Raises 2016 Acquisition Volume Guidance; Narrows 2016 AFFO Per Share
Guidance
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--
STORE
Capital Corporation (NYSE: STOR), an internally managed net-lease
real estate investment trust (REIT) that invests in Single Tenant
Operational Real Estate, today announced operating
results for the first quarter ended March 31, 2016.
Highlights
For the quarter ended March 31, 2016:
-
Total revenues of $85.2 million
-
Net income per share of common stock of $0.18 (basic and diluted)
-
AFFO of $55.8 million
-
AFFO of $0.40 per common share (basic and diluted)
-
Declared a regular quarterly cash dividend per common share of $0.27
-
Invested $284.5 million in 73 properties at an initial weighted
average cap rate of 8.0%
Management Commentary
“With our first quarter results, we are off to a great start for 2016,”
said Christopher H. Volk, President and Chief Executive Officer of STORE
Capital. We significantly increased our quarterly profitability,
originated $285 million of gross investments and brought our highly
diversified investment portfolio to $4.3 billion. During the quarter,
the public float of our shares rose meaningfully, with an earlier than
expected divestiture by our founding stockholder of their shares in
STORE just 17 months after our IPO. We believe this rapid exit was
enabled by our unique approach to the large market that we address for
Single Tenant Operational Real Estate net-lease solutions. STORE’s
outstanding reception in the marketplace has enabled us to build a
strong financial foundation and business franchise while delivering
market-leading investment activity and standout growth.
“Based on our investment activity we have closed thus far in 2016, we
are increasing our guidance on real estate acquisition volume for 2016
to approximately $900 million, net of projected property sales, and
narrowing our 2016 AFFO per share guidance range to $1.60 to $1.63. We
are excited about the remainder of this year as we continue to build on
the founding principles that have created one of the largest and
fastest-growing net-lease REITs operating today.”
Financial Results
Total Revenues
Total revenues were $85.2 million for the first quarter of 2016, an
increase of 38.7% from $61.5 million for the first quarter of 2015. The
increase was driven primarily by the growth in the size of STORE
Capital’s real estate investment portfolio, which grew from $3.1 billion
in gross investment amount representing 1,073 property locations at
March 31, 2015 to $4.3 billion in gross investment amount representing
1,397 property locations at March 31, 2016.
Net Income
Net income increased to $24.8 million, or $0.18 per basic and diluted
share, for the first quarter of 2016 compared to $17.1 million in net
income, or $0.15 per basic and diluted share, for the first quarter of
2015. Net income for the first quarter of 2016 includes a $0.3 million
net loss on the sale of one property; in comparison, the first quarter
of 2015 included a $1.0 million provision for impairment of real estate.
Adjusted Funds from Operations (AFFO)
AFFO increased 41.2% to $55.8 million, or $0.40 per basic and diluted
share, for the first quarter of 2016, compared to AFFO of $39.5 million,
or $0.34 per basic and diluted share, for the first quarter of 2015. The
increase in AFFO between years was primarily driven by additional rental
revenues and interest income generated by the growth in the Company’s
real estate investment portfolio.
Dividend Information
As previously announced, STORE Capital declared a regular quarterly cash
dividend per common share of $0.27 for the first quarter ended March 31,
2016. This dividend, totaling $38.0 million, was paid on April 15, 2016
to stockholders of record on March 31, 2016.
Real Estate Portfolio Highlights
Investment Activity
The Company originated $284.5 million of gross investments representing
73 property locations during the first quarter of 2016. These
investments had an initial weighted average cap rate of 8.0%. The
Company defines “initial cap rate” for property acquisitions as the
initial annual cash rent divided by the purchase price of the property.
Portfolio
At March 31, 2016, STORE Capital’s real estate portfolio totaled
$4.3 billion representing 1,397 property locations, substantially all of
which are profit centers for the Company’s customers. Approximately 95%
of the portfolio represents commercial real estate properties subject to
long-term leases, 5% represents mortgage loans and direct financing
receivables primarily on commercial real estate buildings (located on
land the Company owns and leases to its customers) and a nominal amount
represents other loans receivable secured by the tenants’ other assets.
