STORE Capital (STOR) Misses Q1 EPS by 1c, Revenues Beat; Offers FY21 Revenues Guidance Above Consensus

STORE Capital (NYSE: STOR) reported Q1 EPS of $0.21, $0.01 worse than the analyst estimate of $0.22. Revenue for the quarter came in at $182.3 million versus the consensus estimate of $171.34 million.

For the quarter ended March 31, 2021:

• Total revenues of $182.3 million
• Net income of $55.0 million, or $0.21 per basic and diluted share, including an aggregate net gain of $15.7 million on dispositions of real estate
• AFFO of $125.2 million, or $0.47 per basic and diluted share
• Declared a regular quarterly cash dividend per common share of $0.36
• Invested $270.8 million in 66 properties at a weighted average initial cap rate of 7.8%
• Raised $114.1 million in net proceeds from the sale of approximately 3.5 million common shares under the Company’s at-the-market equity program

Management Commentary

“2021 is off to a very good start. Our solid first quarter results were driven by our robust pipeline of attractive investment opportunities, our diverse and granular portfolio and improving business conditions,” said Mary Fedewa, STORE Capital’s President and Chief Executive Officer. “We are seeing an accelerated pace of activity and confidence among our customers and prospects. Our portfolio remains strong with portfolio occupancy of 99.6% and coverage ratios at pre-pandemic levels. We are well positioned to fund our strong pipeline of acquisitions with historically low leverage, ample liquidity and access to a variety of attractive debt and equity financing options. All of this positions us well for continued growth for the balance of 2021 and, as a result, we are reaffirming our full year 2021 guidance.”

GUIDANCE:

STORE Capital sees FY2021 revenue of $1000-1200 million, versus the consensus of $720.72 million.

Affirming its 2021 guidance issued in February 2021, the Company currently expects 2021 AFFO per share to be within a range of $1.90 to $1.96, based on 2021 projected real estate acquisition volume, net of projected property sales, of $1.0 billion to $1.2 billion. This AFFO per share guidance equates to anticipated net income, excluding gains or losses on sales of property, of $0.80 to $0.85 per share, plus $0.97 to $0.98 per share of expected real estate depreciation and amortization, plus approximately $0.13 per share related to noncash items. The AFFO per share guidance is based on a weighted average initial cap rate on new acquisitions of 7.7% and target leverage in the range of 5½ to 6 times run-rate net debt to EBITDA. AFFO per share is sensitive to the timing and amount of real estate acquisitions, property dispositions and capital markets activities during the year, as well as to the spread achieved between the lease rates on new acquisitions and the interest rates on borrowings used to finance those acquisitions.

For earnings history and earnings-related data on STORE Capital (STOR) click here.

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