STORE CAPITAL CORP, 10-Q filed on 8/5/2022
Quarterly Report
v3.22.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2022
Aug. 02, 2022
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
Document Transition Report false  
Entity File Number 001-36739  
Entity Registrant Name STORE CAPITAL CORPORATION  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 45-2280254  
Entity Address, Address Line One 8377 East Hartford Drive  
Entity Address, Address Line Two Suite 100  
Entity Address, City or Town Scottsdale  
Entity Address, State or Province AZ  
Entity Address, Postal Zip Code 85255  
City Area Code 480  
Local Phone Number 256-1100  
Title of 12(b) Security Common Stock  
Trading Symbol STOR  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   282,687,795
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Central Index Key 0001538990  
v3.22.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Real estate investments:    
Land and improvements $ 3,300,120 $ 3,133,402
Buildings and improvements 7,341,664 6,802,918
Intangible lease assets 62,132 54,971
Total real estate investments 10,703,916 9,991,291
Less accumulated depreciation and amortization (1,289,861) (1,159,292)
Real estate investments, net 9,414,055 8,831,999
Real estate investments held for sale, net 23,179 25,154
Operating ground lease assets 32,601 33,318
Loans and financing receivables, net 710,186 697,269
Net investments 10,180,021 9,587,740
Cash and cash equivalents 30,855 64,269
Other assets, net 115,616 121,073
Total assets 10,326,492 9,773,082
Liabilities:    
Credit facility 45,000 130,000
Unsecured notes and term loans payable, net 2,381,200 1,782,813
Non-recourse debt obligations of consolidated special purpose entities, net 2,252,667 2,425,708
Dividends payable 108,835 105,415
Operating lease liabilities 37,035 37,637
Accrued expenses, deferred revenue and other liabilities 140,433 147,380
Total liabilities 4,965,170 4,628,953
Stockholders' equity:    
Common stock, $0.01 par value per share, 375,000,000 shares authorized, 282,688,860 and 273,806,225 shares issued and outstanding, respectively 2,827 2,738
Capital in excess of par value 5,997,378 5,745,692
Distributions in excess of retained earnings (642,945) (602,137)
Accumulated other comprehensive income (loss) 4,062 (2,164)
Total stockholders' equity 5,361,322 5,144,129
Total liabilities and stockholders' equity $ 10,326,492 $ 9,773,082
v3.22.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2022
Dec. 31, 2021
Condensed Consolidated Balance Sheets    
Common stock, par value per share $ 0.01 $ 0.01
Common shares, authorized shares 375,000,000 375,000,000
Common shares, issued shares 282,688,860 273,806,225
Common shares, outstanding shares 282,688,860 273,806,225
v3.22.2
Condensed Consolidated Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Revenues:        
Rental revenues $ 209,994 $ 180,164 $ 412,055 $ 349,492
Interest income on loans and financing receivables 13,039 11,660 27,969 24,223
Other income 739 222 5,864 592
Total revenues 223,772 192,046 445,888 374,307
Expenses:        
Interest 45,908 41,709 89,907 83,537
Property costs 2,314 5,168 6,555 9,831
General and administrative 15,938 16,089 32,954 41,095
Depreciation and amortization 76,017 65,035 148,656 128,602
Provisions for impairment 5,300 6,600 6,212 13,950
Total expenses 145,477 134,601 284,284 277,015
Other income:        
Net gain on dispositions of real estate 13,656 5,880 19,732 21,550
Loss from non-real estate, equity method investment (1,175) (705) (3,332) (1,068)
Income before income taxes 90,776 62,620 178,004 117,774
Income tax expense 271 189 477 383
Net income $ 90,505 $ 62,431 $ 177,527 $ 117,391
Net income per share of common stock-basic $ 0.32 $ 0.23 $ 0.64 $ 0.44
Net income per share of common stock-diluted $ 0.32 $ 0.23 $ 0.64 $ 0.44
Weighted average common shares outstanding:        
Basic (in shares) 280,839,392 270,293,555 277,937,454 268,340,974
Diluted (in shares) 280,839,392 270,293,555 277,937,454 268,340,974
v3.22.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income        
Net income $ 90,505 $ 62,431 $ 177,527 $ 117,391
Other comprehensive income (loss):        
Unrealized gains (losses) on cash flow hedges 4,342   4,342 (3)
Cash flow hedge losses reclassified to interest expense 1,823 146 1,884 511
Total other comprehensive income 6,165 146 6,226 508
Total comprehensive income $ 96,670 $ 62,577 $ 183,753 $ 117,899
v3.22.2
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Common Stock
Capital in Excess of Par Value
Distributions in Excess of Retained Earnings
Accumulated Other Comprehensive Loss
Total
Balance at Dec. 31, 2020 $ 2,661 $ 5,475,889 $ (459,977) $ (2,795) $ 5,015,778
Balance (in shares) at Dec. 31, 2020 266,112,676        
Increase (Decrease) in Stockholders' Equity          
Net income     117,391   117,391
Other comprehensive income       508 508
Issuance of common stock, net of costs $ 51 169,463     169,514
Issuance of common stock, net of costs (shares) 5,131,091        
Equity-based compensation $ 5 17,689     17,694
Equity-based compensation (shares) 727,753        
Shares repurchased under stock compensation plan   (5,918) (3,427)   (9,345)
Shares repurchased under stock compensation plan (in shares) (283,398)        
Common dividends declared     (195,704)   (195,704)
Balance at Jun. 30, 2021 $ 2,717 5,657,123 (541,717) (2,287) 5,115,836
Balance (in shares) at Jun. 30, 2021 271,688,122        
Balance at Mar. 31, 2021 $ 2,700 5,597,279 (506,141) (2,433) 5,091,405
Balance (in shares) at Mar. 31, 2021 270,008,071        
Increase (Decrease) in Stockholders' Equity          
Net income     62,431   62,431
Other comprehensive income       146 146
Issuance of common stock, net of costs $ 16 55,395     55,411
Issuance of common stock, net of costs (shares) 1,648,040        
Equity-based compensation $ 1 4,788     4,789
Equity-based compensation (shares) 48,167        
Shares repurchased under stock compensation plan   (339) (200)   (539)
Shares repurchased under stock compensation plan (in shares) (16,156)        
Common dividends declared     (97,807)   (97,807)
Balance at Jun. 30, 2021 $ 2,717 5,657,123 (541,717) (2,287) 5,115,836
Balance (in shares) at Jun. 30, 2021 271,688,122        
Balance at Dec. 31, 2021 $ 2,738 5,745,692 (602,137) (2,164) 5,144,129
Balance (in shares) at Dec. 31, 2021 273,806,225        
Increase (Decrease) in Stockholders' Equity          
Net income     177,527   177,527
Other comprehensive income       6,226 6,226
Issuance of common stock, net of costs $ 86 249,520     249,606
Issuance of common stock, net of costs (shares) 8,607,771        
Equity-based compensation $ 3 6,473 108   6,584
Equity-based compensation (shares) 477,660        
Shares repurchased under stock compensation plan   (4,307) (1,964)   (6,271)
Shares repurchased under stock compensation plan (in shares) (202,796)        
Common dividends declared     (216,479)   (216,479)
Balance at Jun. 30, 2022 $ 2,827 5,997,378 (642,945) 4,062 5,361,322
Balance (in shares) at Jun. 30, 2022 282,688,860        
Balance at Mar. 31, 2022 $ 2,796 5,910,856 (624,558) (2,103) 5,286,991
Balance (in shares) at Mar. 31, 2022 279,595,851        
Increase (Decrease) in Stockholders' Equity          
Net income     90,505   90,505
Other comprehensive income       6,165 6,165
Issuance of common stock, net of costs $ 31 83,413     83,444
Issuance of common stock, net of costs (shares) 3,068,633        
Equity-based compensation   3,408 27   3,435
Equity-based compensation (shares) 38,346        
Shares repurchased under stock compensation plan   (299) (84)   (383)
Shares repurchased under stock compensation plan (in shares) (13,970)        
Common dividends declared     (108,835)   (108,835)
Balance at Jun. 30, 2022 $ 2,827 $ 5,997,378 $ (642,945) $ 4,062 $ 5,361,322
Balance (in shares) at Jun. 30, 2022 282,688,860        
v3.22.2
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Condensed Consolidated Statements of Stockholders' Equity        
Stock issuance costs $ 999 $ 897 $ 3,268 $ 2,858
Common dividends declared per common share (in dollars per share) $ 0.385 $ 0.36 $ 0.77 $ 0.72
v3.22.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Operating activities    
Net income $ 177,527 $ 117,391
Adjustments to net income:    
Depreciation and amortization 148,656 128,602
Amortization of deferred financing costs and other noncash interest expense 5,184 4,698
Amortization of equity-based compensation 6,477 17,694
Provisions for impairment 6,212 13,950
Net gain on dispositions of real estate (19,732) (21,550)
Loss from non-real estate, equity method investments 3,332 1,068
Distributions received from non-real estate, equity method investment 468  
Noncash revenue and other (2,460) (5,436)
Changes in operating assets and liabilities:    
Other assets 8,145 10,666
Accrued expenses, deferred revenue and other liabilities (5,944) (1,791)
Net cash provided by operating activities 327,865 265,292
Investing activities    
Acquisition of and additions to real estate (834,645) (570,156)
Investment in loans and financing receivables (62,369) (44,933)
Collections of principal on loans and financing receivables 49,968 6,691
Proceeds from dispositions of real estate 117,239 172,492
Contributions made to non-real estate, equity method investment (468)  
Net cash used in investing activities (730,275) (435,906)
Financing activities    
Borrowings under credit facility 343,000 279,000
Repayments under credit facility (428,000) (279,000)
Borrowings under unsecured notes and term loans payable 600,000  
Repayments under unsecured notes and term loans payable   100,000
Borrowings under non-recourse debt obligations of consolidated special purpose entities   514,785
Repayments under non-recourse debt obligations of consolidated special purpose entities (176,214) (116,447)
Financing costs paid (3,024) (10,755)
Proceeds from the issuance of common stock 252,873 172,372
Stock issuance costs paid (3,268) (2,931)
Shares repurchased under stock compensation plans (6,271) (9,345)
Dividends paid (214,331) (195,396)
Net cash provided by financing activities 364,765 252,283
Net (decrease) increase in cash, cash equivalents and restricted cash (37,645) 81,669
Cash, cash equivalents and restricted cash, beginning of period 70,049 176,576
Cash, cash equivalents and restricted cash, end of period 32,404 258,245
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 30,855 168,567
Restricted cash included in other assets 1,549 89,678
Total cash, cash equivalents and restricted cash 32,404 258,245
Supplemental disclosure of noncash investing and financing activities:    
Accrued tenant improvements included in real estate investments 17,593 15,484
Acquisition of real estate assets from borrowers under loans and financing receivables 8,945 35,384
Accrued financing and stock issuance costs 66 209
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest, net of amounts capitalized 83,631 79,088
Cash paid during the period for income and franchise taxes $ 2,183 $ 1,859
v3.22.2
Organization
 6 Months Ended
Jun. 30, 2022
Organization  
Organization

1. Organization

STORE Capital Corporation (STORE Capital or the Company) was incorporated under the laws of Maryland on May 17, 2011 to acquire single-tenant operational real estate to be leased on a long-term, net basis to companies that operate across a wide variety of industries within the service, retail and manufacturing sectors of the United States economy. From time to time, it also provides mortgage financing to its customers.

On November 21, 2014, the Company completed the initial public offering of its common stock. The shares began trading on the New York Stock Exchange on November 18, 2014 under the ticker symbol “STOR”.

STORE Capital has made an election to qualify, and believes it is operating in a manner to continue to qualify, as a real estate investment trust (REIT) for federal income tax purposes beginning with its initial taxable year ended December 31, 2011. As a REIT, it will generally not be subject to federal income taxes to the extent that it distributes all of its taxable income to its stockholders and meets other specific requirements.
v3.22.2
Summary of Significant Accounting Principles
 6 Months Ended
Jun. 30, 2022
Summary of Significant Accounting Principles  
Summary of Significant Accounting Principles

2. Summary of Significant Accounting Principles

Basis of Accounting and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of interim periods are not necessarily indicative of the results for the entire year. Certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted from these statements and, accordingly, these statements should be read in conjunction with the Company’s audited consolidated financial statements as filed with the SEC in its Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

These condensed consolidated statements include the accounts of STORE Capital and its subsidiaries, which are wholly owned and controlled by the Company through its voting interest. One of the Company’s wholly owned subsidiaries, STORE Capital Advisors, LLC, provides all of the general and administrative services for the day-to-day operations of the consolidated group, including property acquisition and lease origination, real estate portfolio management and marketing, accounting and treasury services. The remaining subsidiaries were formed to acquire and hold real estate investments or to facilitate non-recourse secured borrowing activities. Generally, the initial operations of the real estate subsidiaries are funded by an interest-bearing intercompany loan from STORE Capital, and such intercompany loan is repaid when the subsidiary issues long-term debt secured by its properties. All intercompany account balances and transactions have been eliminated in consolidation.

Certain of the Company’s wholly owned consolidated subsidiaries were formed as special purpose entities. Each special purpose entity is a separate legal entity and is the sole owner of its assets and liabilities. The assets of the special purpose entities are not available to pay or otherwise satisfy obligations to the creditors of any owner or affiliate of the special purpose entity. At June 30, 2022 and December 31, 2021, these special purpose entities held assets totaling $9.1 billion and $8.5 billion, respectively, and had third-party liabilities totaling $2.4 billion and $2.6 billion, respectively. These assets and liabilities are included in the accompanying condensed consolidated balance sheets.

​

Use of Estimates

​

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Although management believes its estimates are reasonable, actual results could differ from those estimates.

​

Segment Reporting

​

The Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) Topic 280, Segment Reporting, established standards for the manner in which enterprises report information about operating segments. The Company views its operations as one reportable segment.

​

Investment Portfolio

STORE Capital invests in real estate assets through three primary transaction types as summarized below. At the beginning of 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) (ASC Topic 842) which had an impact on certain accounting related to the Company’s investment portfolio.

●Real Estate Investments – investments are generally made through sale-leaseback transactions in which the Company acquires the real estate from the owner-operators and then leases the real estate back to them through long-term leases which are generally classified as operating leases; the operators become the Company’s long-term tenants (its customers). Certain of the lease contracts that are associated with a sale-leaseback transaction may contain terms, such as a tenant purchase option, which results in the transaction being accounted for as a financing arrangement, due to the adoption of ASC Topic 842, rather than as an investment in real estate subject to an operating lease.
●Mortgage Loans Receivable – investments are made by issuing mortgage loans to the owner-operators of the real estate that serve as the collateral for the loans and the operators become long-term borrowers and customers of the Company. On occasion, the Company may also make other types of loans to its customers, such as equipment loans.
●Hybrid Real Estate Investments – investments are made through modified sale-leaseback transactions, where the Company acquires land from the owner-operators, leases the land back through long-term leases and simultaneously issues mortgage loans to the operators secured by the buildings and improvements on the land. Prior to 2019, these hybrid real estate investment transactions were generally accounted for as direct financing leases. Subsequent to the adoption of ASC Topic 842, new or modified hybrid real estate investment transactions are generally accounted for as operating leases of the land and mortgage loans on the buildings and improvements.

Impact of the COVID-19 Pandemic

Since the beginning of the novel coronavirus (COVID-19) pandemic in early 2020, the Company has provided to certain tenants rent deferral arrangements in the form of both short-term notes and lease modifications. The FASB provided accounting relief under which concessions provided to tenants in direct response to the COVID-19 pandemic are not required to be evaluated or accounted for as lease modifications in accordance with ASC Topic 842. The Company elected to apply this accounting relief to the rent deferral arrangements it has entered into with its tenants, which primarily affected the timing (but not the amount) of lease and loan payments due to the Company under its contracts; net revenue recognized under these deferral arrangements results in a corresponding increase in receivables that are included in other assets, net on the condensed consolidated balance sheets. For the three and six months ended June 30, 2022, the Company recognized an additional $0.3 million and $1.0 million, respectively, of net revenue and collected $3.8 million and $7.2 million, respectively, of the receivables associated with these deferral arrangements. During the three and six months ended June 30, 2021, the Company recognized $2.9 million and $4.9 million,

respectively, of net revenue and collected $5.4 million and $11.3 million, respectively, in repayments of amounts deferred.

Accounting for Real Estate Investments

Classification and Cost

STORE Capital records the acquisition of real estate properties at cost, including acquisition and closing costs. The Company allocates the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Intangible assets and liabilities acquired may include the value of existing in-place leases, above-market or below-market lease value of in-place leases and ground lease-related intangibles, as applicable. Management uses multiple sources to estimate fair value, including independent appraisals and information obtained about each property as a result of its pre-acquisition due diligence and its marketing and leasing activities. Certain of the Company’s lease contracts allow its tenants the option, at their election, to purchase the leased property from the Company at a specified time or times (generally at the greater of the then-fair market value or the Company’s cost, as defined in the lease contracts). Subsequent to the adoption of ASC Topic 842, for real estate assets acquired through a sale-leaseback transaction and subject to a lease contract which contains a purchase option, the Company accounts for such an acquisition as a financing arrangement and records the investment in loans and financing receivables on the condensed consolidated balance sheet; should the purchase option later expire or be removed from the lease contract, the Company would derecognize the asset accounted for as a financing arrangement and recognize the transferred leased asset in real estate investments.

In-place lease intangibles are valued based on management’s estimates of lost rent and carrying costs during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases. In estimating lost rent and carrying costs, management considers market rents, real estate taxes, insurance, costs to execute similar leases (including leasing commissions) and other related costs. The value assigned to in-place leases is amortized on a straight-line basis as a component of depreciation and amortization expense typically over the remaining term of the related leases.

The fair value of any above-market or below-market lease is estimated based on the present value of the difference between the contractual amounts to be paid pursuant to the in-place lease and management’s estimate of current market lease rates for the property, measured over a period equal to the remaining term of the lease. Capitalized above-market lease intangibles are amortized over the remaining term of the respective leases as a decrease to rental revenue. Below-market lease intangibles are amortized as an increase in rental revenue over the remaining term of the respective leases plus the fixed-rate renewal periods on those leases, if any. Should a lease terminate early, the unamortized portion of any related lease intangible is immediately recognized in operations.

The Company’s real estate portfolio is depreciated using the straight-line method over the estimated remaining useful life of the properties, which generally ranges from 30 to 40 years for buildings and is generally 15 years for land improvements. Properties classified as held for sale are recorded at the lower of their carrying value or their fair value, less anticipated selling costs. Any properties classified as held for sale are not depreciated.

Revenue Recognition

STORE Capital leases real estate to its tenants under long-term net leases that are predominantly classified as operating leases. The Company’s leases generally provide for rent escalations throughout the lease terms. For leases that provide for specific contractual escalations, rental revenue is recognized on a straight-line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, straight-line operating lease receivables, calculated as the aggregate difference between the rental revenue recognized on a straight-line basis and scheduled rents, represent unbilled rent receivables that the Company will receive only if the tenants make all rent payments required through the expiration of the leases; these receivables are included in other assets, net on the condensed consolidated balance sheets. The Company reviews its straight-line operating lease receivables for collectibility on a contract by contract basis and any amounts not considered substantially collectible are written off against rental revenues. As of June 30, 2022 and December 31, 2021, the Company had $42.9 million and $39.4 million, respectively, of straight-line operating lease

receivables. Leases that have contingent rent escalators indexed to future increases in the Consumer Price Index (CPI) may adjust over a one-year period or over multiple-year periods. Generally, these escalators increase rent at the lesser of (a) 1 to 1.25 times the increase in the CPI over a specified period or (b) a fixed percentage. Because of the volatility and uncertainty with respect to future changes in the CPI, the Company’s inability to determine the extent to which any specific future change in the CPI is probable at each rent adjustment date during the entire term of these leases and the Company’s view that the multiplier does not represent a significant leverage factor, increases in rental revenue from leases with this type of escalator are recognized only after the changes in the rental rates have actually occurred.

