Four Corners Property Trust (FCPT) completed the purchase of a five‑property portfolio of veterinary clinics for $13.8 million. The acquisition includes two National Veterinary Associates locations, two Banfield Pet Hospital sites, and one Mission Pet Health property, spread across California, Florida, North Carolina, and Texas. All five properties are net‑leased, providing FCPT with a stable, long‑term income stream.
The portfolio carries a weighted average remaining lease term of nine years and was priced at a 7.3% cap rate on rent as of the closing date, exclusive of transaction costs. The cap rate reflects the high quality of the tenants—nationally recognized veterinary operators with strong financial profiles—and the long‑term lease structure that limits tenant turnover risk.
FCPT’s strategy has long focused on acquiring high‑quality, net‑leased assets in essential retail and service sectors. Adding veterinary clinics aligns with that strategy because pet care is a non‑discretionary expense that has shown resilience during economic downturns. The U.S. pet‑ownership rate has risen steadily, and veterinary services are projected to grow at a compound annual rate of 8.7%, creating a tailwind for the asset class. By diversifying into this sector, FCPT reduces concentration risk in its traditional restaurant and retail holdings and positions itself to benefit from a growing demand for essential services.
The acquisition also improves FCPT’s portfolio metrics. Prior to the deal, the company’s overall occupancy rate was 99.2% and the weighted average lease term was 8.5 years. Adding the new properties pushes the average lease term to 8.8 years and maintains the high occupancy level, while expanding geographic exposure to the southeastern U.S. and Texas, which were underrepresented in the existing portfolio.
CEO Bill Lenehan said the transaction “continues our disciplined, data‑driven approach to portfolio growth and strengthens our presence in essential service sectors.” He added that the company’s recent Q3 2025 results—$74.15 million in revenue and $28.85 million in net income—demonstrate the effectiveness of its acquisition strategy, and that the new veterinary assets will contribute to a stable, long‑term cash‑flow stream.
The deal is part of a broader acquisition spree that saw FCPT add $82 million of properties in Q3 2025, a mix that included medical, auto‑service, and quick‑service restaurant assets. The veterinary portfolio represents a strategic shift toward higher‑margin, essential‑service tenants, reinforcing FCPT’s goal of building a resilient, diversified real‑estate portfolio that can weather economic cycles.
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