At one point STORE Capital was a favorite stock of Warren Buffett’s Berkshire Hathaway, so what happened to the company and is STORE Capital stock publicly traded?
Why Did Buffett Buy STORE Capital?
Store Capital specializes in single-tenant operational real estate, often working with businesses to provide financing for their real estate needs.
It frequently enters into long-term lease agreements with businesses, including retail, service, and manufacturing companies, which in turn provides stable and predictable income streams for the REIT.
Historically, Warren Buffett has favored companies with predictable cash flows, and trustworthy management teams so the stability of the revenues and cash flows was likely highly appealing to him and his Berkshire Hathaway investment team.
Buffett also has a proclivity for stocks that pay dividends, and Store Capital, as a REIT, was obligated to make distributions regularly so it fit well with his investment criteria.
Is STORE Capital Publicly Traded?
Store Capital held its initial public offering (IPO) on November 18, 2014 by listing its shares on the New York Stock Exchange under the ticker symbol “STOR.”
Following its IPO, Store Capital grew to become a significant player in the commercial real estate industry. So much so in fact that it attracted the attention of Oak Street, a division of Blue Owl, which acquired the firm alongside other real estate investors in 2022 for $32.25 per share in a 100% cash deal for approximately $15 billion.
So to the question is STORE Capital publicly traded? No, it is no longer publicly traded because it is privately held subsequent to its purchase by Oak Street.
Who Bought STORE Capital?
STORE Capital was acquired by global institutional investor GIC, in partnership with Oak Street, a division of Blue Owl.
The transaction enabled STORE Capital to more efficiently tap into long-term capital while the acquirers saw the potential to capture strong, long-term returns thanks to the Single Tenant Operational Real Estate nature of the business.
The deal was struck at $32.25 per share, resulting in a $15 billion windfall for STOR shareholders, including Warren Buffett’s firm, Berkshire Hathaway.
What Happened To STORE Capital Stock?
In the year prior to its acquisition, STORE Capital posted net income of $268.4 million on revenue of $783.8 million. It had $9.7 billion of total assets and 117 employees at the time.
Subsequent to the acquisition by a consortium of real estate investors, the financial details of the firm have not been released.
So, what happened to STORE Capital stock? Following its acquisition, it got swallowed up under the broader umbrella of GIC and Oak Street, its purchasers. It’s unknown also whether the company will be spun out and go public again at some point in the future, meaning retail investors cannot buy shares of STOR on the public markets today.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.