F
our Corners Property Trust (FCPT) has made a strategic move into the healthcare real estate sector by acquiring six Novant Health Urgent Care properties in South Carolina for $12 million. This acquisition underscores FCPT's pivot toward resilient, income-generating assets as the US healthcare landscape evolves. The urgent care sector is experiencing robust growth driven by an aging population and a shift toward outpatient care.

    By 2030, the 65+ demographic will comprise 20% of the US population, fueling demand for accessible, cost-effective services. Urgent care centers are ideal for this purpose, often housed in Medical Outpatient Buildings (MOBs) developed in suburban and residential areas. FCPT's acquisition aligns with these trends, as Novant Health offers stability as a triple net tenant.

    Analysts project that MOB asking rents will rise to $24.86 per sq. ft. in 2025, with vacancy rates falling below 9.5% in key markets like Dallas and Houston. This suggests strong absorption potential for urgent care real estate, supported by favorable capital markets. However, regulatory risks exist, including upcoming Medicare Advantage rate adjustments and stricter mental health parity rules.

    FCPT's diversified portfolio mitigates these risks, with a tenant base spanning 47 states and 99.5% rent collection in Q1 2025. The REIT's $617 million in liquidity and $350 million revolving credit facility provide a buffer against sector-specific downturns. FCPT's stock currently trades at $26.34, with an average price target of $29.86 (13.35% upside) and a GF Value of $28.42 (7.9% upside).

    FCPT represents a low-volatility play on the healthcare real estate boom, with a risk-reward profile that is compelling. The REIT's disciplined capital-raising strategy further strengthens its acquisition pipeline. For investors seeking exposure to a resilient healthcare niche, FCPT offers a strong long-term holding.