancy: Fitch rates FCPT at BBB with a stable outlook, while Moody's assigns a Baa3 rating, indicating that FCPT is teetering on the edge of investment grade, which could affect investor confidence and cost of capital.
- Leverage Metrics: FCPT's net debt to adjusted EBITDA ratio stands at 4.7x, rising to 5.3x without considering unsettled forward equity, showcasing management's cautious approach to deleveraging with 97% of debt being fixed-rate, indicating financial stability.
- Dividend Payout Ratio Risk: With an AFFO payout ratio of 82.8%, there is a buffer, but any weaker performance in upcoming quarters could push this ratio above 85%, jeopardizing the sustainability of the dividend.
- Future Outlook: FCPT is set to report Q4 2025 earnings on February 11, 2026, with market focus on whether the AFFO payout ratio remains stable, serving as a critical indicator of the company's financial health.
See More
Analysis of FCPT's 52-Week High and Low Points
- Price Range Analysis: FCPT's 52-week low is $22.78 per share, with a high of $29.81, and the last trade at $25.43 indicates the stock's volatility within this range, reflecting market interest in its price movements.
- Technical Indicator Insights: The current price of $25.43 is above the 52-week low, suggesting a partial recovery in market confidence for FCPT, which may attract more investor attention towards its future performance.
- Dividend Stock Performance: FCPT is among the dividend stocks that recently crossed above their 200-day moving average, indicating its potential for stable returns, which may appeal to investors seeking consistent income.
- Market Sentiment Impact: Despite the current price fluctuations within the 52-week range, the market sentiment towards FCPT remains neutral, reflecting investor caution regarding its future growth prospects.
See More
Four Corners Property Trust Acquires New Asset
- Acquisition Deal: Four Corners Property Trust has acquired a GreatWater 360 Auto Care property for $2.3 million via a sale-leaseback arrangement, demonstrating the company's ongoing expansion in high-quality net-leased properties.
- Lease Terms: The property is corporate-operated under a long-term triple net lease, ensuring stable cash flow and returns, which further enhances the quality of FCPT's investment portfolio.
- Market Positioning: Located in a highly trafficked corridor in Minnesota, this property highlights FCPT's focus on location and potential customer traffic when selecting properties to maximize future leasing revenues.
- Cap Rate: The transaction's cap rate aligns with previous FCPT transactions, reflecting the company's consistent investment standards and strategies in the market, thereby bolstering investor confidence in its financial stability.
See More
Four Corners Property Trust Acquires New Property
- Acquisition Transaction: Four Corners Property Trust has acquired a GreatWater 360 Auto Care property for $2.3 million via sale-leaseback, demonstrating the company's investment strategy in high-traffic areas.
- Long-Term Lease: The property is corporate-operated under a long-term triple net lease, ensuring stable cash flow and returns, thereby enhancing FCPT's financial stability.
- Market Positioning: The acquired property is located in a busy corridor in Minnesota, indicating FCPT's strategic insight in selecting high-potential markets, which helps to elevate the overall value of its investment portfolio.
- Company Background: FCPT, headquartered in Mill Valley, CA, focuses on the ownership, acquisition, and leasing of restaurant and retail properties, aiming to expand its market share by adding high-quality assets.
See More
Four Corners Property Trust Acquires McAlister's Deli
- Acquisition Announcement: Four Corners Property Trust has acquired a McAlister's Deli property for $2.3 million, which is newly constructed and located in a strong retail corridor in Michigan, demonstrating the company's ongoing commitment to acquiring high-quality assets.
- Long-Term Lease: The property is operated by a franchisee under a long-term net lease, ensuring stable cash flow and enhancing the company's attractiveness in the restaurant and retail investment sectors.
- Market Positioning: The transaction was priced at a cap rate consistent with previous FCPT transactions, indicating the company's consistent pricing strategy and accurate assessment of asset value in the market.
- Strategic Expansion: FCPT aims to grow its portfolio by acquiring more restaurant and retail properties, and this acquisition further solidifies its position in the high-quality net lease market, supporting future growth potential.
See More
FCPT Acquires GreatWater 360 Auto Care Property for $1.2 Million
- Acquisition Transaction: FCPT has acquired a GreatWater 360 Auto Care property for $1.2 million through a sale-leaseback arrangement, demonstrating the company's ongoing strategy in investing in high-quality properties.
- Market Positioning: The property is situated in a highly trafficked corridor in Indiana and is operated by GreatWater under a long-term triple net lease, ensuring stable cash flow and rental income for FCPT.
- Industry Context: With GreatWater operating approximately 150 full-service automotive centers in the Midwest and Texas, this acquisition not only enhances FCPT's asset portfolio but also strengthens its position in the restaurant and retail property market.
- Financial Performance: The transaction's cap rate aligns with previous FCPT transactions, indicating the company maintains good financial discipline during acquisitions, which will aid future investment decisions.
