UBS Reiterates Buy Rating on Four Corners Property Trust (FCPT) on Improvement in Growth Outlook

UBS analyst Michael Goldsmith reiterated a Buy rating and $30.00 price target on Four Corners Property Trust (NYSE: FCPT).

The analyst commented, "We see considerable upside to FCPT's shares as we believe the market has yet to fully recognize the improvement in its growth outlook. FCPT has recently accelerated acquisition activity including the purchase of 102 Mission Pet Health Veterinary properties for $268 mm and 14 Sun Auto Tire & Service properties for $26 mm. So far in 2026, FCPT has acquired properties totaling $360 mm, already exceeding its FY 2025 volume of $318 mm. In our view, this signals FCPT's appetite and ability to scale external growth. After updating our model, we now forecast 2026 AFFO of $1.86 (cons. $1.85) and 2027 AFFO of $1.97 (cons. $1.93). We expect consensus estimates to move higher as these recent and future acquisitions are reflected in consensus models. Our updated estimates imply AFFO growth accelerates from 2026 of 4.5% to 2027 of 5.7%. This would position FCPT to generate some of the strongest AFFO growth in Triple Net Lease next year. Combined with its dividend yield of 5.8%, this implies a total return profile in excess of 11%. Yet, its shares are trading at an NTM AFFO multiple on consensus of 13.4x or on our estimate of about 13x. This represents a premium to Triple Net Lease peers of 1.5% which is well below its 5-yr average premium of 14.9%. Further, our regression of Triple Net Lease 2027 AFFO growth vs. valuation suggests FCPT should trade closer to 15x.."

For an analyst ratings summary and ratings history on Four Corners Property Trust click here. For more ratings news on Four Corners Property Trust click here.

Shares of Four Corners Property Trust closed at $24.90 yesterday.

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