Published on June 23rd, 2026 by Bob Ciura
Four Corners Property Trust (FCPT) has two appealing investment characteristics:
#1: It is offering an above-average dividend yield of 6.1%, more than five times the average dividend yield of the S&P 500.
#2: It pays dividends monthly instead of quarterly.
You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:
Four Corners Property Trust’s combination of an above-average dividend yield, and a monthly dividend, makes it an attractive option for income investors.
This article will analyze monthly dividend payer Four Corners Property Trust in greater detail.
Business Overview
Four Corners Property Trust was formed after the Darden Restaurants, Inc (DRI) spin-off, announced in November 2015.
FCPT is a real estate investment trust primarily acquiring and leasing restaurant properties. The Trust seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.
As of the end of the first quarter, FCPT’s portfolio of 1,313 properties across 48 states was 99.6% occupied with a weighted average remaining lease term of 6.7 years.
On April 29th, 2026, FCPT reported first-quarter financial and operating results for fiscal year 2026. The company announced strong first quarter 2026 results, with total revenues of $78.2 million, up 9.4% year-over-year, and rental revenue rising 10.0% to $69.8 million.
Net income attributable to common shareholders was $30.3 million, or $0.28 per diluted share, compared to $26.2 million, or $0.26 per share, in the prior-year quarter.
Adjusted Funds from Operations (AFFO) per diluted share grew 3.4% to $0.45, while NAREIT-defined FFO per share increased 4.7% to $0.42.
CEO Bill Lenehan highlighted the company’s strengthened balance sheet and new $200 million term loan, positioning FCPT for accretive growth.
Rent collections remained excellent at 99.7% of contractual base rent.
FCPT ended the quarter with approximately $380 million in liquidity, including $30 million in cash and $350 million available on its revolving credit facility. Net debt to adjusted EBITD are stood at a conservative 5.0x.
Growth Prospects
The most significant growth prospects from FCPT will be the continuation of profitable acquisitions in the future.
In the first quarter, the company acquired ten properties for $26.2 million at an initial cash yield of 6.8% and a GAAP yield of 7.3%, with a weighted average lease term of 10.0 years.
The Trust does not have a long history of FFO growth, but FCPT has grown FFO at a Compound Annual Growth Rate (CAGR) of 2.22% over the past five years.
During the COVID-19 pandemic, most REITs had to cut their dividend, or FFO decreased for the year. However, FCPT increased earnings by 4% from FY2019 to FY2020.
We expect FCPT to continue to grow FFO at a 3% CAGR for the next five years. We expect the trust to make $2.02 per share in 2031.
Dividend & Valuation Analysis
The dividend has been growing steadily, with a five-year average growth rate of 2.8%. We think that the Trust will continue to raise its dividend at a pace of 3% for the next five years.
The most recent increase was 3.2% on November 10th, 2025.
FCPT’s competitive advantage is that it has a good management team.
Also, the Trust is structured as a triple-net lease, which means property maintenance, taxes, and insurance are the tenant’s responsibility.
This results in strong operating margins in the 80-90% range for this sector, compared to most shopping center REITs’ ~65% operating margins.
FCPT does not have a long history, but the Trust held steadfast during the COVID-19 pandemic. From 2019 to 2020, revenue grew 6.9%, and FFO increased 4%.
This speaks volumes as most retail REITs struggle mightily during the pandemic. Also, FCPT did not have to cut its dividend.
FCPT had a good balance sheet. The Trust has an interest coverage ratio of 3.2 and a debt-to-equity ratio of 0.7. The dividend payment is in line with other REITs paying out 85% of its FFO.
FCPT currently trades for 14.0 times 2026 expected FFO-per-share. Over the short history of FCPT, the Trust has five-year multiple averages of 16.2x FFO.
However, we think a multiple of 17x FFO is fair for FCPT because it will be in line with the sector median. Therefore, the stock appears to be undervalued at the current valuation level.
An expanding P/FFO multiple could provide a 4.2% tailwind to its annual returns over the next five years. The current dividend yield of 6.1% is attractive and higher than its five-year average.
Combined with expected FFO-per-share growth of 3% per year, total returns are expected to reach 11.9% annually over the next five years.
Final Thoughts
FCPT is a well-run retail REIT with a good balance sheet. The Trust went through the COVID-19 pandemic relatively well.
The Trust looks undervalued valued, with an attractive expected total return for the next five years. However, we rate it as a hold due to a somewhat risky dividend payout.
Additional Reading
Don’t miss the resources below for more monthly dividend stock investing research.
- 20 Highest Yielding Monthly Dividend Stocks
- 10 Cheapest Monthly Dividend Stocks
- 10 Safest Monthly Dividend Stocks
- 3 Top ‘Hold Forever’ Monthly Dividend Stocks
And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
- Dividend Kings: 50+ years of rising dividends
- Dividend Champions: 25+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- High Dividend Stocks: 4%+ dividend yields
- Blue Chip Stock: Kings, Aristocrats, and Achievers
- MLPs: List of MLPs and more
- REITs: List of REITs and more
- BDCs: List of BDCs and more