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Section 1: 8-K (8-K)

stor_Current Folio_ER_8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 8‑K


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 1, 2019


STORE Capital Corporation

(Exact name of registrant as specified in its charter)


 

Maryland

    

001‑36739

    

45‑2280254

(State or Other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(I.R.S. Employer
Identification No.)

 

8377 East Hartford Drive, Suite 100

Scottsdale, AZ 85255

(Address of Principal Executive Offices, Including Zip Code)

(480) 256‑1100

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

 

Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12)

 

 

 

 

Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b))

 

 

 

 

Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

STOR

New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b‑2 of the Securities Exchange Act of 1934 (§240.12b‑2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

Item 2.02        Results of Operations and Financial Condition.

On August 1, 2019, STORE Capital Corporation (the “Company”) issued a press release announcing its financial results for the second fiscal quarter ended June 30, 2019. The press release is furnished hereto as Exhibit 99.1 and incorporated herein by reference. Additionally, on August 1, 2019, the Company issued its 2019 second quarter investor presentation containing operating and financial data of the Company. The investor presentation is furnished hereto as Exhibit 99.2 and incorporated herein by reference. The press release and the investor presentation are also available on the Company’s website.

The information set forth in this Item 2.02 and in the attached Exhibit 99.1 and Exhibit 99.2 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 7.01        Regulation FD Disclosure.

On August 1, 2019, the Company issued its 2019 second quarter investor presentation containing operating and financial data of the Company. The investor presentation is furnished hereto as Exhibit 99.2 and incorporated herein by reference.

The information set forth in this Item 7.01 and in the attached Exhibit 99.2 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01        Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

    

Description

99.1

 

Earnings Press Release dated August 1, 2019.

99.2

 

2019 Second Quarter Investor Presentation.

 

The press release and investor presentation furnished as Exhibits 99.1 and 99.2 hereto include non-GAAP financial measures as defined in Regulation G, along with the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), information reconciling the non-GAAP financial measures to the GAAP financial measures, and a discussion of the reasons why the Company believes that presentation of the non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations. The non-GAAP financial measures presented therein should be considered in addition to, and not in lieu of or alternatives to, GAAP financial measures.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

STORE Capital Corporation

 

 

Dated: August 1, 2019

 

 

By:

/s/ Catherine Long

 

 

Catherine Long

 

 

Executive Vice President, Chief Financial Officer and Treasurer

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

stor_Ex99_1

Exhibit 99.1

 

Picture 1

 

STORE Capital Announces Second Quarter 2019 Operating Results

Updates 2019 Guidance

SCOTTSDALE, Ariz., August 1, 2019 – STORE Capital Corporation (NYSE: STOR, “STORE Capital” or the “Company”), an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, today announced operating results for the second quarter and six months ended June 30, 2019.

Highlights

For the quarter ended June 30, 2019:

§

Total revenues of $163.8 million

§

Net income of $68.0 million, or $0.30 per basic and diluted share, including an aggregate net gain of $15.0 million on dispositions of real estate

§

AFFO of $114.2 million, or $0.50 per basic and diluted share

§

Declared a regular quarterly cash dividend per common share of $0.33

§

Invested $364.1 million in 79 properties at a weighted average initial cap rate of 7.9%

§

Raised net proceeds of $135.7 million from the sale of an aggregate of approximately 4.0 million common shares under the Company’s at-the-market equity program

For the six months ended June 30, 2019:

§

Total revenues of $320.4 million

§

Net income of $113.5 million, or $0.50 per basic and diluted share, including an aggregate net gain of $13.1 million on dispositions of real estate

§

AFFO of $222.0 million, or $0.99 per basic share and $0.98 per diluted share

§

Declared regular cash dividends per common share aggregating $0.66

§

Invested $757.3 million in 162 properties at a weighted average initial cap rate of 7.9%

§

Raised net proceeds of $294.0 million from the sale of an aggregate of approximately 9.0 million common shares under the Company’s at-the-market equity program

§

Closed second public debt offering, issuing $350.0 million in aggregate principal amount of investment-grade senior unsecured notes in February 2019

Management Commentary

“STORE achieved strong momentum in the first half of 2019, posting AFFO growth of over 25% and diluted AFFO per share growth of about 10% compared to the first half of 2018,” said Chris Volk, President and Chief Executive Officer of STORE Capital. “We continued our robust pace of acquisitions in the second quarter, averaging more than $100 million in new assets each month and originating gross investments of $364 million at an average cap rate of 7.9%. Our granular growth combined with our 456 tenants further enhanced our portfolio diversity. Our top ten tenant exposure decreased to below 18% of revenues while we maintained our high level of contract quality and portfolio occupancy of 99.7%. Our leverage remains at the

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low end of our target levels and we have ample financing flexibility to fund our large pipeline of investment opportunities. At the same time, we increased our dividend protection – our dividend payout ratio for the second quarter decreased to 66.0% of AFFO per share from 68.9% in the year-ago quarter.  Based on our performance in the first half of 2019, we are raising the low end of our 2019 AFFO per share guidance, resulting in a new range of $1.92 to $1.96 per share.”

 Financial Results

Total Revenues

Total revenues were $163.8 million for the second quarter of 2019, an increase of 24.8% from $131.2 million for the second quarter of 2018.

Total revenues for the first half of 2019 were $320.4 million, an increase of 24.7% from $257.0 million for the first half of 2018. The increase was driven primarily by the growth in the size of STORE Capital’s real estate investment portfolio, which grew from $6.7 billion in gross investment amount representing 2,084 property locations and 412 customers at June 30, 2018 to $8.3 billion in gross investment amount representing 2,389 property locations and 456 customers at June 30, 2019.

Net Income

Net income was $68.0 million, or $0.30 per basic and diluted share, for the second quarter of 2019, as compared to $62.2 million, or $0.31 per basic and diluted share, for the second quarter of 2018.  Net income for the second quarter of 2019 included an aggregate net gain on dispositions of real estate of $15.0 million as compared to an aggregate net gain on dispositions of real estate of $20.0 million for the same period in 2018.

Net income includes such items as gain or loss on dispositions of real estate and provisions for impairment, which can vary from quarter to quarter and impact net income and period-to-period comparisons.

Net income for the six months ended June 30, 2019 was $113.5 million, or $0.50 per basic and diluted share, compared to $112.2 million, or $0.57 per basic and diluted share, for the six months ended June 30, 2018. Net income for the first half of 2019 included an aggregate net gain on dispositions of real estate of $13.1 million as compared to $29.6 million for the same period in 2018.

Adjusted Funds from Operations (AFFO)

AFFO increased 25.3% to $114.2 million, or $0.50 per basic and diluted share, for the second quarter of 2019, compared to AFFO of $91.1 million, or $0.46 per basic share and $0.45 per diluted share, for the second quarter of 2018.

AFFO for the six months ended June 30, 2019 was $222.0 million, or $0.99 per basic share and $0.98 per diluted share, an increase of 25.4% from $177.0 million, or $0.90 per basic share and $0.89 per diluted share, for the six months ended June 30, 2018. The year-over-year increase in AFFO for the three- and six-month periods was primarily driven by additional rental revenues and interest income generated by the growth in the Company’s real estate investment portfolio.

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Dividend Information

As previously announced, STORE Capital declared a regular quarterly cash dividend per common share of $0.33 for the second quarter ended June 30, 2019. This dividend, totaling $76.0 million, was paid on July 15, 2019 to stockholders of record on June 28, 2019.

Real Estate Portfolio Highlights

Investment Activity

The Company originated $364.1 million of gross investments representing 79 property locations during the second quarter of 2019.  These origination and other activities resulted in the creation of 19 new customer relationships. The investments had a weighted average initial cap rate of 7.9%. Total investment activity for the first half of 2019 was $757.3 million representing 162 property locations with a weighted average initial cap rate of 7.9%. The Company defines “initial cap rate” for property acquisitions as the initial annual cash rent divided by the purchase price of the property. STORE’s leases customarily have lease escalations, most of which are tied to the consumer price index and subject to a cap.  For acquisitions made during the first six months of 2019, the weighted average annual lease escalation was 1.9%.

Disposition Activity

During the six months ended June 30, 2019, the Company sold 26 properties and recognized an aggregate net gain on the dispositions of real estate of $13.1 million; 22 of these 26 properties were sold in the second quarter for an aggregate net gain of $15.0 million. For the six months ended June 30, 2019, proceeds from the dispositions of real estate aggregated $95.1 million as compared to an aggregate original investment amount of $98.4 million for the properties sold.

Portfolio

At June 30, 2019, STORE Capital’s real estate portfolio totaled $8.3 billion representing 2,389 property locations. Approximately 95% of the portfolio represents commercial real estate properties subject to long-term leases, 5% represents mortgage loans and financing receivables on commercial real estate properties and a nominal amount represents loans receivable secured by the tenants’ other assets. As of June 30, 2019, the portfolio’s annualized base rent and interest (based on rates in effect on June 30, 2019 for all lease and loan contracts) totaled $669.5 million as compared to $537.7 million a year ago. The weighted average non-cancelable remaining term of the leases at June 30, 2019 was approximately 14 years.

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The Company’s portfolio of real estate investments is highly diversified across customers, brand names or business concepts, industries and geography. The following table presents a summary of the portfolio.

 

 

 

 

 

Portfolio At A Glance - As of June 30, 2019

    

  

 

Investment property locations

 

2,389

 

States

 

50

 

Customers

 

456

 

Industries in which customers operate

 

109

 

Proportion of portfolio from direct origination

 

~80

%

Contracts with STORE-preferred terms*(1)

 

94

%

Weighted average annual lease escalation(2)

 

1.8

%

Weighted average remaining lease contract term

 

~14 years

 

Occupancy(3)

 

99.7

%

Properties not operating but subject to a lease(4)

 

30

 

Investment locations subject to a ground lease

 

20

 

Investment portfolio subject to NNN leases*

 

99

%

Investment portfolio subject to Master Leases*(5)

 

91

%

Average investment amount/replacement cost (new)(6)

 

80

%

Locations subject to unit-level financial reporting

 

98

%

Median unit fixed charge coverage ratio (FCCR)/4‑Wall coverage ratio(7)

 

2.2x/2.6x

 

Contracts rated investment grade(8)

 

~75

%


*Based on annualized base rent and interest.

(1)

Represents the percentage of lease contracts that were created by STORE or contain preferred contract terms such as unit-level financial reporting, triple-net lease provisions and, when applicable, master lease provisions.

(2)

Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occurred annually.  For escalations based on a formula including CPI, assumes the stated fixed percentage in the contract or assumes 1.5% if no fixed percentage is in the contract.  For contracts with no escalations remaining in the current lease term, assumes the escalation in the extension term.  Calculation excludes contracts representing 0.2% of annualized base rent and interest where there are no further escalations remaining in the current lease term and there are no extension options.

(3)

The Company defines occupancy as a property being subject to a lease or loan contract.  As of June 30, 2019, seven of the Company’s properties were vacant and not subject to a contract.

(4)

Represents the number of the Company’s investment locations that have been closed by the tenant but remain subject to a lease.

(5)

Percentage of investment portfolio in multiple properties with a single customer subject to master leases. Approximately 85% of the investment portfolio involves multiple properties with a single customer, whether or not subject to a master lease.

(6)

Represents the ratio of purchase price to replacement cost (new) at acquisition.

(7)

STORE Capital calculates a unit’s FCCR generally as the ratio of (i) the unit’s EBITDAR, less a standardized corporate overhead expense based on estimated industry standards, to (ii) the unit’s total fixed charges, which are its lease expense, interest expense and scheduled principal payments on indebtedness (if applicable). The 4‑Wall coverage ratio refers to a unit’s FCCR before taking into account standardized corporate overhead expense. The weighted average unit FCCR and 4‑Wall coverage ratios were 2.9x and 3.7x, respectively.

(8)

Represents the percentage of the Company’s contracts that have a STORE Score that is investment grade. The Company measures the credit quality of its portfolio on a contract-by-contract basis using the STORE Score, which is a proprietary risk measure reflective of both the credit risk of the Company’s tenants and the profitability of the operations at the properties.  As of June 30, 2019, STORE Capital’s tenants had a median tenant credit profile of approximately ‘Ba3’ as measured by Moody’s Analytics RiskCalc rating scale.  Considering the profitability of the operations at each of its properties and STORE’s assessment of the likelihood that each of the tenants will choose to continue to operate at the properties in the event of their insolvency, the credit quality of its contracts, or STORE Score, is enhanced to a median of ‘Baa3’.

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Capital Transactions

The Company established a $750 million “at the market” equity distribution program, or ATM Program, in November 2018, and terminated its previous program. During the second quarter of 2019, the Company sold an aggregate of approximately 4.0 million common shares at a weighted average share price of $34.23 and raised approximately $135.7 million in net proceeds after the payment of sales agents’ commissions and offering expenses. For the six months ended June 30, 2019, the Company sold an aggregate of approximately 9.0 million common shares at a weighted average share price of $33.17 and raised approximately $294.0 million in net proceeds after the payment of sales agents’ commissions and offering expenses. 

In February 2019, the Company completed its second public debt offering, issuing $350.0 million in aggregate principal amount of unsecured, investment-grade rated 4.625% Senior Notes, due March 2029. The net proceeds from the issuance were used primarily to pay down amounts outstanding under the Company’s credit facility.

2019 Guidance

The Company is updating its 2019 AFFO per share guidance by raising the lower end of the expected range.  The Company currently expects 2019 AFFO per share to be within a range of $1.92 to $1.96, up from $1.90 to $1.96 as initially presented in November 2018, based on projected 2019 annual real estate acquisition volume, net of projected property sales, of approximately $1.1 billion.  This AFFO per share guidance equates to anticipated net income, excluding gains or losses on sales of property, of $0.88 to $0.91 per share, plus $0.97 to $0.98 per share of expected real estate depreciation and amortization, plus approximately $0.07 per share related to other items. The midpoint of the Company’s AFFO per share guidance is based on a weighted average initial cap rate on new acquisitions of 7.85% 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.

Conference Call and Webcast

A conference call and audio webcast with analysts and investors will be held later today at 12:00 p.m. Eastern Time / 9:00 a.m. Scottsdale, Arizona Time, to discuss second quarter ended June 30, 2019 operating results and answer questions.