As of March 31, 2016, the portfolio’s annualized base rent and interest
(based on rates in effect on March 31, 2016 for all lease and loan
contracts) totaled $356.3 million. The weighted average non-cancelable
remaining term of the leases at March 31, 2016 was approximately
14 years.
The Company's customers operate their businesses across more than
340 brand names, or concepts, and the largest single concept represented
approximately 3.1% of the Company's annualized base rent and interest as
of March 31, 2016.
|
|
|
| |
| Portfolio At A Glance-- As of March 31, 2016 |
|
|
|
|
|
Investment property locations
| | | |
1,397
|
|
Customers
| | | |
321
|
|
Industries in which customers operate
| | | |
90
|
|
States
| | | |
47
|
|
Proportion of portfolio from direct origination
| | | |
~75%
|
|
% of investment portfolio subject to STORE preferred contracts* | | | |
89%
|
|
Weighted average annual lease escalation(1) | | | |
1.7%
|
|
Weighted average remaining lease contract term
| | | |
~14 years
|
|
Occupancy(2) | | | |
99.9%
|
|
# of properties not currently operating but subject to a lease(3) | | | |
6
|
|
# of investment locations subject to a ground lease
| | | |
14
|
|
% of investment portfolio subject to NNN leases* | | | |
97%
|
|
% of investment portfolio subject to master leases*(4) | | | |
80%
|
|
Average investment amount/replacement cost (new)(5) | | | |
82%
|
|
% of investment locations providing unit-level financial reporting
| | | |
97%
|
|
Median unit fixed charge coverage ratio (FCCR)/4-Wall coverage ratio(6) | | | |
2.12x/2.64x
|
|
Proportion of investment contracts rated investment grade(7) |
|
|
|
~75%
|
* Based on annualized base rent and interest.
|
(1) |
| Represents the weighted average annual escalation rate of the
entire portfolio as if all escalations occurred annually. For
escalations based on a formula including CPI, assumes the stated
fixed percentage in the contract or assumes 1.5% if no fixed
percentage is in the contract. For contracts with no escalations
remaining in the current lease term, assumes the escalation in the
extension term. Calculation excludes contracts representing less
than 0.3% of annualized base rent and interest where there are no
further escalations remaining in the current lease term and there
are no extension options. |
(2) | | The Company defines occupancy as a property being subject to a
lease or loan contract. As of March 31, 2016, two of the Company’s
properties were vacant and not subject to a contract. |
(3) | | Represents the number of the Company’s investment locations
that have been closed by the tenant but remain subject to a lease. |
(4) | | Percentage of investment portfolio in multiple properties with
a single customer subject to master leases. Based on annualized
base rent and interest, 81% of the investment portfolio involves
multiple properties with a single customer, whether or not subject
to a master lease. |
(5) | | Represents the ratio of purchase price to replacement cost
(new) at acquisition. |
(6) | | STORE Capital calculates a unit’s FCCR generally as the ratio
of (i) the unit’s EBITDAR, less a standardized corporate overhead
expense based on estimated industry standards, to (ii) the unit’s
total fixed charges, which are its lease expense, interest expense
and scheduled principal payments on indebtedness. The 4-Wall
coverage ratio refers to a unit’s FCCR before taking into account
standardized corporate overhead expense. |
(7) | | Represents the percentage of the Company’s contracts that have
a STORE Score that is investment grade. The Company measures the
credit quality of its portfolio on a contract-by-contract basis
using the STORE Score, which is a risk measure reflective of both
the credit risk of its tenants and the profitability of the
operations at the properties. As of March 31, 2016, STORE
Capital’s tenants had a median tenant credit profile of
approximately ‘Ba1’ as measured by Moody's Analytics RiskCalc
rating scale. Considering the profitability of the operations at
each of its properties and STORE’s assessment of the likelihood
that each of the tenants will choose to continue to operate at the
properties in the event of their insolvency, the credit quality of
its contracts, or STORE Score, is enhanced to a median of ‘Baa1.’ |
| |
|
Capital Transactions and Subsequent Events
Between February 1, 2016 and April 1, 2016, STORE Holding Company, LLC
(“STORE Holding”), the Company’s founding stockholder which is directly
and indirectly owned by certain investment funds managed by Oaktree
Capital Management, L.P., completed three public offerings of the
Company’s common stock. With the completion of the last offering on
April 1, 2016, STORE Holding no longer holds any shares of STORE
Capital’s common stock. The Company did not receive any proceeds from
these sales of shares of common stock sold by STORE Holding. Pursuant to
a registration rights agreement, the Company incurred approximately $0.8
million of expenses, primarily registration fees, legal and accounting
costs, during the first quarter of 2016 on behalf of STORE Holding, the
selling stockholder, related to its sale of all its holdings of STORE
Capital common stock.
