Is STORE Capital a Buy?
STORE Capital (NYSE: STOR) is a net-lease real estate investment trust (REIT) with a roughly 7.2% yield. That's far more than the yield of industry bellwether Realty Income (NYSE: O), which offers just 5%. Is this an opportunity to pick up an unloved stock on sale, or is there a good reason for the discrepancy? Here's a quick look at what's going on, and how you should be thinking about the stock today.
Real estate investment trust STORE owns properties that it rents out under long-term leases. At the end of the first quarter the company's average lease length was an impressive 14 years or so. That makes it easier for STORE to get through economic contractions, since its tenants are under contract to stick around for what will most likely be longer than the downturn. The company originated over 80% of its own leases, too, which means it was able to set the terms of these agreements.
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Source Fool.com
