Four Corners Property Trust Inc.: Updating Estimates for $268mm Veterinary Acquisition

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Four Corners Property Trust Inc.: Updating Estimates for $268mm Veterinary Acquisition

Equity Research

U.S. REITs

5 June 2026

Four Corners Property Trust Inc.

Updating Estimates for $268mm

Veterinary Acquisition

FY26 and FY27 AFFO per share rise 0.8% and 1.2%, FCPT EQUAL WEIGHT

respectively. PT unchanged. Unchanged

U.S. REITs NEUTRAL

Unchanged

Last Friday, Four Corners Property Trust (FCPT) announced a definitive agreement to acquire up

Price Target USD 30.00to 102 Mission Pet Health (MPH) veterinary properties for $268mm from Shore Capital, its PE Unchanged

sponsor, at an initial cash rent of ~$17.3mm (~6.5% cap rate).

Price (04-Jun-26) USD 23.94

We spoke with management following the announcement of the transaction and took away that Potential Upside/Downside +25.3%

Source: Bloomberg, Barclays Researchthe tighter cap rates partially correlates to the low price per property (~$2.6mm). Management

also indicated that the transaction scored well on its internal credit underwriting scorecard.

Market Cap (USD mn) 2627

While we take a measured view on a private equity-backed operator becoming a top tenant, we Shares Outstanding (mn) 109.75

acknowledge Shore Capital’s strong track record and believe partnering with a growing platform Free Float (%) 98.73

could support additional external growth opportunities over time. From a valuation standpoint, 52 Wk Avg Daily Volume (mn) 0.7

the going-in cap rate appears tighter than FCPT’s typical low- to high-7% range AFFO yield. Dividend Yield (%) 6.12

However, this is partially offset by above-average rent escalators exceeding 2% and the Return on Equity TTM (%) 7.54

company’s use of a funding mix of cash and debt. Current BVPS (USD) 15.14

Source: Bloomberg

Since the announcement, FCPT is down 1.4% and is underperfoming its peers.