In addition to base rental revenue, certain leases also have contingent rentals that are based on a percentage of the tenant’s gross sales; the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached. Approximately 3.7% of the Company’s investment portfolio is subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales; historically, contingent rent recognized has been less than 2.0% of rental revenues.

The Company reviews its operating lease receivables for collectibility on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that the collectibility of lease payments with respect to any tenant is not probable, a direct write-off of the receivable is made and any future rental revenue is recognized only when the tenant makes a rental payment or when collectibility is again deemed probable.

Direct costs incremental to successful lease origination, offset by any lease origination fees received, are deferred and amortized over the related lease term as an adjustment to rental revenue. The Company periodically commits to fund the construction of new properties for its customers; rental revenue collected during the construction period is deferred and amortized over the remaining lease term when the construction project is complete. Substantially all of the Company’s leases are triple net, which means that the lessees are directly responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance. For a few lease contracts, the Company collects property taxes from its customers and remits those taxes to governmental authorities. Subsequent to the adoption of ASC Topic 842, these property tax payments are presented on a gross basis as part of both rental revenues and property costs in the condensed consolidated statements of income.

Impairment

STORE Capital reviews its real estate investments and related lease intangibles periodically for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations. Such events or changes in circumstances may include an expectation to sell certain assets in accordance with the Company’s long-term strategic plans. Management considers factors such as expected future undiscounted cash flows, capitalization and discount rates, terminal value, tenant improvements, market trends (such as the effects of leasing demand and competition) and other factors including bona fide purchase offers received from third parties in making this assessment. These factors are classified as Level 3 inputs within the fair value hierarchy, discussed in Fair Value Measurement below. If an asset is determined to be impaired, the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results.

During the three and six months ended June 30, 2022, the Company recognized aggregate provisions for the impairment of real estate of $5.3 million and $6.5 million, respectively. For the assets impaired in 2022, the estimated aggregate fair value of the impaired real estate assets at the time of impairment was $36.6 million. The Company recognized an aggregate provision for the impairment of real estate of $6.6 million and $12.0 million during the three and six months ended June 30, 2021, respectively.

Accounting for Loans and Financing Receivables

Loans Receivable – Classification, Cost and Revenue Recognition

STORE Capital holds its loans receivable, which are primarily mortgage loans secured by real estate, for long-term investment. Loans receivable are carried at amortized cost including related unamortized discounts or premiums, if any.

The Company recognizes interest income on loans receivable using the effective-interest method applied on a loan-by-loan basis. Direct costs associated with originating loans are offset against any related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective-interest method. A loan receivable is placed on nonaccrual status when the loan has become more than 60 days past due, or earlier if management determines that full recovery of the contractually specified payments of principal and interest is doubtful. While on nonaccrual status, interest income is recognized only when received. As of June 30, 2022 and December 31, 2021, the Company had loans receivable with an aggregate outstanding principal balance of $22.1 million and $28.8 million, respectively, on nonaccrual status.

Direct Financing Receivables – Classification, Cost and Revenue Recognition

Direct financing receivables include hybrid real estate investment transactions completed prior to 2019. The Company recorded the direct financing receivables at their net investment, determined as the aggregate minimum lease payments and the estimated residual value of the leased property less unearned income. The unearned income is recognized over the life of the related contracts so as to produce a constant rate of return on the net investment in the asset. Subsequent to the adoption of ASC Topic 842, existing direct financing receivables will continue to be accounted for in the same manner, unless the underlying contracts are modified.

Impairment and Provision for Credit Losses

The Company accounts for provision of credit losses in accordance with ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC Topic 326). In accordance with ASC Topic 326, the Company evaluates the collectibility of its loans and financing receivables at the time each financing receivable is issued and subsequently on a quarterly basis utilizing an expected credit loss model based on credit quality indicators. The primary credit quality indicator is the implied credit rating associated with each borrower, utilizing two categories, investment grade and non-investment grade. The Company computes implied credit ratings based on regularly received borrower financial statements using Moody’s Analytics RiskCalc. The Company considers the implied credit ratings, loan and financing receivable term to maturity and underlying collateral value and quality, if any, to calculate the expected credit loss over the remaining life of the receivable. Loans are written off against the allowance for credit loss when all or a portion of the principal amount is determined to be uncollectible. For the six months ended June 30, 2022, the Company recognized an estimated $0.3 million net reduction of prior provisions for credit losses related to its loans and financing receivables; the reduction of the provision for credit losses is included in provisions for impairment on the condensed consolidated statements of income. During the three and six months ended June 30, 2022, the Company wrote off $3.7 million of loans receivable against previously established reserves for credit losses. For the six months ended June 30, 2021, the Company recognized an estimated $2.0 million of provisions for credit losses.

Accounting for Operating Ground Lease Assets

As part of certain real estate investment transactions, the Company may enter into long-term operating ground leases as a lessee. The Company is required to recognize an operating ground lease (or right-of-use) asset and related operating lease liability for each of these operating ground leases. Operating ground lease assets and operating lease liabilities are recognized based on the present value of the lease payments. The Company uses its estimated incremental borrowing rate, which is the estimated rate at which the Company could borrow on a collateralized basis with similar payments over a similar term, in determining the present value of the lease payments.

Many of these operating lease contracts include options for the Company to extend the lease; the option periods are included in the minimum lease term only if it is reasonably likely the Company will exercise the option(s). Rental

expense for the operating ground lease contracts is recognized in property costs on a straight-line basis over the lease term. Some of the contracts have contingent rent escalators indexed to future increases in the CPI and a few contracts have contingent rentals that are based on a percentage of the gross sales of the property; these payments are recognized in expense as incurred. The payment obligations under these contracts are typically the responsibility of the tenants operating on the properties, in accordance with the Company’s leases with the respective tenants. As a result, the Company also recognizes sublease rental revenue on a straight-line basis over the term of the Company’s sublease with the tenant; the sublease income is included in rental revenues.

Cash and Cash Equivalents

​

Cash and cash equivalents include cash and highly liquid investment securities with maturities at acquisition of three months or less. The Company invests cash primarily in money-market funds of a major financial institution, consisting predominantly of U.S. Government obligations.

​

Restricted Cash

​

Restricted cash may include reserve account deposits held by lenders, including deposits required to be used for future investment in real estate assets, escrow deposits and cash proceeds from the sale of assets held by a qualified intermediary to facilitate tax-deferred exchange transactions under Section 1031 of the Internal Revenue Code. The Company had $1.5 million and $5.8 million of restricted cash at June 30, 2022 and December 31, 2021, respectively, which are included in other assets, net, on the condensed consolidated balance sheets.

​

Deferred Costs

​

Financing costs related to the issuance of the Company’s long-term debt are deferred and amortized as an increase to interest expense over the term of the related debt instrument using the effective-interest method and are reported as a reduction of the related debt balance on the condensed consolidated balance sheets. Deferred financing costs related to the establishment of the Company's credit facility are deferred and amortized to interest expense over the term of the credit facility and are included in other assets, net, on the condensed consolidated balance sheets.

​

Derivative Instruments and Hedging Activities

The Company may enter into derivative contracts as part of its overall financing strategy to manage the Company’s exposure to changes in interest rates associated with current and/or future debt issuances. The Company does not use derivatives for trading or speculative purposes. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company enters into derivative financial instruments only with counterparties with high credit ratings and with major financial institutions with which the Company may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations.

The Company records its derivatives on the balance sheet at fair value. All derivatives subject to a master netting arrangement in accordance with the associated master International Swap and Derivatives Association agreement have been presented on a net basis by counterparty portfolio for purposes of balance sheet presentation and related disclosures. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss). Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedges are reclassified to operations as an adjustment to interest expense as interest payments are made on the hedged debt transaction.

As of June 30, 2022, the Company had seven interest rate swap agreements in place. One of the interest rate swap agreements has a notional amount of $200.0 million and was designated as a cash flow hedge of the Company's $200.0 million floating-rate bank term loan due in April 2029. The remaining six interest rate swap agreements have an aggregate notional amount of $400.0 million and were designated as cash flow hedges of the Company's $400.0 million floating-rate bank term loan due in April 2027 (Note 4).

Fair Value Measurement

The Company estimates the fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

●Level 1—Quoted market prices in active markets for identical assets and liabilities that the Company has the ability to access.
●Level 2—Significant inputs that are observable, either directly or indirectly. These types of inputs would include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets in inactive markets and market-corroborated inputs.
●Level 3—Inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. These types of inputs include the Company’s own assumptions.

Share-based Compensation

Directors and employees of the Company have been granted long-term incentive awards, including restricted stock awards (RSAs) and restricted stock unit awards (RSUs), which provide such directors and employees with equity interests as an incentive to remain in the Company’s service and to align their interests with those of the Company’s stockholders.

The Company estimates the fair value of RSAs based on the closing price per share of the common stock on the date of grant and recognizes that amount in general and administrative expense ratably over the vesting period at the greater of the amount amortized on a straight-line basis or the amount vested. During the six months ended June 30, 2022, the Company granted RSAs representing 233,147 shares of restricted common stock to its directors and employees. During the same period, RSAs representing 166,770 shares of restricted stock vested and RSAs representing 53,092 shares were forfeited. In connection with the vesting of RSAs, the Company repurchased 82,321 shares as a result of participant elections to surrender common shares to the Company to satisfy statutory tax withholding obligations under the Company’s equity-based compensation plans. As of June 30, 2022, the Company had 450,709 shares of restricted common stock outstanding.

The Company’s RSUs granted in 2019 through 2022 contain both a market condition and a performance condition as well as a service condition. The Company values the RSUs with a market condition using a Monte Carlo simulation model and values the RSUs with a performance condition based on the fair value of the awards expected to be earned and recognizes those amounts in general and administrative expense on a tranche-by-tranche basis ratably over the vesting periods. During the six months ended June 30, 2022, the Company awarded 629,307 RSUs to its executive officers. In connection with the vesting of 297,605 RSUs, the Company repurchased 120,475 shares during the six months ended June 30, 2022 as a result of participant elections to surrender common shares to the Company to satisfy statutory tax withholding obligations under the Company’s equity-based compensation plan. As of June 30, 2022, there were 1,635,061 RSUs outstanding.

Income Taxes

As a REIT, the Company generally will not be subject to federal income tax. It is still subject, however, to state and local income taxes and to federal income and excise tax on its undistributed income. STORE Investment Corporation is the Company’s wholly owned taxable REIT subsidiary (TRS) created to engage in non-qualifying REIT activities. The TRS is subject to federal, state and local income taxes.

Management of the Company determines whether any tax positions taken or expected to be taken meet the “more-likely-than-not” threshold of being sustained by the applicable federal, state or local tax authority. Certain state tax returns filed for 2017 and tax returns filed for 2018 through 2021 are subject to examination by these jurisdictions. As of June 30, 2022, management concluded that there is no tax liability relating to uncertain income tax positions. The Company’s policy is to recognize interest related to any underpayment of income taxes as interest expense and to recognize any penalties as general and administrative expense. There was no accrual for interest or penalties at June 30, 2022 or December 31, 2021.

​

Net Income Per Common Share

Net income per common share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the Company’s unvested restricted common shares, which contain rights to receive non-forfeitable dividends, as participating securities requiring the two-class method of computing net income per common share. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per common share (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30,

​

Six Months Ended June 30,

 

​

​

2022

​

2021

​

2022

​

2021

 

Numerator:

    

​

    

    

​

    

    

​

    

    

​

    

​

Net income

​

$

90,505

​

$

62,431

​

$

177,527

​

$

117,391

​

Less: Earnings attributable to unvested restricted shares

​

 

(147)

​

 

(213)

​

 

(249)

​

 

(440)

​

Net income used in basic and diluted income per share

​

$

90,358

​

$

62,218

​

$

177,278

​

$

116,951

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average common shares outstanding

​

 

281,296,858

​

 

270,909,151

​

 

278,396,475

​

 

268,961,123

​

Less: Weighted average number of shares of unvested restricted stock

​

 

(457,466)

​

 

(615,596)

​

​

(459,021)

​

 

(620,149)

​

Weighted average shares outstanding used in basic income per share

​

 

280,839,392

​

 

270,293,555

​

 

277,937,454

​

 

268,340,974

​

Effects of dilutive securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

Add: Treasury stock method impact of potentially dilutive securities (a)

​

 

—

​

 

—

​

 

—

​

 

—

​

Weighted average shares outstanding used in diluted income per share

​

 

280,839,392

​

 

270,293,555

​

 

277,937,454

​

 

268,340,974

​

(a)For the three months ended June 30, 2022 and 2021, excludes 58,294 shares and 208,824 shares, respectively, and for the six months ended June 30, 2022 and 2021, excludes 108,048 shares and 229,285 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.

​

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or the SEC. The Company adopts the new pronouncements as of the specified effective date. When permitted, the Company may elect to early adopt the new pronouncements. Unless otherwise discussed, these new accounting pronouncements include technical corrections to existing guidance or introduce new guidance related to specialized industries or entities and, therefore, will have minimal, if any, impact on the Company’s financial position, results of operations or cash flows upon adoption.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
v3.22.2
Investments
 6 Months Ended
Jun. 30, 2022
Investments.  
Investments

3. Investments

​

At June 30, 2022, STORE Capital had investments in 3,012 property locations representing 2,960 owned properties (of which 90 are accounted for as financing arrangements and 22 are accounted for as direct financing receivables), 24 properties where all the related land is subject to an operating ground lease and 28 properties which secure mortgage loans. The gross investment portfolio totaled $11.47 billion at June 30, 2022 and consisted of the gross acquisition cost of the real estate investments totaling $10.7 billion, loans and financing receivables with an aggregate carrying amount of $710.2 million and operating ground lease assets totaling $32.6 million. As of June 30, 2022, approximately 34% of these investments are assets of consolidated special purpose entity subsidiaries and are pledged as collateral under the non-recourse obligations of these special purpose entities (Note 4).

The gross dollar amount of the Company’s investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and financing receivables and operating ground lease assets. During the six months ended June 30, 2022, the Company had the following gross real estate and other investment activity (dollars in thousands):

​

​

​

​

​

​

​

​

​

    

Number of

    

Dollar

 

​

​

Investment

​

Amount of

 

​

​

Locations

​

Investments

 

Gross investments, December 31, 2021

 

2,866

​

$

10,748,937

​

Acquisition of and additions to real estate (a) (b)

 

156

​

​

842,044

​

Investment in loans and financing receivables

 

17

​

​

62,369

​

Sales of real estate

 

(24)

​

​

(107,764)

​

Principal collections on loans and financing receivables (b)

​

(3)

​

​

(58,913)

​

Net change in operating ground lease assets (c)

​

​

​

​

(717)

​

Provisions for impairment

​

​

​

​

(6,212)

​

Other

​

​

​

​

(7,521)

​

Gross investments, June 30, 2022 (d)

​

​

​

 

11,472,223

​

Less accumulated depreciation and amortization (d)

​

​

​

 

(1,292,202)

​

Net investments, June 30, 2022

 

3,012

​

$

10,180,021

​

(a)Excludes $19.1 million of tenant improvement advances disbursed in 2022 which were accrued as of December 31, 2021.
(b)Includes $8.9 million relating to a mortgage loan receivable which was repaid in full through a non-cash transaction in which the Company acquired the underlying collateral property (buildings and improvements) and leased them back to a customer.
(c)Represents amortization recognized on operating ground lease assets during the six months ended June 30, 2022.
(d)Includes the dollar amount of investments ($25.5 million) and the accumulated depreciation ($2.3 million) related to real estate investments held for sale at June 30, 2022.

The following table summarizes the revenues the Company recognized from its investment portfolio (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30,

​

Six Months Ended June 30,

 

​

    

2022

    

2021

    

2022

    

2021

 

Rental revenues:

​

​

    

    

​

    

​

​

    

    

​

    

​

Operating leases (a)(c)

​

$

209,882

​

$

180,004

​

$

411,774

​

$

349,320

​

Sublease income - operating ground leases (b)

​

​

703

​

​

702

​

​

1,406

​

​

1,405

​

Amortization of lease related intangibles and costs

​

 

(591)

​

 

(542)

​

 

(1,125)

​

 

(1,233)

​

Total rental revenues

​

$

209,994

​

$

180,164

​

$

412,055

​

$

349,492

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income on loans and financing receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage and other loans receivable (c)

​

$

5,877

​

$

5,191

​

$

13,756

​

$

11,120

​

Sale-leaseback transactions accounted for as financing arrangements

​

 

5,686

​

 

4,464

​

 

11,013

​

 

8,560

​

Direct financing receivables

​

 

1,476

​

 

2,005

​

 

3,200

​

 

4,543

​

Total interest income on loans and financing receivables

​

$

13,039

​

$

11,660

​

$

27,969

​

$

24,223

​

(a)For the three months ended June 30, 2022 and 2021, includes $711,000 and $624,000, respectively, of property tax tenant reimbursement revenue and includes $0.3 million and $3.1 million, respectively, of variable lease revenue. For the six months ended June 30, 2022 and 2021, includes $1.4 million and $1.2 million, respectively, of property tax reimbursement revenue and includes $0.8 million and $6.2 million, respectively, of variable lease revenue.
(b)Represents total revenue recognized for the sublease of properties subject to operating ground leases to the related tenants; includes both payments made by the tenants to the ground lessors and straight-line revenue recognized for scheduled increases in the sublease rental payments.
(c)For the three and six months ended June 30, 2022, includes $0.3 million and $1.0 million, respectively, of revenue that has been recognized related to rent and financing relief arrangements granted as a result of the COVID-19 pandemic with a corresponding increase in receivables which are included in other assets, net on the condensed consolidated balance sheets. For the three and six months ended June 30, 2021, includes $2.9 million and $4.9 million, respectively, of revenue related to COVID-19 rent and financing relief arrangements.

The Company has elected to account for the lease and nonlease components in its lease contracts as a single component if the timing and pattern of transfer for the separate components are the same and, if accounted for separately, the lease component would classify as an operating lease.

Significant Credit and Revenue Concentration

STORE Capital’s real estate investments are leased or financed to 579 customers geographically dispersed throughout 49 states. Only one state, Texas (11%), accounted for 10% or more of the total dollar amount of STORE Capital’s investment portfolio at June 30, 2022. None of the Company’s customers represented more than 10% of the Company’s real estate investment portfolio at June 30, 2022, with the largest customer representing 2.8% of the total investment portfolio. On an annualized basis, as of June 30, 2022, the largest customer also represented 2.9% of the Company’s total investment portfolio revenues and the Company’s customers operated their businesses across approximately 910 concepts; the largest of these concepts represented 2.1% of the Company’s total investment portfolio revenues.