Subsequent to March 31, 2016, the Company incurred an aggregate of
$300 million of additional indebtedness having a weighted average term
of eight years at a blended interest rate at closing of 4.1% as follows:
on April 28, 2016, the Company executed a private placement for
$200 million of unsecured, investment-grade rated 4.73% Senior Notes,
Series C due April 2026 and, on April 26, 2016, entered into a
$100 million floating-rate, unsecured five-year term loan with the same
group of lenders participating in its unsecured revolving credit
facility. Concurrent with the closing of the floating-rate loan, the
Company entered into interest rate swaps that effectively convert the
floating rate to a fixed rate, which was approximately 2.7% at closing,
for the term of the loan.
In April, the Company also increased the total commitment under its
unsecured credit facility to $500 million by accessing $100 million of
availability under the accordion feature of that facility.
2016 AFFO Guidance
The Company is increasing its expected 2016 annual real estate
acquisition volume, net of projected property sales, to approximately
$900 million and expects that 2016 AFFO per share will be in the range
of $1.60 to $1.63. AFFO per share guidance equates to anticipated net
income of $0.73 to $0.74 per share, plus $0.77 to $0.79 per share of
expected real estate depreciation and amortization, plus approximately
$0.10 per share related to noncash items and real estate transaction
costs. AFFO per share is sensitive to the timing and amount of real
estate acquisitions and capital markets activities during the year, as
well as to the spread achieved between the lease rates on new
acquisitions and the interest rates on borrowings used to finance those
acquisitions.
Conference Call and Webcast
A conference call and audio webcast with analysts and investors will be
held later today at 12:00 p.m. Eastern Time / 9:00 a.m.Scottsdale,
Arizona Time, to discuss first quarter ended March 31, 2016 operating
results and answer questions.
-
Live conference call: 855-656-0920 (domestic) or 412-542-4168
(international)
-
Conference call replay available through May 19, 2016: 877-344-7529
(domestic) or 412-317-0088 (international)
-
Replay access code: 10083302
-
Live and archived webcast: http://ir.storecapital.com/webcasts
About STORE Capital
STORE Capital Corporation 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,
which is its target market and the inspiration for its name. STORE
Capital is one of the largest and fastest growing net-lease REITs and
owns a large, well-diversified portfolio that consists of investments in
1,397 property locations, substantially all of which are profit centers,
in 47 states. Additional information about STORE Capital can be found on
its website at www.storecapital.com.
Forward-Looking Statements
Certain statements contained in this press release that are not
historical facts contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, that are subject to the “safe harbor” created by those
sections. 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. For
more information on risk factors for STORE Capital’s business, please
refer to the periodic reports the Company files with the Securities and
Exchange Commission from time to time. These forward-looking statements
herein speak only as of the date of this press release and should not be
relied upon as predictions of future events. STORE Capital expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein, to reflect any change in
STORE 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.
Non-GAAP Financial Measures
FFO and AFFO
STORE Capital’s reported results are presented in accordance with U.S.
generally accepted accounting principles, or GAAP. The Company also
discloses Funds from Operations, or FFO, and Adjusted Funds from
Operations, or AFFO, both of which are non-GAAP measures. Management
believes these two non-GAAP financial measures are useful to investors
because they are widely accepted industry measures used by analysts and
investors to compare the operating performance of REITs. FFO and AFFO do
not represent cash generated from operating activities and are not
necessarily indicative of cash available to fund cash requirements;
accordingly, they should not be considered alternatives to net income as
a performance measure or to cash flows from operations as reported on a
statement of cash flows as a liquidity measure and should be considered
in addition to, and not in lieu of, GAAP financial measures.
