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STOR - Store Capital Corp


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I haven't historically invested in REIT's. Found a reference to STOR in another thread but not its own. Anyone follow and have a view? Below was posted on another thread.

 

On 3/11/2021 at 8:31 PM, hasilp89 said:

Ourkid8 - not sure if this a nnn lease reit but if you are interested in learning more about the economics and valuation of those business I’d highly recommend reading the shareholder letters of Store capital (STOR). Ceo is a legend, brk owns 10%, he explains the valuation in a manner that morons like me can understand. What’s your cap rate. What’s your cost of capital. Credit profile and economics of tenants. How can you grow number of leases. How are rents growing.

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Posted (edited)

I follow it loosely.  Would like to get some at a (cheap) price (80% of rent roll is retail (20%) and "services" (60%)).  I like the C. Volk talks and stuff I've read was initially put off by the Berk pumping but I guess that's fair game. 

Edited by CorpRaider
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Posted (edited)

I bought during pandemic - its pretty much laid out in his letters but ultimately their play is using investment grade cost of capital to invest in what would be deemed non investment grade leases at higher cap rates. the idea is that those leases are not actually less creditworthy when you dig in and understand the P&L of the business. For the most part i think that was demonstrated through the pandemic. hugely fragmented market so long runway for them to grow. volks retirement was sudden - not sure the backstory there.

Edited by hasilp89
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Thanks for starting this - I've been reading the letters.  Would be good to know more about Volk stepping back, but I am partially reassured that the core team have been together for so long and his replacement is one of the co-founders.

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