The following table shows information regarding the diversification of the Company’s total investment portfolio among the different industries in which its tenants and borrowers operate as of June 30, 2022 (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Percentage of

 

​

​

Number of

​

Dollar

​

Total Dollar

 

​

​

Investment

​

Amount of

​

Amount of

 

​

​

Locations

​

Investments

​

Investments

 

Restaurants

 

759

​

$

1,330,875

 

12

% 

Automotive repair and maintenance

 

253

​

​

674,775

 

6

​

Early childhood education centers

 

279

​

​

657,557

 

6

​

Metal fabrication

 

114

​

​

652,881

 

6

​

Health clubs

 

94

​

​

599,714

 

5

​

Furniture stores

​

65

​

​

425,003

​

4

​

Farm and ranch supply stores

 

41

​

​

377,293

 

3

​

All other service industries

 

1,038

​

​

3,956,364

 

34

​

All other retail industries

 

154

​

​

1,137,374

 

10

​

All other manufacturing industries

 

215

​

​

1,660,387

 

14

​

Total (a)

 

3,012

​

$

11,472,223

 

100

% 

(a)Includes the dollar amount of investments ($25.5 million) related to real estate investments held for sale at June 30, 2022.

​

Real Estate Investments

The weighted average remaining noncancelable lease term of the Company’s operating leases with its tenants at June 30, 2022 was approximately 13.2 years. Substantially all the leases are triple net, which means that the lessees are responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance; therefore, the Company is generally not responsible for repairs or other capital expenditures related to the properties while the triple-net leases are in effect. At June 30, 2022, 16 of the Company’s properties were vacant and not subject to a lease.

Scheduled future minimum rentals to be received under the remaining noncancelable term of the operating leases in place as of June 30, 2022, are as follows (in thousands):

​

​

​

​

​

Remainder of 2022

​

$

428,853

​

2023

​

​

858,487

​

2024

​

 

851,339

​

2025

​

 

847,880

​

2026

​

 

841,577

​

2027

​

​

829,838

​

Thereafter

​

 

6,714,451

​

Total future minimum rentals (a)

​

$

11,372,425

​

(a)Excludes future minimum rentals to be received under lease contracts associated with sale-leaseback transactions accounted for as financing arrangements. See Loans and Financing Receivables section below.

Substantially all the Company’s leases include one or more renewal options (generally two to four five-year options). Since lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum lease payments due during the initial lease term only. In addition, the future minimum lease payments presented above do not include any contingent rentals such as lease escalations based on future changes in CPI.

Intangible Lease Assets

The following details intangible lease assets and related accumulated amortization (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30,

    

December 31,

 

​

​

2022

​

2021

​

In-place leases

​

$

42,683

​

$

35,522

​

Ground lease-related intangibles

​

 

19,449

​

 

19,449

​

Total intangible lease assets

​

 

62,132

​

 

54,971

​

Accumulated amortization

​

 

(25,531)

​

 

(25,285)

​

Net intangible lease assets

​

$

36,601

​

$

29,686

​

​

Aggregate lease intangible amortization included in expense was $0.9 million during both the three months ended June 30, 2022 and 2021, and $1.8 million during both the six months ended June 30, 2022 and 2021. The amount amortized as a decrease to rental revenue for capitalized above-market lease intangibles was $0.2 million during the six months ended June 30, 2021.

Based on the balance of the intangible assets at June 30, 2022, the aggregate amortization expense is expected to be $1.9 million for the remainder of 2022, $3.5 million in 2023, $3.0 million in 2024, $2.5 million in 2025, $2.3 million in 2026 and $2.2 million in 2027. The weighted average remaining amortization period is approximately 10 years for the in-place lease intangibles and approximately 42 years for the amortizing ground lease-related intangibles.

Operating Ground Lease Assets

As of June 30, 2022, STORE Capital had operating ground lease assets aggregating $32.6 million. Typically, the lease payment obligations for these leases are the responsibility of the tenants operating on the properties, in accordance with the Company’s leases with those respective tenants. The Company recognized total lease cost for these operating ground lease assets of $821,000 and $827,000 during the three months ended June 30, 2022 and 2021, respectively, and $1.6 million during both the six months ended June 30, 2022 and 2021. The Company also recognized, in rental revenues, sublease revenue associated with its operating ground leases of $703,000 and $702,000 for the three months ended June 30, 2022 and 2021, respectively, and $1.4 million for both the six months ended June 30, 2022 and 2021.

The future minimum lease payments to be paid under the operating ground leases as of June 30, 2022 were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

Ground

    

​

​

 

​

​

Ground

​

Leases

​

​

​

​

​

​

Leases

​

Paid by

​

​

​

​

​

​

Paid by

​

STORE Capital's

​

​

​

​

​

​

STORE Capital

​

Tenants (a)

​

Total

 

Remainder of 2022

​

$

200

​

$

1,569

​

$

1,769

​

2023

​

​

4,149

​

​

2,629

​

​

6,778

​

2024

​

 

55

​

 

2,711

​

 

2,766

​

2025

​

 

57

​

 

2,395

​

 

2,452

​

2026

​

 

57

​

 

2,233

​

 

2,290

​

2027

​

​

57

​

​

2,227

​

​

2,284

​

Thereafter

​

 

3,014

​

 

42,282

​

 

45,296

​

Total lease payments

​

​

7,589

​

​

56,046

​

​

63,635

​

Less imputed interest

​

 

(2,790)

​

 

(27,498)

​

 

(30,288)

​

Total operating lease liabilities - ground leases

​

$

4,799

​

$

28,548

​

$

33,347

​

(a)STORE Capital’s tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event the tenant fails to make the required ground lease payments, the Company would be primarily responsible for the payment, assuming the Company does not re-tenant the property or sell the leasehold interest. Of the total $56.0 million commitment, $19.0 million is due for periods beyond the current term of the Company’s leases with the tenants. Amounts exclude contingent rent due under three leases where the ground lease payment, or a portion thereof, is based on the level of the tenant’s sales.

Loans and Financing Receivables

The Company’s loans and financing receivables are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest

​

Maturity

​

June 30,

​

December 31,

 

Type

​

Rate (a)

​

Date

​

2022

​

2021

 

Six mortgage loans receivable

​

7.98

%  

​

2022 - 2026

​

$

114,171

​

$

114,911

​

Three mortgage loans receivable

 

8.83

%  

​

2032 - 2036

​

 

11,674

​

 

14,444

​

Fourteen mortgage loans receivable (b)

 

8.51

%  

​

2051 - 2062

​

 

193,008

​

 

216,547

​

Total mortgage loans receivable

​

​

​

​

​

​

 

318,853

​

 

345,902

​

Equipment and other loans receivable

​

7.34

%  

​

2022 - 2036

​

​

18,386

​

​

25,409

​

Total principal amount outstanding—loans receivable

​

​

​

​

​

​

 

337,239

​

 

371,311

​

Unamortized loan origination costs

​

​

​

​

​

​

 

963

​

 

1,046

​

Sale-leaseback transactions accounted for as financing arrangements (c)

​

7.51

%  

​

2034 - 2043

​

​

316,180

​

​

255,483

​

Direct financing receivables

​

​

​

​

​

​

 

61,063

​

 

78,637

​

Allowance for credit and loan losses (d)

​

​

​

​

​

​

​

(5,259)

​

​

(9,208)

​

Total loans and financing receivables

​

​

​

​

​

​

$

710,186

​

$

697,269

​

(a)Represents the weighted average interest rate as of the balance sheet date.
(b)Four of these mortgage loans allow for prepayment in whole, but not in part, with penalties ranging from 20% to 70% depending on the timing of the prepayment.
(c)In accordance with ASC Topic 842, represents sale-leaseback transactions accounted for as financing arrangements rather than as investments in real estate subject to operating leases. Interest rate shown is the weighted average initial rental or capitalization rate on the leases; the leases mature between 2034 and 2043 and the purchase options expire between 2024 and 2042.
(d)Balance includes $2.5 million of loan loss reserves recognized prior to December 31, 2019, $2.5 million credit loss reserves recognized upon the adoption of ASC Topic 326 on January 1, 2020 and an aggregate $3.9 million of credit losses recognized since the adoption of ASC Topic 326 net of $3.7 million of loans that were written-off against previously established reserves.

Loans Receivable

At June 30, 2022, the Company held 41 loans receivable with an aggregate carrying amount of $334.3 million. Twenty-three of the loans are mortgage loans secured by land and/or buildings and improvements on the mortgaged property; the interest rates on ten of the mortgage loans are subject to increases over the term of the loans. Six of the mortgage loans are shorter-term loans (maturing prior to 2027) that generally require monthly interest-only payments with a balloon payment at maturity. The remaining mortgage loans receivable generally require the borrowers to make monthly principal and interest payments based on a 40-year amortization period with balloon payments, if any, at maturity or earlier upon the occurrence of certain other events. The equipment and other loans generally require the borrower to make monthly interest-only payments with a balloon payment at maturity.

​

The long-term mortgage loans receivable generally allow for prepayments in whole, but not in part, without penalty or with penalties ranging from 1% to 20%, depending on the timing of the prepayment, except as noted in the table above. All other loans receivable allow for prepayments in whole or in part without penalty. Absent prepayments, scheduled maturities are expected to be as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Scheduled

    

​

    

​

 

​

​

Principal

​

Balloon

​

Total

​

​

​

Payments

​

Payments

​

Payments

 

Remainder of 2022

​

$

1,524

​

$

25,292

​

$

26,816

​

2023

​

​

3,221

​

​

78,479

​

​

81,700

​

2024

​

 

2,121

​

 

—

​

 

2,121

​

2025

​

 

1,916

​

 

—

​

 

1,916

​

2026

​

 

1,877

​

 

20,371

​

 

22,248

​

2027

​

​

1,576

​

​

548

​

​

2,124

​

Thereafter

​

 

182,139

​

 

18,175

​

 

200,314

​

Total principal payments

​

$

194,374

​

$

142,865

​

$

337,239

​

​

Sale-Leaseback Transactions Accounted for as Financing Arrangements

As of June 30, 2022 and December 31, 2021, the Company had $316.2 million and $255.5 million, respectively, of investments acquired through sale-leaseback transactions accounted for as financing arrangements rather than as investments in real estate subject to an operating lease; revenue from these arrangements is recognized in interest income rather than as rental revenue. The scheduled future minimum rentals to be received under these agreements (which will be reflected in interest income) as of June 30, 2022, were as follows (in thousands):

​

​

​

​

​

​

Remainder of 2022

​

$

12,114

​

2023

​

​

24,289

​

2024

​

 

24,436

​

2025

​

 

24,589

​

2026

​

 

24,697

​

2027

​

​

24,812

​

Thereafter

​

 

295,257

​

Total future scheduled payments

​

$

430,194

​

​

Direct Financing Receivables

As of both June 30, 2022 and December 31, 2021, the Company had $61.1 million and $78.6 million, respectively, of investments accounted for as direct financing leases under previous accounting guidance; the components of these investments were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

June 30,

    

December 31,

​

​

​

2022

​

2021

​

Minimum lease payments receivable

​

$

123,031

    

$

159,371

​

Estimated residual value of leased assets

​

 

6,889

​

 

8,938

​

Unearned income

​

 

(68,857)

​

 

(89,672)

​

Net investment

​

$

61,063

​

$

78,637

​

​

As of June 30, 2022, the future minimum lease payments to be received under the direct financing lease receivables are expected to be $3.2 million for the remainder of 2022, average approximately $6.5 million for each of the next five years and $87.5 million thereafter.

​

Provision for Credit Losses

In accordance with ASC Topic 326, the Company evaluates the collectibility of its loans and financing receivables at the time each financing receivable is issued and subsequently on a quarterly basis utilizing an expected credit loss model based on credit quality indicators. The Company groups individual loans and financing receivables based on the implied credit rating associated with each borrower. Based on credit quality indicators as of June 30, 2022, $123.3 million of loans and financing receivables were categorized as investment grade and $591.2 million were categorized as non-investment grade. During the six months ended June 30, 2022, there were $0.3 million of net reductions of prior provisions for credit losses recognized, $3.7 million of write-offs charged against the allowance and no recoveries of amounts previously written off.

As of June 30, 2022, the year of origination for loans and financing receivables with a credit quality indicator of investment grade was none in 2022, $8.0 million in 2021, none in 2020, $88.9 million in 2019, none in 2018 and $26.4 million prior to 2018. The year of origination for loans and financing receivables with a credit quality indicator of non-investment grade was $58.7 million in 2022, $104.6 million in 2021, $94.3 million in 2020, $146.4 million in 2019, $34.2 million in 2018 and $153.0 million prior to 2018.
v3.22.2
Debt
 6 Months Ended
Jun. 30, 2022
Debt  
Debt

4. Debt

Credit Facility

The Company has an unsecured revolving credit facility with a group of lenders that is used to partially fund real estate acquisitions pending the issuance of long-term, fixed-rate debt. The credit facility has immediate availability of $600.0 million and an accordion feature of $1.0 billion, which allows the size of the facility to be increased up to $1.6 billion. The facility matures in June 2025 and includes two six-month extension options, subject to certain conditions and the payment of a 0.0625% extension fee. At June 30, 2022, the Company had $45.0 million of borrowings outstanding on the facility.

Borrowings under the facility require monthly payments of interest at a rate selected by the Company of either (1) LIBOR plus a credit spread ranging from 0.70% to 1.40%, or (2) the Base Rate, as defined in the credit agreement, plus a credit spread ranging from 0.00% to 0.40%. The credit spread used is based on the Company’s credit rating as defined in the credit agreement. The Company is required to pay a facility fee on the total commitment amount ranging from 0.10% to 0.30%. Currently, the applicable credit spread for LIBOR-based borrowings is 0.85% and the facility fee is 0.20%.

Under the terms of the facility, the Company is subject to various restrictive financial and nonfinancial covenants which, among other things, require the Company to maintain certain leverage ratios, cash flow and debt service coverage ratios and secured borrowing ratios. Certain of these ratios are based on the Company’s pool of unencumbered assets, which aggregated approximately $7.6 billion at June 30, 2022.

The facility is recourse to the Company and, as of June 30, 2022, the Company was in compliance with the covenants under the facility.

At June 30, 2022 and December 31, 2021, unamortized financing costs related to the Company’s credit facility totaled $3.2 million and $3.7 million, respectively, and are included in other assets, net, on the condensed consolidated balance sheets.

Unsecured Notes and Term Loans Payable, net

The Company has completed four public offerings of ten-year unsecured notes (Public Notes). In March 2018, February 2019 and November 2020, the Company completed public offerings of $350.0 million each in aggregate principal amount. In November 2021, the Company completed a public offering of $375.0 million in aggregate principal amount. The Public Notes have coupon rates of 4.50%, 4.625%, 2.75% and 2.70%, respectively, and interest is payable semi-annually in arrears in March and September of each year for the 2018 and 2019 Public Notes, May and November of each year for the 2020 Public Notes, and June and December of each year for the 2021 Public Notes. The notes were issued at 99.515%, 99.260%, 99.558% and 99.877%, respectively, of their principal amounts.

The supplemental indentures governing the Public Notes contain various restrictive covenants, including limitations on the Company’s ability to incur additional secured and unsecured indebtedness. As of June 30, 2022, the Company was in compliance with these covenants. The Public Notes can be redeemed, in whole or in part, at par within three months of their maturity date or at a redemption price equal to the sum of (i) the principal amount of the notes being redeemed plus accrued and unpaid interest and (ii) the make-whole premium, as defined in the supplemental indentures governing these notes.

In April 2022, the Company entered into a term loan agreement under which the Company borrowed an aggregate $600.0 million of floating-rate, unsecured term loans; the loans consist of a $400.0 million five-year loan and a $200.0 million seven-year loan (Term Loans). The interest rate on each of the Term Loans resets daily at Daily Simple SOFR plus an adjustment of 0.10% plus a credit rating-based credit spread ranging from 0.75% to 1.60% on the five-year loan and 1.25% to 2.20% on the seven-year loan. The credit spread currently applicable to the Company is 0.95% for the five-year loan and 1.25% for the seven-year loan. The Company has entered into interest rate swap agreements that effectively convert the floating rates on the Term Loans to a weighted average fixed rate of 3.68%.

The term loan agreement includes an incremental borrowing feature that allows the Company to request additional term borrowings under terms set forth at the time of the incremental borrowing. The Term Loans were arranged with a group of lenders that also participate in the Company’s unsecured revolving credit facility. The financial covenants of the Term Loans match the covenants of the unsecured revolving credit facility. As of June 30, 2022, the Company was in compliance with these covenants. The Term Loans are senior unsecured obligations of the Company, require monthly interest payments and may be prepaid at any time; the seven-year loan has a prepayment premium of 2% if repaid in year one and 1% if repaid in year two.

The Company has entered into Note Purchase Agreements (NPAs) with institutional purchasers that provided for the private placement of three series of senior unsecured notes aggregating $375.0 million (the Notes). Interest on the Notes is payable semi-annually in arrears in May and November of each year. On each interest payment date, the interest rate on each series of Notes may be increased by 1.0% should the Company’s Applicable Credit Rating (as defined in the NPAs) fail to be an investment-grade credit rating; the increased interest rate would remain in effect until the next interest payment date on which the Company obtains an investment grade credit rating. The Company may prepay at any time all, or any part, of any series of Notes, in an amount not less than 5% of the aggregate principal amount of the series then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a Make-Whole Amount (as defined in the NPAs). The Notes are senior unsecured obligations of the Company.

The NPAs contain a number of financial covenants that are similar to the Company’s unsecured revolving credit facility as summarized above. Subject to the terms of the NPAs and the Notes, upon certain events of default, including, but not limited to, (i) a payment default under the Notes, and (ii) a default in the payment of certain other indebtedness by the Company or its subsidiaries, all amounts outstanding under the Notes will become due and payable at the option of the purchasers. As of June 30, 2022, the Company was in compliance with its covenants under the NPAs.

​

The Company’s senior unsecured notes and term loans payable are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Maturity

​

Interest

​

 

June 30,

​

December 31,

 

​

​

Date

​

Rate

​

 

2022

​

2021

 

Notes Payable:

​

​

​

​

​

​

​

​

​

​

​

​

​

Series A issued November 2015

​

Nov. 2022

​

4.95

%  

​

​

$

75,000

​

$

75,000

​

Series B issued November 2015

​

Nov. 2024

​

5.24

%  

​

​

​

100,000

​

​

100,000

​

Series C issued April 2016

​

Apr. 2026

​

4.73

%  

​

​

​

200,000

​

​

200,000

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Public Notes issued March 2018

​

Mar. 2028

​

4.50

%  

​

​

​

350,000

​

​

350,000

​

Public Notes issued February 2019

​

Mar. 2029

​

4.625

%  

​

​

​

350,000

​

​

350,000

​

Public Notes issued November 2020

​

Nov. 2030

​

2.75

%  

​

​

​

350,000

​

​

350,000

​

Public Notes issued November 2021

​

Dec. 2031

​

2.70

%  

​

​

​

375,000

​

​

375,000

​

Total notes payable

​

​

​

​

​

​

​

​

1,800,000

​

​

1,800,000

​

Term Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

Term Loan issued April 2022

​

Apr. 2027

​

3.58

% (a) 

​

​

​

400,000

​

​

—

​

Term Loan issued April 2022

​

Apr. 2029

​

3.88

% (b)

​

​

​

200,000

​

​

—

​

Total term loans

​

​

​

​

​

​

​

​

600,000

​

​

—

​

Unamortized discount

​

​

​

​

​

​

​

​

(4,427)

​

​

(4,740)

​

Unamortized deferred financing costs

​

​

​

​

​

​

​

​

(14,373)

​

​

(12,447)

​

Total unsecured notes and term loans payable, net

​

​

​

​

​

​

​

$

2,381,200

​

$

1,782,813

​

(a)Loan is a floating-rate loan which resets daily at Daily Simple SOFR + an adjustment of 0.10% + the applicable credit spread which was 0.95% at June 30, 2022. The Company has entered into six interest rate swap agreements that effectively convert the floating rate to the fixed rate noted as of June 30, 2022.
(b)Loan is a floating-rate loan which resets daily at Daily Simple SOFR + an adjustment of 0.10% + the applicable credit spread which was 1.25% at June 30, 2022. The Company has entered into one interest rate swap agreement that effectively converts the floating rate to the fixed rate noted as of June 30, 2022.