The Company computes FFO in accordance with the definition adopted by
the Board of Governors of the National Association of Real Estate
Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income,
excluding gains (or losses) from extraordinary items and sales of
depreciable property, real estate impairment losses, and depreciation
and amortization expense from real estate assets, including the pro rata
share of such adjustments of unconsolidated subsidiaries.
To derive AFFO, the Company modifies the NAREIT computation of FFO to
include other adjustments to GAAP net income related to non-cash
revenues and expenses such as straight-line rents, amortization of
deferred financing costs and stock-based compensation. In addition, in
deriving AFFO, the Company excludes transaction costs associated with
acquiring real estate subject to existing leases and certain other
expenses not related to its ongoing operations.
FFO is used by management, investors and analysts to facilitate
meaningful comparisons of operating performance between periods and
among the Company’s peers primarily because it excludes the effect of
real estate depreciation and amortization and net gains on sales, which
are based on historical costs and implicitly assume that the value of
real estate diminishes predictably over time, rather than fluctuating
based on existing market conditions. Management believes that AFFO
provides more useful information to investors and analysts because it
modifies FFO to exclude additional non-cash revenues and expenses such
as straight-line rents, amortization of deferred financing costs and
stock-based compensation as such items may cause short-term fluctuations
in net income but have no impact on operating cash flows or long-term
operating performance. Additionally, in deriving AFFO, the Company
excludes transaction costs associated with acquiring real estate subject
to existing leases. The Company views transaction costs to be a part of
the investment in the real estate it acquires, similar to the treatment
of acquisition and closing costs on sale-leaseback transactions, which
are capitalized as a part of the investment in the asset. The Company
believes that transaction costs are not an ongoing cost of the portfolio
in place at the end of each reporting period and, for these reasons, the
portion expensed is added back when computing AFFO. Similarly, in 2016
the Company excluded the offering expenses incurred on behalf of its
selling stockholder, STORE Holding, when it exited all of its holdings
in STORE Capital common stock, as those costs are not related to the
Company’s ongoing operations. As a result, the Company believes AFFO to
be a more meaningful measurement of ongoing performance that allows for
greater performance comparability. Therefore, the Company discloses both
FFO and AFFO and reconciles them to the most appropriate GAAP
performance metric, which is net income. STORE Capital’s FFO and AFFO
may not be comparable to similarly titled measures employed by other
companies.
|
|
| STORE Capital Corporation |
| Condensed Consolidated Statements of Income |
| (In thousands, except share and per share data) |
|
|
|
|
|
| Three months ended |
| | | | March 31, |
| | | | 2016 |
|
|
| 2015 |
| | | |
(unaudited)
|
|
Revenues:
| | | | | | | | |
|
Rental revenues
