STORE Capital (STOR) Reports In-Line Q4 EPS, Revenues Beat

February 25, 2021 4:44 PM EST

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STORE Capital (NYSE: STOR) reported Q4 EPS of $0.21, in-line with the analyst estimate of $0.21. Revenue for the quarter came in at $172.9 million versus the consensus estimate of $166.51 million.

For the quarter ended December 31, 2020:

  • Total revenues of $172.9 million
  • Net income of $54.7 million, or $0.21 per basic and diluted share, including an aggregate net gain of $16.0 million on dispositions of real estate
  • AFFO of $115.1 million, or $0.44 per basic and diluted share
  • Declared a regular quarterly cash dividend per common share of $0.36
  • Invested $435.6 million in 84 properties at a weighted average initial cap rate of 8.1%
  • Raised $145.9 million in net proceeds from the sale of an aggregate of approximately 4.8 million common shares under the Company’s at-the-market equity program
  • Closed third public debt offering, issuing $350.0 million in aggregate principal amount of investment-grade senior unsecured notes in November 2020

“2020 presented one of the most significant economic challenges in history and STORE delivered,” said Christopher Volk, Chief Executive Officer of STORE Capital. “Our many margins of safety, including attractive contractual lease yields, exceptional portfolio diversity, strong lease escalators, lease contract seniority and a well-protected dividend made all the difference. We concluded the year with liquidity and balance sheet metrics much as they were prior to the pandemic. This strength enabled us to close the year on a high note, with strong fourth quarter investment activity of $435.6 million, raising our full year real estate acquisitions to nearly $1.1 billion. Importantly, this strength also enabled us to enter 2021 well positioned for continued growth. The trends we see are encouraging and all of us are optimistic about the opportunity to create continued value in the coming year for our many stakeholders.”

2021 Guidance

The Company is affirming its guidance, first issued in November 2020, for 2021 real estate acquisition volume, net of projected property sales, of $1.0 billion to $1.2 billion. The Company currently expects 2021 AFFO per share to be within a range of $1.90 to $1.96, based on this projected net acquisition volume. 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. This AFFO per share guidance equates to anticipated net income, excluding gains or losses on sales of property, of $0.83 to $0.88 per share, plus $0.97 to $0.98 per share of expected real estate depreciation and amortization, plus approximately $0.10 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.

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

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