Non-recourse Debt Obligations of Consolidated Special Purpose Entities, net

During 2012, the Company implemented its STORE Master Funding debt program pursuant to which certain of its consolidated special purpose entities issue multiple series of non-recourse net-lease mortgage notes from time to time that are collateralized by the assets and related leases (collateral) owned by these entities. One of the principal features of the program is that, as additional series of notes are issued, new collateral is contributed to the collateral pool, thereby increasing the size and diversity of the collateral pool for the benefit of all noteholders, including those who invested in prior series. Another feature of the program is the ability to substitute collateral from time to time subject to meeting certain prescribed conditions and criteria. The notes issued under this program are generally segregated into Class A amortizing notes and Class B non-amortizing notes. The Company has retained the Class B notes which aggregate $190.0 million at June 30, 2022.

The Class A notes require monthly principal and interest payments with a balloon payment due at maturity and these notes may be prepaid at any time, subject to a yield maintenance prepayment premium if prepaid more than 24 or 36 months prior to maturity. As of June 30, 2022, the aggregate collateral pool securing the net-lease mortgage notes was comprised primarily of single-tenant commercial real estate properties with an aggregate investment amount of approximately $3.6 billion.

In connection with obtaining the Term Loans in April 2022, the Company prepaid, without penalty, $134.5 million of STORE Master Funding Series 2014-1, Class A-2 notes, which bore an interest rate of 5.0% and were scheduled to mature in 2024. At June 30, 2022, the Company recognized $0.8 million of accelerated amortization of deferred financing costs associated with the prepayment.

A number of additional consolidated special purpose entity subsidiaries of the Company have financed their real estate properties with traditional first mortgage debt. The notes generally require monthly principal and interest payments with balloon payments due at maturity. In general, these mortgage notes payable can be prepaid in whole or in part upon payment of a yield maintenance premium. The mortgage notes payable are collateralized by real estate properties owned

by these consolidated special purpose entity subsidiaries with an aggregate investment amount of approximately $261.4 million at June 30, 2022.

The mortgage notes payable, which are obligations of the consolidated special purpose entities described in Note 2, contain various covenants customarily found in mortgage notes, including a limitation on the issuing entity’s ability to incur additional indebtedness on the underlying real estate. Although this mortgage debt generally is non-recourse, there are customary limited exceptions to recourse for matters such as fraud, misrepresentation, gross negligence or willful misconduct, misapplication of payments, bankruptcy and environmental liabilities. Certain of the mortgage notes payable also require the posting of cash reserves with the lender or trustee if specified coverage ratios are not maintained by the Company or one of its tenants.

The Company’s non-recourse debt obligations of consolidated special purpose entity subsidiaries are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Maturity

​

Interest

 

June 30,

​

December 31,

 

​

​

Date

​

Rate

 

2022

​

2021

 

Non-recourse net-lease mortgage notes:

    

    

    

    

    

​

​

​

​

 

    

​

$140,000 Series 2014-1, Class A-2 (a)

 

​

 

5.00

%  

​

$

—

​

$

134,692

​

$150,000 Series 2018-1, Class A-1

​

Oct. 2024 (b)

​

3.96

%  

​

​

141,302

​

​

142,051

​

$50,000 Series 2018-1, Class A-3

​

Oct. 2024 (b)

​

4.40

%  

​

​

48,667

​

​

48,917

​

$270,000 Series 2015-1, Class A-2

​

Apr. 2025 (b)

​

4.17

%  

​

​

260,325

​

​

260,999

​

$200,000 Series 2016-1, Class A-1 (2016)

​

Oct. 2026 (b)

​

3.96

%  

​

​

178,047

​

​

180,190

​

$82,000 Series 2019-1, Class A-1

​

Nov. 2026 (b)

​

2.82

%

​

​

78,385

​

​

78,590

​

$46,000 Series 2019-1, Class A-3

​

Nov. 2026 (b)

​

3.32

%

​

​

45,406

​

​

45,521

​

$135,000 Series 2016-1, Class A-2 (2017)

​

Apr. 2027 (b)

​

4.32

%  

​

​

121,628

​

​

123,046

​

$228,000 Series 2018-1, Class A-2

​

Oct. 2027 (c)

​

4.29

%  

​

​

214,778

​

​

215,918

​

$164,000 Series 2018-1, Class A-4

​

Oct. 2027 (c)

​

4.74

%  

​

​

159,627

​

​

160,447

​

$168,500 Series 2021-1, Class A-1

​

Jun. 2028 (b)

​

2.12

%  

​

​

167,658

​

​

168,079

​

$89,000 Series 2021-1, Class A-3

​

Jun. 2028 (b)

​

2.86

%  

​

​

88,555

​

​

88,778

​

$168,500 Series 2021-1, Class A-2

​

Jun. 2033 (c)

​

2.96

%  

​

​

167,658

​

​

168,079

​

$89,000 Series 2021-1, Class A-4

​

Jun. 2033 (c)

​

3.70

%  

​

​

88,555

​

​

88,778

​

$244,000 Series 2019-1, Class A-2

​

Nov. 2034 (c)

​

3.65

%

​

​

233,244

​

​

233,854

​

$136,000 Series 2019-1, Class A-4

​

Nov. 2034 (c)

​

4.49

%

​

​

134,243

​

​

134,583

​

Total non-recourse net-lease mortgage notes

​

​

​

​

​

​

​

2,128,078

​

​

2,272,522

​

Non-recourse mortgage notes:

​

​

​

​

​

​

​

​

​

​

​

​

$13,000 note issued May 2012

 

​

 

5.195

%  

​

 

—

​

 

9,961

​

$26,000 note issued August 2012

 

​

 

5.05

%  

​

 

—

​

 

20,085

​

$6,400 note issued November 2012

 

Dec. 2022

 

4.707

%  

​

 

4,836

​

 

4,938

​

$11,895 note issued March 2013

 

Apr. 2023

 

4.7315

%  

​

 

9,124

​

 

9,309

​

$17,500 note issued August 2013

 

Sept. 2023

 

5.46

%  

​

 

13,959

​

 

14,212

​

$10,075 note issued March 2014

 

Apr. 2024

 

5.10

%  

​

 

8,706

​

 

8,808

​

$65,000 note issued June 2016

​

Jul. 2026

​

4.75

%

​

​

58,605

​

​

59,223

​

$41,690 note issued March 2019

​

Mar. 2029

​

4.80

%

​

​

40,977

​

​

41,291

​

$6,944 notes issued March 2013

 

Apr. 2038

 

4.50

% (d)

​

 

5,238

​

 

5,332

​

$6,350 notes issued March 2019 (assumed in December 2020)

​

Apr. 2049

​

4.64

%

​

​

6,050

​

​

6,106

​

Total non-recourse mortgage notes

​

​

​

​

​

​

​

147,495

​

​

179,265

​

Unamortized discount

​

​

​

​

​

​

 

(436)

​

 

(496)

​

Unamortized deferred financing costs

​

​

​

​

​

​

​

(22,470)

​

 

(25,583)

​

Total non-recourse debt obligations of consolidated special purpose entities, net

​

​

​

​

​

​

$

2,252,667

​

$

2,425,708

​

(a)Notes were repaid, without penalty, in April 2022 using a portion of the proceeds from the aggregate $600.0 million of term loans the Company entered into in April 2022.
(b)Prepayable, without penalty, 24 months prior to maturity.
(c)Prepayable, without penalty, 36 months prior to maturity.
(d)Interest rate is effective until March 2023 and will reset to the lender’s then prevailing interest rate.

​

Credit Risk Related Contingent Features

The Company has agreements with derivative counterparties, which provide generally that the Company could be declared in default on its derivative obligations if the Company defaults on the underlying indebtedness. As of June 30, 2022, the Company had no interest rate swaps that were in a liability position.

Long-term Debt Maturity Schedule

As of June 30, 2022, the scheduled maturities, including balloon payments, on the Company’s aggregate long-term debt obligations are as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

Scheduled

    

​

    

​

 

​

​

Principal

​

Balloon

​

​

​

​

​

Payments

​

Payments

​

Total

 

Remainder of 2022

​

$

11,576

​

$

79,750

​

$

91,326

​

2023

​

​

22,866

​

​

22,182

​

​

45,048

​

2024

​

 

22,154

​

 

293,798

​

 

315,952

​

2025

​

 

20,037

​

 

256,612

​

 

276,649

​

2026

​

 

17,926

​

 

532,142

​

 

550,068

​

2027

​

​

9,506

​

​

860,472

​

​

869,978

​

Thereafter

​

 

30,702

​

 

2,495,850

​

 

2,526,552

​

​

​

$

134,767

​

$

4,540,806

​

$

4,675,573

​

​
v3.22.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity  
Stockholders' Equity

5. Stockholders’ Equity

In November 2020, the Company established its fifth “at the market” equity distribution program, or ATM program, pursuant to which, from time to time, it may offer and sell up to $900.0 million of registered shares of common stock through a group of banks acting as its sales agents (the 2020 ATM Program).

The following tables outline the common stock issuances under the 2020 ATM Program (in millions except share and per share information):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2022

Shares Sold

​

Weighted Average Price per Share

​

Gross Proceeds

    

Sales Agents' Commissions

 

Other Offering Expenses

 

Net Proceeds

3,068,633

​

$

27.52

​

$

84.4

​

$

(0.9)

​

$

(0.1)

​

$

83.4

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2022

Shares Sold

​

Weighted Average Price per Share

​

Gross Proceeds

    

Sales Agents' Commissions

 

Other Offering Expenses

 

Net Proceeds

8,607,771

​

$

29.38

​

$

252.9

​

$

(3.1)

​

$

(0.2)

​

$

249.6

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Inception of Program Through June 30, 2022

Shares Sold

​

Weighted Average Price per Share

​

Gross Proceeds

    

Sales Agents' Commissions

 

Other Offering Expenses

 

Net Proceeds

19,449,302

​

$

31.55

​

$

613.7

​

$

(8.5)

​

$

(0.8)

​

$

604.4

​
v3.22.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies  
Commitments and Contingencies

6. Commitments and Contingencies

The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Management believes that the final outcome of such matters will not have a material adverse effect on the Company’s financial position or results of operations.

In the normal course of business, the Company enters into various types of commitments to purchase real estate properties. These commitments are generally subject to the Company’s customary due diligence process and,

accordingly, a number of specific conditions must be met before the Company is obligated to purchase the properties. As of June 30, 2022, the Company had commitments to its customers to fund improvements to owned or mortgaged real estate properties totaling approximately $135.1 million, of which $106.7 million is expected to be funded in the next twelve months. These additional investments will generally result in increases to the rental revenue or interest income due under the related contracts.

The Company has employment agreements with each of its executive officers that provide for minimum annual base salaries, and annual cash and equity incentive compensation based on the satisfactory achievement of reasonable performance criteria and objectives to be adopted by the Company’s Board of Directors each year. In the event an executive officer’s employment terminates under certain circumstances, the Company would be liable for cash severance, continuation of healthcare benefits and, in some instances, accelerated vesting of equity awards that he or she has been awarded as part of the Company’s incentive compensation program.
v3.22.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2022
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

7. Fair Value of Financial Instruments

The Company’s derivatives are required to be measured at fair value in the Company’s consolidated financial statements on a recurring basis. Derivatives are measured under a market approach, using prices obtained from a nationally recognized pricing service and pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy. The aggregate fair value of the Company’s derivative instruments was an asset of $6.1 million at June 30, 2022; the Company had no derivatives outstanding at December 31, 2021. Derivative assets are included in other assets, net, on the condensed consolidated balance sheets.

In addition to the disclosures for assets and liabilities required to be measured at fair value at the balance sheet date, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair value. The fair values of financial instruments are estimates based on market conditions and perceived risks at June 30, 2022 and December 31, 2021. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities.

Financial assets and liabilities for which the carrying values approximate their fair values include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and tenant deposits. Generally these assets and liabilities are short-term in duration and are recorded at fair value on the consolidated balance sheets. The Company believes the carrying value of the borrowings on its credit facility approximate fair value based on their nature, terms and variable interest rate. Additionally, the Company believes the carrying values of its fixed-rate loans receivable approximate fair values based on market quotes for comparable instruments or discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads.

The estimated fair values of the Company’s aggregate long-term debt obligations have been derived based on market observable inputs such as interest rates and discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 2 within the fair value hierarchy. At June 30, 2022, these debt obligations had an aggregate carrying value of $4,633.9 million and an estimated fair value of $4,308.7 million. At December 31, 2021, these debt obligations had an aggregate carrying value of $4,208.5 million and an estimated fair value of $4,478.4 million.
v3.22.2
Summary of Significant Accounting Principles (Policies)
 6 Months Ended
Jun. 30, 2022
Summary of Significant Accounting Principles  
Basis of Accounting and Principles of Consolidation

Basis of Accounting and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of interim periods are not necessarily indicative of the results for the entire year. Certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted from these statements and, accordingly, these statements should be read in conjunction with the Company’s audited consolidated financial statements as filed with the SEC in its Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

These condensed consolidated statements include the accounts of STORE Capital and its subsidiaries, which are wholly owned and controlled by the Company through its voting interest. One of the Company’s wholly owned subsidiaries, STORE Capital Advisors, LLC, provides all of the general and administrative services for the day-to-day operations of the consolidated group, including property acquisition and lease origination, real estate portfolio management and marketing, accounting and treasury services. The remaining subsidiaries were formed to acquire and hold real estate investments or to facilitate non-recourse secured borrowing activities. Generally, the initial operations of the real estate subsidiaries are funded by an interest-bearing intercompany loan from STORE Capital, and such intercompany loan is repaid when the subsidiary issues long-term debt secured by its properties. All intercompany account balances and transactions have been eliminated in consolidation.

Certain of the Company’s wholly owned consolidated subsidiaries were formed as special purpose entities. Each special purpose entity is a separate legal entity and is the sole owner of its assets and liabilities. The assets of the special purpose entities are not available to pay or otherwise satisfy obligations to the creditors of any owner or affiliate of the special purpose entity. At June 30, 2022 and December 31, 2021, these special purpose entities held assets totaling $9.1 billion and $8.5 billion, respectively, and had third-party liabilities totaling $2.4 billion and $2.6 billion, respectively. These assets and liabilities are included in the accompanying condensed consolidated balance sheets.
Use of Estimates

Use of Estimates

​

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Although management believes its estimates are reasonable, actual results could differ from those estimates.
Segment Reporting

Segment Reporting

​

The Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) Topic 280, Segment Reporting, established standards for the manner in which enterprises report information about operating segments. The Company views its operations as one reportable segment.
Investment Portfolio

Investment Portfolio

STORE Capital invests in real estate assets through three primary transaction types as summarized below. At the beginning of 2019, the Company adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) (ASC Topic 842) which had an impact on certain accounting related to the Company’s investment portfolio.

●Real Estate Investments – investments are generally made through sale-leaseback transactions in which the Company acquires the real estate from the owner-operators and then leases the real estate back to them through long-term leases which are generally classified as operating leases; the operators become the Company’s long-term tenants (its customers). Certain of the lease contracts that are associated with a sale-leaseback transaction may contain terms, such as a tenant purchase option, which results in the transaction being accounted for as a financing arrangement, due to the adoption of ASC Topic 842, rather than as an investment in real estate subject to an operating lease.
●Mortgage Loans Receivable – investments are made by issuing mortgage loans to the owner-operators of the real estate that serve as the collateral for the loans and the operators become long-term borrowers and customers of the Company. On occasion, the Company may also make other types of loans to its customers, such as equipment loans.
●Hybrid Real Estate Investments – investments are made through modified sale-leaseback transactions, where the Company acquires land from the owner-operators, leases the land back through long-term leases and simultaneously issues mortgage loans to the operators secured by the buildings and improvements on the land. Prior to 2019, these hybrid real estate investment transactions were generally accounted for as direct financing leases. Subsequent to the adoption of ASC Topic 842, new or modified hybrid real estate investment transactions are generally accounted for as operating leases of the land and mortgage loans on the buildings and improvements.
Impact of the COVID-19 Pandemic

Impact of the COVID-19 Pandemic

Since the beginning of the novel coronavirus (COVID-19) pandemic in early 2020, the Company has provided to certain tenants rent deferral arrangements in the form of both short-term notes and lease modifications. The FASB provided accounting relief under which concessions provided to tenants in direct response to the COVID-19 pandemic are not required to be evaluated or accounted for as lease modifications in accordance with ASC Topic 842. The Company elected to apply this accounting relief to the rent deferral arrangements it has entered into with its tenants, which primarily affected the timing (but not the amount) of lease and loan payments due to the Company under its contracts; net revenue recognized under these deferral arrangements results in a corresponding increase in receivables that are included in other assets, net on the condensed consolidated balance sheets. For the three and six months ended June 30, 2022, the Company recognized an additional $0.3 million and $1.0 million, respectively, of net revenue and collected $3.8 million and $7.2 million, respectively, of the receivables associated with these deferral arrangements. During the three and six months ended June 30, 2021, the Company recognized $2.9 million and $4.9 million,

respectively, of net revenue and collected $5.4 million and $11.3 million, respectively, in repayments of amounts deferred.

Accounting for Real Estate Investments

Accounting for Real Estate Investments

Classification and Cost

STORE Capital records the acquisition of real estate properties at cost, including acquisition and closing costs. The Company allocates the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Intangible assets and liabilities acquired may include the value of existing in-place leases, above-market or below-market lease value of in-place leases and ground lease-related intangibles, as applicable. Management uses multiple sources to estimate fair value, including independent appraisals and information obtained about each property as a result of its pre-acquisition due diligence and its marketing and leasing activities. Certain of the Company’s lease contracts allow its tenants the option, at their election, to purchase the leased property from the Company at a specified time or times (generally at the greater of the then-fair market value or the Company’s cost, as defined in the lease contracts). Subsequent to the adoption of ASC Topic 842, for real estate assets acquired through a sale-leaseback transaction and subject to a lease contract which contains a purchase option, the Company accounts for such an acquisition as a financing arrangement and records the investment in loans and financing receivables on the condensed consolidated balance sheet; should the purchase option later expire or be removed from the lease contract, the Company would derecognize the asset accounted for as a financing arrangement and recognize the transferred leased asset in real estate investments.

In-place lease intangibles are valued based on management’s estimates of lost rent and carrying costs during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases. In estimating lost rent and carrying costs, management considers market rents, real estate taxes, insurance, costs to execute similar leases (including leasing commissions) and other related costs. The value assigned to in-place leases is amortized on a straight-line basis as a component of depreciation and amortization expense typically over the remaining term of the related leases.

The fair value of any above-market or below-market lease is estimated based on the present value of the difference between the contractual amounts to be paid pursuant to the in-place lease and management’s estimate of current market lease rates for the property, measured over a period equal to the remaining term of the lease. Capitalized above-market lease intangibles are amortized over the remaining term of the respective leases as a decrease to rental revenue. Below-market lease intangibles are amortized as an increase in rental revenue over the remaining term of the respective leases plus the fixed-rate renewal periods on those leases, if any. Should a lease terminate early, the unamortized portion of any related lease intangible is immediately recognized in operations.

