STORE Capital Corporation (STOR): history, ownership, mission, how it works & makes money

A Brief History of STORE Capital Corporation (STOR)

Foundation and Initial Public Offering

STORE Capital Corporation was founded in 2011 by Christopher L. Volk and his executive team. The company specializes in real estate investment trusts (REITs) that invest in single-tenant operational real estate. STORE went public with its initial public offering (IPO) on August 6, 2014, raising approximately $120 million.

Business Model and Investment Strategy

The company employs a distinctive strategy focusing on properties used in service-based industries, including retail, healthcare, and education. STORE typically engages in sale-and-leaseback transactions, providing capital to businesses while allowing them to maintain operational control of their facilities.

Portfolio Growth and Diversification

As of Q3 2023, STORE Capital's portfolio includes over 2,500 properties, with a total investment of approximately $6.6 billion. The properties are diversified across more than 50 different industries.

Financial Performance

STORE Capital has demonstrated consistent revenue growth. In the fiscal year 2022, the company reported revenues of approximately $707.6 million, with a net income of $185.2 million. The funds from operations (FFO) was recorded at $550 million for the same year.

Recent Developments

As of Q3 2023, STORE Capital declared a quarterly dividend of $0.40 per share, which reflects an annualized dividend of $1.60, representing a dividend yield of approximately 5.1% based on the stock price of $31.20. The company has consistently increased its dividends since its IPO.

Market Position and Recognition

STORE Capital is recognized among the largest players in the net-lease REIT sector. It has been included in the S&P 500 index as of 2021, signifying its growth and stability in the market.

Corporate Governance

STORE Capital practices a robust corporate governance framework, aiming to ensure transparency and accountability. The board consists of experienced professionals from diverse backgrounds, including finance, real estate, and business management.

Conclusion

Overall, STORE Capital Corporation has established a significant presence in the REIT market, demonstrating resilience and adaptability in its investment strategies and financial performance.

A Who Owns STORE Capital Corporation (STOR)

Major Shareholders

The ownership of STORE Capital Corporation (STOR) is distributed among various institutional and individual investors. As of the latest data, the major shareholders include:

Insider Ownership

Insider ownership provides insight into the confidence of company executives in STORE Capital Corporation. The following table outlines key insider holdings:

Institutional Ownership

As of the most recent filings, STORE Capital has seen significant institutional ownership, reflecting strong investment interest. The following breakdown illustrates the distribution of shares among institutional investors:

Public Ownership

Public ownership of STORE Capital is also a significant aspect, with a substantial percentage of shares held by retail investors. As of the latest reports, the following highlights are noted:

• Total Outstanding Shares: 139,894,339
• Public Float: 93,200,000 shares
• Average Daily Trading Volume: 1,300,000 shares
• Market Capitalization: $3.20 billion
• Current Stock Price: $22.88

Changes in Ownership Structure

Over the last fiscal year, STORE Capital has experienced changes in its ownership structure. The following table summarizes notable changes:

Summary Statistics

Additional relevant statistics concerning STORE Capital's ownership include:

• Total Number of Shareholders: Approximately 31,000
• Average Number of Shares Held per Shareholder: 4,500
• Percentage of Shares Held by Top 10 Shareholders: 48.35%
• Number of Institutional Shareholders: 162

STORE Capital Corporation (STOR) Mission Statement

Corporate Overview

STORE Capital Corporation, a leading real estate investment trust (REIT), is primarily focused on investing in single-tenant operational real estate. The company seeks to provide sustainable, long-term value through innovative real estate finance solutions.

Mission Statement

STORE Capital’s mission emphasizes the commitment to unlocking growth potential in single-tenant retail, service, and industrial properties through strategic partnerships and long-term leases. The core components of their mission statement reflect a dedication to:

• Providing stable cash flow through a diversified portfolio.
• Fostering partnerships with best-in-class operators.
• Delivering strong total returns to stakeholders.

Financial Performance Metrics

As of Q3 2023, STORE Capital reported the following financial highlights:

Portfolio Composition

As of September 30, 2023, STORE Capital has a diversified portfolio comprised of:

• Over 2,800 properties.
• Properties located in 49 states across the U.S.
• More than 50 different industries.

Investment Strategy

The investment strategy of STORE Capital revolves around:

• Long-term leases averaging 15 years.
• Acquisition of properties on a sale-leaseback basis.
• Focus on essential properties in essential businesses.

Market Position

STORE Capital holds a significant position in the market with:

• Market Capitalization: $7.5 billion
• Rank among public REITs: Top 10 in terms of total return.
• Credit rating: BBB from Standard & Poor's.

Growth Initiatives

The company's growth initiatives include:

• Expanding the portfolio through acquisitions, targeting $1 billion annually.
• Enhancing operational efficiencies in property management.
• Investing in technology to streamline lease management.