·

Live conference call: 855‑656‑0920 (domestic) or 412‑542‑4168 (international)

·

Conference call replay available through August 15, 2019: 877‑344‑7529 (domestic) or 412‑317‑0088 (international)

·

Replay access code: 10132331

·

Live and archived webcast: http://ir.storecapital.com/CustomPage/Index?KeyGenPage=350222

About STORE Capital

STORE Capital Corporation is an internally managed net-lease real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in 2,389 property locations, substantially all of which are profit centers, in all 50 states. Additional information about STORE Capital can be found on its website at www.storecapital.com.

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Forward-Looking Statements

Certain statements contained in this press release that are not historical facts contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to the “safe harbor” created by those sections. Forward-looking statements can be identified by the use of words such as “estimate,” “anticipate,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “seek,” “approximate” or “plan,” or the negative of these words and phrases or similar words or phrases. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. For more information on risk factors for STORE Capital’s business, please refer to the periodic reports the Company files with the Securities and Exchange Commission from time to time. These forward-looking statements herein speak only as of the date of this press release and should not be relied upon as predictions of future events. STORE Capital expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein, to reflect any change in STORE Capital’s expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except as required by law.

Non-GAAP Financial Measures

FFO and AFFO

STORE Capital’s reported results are presented in accordance with U.S. generally accepted accounting principles, or GAAP. The Company also discloses Funds from Operations, or FFO, and Adjusted Funds from Operations, or AFFO, both of which are non‑GAAP measures. Management believes these two non‑GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or to cash flows from operations as reported on a statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

The Company computes FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income, excluding gains (or losses) from extraordinary items and sales of depreciable property, real estate impairment losses, and depreciation and amortization expense from real estate assets, including the pro rata share of such adjustments of unconsolidated subsidiaries.

To derive AFFO, the Company modifies the NAREIT computation of FFO to include other adjustments to GAAP net income related to certain revenues and expenses that have no impact on the Company’s long-term operating performance, such as straight-line rents, amortization of deferred financing costs and stock-based compensation. In addition, in deriving AFFO, the Company excludes certain other costs not related to its ongoing operations, such as the amortization of lease-related intangibles.

FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among the Company’s peers primarily because it excludes the effect of real estate depreciation and amortization and net gains (or losses) on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. Management believes that AFFO provides more useful information to investors and analysts because it modifies FFO to exclude certain additional revenues and expenses such as

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straight-line rents, including construction period rent deferrals, and the amortization of deferred financing costs, stock-based compensation and lease-related intangibles as such items have no impact on long-term operating performance. As a result, the Company believes AFFO to be a more meaningful measurement of ongoing performance that allows for greater performance comparability.  Therefore, the Company discloses both FFO and AFFO and reconciles them to the most appropriate GAAP performance metric, which is net income.  STORE Capital’s FFO and AFFO may not be comparable to similarly titled measures employed by other companies.

 

Contacts:

Financial Profiles, Inc.

STORECapital@finprofiles.com

Investors:

Moira Conlon, 310‑622‑8220

Lisa Mueller, 310-622-8231

or

Media:

Tricia Ross, 310‑622‑8226

STORECapital@finprofiles.com

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STORE Capital Corporation

Condensed Consolidated Statements of Income

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30, 

 

June 30, 

 

    

2019

 

2018

   

2019

 

2018

 

 

(unaudited)

 

(unaudited)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

155,464

 

$

124,413

 

$

304,955

 

$

244,313

Interest income on loans and financing receivables

 

 

7,841

 

 

6,279

 

 

14,472

 

 

11,800

Other income

 

 

482

 

 

513

 

 

998

 

 

934

Total revenues

 

 

163,787

 

 

131,205

 

 

320,425

 

 

257,047

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

  

 

 

  

 

 

  

 

 

  

Interest

 

 

39,429

 

 

31,925

 

 

77,497

 

 

61,264

Property costs

 

 

2,014

 

 

741

 

 

4,598

 

 

2,082

General and administrative

 

 

14,266

 

 

10,852

 

 

26,249

 

 

21,703

Depreciation and amortization

 

 

55,000

 

 

44,216

 

 

108,716

 

 

86,526

Provisions for impairment

 

 

 —

 

 

1,038

 

 

2,610

 

 

2,608

Total expenses

 

 

110,709

 

 

88,772

 

 

219,670

 

 

174,183

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on dispositions of real estate

 

 

15,033

 

 

19,957

 

 

13,105

 

 

29,591

Income from operations before income taxes

 

 

68,111

 

 

62,390

 

 

113,860

 

 

112,455

Income tax expense

 

 

147

 

 

189

 

 

340

 

 

294

Net income

 

$

67,964

 

$

62,201

 

$

113,520

 

$

112,161

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share of common stock -
basic and diluted:

 

$

0.30

 

$

0.31

 

$

0.50

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

227,702,281

 

 

199,514,368

 

 

224,958,759

 

 

197,113,915

Diluted

 

 

228,242,754

 

 

200,142,303

 

 

225,463,928

 

 

197,531,008

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.33

 

$

0.31

 

$

0.66

 

$

0.62

 

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STORE Capital Corporation

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

    

June 30, 2019

    

December 31, 2018

 

 

(unaudited)

 

(audited)

Assets

 

 

  

 

 

  

Investments:

 

 

  

 

 

  

Real estate investments:

 

 

  

 

 

  

Land and improvements

 

$

2,453,975

 

$

2,280,280

Buildings and improvements

 

 

5,246,800

 

 

4,888,440

Intangible lease assets

 

 

81,421

 

 

85,148

Total real estate investments

 

 

7,782,196

 

 

7,253,868

Less accumulated depreciation and amortization

 

 

(677,547)

 

 

(585,913)

 

 

 

7,104,649

 

 

6,667,955

Real estate investments held for sale, net

 

 

18,361

 

 

 —

Operating ground lease assets

 

 

21,857

 

 

 —

Loans and financing receivables

 

 

454,464

 

 

351,202

Net investments

 

 

7,599,331

 

 

7,019,157

Cash and cash equivalents

 

 

25,368

 

 

27,511

Other assets, net

 

 

75,275

 

 

67,303

Total assets

 

$

7,699,974

 

$

7,113,971

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

  

 

 

  

Liabilities:

 

 

  

 

 

  

Credit facility

 

$

73,000

 

$

135,000

Unsecured notes and term loans payable, net

 

 

1,261,533

 

 

916,720

Non-recourse debt obligations of consolidated special purpose entities, net

 

 

2,031,149

 

 

2,008,592

Dividends payable

 

 

76,009

 

 

72,954

Operating lease liabilities

 

 

27,356

 

 

 —

Accrued expenses, deferred revenue and other liabilities

 

 

112,438

 

 

117,204

Total liabilities

 

 

3,581,485

 

 

3,250,470

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

  

 

 

  

Common stock, $0.01 par value per share, 375,000,000 shares authorized, 230,330,323 and 221,071,838 shares issued and outstanding, respectively

 

 

2,303

 

 

2,211

Capital in excess of par value

 

 

4,424,885

 

 

4,129,082

Distributions in excess of retained earnings

 

 

(306,573)

 

 

(267,651)

Accumulated other comprehensive loss

 

 

(2,126)

 

 

(141)

Total stockholders’ equity

 

 

4,118,489

 

 

3,863,501

Total liabilities and stockholders’ equity

 

$

7,699,974

 

$

7,113,971

 

STORE Capital Corporation

Page 10 of 14

STORE Capital Corporation

Reconciliations of Non-GAAP Financial Measures

(In thousands, except per share data)

Funds from Operations and Adjusted Funds from Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30, 

 

June 30, 

 

    

2019

    

2018

    

2019

    

2018

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

67,964

 

$

62,201

 

$

113,520

 

$

112,161

Depreciation and amortization of real estate assets

 

 

54,921

 

 

43,967

 

 

108,560

 

 

86,035

Provision for impairment of real estate

 

 

 —

 

 

 —

 

 

2,610

 

 

 —

Gain on dispositions of real estate, net of tax(1)

 

 

(15,033)

 

 

(19,926)

 

 

(13,105)

 

 

(29,504)

Funds from Operations

 

 

107,852

 

 

86,242

 

 

211,585

 

 

168,692

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

  

 

 

  

 

 

  

 

 

  

Straight-line rental revenue:

 

 

  

 

 

  

 

 

  

 

 

  

Fixed rent escalations accrued

 

 

(1,622)

 

 

(1,694)

 

 

(2,875)

 

 

(3,523)

Construction period rent deferrals

 

 

389

 

 

1,405

 

 

997

 

 

2,122

Amortization of:

 

 

  

 

 

  

 

 

  

 

 

  

Equity-based compensation

 

 

3,071

 

 

2,200

 

 

4,757

 

 

3,666

Deferred financing costs and other

 

 

2,202

 

 

2,023

 

 

4,253

 

 

4,126

Lease-related intangibles and costs

 

 

664

 

 

571

 

 

1,357

 

 

1,211

Provision for loan losses

 

 

 —

 

 

1,038

 

 

 —

 

 

2,608

Capitalized interest

 

 

(336)

 

 

(657)

 

 

(754)

 

 

(1,054)

Executive severance costs

 

 

1,956

 

 

 —

 

 

1,956

 

 

 —

Loss (gain) on defeasance/extinguishment of debt

 

 

 —

 

 

 —

 

 

735

 

 

(814)

Adjusted Funds from Operations

 

$

114,176

 

$

91,128

 

$

222,011

 

$

177,034

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared to common stockholders

 

$

74,676

 

$

63,614

 

$

150,685

 

$

125,007

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share of common stock: (2)

 

 

  

 

 

  

 

 

  

 

 

  

Basic and Diluted

 

$

0.30

 

$

0.31

 

$

0.50

 

$

0.57

FFO per share of common stock: (2)

 

 

  

 

 

  

 

 

  

 

 

  

Basic and Diluted

 

$

0.47

 

$

0.43

 

$

0.94

 

$

0.85

AFFO per share of common stock: (2)

 

 

  

 

 

  

 

 

  

 

 

  

Basic

 

$

0.50

 

$

0.46

 

$

0.99

 

$

0.90

Diluted

 

$

0.50

 

$

0.45

 

$

0.98

 

$

0.89


(1)

For the three and six months ended June 30, 2018, includes $31,000 and $87,000, respectively, of income tax expense associated with gains recognized on the dispositions of certain properties.

(2)

Under the two-class method, earnings attributable to unvested restricted stock are deducted from earnings in the computation of per share amounts where applicable.

 

 

STORE Capital Corporation

Page 11 of 14

STORE Capital Corporation

Investment Portfolio

June 30, 2019

Real Estate Portfolio Information

As of June 30, 2019, STORE Capital’s total investment in real estate and loans approximated $8.3 billion, representing investments in 2,389 property locations, substantially all of which are profit centers for its customers.  The Company’s real estate portfolio is highly diversified.  The following tables summarize the diversification of the real estate portfolio based on the percentage of base rent and interest, annualized based on rates in effect on June 30, 2019, for all leases, loans and financing receivables in place as of that date.

Diversification by Customer

STORE Capital has a diverse customer base. At June 30, 2019, the Company’s property locations were operated by 456 customers. The largest single customer represented 2.6% of annualized base rent and interest and the top ten customers totaled 17.7% of annualized base rent and interest. The following table identifies STORE Capital’s ten largest customers as of June 30, 2019:

 

 

 

 

 

 

 

 

    

% of

 

 

 

 

Annualized

 

 

 

 

Base Rent and

 

Number of

Customer

 

Interest

 

Properties

AVF Parent, LLC (Art Van Furniture)

 

2.6

%  

 

23

Fleet Farm Group LLC

 

2.5

 

 

10

Bass Pro Group, LLC (Cabela’s)

 

2.0

 

 

 9

Cadence Education, Inc. (Early childhood/elementary education)

 

1.7

 

 

42

American Multi-Cinema, Inc. (AMC/Carmike/Starplex)

 

1.6

 

 

14

Stratford School, Inc. (Elementary and middle schools)

 

1.5

 

 

17

Dufresne Spencer Group Holdings, LLC (Ashley Furniture HomeStore)

 

1.5

 

 

21

US LBM Holdings, LLC (Building materials distribution)

 

1.5

 

 

48

Zips Holdings, LLC

 

1.4

 

 

42

CWGS Group, LLC (Camping World/Gander Outdoors)

 

1.4

 

 

19

All other (446 customers)

 

82.3

 

 

2,144

Total

 

100.0

%  

 

2,389

 

STORE Capital Corporation

Page 12 of 14

STORE Capital Corporation

Investment Portfolio

June 30, 2019

Diversification by Concept

STORE Capital’s customers operate their businesses under a wide range of brand names or business concepts. Of the more than 650 concepts represented in the Company’s investment portfolio as of June 30, 2019, the largest single concept represented 2.5% of annualized base rent and interest and the top ten concepts totaled 16.5% of annualized base rent and interest. The following table identifies the top ten customer business concepts as of June 30, 2019:

 

 

 

 

 

 

 

 

    

% of

 

 

 

 

Annualized

 

 

 

 

Base Rent and

 

Number of

Customer Business Concept

 

Interest

 

Properties

Fleet Farm

 

2.5

%  

 

10

Ashley Furniture HomeStore

 

2.4

 

 

31

Art Van Furniture

 

1.9

 

 

16

Cabela’s

 

1.9

 

 

 8

AMC Theaters

 

1.6

 

 

14

Big R Stores

 

1.5

 

 

26

Zips Car Wash

 

1.4

 

 

42

America’s Auto Auction

 

1.2

 

 

 7

Stratford School

 

1.1

 

 

 4

Popeyes Louisiana Kitchen

 

1.0

 

 

63

All other (647 concepts)

 

83.5

 

 

2,168

Total

 

100.0

%  

 

2,389

 

STORE Capital Corporation

Page 13 of 14

STORE Capital Corporation

Investment Portfolio

June 30, 2019

Diversification by Industry

The business concepts of STORE Capital’s customers are diversified across more than 100 industries within the service, retail and manufacturing sectors of the U.S. economy.  The following table summarizes these industries, by sector, into 73 industry groups as of June 30, 2019:

 

 

 

 

 

 

 

 

 

 

    

% of

 

 

    

Building

 

 

