Growth LimitationsWe see little potential for multiple expansion from here, and see the valuation as fair.
Macroeconomic RisksThere could be a more negative stance on FCPT if a worsening macro causes restaurant sector performance to deteriorate or if interest rates remain elevated, stalling progress on accretive investments.
Valuation ConcernsShares currently trade at one of the highest multiples in the net-lease REIT sector, which suggests that the growth potential and high-quality portfolio are currently priced in.