Through buying high quality real estate and leasing it to strong companies, STORE Capital has quickly grown its investment portfolio since its inception in 2011. Christopher Volk, CEO of STORE Capital discusses the origins of the company and the unique way in which it provides real estate lease solutions to its customers.
STORE Capital Corporation (NYSE: STOR) is one of the largest and fastest growing net-lease REITs in the U.S. Validating STORE’s strong position, Warren Buffett's Berkshire Hathaway
recently invested $377 million in the company after following its progress for several years.
STORE, which stands for Single Tenant Operational Real Estate, takes a unique approach to providing middle market and larger companies with long-term real estate capital solutions that allow them to grow their businesses. STORE was founded in 2011 by a leadership team that previously built and successfully managed two net-lease real estate investment companies. Over its six-year history, STORE has grown its business into a large, well-diversified portfolio of investments approaching 2,000 property locations in 48 states.
Today, STORE has a $4.9 billion equity market cap and offers a 4.8% dividend yield, reflecting a 24% dividend increase from 2014 to 2017, with the most recent 6.9% increase announced for the third quarter. In its most recent quarter, the company reported a nearly 30% increase in AFFO as compared to the second quarter in 2016. STORE’s financial strength reflects market-leading internal growth, multiple investment-grade borrowing options, conservative leverage and a flexible balance sheet.