Annualized

 

 

 

Square

 

 

Base Rent and

 

Number of

 

Footage

Customer Industry Group

 

Interest

 

Properties

 

(in thousands)

Service:

 

  

 

 

  

 

  

Restaurants – full service

 

10.3

%  

 

407

 

2,758

Restaurants – limited service

 

5.3

 

 

393

 

1,030

Early childhood education

 

5.6

 

 

201

 

2,229

Health clubs

 

5.5

 

 

84

 

2,725

Movie theaters

 

4.7

 

 

41

 

2,036

Automotive repair and maintenance

 

4.3

 

 

155

 

753

Family entertainment

 

3.9

 

 

39

 

1,347

Pet care

 

3.4

 

 

161

 

1,564

Lumber and construction materials wholesalers

 

2.9

 

 

113

 

4,596

Medical and dental

 

2.6

 

 

89

 

792

Behavioral health

 

1.8

 

 

41

 

693

Career education

 

1.5

 

 

 7

 

584

Equipment sales and leasing

 

1.4

 

 

27

 

740

Elementary and secondary schools

 

1.3

 

 

 6

 

278

Wholesale automobile auction

 

1.2

 

 

 7

 

390

Metal and mineral merchant wholesalers

 

1.1

 

 

23

 

1,999

All other service (19 industry groups)

 

7.6

 

 

150

 

6,449

Total service

 

64.4

 

 

1,944

 

30,963

Retail:

 

  

 

 

  

 

  

Furniture

 

5.7

 

 

61

 

3,853

Farm and ranch supply

 

4.5

 

 

45

 

4,110

Hunting and fishing

 

2.2

 

 

10

 

813

Recreational vehicle dealers

 

1.5

 

 

21

 

954

Used car dealers

 

1.3

 

 

21

 

263

Home furnishings

 

0.7

 

 

 5

 

691

New car dealers

 

0.6

 

 

 8

 

236

All other retail (9 industry groups)

 

2.0

 

 

50

 

2,035

Total retail

 

18.5

 

 

221

 

12,955

Manufacturing:

 

  

 

 

  

 

  

Metal fabrication

 

4.2

 

 

65

 

8,472

Plastic and rubber products

 

2.5

 

 

31

 

4,080

Furniture manufacturing

 

1.8

 

 

12

 

3,688

Electronics equipment

 

1.4

 

 

10

 

1,131

Automotive parts and accessories

 

1.1

 

 

15

 

2,291

Chemical products

 

0.9

 

 

10

 

1,116

Aerospace product and parts

 

0.9

 

 

12

 

1,124

All other manufacturing (15 industry groups)

 

4.3

 

 

69

 

6,157

Total manufacturing

 

17.1

 

 

224

 

28,059

Total

 

100.0

%  

 

2,389

 

71,977

 

STORE Capital Corporation

Page 14 of 14

STORE Capital Corporation

Investment Portfolio

June 30, 2019

Diversification by Geography

STORE Capital’s portfolio is also highly diversified by geography, as the Company’s property locations can be found in all 50 states. The following table details the top ten geographical locations of the properties as of June 30, 2019:

 

 

 

 

 

 

 

 

    

% of

 

 

 

 

Annualized

 

 

 

 

Base Rent and

 

Number of

State

 

Interest

 

Properties

Texas

 

11.6

%  

 

248

Illinois

 

6.0

 

 

141

Florida

 

5.8

 

 

145

Ohio

 

5.5

 

 

137

Georgia

 

5.0

 

 

143

Michigan

 

4.5

 

 

89

California

 

4.2

 

 

41

Pennsylvania

 

4.0

 

 

79

Tennessee

 

3.9

 

 

102

Minnesota

 

3.9

 

 

84

All other (40 states) (1)

 

45.6

 

 

1,180

Total

 

100.0

%  

 

2,389


(1)

Includes one property in Ontario, Canada which represents 0.3% of annualized base rent and interest.

Contracts and Expirations

The Company focuses on long-term, triple-net leases with built-in lease escalators and uses master leases, where appropriate. As of June 30, 2019, 99% of the Company’s investment portfolio was subject to triple-net leases. Where the Company owns multiple properties leased to a single customer, 91% of this portion of the investment portfolio was subject to master leases. Leases and loans representing approximately 14.3% of the annualized base rent and interest will expire in the next ten years (before 2029). The following table sets forth the schedule of lease, loan and financing receivable expirations as of June 30, 2019:

 

 

 

 

 

 

 

 

    

% of

 

 

 

 

Annualized

 

 

 

 

Base Rent and

 

Number of

Year of Lease Expiration or Loan Maturity (1)

 

Interest

 

Properties (2)

Remainder of 2019

 

0.5

%  

 

12

2020

 

0.5

 

 

11

2021

 

0.6

 

 

 7

2022

 

0.4

 

 

 6

2023

 

0.9

 

 

26

2024

 

0.7

 

 

18

2025

 

1.4

 

 

24

2026

 

1.9

 

 

53

2027

 

3.0

 

 

59

2028

 

4.4

 

 

78

Thereafter

 

85.7

 

 

2,088

Total

 

100.0

%  

 

2,382


(1)

Expiration year of contracts in place as of June 30, 2019, excluding any tenant renewal option periods.

(2)

Excludes seven properties which were vacant and not subject to a lease as of June 30, 2019.

(Back To Top)

Section 3: EX-99.2 (EX-99.2)

Exhibit 99.2

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Designed to Perform 2019 Second Quarter Investor Presentation


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DISCLAIMER THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES ACT, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, OR THE EXCHANGE ACT. SUCH FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, STATEMENTS CONCERNING OUR BUSINESS AND GROWTH STRATEGIES, INVESTMENT, FINANCING AND LEASING ACTIVITIES AND TRENDS IN OUR BUSINESS, INCLUDING TRENDS IN THE MARKET FOR LONG-TERM, TRIPLE-NET LEASES OF FREESTANDING, SINGLE-TENANT PROPERTIES. WORDS SUCH AS “EXPECTS,” “ANTICIPATES,” “INTENDS,” “PLANS,” “LIKELY,” “WILL,” “BELIEVES,” “SEEKS,” “ESTIMATES,” AND VARIATIONS OF SUCH WORDS AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY SUCH FORWARD- LOOKING STATEMENTS. SUCH STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE OUR ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM THE RESULTS OF OPERATIONS OR PLANS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. ALTHOUGH WE BELIEVE THAT THE ASSUMPTIONS UNDERLYING THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE REASONABLE, ANY OF THE ASSUMPTIONS COULD BE INACCURATE, AND THEREFORE SUCH STATEMENTS INCLUDED IN THIS PRESENTATION MAY NOT PROVE TO BE ACCURATE. IN LIGHT OF THE SIGNIFICANT UNCERTAINTIES INHERENT IN THE FORWARD- LOOKING STATEMENTS INCLUDED HEREIN, THE INCLUSION OF SUCH INFORMATION SHOULD NOT BE REGARDED AS A REPRESENTATION BY US OR ANY OTHER PERSON THAT THE RESULTS OR CONDITIONS DESCRIBED IN SUCH STATEMENTS OR OUR OBJECTIVES AND PLANS WILL BE ACHIEVED. FURTHERMORE, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS AND MAY BE AFFECTED BY A VARIETY OF RISKS AND FACTORS INCLUDING, WITHOUT LIMITATION, THE RISKS DESCRIBED IN OUR ANNUAL REPORTS ON FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q. FORWARD-LOOKING STATEMENTS SET FORTH HEREIN SPEAK ONLY AS OF THE DATE HEREOF, AND WE EXPRESSLY DISCLAIM ANY OBLIGATION OR UNDERTAKING TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENT CONTAINED HEREIN, TO REFLECT ANY CHANGE IN OUR EXPECTATIONS WITH REGARD THERETO, OR ANY OTHER CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED, EXCEPT TO THE EXTENT OTHERWISE REQUIRED BY LAW. THIS PRESENTATION CONTAINS HISTORICAL PERFORMANCE INFORMATION REGARDING STORE CAPITAL, AS WELL AS OTHER COMPANIES PREVIOUSLY MANAGED BY OUR SENIOR EXECUTIVE TEAM. SUCH PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. THIS PRESENTATION CONTAINS REFERENCES TO OUR COPYRIGHTS, TRADEMARKS AND SERVICE MARKS AND TO THOSE BELONGING TO OTHER ENTITIES. SOLELY FOR CONVENIENCE, COPYRIGHTS, TRADEMARKS, TRADE NAMES AND SERVICE MARKS REFERRED TO IN THIS PRESENTATION MAY APPEAR WITHOUT THE “© “ OR “TM” OR “SM” SYMBOLS, BUT SUCH REFERENCES ARE NOT INTENDED TO INDICATE, IN ANY WAY, THAT WE WILL NOT ASSERT, TO THE FULLEST EXTENT UNDER APPLICABLE LAW, OUR RIGHTS OR THE RIGHTS OF THE APPLICABLE LICENSOR TO THESE COPYRIGHTS, TRADEMARKS, TRADE NAMES AND SERVICE MARKS. WE DO NOT INTEND OUR USE OR DISPLAY OF OTHER COMPANIES’ TRADE NAMES, COPYRIGHTS, TRADEMARKS OR SERVICE MARKS TO IMPLY A RELATIONSHIP WITH, OR ENDORSEMENT OR SPONSORSHIP OF US BY, ANY OTHER COMPANIES. DEFINITIONS AND FOOTNOTES FOR DATA PROVIDED HEREIN ARE PROVIDED IN THE APPENDIX SECTION OF THIS PRESENTATION. UNLESS OTHERWISE INDICATED, DATA PROVIDED HEREIN IS AS OF JUNE 30, 2019. 2


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3 STORE CAPITAL SNAPSHOT 4 DESIGNED TO PERFORM (How We Uniquely Built S|T|O|R|E) 5 Our Market. Our Approach to Real Estate Investing. Our Investment Strategy and Customers. Our Capital Structure. Our Internal Growth. Our Leadership. Our Governance. PERFORMANCE (How We Have Performed) 17 Our Many Key Achievements. Our Portfolio at a Glance. Our High Investment Diversity. Our Contract Quality. Our Investment Pipeline Activity. Our Growth and Performance. Our Comparative Stock Return Profile. Proof of our Design. APPENDIX (Important Supporting Information) 29 Prior Leadership Investment Performance. Market Value Added Performance. Dividend Growth. Peer Group Comparisons. Contract Quality Trends. Contract Seniority Importance. Portfolio Management Approach. Our Growth. FINANCIAL INFORMATION 43 DEFINITIONS AND FOOTNOTES 52 TABLE OF CONTENTS


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STORE CAPITAL SNAPSHOT NYSE: STOR; U.S. PROFIT-CENTER REAL ESTATE ~30-YEAR SUCCESSFUL LEADERSHIP TRACK RECORD $7.6B EQUITY MARKET CAP; 4.0% DIVIDEND YIELD 32% DIVIDEND INCREASE FROM 2014 TO 2018 FOUR CONSECUTIVE YEARS OF DOUBLE-DIGIT INVESTOR RETURNS 2,389 PROPERTIES LEASED TO 456 CUSTOMERS ~75% OF LEASE CONTRACTS INVESTMENT-GRADE QUALITY1 UNIQUE DIRECT ORIGINATION PLATFORM 4 “We often use a real estate term –“brick by brick” – to explain how we have been building S|T|O|R|E and our durable business model. The result is a substantial, nearly irreplaceable, trophy investment portfolio designed to deliver consistent and dependable performance.” -- Christopher Volk, CEO


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S|T|O|R|E ADDRESSES A LARGE MARKET S|T|O|R|E HAS MANY BROAD BASED MARKET OPPORTUNITIES. >$3 TRILLION STORE MARKET OPPORTUNITY » Dedicated to net-leased profit-center real estate » Focused on the service sector of the U.S. economy » Market leader in profit-center net-lease solutions » Nearly 200,000 companies in S|T|O|R|E’s target market » Approximately same size as world’s fourth largest economy » Over 20,000 contacts in proprietary prospecting database | designed to perform | 5 0 100,000 200,000 300,000 400,000 $5-$10 $10-$100 $100-$500 $500-$1B $1B+ # of Companies by Revenue Companies >$5MM in revenues Cumulative Counts ($MM) S|T|O|R|E’s Target Market (U.S. Middle Market)


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S|T|O|R|E IS SINGLE TENANT OPERATIONAL REAL ESTATE DEFINING OUR INVESTMENT ASSET CLASS SHAPES EVERYTHING WE DO. Why is that so important? » Tenants need their profit-center real estate in order to conduct business, making our rent contracts senior to other financial obligations Which is the unique payment source? » Profitability from the operations of each investment How do STORE Properties differ from other real estate? » Three sources of payment support instead of two PROPERTY VALUE CORPORATE CREDIT UNIT-LEVEL PROFITABILITY STORE Properties uniquely offer the ability to create contracts that are superior to the credit quality of the tenant. 6 | designed to perform |


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FILLING A BROAD-BASED MARKET NEED Rated S|T|O|R|E’s tenants choose to rent because…. » Long-term real estate funding solutions are lacking » Leasing real estate replaces both debt and equity » Lower cost of capital » Unparalleled product flexibility S|T|O|R|E is landlord of choice because…. » Customer-centric and solutions-oriented » Administrative ease through responsive servicing » Development and renovation opportunities » A focus on corporate flexibility and wealth creation OUR CUSTOMERS CHOOSE TO HAVE A LANDLORD RATHER THAN A BANKER. 7 S|T|O|R|E is important and fundamental to creating opportunities for our clients, their employees and other stakeholders What we do is impactful…. » Year-over-year tenant revenue growth of 15.1%1 » S|T|O|R|E customers added ~300,000 employees in 20182 » Exclusive educational event: Inside Track Forum » Online educational opportunities: STORE University » Integrated real estate capital: Master Funding Solutions | designed to perform |


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Internal Ownership Direct calling efforts on thousands of companies and financial sponsors ~80% ~20% B2B Benefits + Higher Lease Rates + Lower Real Estate Prices + Longer Lease Terms + Smaller Transaction Sizes + Greater Investment Diversity + Stronger Contracts Our unique platform has multiple origination channels enabling us to efficiently cover a very large market opportunity. All channels result in a B2B approach. OUR ORIGINATION PLATFORM IS KEY TO GREATER INVESTMENT RETURNS AND LOWER RISK. “B2B” ORIGINATION PLATFORM Virtual Salesforce Tenant introductions through intermediary relationships = Value for Stockholders 8 | designed to perform |


