Net Lease REIT STORE Capital Strives for Tenant Diversity

Chris Volk, president and CEO of STORE Capital Corp. (NYSE: STOR), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference.

Volk noted that the REIT continues to be active on the transaction front, having invested about $100 million or more per month for the last four years. He stressed that tenant diversity is critical in the net lease sector.

“If you have a huge pool of diverse, non-correlated tenants, then the performance of that stream of rents needs to behave very much like an investment grade stream of income—and in fact it does,” Volk said. He pointed out that STORE’s largest tenant accounts for no more than 3 percent of total revenues.

Meanwhile, Volk discussed the STORE Score methodology and how it factors into the company’s operations. He noted that the STORE Score is “designed to show you the degree to which our contract is superior to the credit of the tenant itself.”