See More
Analysis of FCPT Rating Discrepancies
- Rating Discrepancy: Fitch rates FCPT at BBB with a stable outlook, while Moody's assigns a Baa3 rating, indicating that FCPT is teetering on the edge of investment grade, which could affect investor confidence and cost of capital.
- Leverage Metrics: FCPT's net debt to adjusted EBITDA ratio stands at 4.7x, rising to 5.3x without considering unsettled forward equity, showcasing management's cautious approach to deleveraging with 97% of debt being fixed-rate, indicating financial stability.
- Dividend Payout Ratio Risk: With an AFFO payout ratio of 82.8%, there is a buffer, but any weaker performance in upcoming quarters could push this ratio above 85%, jeopardizing the sustainability of the dividend.
- Future Outlook: FCPT is set to report Q4 2025 earnings on February 11, 2026, with market focus on whether the AFFO payout ratio remains stable, serving as a critical indicator of the company's financial health.
See More
Analysis of FCPT's 52-Week High and Low Points
- Price Range Analysis: FCPT's 52-week low is $22.78 per share, with a high of $29.81, and the last trade at $25.43 indicates the stock's volatility within this range, reflecting market interest in its price movements.
- Technical Indicator Insights: The current price of $25.43 is above the 52-week low, suggesting a partial recovery in market confidence for FCPT, which may attract more investor attention towards its future performance.
- Dividend Stock Performance: FCPT is among the dividend stocks that recently crossed above their 200-day moving average, indicating its potential for stable returns, which may appeal to investors seeking consistent income.
- Market Sentiment Impact: Despite the current price fluctuations within the 52-week range, the market sentiment towards FCPT remains neutral, reflecting investor caution regarding its future growth prospects.
See More
Four Corners Property Trust Acquires New Asset
- Acquisition Deal: Four Corners Property Trust has acquired a GreatWater 360 Auto Care property for $2.3 million via a sale-leaseback arrangement, demonstrating the company's ongoing expansion in high-quality net-leased properties.
- Lease Terms: The property is corporate-operated under a long-term triple net lease, ensuring stable cash flow and returns, which further enhances the quality of FCPT's investment portfolio.
- Market Positioning: Located in a highly trafficked corridor in Minnesota, this property highlights FCPT's focus on location and potential customer traffic when selecting properties to maximize future leasing revenues.
- Cap Rate: The transaction's cap rate aligns with previous FCPT transactions, reflecting the company's consistent investment standards and strategies in the market, thereby bolstering investor confidence in its financial stability.
See More
Four Corners Property Trust Acquires New Property
- Acquisition Transaction: Four Corners Property Trust has acquired a GreatWater 360 Auto Care property for $2.3 million via sale-leaseback, demonstrating the company's investment strategy in high-traffic areas.
- Long-Term Lease: The property is corporate-operated under a long-term triple net lease, ensuring stable cash flow and returns, thereby enhancing FCPT's financial stability.
- Market Positioning: The acquired property is located in a busy corridor in Minnesota, indicating FCPT's strategic insight in selecting high-potential markets, which helps to elevate the overall value of its investment portfolio.
- Company Background: FCPT, headquartered in Mill Valley, CA, focuses on the ownership, acquisition, and leasing of restaurant and retail properties, aiming to expand its market share by adding high-quality assets.
See More
Four Corners Property Trust Acquires McAlister's Deli
- Acquisition Announcement: Four Corners Property Trust has acquired a McAlister's Deli property for $2.3 million, which is newly constructed and located in a strong retail corridor in Michigan, demonstrating the company's ongoing commitment to acquiring high-quality assets.
- Long-Term Lease: The property is operated by a franchisee under a long-term net lease, ensuring stable cash flow and enhancing the company's attractiveness in the restaurant and retail investment sectors.
- Market Positioning: The transaction was priced at a cap rate consistent with previous FCPT transactions, indicating the company's consistent pricing strategy and accurate assessment of asset value in the market.
- Strategic Expansion: FCPT aims to grow its portfolio by acquiring more restaurant and retail properties, and this acquisition further solidifies its position in the high-quality net lease market, supporting future growth potential.
See More
FCPT Acquires GreatWater 360 Auto Care Property for $1.2 Million
- Acquisition Transaction: FCPT has acquired a GreatWater 360 Auto Care property for $1.2 million through a sale-leaseback arrangement, demonstrating the company's ongoing strategy in investing in high-quality properties.
- Market Positioning: The property is situated in a highly trafficked corridor in Indiana and is operated by GreatWater under a long-term triple net lease, ensuring stable cash flow and rental income for FCPT.
- Industry Context: With GreatWater operating approximately 150 full-service automotive centers in the Midwest and Texas, this acquisition not only enhances FCPT's asset portfolio but also strengthens its position in the restaurant and retail property market.
- Financial Performance: The transaction's cap rate aligns with previous FCPT transactions, indicating the company maintains good financial discipline during acquisitions, which will aid future investment decisions.
See More
