Store Capital

Store Capital Corporation, commonly styled STORE Capital, was a United States real estate investment trust focused on acquiring and managing operational commercial real estate. The name STORE was derived from the phrase “Single Tenant Operational Real Estate,” reflecting the company’s emphasis on properties occupied by one business and used directly in that business’s operations. The company was headquartered in Scottsdale, Arizona, and operated across the United States. Founded in 2011, Store Capital developed a business model centered on sale-leaseback transactions. Under this arrangement, a business sells a property it owns to the REIT and simultaneously leases the property back, allowing the operating company to unlock capital while continuing to use the site. Store Capital stated that sale-leasebacks represented roughly 80 percent of its acquisitions. The company generally pursued long-term, triple-net, or NNN leases, under which tenants were responsible for most property-level expenses such as taxes, insurance, and maintenance. This structure was intended to produce relatively predictable rental income and reduce the landlord’s direct operating burden. The company’s tenant base extended beyond large, publicly rated corporations. Store Capital often worked with middle-market businesses whose debt or corporate credit was not rated by major credit-rating agencies. To assess these tenants, it commonly required property-level operating and profitability information. This approach enabled Store Capital to evaluate the earning capacity of individual locations rather than relying only on a parent company’s public credit rating. Its properties served a broad range of service, retail, and manufacturing activities, including restaurants, entertainment venues, theme parks, car washes, automotive repair and parts businesses, pet-related retailers, plant nurseries, and furniture stores. Backed by Oaktree Capital Management during its early development, Store Capital filed for an initial public offering in August 2014 and became publicly traded on the New York Stock Exchange later that year under the symbol STORE. Its shares were subsequently included in the S&P 400 index in 2020. By June 30, 2022, the company reported a portfolio valued at approximately $11.4 billion, comprising 3,012 properties operated by 579 customers across 49 states. About 94 percent of the portfolio consisted of commercial real estate subject to long-term leases, while the remainder consisted primarily of mortgage loans and commercial real estate financing receivables. Store Capital underwent important governance and ownership changes before leaving the public markets. Co-founder and former chief executive Christopher Volk was terminated without cause as executive chairman in December 2021. Tawn Kelley, who had joined the board in 2020 and was also a vice president of Taylor Morrison Home Corporation, became non-executive chair. In September 2022, Singaporean sovereign wealth fund GIC and Oak Street agreed to acquire Store Capital in an all-cash transaction valued at approximately $14 billion. The transaction removed the company from public trading and ended its period as a listed REIT, while the Store Capital business continued as a privately owned real estate investment platform.

Store Capital was established in 2011 as a real estate investment trust built around single-tenant operational real estate. Its name referred to the company’s investment focus: properties occupied by individual businesses and used in the production of operating income. Rather than concentrating solely on traditional office, apartment, or shopping-center assets, the company sought properties that were important to the day-to-day activities of restaurants, entertainment operators, retailers, service providers, and manufacturers. A central part of Store Capital’s strategy was the sale-leaseback. In a typical transaction, an operating company sold a property to Store Capital and leased it back under a long-term agreement. The seller received capital that could be used for expansion, debt reduction, acquisitions, or other corporate purposes, while Store Capital gained a contractual stream of rent. Approximately 80 percent of the company’s acquisitions were described as sale-leaseback transactions. Most investments were structured as long-term triple-net leases, transferring many property-level expenses to tenants and giving the REIT a more predictable cost structure. Store Capital frequently served businesses that were smaller or less widely followed than investment-grade corporate tenants. Because many customers lacked public credit ratings, the company emphasized property-level analysis and required substantial information about the profitability of individual leased locations. This method allowed it to judge whether a site generated sufficient operating cash flow to support rent. The resulting portfolio was diversified by industry and geography, with properties located throughout the United States. Oaktree Capital Management backed the company during its development. Store Capital filed for an initial public offering in August 2014 and subsequently became listed on the New York Stock Exchange under the ticker STORE. Its public-market profile expanded as the portfolio grew, and the stock entered the S&P 400 in 2020. By June 30, 2022, the company reported 3,012 properties operated by 579 customers across 49 states. The portfolio was valued at approximately $11.4 billion. Roughly 94 percent consisted of commercial properties leased under long-term arrangements, with the balance primarily comprising mortgage loans and commercial real estate financing receivables. Leadership changed at the end of 2021. Christopher Volk, a co-founder who had served as chief executive and executive chairman, was terminated without cause on December 28. The company provided cash severance and other benefits under the terms of his employment agreement. Tawn Kelley, a board member since 2020 and a vice president of Taylor Morrison Home Corporation, became chair in a non-executive capacity. The company’s period as a public REIT ended in 2022. In September of that year, Singapore’s sovereign wealth fund GIC and Oak Street, an investment business within Blue Owl Capital, agreed to acquire Store Capital in an all-cash transaction valued at about $14 billion. The acquisition took Store Capital private and ended its NYSE listing. Store Capital is therefore best understood as an active real estate investment business with a former public-company history, rather than as a currently listed corporation.

