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STORE Capital: A REIT to Put Away for Income and Growth
06/03/2020 5:00 am EST
STORE Capital Corp. (STOR) is one of the largest and fastest growing net-lease real estate investment trust (REIT), explains income expert Bryan Perry, editor of Cash Machine — a participating speaker at MoneyShow's Virtual Event on June 10-12.
The firm is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate — hence, the acronym STORE, which is the firm target market and the inspiration for its name.
STORE Capital also owns a large, well-diversified portfolio that consists of investments in more than 2,500 property locations across the United States. All of these locations are profit centers. The company specializes in retail properties that are less vulnerable to e-commerce retailing trends.
If you need a haircut, a change of tires, a massage, a pizza, a nice dinner out, an equipment rental, a fishing boat, a new sofa, child care, a gym workout, car repair, pet care, medical or dental services, lumber and materials, a new or used car or warehouse services, STORE is invested in these markets.
Commenting on dealing with the coronavirus pandemic, CEO Christopher Volk said, "We have fortified our balance sheet with excess liquidity and have modest leverage and no meaningful near-term debt maturities."
STORE reported Q1 adjusted funds from operations (FFO) of $0.49 per share that matched the consensus of $0.49. It reported Q1 revenue of $177.9 million versus the consensus of $178.4 million, up 14% from $156.6 million in Q1 2019.
The increase was driven primarily by the growth in the size of STORE's real estate investment portfolio, which grew from $8 billion in gross investment representing 2,334 property locations and 447 customers on March 31, 2019, to $9.1 billion in gross investment representing 2,552 property locations and 491 customers on March 31, 2020. The company ended the first quarter of 2020 with an occupancy rate of 99.5%.
Shares of STOR were trading at $40 just three months ago and are priced at $20.30. STOR’s current dividend yield of 6.90% is good money. The stock will make a fine addition to our portfolio.
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