| | | |
$
|
80,767
| | | |
$
|
58,838
|
|
Interest income on loans and direct financing receivables
| | | | |
4,415
| | | | |
2,598
|
|
Other income
| | | |
|
52
| | | |
|
23
|
|
Total revenues
| | | |
|
85,234
| | | |
|
61,459
|
| | | | | | | |
|
|
Expenses:
| | | | | | | | |
|
Interest
| | | | |
23,435
| | | | |
17,229
|
|
Transaction costs
| | | | |
234
| | | | |
259
|
|
Property costs
| | | | |
486
| | | | |
295
|
|
General and administrative
| | | | |
8,591
| | | | |
6,635
|
|
Selling stockholder costs
| | | | |
800
| | | | |
–
|
|
Depreciation and amortization
| | | | |
26,479
| | | | |
18,892
|
|
Provision for impairment of real estate
| | | |
|
–
| | | |
|
1,000
|
|
Total expenses
| | | |
|
60,025
| | | |
|
44,310
|
| | | | | | | |
|
|
Income from operations before income taxes
| | | | |
25,209
| | | | |
17,149
|
|
Income tax expense
| | | |
|
69
| | | |
|
83
|
|
Income before loss on disposition of real estate
| | | | |
25,140
| | | | |
17,066
|
|
Loss on disposition of real estate
| | | |
|
347
| | | |
|
–
|
|
Net income
| | | |
$
|
24,793
| | | |
$
|
17,066
|
| | | | | | | |
|
|
Net income per share of common stock - basic and diluted
| | | |
$
|
0.18
| | | |
$
|
0.15
|
| | | | | | | |
|
| | | | | | | |
|
Weighted average common shares outstanding:
|
Basic
| | | |
|
140,354,143
| | | |
|
114,633,300
|
|
Diluted
| | | |
|
140,564,379
| | | |
|
114,633,300
|
| | | | | | | |
|
|
Dividends declared per common share
| | | |
$
|
0.27
| | | |
$
|
0.25
|
|
|
|
|
| STORE Capital Corporation |
| Condensed Consolidated Balance Sheets |
| (In thousands, except share and per share data) |
|
|
|
|
|
| March 31, |
|
|
| December 31, |
| | | | 2016 | | | | 2015 |
| | | |
(unaudited)
| | | |
(audited)
|
| Assets | | | | | | | | |
|
Investments:
| | | | | | | | |
|
Real estate investments:
| | | | | | | | |
|
Land and improvements
| | | |
$
|
1,276,762
| | | | |
$
|
1,187,482
| |
|
Buildings and improvements
| | | | |
2,666,134
| | | | | |
2,490,394
| |
|
Intangible lease assets
| | | |
|
92,063
|
| | | |
|
88,724
|
|
|
Total real estate investments
| | | | |
4,034,959
| | | | | |
3,766,600
| |
|
Less accumulated depreciation and amortization
| | | |
|
(210,626
|
)
| | | |
|
(184,182
|
)
|
| | | | |
3,824,333
| | | | | |
3,582,418
| |
|
Real estate investments held for sale, net
| | | | |
2,274
| | | | | |
–
| |
|
Loans and direct financing receivables
| | | |
|
225,710
|
| | | |
|
213,342
|
|
|
Net investments
| | | | |
4,052,317
| | | | | |
3,795,760
| |
|
Cash and cash equivalents
| | | | |
30,956
| | | | | |
67,115
| |
|
Other assets
| | | |
|
52,090
|
| | | |
|
48,513
|
|
|
Total assets
| | | |
$
|
4,135,363
|
| | | |
$
|
3,911,388
|
|
| | | | | | | |
|
| Liabilities and stockholders' equity | | | | | | | | |
|
Liabilities:
| | | | | | | | |
|
Credit facility
| | | |
$
|
242,000
| | | | |
$
|
–
| |
|
Unsecured term notes payable, net
| | | | |
172,527
| | | | | |
172,442
| |
|
Non-recourse debt obligations of consolidated special purpose
entities, net
| | | | |
1,593,612
| | | | | |
1,597,505
| |
|
Dividends payable
| | | | |
38,037
| | | | | |
38,032
| |
|
Accounts payable and accrued expenses
| | | | |
34,482
| | | | | |
36,196
| |
|
Other liabilities
| | | |
|
8,356
|
| | | |
|
7,420
|
|
|
Total liabilities
| | | |
|
2,089,014
|
| | | |
|
1,851,595
|
|
| | | | | | | |
