STORE Capital Posts Modest Q2 Revenue, Net Income Gains

TL;DR

**STORE Capital's Q2 was steady but unexciting, showing modest growth with lingering concentration risks that could cap upside.**

AI Summary

STORE CAPITAL LLC reported total revenues of $208.7 million for the three months ended June 30, 2025, a slight increase from $207.9 million in the prior-year period. Net income attributable to common shareholders was $90.2 million for the quarter, up from $88.5 million in the same period last year. The company's real estate investment portfolio showed a significant concentration in Texas, representing 10.8% of the total portfolio as of June 30, 2025. A key business change includes the issuance of $200.0 million in Series 2025-1 Class A-4 Notes due April 2031 in April 2025, impacting its debt structure. Risks include customer concentration, with the largest customer accounting for 2.8% of aggregate investment portfolio revenues for the six months ended June 30, 2025. The strategic outlook emphasizes managing its diversified real estate portfolio and optimizing its debt profile through transactions like the $200.0 million notes issuance.

Why It Matters

STORE Capital's stable revenue and net income growth, albeit modest, signal resilience in its net-lease real estate model, which is crucial for income-focused investors. The company's geographic concentration in Texas (10.8% of portfolio) and customer concentration (2.8% from largest customer) introduce specific risks that investors should monitor, especially in a competitive real estate market where diversification is key. Employees and customers benefit from the stability, but market participants will be watching for more aggressive growth or further diversification to maintain a competitive edge against other REITs.

Risk Assessment

Risk Level: medium — The risk level is medium due to the geographic concentration, with Texas representing 10.8% of the real estate investment portfolio as of June 30, 2025. Additionally, customer concentration risk is present, as the largest customer accounted for 2.8% of aggregate investment portfolio revenues for the six months ended June 30, 2025, making the company susceptible to economic downturns in specific regions or with key tenants.

Analyst Insight

Investors should maintain a neutral to slightly cautious stance, monitoring STORE Capital's efforts to diversify its portfolio and reduce customer concentration. Consider holding existing positions but await clearer signs of accelerated growth or risk mitigation before increasing exposure.

Financial Highlights

revenue

$208.7M

net Income

$90.2M

revenue Growth

+0.4%

Key Numbers

• $208.7M — Total Revenues (Increased from $207.9M in Q2 2024, showing modest growth.)
• $90.2M — Net Income (Increased from $88.5M in Q2 2024, indicating improved profitability.)
• 10.8% — Texas Portfolio Concentration (Represents a significant geographic risk as of June 30, 2025.)
• 2.8% — Largest Customer Revenue (Indicates customer concentration risk for the six months ended June 30, 2025.)
• $200.0M — Series 2025-1 Class A-4 Notes (Issued in April 2025, impacting the company's debt structure.)

Key Players & Entities

• STORE CAPITAL LLC (company) — filer of the 10-Q
• Texas (location) — geographic concentration of 10.8% of real estate portfolio
• $208.7 million (dollar_amount) — total revenues for Q2 2025
• $90.2 million (dollar_amount) — net income attributable to common shareholders for Q2 2025
• $200.0 million (dollar_amount) — Series 2025-1 Class A-4 Notes issued in April 2025
• April 2031 (date) — maturity date of Series 2025-1 Class A-4 Notes
• 2.8% (percentage) — revenue concentration from largest customer
• June 30, 2025 (date) — end of the reporting period for the 10-Q
• Bloomberg (company) — publisher of the analysis
• SEC (regulator) — regulator for 10-Q filings

FAQ

Risk Factors

• Geographic Concentration Risk [medium — financial]: The company's real estate portfolio has a significant concentration in Texas, representing 10.8% of the total portfolio as of June 30, 2025. This concentration exposes STORE CAPITAL LLC to potential adverse economic conditions or regulatory changes specific to that state.
• Customer Concentration Risk [low — financial]: The largest customer accounted for 2.8% of aggregate investment portfolio revenues for the six months ended June 30, 2025. While this percentage is relatively small, a significant loss of this or other key customers could impact revenue streams.

Industry Context

STORE CAPITAL LLC operates within the Real Estate Investment Trusts (REITs) sector, specifically focusing on net-lease real estate. The industry is characterized by long-term leases, stable rental income, and a reliance on capital markets for financing. Trends include increasing interest rates impacting borrowing costs and a focus on portfolio diversification to mitigate geographic and tenant-specific risks.

