Four Corners Property Trust (FCPT) recently acquired a GreatWater 360 Auto Care property in Indiana for US$1.2 million via a sale leaseback, highlighting continued portfolio expansion with a long term, triple net corporate lease.

That latest auto care acquisition comes as the share price sits at US$24.80, with a 30 day share price return of 6.53% and a 5 year total shareholder return of 18.42%. This suggests momentum has picked up recently while longer term gains have been steadier.

If you like the sale leaseback angle but want to cast a wider net, now could be a good time to check out auto manufacturers.

With FCPT trading at US$24.80, sitting on a 47.27% implied intrinsic discount and a 13.41% gap to analyst targets, the key question is whether the market is overlooking future growth or already factoring it in.

Most Popular Narrative: 11.8% Undervalued

With Four Corners Property Trust last closing at US$24.80 against a narrative fair value of US$28.13, the valuation case rests heavily on projected cash flows and the pricing of future earnings.

The company's focus on acquiring and expanding high quality, e commerce resistant retail and essential service properties (such as quick service restaurants, automotive services, and medical retail) positions FCPT's tenant base to benefit from long term growth in physical service retail, supporting future rental income and revenue stability. Favorable U.S. demographic trends, continued population growth and suburbanization increase demand for free standing and outparcel retail formats, directly aligning with FCPT's portfolio strategy and supporting long term asset value appreciation, which should strengthen balance sheet metrics and potential earnings growth.

Curious what earnings path and margin profile sit behind that fair value, and why the assumed future P/E is higher than today? The narrative hinges on a specific mix of revenue growth, profitability and share issuance that could shift the entire valuation picture.

Result: Fair Value of $28.13 (UNDERVALUED)

However, that story could be challenged if casual dining, which still contributes a large share of rent, weakens, or if modest rent escalators lag a period of higher inflation.

Build Your Own Four Corners Property Trust Narrative

If you are not on board with this view or simply prefer to weigh the numbers yourself, you can shape your own narrative in a few minutes, starting with Do it your way.

A great starting point for your Four Corners Property Trust research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.