The Company’s real estate portfolio is depreciated using the straight-line method over the estimated remaining useful life of the properties, which generally ranges from 30 to 40 years for buildings and is generally 15 years for land improvements. Properties classified as held for sale are recorded at the lower of their carrying value or their fair value, less anticipated selling costs. Any properties classified as held for sale are not depreciated.

Revenue Recognition

Revenue Recognition

STORE Capital leases real estate to its tenants under long-term net leases that are predominantly classified as operating leases. The Company’s leases generally provide for rent escalations throughout the lease terms. For leases that provide for specific contractual escalations, rental revenue is recognized on a straight-line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, straight-line operating lease receivables, calculated as the aggregate difference between the rental revenue recognized on a straight-line basis and scheduled rents, represent unbilled rent receivables that the Company will receive only if the tenants make all rent payments required through the expiration of the leases; these receivables are included in other assets, net on the condensed consolidated balance sheets. The Company reviews its straight-line operating lease receivables for collectibility on a contract by contract basis and any amounts not considered substantially collectible are written off against rental revenues. As of June 30, 2022 and December 31, 2021, the Company had $42.9 million and $39.4 million, respectively, of straight-line operating lease

receivables. Leases that have contingent rent escalators indexed to future increases in the Consumer Price Index (CPI) may adjust over a one-year period or over multiple-year periods. Generally, these escalators increase rent at the lesser of (a) 1 to 1.25 times the increase in the CPI over a specified period or (b) a fixed percentage. Because of the volatility and uncertainty with respect to future changes in the CPI, the Company’s inability to determine the extent to which any specific future change in the CPI is probable at each rent adjustment date during the entire term of these leases and the Company’s view that the multiplier does not represent a significant leverage factor, increases in rental revenue from leases with this type of escalator are recognized only after the changes in the rental rates have actually occurred.

In addition to base rental revenue, certain leases also have contingent rentals that are based on a percentage of the tenant’s gross sales; the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached. Approximately 3.7% of the Company’s investment portfolio is subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales; historically, contingent rent recognized has been less than 2.0% of rental revenues.

The Company reviews its operating lease receivables for collectibility on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that the collectibility of lease payments with respect to any tenant is not probable, a direct write-off of the receivable is made and any future rental revenue is recognized only when the tenant makes a rental payment or when collectibility is again deemed probable.

Direct costs incremental to successful lease origination, offset by any lease origination fees received, are deferred and amortized over the related lease term as an adjustment to rental revenue. The Company periodically commits to fund the construction of new properties for its customers; rental revenue collected during the construction period is deferred and amortized over the remaining lease term when the construction project is complete. Substantially all of the Company’s leases are triple net, which means that the lessees are directly responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance. For a few lease contracts, the Company collects property taxes from its customers and remits those taxes to governmental authorities. Subsequent to the adoption of ASC Topic 842, these property tax payments are presented on a gross basis as part of both rental revenues and property costs in the condensed consolidated statements of income.
Impairment

Impairment

STORE Capital reviews its real estate investments and related lease intangibles periodically for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations. Such events or changes in circumstances may include an expectation to sell certain assets in accordance with the Company’s long-term strategic plans. Management considers factors such as expected future undiscounted cash flows, capitalization and discount rates, terminal value, tenant improvements, market trends (such as the effects of leasing demand and competition) and other factors including bona fide purchase offers received from third parties in making this assessment. These factors are classified as Level 3 inputs within the fair value hierarchy, discussed in Fair Value Measurement below. If an asset is determined to be impaired, the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results.

During the three and six months ended June 30, 2022, the Company recognized aggregate provisions for the impairment of real estate of $5.3 million and $6.5 million, respectively. For the assets impaired in 2022, the estimated aggregate fair value of the impaired real estate assets at the time of impairment was $36.6 million. The Company recognized an aggregate provision for the impairment of real estate of $6.6 million and $12.0 million during the three and six months ended June 30, 2021, respectively.
Accounting for Loans and Financing Receivables

Accounting for Loans and Financing Receivables

Loans Receivable – Classification, Cost and Revenue Recognition

STORE Capital holds its loans receivable, which are primarily mortgage loans secured by real estate, for long-term investment. Loans receivable are carried at amortized cost including related unamortized discounts or premiums, if any.

The Company recognizes interest income on loans receivable using the effective-interest method applied on a loan-by-loan basis. Direct costs associated with originating loans are offset against any related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective-interest method. A loan receivable is placed on nonaccrual status when the loan has become more than 60 days past due, or earlier if management determines that full recovery of the contractually specified payments of principal and interest is doubtful. While on nonaccrual status, interest income is recognized only when received. As of June 30, 2022 and December 31, 2021, the Company had loans receivable with an aggregate outstanding principal balance of $22.1 million and $28.8 million, respectively, on nonaccrual status.

Direct Financing Receivables – Classification, Cost and Revenue Recognition

Direct financing receivables include hybrid real estate investment transactions completed prior to 2019. The Company recorded the direct financing receivables at their net investment, determined as the aggregate minimum lease payments and the estimated residual value of the leased property less unearned income. The unearned income is recognized over the life of the related contracts so as to produce a constant rate of return on the net investment in the asset. Subsequent to the adoption of ASC Topic 842, existing direct financing receivables will continue to be accounted for in the same manner, unless the underlying contracts are modified.

Impairment and Provision for Credit Losses

The Company accounts for provision of credit losses in accordance with ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC Topic 326). In accordance with ASC Topic 326, the Company evaluates the collectibility of its loans and financing receivables at the time each financing receivable is issued and subsequently on a quarterly basis utilizing an expected credit loss model based on credit quality indicators. The primary credit quality indicator is the implied credit rating associated with each borrower, utilizing two categories, investment grade and non-investment grade. The Company computes implied credit ratings based on regularly received borrower financial statements using Moody’s Analytics RiskCalc. The Company considers the implied credit ratings, loan and financing receivable term to maturity and underlying collateral value and quality, if any, to calculate the expected credit loss over the remaining life of the receivable. Loans are written off against the allowance for credit loss when all or a portion of the principal amount is determined to be uncollectible. For the six months ended June 30, 2022, the Company recognized an estimated $0.3 million net reduction of prior provisions for credit losses related to its loans and financing receivables; the reduction of the provision for credit losses is included in provisions for impairment on the condensed consolidated statements of income. During the three and six months ended June 30, 2022, the Company wrote off $3.7 million of loans receivable against previously established reserves for credit losses. For the six months ended June 30, 2021, the Company recognized an estimated $2.0 million of provisions for credit losses.
Direct Financing Receivables - Classification, Cost and Revenue Recognition

Direct Financing Receivables – Classification, Cost and Revenue Recognition

Direct financing receivables include hybrid real estate investment transactions completed prior to 2019. The Company recorded the direct financing receivables at their net investment, determined as the aggregate minimum lease payments and the estimated residual value of the leased property less unearned income. The unearned income is recognized over the life of the related contracts so as to produce a constant rate of return on the net investment in the asset. Subsequent to the adoption of ASC Topic 842, existing direct financing receivables will continue to be accounted for in the same manner, unless the underlying contracts are modified.
Accounting for Operating Ground Lease Assets

Accounting for Operating Ground Lease Assets

As part of certain real estate investment transactions, the Company may enter into long-term operating ground leases as a lessee. The Company is required to recognize an operating ground lease (or right-of-use) asset and related operating lease liability for each of these operating ground leases. Operating ground lease assets and operating lease liabilities are recognized based on the present value of the lease payments. The Company uses its estimated incremental borrowing rate, which is the estimated rate at which the Company could borrow on a collateralized basis with similar payments over a similar term, in determining the present value of the lease payments.

Many of these operating lease contracts include options for the Company to extend the lease; the option periods are included in the minimum lease term only if it is reasonably likely the Company will exercise the option(s). Rental

expense for the operating ground lease contracts is recognized in property costs on a straight-line basis over the lease term. Some of the contracts have contingent rent escalators indexed to future increases in the CPI and a few contracts have contingent rentals that are based on a percentage of the gross sales of the property; these payments are recognized in expense as incurred. The payment obligations under these contracts are typically the responsibility of the tenants operating on the properties, in accordance with the Company’s leases with the respective tenants. As a result, the Company also recognizes sublease rental revenue on a straight-line basis over the term of the Company’s sublease with the tenant; the sublease income is included in rental revenues.

Cash and Cash Equivalents

Cash and Cash Equivalents

​

Cash and cash equivalents include cash and highly liquid investment securities with maturities at acquisition of three months or less. The Company invests cash primarily in money-market funds of a major financial institution, consisting predominantly of U.S. Government obligations.
Restricted Cash

Restricted Cash

​

Restricted cash may include reserve account deposits held by lenders, including deposits required to be used for future investment in real estate assets, escrow deposits and cash proceeds from the sale of assets held by a qualified intermediary to facilitate tax-deferred exchange transactions under Section 1031 of the Internal Revenue Code. The Company had $1.5 million and $5.8 million of restricted cash at June 30, 2022 and December 31, 2021, respectively, which are included in other assets, net, on the condensed consolidated balance sheets.

Deferred Costs

​

Deferred Costs

​

Financing costs related to the issuance of the Company’s long-term debt are deferred and amortized as an increase to interest expense over the term of the related debt instrument using the effective-interest method and are reported as a reduction of the related debt balance on the condensed consolidated balance sheets. Deferred financing costs related to the establishment of the Company's credit facility are deferred and amortized to interest expense over the term of the credit facility and are included in other assets, net, on the condensed consolidated balance sheets.
Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Company may enter into derivative contracts as part of its overall financing strategy to manage the Company’s exposure to changes in interest rates associated with current and/or future debt issuances. The Company does not use derivatives for trading or speculative purposes. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company enters into derivative financial instruments only with counterparties with high credit ratings and with major financial institutions with which the Company may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations.

The Company records its derivatives on the balance sheet at fair value. All derivatives subject to a master netting arrangement in accordance with the associated master International Swap and Derivatives Association agreement have been presented on a net basis by counterparty portfolio for purposes of balance sheet presentation and related disclosures. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss). Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedges are reclassified to operations as an adjustment to interest expense as interest payments are made on the hedged debt transaction.

As of June 30, 2022, the Company had seven interest rate swap agreements in place. One of the interest rate swap agreements has a notional amount of $200.0 million and was designated as a cash flow hedge of the Company's $200.0 million floating-rate bank term loan due in April 2029. The remaining six interest rate swap agreements have an aggregate notional amount of $400.0 million and were designated as cash flow hedges of the Company's $400.0 million floating-rate bank term loan due in April 2027 (Note 4).
Fair Value Measurement

Fair Value Measurement

The Company estimates the fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

●Level 1—Quoted market prices in active markets for identical assets and liabilities that the Company has the ability to access.
●Level 2—Significant inputs that are observable, either directly or indirectly. These types of inputs would include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets in inactive markets and market-corroborated inputs.
●Level 3—Inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. These types of inputs include the Company’s own assumptions.
Share-based Compensation

Share-based Compensation

Directors and employees of the Company have been granted long-term incentive awards, including restricted stock awards (RSAs) and restricted stock unit awards (RSUs), which provide such directors and employees with equity interests as an incentive to remain in the Company’s service and to align their interests with those of the Company’s stockholders.

The Company estimates the fair value of RSAs based on the closing price per share of the common stock on the date of grant and recognizes that amount in general and administrative expense ratably over the vesting period at the greater of the amount amortized on a straight-line basis or the amount vested. During the six months ended June 30, 2022, the Company granted RSAs representing 233,147 shares of restricted common stock to its directors and employees. During the same period, RSAs representing 166,770 shares of restricted stock vested and RSAs representing 53,092 shares were forfeited. In connection with the vesting of RSAs, the Company repurchased 82,321 shares as a result of participant elections to surrender common shares to the Company to satisfy statutory tax withholding obligations under the Company’s equity-based compensation plans. As of June 30, 2022, the Company had 450,709 shares of restricted common stock outstanding.

The Company’s RSUs granted in 2019 through 2022 contain both a market condition and a performance condition as well as a service condition. The Company values the RSUs with a market condition using a Monte Carlo simulation model and values the RSUs with a performance condition based on the fair value of the awards expected to be earned and recognizes those amounts in general and administrative expense on a tranche-by-tranche basis ratably over the vesting periods. During the six months ended June 30, 2022, the Company awarded 629,307 RSUs to its executive officers. In connection with the vesting of 297,605 RSUs, the Company repurchased 120,475 shares during the six months ended June 30, 2022 as a result of participant elections to surrender common shares to the Company to satisfy statutory tax withholding obligations under the Company’s equity-based compensation plan. As of June 30, 2022, there were 1,635,061 RSUs outstanding.
Income Taxes

Income Taxes

As a REIT, the Company generally will not be subject to federal income tax. It is still subject, however, to state and local income taxes and to federal income and excise tax on its undistributed income. STORE Investment Corporation is the Company’s wholly owned taxable REIT subsidiary (TRS) created to engage in non-qualifying REIT activities. The TRS is subject to federal, state and local income taxes.

Management of the Company determines whether any tax positions taken or expected to be taken meet the “more-likely-than-not” threshold of being sustained by the applicable federal, state or local tax authority. Certain state tax returns filed for 2017 and tax returns filed for 2018 through 2021 are subject to examination by these jurisdictions. As of June 30, 2022, management concluded that there is no tax liability relating to uncertain income tax positions. The Company’s policy is to recognize interest related to any underpayment of income taxes as interest expense and to recognize any penalties as general and administrative expense. There was no accrual for interest or penalties at June 30, 2022 or December 31, 2021.
Net Income Per Common Share

Net Income Per Common Share

Net income per common share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings Per Share. The guidance requires the classification of the Company’s unvested restricted common shares, which contain rights to receive non-forfeitable dividends, as participating securities requiring the two-class method of computing net income per common share. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per common share (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30,

​

Six Months Ended June 30,

 

​

​

2022

​

2021

​

2022

​

2021

 

Numerator:

    

​

    

    

​

    

    

​

    

    

​

    

​

Net income

​

$

90,505

​

$

62,431

​

$

177,527

​

$

117,391

​

Less: Earnings attributable to unvested restricted shares

​

 

(147)

​

 

(213)

​

 

(249)

​

 

(440)

​

Net income used in basic and diluted income per share

​

$

90,358

​

$

62,218

​

$

177,278

​

$

116,951

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average common shares outstanding

​

 

281,296,858

​

 

270,909,151

​

 

278,396,475

​

 

268,961,123

​

Less: Weighted average number of shares of unvested restricted stock

​

 

(457,466)

​

 

(615,596)

​

​

(459,021)

​

 

(620,149)

​

Weighted average shares outstanding used in basic income per share

​

 

280,839,392

​

 

270,293,555

​

 

277,937,454

​

 

268,340,974

​

Effects of dilutive securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

Add: Treasury stock method impact of potentially dilutive securities (a)

​

 

—

​

 

—

​

 

—

​

 

—

​

Weighted average shares outstanding used in diluted income per share

​

 

280,839,392

​

 

270,293,555

​

 

277,937,454

​

 

268,340,974

​

(a)For the three months ended June 30, 2022 and 2021, excludes 58,294 shares and 208,824 shares, respectively, and for the six months ended June 30, 2022 and 2021, excludes 108,048 shares and 229,285 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or the SEC. The Company adopts the new pronouncements as of the specified effective date. When permitted, the Company may elect to early adopt the new pronouncements. Unless otherwise discussed, these new accounting pronouncements include technical corrections to existing guidance or introduce new guidance related to specialized industries or entities and, therefore, will have minimal, if any, impact on the Company’s financial position, results of operations or cash flows upon adoption.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the first quarter of 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
v3.22.2
Summary of Significant Accounting Principles (Tables)
 6 Months Ended
Jun. 30, 2022
Summary of Significant Accounting Principles  
Reconciliation of the numerator and denominator used in the computation of basic and diluted income per common share The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per common share (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30,

​

Six Months Ended June 30,

 

​

​

2022

​

2021

​

2022

​

2021

 

Numerator:

    

​

    

    

​

    

    

​

    

    

​

    

​

Net income

​

$

90,505

​

$

62,431

​

$

177,527

​

$

117,391

​

Less: Earnings attributable to unvested restricted shares

​

 

(147)

​

 

(213)

​

 

(249)

​

 

(440)

​

Net income used in basic and diluted income per share

​

$

90,358

​

$

62,218

​

$

177,278

​

$

116,951

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average common shares outstanding

​

 

281,296,858

​

 

270,909,151

​

 

278,396,475

​

 

268,961,123

​

Less: Weighted average number of shares of unvested restricted stock

​

 

(457,466)

​

 

(615,596)

​

​

(459,021)

​

 

(620,149)

​

Weighted average shares outstanding used in basic income per share

​

 

280,839,392

​

 

270,293,555

​

 

277,937,454

​

 

268,340,974

​

Effects of dilutive securities:

​

​

​

​

​

​

​

​

​

​

​

​

​

Add: Treasury stock method impact of potentially dilutive securities (a)

​

 

—

​

 

—

​

 

—

​

 

—

​

Weighted average shares outstanding used in diluted income per share

​

 

280,839,392

​

 

270,293,555

​

 

277,937,454

​

 

268,340,974

​

(a)For the three months ended June 30, 2022 and 2021, excludes 58,294 shares and 208,824 shares, respectively, and for the six months ended June 30, 2022 and 2021, excludes 108,048 shares and 229,285 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.
v3.22.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2022
Investments.  
Schedule of gross real estate and loan activity During the six months ended June 30, 2022, the Company had the following gross real estate and other investment activity (dollars in thousands):

​

​

​

​

​

​

​

​

​

    

Number of

    

Dollar

 

​

​

Investment

​

Amount of

 

​

​

Locations

​

Investments

 

Gross investments, December 31, 2021

 

2,866

​

$

10,748,937

​

Acquisition of and additions to real estate (a) (b)

 

156

​

​

842,044

​

Investment in loans and financing receivables

 

17

​

​

62,369

​

Sales of real estate

 

(24)

​

​

(107,764)

​

Principal collections on loans and financing receivables (b)

​

(3)

​

​

(58,913)

​

Net change in operating ground lease assets (c)

​

​

​

​

(717)

​

Provisions for impairment

​

​

​

​

(6,212)

​

Other

​

​

​

​

(7,521)

​

Gross investments, June 30, 2022 (d)

​

​

​

 

11,472,223

​

Less accumulated depreciation and amortization (d)

​

​

​

 

(1,292,202)

​

Net investments, June 30, 2022

 

3,012

​

$

10,180,021

​

(a)Excludes $19.1 million of tenant improvement advances disbursed in 2022 which were accrued as of December 31, 2021.
(b)Includes $8.9 million relating to a mortgage loan receivable which was repaid in full through a non-cash transaction in which the Company acquired the underlying collateral property (buildings and improvements) and leased them back to a customer.
(c)Represents amortization recognized on operating ground lease assets during the six months ended June 30, 2022.
(d)Includes the dollar amount of investments ($25.5 million) and the accumulated depreciation ($2.3 million) related to real estate investments held for sale at June 30, 2022.
Schedule of revenue recognized from investment portfolio

The following table summarizes the revenues the Company recognized from its investment portfolio (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30,

​

Six Months Ended June 30,

 