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1.5% 9.6% 16.5% 27.7% 16.4% 9.3% 19.0% 0.00% 20.00% 40.00% S|T|O|R|E’SDIVERSE CUSTOMER PROFILE UNPRECEDENTED GRANULARITY CUSTOMER REVENUE DISTRIBUTION1 » 456 customers operating across more than 100 industries » ~ 15 net new customers quarterly » 2,389 properties | ~ 75 net new properties quarterly » ~ 700 contracts | ~ 33 transactions closed quarterly » Average transaction size below $9 million » Repeat customers about one-third of new business » ~ 72% of customers have revenues over $50 million » Median tenant revenues ~$56 million » Weighted average tenant revenues ~$862 million » Employ ~2.5 million workers2 » Operate ~33,000 locations in all 50 states3 S|T|O|R|E TENANT PROFILES 9 BOTH OUR CUSTOMERS AND THEIR EMPLOYEES BENEFIT FROM A S|T|O|R|E RELATIONSHIP. | designed to perform | % Of Total Rent & Interest <$5MM $5 - $20MM $20 - $50MM $50 - $200MM $200 - $500MM $500MM - $1B >$1B


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Profit-Center Investing Table Stakes S|T|O|R|E’s entry-level guideposts Focus on The Big Picture Criteria that stand the test of time Know the deal Numbers and analysis Demand unit-level financial reporting. This provides the best picture of real estate quality and essentiality. Appreciate the industry. Seek industries likely to have sustained long-term relevance. Evaluate the real estate. Look to local market rents and estimates. Always request master leases on multi-unit transactions. This is the most effective way for landlords to achieve risk diversity. Understand the tenant business model. Evaluate unlevered equity returns and market share. Evaluate the corporate credit. Assess credit and know where we stand in capital stack priority. Invest in properties at or below replacement cost. This is proven to lessen defaults and raise recoveries. Evaluate the tenant business defensive moat. Understand features that make tenants viable and competitive. Evaluate unit-level financial performance. Look to long-term unit-level rent coverage reliability. Invest at yields and gross returns in excess of the brokered market. This is proven to enhance returns and increase margins of safety. Know the players. Understand the background of leadership and equity investors. Understand the corporate structure and recourse. Look for parent and affiliate company recourse and potential guarantors. 10 EVIDENCE-BASED REAL ESTATE INVESTING THE RESULT: INVESTMENT-GRADE PORTFOLIO PERFORMANCE. 10 | designed to perform |


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Portfolio Diversity 2,389 Properties > 450 Tenants >100 Industries 50 States ~80% of tenants < 1% Top Tenant <3% Non-Correlated Risk Stable Portfolio Tenant Credit Profile THE ESSENCE OF S|T|O|R|E’SINVESTING STRATEGY 11 A Value Investing Portfolio Approach, Driven By Established AAA/A+ Securitization Principles 11 THE RESULT: EXCEPTIONAL RETURNS AND INVESTMENT-GRADE PORTFOLIO PERFORMANCE. Together with Active Portfolio and Property Management Contract Seniority Virtually All Profit Center Investments Virtually All Provide Financial Statements 91% Master Lease Penetration Median Unit Coverage: 2.2:1 Median 4-Wall Coverage: 2.6:1 Wtd. Avg. Tolerable Sales Fall-off: ~40%1 Investment/Replacement Cost: 80% Investments Made at Discounts to NAV | designed to perform |


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2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 After Free Cash Flow and Proceeds from Property Sales Debt Maturities Extendable debt (three one-year options) Debt is prepayable 24 months prior to maturity Debt is prepayable 36 months prior to maturity $0 $100 $200 $300 $400 $500 2015 2016 2017 2018 CAPITAL STRUCTURE LEADERSHIP OUR LIABILITY STRUCTURE IS DESIGNED TO WITHSTAND INTEREST RATE VOLATILITY. 12 » Virtually all borrowings are long-term and fixed rate STRATEGIC LIABILITY MANAGEMENT ($MM) S|T|O|R|E’s annual free cash flow generally exceeds current debt maturities, making us effectively asset/liability neutral. Median debt maturities 2 4.8% 3.8% 3.5% 4.4% 5.1% 4.7% 4.2% 4.4% 4.4% 4.5% 4.6% N/A Avg Rate 1 » AAA/A+ asset-backed and Baa2/BBB unsecured borrowing options » $600 million unsecured multi- year revolving credit facility | designed to perform |


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$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Unencumbered Asset Pool STORE Master Funding Asset Pool Total Other Secured Debt Asset Pool COMPLEMENTARY INVESTMENT-GRADE DEBT OPTIONS GROWING UNENCUMBERED ASSET POOL ($MM) AAA & A+ STORE Master Funding » Dedicated asset-backed securities conduit » $1.9 billion outstanding Baa2/BBB Unsecured Term Borrowings » Rated by Moody’s, S&P and Fitch Ratings, stable outlook » $1.3 billion outstanding Q3 2011 2018 13 Non-recourse with minimal covenants Complete portfolio management flexibility Efficient leverage of 70% at time of issuance BBB rated notes retained for flexibility Enables superior unsecured debt ratios Provides leading term borrowing diversity A-/BBB+ STORE Unencumbered Select Ratios Net Lease Avg1 Assets2 Debt/EBITDA ~5x 3.6x Unencumbered assets/unsecured debt ~3x 3.9x Debt service coverage ~5x 6.4x Cash flow support from encumbered assets NO YES Investment-grade borrowing diversity with resultant improved unsecured credit metrics. $4.6B $2.7B $0.3B 2016 2017 ~63% ~33% ~4% $3.3B $2.5B $0.4B $2.2B $2.5B $0.4B | designed to perform | LIABILITY EFFICIENCIES ENHANCED THROUGH MULTIPLE BORROWING OPTIONS. Q2 2019 $5.2B $2.7B $0.4B


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INTERNAL GROWTH STRATEGY Lease Escalation Frequency % Base Rent and Interest1 Weighted Average Annual Escalation Rate2 Annually 73% 1.9% Every 5 years 22% 1.8% Other escalation frequencies 4% 1.3% Flat 1% N/A Total / Weighted Average 100% 1.8% LEASE ESCALATIONS DIVIDENDS » Market-leading dividend increases » 8.0% in 2015 » 7.4% in 2016 » 6.9% in 2017 » 6.5% in 2018 » Market-leading dividend protection3 » 70% payout ratio in 2015 » 68% payout ratio in 2016 » 70% payout ratio in 2017 » 70% payout ratio in 2018 Annual Lease Escalations AFFO Per Share Growth 1.00% 1.55% 1.25% 1.93% 1.50% 2.32% 1.80% 2.79% 2.00% 3.09% + Reinvested Cash Flows 65.0% 70.0% 75.0% 80.0% 2.93% 2.47% 2.01% 1.56% = Estimated Internal Growth > 5% INTERNAL GROWTH IS DRIVEN BY RETAINED AND REINVESTED CASH FLOWS. 14 ESTIMATED GROSS INTERNAL GROWTH4 AFFO Payout Ratio AFFO Per Share Growth 32% INCREASE SINCE IPO | designed to perform |


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UNRIVALED LEADERSHIP OVER DECADES Experienced…. » Built & managed three net-lease real estate investment companies » Invested over $18 billion in profit-center real estate (9,700+ properties) » Consistently outperformed broader REIT market returns over multiple decades1 » Navigated platforms through multiple economic cycles & interest rate environments » Thought leadership through primary and published research Groundbreaking…. » Investment-grade corporate net-lease rating (1995) » Net-lease real estate master trust conduit (2005) » NYSE-listed public company sales (2001 & 2007) » Private institutional investor sponsorships (1999 & 2011) » Inaugural issuance of AAA rated net-lease notes (2018) A PROGRESSION OF INNOVATION AND THOUGHT LEADERSHIP OVER THREE DECADES. 15 1980 Q2 2019 > $18 B We have successfully invested in and managed more STORE Properties and over a longer period of time than anyone. 92 employees in one office, ~42% of which drive our origination activity. | designed to perform |


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CORPORATE RESPONSIBILITY AND GOVERNANCE ➢ STORE’SCOMMITMENT TO BEST PRACTICES IN BOARD GOVERNANCE 16 WE MEASURE SUCCESS BY MORE THAN JUST OUR FINANCIAL PERFORMANCE. Independent Board, Chairman and Committees? ✓ Board Refreshment? ✓ Board Diversity? ✓ Regular Board Evaluations? ✓ Proxy Access? ✓ Regular Stockholder Engagement? ✓ Opt-out of State Anti-Takeover Provisions1? ✓ No Poison Pill? ✓ Non-Staggered Board? ✓ Stockholder Ability to Amend Bylaws? ✓ Full Tenant Credit Quality Distribution Annual Average Internal Growth Walk Portfolio Master Lease Penetration Net Lease Contract Quality Distribution Interest Rate Sensitivity Analysis Portfolio Unit-Level Performance Multi-Year Tenant & Contract Analysis Shareholder Market Value Added Property Sales Activity Impact on Growth Tenant Revenue/Size Distribution NN vs. NNN Lease Investments Building Only/Ground Lease Investments Net Lease Contractual Escalations Appraised Property Replacement Costs Performing but Vacant Assets ➢ STORE’SCOMMITMENT TO ALL STAKEHOLDERS ➢ STORE seeks to deliver stable, predictable, investment-grade stockholder performance. ➢ STORE investments and solutions enable improved customer wealth creation prospects. ➢ STORE endeavors to promote employee opportunity, education, engagement and diversity. ➢ STORE contributes to communities through investment and attention to environmental stewardship. ➢ STORE’SCOMMITMENT TO TRANSPARENT BEST PRACTICES IN STOCKHOLDER DISCLOSURE | designed to perform | WE MEASURE SUCCESS BY MORE THAN JUST OUR FINANCIAL PERFORMANCE.


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KEY ACHIEVEMENTS AS A PUBLIC COMPANY » EXCEPTIONAL PERFORMANCE » More than doubled our pipeline of investment opportunities1 to ~$13 Billion since IPO » Achieved average monthly investment activity in excess of $100 million since 2015 » Increased our dividends to shareholders 32% (6.5% in 2018) » Delivered AFFO per share growth of ~43%2 (7.6% in 2018) » Realized compound annual shareholder returns greater than 17% vs. just under 7.0% for Equity REITs » Created exceptional Market Value Added with our equity valuation exceeding equity cost by 59%3 » Delivered four consecutive years of double-digit stockholder returns | performance | 17 » MARKET RECOGNITION » Garnered investor interest from well-known investors, including Berkshire Hathaway, an 8.1% shareholder » Instituted programmatic ability to uniquely issue AAA rated structured finance notes » Amongst the highest corporate net-lease credit ratings from all three agencies (BBB, BBB, Baa2) » INVESTMENT SAFETY » Have been amongst the industry leaders in dividend protection4 » Have realized approximate A-rated portfolio performance since inception » Maintained a consistent real estate occupancy5 level of 99% or better


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18 PORTFOLIO AT AGLANCE As of June 30, 2019 2018 2017 Investment property locations 2,389 2,084 1,770 States 50 49 48 Customers 456 412 371 Industries in which our customers operate 109 105 101 Proportion of portfolio from direct origination ~80% ~80% ~80% Contracts with STORE-preferred terms*1 94% 93% 92% Weighted average annual lease escalation2 1.8% 1.8% 1.8% Weighted average remaining lease contract term ~14 years ~14 years ~14 years Occupancy3 99.7% 99.7% 99.5% Properties not operating but subject to a lease4 30 20 13 Investment locations subject to a ground lease 20 20 18 Investment portfolio subject to NNN leases* 99% 98% 97% Investment portfolio subject to Master Leases*5 91% 89% 86% Average investment amount / replacement cost (new)6 80% 82% 82% Locations subject to unit-level financial reporting7 98% 97% 97% Median unit FCCR / 4-wall FCCR8 2.2x / 2.6x 2.0x / 2.5x 2.1x / 2.6x Contracts rated investment grade9 ~75% ~75% ~75% | performance | INDUSTRY LEADING GROWTH AND PORTFOLIO CONSISTENCY.