|
|
Stockholders' equity:
| | | | | | | | |
Common stock, $0.01 par value per share, 375,000,000 shares
authorized, 140,879,389 and 140,858,765 shares issued and
outstanding, respectively
| | | | |
1,409
| | | | | |
1,409
| |
|
Capital in excess of par value
| | | | |
2,162,788
| | | | | |
2,162,130
| |
|
Distributions in excess of retained earnings
| | | | |
(117,366
|
)
| | | | |
(103,453
|
)
|
|
Accumulated other comprehensive loss
| | | |
|
(482
|
)
| | | |
|
(293
|
)
|
|
Total stockholders' equity
| | | |
|
2,046,349
|
| | | |
|
2,059,793
|
|
|
Total liabilities and stockholders' equity
| | | |
$
|
4,135,363
|
| | | |
$
|
3,911,388
|
|
|
|
|
|
STORE Capital Corporation |
|
Reconciliations of Non-GAAP Financial Measures
|
|
(In thousands, except per share data)
|
Funds from Operations and Adjusted Funds from Operations |
|
|
|
|
|
| Three months ended |
| | | | March 31, |
| | | | 2016 |
|
|
| 2015 |
| | | | | | | |
|
|
Net income
| | | |
$
|
24,793
| | | | |
$
|
17,066
| |
|
Depreciation and amortization of real estate assets
| | | | |
26,372
| | | | | |
18,810
| |
|
Provision for impairment of real estate
| | | | |
–
| | | | | |
1,000
| |
|
Loss on disposition of real estate
| | | |
|
347
|
| | | |
|
–
|
|
| Funds from Operations | | | |
|
51,512
|
| | | |
|
36,876
|
|
| | | | | | | |
|
|
Adjustments:
| | | | | | | | |
|
Straight-line rental revenue, net
| | | | |
(470
|
)
| | | | |
(108
|
)
|
|
Transaction costs
| | | | |
234
| | | | | |
259
| |
|
Non-cash equity-based compensation
| | | | |
1,661
| | | | | |
897
| |
|
Non-cash interest expense
| | | | |
1,696
| | | | | |
1,397
| |
|
Amortization of lease-related intangibles and costs
| | | | |
414
| | | | | |
220
| |
|
Selling stockholder costs
| | | |
|
800
|
| | | |
|
–
|
|
| Adjusted Funds from Operations | | | |
$
|
55,847
|
| | | |
$
|
39,541
|
|
| | | | | | | |
|
|
Dividends declared to common stockholders
| | | |
$
|
38,037
|
| | | |
$
|
28,822
|
|
| | | | | | | |
|
| Net income per share of common stock: | | | | | | | | |
|
Basic and Diluted (1)
| | | |
$
|
0.18
|
| | | |
$
|
0.15
|
|
| FFO per share of common stock: | | | | | | | | |
|
Basic and Diluted (1)
| | | |
$
|
0.37
|
| | | |
$
|
0.32
|
|
| AFFO per share of common stock: | | | | | | | | |
|
Basic and Diluted (1)
| | | |
$
|
0.40
|
| | | |
$
|
0.34
|
|
|
|
|
(1)
|
|
Under the two-class method, earnings attributable to unvested
restricted stock are deducted from earnings in the computation of
per share amounts where applicable.
|
| |
|
STORE Capital Corporation
Investment Portfolio
March 31, 2016
Real Estate Portfolio Information
As of March 31, 2016, STORE Capital’s total investment in real estate
and loans approximated $4.3 billion, representing investments in 1,397
property locations, substantially all of which are profit centers for
its customers. The Company’s real estate portfolio is highly
diversified. The following tables summarize the diversification of the
real estate portfolio based on the percentage of base rent and interest,
annualized based on rates in effect on March 31, 2016, for all leases,
loans and direct financing receivables in place as of that date.
Diversification by Customer
STORE Capital has a diverse customer base. At March 31, 2016, the
Company’s 1,397 property locations were operated by over 320 customers.