Stakeholder Engagement

STORE Capital actively engages with stakeholders through:

• Regular updates on financial performance and strategic direction.
• Commitment to sustainability and corporate responsibility.
• Transparent communication of risks and opportunities.

Recent Achievements

Key recent achievements for STORE Capital include:

• Increased occupancy rates to 99.4% as of Q3 2023.
• Awarded "Best Places to Work" by the Phoenix Business Journal in 2023.
• Recognition as one of the top dividend-paying REITs in the industry.

How STORE Capital Corporation (STOR) Works

Business Model

STORE Capital Corporation operates as a real estate investment trust (REIT) specializing in acquiring and managing single-tenant operational real estate properties. The company focuses on long-term net lease agreements with its tenants, which typically have initial terms of 15 to 20 years.

Investment Strategy

The investment strategy of STORE Capital is centered around acquiring properties that generate stable cash flows. The company targets sectors such as:

• Retail
• Health and Fitness
• Food and Beverage
• Education
• Healthcare

Financial Overview

As of Q2 2023, STORE Capital reported the following financial highlights:

Portfolio Composition

STORE Capital has a diversified portfolio consisting of thousands of properties across various sectors. The company’s properties are leased to over 500 tenants across 49 states in the United States.

As of Q2 2023, the company’s portfolio consisted of:

Tenant Diversification

The company maintains a diversified tenant base, reducing reliance on any single tenant. The largest tenant contributes less than 7% of the total rental revenue. The top five tenants are:

Lease Structure

STORE Capital typically enters into long-term, triple-net lease agreements, where tenants are responsible for property taxes, insurance, and maintenance. This structure provides a consistent and predictable cash flow for STORE Capital.

Growth Strategy

The growth strategy of STORE Capital involves:

• Acquiring high-quality properties in favorable locations
• Expanding into new sectors
• Increasing tenant relationships
• Enhancing the existing portfolio through asset management

Recent Developments

In Q3 2023, STORE Capital announced the acquisition of 16 new properties across various sectors, bringing its total property count to over 2,600. The acquisitions were valued at approximately $150 million.

Market Position

STORE Capital holds a leading position in the net lease REIT sector, serving as an attractive option for investors seeking stable income through dividends. The company has maintained a strong credit rating with major rating agencies, with a recent upgrade to investment grade status.

Conclusion

STORE Capital Corporation's business model focuses on stability and growth through strategic acquisitions and a diversified tenant base, positioning it favorably within the REIT landscape. Its financial performance underscores the effectiveness of its operational strategy in generating reliable income.

How STORE Capital Corporation (STOR) Makes Money

Revenue Model

STORE Capital Corporation generates revenue primarily through leasing real estate properties. The company operates as a Real Estate Investment Trust (REIT), focusing on the acquisition and management of single-tenant operational real estate.

Lease Structure

The company typically enters into long-term net leases with its tenants, which often include the following key terms:

• Average lease term of approximately 15 years
• Rent escalations of around 1.5% to 2% annually
• Net lease agreements, meaning tenants are responsible for property taxes, insurance, and maintenance costs

Portfolio Diversification

As of the latest reports, STORE Capital's portfolio consists of approximately 2,800 properties across various sectors. This diversification helps stabilize revenue streams.

Industry Focus

STORE Capital primarily focuses on the following industries:

• Service Retail
• Health and Wellness
• Entertainment
• Education

Average Annual Rental Revenue

Financial Performance

STORE Capital has reported consistent growth in its financial performance. As of the year ended December 31, 2022, key financial metrics include:

• Net income: $150 million
• Adjusted Funds from Operations (AFFO): $400 million
• Annual dividend payout: $1.44 per share
• Market capitalization: Approximately $6.5 billion

Funding and Capital Structure

STORE Capital utilizes a mix of equity and debt financing to fund its acquisition of properties. As of the latest quarter, the company has:

• Total debt: $2.0 billion
• Debt to Adjusted EBITDA ratio: 5.5x
• Equity capital raised: $4 billion

Acquisition Strategy

STORE Capital actively seeks to acquire properties that meet specific criteria:

• At least 10 years remaining on the lease
• Strong tenant credit ratings
• Properties located in high-traffic areas

Tenant Diversification

The company’s tenant base is also diverse, with the largest tenant representing only 6% of total revenue. This reduces risk and promotes steady income.

Market Trends

The REIT sector has shown resilience; however, STORE Capital continues to monitor trends that affect rental income, such as:

• Inflation rates impacting tenant operations
• Interest rate fluctuations affecting capital costs
• Changes in consumer behavior

Future Growth Prospects

STORE Capital is well-positioned for future growth, with an acquisition pipeline reportedly exceeding $1 billion. The company aims to expand its property portfolio while maintaining quality and diversification.