• 2022

  Taken private in an approximately $14 billion acquisition

  [1]Store Capitalen.wikipedia.org

  GIC and Oak Street agreed to acquire Store Capital in an all-cash transaction, ending its public-company status.

• 2021

  Change in board chairmanship

  [1]Store Capitalen.wikipedia.org

  Christopher Volk left the executive chair role after being terminated without cause, and Tawn Kelley became non-executive chair.

• 2020

  Included in the S&P 400

  [1]Store Capitalen.wikipedia.org

  Store Capital’s stock was added to the S&P 400 index.

• 2014

  Initial public offering and NYSE listing

  [1]Store Capitalen.wikipedia.org

  The company filed for an IPO in August and later became publicly traded on the New York Stock Exchange under the ticker STORE.

• 2011

  Store Capital founded

  [1]Store Capitalen.wikipedia.org

  Store Capital was established as a United States REIT focused on single-tenant operational real estate.

A specialized net-lease real estate investment platform focused on mission-critical, single-tenant commercial properties and middle-market operating businesses.

• Real estate finance

  Sale-leaseback transactions

  Store Capital’s core transaction involved buying an operating company’s property and leasing it back to that same company under a long-term agreement. This structure gave tenants access to property capital while allowing Store Capital to obtain contractual rental income tied to an operating site. Sale-leasebacks accounted for roughly 80 percent of acquisitions described in the company’s operating profile.

• Commercial real estate

  Single-tenant commercial properties

  The company invested primarily in properties occupied by one business and used directly in that business’s operations. Examples included restaurants, theaters, theme parks, car washes, automotive service locations, pet shops, plant nurseries, furniture stores, and other service, retail, and manufacturing sites across the United States.

• Net-lease real estate

  Long-term triple-net leases

  Store Capital commonly structured investments as long-term NNN leases. Under this arrangement, tenants generally bear responsibility for property taxes, insurance, maintenance, and other operating costs, while the landlord receives rent under the contractual lease terms. The model was intended to support stable income and limit direct property-management obligations.

• Real estate lending

  Commercial real estate financing

  In addition to owned properties, Store Capital held mortgage loans and other financing receivables secured by commercial real estate. These positions represented a smaller part of the reported portfolio than leased properties, accounting for approximately 6 percent as of June 30, 2022.

• 2022

  Accept acquisition by GIC and Oak StreetM&A

  Background

  Store Capital was a publicly traded REIT with a large diversified portfolio of single-tenant commercial properties and long-term leases.

  Action taken

  The company agreed to an all-cash acquisition by GIC and Oak Street, a division of Blue Owl Capital, at an announced value of approximately US$14 billion.

  Aftermath

  The transaction took Store Capital private and ended its listing on the New York Stock Exchange.

  Announced transaction value. Approximately US$14 billion (September 2022)

  Source

• 2021

  Replace the executive chair after Christopher Volk’s departureStrategy

  Background

  Christopher Volk, a co-founder and former chief executive, was terminated without cause on December 28, 2021, under the terms of his employment agreement.

  Action taken

  The board appointed Tawn Kelley, an existing director, as chair in a non-executive capacity.

  Aftermath

  The change separated the chair role from day-to-day executive management and preceded the company’s 2022 transition to private ownership.

  Source

1. 1Store Capitalen.wikipedia.org