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DIVERSIFICATION ACROSS INDUSTRY GROUPS As of June 30, 2019, our portfolio is diversified across 109 different industries in the service, retail and manufacturing sectors of the U.S. economy. We group these industries into 73 different industry groups as shown in the following tables. 19 | performance | SERVICE INDUSTRIES ACCOUNT FOR MORE THAN HALF OF THE U.S. EMPLOYMENT AND GDP. Building # of Sq. Ft. Customer Industry Groups Properties (in thousands) Restaurants - Full Service 407 2,758 10.3% 12.8% 13.7% Restaurants - Limited Service 393 1,030 5.3% 6.8% 7.9% Early Childhood Education 201 2,229 5.6% 6.0% 7.1% Health Clubs 84 2,725 5.5% 5.5% 5.6% Movie Theaters 41 2,036 4.7% 5.5% 6.6% Automotive Repair and Maintenance 155 753 4.3% 3.8% 2.7% Family Entertainment 39 1,347 3.9% 4.1% 3.9% Pet Care 161 1,564 3.4% 3.5% 2.9% Lumber & Construction Materials Wholesalers 113 4,596 2.9% 1.9% 1.4% Medical and Dental 89 792 2.6% 2.2% 1.5% Behavioral Health 41 693 1.8% 1.7% 1.9% Career Education 7 584 1.5% 1.8% 2.1% Equipment Sales and Leasing 27 740 1.4% 1.4% 1.5% Elementary and Secondary Schools 6 278 1.3% 1.4% 1.5% Wholesale Automobile Auction 7 390 1.2% 1.1% 1.2% Metal and Mineral Merchant Wholesalers 23 1,999 1.1% 0.8% 0.9% All Other Service (19 industry groups) 150 6,449 7.6% 7.0% 8.1% Total Service 1,944 30,963 64.4% 67.3% 70.5% % Base Rent and Interest1 As of June 30, (~64%) 2019 2018 2017 SERVICE Located near target customers Not readily available online Broad array of everyday services


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DIVERSIFICATION ACROSS INDUSTRY GROUPS (CONTINUED) 20 | performance | S|T|O|R|E’S RETAIL EXPOSURE HAS HIGH EXPERIENTIAL COMPONENT. Building # of Sq. Ft. Customer Industry Groups Properties (in thousands) Furniture 61 3,853 5.7% 6.4% 6.7% Farm and Ranch Supply 45 4,110 4.5% 3.3% 3.2% Hunting and Fishing 10 813 2.2% 3.0% 1.9% Recreational Vehicle Dealers 21 954 1.5% 1.0% 1.1% Used Car Dealers 21 263 1.3% 0.8% 0.6% Home Furnishings 5 691 0.7% 0.9% 1.0% New Car Dealers 8 236 0.6% 0.3% - All Other Retail (9 industry groups) 50 2,035 2.0% 2.4% 3.0% Total Retail 221 12,955 18.5% 18.1% 17.5% % Base Rent and Interest1 As of June 30, 2019 2018 2017 RETAIL (~19%) Located in retail corridors Internet resistant High experiential component Selling merchandise Metal Fabrication 65 8,472 4.2% 3.5% 2.8% Plastic and Rubber Products 31 4,080 2.5% 2.7% 2.6% Furniture Manufacturing 12 3,688 1.8% 1.0% - Electronics Equipment 10 1,131 1.4% 0.7% 0.8% Automotive Parts and Accessories 15 2,291 1.1% 0.5% - Chemical Products 10 1,116 0.9% 0.4% 0.4% Aerospace Product and Parts 12 1,124 0.9% 0.9% 0.4% All Other Manufacturing (15 industry groups) 69 6,157 4.3% 4.9% 5.0% Total Manufacturing 224 28,059 17.1% 14.6% 12.0% Total Portfolio 2,389 71,977 100% 100% 100% MANUFACTURING (~17%) Primarily located in industrial parks Strategically near customers Broad array of industries Making everyday necessities


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RETAIL PORTFOLIO VITALITY IN THE AGE OF E-COMMERCE 21 VITAL COMPONENTS COMBINE TO CREATE AN ESSENTIAL RETAIL BUSINESS MOAT. S|T|O|R|E’s Retail Tenants are Thriving in the Age of E-Commerce Vital Experiential Components Distinguish Our Largest Consumer Goods Industry Segments S|T|O|R|E invests in retail businesses having experiential components combined with strong online presence. The 8 Components of Retail Vitality in the Age of E-Commerce Treasure Hunt Price Match Vertical Integration Private Label Loyalty Programs Immediacy Project Based Consumer Financing Customer Industry Groups # of Props. In-store experience; Expert sales consultation; Buyer interaction with products Affirms online value proposition; Buyers confirm online selection; Product interaction In-store returns, Ship-to-store for assembly; local delivery and installation Differentiated products: Exclusive Products only available in branded store Strong Loyalty programs: Top retailers have 90% sales via loyalty programs. Immediate product delivery to consumers: “Owning the last mile" Project-based: Buyer requires both expert consultation and physical confirmation Consumer financing program available on location Furniture 61 Farm/Ranch Supply 45 Hunting and Fishing 10 RV Dealers 21 Used Car Dealers 21 Home Furnishings 5 New Car Dealers 8 | performance |


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22 TOP 10 CUSTOMERS1 AMC Entertainment (NYSE:AMC), is the largest movie exhibition company in the world with over 1,000 theatres and 11,000 screens across the globe, AMC operates among the most productive theatres in the United States’ top markets, having the #1 or #2 market share positions in 21 of the 25 largest metropolitan areas of the United States, including the top three markets (NY, LA, Chicago). Cadence Education is a Morgan Stanley Global private equity owned company and is one of the premier early childhood educators in the U.S. The Company’s national platform of more than 200 schools has the capacity to serve more than 20,000 students across 20 states. Mills Fleet Farm dba Fleet Farm is a full-service merchant with more than 40 locations in four mid-western states, offering a broad assortment of goods from hunting gear to lawn, garden and farm supplies. In 2016 Mills was purchased by the private equity firm KKR & Co. Zips Holdings is one of the largest car wash operators in the US with over 135 locations in operation. In 2015, founder Brett Overman partnered with Equity Investment Group and Britton Hill Partners to help identify acquisition opportunities and provide management support for onboarding operations at new units. % Base Rent and Interest2 2.6% 2.5% 1.7% 2.0% 1.6% 1.5% 1.5% 1.4% 1.5% 1.4% 17.7% Total Top 10 Customers Art Van Furniture is the Midwest’s largest furniture retailer and a top ten national furniture retailer based on sales. Founded in 1959, the company operates approximately 200 stores across 9 states. with expected annual sales of $1.3 billion. Art Van Furniture is majority owned by Boston based private equity firm Thomas H. Lee Partners. CWGS Group (NYSE:CWH), dba Camping World, is the nation’s largest retailer of recreational vehicles and related accessories, operating over 220 locations. In 2017, Camping World won a bankruptcy auction to acquire sporting goods retailer Gander Mountain, planning to build on its existing outdoor and camping brand. The Gander Mountain moniker was rebranded to Gander Outdoors. # of Properties 23 10 42 9 14 21 17 42 19 48 245 Bass Pro Group operates retail locations under the Bass Pro Shops and Cabela’s monikers, offering outdoor gear and apparel in an immersive setting. These two iconic brands, combined, operate more than 170 retail and marine centers. Both concepts are market leaders and highly respected within their respective niche of outdoor products. U.S. LBM Holdings, founded in 2009, is a collection of leading building material distributors across 30 states with more than 250 locations. The company serves as a critical link in the building materials supply chain, supplying more than 60,000 stock keeping units (“SKUs”) for custom homebuilders and specialty contractors. US LBM has filed an S-1 with the SEC as it intends to raise additional equity from an IPO. Dufresne Spencer Group is the largest Ashley’s Furniture HomeStore licensee. DSG entered our top 10 with their ownership of Hill Country Holdings, another existing STORE customer and a top Ashley licensee. DSG is backed by a seasoned management team with a strong operating history and garnered an investment from Ashley Corporate in December 2017. | performance | TOP TEN TENANTS REPRESENT 18% OF ANNUAL RENT & INTEREST. Stratford School dba Spring Education is the largest pure play US platform focused on Pre-K -12 education. Spring’s diversified collection of brands operates over 225 schools in 18 states & D.C. The company is owned by Asia-based investment firm, Primavera Capital. STORE’s investment in Stratford increased with their acquisition of Nobel Learning Communities, another existing STORE customer.


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DIVERSIFICATION ACROSS GEOGRAPHIES1 23 99.5% 99.5% 99.6% 99.6% 99.7% 99.7% 99.6% 99.7% 99.7% 80% 85% 90% 95% 100% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 OCCUPANCY2 | performance | GEOGRAPHICALLY DISPERSED PORTFOLIO WITH CONSISTENTLY HIGH OCCUPANCY RATES.


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0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% NR C/D B3 B2 B1 Ba3 Ba2 Ba1 Baa3 Baa2 Baa1 A3 A2 A1 Aa3 Aa2 Aa1 Aaa % of Annualized Rent & Interest ~75% OF CONTRACTS INVESTMENT-GRADE IN QUALITY Because we invest in profit-center real estate, our contracts almost always have less investment risk than the credit risk of our tenants. In addition, the STORE Score, being purely quantitative, is a base risk score that often understates contract quality. Moody’s RiskCalc (EDF) STORE Score 1 24 75% 74% 72% 71% 73% 73% 72% 73% 73% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 CONTRACTS RATED INVESTMENT GRADE (3-MO. AVERAGE) 2.09 2.07 2.08 2.05 2.03 2.11 2.10 2.18 2.15 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 MEDIAN UNIT-LEVEL FIXED CHARGE COVERAGE Median EDF Median STORE Score INVESTMENT-GRADE CONTRACTS MITIGATE CORPORATE DEFAULT RISK. | performance |


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25 25 INVESTMENT PIPELINE ACTIVITY PIPELINE VELOCITY DURING Q2 2019 PIPELINE SECTOR DISTRIBUTION AS OF 06/30/19 S|T|O|R|E’S PIPELINE REMAINS ROBUST AND DIVERSE. PIPELINE SIZE ($B) Emphasis on Service, Manufacturing and Select Retail sectors having high potential for long-term relevance | performance | $0 $2 $4 $6 $8 $10 $12 $14 2012 2013 2014 2015 2016 2017 2018 2019 Mfg. 20% Restaurants 14% Ent. 8% Other Service 21% Specialty Med. 5% Gyms 6% Edu. 5% Theaters 3% Storage 2% Home Furn. 3% Automotive 3% Other Retail 10% Our pipeline continues to mirror STORE’s current portfolio. $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 Starting Pipeline $13.2 B Ending Pipeline $12.7 B New Deals Added $2.7B Deals Passed / Closed $3.2 B


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26 2016 2017 2018 6MO 2018 6MO 2019 $1,223 $1,373 $1,626 $656 $757 $75 $254 $228 $161 $98 Acquisitions Dispositions 2016 2017 2018 6MO 2018 6MO 2019 $372 $448 $537 $255 $316 $246 $306 $378 $177 $222 $123 $162 $217 $112 $114 NOI AFFO Net Income NOI, AFFO AND NET INCOME ($MM)2 GROWTH AND PERFORMANCE | performance | PER SHARE ANNUAL GROWTH NET INCOME: 15.9% DIVIDENDS: 7.2% AFFO: 7.3% Compound Annual Growth Rate ACQUISITION AND DISPOSITION VOLUME ($MM) 1 GROSS RATE OF RETURN 3 5.6% 5.3% 5.4% 5.6% 2016 2017 2018 6MO 2018 6MO 2019 Borrowing Cost Cap Rate Gross Rate of Return 4.1% 3.6% 7.9% 7.8% 9.7% 9.6% 9.7% 7.9% 4.4% $0.00 $0.50 $1.00 $1.50 $2.00 2018 2017 2016 2015 2018 2017 2016 2015 2018 2017 2016 2015 S|T|O|R|E’S CONSISTENT PERFORMANCE HAS DRIVEN STOCKHOLDER RETURNS. 4.5% 7.9% 9.7% 4.6% 7.9% 9.8%


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TOTAL RETURN BUILT ON BOTH YIELD & GROWTH | performance | 27 S&P 500 Historical Dividend Yield >4.5% Historical EPS Growth1 >15% 500 companies 48 companies (10%) 20 companies (4%) S|T|O|R|E’s combination of dividend yield and EPS growth offers a superior investment opportunity that has delivered 37% AFFO per share and 32% dividend growth since our IPO. S|T|O|R|E PROVIDES AN ATTRACTIVE TOTAL RETURN RELATIVE TO THE BROADER MARKET. Comparative Annual Return Performance Rare Earnings and Growth Combination Comparative Cumulative Return Performance STORE S&P 500 MSCI Since IPO 16.1% 7.3% 3.8% 2018 14.0% (4.4%) (4.6%) 2017 10.6% 21.8% 5.1% 2016 11.0% 12.0% 8.6% 2015 12.6% 1.4% 2.5% STORE S&P 500 MSCI Since IPO 16.1% 7.3% 3.8% 1 Year 14.9% (5.2%) (4.2%) 2 Years 12.3% 7.5% (0.1%) 3 Years 12.6% 9.8% 3.3% 4 Years 12.3% 7.2% 2.4%


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PROOF OF OUR DESIGN MARKET-LEADING DIRECT INVESTMENT APPROACH IN UNDERSERVED MARKET EXCEEDING $3.4 TRILLION 1. MARKET-LEADING VALUE CREATION AND INVESTMENT-GRADE PORTFOLIO PERFORMANCE 2. MARKET-LEADING DIVERSIFIED INVESTMENT- GRADE CAPITAL MARKETS STRATEGY 3. MARKET-LEADING SECURE DIVIDENDS AND DIVIDEND GROWTH 4. MARKET-LEADING INVESTMENT DIVERSITY 5. LEADERSHIP TEAM WITH OVER 30-YEAR HISTORY AND A MULTIPLE-DECADE RECORD OF OUTPERFORMANCE1 8. | performance | 28 MARKET-LEADING GOVERNANCE AND INVESTOR DISCLOSURE 6. 7. FOUR CONSECUTIVE YEARS OF DOUBLE-DIGIT STOCKHOLDER RETURNS DRIVEN BY FINANCIAL PERFORMANCE


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Designed to Perform 2019 Second Quarter Investor Presentation Appendix


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FFCA (NYSE: FFA) 1994 - 2001 Spirit Finance (NYSE: SFC) 2003 - 2007 STORE Holding (Oaktree) 2011 - 2016 MANAGEMENT TEAM PERFORMANCE | appendix – historical performance | Management has unparalleled expertise in creating successful STORE Property investment platforms in a variety of market environments. 30 12.2% 19.7% 26.3% 11.5% 10.8% 10.9% 13.0% 8.7% 9.1% FFCA Spirit Finance STORE Holding (Oaktree) MSCI REIT Index S&P 500 S&P 500 MSCI REIT Index MSCI REIT Index S&P 500 • $4.9 billion Invested • Average Cap Rate 10.3% • Average 10-year US Treasury 6.2% • $3.5 billion Invested • Average Cap Rate 8.7% • Average 10-year US Treasury 4.4% • $4.4 billion Invested • Average Cap Rate 8.3% • Average 10-year US Treasury 2.3% EXCESS RETURN RELATIVE TO MARKET RISK1 Annualized total return S|T|O|R|E LEADERSHIP HAS A PROVEN RECORD OF RISK-ADJUSTED OUTPERFORMANCE.


