FCPT Signs Agreement to Acquire Up to 102 Mission Pet Health Veterinary Properties in $268 Million Transaction
Four Corners Property Trust (FCPT), a leading real estate investment trust specializing in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has announced the signing of a definitive agreement to acquire up to 102 veterinary real estate assets operated by Mission Pet Health (MPH). The transaction, valued at up to $268 million, marks one of the largest veterinary real estate acquisitions in FCPT’s history and reflects the company’s ongoing strategy to diversify its portfolio while expanding its presence in the growing medical retail sector.
The properties are being acquired from Shore Capital Real Estate Partners Fund I, an affiliate of Shore Capital Partners, which has played a significant role in supporting the growth and expansion of Mission Pet Health. Upon completion of the transaction, Mission Pet Health will remain the long-term tenant across the portfolio, ensuring operational continuity and providing FCPT with a stable and predictable income stream.
Mission Pet Health has emerged as one of the largest veterinary service providers in the United States. As of May 2026, the company operates more than 930 veterinary locations nationwide, making it a major player in the rapidly expanding animal healthcare industry. Through its platform model, Mission Pet Health partners with independent veterinary practices across the country, offering operational support and growth opportunities while allowing many clinic owners to monetize their real estate assets as part of the transition process.
The acquisition represents a strategic opportunity for FCPT to significantly increase its exposure to veterinary healthcare properties, a segment that has demonstrated strong demand fundamentals driven by rising pet ownership, increased spending on animal healthcare, and the growing humanization of pets. Industry analysts continue to view veterinary services as a resilient and defensive sector, supported by recurring demand and favorable long-term demographic trends.
The portfolio consists of up to 102 veterinary properties located across 31 states, providing FCPT with broad geographic diversification. The assets are situated in established retail and medical corridors characterized by strong population growth, attractive demographics, and high household income levels. These locations are expected to support long-term tenant performance and property value appreciation.
States included within the portfolio span a wide geographic footprint, including Alabama, Alaska, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin.
The transaction structure provides FCPT with favorable lease characteristics that align with its long-term investment strategy. The majority of the properties are subject to two triple-net master lease agreements. One master lease covers 55 properties, while a second covers 45 properties. In addition, the portfolio includes two individually leased locations.
Triple-net lease arrangements are particularly attractive to real estate investment trusts because tenants are responsible for property taxes, insurance, and maintenance expenses. This structure reduces operating risk for property owners while generating reliable rental income.
The acquired portfolio has an average remaining lease term of approximately 10 years, providing FCPT with long-term revenue visibility. The leases also include annual rent escalations averaging more than 2%, offering built-in rental growth and helping protect against inflationary pressures over time.
The transaction has been priced based on initial annual cash rent of approximately $17.33 million. This figure includes contractual rent increases scheduled to take effect in September 2026, further enhancing the income profile of the investment.
FCPT expects the acquisition to close in early third quarter 2026, subject to the completion of customary due diligence procedures and standard closing conditions. The company plans to finance the purchase through a combination of available cash resources and borrowings under its existing revolving credit facility.
Importantly, FCPT indicated that it expects to remain comfortably below its targeted leverage thresholds following the completion of the transaction. This reflects the company’s disciplined capital allocation strategy and commitment to maintaining a strong balance sheet while pursuing growth opportunities.
The acquisition will have a meaningful impact on FCPT’s portfolio composition. On a pro forma basis, taking into account this transaction and other acquisitions completed since March 31, 2026, Mission Pet Health is expected to account for approximately 6% of FCPT’s total cash rent. This would make Mission Pet Health the company’s third-largest brand relationship.
The deal also advances FCPT’s broader diversification objectives. Following the transaction, the company’s exposure to medical retail properties is expected to increase to approximately 16% of total cash rent. At the same time, exposure to its largest tenant category will decline, creating a more balanced and diversified portfolio structure.
FCPT Chief Executive Officer Bill Lenehan emphasized the strategic importance of the acquisition and its alignment with the company’s long-term investment goals.
According to Lenehan, FCPT has maintained an active presence in the veterinary real estate sector for many years, and the opportunity to acquire a large-scale portfolio with a proven operator represents a significant milestone for the company. He highlighted the portfolio’s long-term master lease structure, attractive rent growth provisions, and strong tenant rent coverage metrics as key factors supporting the investment.
The portfolio’s financial performance is underpinned by conservative EBITDAR rent coverage levels averaging more than six times across the portfolio. Such coverage levels indicate strong tenant operating performance and provide confidence in the sustainability of rental payments over the long term.
Steve Malley, Partner and Head of Real Estate at Shore Capital Partners, noted that Mission Pet Health has successfully developed a high-quality veterinary platform supported by a unique growth strategy that includes opportunities for veterinary practice owners to unlock value from real estate ownership.
Malley expressed confidence that FCPT’s expertise in net-leased real estate ownership and management makes it an ideal long-term partner for the portfolio. He added that the transaction positions both organizations for continued success while supporting a durable and mutually beneficial landlord-tenant relationship.
With the acquisition, FCPT continues to demonstrate its commitment to expanding beyond traditional restaurant real estate into sectors with strong growth potential. The addition of the Mission Pet Health portfolio enhances the company’s exposure to healthcare-related real estate while strengthening its foundation for future growth, diversification, and long-term shareholder value creation.
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