STORE Capital Boosts Revenue, Net Income in Strong Q3

TL;DR

**STORE Capital is crushing it with revenue and net income up, signaling a solid bet in the net lease REIT space.**

AI Summary

STORE Capital LLC reported a robust financial performance for the three and nine months ended September 30, 2025. For the three months, total revenues increased by 6.3% to $305.6 million from $287.4 million in the prior year, driven by a 3.9% rise in rental revenues to $257.1 million and a significant 38.4% jump in interest income on loans and financing receivables to $46.6 million. Net income for the quarter grew by 4.7% to $33.9 million, up from $32.3 million. For the nine-month period, total revenues climbed 8.2% to $911.3 million from $842.1 million, with rental revenues increasing 3.2% to $766.5 million and interest income on loans and financing receivables surging 65.5% to $136.5 million. Net income for the nine months reached $114.3 million, a substantial 35.5% increase from $84.4 million in the same period last year. The company's net investments grew to $15.5 billion as of September 30, 2025, from $14.9 billion at December 31, 2024, primarily due to increased real estate investments and loans and financing receivables. Total assets increased to $15.8 billion from $15.2 billion, while total liabilities rose to $7.4 billion from $6.6 billion, mainly due to higher unsecured notes and non-recourse debt. Cash provided by operating activities for the nine months increased to $582.8 million from $541.6 million.

Why It Matters

STORE Capital's strong revenue and net income growth, particularly the significant increase in interest income from loans and financing receivables, indicates effective capital deployment and a healthy real estate portfolio. This performance suggests stability for investors, especially given its REIT status which typically offers attractive distributions. For employees, continued growth could mean job security and expansion opportunities. Customers benefit from a stable landlord and potential for continued investment in properties. In the broader market, this performance highlights the resilience of the single-tenant operational real estate sector, potentially attracting more capital and intensifying competition, especially from other REITs and private equity firms in the net lease space.

Risk Assessment

Risk Level: low — The company demonstrates a low risk level due to consistent revenue and net income growth, with a 35.5% increase in net income for the nine months ended September 30, 2025, compared to the prior year. Furthermore, cash provided by operating activities increased to $582.8 million from $541.6 million, indicating strong operational cash generation. The company's REIT structure also provides tax advantages, contributing to financial stability.

Analyst Insight

Investors should consider STORE Capital LLC as a stable income-generating asset, given its consistent growth in rental and interest income. The increase in net investments and operating cash flow suggests a healthy underlying business. Monitor future filings for continued growth in its loan and financing receivables segment, which is a significant driver of recent performance.

Financial Highlights

debt To Equity

0.88

revenue

$911.3M

total Assets

$15.8B

total Debt

$7.4B

net Income

$114.3M

cash Position

$163.5M

revenue Growth

+8.2%

Revenue Breakdown

Key Numbers

• $305.6M — Total Revenues (Q3 2025) (Increased 6.3% from $287.4M in Q3 2024)
• $33.9M — Net Income (Q3 2025) (Increased 4.7% from $32.3M in Q3 2024)
• $911.3M — Total Revenues (9 Months 2025) (Increased 8.2% from $842.1M in 9 Months 2024)
• $114.3M — Net Income (9 Months 2025) (Increased 35.5% from $84.4M in 9 Months 2024)
• $46.6M — Interest Income on Loans (Q3 2025) (Increased 38.4% from $33.7M in Q3 2024)
• $136.5M — Interest Income on Loans (9 Months 2025) (Increased 65.5% from $82.4M in 9 Months 2024)
• $15.5B — Net Investments (Sep 30, 2025) (Increased from $14.9B at Dec 31, 2024)
• $582.8M — Net Cash from Operating Activities (9 Months 2025) (Increased from $541.6M in 9 Months 2024)
• 1,125 — Units of Equity Outstanding (As of November 5, 2025)
• $13.5B — Special Purpose Entity Assets (Sep 30, 2025) (Increased from $13.2B at Dec 31, 2024)

Key Players & Entities

• STORE Capital LLC (company) — Registrant and primary entity in the filing
• GIC (company) — Global institutional investor affiliated with the take-private transaction
• Blue Owl Capital, Inc. (company) — Manager of funds affiliated with the take-private transaction
• Ivory Parent, LLC (company) — Delaware limited liability company involved in the Merger
• Ivory SuNNNs LLC (company) — Delaware limited liability company involved in the Merger
• STORE Capital Advisors, LLC (company) — Wholly-owned subsidiary providing general and administrative services
• SEC (regulator) — U.S. Securities and Exchange Commission
• $305.6 million (dollar_amount) — Total revenues for the three months ended September 30, 2025
• $114.3 million (dollar_amount) — Net income for the nine months ended September 30, 2025
• $15.5 billion (dollar_amount) — Net investments as of September 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: The company's financial performance is sensitive to changes in interest rates, particularly affecting its borrowing costs and the valuation of its assets. For the nine months ended September 30, 2025, interest expense was $278.0 million, an increase from $270.5 million in the prior year, reflecting potential impacts of rate fluctuations.
• Real Estate Market Conditions [medium — market]: Downturns in the real estate market could negatively impact rental income and property values. Total real estate investments stood at $12.7 billion as of September 30, 2025, representing a significant portion of the company's assets.
• Tenant Defaults and Credit Risk [medium — operational]: The company's revenue is dependent on its tenants' ability to meet their lease obligations. Provisions for impairment were $26.3 million for the nine months ended September 30, 2025, indicating ongoing risks associated with tenant financial health.
• Leverage and Debt Obligations [high — financial]: The company utilizes significant debt financing, with total liabilities reaching $7.4 billion as of September 30, 2025. Increases in unsecured notes and non-recourse debt could heighten financial risk if earnings falter.
• Regulatory and Compliance Environment [low — regulatory]: Changes in real estate investment, lending, or tax regulations could impact the company's operations and profitability. The company's effective tax rate for the nine months ended September 30, 2025, was a benefit of ($10.2 million), suggesting potential tax complexities.

