Here's Why the Best Is Yet to Come for STORE Capital
STORE Capital (NYSE: STOR) faced its first big challenge in 2020, and it survived. In fact, it did better than that: It put shareholders first and raised its dividend. The boost may have been a token amount, but that STORE was able to do that in a pandemic-challenged year speaks to the strength of the real estate investment trust's (REIT's) business model, and helps explain why its future is bright.
As a net lease real estate investment trust, STORE Capital owns single-tenant properties for which the tenants are responsible for most of the operating costs. With a portfolio of nearly 2,800 properties, no single building has a material impact on its top or bottom lines. This combination of features, where a large portfolio can offset any single vacancy risk, results in a fairly low-risk business model for the real estate sector.
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Source Fool.com