No single customer represented more than 2.6% of annualized base rent
and interest and the top ten customers totaled 15.7% of annualized base
rent and interest. The following table identifies STORE Capital’s ten
largest customers as of March 31, 2016:
|
|
|
|
|
| % of Annualized |
|
|
| |
| | | | Base Rent and | | | | Number of |
| Customer | | | | Interest | | | | Properties |
| Gander Mountain Company | | | |
2.6
|
%
| | | |
13
|
| American Multi-Cinema, Inc. (Starplex/Showplex/AMC)
| | | |
1.9
| | | | |
10
|
| RMH Franchise Holdings, Inc. (Applebee’s)
| | | |
1.9
| | | | |
33
|
|
O'Charley's LLC
| | | |
1.6
| | | | |
30
|
| At Home Stores LLC | | | |
1.4
| | | | |
5
|
| Mills Fleet Farm Group, LLC | | | |
1.3
| | | | |
3
|
| FreedomRoads, LLC (Camping World)
| | | |
1.3
| | | | |
8
|
| Sailormen, Inc. (Popeyes Louisiana Kitchen)
| | | |
1.3
| | | | |
41
|
| Rainbow Early Education Holding, LLC | | | |
1.2
| | | | |
36
|
| Bellisio Foods, Inc. | | | |
1.2
| | | | |
2
|
|
All other (311 customers)
| | | |
84.3
|
| | | |
1,216
|
|
Total
| | | |
100.0
|
%
| | | |
1,397
|
|
|
STORE Capital Corporation
Investment Portfolio
March 31, 2016
Diversification by Concept
STORE Capital’s customers operate their businesses under a wide range of
brand names or business concepts. Of the 343 concepts represented in the
Company’s investment portfolio as of March 31, 2016, the largest single
concept represented approximately 3.1% of annualized base rent and
interest and the top ten concepts totaled less than 19% of annualized
base rent and interest. The following table identifies the top ten
customer business concepts as of March 31, 2016:
|
|
|
|
|
| % of Annualized |
|
|
| |
| | | | Base Rent and | | | | Number of |
| Customer Business Concept | | | | Interest | | | | Properties |
|
Ashley Furniture HomeStore
| | | |
3.1
|
%
| | | |
20
|
|
Gander Mountain
| | | |
2.6
| | | | |
13
|
|
Applebee's
| | | |
2.3
| | | | |
42
|
|
Popeyes Louisiana Kitchen
| | | |
1.9
| | | | |
64
|
|
Starplex Cinemas
| | | |
1.7
| | | | |
8
|
|
O'Charley's
| | | |
1.6
| | | | |
30
|
|
At Home
| | | |
1.4
| | | | |
5
|
| Mills Fleet Farm | | | |
1.3
| | | | |
3
|
| FreedomRoads/Camping World | | | |
1.3
| | | | |
8
|
| Rainbow Child Care Center | | | |
1.2
| | | | |
36
|
|
All other (333 concepts)
| | | |
81.6
|
| | | |
1,168
|
| | | |
100.0
|
%
| | | |
1,397
|
|
|
STORE Capital Corporation
Investment Portfolio
March 31, 2016
Diversification by Industry
The business concepts of STORE Capital’s customers are diversified
across 90 industries within the service, retail and industrial sectors
of the U.S. economy. The following table summarizes those industries as
of March 31, 2016:
|
|
|
|
|
| % of |
|
|
| |
|
|
| Building |
| | | | Annualized | | | | | | | | Square |
| | | | Base Rent and | | | | Number of | | | | Footage |
| Customer Industry | | | | Interest | | | | Properties | | | | (in thousands) |
|
Service:
| | | | | | | | | | | | |
|
Restaurants – full service
| | | |
15.4
|
%
| | | |
314
| | | |
2,178
|
|
Restaurants – limited service
| | | |
8.7
| | | | |
338
| | | |
952
|
|
Movie theaters
| | | |
7.5
| | | | |
37
| | | |
1,467
|
|
Health clubs
| | | |
6.9
| | | | |
53
| | | |
1,693
|
|
Early childhood education centers
| | | |
6.4
| | | | |
137
| | | |
1,423
|
|
Colleges and professional schools
| | | |
2.2
| | | | |
6
| | | |
466
|
|
Automotive repair and maintenance facilities
| | | |
2.2
| | | | |
55
| | | |
217
|
|
All other service (39 industries)
| | | |
21.4
|
| | | |
224
| | | |
7,002
|
|
Total service
| | | |
70.7
|