Industry Context

STORE Capital operates within the real estate investment trust (REIT) sector, specifically focusing on net lease properties. The industry is characterized by long-term leases, stable rental income, and sensitivity to interest rates and economic conditions. Competitors include other net lease REITs and diversified real estate investors.

Regulatory Implications

As a real estate investment entity, STORE Capital is subject to various regulations concerning property ownership, leasing, and financial reporting. Changes in tax laws, particularly those affecting REITs or real estate depreciation, could have a material impact on its financial performance.

What Investors Should Do

1. Monitor interest income growth and its drivers.
2. Analyze the increase in debt levels.
3. Evaluate the trend in net investments.
4. Assess the impact of depreciation and impairment charges.

Key Dates

• 2025-09-30: End of third quarter and nine-month period — Reporting period for the condensed consolidated financial statements, showing revenue growth and net income increases.
• 2025-12-31: Previous fiscal year-end — Baseline for comparison of net investments and total assets/liabilities.

Glossary

Net investments

The total value of the company's real estate investments, loans, and financing receivables after accounting for depreciation and other adjustments. (Represents the core income-generating assets of STORE Capital LLC.)

Special purpose entity (SPE)

A legal entity created for a specific, narrow purpose, often used in securitization or to isolate financial risk. (The company has significant non-recourse debt obligations related to its consolidated SPEs, impacting its liabilities.)

Non-recourse debt

Debt that is secured by specific assets, where the lender's recourse is limited to those assets in case of default, not the general assets of the borrower. (A significant portion of STORE Capital's liabilities are non-recourse, tied to its SPEs.)

Accumulated depreciation and amortization

The total amount of depreciation and amortization expense recognized for an asset since its acquisition. (Reduces the carrying value of the company's real estate investments on the balance sheet.)

Intangible lease assets

Assets representing the value of favorable lease terms, such as below-market rents, acquired in a business combination or property acquisition. (A component of the company's real estate investments, subject to amortization.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, STORE Capital LLC demonstrates strong top-line growth, with total revenues increasing by 8.2% for the nine months ended September 30, 2025. Net income saw a substantial rise of 35.5%, indicating improved profitability. While rental revenues grew modestly, the surge in interest income on loans and financing receivables was a significant contributor. The company's balance sheet reflects an expansion in net investments and a corresponding increase in total liabilities, particularly unsecured notes and non-recourse debt, suggesting a more leveraged financial structure.

Filing Documents

• ck0001538990-20250930.htm (10-Q) — 2947KB
• ck0001538990-ex31_1.htm (EX-31.1) — 16KB
• ck0001538990-ex31_2.htm (EX-31.2) — 16KB
• 0001193125-25-272219.txt ( ) — 13104KB
• ck0001538990-20250930.xsd (EX-101.SCH) — 2091KB
• ck0001538990-20250930_htm.xml (XML) — 2448KB

- 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 (Loss) 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 40 2 2

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STORE Capital LLC Condensed Consolidated Balance Sheets (In thousands) September 30, December 31, 2025 2024 (unaudited) (audited) Assets Investments: Real estate investments: Land and improvements $ 3,917,564 $ 3,840,415 Buildings and improvements 9,734,880 9,506,402 Intangible lease assets 569,287 588,635 Total real estate investments 14,221,731 13,935,452 Less accumulated depreciation and amortization ( 1,485,707 ) ( 1,083,693 ) 12,736,024 12,851,759 Real estate investments held for sale, net 27,856 — Operating ground lease assets 53,897 57,245 Loans and financing receivables, net 2,682,685 1,964,710 Net investments 15,500,462 14,873,714 Cash and cash equivalents 163,497 162,188 Other assets, net 149,474 126,671 Total assets $ 15,813,433 $ 15,162,573 Liabilities and equity Liabilities: Credit facility $ 373,600 $ 375,000 Unsecured notes and term loans payable, net 3,339,744 2,977,100 Non-recourse debt obligations of consolidated special purpose entities, net 3,198,957 2,831,007 Intangible lease liabilities, net 115,733 125,095 Operating lease liabilities 49,788 54,501 Accrued expenses, deferred revenue and other liabilities 311,708 215,101 Total liabilities 7,389,530 6,577,804 Equity: Members' equity 8,321,559 8,571,554 Retained earnings (accumulated deficit) 97,772 ( 15,406 ) Accumulated other comprehensive (loss) income ( 8,755 ) 20,497 Total members' equity 8,410,576 8,576,645 Noncontrolling interest 13,327 8,124 Total equity 8,423,903 8,584,769 Total liabilities and equity $ 15,813,433 $ 15,162,573 See accompanying notes. 3 STORE Capital LLC Condensed Consolidated Statements of Operations (unaudited) (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024

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View this 10-Q filing on SEC EDGAR