Update shared on 02 Dec 2025
Fair value Decreased 0.87%Analysts have modestly reduced their price target for Four Corners Property Trust from $28.75 to $28.50. They cite increased caution around sector profit margins and mixed outlooks across the REIT landscape.
Analyst Commentary
Recent Street research provides a mixed outlook for Four Corners Property Trust, as analysts have adjusted their ratings and expectations in light of ongoing sector dynamics and company-specific developments.
Bullish Takeaways- Analysts note that most REITs have reported healthy operating conditions for Q3 2025, indicating resilience across the sector despite macroeconomic and labor market concerns.
- The company's credit profile remains robust, supporting ongoing stability and ability to manage through cyclical pressures.
- Updated net lease models ahead of quarterly reports signal diligent management and operational transparency. This may aid investor confidence.
- Several analysts have lowered their price targets for Four Corners Property Trust, reflecting tempered expectations for near-term valuation upside.
- Challenges in the restaurant industry, including weak sales and declining traffic, are seen as ongoing headwinds for growth and execution.
- Concerns persist over the company's limited investment volume growth, which could hinder efforts to accelerate expansion into 2026.
- Broader caution in the sector regarding profit margins and mixed outlooks continues to weigh on the sentiment for net lease REITs like Four Corners.
What's in the News
- Acquisition of a five-property veterinary clinic portfolio for $13.8 million, including locations in California, Florida, North Carolina, and Texas under net leases with a weighted average of nine years of term remaining (Key Developments).
- The Board of Directors declares a 3.2% increase in the quarterly dividend to $0.3665 per share for Q4 2025, payable January 15, 2026 (Key Developments).
- Purchase of two Hawaiian Bros restaurant properties in Arizona and Texas for $5.9 million via sale-leaseback, both under long-term triple net leases (Key Developments).
- Acquisition of three automotive service properties in Missouri for $5.9 million, all under 15-year triple net leases (Key Developments).
- Strategic purchase of a Caliber Collision property in Texas for $4.9 million, secured by a five-year triple net lease (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has been modestly reduced from $28.75 to $28.50. This reflects a minor decrease in expected valuation.
- Discount Rate has risen slightly from 8.07% to 8.07%, which indicates a marginally higher perceived risk profile for the stock.
- Revenue Growth projections have increased substantially, rising from 4.39% to 7.95%.
- Net Profit Margin has fallen significantly, decreasing from 45.39% to 38.86% and pointing to anticipated pressure on profitability.
- Future P/E multiple has increased from 30.87x to 32.33x. This suggests analysts expect a higher price-to-earnings ratio going forward.
Disclaimer
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