INVESTOR FACT SHEET
Q4 2016
NYSE: STOR
STOCK DATA
IPO (11.18.14)
Recent price (2.23.17)
Market cap (MM)
Shares outstanding (MM)
Annual dividend per share
Current dividend yield
$18.50
$24.70
$3,936
159
$1.16
4.7%
ANALYST COVERAGE
Baird
BMO Capital Markets
BTIG
CapitalOne Securities
Goldman Sachs
Janney
KeyBanc
Ladenburg Thalmann
Mizuho Securities USA
Morgan Stanley
Raymond James
Stifel
SunTrust Robinson Humphrey
UBS
Wells Fargo Securities
Wunderlich Securities
S|T|O|R|E is an internally managed net-lease real estate
investment trust, or REIT, that is the leader in the acquisition,
investment and management of Single Tenant Operational
Real Estate, or STORE Properties, which is our target market
and the inspiration for our name. S|T|O|R|E continues the
investment activities of our senior leadership team, which
has been investing in single-tenant operational, or profitcenter, real estate for over thirty-five years. We are one of
the largest and fastest-growing net-lease REITs and own a
large, well-diversified portfolio that consists of investments
in 1,660 property locations or $5.1 billion in gross investment
dollars as of December 31, 2016. Our customers operate
across a wide variety of industries within the service, retail
and manufacturing sectors of the U.S. economy, with
restaurants, early childhood education centers, movie
theaters, health clubs and furniture stores representing the
top industries in our portfolio. We estimate the market for
STORE Properties to exceed $2.6 trillion in market value and
to include more than 1.6 million properties.
Five Keys to Understanding S|T|O|R|E
A GROWTH COMPANY THAT
PAYS A HIGH DIVIDEND,
…BUILT WITH DIVIDEND
SECURITY IN MIND,
…HIGHLY SELECTIVE IN THE
INVESTMENTS WE MAKE,
…SCALABLE IN OUR
OPERATIONS,
…AND FOUNDED ON A 35-YEAR
TRACK RECORD OF PERFORMANCE.
We are a REIT that pays out a minimum of 90% of our taxable income. We are also rapidly
adding to our investment portfolio. Portfolio growth, together with attractive lease contracts
and scheduled rent increases, hold the promise for strong corporate cash flows and
shareholder dividend growth.
We have one of the most highly diversified portfolios of any net-lease real estate
investment trust. In addition, we deem approximately 75% of the lease contracts we hold
to be of investment-grade quality. Our dividend is protected by this diversification and
contract quality, in addition to our prudent dividend payout ratio relative to our cash flow.
We were formed to fill the needs of thousands of large and middle market companies for
efficient long-term capital for their profit-center real estate. By addressing this large market,
we have maintained a large pipeline of targeted investment opportunities since the day we
opened our doors. These opportunities allow us to be selective, choosing tenants we believe
in and investments that offer attractive risk-adjusted returns.
As we grow, we expect the cost to manage our portfolio to decline as a percentage of
investment value. We built STORE with highly efficient systems to enable this operating
leverage.
Experience and leadership matter. Our leadership team has worked together for over 35
years, with STORE being the third in a series of publicly traded companies. Each prior
company outperformed broad REIT performance benchmarks, delivering double-digit rates of
stockholder return. While there can be no assurance that STORE will match this prior
performance, our leadership team has originated and managed more profit-center real estate
for longer than any other in the net-lease business.
“STORE Capital is completely distinctive, constructed deliberately on foundational building blocks based upon our
decades of highly successful investment experience to make this the absolute best platform we have ever created.”
-- Christopher Volk, CEO
WWW.STORECAPITAL.COM
Our Five Competencies
Our Asset Class
» An emphasis on direct tenant relationships:
We aim to create stockholder value through more than
real estate aggregation. We originate over 80% of our
real estate investments through direct tenant relationships
which offers both our tenants and investors superior
value.
» An emphasis on contract creation:
91% of our contracts were created by us or contain our
preferred contract terms, providing strong alignments of
interest with our tenants.
» An emphasis on investment underwriting:
Our investment underwriting continues and expands on
our 35-year focus on research and proven proprietary risk
evaluation.
What makes STORE
Properties an asset class?
STORE Properties have three
payment sources, whereas all
other commercial real estate
assets have just two.
1
STORE Properties are
distinguished by the primary
source of their rent payment:
Profits produced by business
operations at the real estate
locations we own.
2&3
» An emphasis on portfolio management:
S|T|O|R|E incorporates our latest and finest third
generation portfolio management technology, which
permits us to more efficiently maintain portfolio quality.
Common to all real estate
investments is a dependence
on tenant credit quality and
residual value of the underlying
real estate.
» Efficient capital structure:
With our A+ rated long-term debt conduit STORE Master
Funding, our short-term unsecured borrowing capacity,
our investment-grade unsecured term debt, our
conservative dividend payout ratio, and our approximately
$2.2 billion in unencumbered assets, the capital structure
we employ has been developed over 35 years with a
proven ability to create superior stockholder value.
The investment, management
and capitalization
competencies we have
developed arise from the
distinctive characteristics of the
large asset class of STORE
Properties we address.
Our Portfolio at a Glance (as of December 31, 2016)
Investment Property Locations
Customers / States
Weighted Avg. Annual Lease Escalation
Weighted Avg. Remaining Lease Contract Term
Investment Portfolio Subject to NNN Leases
Occupancy
1,660
360 / 48
1.8%
~14 yrs
97%
99.5%
Median Unit Fixed Charge Coverage Ratio (FCCR)
2.09x
Median 4-Wall Coverage Ratio
2.59x
Proportion of Investment Contracts Rated Investment Grade
~75%
Avg. Investment Amount/Replacement Cost (new)
82%
Investment Portfolio Subject to Master Leases
82%
Top Ten Customers
16.7%
For more summary portfolio and financial information, refer to our recent quarterly supplement.
Forward-Looking Statements: Certain statements contained in this fact sheet that are not historical facts contain forward-looking
statements. Forward-looking statements can be identified by the use of words such as "estimate," "anticipate," "expect," "believe,"
"intend," "may," "will," "should," "seek," "approximate" or "plan," or the negative of these words and phrases or similar words or
phrases. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are
subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the
forward-looking statements. These forward-looking statements speak only as the date of this investor fact sheet and should not be
relied upon as predictions of future events. S|T|O|R|E Capital expressly disclaims any obligation or undertaking to update or revise
any forward-looking statements contained herein, to reflect any change in S|T|O|R|E Capital’s expectations with regard thereto,
or any other change in events, conditions or circumstances on which any such statement is based, except as required by law.