| | | |
1,164
| | | |
15,398
|
|
Retail:
| | | | | | | | | | | | |
|
Furniture stores
| | | |
4.2
| | | | |
27
| | | |
1,637
|
|
Sporting goods and hobby stores
| | | |
3.0
| | | | |
16
| | | |
1,050
|
|
Lawn and garden equipment and supply stores
| | | |
2.7
| | | | |
18
| | | |
1,394
|
|
All other retail (11 industries)
| | | |
6.6
|
| | | |
69
| | | |
2,970
|
|
Total retail
| | | |
16.5
|
| | | |
130
| | | |
7,051
|
|
Industrial:
| | | | | | | | | | | | |
|
Total industrial (30 industries)
| | | |
12.8
|
| | | |
103
| | | |
10,821
|
|
Total
| | | |
100.0
|
%
| | | |
1,397
| | | |
33,270
|
|
|
STORE Capital Corporation
Investment Portfolio
March 31, 2016
Diversification by Geography
STORE Capital’s portfolio is also highly diversified by geography, as
the Company’s property locations can be found in 47 of the 50 states
(excluding Delaware, Hawaii and Rhode Island). The following table
details the top ten geographical locations of the properties as of March
31, 2016:
|
|
|
|
|
| % of |
|
|
| |
| | | | Annualized | | | | |
| | | | Base Rent and | | | | Number of |
| State | | | | Interest | | | | Properties |
| Texas | | | |
12.4
|
%
| | | |
115
|
| Illinois | | | |
8.4
| | | | |
108
|
| Georgia | | | |
6.3
| | | | |
99
|
| Tennessee | | | |
5.3
| | | | |
81
|
| Ohio | | | |
5.1
| | | | |
80
|
| Florida | | | |
4.5
| | | | |
70
|
| California | | | |
4.3
| | | | |
21
|
| Arizona | | | |
4.1
| | | | |
47
|
| Colorado | | | |
3.6
| | | | |
25
|
| North Carolina | | | |
3.5
| | | | |
85
|
|
All other (37 states) (1)
| | | |
42.5
|
| | | |
666
|
| | | |
100.0
|
%
| | | |
1,397
|
|
| | | | | | | | |
|
(1)
|
|
Includes one property in Ontario, Canada which represents 0.1% of
annualized base rent and interest.
|
| |
|
STORE Capital Corporation
Investment Portfolio
March 31, 2016
Contracts and Expirations
The Company focuses on long-term, triple-net leases with built-in lease
escalators and uses master leases, where appropriate. As of March 31,
2016, 97% of the Company’s investment portfolio was subject to a
triple-net lease. Where the Company owns multiple properties leased to a
single customer, 80% of this portion of the investment portfolio was
subject to a master lease. Leases and loans representing less than 11%
of the annualized base rent and interest will expire in the next ten
years (before 2026). The following table sets forth the schedule of
lease, loan and direct financing receivable expirations as of March 31,
2016:
|
|
|
|
|
| % of |
|
|
| |
| | | | Annualized | | | | |
| | | | Base Rent and | | | | Number of |
| Year of Lease Expiration or Loan Maturity (1) | | | | Interest | | | | Properties (2) |
|
|
Remainder of 2016
| | | |
-
|
%
| | | |
-
|
|
2017
| | | |
0.4
| | | | |
10
|
|
2018
| | | |
0.3
| | | | |
3
|
|
2019
| | | |
0.8
| | | | |
8
|
|
2020
| | | |
0.7
| | | | |
5
|
|
2021
| | | |
1.1
| | | | |
8
|
|
2022
| | | |
0.4
| | | | |
5
|
|
2023
| | | |
2.4
| | | | |
36
|
|
2024
| | | |
2.2
| | | | |
23
|
|
2025
| | | |
2.6
| | | | |
22
|
|
Thereafter
| | | |
89.1
|
| | | |
1,275
|
|
Total
| | | |
100.0
|
%
| | | |
1,395
|
|
| | | | | | | | | |
|
(1)
|
|
Expiration year of contracts in place as of March 31, 2016 and
excludes any tenant renewal option periods.
|
|
(2)
| |
Excludes two properties which were vacant and not subject to a lease
as of March 31, 2016.
|
| |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160505005543/en/
Media and Investors:
Financial Profiles, Inc.
Moira
Conlon, 310-622-8220
Paige Hart, 310-622-8244
STORECapital@finprofiles.com
Source: STORE Capital Corporation