STORE Capital (STOR) Q3 2024 earnings summary

Executive summary

• STORE Capital LLC reported net income of $32.3 million for Q3 2024, a turnaround from a net loss of $13.4 million in Q3 2023, driven by portfolio growth and higher rental and interest income.

• The real estate investment portfolio expanded to $15.3 billion across 3,245 property locations, with a weighted average lease term of 14 years and 99% of leases being triple-net.

• The company completed a $450 million issuance of STORE Master Funding Series 2024-1 notes and prepaid $186.5 million of prior notes, optimizing its debt structure.

• As of September 30, 2024, liquidity stood at $327.1 million, with $378.9 million of immediate borrowing capacity available.

Financial highlights

• Q3 2024 total revenues were $287.4 million, up $25.2 million year-over-year; nine-month revenues reached $842.1 million, up $157.5 million.

• Net income for the nine months ended September 30, 2024 was $84.4 million, compared to a net loss of $88.7 million in the prior-year period.

• Interest expense decreased to $91.7 million in Q3 2024 from $98.9 million in Q3 2023, reflecting lower average interest rates.

• Provisions for impairment and credit losses totaled $11.4 million in Q3 2024, up from $6.6 million in Q3 2023.

• Net cash provided by operating activities for the nine months ended September 30, 2024 was $541.6 million, up $127.6 million from the prior-year period.

Outlook and guidance

• Management expects continued portfolio growth through additional real estate investments, funded by a mix of debt, equity, and cash from operations.

• Liquidity and available credit are considered sufficient to fund operations and committed acquisitions for the next twelve months and beyond.