STORE Capital Corporation (STOR): Business Model Canvas

Key Partnerships

STORE Capital Corporation relies on a number of key partnerships to effectively operate its business model. These partnerships include:

• Real estate developers: STORE Capital works closely with real estate developers to identify potential investment opportunities and develop properties that meet the needs of its tenants.
• Tenant companies: The company partners with a variety of tenant companies across different industries to lease properties and generate rental income.
• Financial institutions: STORE Capital collaborates with financial institutions to secure funding for property acquisitions and expansions.
• Investment partners: The company works with investment partners to raise capital for new investments and projects.
• Legal and tax advisors: STORE Capital engages with legal and tax advisors to ensure compliance with regulations and optimize its financial strategies.

These partnerships are crucial to the success of STORE Capital's business model, as they provide the company with the resources and expertise needed to acquire, develop, and lease properties profitably.

Key Activities

STORE Capital Corporation focuses on several key activities to maintain its position in the commercial real estate sector. These activities are crucial in ensuring the success and growth of the business.

• Acquiring commercial real estate: One of the primary activities of STORE Capital is acquiring commercial real estate properties. This involves identifying potential properties, conducting due diligence, negotiating deals, and completing the acquisition process.
• Managing property leases: Once properties are acquired, the company focuses on managing property leases. This includes setting lease terms, negotiating with tenants, ensuring lease compliance, and handling any lease-related issues that may arise.
• Portfolio diversification: STORE Capital strategically diversifies its portfolio to reduce risk and maximize returns. The company invests in a variety of property types and locations to create a well-balanced portfolio that can weather market fluctuations.
• Risk management: Risk management is a key activity for STORE Capital. The company assesses and mitigates risks associated with its properties, tenants, market conditions, and other factors to protect its investments and maintain financial stability.
• Tenant relations: STORE Capital prioritizes building strong relationships with its tenants. This involves effective communication, responsive property management, addressing tenant needs and concerns, and fostering a positive leasing experience for all tenants.

Key Partnerships

STORE Capital Corporation relies on key partnerships to support its operations and drive business growth. These partnerships are essential in helping the company achieve its strategic goals and deliver value to its stakeholders.

• Real estate brokers: STORE Capital collaborates with real estate brokers to identify potential investment opportunities, acquire properties, and negotiate favorable deals. These partnerships help the company access a wider network of properties and expand its real estate portfolio.
• Tenant businesses: Strong partnerships with tenant businesses are crucial for STORE Capital. Building and maintaining positive relationships with tenants can lead to lease renewals, long-term tenancy, and a stable income stream for the company.
• Financial institutions: STORE Capital works closely with financial institutions to secure funding for property acquisitions, capital improvements, and other investment activities. These partnerships help the company access capital at competitive rates and terms to support its growth and expansion strategies.
• Property management companies: Partnering with property management companies allows STORE Capital to efficiently manage its real estate portfolio, handle day-to-day property operations, and provide quality services to tenants. These partnerships help the company maintain high property occupancy rates and maximize property performance.

Key Resources

STORE Capital Corporation (STOR) possesses a number of key resources that drive its success in the commercial real estate industry. These resources include:

• STORE Capital owns a diverse portfolio of properties across various industries, providing a stable and consistent stream of income.
• The company strategically acquires properties that offer long-term growth potential and stable cash flows, allowing them to generate sustainable returns for investors.

• STOR has access to significant capital resources, allowing them to finance new acquisitions and capital expenditure projects.
• This strong financial position enables the company to quickly capitalize on market opportunities and grow their real estate portfolio.

• STORE Capital has a team of experienced professionals with deep knowledge of the commercial real estate market.
• Their expertise in property valuation, market analysis, and tenant relationships allows them to make informed investment decisions and effectively manage their portfolio.

• STOR has established relationships with a wide range of creditworthy tenants, including national and regional companies.
• This strong tenant network helps mitigate risk and ensure a high occupancy rate across their properties.

• STORE Capital's property management teams are responsible for maintaining and enhancing the value of their real estate assets.
• These teams handle day-to-day operations, tenant relationships, and property maintenance to ensure a positive tenant experience and maximize property performance.

Value Propositions

Long-term net lease investments: STORE Capital Corporation (STOR) focuses on long-term net lease investments, providing stability and predictability for investors. This strategy allows for consistent rental income streams and a reliable source of cash flow.

Diverse portfolio reducing risk: By maintaining a diverse portfolio of properties, STORE Capital Corporation (STOR) is able to reduce risk and minimize exposure to fluctuations in any one industry or market. This diversification strategy enhances the stability and resilience of the company's investment portfolio.

Steady rental income streams: Through its focus on net lease investments, STORE Capital Corporation (STOR) is able to generate steady rental income streams for its investors. This reliable source of cash flow provides stability and predictability for shareholders.

Focus on middle-market and larger tenants: STORE Capital Corporation (STOR) targets middle-market and larger tenants, providing a stable tenant base with strong credit quality. This focus on creditworthy tenants helps to reduce the risk of default and enhances the overall quality of the company's investment portfolio.

Involvement in attractive and resilient markets: STORE Capital Corporation (STOR) seeks to invest in attractive and resilient markets that offer long-term growth potential. By focusing on markets with strong fundamentals and growth prospects, the company is able to position itself for continued success and value creation.

