Four Corners Property Trust closed the largest single investment in its history in mid July, buying the Mission Pet Health veterinary portfolio on roughly $17.4 million of cash rent. The transaction marked a clear break from the granular deal flow of prior years, and it landed with the refinancing already in place to fund the program. The deal took the 2026 acquisition program past 139 properties, a pace that already exceeds the prior full-year record. The deal also cut Darden exposure from 100 percent of rent at the spinoff to about 41 percent.
The second quarter print kept the growth engine turning, though per share progress lagged the top line. Rental revenue rose 8.0 percent to $70.0 million. Adjusted funds from operations per diluted share came in at $0.45. The 1.4 percent per share growth ran well below the revenue pace because new inventory had not contributed a full quarter of rent, and dilution from the ATM program that settled 1.4 million shares in the first half is still working through the share count.
The load-bearing question is whether the acquisition program can keep funding itself at entry yields in the high single digits while the dividend holds at $1.47 annualized after the move to monthly payments. The counter-question is whether Darden leases maturing in the 2027 window renew at coverage levels that protect the portfolio average. Management's stated goal is to keep the pipeline funded at those entry yields while protecting the payout.