Regulatory Implications

As a publicly traded REIT, STORE CAPITAL LLC is subject to SEC regulations and reporting requirements, including the timely filing of 10-Q reports. Compliance with accounting standards and disclosure requirements is crucial for maintaining investor confidence and avoiding penalties.

What Investors Should Do

1. Monitor geographic concentration in Texas.
2. Assess the impact of new debt issuance.
3. Evaluate customer concentration risk.

Key Dates

• 2025-04-01: Issuance of Series 2025-1 Class A-4 Notes — The company issued $200.0 million in notes due April 2031, impacting its debt structure and potentially altering its cost of capital.
• 2025-06-30: Quarter End — Represents the period for which the reported financial results and portfolio concentrations are stated.
• 2024-06-30: Prior Year Quarter End — Provides a comparative benchmark for revenue and net income growth.

Glossary

Series 2025-1 Class A-4 Notes

A specific series of debt instruments issued by STORE CAPITAL LLC, with a maturity date in April 2031. (Represents a significant component of the company's debt financing and impacts its leverage and interest expense.)

Aggregate Investment Portfolio Revenues

The total revenue generated from all real estate investments held by the company. (Used to assess the scale of the business and the concentration risk associated with individual customers.)

Real Estate Investment Portfolio

The collection of properties and related investments owned and managed by STORE CAPITAL LLC. (The core asset base of the company, whose performance and composition are critical to financial results.)

Year-Over-Year Comparison

Total revenues for the three months ended June 30, 2025, were $208.7 million, a slight increase from $207.9 million in the prior-year period, indicating modest top-line growth. Net income also saw a modest increase to $90.2 million from $88.5 million year-over-year. No new significant risks were highlighted, but existing risks such as geographic concentration in Texas (10.8%) and customer concentration (2.8% for the largest customer) remain relevant.

Filing Documents

• ck0001538990-20250630.htm (10-Q) — 2821KB
• ck0001538990-ex31_1.htm (EX-31.1) — 16KB
• ck0001538990-ex31_2.htm (EX-31.2) — 16KB
• 0000950170-25-106003.txt ( ) — 12369KB
• ck0001538990-20250630.xsd (EX-101.SCH) — 1992KB
• ck0001538990-20250630_htm.xml (XML) — 2312KB

- FINANCIAL INFORMATION

Part I. - FINANCIAL INFORMATION 3 Item 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Income 5 Condensed Consolidated Statements of Members' Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

- OTHER INFORMATION

Part II. - OTHER INFORMATION 37 Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3. Defaults Upon Senior Securities 37 Item 4. Mine Safety Disclosures 37 Item 5. Other Information 37 Item 6. Exhibits 38

Signatures

Signatures 39 2 2

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STORE Capital LLC Condensed Consolidated Balance Sheets (In thousands) June 30, December 31, 2025 2024 (unaudited) (audited) Assets Investments: Real estate investments: Land and improvements $ 3,872,531 $ 3,840,415 Buildings and improvements 9,656,090 9,506,402 Intangible lease assets 573,033 588,635 Total real estate investments 14,101,654 13,935,452 Less accumulated depreciation and amortization ( 1,353,376 ) ( 1,083,693 ) 12,748,278 12,851,759 Real estate investments held for sale, net 28,709 — Operating ground lease assets 56,845 57,245 Loans and financing receivables, net 2,168,354 1,941,032 Net investments 15,002,186 14,850,036 Cash and cash equivalents 38,635 162,188 Other assets, net 163,338 150,349 Total assets $ 15,204,159 $ 15,162,573 Liabilities and equity Liabilities: Credit facility $ 595,000 $ 375,000 Unsecured notes and term loans payable, net 3,341,708 2,977,100 Non-recourse debt obligations of consolidated special purpose entities, net 2,577,733 2,831,007 Intangible lease liabilities, net 118,541 125,095 Operating lease liabilities 54,187 54,501 Accrued expenses, deferred revenue and other liabilities 276,801 215,101 Total liabilities 6,963,970 6,577,804 Equity: Members' equity 8,175,559 8,571,554 Retained earnings (accumulated deficit) 64,018 ( 15,406 ) Accumulated other comprehensive (loss) income ( 8,163 ) 20,497 Total members' equity 8,231,414 8,576,645 Noncontrolling interest 8,775 8,124 Total equity 8,240,189 8,584,769 Total liabilities and equity $ 15,204,159 $ 15,162,573 See accompanying notes. 3 STORE Capital LLC Condensed Consolidated Statements of Operations (unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues: Ren

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