STORE Capital Announces Third Quarter 2016 Operating Results

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 third quarter and nine months ended September 30, 2016.

Highlights

For the quarter ended September 30, 2016:
  • Total revenues of $97.0 million
  • Net income per share of $0.24 (basic and diluted)
  • AFFO of $63.8 million
  • AFFO of $0.42 per basic share and $0.41 per diluted share
  • Declared a regular quarterly cash dividend per common share of $0.29, representing a 7.4% increase over the second quarter
  • Invested $257.3 million in 85 properties at an initial weighted average cap rate of 8.2%
  • Raised aggregate net equity proceeds of $71.6 million from the sale of approximately 2.5 million common shares under the at-the-market equity program commenced in early September

For the nine months ended September 30, 2016:
  • Total revenues of $274.2 million
  • Net income per share of $0.62 (basic and diluted)
  • AFFO of $178.7 million
  • AFFO of $1.22 per basic share and $1.21 per diluted share
  • Declared regular cash dividends per common share aggregating $0.83
  • Invested $898.0 million in 273 properties at an initial weighted average cap rate of 8.0%
  • In April 2016, closed second offering of investment-grade unsecured ten-year term notes in an aggregate principal amount of $200 million, closed a $100 million five-year unsecured bank term loan and expanded unsecured credit facility to $500 million
  • In addition to the net proceeds raised from the at-the-market equity program in September, raised net equity proceeds of $304.6 million in a follow-on offering of 12.4 million common shares in May 2016

Management Commentary

"STORE delivered another quarter of strong portfolio performance, origination activity and financial results, which has enabled us over this year to narrow our 2016 performance guidance to the top end of the range we set for ourselves," said Christopher H. Volk, President and Chief Executive Officer of STORE Capital. "Our investment activity remains robust as a result of our dedication to deal flow ownership. At the same time, with our recently implemented ATM program, the BBB- corporate unsecured credit rating we received during the quarter from Standard and Poor's and the innovative use of our A+ rated Master Funding conduit in October, our capital flexibility has never been better. Add this to a sector leading 7.4% dividend increase, with an increasingly well-protected dividend and we are well on our way to accomplishing the goals we set at the beginning of this year. Now, as we close out a productive and prosperous 2016, we are excited to introduce outlook for continued strong growth in 2017, with an initial AFFO per share guidance range of $1.74 to $1.76."

If you liked this article you might like

10 High-Yielding Stocks to Own Ahead of a Surprising Late Summer Market Swoon

4 Stocks Warren Buffett Would Love

Store Capital Stock Tumbles on Mizuho Downgrade, Buffett Investment

Warren Buffett Is on the Prowl Again -- Here's What He Is Buying

Store Capital Stock Is Up, so Is Its Dividend