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31 STABLE AND ATTRACTIVE LEASE RATE SPREADS TO TREASURY RATES S|T|O|R|E AND PREDECESSORS’ AVERAGE LEASE RATES VS. 10-YEAR TREASURIES1 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% FFCA Spirit S|T|O|R|E Ten-Year Treasury 1994 2018 3.9% 2.0% ÷ Δ = .51 24-Year Interest Rate Correlation (Cap Rate) (Treasury) NET LEASE SENSITIVITY TO INTEREST RATES LIMITS INTEREST RATE EXPOSURE. Net lease contracts are financial instruments, with yields that move with interest rates. Assuming borrowing costs rise with interest rates and lease rates rise by half of borrowing cost rates, shareholder returns will be little changed. | appendix – historical performance |


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| appendix - performance | Our elevated equity return on new investments is a principal driver of our margins of safety and contributes to superior equity value creation ability. MARGINAL EQUITY RETURNS ON NET LEASE REAL ESTATE INVESTMENTS 32 MARGINAL EQUITY RETURNS1 ((lease rate + lease escalators) x EBITDA margin -(marginal interest rate x % funded with debt)) % funded with equity ROE computed on new investments using the V-Formula ELEVATED RETURNS CONTRIBUTE TO PERFORMANCE AND CAPITAL ACCESS. ¹ Information based on YTD 1Q 2019 reported results. For companies where the year-to-date lease rate on new acquisitions is not disclosed, the formula assumes a lease rate of 7.0%. Same Store NOI growth used as a proxy for contract lease escalator where the latter is not disclosed. For companies where neither is disclosed, the formula assumes a lease escalator of 1.50%. EBITDA margin is based on revenue less reimbursed property expenses and straight-line rent. Marginal interest rate is based on the current spread on unsecured debt outstanding over the 10 year treasury. 11.7% 10.8% 9.9% 9.2% 9.1% 9.0%


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| appendix - performance | 33 S|T|O|R|E Elevated gross cap rates and EBITDA margins have contributed to higher equity rates of return, leading to a higher spread between shareholder historic cost and market valuation, or Market Value Added (MVA). COMPARATIVE VALUE CREATION: S|T|O|R|E VS. PEERS S|T|O|R|E LEADS ON SHAREHOLDER VALUE CREATION. 0% 1% 2% 3% 4% 5% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 2 4 6 8 10 12 14 16 18 20 22 24 ADC O NNN EPR SRC GROSS CAP RATE SPREAD OVER THE COST OF DEBT1 MVA GROWTH RATE2 CURRENT AFFO MULTIPLE3 ADC O NNN EPR SRC O NNN ADC SRC EPR ¹ For the YTD period ended March 31, 2019. Gross cap is initial cap rate on new acquisitions plus contract escalations. For companies where the year-to-date initial cap rate on new acquisitions is not disclosed, the formula assumes a lease rate of 7.0%. Same Store NOI growth used as a proxy for contract lease escalator where the latter is not disclosed. For companies where neither is disclosed, the formula assumes a lease escalator of 1.50%. Cost of debt is the current spread on unsecured debt outstanding over the 10 year treasury. 2 Calculated using the formula: [market capitalization / computed equity cost]^(1 / weighted average age of equity). 3 Calculated as of March 31, 2019 S|T|O|R|E S|T|O|R|E S|T|O|R|E


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85% 82% 82% 79% 77% 75% 73% 69% EPR WPC O VER ADC SRC NNN STOR DIVIDEND PER SHARE GROWTH1 (Since Q1 2015) AFFO PAYOUT RATIO2 STRONG PROTECTED DIVIDEND GROWTH Our dividend growth is the highest amongst our net-lease peers….. 34 | appendix – growth| …and our dividends are the most protected. 1 Source: Historical dividend data from Nasdaq.com. VEREIT established its quarterly dividend in Q3 2015. Data for Spirit was not included following the spin-off of SMTA. 2 Represents consensus 2019 analyst estimate as of July 1, 2019 (source: Factset). S|T|O|R|E HAS POSTED STRONG DIVIDEND GROWTH AND DIVIDEND PROTECTION. 0% 5% 10% 15% 20% 25% 30% 35% 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 STORE’s dividend growth rate is 20% higher than its nearest peer.


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49% 24% 22% 21% 18% 14% 14% 11% EPR O NNN ADC VEREIT SRC WPC STORE 9 9 10 10 10 11 12 14 VEREIT O SRC WPC ADC NNN EPR STORE MOST DIVERSIFIED TENANT BASE Source: Latest publicly available financial information as of March 31, 2019. ¹ Includes: Agree Realty Corporation; EPR Properties; Spirit Realty Capital, Inc.; VEREIT, Inc.; and W. P. Carey Inc. (weighted average lease term in years) LONGEST LEASE TERM LOWEST NEAR-TERM RENEWAL EXPOSURE (% top 5 tenants, based on current annual rent) (% expirations by period, based on current annual rent) Our net-lease portfolio has long contract terms and very high tenant diversification. HIGH QUALITY PORTFOLIO 35 | appendix – portfolio| S|T|O|R|E LEADS ON LEASE TERM AND TENANT DIVERSITY. 20% 32% 48% 26% 30% 44% 16% 26% 58% 2% 13% 85% 0 – 5 years 6 – 10 years 10+ years S|T|O|R|E National Retail Properties, Inc. Realty Income Corporation Net-Lease Peers¹


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CONSISTENT CONTRACT QUALITY 36 Tenant Rating vs. Contract Rating (Cumulative) | appendix – portfolio| STRONG CONTRACT STABILITY ACROSS S|T|O|R|E’S PORTFOLIO OVER TIME. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Baa3 Ba1 Ba2 Ba3 B1 B2 B3 C/D Tenant Ratings Strong contracts create a margin of safety relative to corporate credit risk. Contract Ratings Investment grade contracts averaging ~75% of S|T|O|R|E’s rent over prior three years.


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0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 110.0% 120.0% 130.0% SENIOR CONTRACT IMPORTANCE PROFIT CENTER LEASE CONTRACT SENIORITY GREATLY LOWERS INVESTMENT RISK. WAvg. STORE Recovery ~70%3 Avg. Loan Recovery ~56%2 Avg. CMBS Recovery ~34%1 STORE Capital Normalized Recovery Distribution vs. Other Credit Sectors Because we invest in profit-center real estate, our recoveries on underperforming assets have a distribution towards elevated recoveries as a result of lease contract seniority. 37 | appendix – portfolio|


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$17.8 $5.1 $23.6 ASSET SALES IMPACT ON INTERNAL GROWTH ACTIVELY MANAGING THE PORTFOLIO CREATES ACCRETIVE INTERNAL GROWTH. PORTFOLIO MANAGEMENT IMPACT ON GROWTH Active portfolio management is a strong complement to our property management activity to minimize portfolio investment risk. Opportunistic Sales (39%) Property Management (19%) Net Gains over Cost Strategic Sales (42%) +20% +5% +2% +10% GAINS/LOSSES ON DISPOSITIONS 2018 ($MM) • $228MM (orig. cost), 3.7% of BOY Portfolio • Opportunistic Sales 6.81% Cap • Strategic Sales 7.14% Cap • 102% Recovery on Property Mgmt. $0.7 Because STORE is levered at ~40% of our asset cost and we have generated gains on asset sales above our initial cost, we can add to our growth by leveraging those gains. 38 | appendix – portfolio| 2016 2017 2018 Averages Disposition Cap Rate (occupied property sales) 7.5% 7.6% 7.1% 7.4% Acquisition Cap Rate 7.9% 7.8% 7.9% 7.9% Spread 0.4% 0.2% 0.8% 0.5% Percent of Portfolio Sold 1.9% 5.0% 3.7% 3.5% 3 Year Annual Cumulative Effect ($000's) 2016 2017 2018 Totals Proceeds From Sales $82,200 $267,400 $251,400 $601,000 Unleveraged Revenue Accretion $329 $535 $2,011 $2,875 Internal Growth Contribution 0.10% 0.13% 0.40% 0.32% Leveraged Revenue Accretion $506 $840 $2,562 $3,908 Leveraged Internal Growth Contribution 0.15% 0.20% 0.52% 0.40%


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39 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% INTERNAL GROWTH IN PERSPECTIVE Attractive internal growth components based on approximately $8.4 billion of investments over 7.5 years Avg. Rent Related to Property Sales ~0.9% Avg. Rent Gain on Sales ~8.0% PORTFOLIO MANAGEMENT Ability to realize gains AFFO Impact ~0.1% | appendix – portfolio| MARGINS OF SAFETY, INVESTMENT-GRADE PERFORMANCE AND BUILT-IN GROWTH. Annual Rent Increase +1.8 % Reinvested Cash Flow1 +1.9 % INTERNAL GROWTH Growth by design Base Int. Growth +3.7 % +3.7% (0.3%) +0.1% PROPERTY MANAGEMENT Work in Process (WIP) WIP Drag (0.2)% WIP (0.2)% (Added drag from unresolved credit events) 3.3% Internal Growth (Unleveraged) 3.3% Growth Adjusted for Equity Capitalization (~60% at cost) Shareholder Internal Growth (Leveraged) >5% Resolved Credit Events (1.0)% Recovery (~70%) +0.7% PROPERTY MANAGEMENT Ability to manage losses Net Credit Loss (0.3)% (0.2%) Shareholder Internal Growth (Leveraged) >5% Internal Growth (Unleveraged)


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As of June 30, 2019 Unencumbered Asset Pool Total Portfolio Investment Property Locations 1,366 2,389 Total Investment Amount $5,189MM $8,280MM Weighted Average Remaining Lease Contract Term ~15 Years ~14 Years % of Portfolio Subject to NNN Leases (by ABR) 98% 99% % of Portfolio Subject to Master Leases (by ABR)1 92% 91% Avg. Investment Amount / Replacement Cost (New)2 78% 80% % of Locations Providing Unit-Level Financial Reporting3 98% 98% Median Expected Default Frequency (Tenant Risk) Ba3 Ba3 Median STORE Score (Contract Risk) 0.47% (Baa3) 0.45% (Baa3) Median Unit-Level Fixed Charge Coverage Ratio (FCCR) / 4-Wall Coverage Ratio4 2.34x / 2.84x 2.15x / 2.57x Top Tenant Exposure (% ABR) 4.3% 2.6% Top 5 Tenant Exposures (% ABR) 14.3% 10.4% Industry Diversification (by ABR) Comparison of Key Metrics: Unencumbered Pool vs. Total Portfolio Unencumbered and Secured Asset Pools Have Consistent Credit Profiles CONSISTENT ASSET QUALITY ACROSS PORTFOLIO GRANULAR AND DIVERSE ASSETS ALLOW US TO CREATE COMPARABLE ASSET POOLS. Restaurants 15.6% Manufacturing 17.1% Other Services 48.8% Retail 18.5% Restaurants 10.7% Other Services 46.2% Retail 20.7% Manufacturing 22.4% 40 Total Portfolio Unencumbered Asset Pool | appendix – portfolio|


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41 EXECUTIVE MANAGEMENT TEAM | appendix – S|T|O|R|E leadership| MARY FEDEWA Chief Operating Officer & Director » Co-Founder; Chief Operating Officer, Assistant Secretary and Assistant Treasurer; Director since August 2016 » Former Managing Director of Acquisitions at Spirit; former Senior Vice President of GE Franchise Finance (successor company to FFCA) » >20 years of experience in a broad range of financial services » Recognized as a Woman of Influence in 2016 by Real Estate Forum magazine CHRISTOPHER H. VOLK President, CEO & Director » Co-Founder; CEO and Director since Company’s inception in May 2011 » Former Co-Founder, CEO and Director of Spirit Finance Corporation (“Spirit”); former President and Director of Franchise Finance Corporation of America (“FFCA”) » >30 years of experience in structuring, managing and financing commercial real estate companies » Led largest ever real estate limited partnership roll-up transaction of its time in 1994 in formation of FFCA; oversaw issuance of FFCA's unsecured debt rating in 1995, the first unsecured debt rating ever issued to a net-lease REIT; led creation of first commercial real estate master trust debt conduit in the United States designed to finance net-lease assets in 2005 at Spirit CATHERINE LONG Chief Financial Officer, EVP & Treasurer » Co-Founder; Executive Vice President – CFO, Treasurer and Assistant Secretary since Company’s inception » Former CFO and Treasurer of Spirit; former Principal Accounting Offer of FFCA » >30 years of accounting, operating and financial management expertise » Named CFO of the Year in 2008 by Arizona chapter of Financial Executives International ANDREW ROSIVACH EVP – Underwriting » Executive Vice President—Underwriting since July 2019 » Former Managing Director and Deputy Financials Business Unit Leader covering REITs at Goldman Sachs » >20 years of research and analytic experience


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42 BOARD OF DIRECTORS MORTON H. FLEISCHER Chairman » Chairman since inception in May 2011. Former Co- Founder and Chairman of Spirit and FFCA MARY FEDEWA Chief Operating Officer & Director » Co-Founder of S|T|O|R|E; COO since September 2017 (previously EVP – Acquisitions since inception in May 2011); Director since 2016 WILLIAM F. HIPP Director » Director since 2016. Former head of real estate for Key Bank, BankBoston and FleetBoston with over 35 years in commercial banking EINAR A. SEADLER Director » Director since 2016. Founder and President of EAS Advisors LLC; Former Managing Director of Accenture Strategy JOSEPH M. DONOVAN Director » Director since 2014. Chairman of Fly Leasing Limited (NYSE: FLY) QUENTIN P. SMITH, JR Director » Director since 2014. Founder and President of Cadre Business Advisors LLC; Director of Banner Health System CHRISTOPHER H. VOLK Chief Executive Officer & Director » Co-Founder of S|T|O|R|E; CEO and Director since inception in May 2011. Former Co-Founder, CEO and Director of Spirit and President and Director of FFCA CATHERINE D. RICE Director » Director since October 2017. Lead Independent Director, Colony Credit Real Estate, Inc. (NYSE: CLNC); Former Senior Managing Director and CFO of W.P. Carey | appendix – S|T|O|R|E leadership| RAJATH SHOURIE Director » Director since February 2019. Managing Director and co-portfolio manager within Oaktree Capital Management’s Distressed Debt Group


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Designed to Perform 2019 Second Quarter Investor Presentation Financial Information


