STORE Capital (STOR) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $52.7 million, up from $20.8 million in Q1 2024, driven by portfolio growth, increased rental and interest income, and a net tax benefit from changes in REIT status.

• Real estate investment portfolio reached $15.9 billion across 3,366 properties in 49 states, leased to 654 customers in diverse industries.

• Approximately 99% of leases are triple-net, minimizing property-level costs and capital expenditures.

Financial highlights

• Total revenues for Q1 2025 were $303.9 million, up $28.6 million year-over-year, mainly from portfolio expansion and rent escalations.

• Interest expense increased to $90.7 million from $87.1 million, reflecting higher average debt and rates.

• Depreciation and amortization rose to $148.1 million, in line with portfolio growth.

• Provisions for impairment and credit losses totaled $7.4 million, slightly down from $7.8 million in Q1 2024.

• Net gain on real estate dispositions was $4.3 million, down from $10.0 million in the prior year.

• Net cash provided by operating activities was $172.2 million; net cash used in investing was $145.5 million; net cash from financing was $148.4 million.

Outlook and guidance

• Management expects continued portfolio growth through new real estate investments, funded by a mix of debt, equity, and operational cash flow.

• Liquidity of $327.3 million and $378.9 million in immediate borrowing capacity as of March 31, 2025, is considered sufficient for near-term commitments.

• No material changes to risk factors or critical accounting policies since the last annual report.