​

    

2022

    

2021

    

2022

    

2021

 

Rental revenues:

​

​

    

    

​

    

​

​

    

    

​

    

​

Operating leases (a)(c)

​

$

209,882

​

$

180,004

​

$

411,774

​

$

349,320

​

Sublease income - operating ground leases (b)

​

​

703

​

​

702

​

​

1,406

​

​

1,405

​

Amortization of lease related intangibles and costs

​

 

(591)

​

 

(542)

​

 

(1,125)

​

 

(1,233)

​

Total rental revenues

​

$

209,994

​

$

180,164

​

$

412,055

​

$

349,492

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income on loans and financing receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage and other loans receivable (c)

​

$

5,877

​

$

5,191

​

$

13,756

​

$

11,120

​

Sale-leaseback transactions accounted for as financing arrangements

​

 

5,686

​

 

4,464

​

 

11,013

​

 

8,560

​

Direct financing receivables

​

 

1,476

​

 

2,005

​

 

3,200

​

 

4,543

​

Total interest income on loans and financing receivables

​

$

13,039

​

$

11,660

​

$

27,969

​

$

24,223

​

(a)For the three months ended June 30, 2022 and 2021, includes $711,000 and $624,000, respectively, of property tax tenant reimbursement revenue and includes $0.3 million and $3.1 million, respectively, of variable lease revenue. For the six months ended June 30, 2022 and 2021, includes $1.4 million and $1.2 million, respectively, of property tax reimbursement revenue and includes $0.8 million and $6.2 million, respectively, of variable lease revenue.
(b)Represents total revenue recognized for the sublease of properties subject to operating ground leases to the related tenants; includes both payments made by the tenants to the ground lessors and straight-line revenue recognized for scheduled increases in the sublease rental payments.
(c)For the three and six months ended June 30, 2022, includes $0.3 million and $1.0 million, respectively, of revenue that has been recognized related to rent and financing relief arrangements granted as a result of the COVID-19 pandemic with a corresponding increase in receivables which are included in other assets, net on the condensed consolidated balance sheets. For the three and six months ended June 30, 2021, includes $2.9 million and $4.9 million, respectively, of revenue related to COVID-19 rent and financing relief arrangements.
Schedule of investment portfolio diversification by industry

The following table shows information regarding the diversification of the Company’s total investment portfolio among the different industries in which its tenants and borrowers operate as of June 30, 2022 (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

    

​

    

​

​

    

Percentage of

 

​

​

Number of

​

Dollar

​

Total Dollar

 

​

​

Investment

​

Amount of

​

Amount of

 

​

​

Locations

​

Investments

​

Investments

 

Restaurants

 

759

​

$

1,330,875

 

12

% 

Automotive repair and maintenance

 

253

​

​

674,775

 

6

​

Early childhood education centers

 

279

​

​

657,557

 

6

​

Metal fabrication

 

114

​

​

652,881

 

6

​

Health clubs

 

94

​

​

599,714

 

5

​

Furniture stores

​

65

​

​

425,003

​

4

​

Farm and ranch supply stores

 

41

​

​

377,293

 

3

​

All other service industries

 

1,038

​

​

3,956,364

 

34

​

All other retail industries

 

154

​

​

1,137,374

 

10

​

All other manufacturing industries

 

215

​

​

1,660,387

 

14

​

Total (a)

 

3,012

​

$

11,472,223

 

100

% 

(a)Includes the dollar amount of investments ($25.5 million) related to real estate investments held for sale at June 30, 2022.
Schedule of future minimum rentals to be received under operating leases

Scheduled future minimum rentals to be received under the remaining noncancelable term of the operating leases in place as of June 30, 2022, are as follows (in thousands):

​

​

​

​

​

Remainder of 2022

​

$

428,853

​

2023

​

​

858,487

​

2024

​

 

851,339

​

2025

​

 

847,880

​

2026

​

 

841,577

​

2027

​

​

829,838

​

Thereafter

​

 

6,714,451

​

Total future minimum rentals (a)

​

$

11,372,425

​

(a)Excludes future minimum rentals to be received under lease contracts associated with sale-leaseback transactions accounted for as financing arrangements. See Loans and Financing Receivables section below.
Schedule detailing intangible lease assets and related accumulated amortization

The following details intangible lease assets and related accumulated amortization (in thousands):

​

​

​

​

​

​

​

​

​

    

June 30,

    

December 31,

 

​

​

2022

​

2021

​

In-place leases

​

$

42,683

​

$

35,522

​

Ground lease-related intangibles

​

 

19,449

​

 

19,449

​

Total intangible lease assets

​

 

62,132

​

 

54,971

​

Accumulated amortization

​

 

(25,531)

​

 

(25,285)

​

Net intangible lease assets

​

$

36,601

​

$

29,686

​
Summary of future minimum lease payments

The future minimum lease payments to be paid under the operating ground leases as of June 30, 2022 were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

Ground

    

​

​

 

​

​

Ground

​

Leases

​

​

​

​

​

​

Leases

​

Paid by

​

​

​

​

​

​

Paid by

​

STORE Capital's

​

​

​

​

​

​

STORE Capital

​

Tenants (a)

​

Total

 

Remainder of 2022

​

$

200

​

$

1,569

​

$

1,769

​

2023

​

​

4,149

​

​

2,629

​

​

6,778

​

2024

​

 

55

​

 

2,711

​

 

2,766

​

2025

​

 

57

​

 

2,395

​

 

2,452

​

2026

​

 

57

​

 

2,233

​

 

2,290

​

2027

​

​

57

​

​

2,227

​

​

2,284

​

Thereafter

​

 

3,014

​

 

42,282

​

 

45,296

​

Total lease payments

​

​

7,589

​

​

56,046

​

​

63,635

​

Less imputed interest

​

 

(2,790)

​

 

(27,498)

​

 

(30,288)

​

Total operating lease liabilities - ground leases

​

$

4,799

​

$

28,548

​

$

33,347

​

(a)STORE Capital’s tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event the tenant fails to make the required ground lease payments, the Company would be primarily responsible for the payment, assuming the Company does not re-tenant the property or sell the leasehold interest. Of the total $56.0 million commitment, $19.0 million is due for periods beyond the current term of the Company’s leases with the tenants. Amounts exclude contingent rent due under three leases where the ground lease payment, or a portion thereof, is based on the level of the tenant’s sales.
Schedule summarizing loans and direct financing receivables

The Company’s loans and financing receivables are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest

​

Maturity

​

June 30,

​

December 31,

 

Type

​

Rate (a)

​

Date

​

2022

​

2021

 

Six mortgage loans receivable

​

7.98

%  

​

2022 - 2026

​

$

114,171

​

$

114,911

​

Three mortgage loans receivable

 

8.83

%  

​

2032 - 2036

​

 

11,674

​

 

14,444

​

Fourteen mortgage loans receivable (b)

 

8.51

%  

​

2051 - 2062

​

 

193,008

​

 

216,547

​

Total mortgage loans receivable

​

​

​

​

​

​

 

318,853

​

 

345,902

​

Equipment and other loans receivable

​

7.34

%  

​

2022 - 2036

​

​

18,386

​

​

25,409

​

Total principal amount outstanding—loans receivable

​

​

​

​

​

​

 

337,239

​

 

371,311

​

Unamortized loan origination costs

​

​

​

​

​

​

 

963

​

 

1,046

​

Sale-leaseback transactions accounted for as financing arrangements (c)

​

7.51

%  

​

2034 - 2043

​

​

316,180

​

​

255,483

​

Direct financing receivables

​

​

​

​

​

​

 

61,063

​

 

78,637

​

Allowance for credit and loan losses (d)

​

​

​

​

​

​

​

(5,259)

​

​

(9,208)

​

Total loans and financing receivables

​

​

​

​

​

​

$

710,186

​

$

697,269

​

(a)Represents the weighted average interest rate as of the balance sheet date.
(b)Four of these mortgage loans allow for prepayment in whole, but not in part, with penalties ranging from 20% to 70% depending on the timing of the prepayment.
(c)In accordance with ASC Topic 842, represents sale-leaseback transactions accounted for as financing arrangements rather than as investments in real estate subject to operating leases. Interest rate shown is the weighted average initial rental or capitalization rate on the leases; the leases mature between 2034 and 2043 and the purchase options expire between 2024 and 2042.
(d)Balance includes $2.5 million of loan loss reserves recognized prior to December 31, 2019, $2.5 million credit loss reserves recognized upon the adoption of ASC Topic 326 on January 1, 2020 and an aggregate $3.9 million of credit losses recognized since the adoption of ASC Topic 326 net of $3.7 million of loans that were written-off against previously established reserves.
Schedule of maturities of loans receivable Absent prepayments, scheduled maturities are expected to be as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Scheduled

    

​

    

​

 

​

​

Principal

​

Balloon

​

Total

​

​

​

Payments

​

Payments

​

Payments

 

Remainder of 2022

​

$

1,524

​

$

25,292

​

$

26,816

​

2023

​

​

3,221

​

​

78,479

​

​

81,700

​

2024

​

 

2,121

​

 

—

​

 

2,121

​

2025

​

 

1,916

​

 

—

​

 

1,916

​

2026

​

 

1,877

​

 

20,371

​

 

22,248

​

2027

​

​

1,576

​

​

548

​

​

2,124

​

Thereafter

​

 

182,139

​

 

18,175

​

 

200,314

​

Total principal payments

​

$

194,374

​

$

142,865

​

$

337,239

​
Schedule of future payments to be received under sale-leaseback transactions accounted for as financing arrangements The scheduled future minimum rentals to be received under these agreements (which will be reflected in interest income) as of June 30, 2022, were as follows (in thousands):

​

​

​

​

​

​

Remainder of 2022

​

$

12,114

​

2023

​

​

24,289

​

2024

​

 

24,436

​

2025

​

 

24,589

​

2026

​

 

24,697

​

2027

​

​

24,812

​

Thereafter

​

 

295,257

​

Total future scheduled payments

​

$

430,194

​
Schedule of the components of the investments accounted for as direct financing receivables

As of both June 30, 2022 and December 31, 2021, the Company had $61.1 million and $78.6 million, respectively, of investments accounted for as direct financing leases under previous accounting guidance; the components of these investments were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

June 30,

    

December 31,

​

​

​

2022

​

2021

​

Minimum lease payments receivable

​

$

123,031

    

$

159,371

​

Estimated residual value of leased assets

​

 

6,889

​

 

8,938

​

Unearned income

​

 

(68,857)

​

 

(89,672)

​

Net investment

​

$

61,063

​

$

78,637

​
v3.22.2
Debt (Tables)
 6 Months Ended
Jun. 30, 2022
Schedule of maturities of long-term debt

As of June 30, 2022, the scheduled maturities, including balloon payments, on the Company’s aggregate long-term debt obligations are as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

Scheduled

    

​

    

​

 

​

​

Principal

​

Balloon

​

​

​

​

​

Payments

​

Payments

​

Total

 

Remainder of 2022

​

$

11,576

​

$

79,750

​

$

91,326

​

2023

​

​

22,866

​

​

22,182

​

​

45,048

​

2024

​

 

22,154

​

 

293,798

​

 

315,952

​

2025

​

 

20,037

​

 

256,612

​

 

276,649

​

2026

​

 

17,926

​

 

532,142

​

 

550,068

​

2027

​

​

9,506

​

​

860,472

​

​

869,978

​

Thereafter

​

 

30,702

​

 

2,495,850

​

 

2,526,552

​

​

​

$

134,767

​

$

4,540,806

​

$

4,675,573

​
Senior Unsecured Notes And Term Loans Payable  
Schedule of debt

The Company’s senior unsecured notes and term loans payable are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Maturity

​

Interest

​

 

June 30,

​

December 31,

 

​

​

Date

​

Rate

​

 

2022

​

2021

 

Notes Payable:

​

​

​

​

​

​

​

​

​

​

​

​

​

Series A issued November 2015

​

Nov. 2022

​

4.95

%  

​

​

$

75,000

​

$

75,000

​

Series B issued November 2015

​

Nov. 2024

​

5.24

%  

​

​

​

100,000

​

​

100,000

​

Series C issued April 2016

​

Apr. 2026

​

4.73

%  

​

​

​

200,000

​

​

200,000

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Public Notes issued March 2018

​

Mar. 2028

​

4.50

%  

​

​

​

350,000

​

​

350,000

​

Public Notes issued February 2019

​

Mar. 2029

​

4.625

%  

​

​

​

350,000

​

​

350,000

​

Public Notes issued November 2020

​

Nov. 2030

​

2.75

%  

​

​

​

350,000

​

​

350,000

​

Public Notes issued November 2021

​

Dec. 2031

​

2.70

%  

​

​

​

375,000

​

​

375,000

​

Total notes payable

​

​

​

​

​

​

​

​

1,800,000

​

​

1,800,000

​

Term Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

Term Loan issued April 2022

​

Apr. 2027

​

3.58

% (a) 

​

​

​

400,000

​

​

—

​

Term Loan issued April 2022

​

Apr. 2029

​

3.88

% (b)

​

​

​

200,000

​

​

—

​

Total term loans

​

​

​

​

​

​

​

​

600,000

​

​

—

​

Unamortized discount

​

​

​

​

​

​

​

​

(4,427)

​

​

(4,740)

​

Unamortized deferred financing costs

​

​

​

​

​

​

​

​

(14,373)

​

​

(12,447)

​

Total unsecured notes and term loans payable, net

​

​

​

​

​

​

​

$

2,381,200

​

$

1,782,813

​

(a)Loan is a floating-rate loan which resets daily at Daily Simple SOFR + an adjustment of 0.10% + the applicable credit spread which was 0.95% at June 30, 2022. The Company has entered into six interest rate swap agreements that effectively convert the floating rate to the fixed rate noted as of June 30, 2022.
(b)Loan is a floating-rate loan which resets daily at Daily Simple SOFR + an adjustment of 0.10% + the applicable credit spread which was 1.25% at June 30, 2022. The Company has entered into one interest rate swap agreement that effectively converts the floating rate to the fixed rate noted as of June 30, 2022.
Non-recourse debt obligations  
Schedule of debt

The Company’s non-recourse debt obligations of consolidated special purpose entity subsidiaries are summarized below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Maturity

​

Interest

 

June 30,

​

December 31,

 

​

​

Date

​

Rate

 

2022

​

2021

 

Non-recourse net-lease mortgage notes:

    

    

    

    

    

​

​

​

​

 

    

​

$140,000 Series 2014-1, Class A-2 (a)

 

​

 

5.00

%  

​

$

—

​

$

134,692

​

$150,000 Series 2018-1, Class A-1

​

Oct. 2024 (b)

​

3.96

%  

​

​

141,302

​

​

142,051

​

$50,000 Series 2018-1, Class A-3

​

Oct. 2024 (b)

​

4.40

%  

​

​

48,667

​

​

48,917

​

$270,000 Series 2015-1, Class A-2

​

Apr. 2025 (b)

​

4.17

%  

​

​

260,325

​

​

260,999

​

$200,000 Series 2016-1, Class A-1 (2016)

​

Oct. 2026 (b)

​

3.96

%  

​

​

178,047

​

​

180,190

​

$82,000 Series 2019-1, Class A-1

​

Nov. 2026 (b)

​

2.82

%

​

​

78,385

​

​

78,590

​

$46,000 Series 2019-1, Class A-3

​

Nov. 2026 (b)

​

3.32

%

​

​

45,406

​

​

45,521

​

$135,000 Series 2016-1, Class A-2 (2017)

​

Apr. 2027 (b)

​

4.32

%  

​

​

121,628

​

​

123,046

​

$228,000 Series 2018-1, Class A-2

​

Oct. 2027 (c)

​

4.29

%  

​

​

214,778

​

​

215,918

​

$164,000 Series 2018-1, Class A-4

​

Oct. 2027 (c)

​

4.74

%  

​

​

159,627

​

​

160,447

​

$168,500 Series 2021-1, Class A-1

​

Jun. 2028 (b)

​

2.12

%  

​

​

167,658

​

​

168,079

​

$89,000 Series 2021-1, Class A-3

​

Jun. 2028 (b)

​

2.86

%  

​

​

88,555

​

​

88,778

​

$168,500 Series 2021-1, Class A-2

​

Jun. 2033 (c)

​

2.96

%  

​

​

167,658

​

​

168,079

​

$89,000 Series 2021-1, Class A-4

​

Jun. 2033 (c)

​

3.70

%  

​

​

88,555

​

​

88,778

​

$244,000 Series 2019-1, Class A-2

​

Nov. 2034 (c)

​

3.65

%

​

​

233,244

​

​

233,854

​

$136,000 Series 2019-1, Class A-4

​

Nov. 2034 (c)

​

4.49

%

​

​

134,243

​

​

134,583

​

Total non-recourse net-lease mortgage notes

​

​

​

​

​

​

​

2,128,078

​

​

2,272,522

​

Non-recourse mortgage notes:

​

​

​

​

​

​

​

​

​

​

​

​

$13,000 note issued May 2012

 

​

 

5.195

%  

​

 

—

​

 

9,961

​

$26,000 note issued August 2012

 

​

 

5.05

%  

​

 

—

​

 

20,085

​

$6,400 note issued November 2012

 

Dec. 2022

 

4.707

%  

​

 

4,836

​

 

4,938

​

$11,895 note issued March 2013

 

Apr. 2023

 

4.7315

%  

​

 

9,124

​

 

9,309

​

$17,500 note issued August 2013

 

Sept. 2023

 

5.46

%  

​

 

13,959

​

 

14,212

​

$10,075 note issued March 2014

 

Apr. 2024

 

5.10

%  

​

 

8,706

​

 

8,808

​

$65,000 note issued June 2016

​

Jul. 2026

​

4.75

%

​

​

58,605

​

​

59,223

​

$41,690 note issued March 2019

​

Mar. 2029

​

4.80

%

​

​

40,977

​

​

41,291

​

$6,944 notes issued March 2013

 

Apr. 2038

 

4.50

% (d)

​

 

5,238

​

 

5,332

​

$6,350 notes issued March 2019 (assumed in December 2020)

​

Apr. 2049

​

4.64

%

​

​

6,050

​

​

6,106

​

Total non-recourse mortgage notes

​

​

​

​

​

​

​

147,495

​

​

179,265

​

Unamortized discount

​

​

​

​

​

​

 

(436)

​

 

(496)

​

Unamortized deferred financing costs

​

​

​

​

​

​

​

(22,470)

​

 

(25,583)

​

Total non-recourse debt obligations of consolidated special purpose entities, net

​

​

​

​

​

​

$

2,252,667

​

$

2,425,708

​

(a)Notes were repaid, without penalty, in April 2022 using a portion of the proceeds from the aggregate $600.0 million of term loans the Company entered into in April 2022.
(b)Prepayable, without penalty, 24 months prior to maturity.
(c)Prepayable, without penalty, 36 months prior to maturity.
(d)Interest rate is effective until March 2023 and will reset to the lender’s then prevailing interest rate.
v3.22.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity  
Common stock issuance

The following tables outline the common stock issuances under the 2020 ATM Program (in millions except share and per share information):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2022

Shares Sold

​

Weighted Average Price per Share

​

Gross Proceeds

    

Sales Agents' Commissions

 

Other Offering Expenses

 

Net Proceeds

3,068,633

​

$

27.52

​

$

84.4

​

$

(0.9)

​

$

(0.1)

​

$

83.4

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2022

Shares Sold

​

Weighted Average Price per Share

​

Gross Proceeds

    

Sales Agents' Commissions

 