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44 CONDENSED CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Six Months Ended June 30, June 30, $ thousands, except share and per share data 2019 2018 2019 2018 Revenues: (unaudited) (unaudited) Rental revenues $ 155,464 $ 124,413 $ 304,955 $ 244,313 Interest income on loans and financing receivables 7,841 6,279 14,472 11,800 Other income 482 513 998 934 Total revenues 163,787 131,205 320,425 257,047 Expenses: Interest 39,429 31,925 77,497 61,264 Property costs 2,014 741 4,598 2,082 General and administrative 14,266 10,852 26,249 21,703 Depreciation and amortization 55,000 44,216 108,716 86,526 Provisions for impairment - 1,038 2,610 2,608 Total expenses 110,709 88,772 219,670 174,183 Gain on dispositions of real estate 15,033 19,957 13,105 29,591 Income from operations before income taxes 68,111 62,390 113,860 112,455 Income tax expense 147 189 340 294 Net income $ 67,964 $ 62,201 $ 113,520 $ 112,161 Net income per share of common stock - basic and diluted $ 0.30 $ 0.31 $ 0.50 $ 0.57 Dividends declared per common share $ 0.33 $ 0.31 $ 0.66 $ 0.62 Weighted average common shares outstanding – basic 227,702,281 199,514,368 224,958,759 197,113,915 – diluted 228,242,754 200,142,303 225,463,928 197,531,008 | financial information|


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CONDENSED CONSOLIDATED BALANCE SHEETS $ thousands, except share and per share data June 30, 2019 December 31, 2018 Assets (unaudited) (audited) Investments: Real estate investments: Land and improvements $ 2,453,975 $ 2,280,280 Buildings and improvements 5,246,800 4,888,440 Intangible lease assets 81,421 85,148 Total real estate investments 7,782,196 7,253,868 Less accumulated depreciation and amortization (677,547)(585,913) 7,104,649 6,667,955 Real estate investments held for sale, net 18,361 - Operating ground lease assets 21,857 - Loans and financing receivables 454,464 351,202 Net investments 7,599,331 7,019,157 Cash and cash equivalents 25,368 27,511 Other assets, net 75,275 67,303 Total assets $ 7,699,974 $ 7,113,971 Liabilities and stockholders' equity Liabilities: Credit facility $ 73,000 $ 135,000 Unsecured notes and term loans payable, net 1,261,533 916,720 Non-recourse debt obligations of consolidated special purpose entities, net 2,031,149 2,008,592 Dividends payable 76,009 72,954 Operating lease liabilities 27,356 - Accrued expenses, deferred revenue and other liabilities 112,438 117,204 Total liabilities 3,581,485 3,250,470 Stockholders' equity: Common stock, $0.01 par value per share, 375,000,000 shares authorized, 230,330,323 and 221,071,838 shares issued and outstanding, respectively 2,303 2,211 Capital in excess of par value 4,424,885 4,129,082 Distributions in excess of retained earnings (306,573)(267,651) Accumulated other comprehensive loss (2,126)(141) Total stockholders' equity 4,118,489 3,863,501 Total liabilities and stockholders' equity $ 7,699,974 $ 7,113,971 45 | financial information |


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FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS1 Three Months Ended Six Months Ended June 30, June 30, $ thousands, except per share data 2019 2018 2019 2018 (unaudited) (unaudited) NET INCOME $ 67,964 $ 62,201 $ 113,520 $ 112,161 Depreciation and amortization of real estate assets 54,921 43,967 108,560 86,035 Provision for impairment of real estate -- 2,610 - Gain on dispositions of real estate, net of tax2 (15,033)(19,926)(13,105)(29,504) FUNDS FROM OPERATIONS (FFO) $ 107,852 $ 86,242 $ 211,585 $ 168,692 Adjustments: Straight-line rental revenue, net: Fixed rent escalations accrued (1,622)(1,694)(2,875)(3,523) Construction period rent deferrals 389 1,405 997 2,122 Amortization of: Equity-based compensation 3,071 2,200 4,757 3,666 Deferred financing costs and other noncash interest expense 2,202 2,023 4,253 4,126 Lease-related intangibles and costs 664 571 1,357 1,211 Provision for loan losses - 1,038 - 2,608 Capitalized interest (336)(657)(754)(1,054) Executive severance costs 1,956 - 1,956 - Loss (gain) on defeasance/extinguishment of debt -- 735 (814) ADJUSTED FUNDS FROM OPERATIONS (AFFO) $ 114,176 $ 91,128 $ 222,011 $ 177,034 Net Income per share of common stock - basic and diluted3 $ 0.30 $ 0.31 $ 0.50 $ 0.57 FFO per share of common stock – basic and diluted3 $ 0.47 $ 0.43 $ 0.94 $ 0.85 AFFO per share of common stock – basic3 $ 0.50 $ 0.46 $ 0.99 $ 0.90 – diluted3 $ 0.50 $ 0.45 $ 0.98 $ 0.89 46 | financial information |


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GAAP RECONCILIATIONS: NET INCOME TO FFO AND AFFO1 47 $ millions (unaudited) Year Ended December 31, Six Months Ended June 30, 2016 2017 2018 2018 2019 NET INCOME $ 123.3 $ 162.0 $ 217.0 $ 112.2 $ 113.5 Depreciation and amortization of real estate assets 119.1 149.6 180.9 86.0 108.6 Provision for impairment of real estate 1.7 11.9 5.2 - 2.6 Gain on dispositions of real estate, net of tax2 (13.2) (39.6) (45.4) (29.5) (13.1) FUNDS FROM OPERATIONS (FFO) $ 230.9 $ 283.9 $ 357.6 $ 168.7 $ 211.6 Adjustments: Straight-line rental revenue: Fixed rent escalations accrued (5.5) (6.4) (6.1) (3.5) (2.9) Construction period rent deferrals 3.1 3.1 6.6 2.1 1.0 Transaction costs 0.5 ---- Amortization of: Equity-based compensation 7.0 7.9 8.6 3.7 4.8 Deferred financing costs and other noncash interest expense3 7.3 10.0 9.5 4.1 4.3 Lease-related intangibles and costs4 2.5 7.0 2.4 1.2 1.4 Provision for loan losses - 1.5 2.6 2.6 - Capitalized interest (0.8) (1.2) (2.6) (1.1) (0.8) (Gain) loss on defeasance/extinguishment of debt --(0.8) (0.8) 0.7 Executive severance costs - 0.3 -- 2.0 Selling stockholder costs 0.8 ---- ADJUSTED FUNDS FROM OPERATIONS (AFFO) $ 245.8 $ 306.1 $ 377.9 $ 177.0 $ 222.1 | financial information |


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GAAP RECONCILIATIONS: NET INCOME TO NOI 48 $ millions (unaudited) Year Ended December 31, Six Months Ended June 30, 2016 2017 2018 2018 2019 NET INCOME $123.3 $162.0 $217.0 $112.2 $113.5 Adjustments: Interest 105.2 120.5 129.1 61.3 77.5 Transaction costs 0.5 ---- General and administrative 34.0 41.0 45.7 21.7 26.3 Selling stockholder costs 0.8 ---- Depreciation and amortization 119.6 150.3 181.8 86.5 108.7 Provisions for impairment 1.7 13.4 7.8 2.6 2.6 Gain on dispositions of real estate (13.3) (39.6) (45.5) (29.6) (13.1) Income tax expense 0.4 0.5 0.6 0.3 0.3 NET OPERATING INCOME $372.3 $448.1 $536.5 $255.0 $315.8 | financial information |


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GAAP RECONCILIATIONS: DEBT TO ADJUSTED DEBT1 49 $ millions (unaudited) As of June 30, 2019 Credit facility $ 73.0 Unsecured notes and term loans payable, net 1,261.5 Non-recourse debt obligations of consolidated special purpose entities, net 2,031.2 TOTAL DEBT $ 3,365.7 Adjustments: Unamortized net debt discount 4.4 Unamortized deferred financing costs 36.0 Cash and cash equivalents (25.4) Restricted cash deposits held for the benefit of lenders (12.5) ADJUSTED DEBT $ 3,368.2 | financial information |


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GAAP RECONCILIATIONS: NET INCOME TO ADJUSTED EBITDARE1 50 $ millions (unaudited) Three Months Ended June 30, 2019 NET INCOME $ 68.0 Adjustments: Interest 39.4 Income tax expense 0.1 Depreciation and amortization 55.0 EBITDA 162.5 Adjustments: Provision for impairment of real estate - Gain on dispositions of real estate (15.0) EBITDAre 147.5 Adjustments: Provision for loan losses - ADJUSTED EBITDAre $ 147.5 Estimated adjustment to Adjusted EBITDAre if all real estate acquisitions and dispositions for the quarter ended June 30, 2019 had occurred as of April 1, 2019 2.1 ADJUSTED EBITDAre – CURRENT ESTIMATED RUN RATE $ 149.6 ANNUALIZED ADJUSTED EBITDAre $ 590.0 ANNUALIZED ADJUSTED EBITDAre – CURRENT ESTIMATED RUN RATE $ 598.3 ADJUSTED DEBT / ANNUALIZED ADJUSTED EBITDAre 5.7x ADJUSTED DEBT/ ANNUALIZED ADJUSTED EBITDAre – CURRENT ESTIMATED RUN RATE 5.6x | financial information |


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LONG-TERM DEBT MATURITIES 51 | financial information | $ thousands Total Remaining 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter Unsecured notes $ 1,075,000 $ - $ - $ - $ 75,000 $ - $ 100,000 $ - $ 200,000 $ - $ 350,000 $ 350,000 $ - Term loans 200,000 - 100,0001 100,000 --------- Non-recourse mortgage notes: STORE Master Funding2 1,855,696 12,924 93,416 137,852 113,766 262,097 333,321 268,979 169,067 464,274 --- Other secured notes 202,380 7,415 4,039 17,796 38,177 25,059 10,687 2,428 54,914 1,089 1,137 36,426 3,213 Total $ 3,333,076 $ 20,339 $ 197,455 $ 255,648 $ 226,943 $ 287,156 $ 444,008 $ 271,407 $ 423,981 $ 465,363 $ 351,137 $ 386,426 $ 3,213 1 Extendable – three one-year options. 2 Prepayable 24 or 36 months prior to maturity.


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52 SUPPLEMENTAL REPORTING MEASURES Funds from Operations, or FFO, and Adjusted Funds from Operations, or AFFO Our reported results are presented in accordance with U.S. generally accepted accounting principles, or GAAP. We also disclose Funds from Operations, or FFO, and Adjusted Funds from Operations, or AFFO, both of which are non-GAAP measures. We believe these two non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. FFO and AFFO do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or to cash flows from operations as reported on a statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income, excluding gains (or losses) from extraordinary items and sales of depreciable property, real estate impairment losses, and depreciation and amortization expense from real estate assets, including the pro rata share of such adjustments of unconsolidated subsidiaries. To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to certain revenues and expenses that have no impact on our long-term operating performance, such as straight-line rents, amortization of deferred financing costs and stock-based compensation. In addition, in deriving AFFO, we exclude certain other costs not related to our ongoing operations, such as the amortization of lease- related intangibles. FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains (or losses) on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. Management believes that AFFO provides more useful information to investors and analysts because it modifies FFO to exclude certain additional revenues and expenses such as straight-line rents, including construction period rent deferrals, and the amortization of deferred financing costs, stock-based compensation and lease-related intangibles as such items have no impact on long-term operating performance. As a result, we believe AFFO to be a more meaningful measurement of ongoing performance that allows for greater performance comparability. Therefore, we disclose both FFO and AFFO and reconcile them to the most appropriate GAAP performance metric, which is net income. STORE Capital’s FFO and AFFO may not be comparable to similarly titled measures employed by other companies. | definitions and footnotes |


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53 SUPPLEMENTAL REPORTING MEASURES Note: In 2017, NAREIT issued a white paper recommending that companies that report EBITDA also report EBITDAre for all periods beginning after December 31, 2017. STORE’s presentation of Adjusted EBITDAre matches our previous presentation of Adjusted EBITDA. We believe that presenting supplemental reporting measures, or non-GAAP measures, such as EBITDA, EBITDAre and Adjusted EBITDAre, is useful to investors and analysts because it provides important supplemental information concerning our operating performance exclusive of certain non-cash and other costs. These non-GAAP measures have limitations as they do not include all items of income and expense that affect operations. Accordingly, they should not be considered alternatives to net income as a performance measure and should be considered in addition to, and not in lieu of, GAAP financial measures. Our presentation of such non-GAAP measures may not be comparable to similarly titled measures employed by other companies. EBITDA, EBITDAre and Adjusted EBITDAre EBITDA represents earnings (GAAP net income) plus interest expense, income tax expense, depreciation and amortization. We compute EBITDAre in accordance with the definition adopted by NAREIT. NAREIT defines EBITDAre as EBITDA (as defined above) excluding gains (or losses) from the sales of depreciable property and real estate impairment losses. To derive Adjusted EBITDAre we modify the NAREIT definition of EBITDAre to exclude other items included in GAAP net income, such as provisions for loan losses, as such items are not related to our ongoing performance. Note: The adjustments to derive Adjusted EBITDAre may not exist in every quarter, therefore EBITDAre and Adjusted EBITDAre may be equal. Annualized Adjusted EBITDAre and Adjusted Debt Annualized Adjusted EBITDAre is calculated by multiplying Adjusted EBITDAre for the most recently completed fiscal quarter by four. Annualized Adjusted EBITDAre – Current Estimated Run Rate is based on an estimated Adjusted EBITDAre calculated as if all leases and loans in place as of the last date of the most recently completed fiscal quarter had been in place as of the beginning of such quarter; then annualizing that estimated Adjusted EBITDAre for the quarter by multiplying it by four. You should not unduly rely on this metric as it is based on several assumptions and estimates that may prove to be inaccurate. Our actual reported Adjusted EBITDAre for future periods may be significantly less than that implied by our reported Annualized Adjusted EBITDAre – Current Estimated Run Rate for a variety of reasons. Adjusted Debt represents our outstanding debt obligations excluding unamortized deferred financing costs and net debt premium, further reduced for cash and cash equivalents and restricted cash deposits held for the benefit of lenders. We believe excluding unamortized deferred financing costs and net debt premium, cash and cash equivalents and restricted cash deposits held for the benefit of lenders provides an estimate of the net contractual amount of borrowed capital to be repaid, which we believe is a beneficial disclosure to investors and analysts. Adjusted Debt to Annualized Adjusted EBITDAre Adjusted Debt to Annualized Adjusted EBITDAre, or leverage, is a supplemental non-GAAP financial measure we use to evaluate the level of borrowed capital being used to increase the potential return of our real estate investments. We calculate leverage by dividing Adjusted Debt by Annualized Adjusted EBITDAre. Because our portfolio growth level is significant to the overall size of the Company, we believe that presenting this leverage metric on a run rate basis is more meaningful than presenting the metric for the historical quarterly period, and we refer to this metric as Adjusted Debt to Annualized Adjusted EBITDAre— Current Estimated Run Rate. Leverage should be considered as a supplemental measure of the level of risk to which stockholder value may be exposed. Our computation of leverage may differ from the methodology employed by other companies and, therefore, may not be comparable to other measures. | definitions and footnotes |


