STORE Capital’s Close Relationship with Tenants Provides Insight into Impact of COVID-19

Chris Volk, president and CEO of STORE Capital Corp. (NYSE: STOR), participated in a video interview in conjunction with Nareit’s REITweek: Virtual Investor Conference (held June 2-4).

STORE has about 500 tenants across 49 states. Volk explained that STORE is more than just a landlord to its tenants, it also acts as a financial partner. Working so closely with its tenants has enabled STORE to better understand the likely outcome for the REIT with regard to the coronavirus crisis, Volk explained.

Volk also noted that STORE started the year with an acquisition guidance target of $1.2 billion, with about $265 million of acquisitions booked in the first quarter. Full year acquisitions will be “meaningfully less” than originally anticipated, he said.

Volk added that STORE recently raised about $150 million in equity which can be used to invest in new assets on a selected basis. He observed that ”really interesting opportunities” can come out of periods of economic disruption.

Looking ahead, Volk said he expects interest rates to be low for some time. “I think real estate values will hold up well in that kind of an environment.” Companies that can deliver predictable and sustainable cash flows will see increased valuations, “so we look forward to that,” he noted.