Customer Relationships

STORE Capital Corporation (STOR) prides itself on creating strong and lasting relationships with its tenants through a variety of strategies:

• Long-term lease agreements: By offering long-term lease agreements, STOR provides stability to tenants, allowing them to plan for the future with confidence.
• Regular tenant communication: STOR values open communication with its tenants and regularly engages in discussions to address any concerns or issues that may arise.
• Responsive support for tenant needs: STOR is committed to providing top-notch support for its tenants, quickly addressing any maintenance or operational issues that may impact their business.
• Partnership approach to lease management: STOR takes a collaborative approach to lease management, working closely with tenants to ensure that both parties are able to achieve their goals.
• Transparency in operations and dealings: STOR believes in transparency in all aspects of its operations, providing tenants with clear and honest information about lease terms, property management, and financial matters.

Channels

STORE Capital Corporation utilizes multiple channels to facilitate its business operations and grow its portfolio of properties. These channels include:

• Direct property acquisitions: One of the primary channels through which STORE Capital acquires properties is through direct acquisitions. The company identifies target properties that align with its investment criteria and negotiates directly with property owners to purchase these assets.
• Investment partnerships: Another key channel for STORE Capital is forming partnerships with other investors or real estate companies to jointly acquire properties. This allows the company to pool resources and expertise, enabling it to pursue larger and more complex deals.
• Brokerage firms: STORE Capital also works with brokerage firms to identify potential acquisition opportunities and facilitate transactions. These firms help source properties, negotiate deals, and provide market insights to support STORE Capital's investment decisions.
• Company website and investor relations: The company's website serves as an important channel for communicating with investors and providing information about its properties, financial performance, and investment opportunities. The investor relations team also plays a key role in engaging with shareholders and potential investors.
• Financial advisors and consultants: STORE Capital engages with financial advisors and consultants to help manage its financial strategy, assess investment opportunities, and optimize its capital structure. These professionals provide valuable insights and expertise to support STORE Capital's growth and profitability.

Customer Segments

STORE Capital Corporation (STOR) caters to a diverse range of customer segments within the real estate investment industry. These segments include:

• Institutional investors: These are large investment firms, such as pension funds and insurance companies, that seek to invest in real estate assets for long-term income generation and capital appreciation. STORE Capital offers them access to a diversified portfolio of single-tenant net-lease properties with long-term leases in place.
• Private equity firms: Private equity firms are another key customer segment for STORE Capital. These firms typically invest in real estate properties with the goal of improving operational efficiency and increasing value. STORE Capital provides them with high-quality assets and a strong tenant base to achieve their investment objectives.
• Real estate investment trusts (REITs): REITs are publicly traded companies that own and operate income-producing real estate assets. STORE Capital partners with REITs to acquire and manage net-lease properties that align with their investment strategies and objectives.
• Individual investors looking for real estate exposure: Individual investors seeking exposure to the real estate market can invest in STORE Capital through publicly traded shares on the stock market. This allows them to diversify their investment portfolios with real estate assets without the hassle of direct property ownership.
• Financial institutions: Financial institutions, such as banks and investment firms, partner with STORE Capital to finance the acquisition and development of net-lease properties. These institutions provide the capital needed to fund STORE Capital's growth and expansion initiatives.

Cost Structure

STORE Capital Corporation (STOR) has a comprehensive cost structure that includes various components required for the successful operation of its business model.

• Property acquisition costs: One of the major expenses for STORE Capital is the acquisition of properties. These costs include the purchase price of properties, due diligence expenses, and any associated fees.
• Operational management expenses: STORE Capital incurs costs related to the day-to-day management of its properties. This includes property maintenance, utilities, property taxes, insurance, and property management fees.
• Marketing and investment outreach: To attract potential tenants and investors, STORE Capital invests in marketing and outreach efforts. This includes advertising, branding, website development, and attendance at industry events.
• Legal and compliance costs: As a real estate investment trust (REIT), STORE Capital must adhere to strict legal and compliance requirements. This includes legal fees, regulatory compliance costs, and audit expenses.
• Interest and financing expenses: STORE Capital relies on debt financing to fund property acquisitions and operations. As a result, the company incurs interest expenses on its outstanding loans and other financing costs.

Revenue Streams

STORE Capital Corporation (STOR) generates revenue through various streams that contribute to its overall financial success. These revenue streams include:

• Rental income from leases: One of the primary sources of revenue for STOR comes from leasing properties to tenants. The company offers long-term leases to a diverse range of tenants, providing a steady stream of rental income.
• Gains from property sales: STOR may also realize revenue through the sale of properties in its portfolio. By strategically selling properties that have increased in value, the company can generate capital gains.
• Management fees: In addition to leasing properties, STOR may also earn management fees for overseeing the operations of properties owned by third parties. This provides an additional source of revenue for the company.
• Interest earned on financing solutions: STOR provides financing solutions to tenants, which can include financing for property acquisitions, renovations, or expansion projects. In return, the company earns interest on these financing agreements, adding to its revenue stream.
• Incremental revenue through property value appreciation: As the value of properties in STOR's portfolio appreciates over time, the company may realize incremental revenue through increases in property value. This can result in higher rental income, increased property sale proceeds, and overall growth in revenue for the company.