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54 FOOTNOTES Page 4: 1 Reflects the percentage of our contracts (based on annualized base rent and interest) that have a STORE Score that is investment grade. We measure the credit quality of our portfolio on a contract-by-contract basis using the STORE Score, which is a proprietary risk measure reflective of both the credit risk of our tenants and the profitability of the operations at the properties. Page 7: 1 Represents the weighted average percentage change (by annualized base rent and interest) in reported corporate revenues for the trailing 12-month (or nine-month if 12-month is not available) period as reported to STORE Capital for the period ended December 31, 2018 as compared to the same period ended December 31, 2017. Excludes customers representing 4.5% of annualized base rent and interest because sufficient comparable data is not available. 2 Estimated based on total revenue per employee for all companies in the middle market (based on data reported by the National Center for the Middle Market for 2018) extrapolated to the aggregate total revenue of S|T|O|R|E’s customers and the growth rate as described in footnote 1 above. Page 9: 1 Represents reported corporate revenues for financial statements received by STORE Capital through July 15, 2019. Excludes customers, representing approximately 2.9% of annualized base rent and interest, that do not report corporate revenues. 2 Estimated based on total revenue per employee for all companies in the middle market (based on data reported by the National Center for the Middle Market for 2018) extrapolated to the aggregate total revenue of S|T|O|R|E’s customers. 3 Represents the number of locations operated by S|T|O|R|E’s customers as reported to STORE Capital through December 31, 2018. Page 11: 1 Represents the tolerable fall-off in lease level sales so that EBITDAR after overhead will still cover the lease’s fixed charges (which includes S|T|O|R|E’s rent and interest) weighted by the lease’s ABRI (based on currently available results for approximately 89% of the properties in our investment portfolio). If the variable profit coefficient for an individual lease was unavailable, we assumed the variable profit coefficient for its peer group in the calculation of the fall-off amount. Calculations are based on the latest (either December 31, 2018 or March 31, 2019) tenant statements received by STORE Capital. Page 12: 1 Represents the weighted average interest rate on balloon payments due in the respective years. 2 Free cash flow approximates Adjusted Funds from Operations less dividends paid. Page 13: 1 Based on average of ratios of Realty Income and National Retail Properties as of March 31, 2019. 2 Ratios as of June 30, 2019; Unencumbered EBITDA based on NOI from Unencumbered Assets less an allocation of general and administrative expenses based on assets. Page 14: 1 Shown by percentage of annualized base rent and interest (annualized based on rates in effect on June 30, 2019, for all leases, loans and financing receivables in place as of that date). Excludes contracts representing 0.2% of annualized base rent and interest where there are no further escalations remaining in the current lease term and there are no extension options. Of our contracts in place as of June 30, 2019, 84% increase based on changes in CPI, 15% increase based on fixed rates in the contract and only 1% do not increase. 2 Represents the weighted average annual escalation rate of the entire portfolio as if all escalations occurred annually. For escalations based on a formula including CPI, assumes the stated fixed percentage in the contract or assumes 1.5% if no fixed percentage is in the contract. For contracts with no escalations remaining in the current lease term, assumes the escalation in the extension term. 3 Dividend protection refers to the percentage difference between our AFFO per share and our dividend per share. The wider the relative gap between AFFO per share and dividends per share, the greater the implied dividend protection. All dividends are declared at the discretion of our Board of Directors and future dividends will depend upon our actual funds from operations, financial condition and capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors. 4 S|T|O|R|E defines internal growth as the combination of high average lease escalators and a low AFFO payout ratio, which allows us to reinvest a growing amount of free cash flow back into our business. Page 15: 1 See chart, page 30. Page 16: 1 Our Board of Directors has opted out of provisions of the Maryland Unsolicited Takeover Act (or “MUTA”), the business combination statute, the control share acquisition statute and provisions otherwise granting us the right to adopt a stockholder rights plan and we may not opt back into any of these statutes or provisions without stockholder approval or, in the case of a stockholder rights plan, stockholder ratification within 12 months of adoption of such a plan. In addition, our charter prevents us from establishing a staggered Board of Directors without stockholder approval. Page 17: 1 S|T|O|R|E’s pipeline from 2014 through June 30, 2019. See slide 25 for more information about S|T|O|R|E's pipeline, including its composition. S|T|O|R|E may never acquire properties in its pipeline for a variety of reasons as described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. 2 Growth rate in quarterly AFFO per share since IPO in Q4 2014. 3 Data as of March 31, 2019. 4 See footnote 3 to page 14. 5 S|T|O|R|E defines occupancy as a property being subject to a lease or loan contract. | definitions and footnotes |


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FOOTNOTES 55 Page 18: * Based on annualized base rent and interest. 1 Represents the percentage of our lease contracts that were created by S|T|O|R|E Capital or contain preferred contract terms such as unit-level financial reporting, triple-net lease provisions and, when applicable, master lease provisions. 2 Weighted average annual lease escalation represents the weighted average annual escalation rate of the entire portfolio as if all escalations occurred annually. For escalations based on a formula including CPI, assumes the stated fixed percentage in the contract or assumes 1.5% if no fixed percentage is in the contract. For contracts with no escalations remaining in the current lease term, assumes the escalation in the extension term. Calculation excludes contracts representing less than 0.2% of annualized base rent and interest where there are no further escalations remaining in the current lease term and there are no extension options. 3 S|T|O|R|E defines occupancy as a property being subject to a lease or loan contract. As of June 30, 2019, seven of our properties were vacant and not subject to a contract. 4 The number of properties not currently operating but subject to a lease represents the number of our investment locations that have been closed by the tenant but remain subject to a lease. 5 The percentage of investment portfolio subject to master leases represents the percentage of the investment portfolio in multiple properties with a single customer subject to master leases. Based on annualized base rent and interest, 85% of the investment portfolio involves multiple properties with a single customer, whether or not subject to a master lease. 6 The average investment amount/replacement cost (new) represents the ratio of purchase price to replacement cost (new) at acquisition. 7 Of the 98% of our properties that are required to provide unit- level reporting, 94% have provided current obligated statements as of July 23, 2019. 8 S|T|O|R|E calculates unit fixed charge coverage ratio generally as the ratio of (i) the unit’s EBITDAR, less a standardized corporate overhead expense based on estimated industry standards, to (ii) the unit’s total fixed charges, which are its lease expense, interest expense and scheduled principal payments on indebtedness (if applicable). The 4-Wall coverage ratio refers to a unit’s FCCR before taking into account standardized corporate overhead expense. The weighted average unit FCCR and 4-Wall coverage ratios were 2.9x and 3.7x, respectively, as of June 30, 2019, 2.8x and 3.5x, respectively, as of June 30, 2018 and 2.9x and 3.6x, respectively, as of June 30, 2017. 9 The proportion of investment contracts rated investment grade represents the percentage of our contracts (based on annualized base rent and interest) that have a STORE Score that is investment grade. We measure the credit quality of our portfolio on a contract-by-contract basis using the STORE Score, which is a risk measure reflective of both the credit risk of our tenants and the profitability of the operations at the properties. Pages 19 and 20: 1 Data as of June 30, 2019, 2018 and 2017, by percentage of annualized base rent and interest (annualized based on rates in effect on those dates, for all leases, loans and financing receivables in place as of those dates). The industry group classification for certain customers as of June 30, 2018 and 2017 have been changed to conform to the June 30, 2019 presentation. Page 22: 1 Data based on information available on customer websites, news releases and/or SEC filings. 2 Data as of June 30, 2019, by percentage of annualized base rent and interest (annualized based on rates in effect on June 30, 2019, for all leases, loans and financing receivables in place as of that date). Page 23: 1 Based on annualized base rent and interest. 2 Represents the percentage of our properties that are occupied. S|T|O|R|E defines occupancy as a property being subject to a lease or loan contract. With respect to the occupancy rate provided for 3Q17, as of September 30, 2017, the Company owned 19 properties that were vacant and not subject to a contract; subsequent to September 30, 2017 and prior to our 3Q17 earnings release, eight of these properties were re-leased and one was sold and the Company’s occupancy rate improved from 99.0% to 99.5%. Page 24: 1 We measure the credit quality of our portfolio on a contract- by-contract basis using the STORE Score, which is a proprietary risk measure reflective of both the credit risk of our tenants and the profitability of the operations at our properties. The STORE Score is a quantitative measurement of contract risk computed by multiplying tenant default probabilities (using Moody’s RiskCalc) and estimated store closure probabilities (using a simple algorithm we developed that has closure probabilities ranging from 100% to 10%, depending on unit-level profitability). Qualitative features can also impact investment risk, such as low property investment amounts, favorable tenant debt capital stacks, the presence of third party guarantors, or other factors. Such qualitative factors are not included in the STORE Score and may serve to mitigate investment risk even further. Page 26: 1 Acquisitions represent both acquisitions of real estate and investment in loans and financing receivables. Dispositions represent the original acquisition cost of real estate sold and loan repayments received in conjunction with real estate sales. 2 Refer to pages 46 through 48 and page 52 for definitions of these non-GAAP financial measures and reconciliation to GAAP net income. 3 Gross Rate of Return represents initial cap rate plus weighted average annual lease escalators. Gross returns do not represent the actual returns we may earn on properties. | definitions and footnotes |


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FOOTNOTES 56 Page 27: 1 Source: CapIQ. Data as of December 31, 2018. Page 28: 1 Based on annualized total returns earned by management’s prior investment vehicles while operating as a public company, compared to annualized total returns on the MSCI US REIT Index during the same periods. The past performance of these investment vehicles is not an indicator of S|T|O|R|E’s future performance, and S|T|O|R|E’s performance may be significantly less favorable than the past performance data included in this presentation. Moreover, some of the past performance data covers periods with economic characteristics and cycles and interest rate environments that are significantly different from those S|T|O|R|E faces today and may face in the future. Page 30: 1 Source: Green Street Advisors, Company data and, with respect to FFCA and Spirit Finance, publicly available SEC company filings. The Sharpe Ratio measures the ratio of excess returns to risk, using the spread between capitalization or lease rates and the 10-year U.S. Treasury yields to measure excess returns, and using the standard deviation of returns to measure risk. All ratios are calculated using capitalization or lease rate data during which FFCA and Spirit were publicly traded companies and the period since S|T|O|R|E’s inception. The ratio is calculated based on historical data from January 1994 to December 2018, and future returns and risk may not be consistent with this historical data. Page 31: 1 Source: U.S. Treasury, Company data and, with respect to FFCA and Spirit Finance, publicly available SEC company filings. Page 37: 1 Converted to Recovery on Original Value. Average CMBS recovery 49.6% and Average LTV is 69.2% (1995-2018) Source: Kroll. 2 Converted to Recovery on Original Value. Average Loan recovery is 80.4% and Average LTV is 70% (1987-2017) Sources: Moody’s & Loans.com. 3 Weighted Average STORE recovery based on rents. Recovery to Original Value will tend to be higher. Page 39: Note: Data through December 31, 2018. ¹ Growth from reinvested cash flow is equal to (i) the incremental cash flow added from reinvesting retained cash assuming a prior period payout ratio of 70%, leveraged at 45% with a borrowing cost of 4.50% and amortization of 45 years, reinvested at 7.85% less incremental operating costs of 0.25% divided by (ii) prior period rents assuming assets were acquired at 7.85%. Page 40: Note: Data as of June 30, 2019. “ABR” is annualized base rent and interest. 1 Percentage of investment portfolio in multiple properties with a single customer subject to master leases. Based on annualized base rent & interest of S|T|O|R|E’s total investment portfolio as of June 30, 2019. 2 Represents the ratio of purchase price to replacement cost (new) at acquisition. 3 Represents the percentage of our properties that are required to provide unit-level reporting. 4 S|T|O|R|E calculates a unit’s FCCR generally as the ratio of (i) the unit’s EBITDAR, less a standardized corporate overhead expense based on estimated industry standards, to (ii) the unit’s total fixed charges, which are its lease expense, interest expense and scheduled principal payments on indebtedness. The 4-Wall coverage ratio refers to a unit’s FCCR before taking into account standardized corporate overhead expense. Page 46: 1 See page 52 for discussion regarding use of Funds From Operations and Adjusted Funds from Operations. 2 For the three and six months ended June 30, 2018 includes $31,000 and $87,000, respectively, of income tax expense associated with gains recognized on the dispositions of certain properties. 3 Under the two-class method, earnings attributable to unvested restricted stock are deducted from earnings in the computation of per share amounts where applicable. Page 47: 1 See page 52 for discussion regarding use of Funds From Operations and Adjusted Funds from Operations. 2 For the years ended December 31, 2016, 2017 and 2018, includes $76,000, $5,000 and $130,000, respectively, and for the three and six months ended June 30, 2018 includes $31,000 and $87,000, respectively, of income tax expense associated with gains recognized on the dispositions of certain properties. 3 For the years ended December 31, 2017 and 2018, includes $2.0 million and $2.1 million, respectively, of accelerated amortization of deferred financing costs primarily related to the prepayment of debt. 4 For the year ended December 31, 2017, includes a $4.6 million charge related to accelerated amortization of lease incentives associated with terminated lease contracts. Page 49: 1 See page 53 for discussion regarding use of EBITDAre, Adjusted EBITDAre and Adjusted Debt. Page 50: 1 See page 53 for discussion regarding use of EBITDAre, Adjusted EBITDAre and Adjusted Debt. | definitions and footnotes |


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Designed to Perform 2019 Second Quarter Investor Presentation Investor and Media Contacts Financial Profiles, Inc. Moira Conlon, 310.622.8220 Tricia Ross, 310.622.8226 STORECapital@finprofiles.com Corporate Headquarters 8377 East Hartford Drive, Suite 100 Scottsdale, Arizona 85255 480.256.1100 www.STOREcapital.com


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