Other Offering Expenses

 

Net Proceeds

8,607,771

​

$

29.38

​

$

252.9

​

$

(3.1)

​

$

(0.2)

​

$

249.6

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Inception of Program Through June 30, 2022

Shares Sold

​

Weighted Average Price per Share

​

Gross Proceeds

    

Sales Agents' Commissions

 

Other Offering Expenses

 

Net Proceeds

19,449,302

​

$

31.55

​

$

613.7

​

$

(8.5)

​

$

(0.8)

​

$

604.4
v3.22.2
Summary of Significant Accounting Principles (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
agreement
instrument
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
instrument
item
segment
agreement
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Basis of Accounting and Principles of Consolidation          
Assets owned $ 10,326,492   $ 10,326,492   $ 9,773,082
Liabilities owed 4,965,170   $ 4,965,170   4,628,953
Segment Reporting          
Number of reportable segments | segment     1    
Investment portfolio          
Number of transaction types | item     3    
Revenue Recognition          
Accrued straight-line rental revenue, net of allowance $ 42,900   $ 42,900   39,400
Leases indexed to increases in the CPI, minimum adjustment period     1 year    
Leases indexed to increases in the CPI, minimum multiplier increasing rent (in multipliers)     1    
Leases indexed to increases in the CPI, maximum multiplier increasing rent (in multipliers)     1.25    
Portion of investment portfolio subject to contingent rent based upon tenant sales (as a percent) 3.70%   3.70%    
Contingent rent as a percentage of rental revenue, historical 2.00%   2.00%    
Impairments          
Provisions for impairment $ 5,300 $ 6,600 $ 6,500 $ 12,000  
Estimate fair value of impaired real estate assets     36,600    
Write-offs charged against allowance 3,700   3,700    
Loans Receivable          
Non accrual status loan receivables 22,100   $ 22,100   28,800
Number of classes in portfolio of loans and financing receivables | item     2    
Restricted cash          
Restricted cash included in other assets $ 1,549 89,678 $ 1,549 89,678 $ 5,800
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration] Other assets, net   Other assets, net   Other assets, net
Derivative Instruments and Hedging Activities          
Carrying amount $ 4,675,573   $ 4,675,573    
Provision For Impairment          
Loans Receivable          
Provision for loan losses     (300) 2,000  
Payment deferral due to COVID-19          
Revenue Recognition          
Revenue associated with deferral arrangements 300 2,900 1,000 4,900  
Receivables collections $ 3,800 $ 5,400 $ 7,200 $ 11,300  
Loans receivable          
Loans Receivable          
Maximum past due period for loans payments causing nonaccrual status     60 days    
Interest rate swaps          
Derivative Instruments and Hedging Activities          
Number of agreements | instrument 7   7    
Interest rate swap, due in 2029          
Derivative Instruments and Hedging Activities          
Number of agreements | instrument 1   1    
Interest rate swap, due in 2029 | Designated as hedging instrument          
Derivative Instruments and Hedging Activities          
Current notional amounts $ 200,000   $ 200,000    
Carrying amount $ 200,000   $ 200,000    
Interest rate swap, due in 2027 | Designated as hedging instrument          
Derivative Instruments and Hedging Activities          
Number of agreements | agreement 6   6    
Current notional amounts $ 400,000   $ 400,000    
Carrying amount 400,000   $ 400,000    
Buildings | Maximum          
Accounting for Real Estate Investments          
Estimated useful life     40 years    
Buildings | Minimum          
Accounting for Real Estate Investments          
Estimated useful life     30 years    
Land improvements          
Accounting for Real Estate Investments          
Estimated useful life     15 years    
Consolidated special purpose entities          
Basis of Accounting and Principles of Consolidation          
Assets owned 9,100,000   $ 9,100,000   $ 8,500,000
Liabilities owed $ 2,400,000   $ 2,400,000   $ 2,600,000
v3.22.2
Summary of Significant Accounting Principles - Share Based Compensation and Other (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Income Tax Examination, Penalties and Interest Accrued          
Uncertain income tax positions $ 0   $ 0    
Accrual for interest or penalties 0   0   $ 0
Numerator:          
Net income 90,505,000 $ 62,431,000 177,527,000 $ 117,391,000  
Less: earnings attributable to unvested restricted shares (147,000) (213,000) (249,000) (440,000)  
Net income used in basic and diluted income per share $ 90,358,000 $ 62,218,000 $ 177,278,000 $ 116,951,000  
Denominator:          
Weighted average common shares outstanding 281,296,858 270,909,151 278,396,475 268,961,123  
Less: Weighted average number of shares of unvested restricted stock (in shares) (457,466) (615,596) (459,021) (620,149)  
Weighted average shares outstanding used in basic income per share (in shares) 280,839,392 270,293,555 277,937,454 268,340,974  
Effects of dilutive securities:          
Weighted average shares outstanding used in diluted income per share (in shares) 280,839,392 270,293,555 277,937,454 268,340,974  
Antidilutive unvested restricted shares (in shares) 58,294 208,824 108,048 229,285  
Restricted Stock          
Sharebased Compensation          
Granted in period (in shares)     233,147    
Shares vested (shares)     166,770    
Forfeited in period (in shares)     53,092    
Shares repurchased in connection with tax withholding obligations (in shares)     82,321    
Outstanding (in shares) 450,709   450,709    
Restricted stock units          
Sharebased Compensation          
Shares vested (shares)     297,605    
Shares repurchased in connection with tax withholding obligations (in shares)     120,475    
Restricted stock units | Executive Officer | Vesting Based On Service And Market Conditions          
Sharebased Compensation          
Granted in period (in shares)     629,307    
Outstanding (in shares) 1,635,061   1,635,061    
v3.22.2
Investments - Locations (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
property
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
property
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
property
Number of property locations of investments (in locations) | property 3,012   3,012   2,866
Number of owned properties (in properties) | property 2,960   2,960    
Number of properties accounted as financing arrangements | property 90   90    
Number of properties owned as direct financing receivables | property 22   22    
Number of ground lease interests (in properties) | property 24   24    
Number of properties which secure certain mortgage loans (in properties) | property 28   28    
Gross acquisition cost of real estate investments $ 10,700,000   $ 10,700,000    
Loans and financing receivables, net 710,186   710,186   $ 697,269
Operating ground lease assets $ 32,601   $ 32,601   33,318
Investments assets of consolidated special purpose entity subsidiaries and are pledged as collateral under the non-recourse obligations of these special purpose entities     34.00%    
Number of Investment Locations          
Gross investments | property     2,866    
Acquisition of and additions to real estate | property     156    
Investment in loans and financing receivables | property     17    
Sales of real estate | property     (24)    
Principal collections on loans and direct financing receivables | property     (3)    
Gross investments | property 3,012   3,012    
Dollar Amount of Investments          
Gross investments     $ 10,748,937    
Acquisition of and additions to real estate     842,044    
Investment in loans and financing receivables     62,369    
Sales of real estate     (107,764)    
Principal collections on loans and direct financing receivables     58,913    
Operating ground lease assets, net $ 32,601   32,601   33,318
Provisions for impairment (5,300) $ (6,600) (6,212) $ (13,950)  
Other     (7,521)    
Gross investments 11,472,223   11,472,223    
Less accumulated depreciation and amortization (1,292,202)   (1,292,202)    
Net investments 10,180,021   10,180,021   9,587,740
Tenant improvement advances disbursed     19,100    
Non-cash principal collections related to loans receivable     8,900    
Sale-leaseback transactions accounted for as financing arrangements 316,200   316,200   $ 255,500
Investment in real estate held for sale 25,500   25,500    
Accumulated depreciation of real estate investments held for sale 2,300   2,300    
Ground leases          
Operating ground lease assets 32,600   32,600    
Dollar Amount of Investments          
Operating ground lease assets, net $ 32,600   32,600    
Net change in operating ground lease assets     $ (717)    
v3.22.2
Investments - Revenue Recognized from Investment Portfolio (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Rental revenues:        
Operating leases $ 209,882,000 $ 180,004,000 $ 411,774,000 $ 349,320,000
Sublease income - operating ground lease assets 703,000 702,000 1,406,000 1,405,000
Amortization of lease related intangibles and costs (591,000) (542,000) (1,125,000) (1,233,000)
Total rental revenues 209,994,000 180,164,000 412,055,000 349,492,000
Interest income on loans and financing receivables:        
Mortgage and other loans receivable 5,877,000 5,191,000 13,756,000 11,120,000
Sale-leaseback transactions accounted for as financing arrangements 5,686,000 4,464,000 11,013,000 8,560,000
Direct financing receivables 1,476,000 2,005,000 3,200,000 4,543,000
Total interest income on loans and financing receivables 13,039,000 11,660,000 27,969,000 24,223,000
Property tax tenant reimbursement revenue 711,000 624,000 1,400,000 1,200,000
Variable lease revenue 300,000 3,100,000 800,000 6,200,000
Payment deferral due to COVID-19        
Rental revenues:        
Total rental revenues $ 300,000 $ 2,900,000 $ 1,000,000.0 $ 4,900,000
v3.22.2
Investments - Significant Credit and Revenue Concentration (Details)
 6 Months Ended
Jun. 30, 2022
state
item
Real estate investment portfolio | Geographic concentration  
Significant Credit and Revenue Concentration  
Number of states over which real estate investments are dispersed (in states) | state 49
Concentration Percentage for threshold 10.00%
Real estate investment portfolio | Geographic concentration | Minimum  
Significant Credit and Revenue Concentration  
Number of customers 579
Real estate investment portfolio | Geographic concentration | Texas  
Significant Credit and Revenue Concentration  
Concentration Percentage 11.00%
Number of states accounting for 10% or more | state 1
Real estate investment portfolio | Customer concentration  
Significant Credit and Revenue Concentration  
Concentration Percentage for threshold 10.00%
Number of customers representing more than 10% 0
Real estate investment portfolio | Customer concentration | Largest customer, investment portfolio  
Significant Credit and Revenue Concentration  
Concentration Percentage 2.80%
Real estate investment portfolio | Concept concentration  
Significant Credit and Revenue Concentration  
Number of concepts (in categories) 910
Investment portfolio revenues | Customer concentration | Largest customer, investment portfolio revenues  
Significant Credit and Revenue Concentration  
Concentration Percentage 2.90%
Investment portfolio revenues | Concept concentration | Maximum  
Significant Credit and Revenue Concentration  
Concentration Percentage 2.10%
v3.22.2
Investments - Portfolio Diversification (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
property
Dec. 31, 2021
USD ($)
property
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 3,012 2,866
Dollar Amount of Investments $ 11,472,223 $ 10,748,937
Percentage of Total Dollar Amount of Investments 100.00%  
Investment in real estate held for sale $ 25,500  
Restaurants    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 759  
Dollar Amount of Investments $ 1,330,875  
Percentage of Total Dollar Amount of Investments 12.00%  
Automotive Repair and Maintenance    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 253  
Dollar Amount of Investments $ 674,775  
Percentage of Total Dollar Amount of Investments 6.00%  
Early childhood education centers    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 279  
Dollar Amount of Investments $ 657,557  
Percentage of Total Dollar Amount of Investments 6.00%  
Metal fabrication    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 114  
Dollar Amount of Investments $ 652,881  
Percentage of Total Dollar Amount of Investments 6.00%  
Health Clubs    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 94  
Dollar Amount of Investments $ 599,714  
Percentage of Total Dollar Amount of Investments 5.00%  
Furniture Stores    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 65  
Dollar Amount of Investments $ 425,003  
Percentage of Total Dollar Amount of Investments 4.00%  
Farm and Ranch Supply Stores    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 41  
Dollar Amount of Investments $ 377,293  
Percentage of Total Dollar Amount of Investments 3.00%  
All other service industries    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 1,038  
Dollar Amount of Investments $ 3,956,364  
Percentage of Total Dollar Amount of Investments 34.00%  
All other retail industries    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 154  
Dollar Amount of Investments $ 1,137,374  
Percentage of Total Dollar Amount of Investments 10.00%  
All other manufacturing industries    
Information regarding the diversification of Company's investment portfolio among different industries [Line items]    
Number of Investment Locations | property 215  
Dollar Amount of Investments $ 1,660,387  
Percentage of Total Dollar Amount of Investments 14.00%  
v3.22.2
Investments - Intangible Lease Assets and Real Estate Investments (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
Options
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
property
Options
item
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Accounting for Real Estate Investments          
Remaining noncancelable lease term     13 years 2 months 12 days    
Number of real estate properties vacant not subject to lease | property     16    
Future minimum rentals to be received under the remaining noncancelable term of the operating leases          
Remainder of 2022 $ 428,853   $ 428,853    
2023 858,487   858,487    
2024 851,339   851,339    
2025 847,880   847,880    
2026 841,577   841,577    
2027 829,838   829,838    
Thereafter 6,714,451   6,714,451    
Total future minimum rentals 11,372,425   $ 11,372,425    
Term of renewal options     5 years    
Intangible lease assets 62,132   $ 62,132   $ 54,971
Accumulated amortization (25,531)   (25,531)   (25,285)
Net intangible lease assets 36,601   36,601   29,686
Amortization in the next five years          
Remainder of 2022 1,900   1,900    
2023 3,500   3,500    
2024 3,000   3,000    
2025 2,500   2,500    
2026 2,300   2,300    
2027 $ 2,200   $ 2,200    
Minimum          
Future minimum rentals to be received under the remaining noncancelable term of the operating leases          
Typical number of renewal options | item     1    
Number of renewal periods at the option of the Company | Options 2   2    
Maximum          
Future minimum rentals to be received under the remaining noncancelable term of the operating leases          
Number of renewal periods at the option of the Company | Options 4   4    
Amortization expense          
Future minimum rentals to be received under the remaining noncancelable term of the operating leases          
Amount amortized $ 900 $ 900 $ 1,800 $ 1,800  
In -place leases          
Future minimum rentals to be received under the remaining noncancelable term of the operating leases          
Intangible lease assets 42,683   $ 42,683   35,522
Amortization in the next five years          
Weighted average remaining amortization period     10 years    
Ground lease interests          
Future minimum rentals to be received under the remaining noncancelable term of the operating leases          
Intangible lease assets $ 19,449   $ 19,449   $ 19,449
Amortization in the next five years          
Weighted average remaining amortization period     42 years    
Above-market leases | Decrease to rental revenue          
Future minimum rentals to be received under the remaining noncancelable term of the operating leases          
Amount amortized       $ 200  
v3.22.2
Investments - Operating Lease Asset (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
lease
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Operating ground lease assets $ 32,601,000   $ 32,601,000   $ 33,318,000
Rental revenue 703,000 $ 702,000 1,406,000 $ 1,405,000  
Future minimum lease payments          
Total operating lease liabilities - ground leases 37,035,000   37,035,000   $ 37,637,000
Ground lease by STORE capital          
Future minimum lease payments          
Long-term lease commitment 19,000,000.0   $ 19,000,000.0    
Ground lease by STORE capital tenants          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Number of ground lease payments based on level of tenant's sales | lease     3    
Ground leases          
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]          
Operating ground lease assets 32,600,000   $ 32,600,000    
Lease costs 821,000 827,000 1,600,000 1,600,000  
Rental revenue 703,000 $ 702,000 1,400,000 $ 1,400,000  
Future minimum lease payments          
Remainder of 2022 1,769,000   1,769,000    
2023 6,778,000   6,778,000    
2024 2,766,000   2,766,000    
2025 2,452,000   2,452,000    
2026 2,290,000   2,290,000    
2027 2,284,000   2,284,000    
Thereafter 45,296,000   45,296,000    
Total lease payments 63,635,000   63,635,000    
Less imputed interest (30,288,000)   (30,288,000)    
Total operating lease liabilities - ground leases 33,347,000   33,347,000    
Ground leases | Ground lease by STORE capital          
Future minimum lease payments          
Remainder of 2022 200,000   200,000    
2023 4,149,000   4,149,000    
2024 55,000   55,000    
2025 57,000   57,000    
2026 57,000   57,000    
2027 57,000   57,000    
Thereafter 3,014,000   3,014,000    
Total lease payments 7,589,000   7,589,000    
Less imputed interest (2,790,000)   (2,790,000)    
Total operating lease liabilities - ground leases 4,799,000   4,799,000    
Ground leases | Ground lease by STORE capital tenants          
Future minimum lease payments          
Remainder of 2022 1,569,000   1,569,000    
2023 2,629,000   2,629,000    
2024 2,711,000   2,711,000    
2025 2,395,000   2,395,000    
2026 2,233,000   2,233,000    
2027 2,227,000   2,227,000    
Thereafter 42,282,000   42,282,000    
Total lease payments 56,046,000   56,046,000    
Less imputed interest (27,498,000)   (27,498,000)    
Total operating lease liabilities - ground leases $ 28,548,000   $ 28,548,000    
v3.22.2
Investments - Loans and Financing Receivables (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
loan
Dec. 31, 2020
USD ($)
Jan. 01, 2020
USD ($)
Loans and direct financing receivables          
Number of mortgage loans | loan   23      
Total principal payments $ 337,239 $ 337,239      
Unamortized loan origination costs 963 963 $ 1,046    
Sale-leaseback transactions accounted for as financing arrangements 316,200 316,200 255,500    
Direct financing receivables 61,063 61,063 78,637    
Allowance for credit and loan losses (5,259) (5,259) (9,208)    
Total loans and direct financing receivables 710,186 710,186 697,269    
Credit loss reserves recognized     $ 3,900 $ 2,500  
Write-offs charged against allowance 3,700 3,700      
ASU 2016-13          
Loans and direct financing receivables          
Write-offs charged against allowance   $ 3,700      
Credit loss reserve         $ 2,500
Mortgage loans receivable with maturity range 2022 to 2026          
Loans and direct financing receivables          
Number of mortgage loans | loan   6 6    
Mortgage loans receivable with maturity range 2032 to 2036          
Loans and direct financing receivables          
Number of mortgage loans | loan   3 3    
Mortgage loans receivable with maturity range 2051 to 2060          
Loans and direct financing receivables          
Number of mortgage loans | loan   14 14    
Number of mortgage loans allowing for prepayment in whole | loan   4      
Mortgage loans receivable with maturity range 2051 to 2060 | Minimum          
Loans and direct financing receivables          
Prepayment penalties (as a percent)   20.00%      
Mortgage loans receivable with maturity range 2051 to 2060 | Maximum          
Loans and direct financing receivables          
Prepayment penalties (as a percent)   70.00%      
Loans receivable          
Loans and direct financing receivables          
Total principal payments 337,239 $ 337,239 $ 371,311    
Mortgage Loans Receivable [Member]          
Loans and direct financing receivables          
Mortgage loans receivable 318,853 $ 318,853 345,902    
Mortgage Loans Receivable [Member] | Mortgage loans receivable with maturity range 2022 to 2026          
Loans and direct financing receivables          
Stated Interest Rate (as a percent)   7.98%      
Mortgage loans receivable 114,171 $ 114,171 114,911    
Mortgage Loans Receivable [Member] | Mortgage loans receivable with maturity range 2032 to 2036          
Loans and direct financing receivables          
Stated Interest Rate (as a percent)   8.83%      
Mortgage loans receivable 11,674 $ 11,674 14,444    
Mortgage Loans Receivable [Member] | Mortgage loans receivable with maturity range 2051 to 2060          
Loans and direct financing receivables          
Stated Interest Rate (as a percent)   8.51%      
Mortgage loans receivable 193,008 $ 193,008 216,547    
Equipment And Other Loans Receivable [Member] | Equipment and other loans receivable maturity range 2022 to 2029          
Loans and direct financing receivables          
Equipment and other loans receivable 18,386 $ 18,386 25,409    
Interest rate of equipment and other loans   7.34      
Sale Leaseback Financing Arrangements [Member] | Sale-leaseback transactions accounted for financing arrangements with maturities ranging from 2034 - 2043          
Loans and direct financing receivables          
Stated Interest Rate (as a percent)   7.51%      
Sale-leaseback transactions accounted for as financing arrangements 316,180 $ 316,180 255,483    
Direct Financing Receivables [Member]          
Loans and direct financing receivables          
Direct financing receivables $ 61,063 $ 61,063 $ 78,637    
v3.22.2
Investments - Loans Receivable (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
Scheduled loan receivable maturities    
Number of loans receivable | loan 41  
Gross carrying amount of loans receivable $ 334,300  
Number of mortgage loans | loan 23  
Number of mortgage loans subject to interest rate increases | loan 10  
Number of short-term mortgage loans | loan 6  
Amortization period of long-term mortgage loans 40 years  
Remainder of 2022 $ 26,816  
2023 81,700  
2024 2,121  
2025 1,916  
2026 22,248  
2027 2,124  
Thereafter 200,314  
Total principal payments 337,239  
Sale-Leaseback Transactions Accounted for as Financing Arrangements    
Sale-leaseback transactions accounted for as financing arrangements 316,200 $ 255,500
Remainder of 2022 12,114  
2023 24,289  
2024 24,436  
2025 24,589  
2026 24,697  
2027 24,812  
Thereafter 295,257  
Total future scheduled payments 430,194  
Components of investments accounted for as direct financing receivables    
Minimum lease payments receivable 123,031 159,371
Estimated residual value of leased assets 6,889 8,938
Unearned income (68,857) (89,672)
Net investment 61,063 $ 78,637
Future minimum lease payments to be received under the direct financing lease receivables    
Remainder of 2022 3,200  
2023 6,500  
2024 6,500  
2025 6,500  
2026 6,500  
2027 6,500  
Thereafter 87,500  
Scheduled Principal Payments    
Scheduled loan receivable maturities    
Remainder of 2022 1,524  
2023 3,221  
2024 2,121  
2025 1,916  
2026 1,877  
2027 1,576  
Thereafter 182,139  
Total principal payments 194,374  
Balloon Payments    
Scheduled loan receivable maturities    
Remainder of 2022 25,292  
2023 78,479  
2026 20,371  
2027 548  
Thereafter 18,175  
Total principal payments $ 142,865  
Minimum    
Scheduled loan receivable maturities    
Long-term mortgage loans receivable prepayment penalty rate (as a percent) 1.00%  
Maximum    
Scheduled loan receivable maturities    
Long-term mortgage loans receivable prepayment penalty rate (as a percent) 20.00%  
v3.22.2
Investments - Provision for Credit Losses (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]    
Write-offs charged against allowance $ 3.7 $ 3.7
Investment Grade    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Origination for gross loan and financing receivables in 2022 0.0 0.0
Origination for gross loan and financing receivables in 2021 8.0 8.0
Origination for gross loan and financing receivables in 2020 0.0 0.0
Origination for gross loan and financing receivables in 2019 88.9 88.9
Origination for gross loan and financing receivables in 2018 0.0 0.0
Origination for gross loan and financing receivables in prior to 2018 26.4 26.4
Non Investment Grade    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Origination for gross loan and financing receivables in 2022 58.7 58.7
Origination for gross loan and financing receivables in 2021 104.6 104.6
Origination for gross loan and financing receivables in 2020 94.3 94.3
Origination for gross loan and financing receivables in 2019 146.4 146.4
Origination for gross loan and financing receivables in 2018 34.2 34.2
Origination for gross loan and financing receivables in prior to 2018 153.0 153.0
ASU 2016-13    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Provision for credit losses   0.3
Write-offs charged against allowance   3.7
Recoveries of amounts previously written off   0.0
ASU 2016-13 | Investment Grade    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and financing receivables 123.3 123.3
ASU 2016-13 | Non Investment Grade    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and financing receivables $ 591.2 $ 591.2
v3.22.2
Debt - Credit Facility (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
Apr. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Options
Jun. 30, 2022
USD ($)
agreement
loan
instrument
Jun. 30, 2022
USD ($)
agreement
loan
instrument
Dec. 31, 2021
USD ($)
Credit facilities          
Borrowings outstanding (in dollars)     $ 45,000 $ 45,000 $ 130,000
Unamortized financing costs related to all debt     14,373 14,373 12,447
Consolidated special purpose entities          
Credit facilities          
Unamortized financing costs related to all debt     22,470 22,470 25,583
Revolving credit facility          
Credit facilities          
Unamortized financing costs related to all debt     3,200 $ 3,200 $ 3,700
Senior Unsecured Notes          
Unsecured Term Notes Payable          
Contingent periodic interest rate increase for failure to maintain investment grade credit rating       1.00%  
Prepayment applied to principal plus make-whole amount (as a percent)       100.00%  
Principal amount     $ 375,000 $ 375,000  
Number of loans | loan     3 3  
Senior Unsecured Notes | Minimum          
Unsecured Term Notes Payable          
Prepayment threshold (as a percent)       5.00%  
Interest rate swaps          
Credit facilities          
Number of agreements | instrument     7 7  
New unsecured credit facility | Revolving credit facility          
Credit facilities          
Eligible unencumbered assets (in dollars)     $ 7,600,000 $ 7,600,000  
Amended unsecured revolving credit facility | Revolving credit facility          
Credit facilities          
Unsecured loan facility   $ 600,000      
Size of the facility with the accordion feature (in dollars)   $ 1,600,000      
Number of extension options | Options   2      
Maturity date   Jun. 01, 2025      
Extension option term   6 months      
Extension fee (as a percent)   0.0625%      
Borrowings outstanding (in dollars)     $ 45,000 $ 45,000  
Amended unsecured revolving credit facility | Revolving credit facility | Minimum          
Credit facilities          
Facility fee (as a percent)   0.10%      
Amended unsecured revolving credit facility | Revolving credit facility | Maximum          
Credit facilities          
Facility fee (as a percent)   0.30%   0.30%  
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR          
Credit facilities          
Debt Instrument interest rate description   LIBOR      
Credit spread (as a percent)       0.85%  
Facility fee (as a percent)       0.20%  
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR | Minimum          
Credit facilities          
Credit spread (as a percent)   0.70%      
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR | Maximum          
Credit facilities          
Credit spread (as a percent)   1.40%      
Amended unsecured revolving credit facility | Revolving credit facility | Base rate          
Credit facilities          
Debt Instrument interest rate description   Base Rate      
Amended unsecured revolving credit facility | Revolving credit facility | Base rate | Minimum          
Credit facilities          
Credit spread (as a percent)   0.00%      
Amended unsecured revolving credit facility | Revolving credit facility | Base rate | Maximum          
Credit facilities          
Credit spread (as a percent)   0.40%      
Amended unsecured revolving credit facility | Senior Unsecured Notes          
Credit facilities          
Accordion feature   $ 1,000,000      
Unsecured Term Loan          
Unsecured Term Notes Payable          
Principal amount $ 600,000        
Fixed rate 3.68%        
Unsecured Term Loan | Secured Overnight Financing Rate (SOFR) [Member]          
Credit facilities          
Adjustment to floating rate 0.10%        
Unsecured Five Year Term Loan          
Credit facilities          
Number of agreements | agreement     6 6  
Effective fixed rate     3.58% 3.58%  
Unsecured Term Notes Payable          
Principal amount $ 400,000        
Initial term 5 years   5 years    
Unsecured Five Year Term Loan | Secured Overnight Financing Rate (SOFR) [Member]          
Credit facilities          
Adjustment to floating rate       0.10%  
Credit spread (as a percent)     0.95% 0.95%  
Unsecured Five Year Term Loan | Secured Overnight Financing Rate (SOFR) [Member] | Minimum          
Credit facilities          
Credit spread (as a percent) 0.75%        
Unsecured Five Year Term Loan | Secured Overnight Financing Rate (SOFR) [Member] | Maximum          
Credit facilities          
Credit spread (as a percent) 1.60%        
Unsecured Seven Year Term Loan          
Credit facilities          
Number of agreements | agreement     1 1  
Effective fixed rate     3.88% 3.88%  
Unsecured Term Notes Payable          
Principal amount $ 200,000        
Initial term 7 years   7 years    
Prepayment premium, percentage, year one 2.00%        
Payment premium, percentage, year two 1.00%        
Unsecured Seven Year Term Loan | Secured Overnight Financing Rate (SOFR) [Member]          
Credit facilities          
Adjustment to floating rate       0.10%  
Credit spread (as a percent)     1.25% 1.25%  
Unsecured Seven Year Term Loan | Secured Overnight Financing Rate (SOFR) [Member] | Minimum          
Credit facilities          
Credit spread (as a percent) 1.25%        
Unsecured Seven Year Term Loan | Secured Overnight Financing Rate (SOFR) [Member] | Maximum          
Credit facilities          
Credit spread (as a percent) 2.20%        
v3.22.2
Debt - Carrying Amount (Details)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
loan
Jun. 30, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
Nov. 30, 2021
USD ($)
Nov. 30, 2020
USD ($)
Feb. 28, 2019
USD ($)
Mar. 31, 2018
USD ($)
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Unamortized discount   $ (4,427) $ (4,427) $ (4,740)        
Unamortized deferred financing costs   (14,373) (14,373) (12,447)        
Total unsecured notes and term loans payable, net   2,381,200 2,381,200 $ 1,782,813        
Interest rate swaps that were in a liability position   0 0          
Credit Risk Related Contingent Features                
Derivative liabilities   0 0          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Remainder of 2022   91,326 91,326          
2023   45,048 45,048          
2024   315,952 315,952          
2025   276,649 276,649          
2026   550,068 550,068          
2027   869,978 869,978          
Thereafter   2,526,552 2,526,552          
Long-term Debt   4,675,573 $ 4,675,573          
Various Debt, Prepayable Twenty-Four Months Prior to Maturity [Member]                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Debt prepayment period without penalty     24 months 24 months        
Various Debt, Prepayable Thirty-Six Months Prior to Maturity [Member]                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Debt prepayment period without penalty     36 months 36 months        
Unsecured Term Loan                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount $ 600,000              
Fixed rate 3.68%              
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 600,000 $ 600,000          
Unsecured Five Year Term Loan                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Expected repayment term of receivables 5 years 5 years            
Effective fixed rate   3.58% 3.58%          
Principal amount $ 400,000              
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 400,000 $ 400,000          
Unsecured Seven Year Term Loan                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Expected repayment term of receivables 7 years 7 years            
Effective fixed rate   3.88% 3.88%          
Principal amount $ 200,000              
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 200,000 $ 200,000          
Consolidated special purpose entities                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Aggregate investment amount   3,600,000 3,600,000          
Unamortized discount   (436) (436) $ (496)        
Unamortized deferred financing costs   (22,470) (22,470) (25,583)        
Total unsecured notes and term loans payable, net   2,252,667 2,252,667 2,425,708        
Scheduled Principal Payments                
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Remainder of 2022   11,576 11,576          
2023   22,866 22,866          
2024   22,154 22,154          
2025   20,037 20,037          
2026   17,926 17,926          
2027   9,506 9,506          
Thereafter   30,702 30,702          
Long-term Debt   134,767 134,767          
Balloon Payments                
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Remainder of 2022   79,750 79,750          
2023   22,182 22,182          
2024   293,798 293,798          
2025   256,612 256,612          
2026   532,142 532,142          
2027   860,472 860,472          
Thereafter   2,495,850 2,495,850          
Long-term Debt   4,540,806 4,540,806          
Senior Unsecured Notes                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   375,000 375,000          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 1,800,000 $ 1,800,000 1,800,000        
Senior Unsecured Notes | Series A issued November 2015                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)   4.95% 4.95%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 75,000 $ 75,000 75,000        
Senior Unsecured Notes | Series B issued November 2015                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)   5.24% 5.24%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 100,000 $ 100,000 100,000        
Senior Unsecured Notes | Series C issued April 2016                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)   4.73% 4.73%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 200,000 $ 200,000 200,000        
Senior Unsecured Notes | Public Notes issued March 2018                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)   4.50% 4.50%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 350,000 $ 350,000 350,000        
Senior Unsecured Notes | Public Notes Issued February 2019                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)   4.625% 4.625%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 350,000 $ 350,000 350,000        
Senior Unsecured Notes | Public Notes Issued November 2020                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)   2.75% 2.75%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 350,000 $ 350,000 350,000        
Senior Unsecured Notes | Public Notes Issued November 2021                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)   2.70% 2.70%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   $ 375,000 $ 375,000 375,000        
Senior Unsecured Notes | Notes Issued March 2018 99.515 Percent Of Par                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)               4.50%
Note issue price (as a percent)               99.515%
Senior Unsecured Notes | Notes Issued February 2019 99.260 Percent Of Par                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)             4.625%  
Note issue price (as a percent)             99.26%  
Senior Unsecured Notes | Notes Issued November 2020 99.558 Percent Of Par                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)           2.75%    
Note issue price (as a percent)           99.558%    
Senior Unsecured Notes | Notes Issued November 2021 99.877 Percent Of Par                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Stated interest rate (as a percent)         2.70%      
Note issue price (as a percent)         99.877%      
Public notes                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Number of facilities | loan   4 4          
Expected repayment term of receivables     10 years          
Principal amount         $ 375,000 $ 350,000 $ 350,000 $ 350,000
Non-recourse net-lease mortgage notes:                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Retained non-amortizing notes   $ 190,000 $ 190,000          
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities                
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   2,128,078 2,128,078 2,272,522        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 20141, Class A2 Due April 2024                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Amortization of deferred financing costs     800          
Principal amount $ 134,500 140,000 $ 140,000          
Interest Rate     5.00%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt       134,692        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2018-1 Class A-1 Due October 2024                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   150,000 $ 150,000          
Interest Rate     3.96%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   141,302 $ 141,302 142,051        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2018-1 Class A-3 Due October 2024                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   50,000 $ 50,000          
Interest Rate     4.40%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   48,667 $ 48,667 48,917        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2015-1, Class A-2 Due April 2025                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   270,000 $ 270,000          
Interest Rate     4.17%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   260,325 $ 260,325 260,999        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2016-1, Class A-1 (2016) Due Oct 2026                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   200,000 $ 200,000          
Interest Rate     3.96%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   178,047 $ 178,047 180,190        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2019-1, Class A-1 Due Nov 2026 [Member]                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   82,000 $ 82,000          
Interest Rate     2.82%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   78,385 $ 78,385 78,590        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2019-1, Class A-3 Due Nov 2026 [Member]                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   46,000 $ 46,000          
Interest Rate     3.32%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   45,406 $ 45,406 45,521        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2016-1, Class A-2 (2017) Due April 2027                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   135,000 $ 135,000          
Interest Rate     4.32%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   121,628 $ 121,628 123,046        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2018-1 Class A-2 Due October 2027                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   228,000 $ 228,000          
Interest Rate     4.29%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   214,778 $ 214,778 215,918        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2018-1 Class A-4 Due October 2027                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   164,000 $ 164,000          
Interest Rate     4.74%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   159,627 $ 159,627 160,447        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2019-1, Class A-2 Due Nov 2034                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   244,000 $ 244,000          
Interest Rate     3.65%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   233,244 $ 233,244 233,854        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2019-1, Class A-4 Due Nov 2034                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   136,000 $ 136,000          
Interest Rate     4.49%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   134,243 $ 134,243 134,583        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2021.1, Class A.1 Notes Due June 2028                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   168,500 $ 168,500          
Interest Rate     2.12%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   167,658 $ 167,658 168,079        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2021.1, Class A.3 Notes Due June 2028                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   89,000 $ 89,000          
Interest Rate     2.86%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   88,555 $ 88,555 88,778        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2021.1, Class A.2 Notes Due June 2033                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   168,500 $ 168,500          
Interest Rate     2.96%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   167,658 $ 167,658 168,079        
Non-recourse net-lease mortgage notes: | Consolidated special purpose entities | Series 2021.1, Class A.4 Notes Due June 2033                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   89,000 $ 89,000          
Interest Rate     3.70%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   88,555 $ 88,555 88,778        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Aggregate investment amount   261,400 261,400          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   147,495 147,495 179,265        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $13,000 note issued May 2012                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   13,000 $ 13,000          
Interest Rate     5.195%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt       9,961        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $26,000 note issued August 2012                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   26,000 $ 26,000          
Interest Rate     5.05%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt       20,085        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $6,400 note issued November 2012                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   6,400 $ 6,400          
Interest Rate     4.707%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   4,836 $ 4,836 4,938        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $11,895 note issued March 2013                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   11,895 $ 11,895          
Interest Rate     4.7315%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   9,124 $ 9,124 9,309        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $17,500 note issued August 2013                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   17,500 $ 17,500          
Interest Rate     5.46%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   13,959 $ 13,959 14,212        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $10,075 note issued March 2014                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   10,075 $ 10,075          
Interest Rate     5.10%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   8,706 $ 8,706 8,808        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $65,000 note issued June 2016                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   65,000 $ 65,000          
Interest Rate     4.75%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   58,605 $ 58,605 59,223        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $41,690 note issued March 2019                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   41,690 $ 41,690          
Interest Rate     4.80%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   40,977 $ 40,977 41,291        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $6,944 notes issued March 2013                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   6,944 $ 6,944          
Interest Rate     4.50%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   5,238 $ 5,238 5,332        
Nonrecourse mortgage notes payable: | Consolidated special purpose entities | $6,350 notes issued March 2019 (assumed in December 2020)                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Interest Rate     4.64%          
Scheduled maturities, including balloon payments, on the nonrecourse debt obligations                
Long-term Debt   6,050 $ 6,050 $ 6,106        
Non-recourse debt obligations | Consolidated special purpose entities | $6,350 notes issued March 2019 (assumed in December 2020)                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Principal amount   $ 6,350 $ 6,350          
Minimum                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Maximum number of months     24 months          
Maximum                
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries                
Maximum number of months     36 months          
v3.22.2
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended 20 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Nov. 30, 2020
Common stock.          
Gross Proceeds   $ 252,873 $ 172,372    
2020 ATM Program          
Common stock.          
Shares Sold 3,068,633 8,607,771   19,449,302  
Weighted Average Price per Share $ 27.52 $ 29.38   $ 31.55  
Gross Proceeds $ 84,400 $ 252,900   $ 613,700  
Sales Agents' Commissions (900) (3,100)   (8,500)  
Other Offering Expenses (100) (200)   (800)  
Net Proceeds $ 83,400 $ 249,600   $ 604,400  
Maximum value of shares that can be offered and sold         $ 900,000
v3.22.2
Commitments and Contingencies (Details) - Commitments to fund improvements to real estate properties
$ in Millions
Jun. 30, 2022
USD ($)
Commitments and Contingencies  
Real estate property improvement commitments $ 135.1
Real estate property improvement commitments, in Next Twelve Months $ 106.7
v3.22.2
Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Derivatives [Line items]    
Fair value of derivatives $ 6.1 $ 0.0
Level 2 Fair Value | Carrying value    
Derivatives [Line items]    
Long-term debt obligations 4,633.9 4,208.5
Level 2 Fair Value | Fair value    
Derivatives [Line items]    
Long-term debt obligations $ 4,308.7 $ 4,478.4