STORE CAPITAL LLC, 10-Q filed on 11/1/2024
Quarterly Report
v3.24.3
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2024
Oct. 30, 2024
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-36739  
Entity Registrant Name STORE CAPITAL LLC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 88-4051712  
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 None  
No Trading Symbol Flag true  
Entity Current Reporting Status No  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,125
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Central Index Key 0001538990  
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Real estate investments:    
Land and improvements $ 3,796,332 $ 3,805,685
Buildings and improvements 9,391,057 9,373,309
Intangible lease assets 595,851 615,327
Total real estate investments 13,783,240 13,794,321
Less accumulated depreciation and amortization (945,468) (531,351)
Real estate investments, net 12,837,772 13,262,970
Operating ground lease assets 57,548 52,068
Loans and financing receivables, net 1,653,817 1,103,931
Net investments 14,549,137 14,418,969
Cash and cash equivalents 327,051 239,477
Other assets, net 111,949 90,041
Total assets 14,988,137 14,748,487
Liabilities:    
Credit facility 375,000 375,000
Unsecured notes and term loans payable, net 3,000,400 2,839,708
Non-recourse debt obligations of consolidated special purpose entities, net 2,828,926 2,568,474
Intangible lease liabilities, net 129,376 140,516
Operating lease liabilities 55,174 49,481
Accrued expenses, deferred revenue and other liabilities 198,630 176,110
Total liabilities 6,587,506 6,149,289
Equity:    
Members' equity 8,465,562 8,730,569
Accumulated deficit (54,928) (138,599)
Accumulated other comprehensive loss (18,141) (816)
Total members' equity 8,392,493 8,591,154
Noncontrolling interest 8,138 8,044
Total equity 8,400,631 8,599,198
Total liabilities and equity $ 14,988,137 $ 14,748,487
v3.24.3
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Revenues:          
Rental revenues $ 75,008 $ 247,388 $ 236,495 $ 626,275 $ 742,825
Interest income on loans and financing receivables 5,326 33,652 25,079 55,219 82,435
Other income 850 6,377 605 3,071 16,831
Total revenues 81,184 287,417 262,179 684,565 842,091
Expenses:          
Interest 19,080 91,732 98,866 267,771 270,498
Property costs 1,348 6,490 6,216 12,867 17,385
General and administrative 5,679 17,288 13,922 37,145 50,597
Merger-related 895        
Depreciation and amortization 27,789 146,193 145,688 385,913 439,300
Provisions for impairment   11,370 6,570 18,926 28,823
Total expenses 54,791 273,073 271,262 722,622 806,603
Other income (loss):          
Gain (loss) on dispositions of real estate 97 15,346 (2,399) (2,580) 50,459
Loss on extinguishment of debt       (42,153)  
Income (loss) before income taxes 26,490 29,690 (11,482) (82,790) 85,947
Income tax (benefit) expense 703 (2,657) 1,944 5,901 1,593
Net Income (loss) 25,787 32,347 (13,426) (88,691) 84,354
Less: Net income attributable to noncontrolling interest   221     683
Net income (loss) attributable to controlling interest $ 25,787 $ 32,126 $ (13,426) $ (88,691) $ 83,671
Net income per share of common stock-basic $ 0.09        
Net income per share of common stock-diluted $ 0.09        
Weighted average common shares outstanding:          
Basic (in shares) 282,238,151        
Diluted (in shares) 282,338,405        
v3.24.3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Condensed Consolidated Statements of Comprehensive Income (Loss)          
Net income (loss) $ 25,787 $ 32,347 $ (13,426) $ (88,691) $ 84,354
Other comprehensive income (loss):          
Unrealized (losses) gains on cash flow hedges (10,531) (45,691) 19,924 52,426 8,937
Cash flow hedge gains reclassified to interest expense (894) (8,816) (5,922) (11,222) (26,262)
Total other comprehensive (loss) income (11,425) (54,507) 14,002 41,204 (17,325)
Total comprehensive (loss) income 14,362 (22,160) 576 (47,487) 67,029
Comprehensive income attributable to noncontrolling interest 0 221 0 0 683
Comprehensive (loss) income attributable to controlling interest $ 14,362 $ (22,381) $ 576 $ (47,487) $ 66,346
v3.24.3
Condensed Consolidated Statements of Members' Equity - USD ($)
Total
Common Members' Units
Preferred Members' Units
Accumulated Other Comprehensive Income
Total Member's Equity
Noncontrolling Interest
Balance at Feb. 02, 2023 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Balance (in shares) at Feb. 02, 2023   0 0      
Increase (Decrease) in Members' Equity            
Members' contributions 8,751,970,000 $ 8,751,845,000 $ 125,000   8,751,970,000  
Members' contributions (in shares)   1,000 125      
Members' distributions (340,008,000) $ (340,000,000) $ (8,000)   (340,008,000)  
Net (loss) income (88,691,000) (88,699,000) 8,000   (88,691,000)  
Other comprehensive (loss) income 41,204,000     41,204,000 41,204,000  
Non-cash distribution to members (11,385,000) (11,385,000)     (11,385,000)  
Balance at Sep. 30, 2023 8,353,090,000 $ 8,311,761,000 $ 125,000 41,204,000 8,353,090,000 0
Balance (in shares) at Sep. 30, 2023   1,000 125      
Balance at Jun. 30, 2023 8,302,514,000 $ 8,275,187,000 $ 125,000 27,202,000 8,302,514,000 0
Balance (in shares) at Jun. 30, 2023   1,000 125      
Increase (Decrease) in Members' Equity            
Members' contributions 200,000,000 $ 200,000,000     200,000,000  
Members' distributions (150,000,000) (150,000,000)     (150,000,000)  
Net (loss) income (13,426,000) (13,426,000)     (13,426,000)  
Other comprehensive (loss) income 14,002,000     14,002,000 14,002,000  
Balance at Sep. 30, 2023 8,353,090,000 $ 8,311,761,000 $ 125,000 41,204,000 8,353,090,000 0
Balance (in shares) at Sep. 30, 2023   1,000 125      
Balance at Dec. 31, 2023 8,599,198,000 $ 8,591,845,000 $ 125,000 (816,000) 8,591,154,000 8,044,000
Balance (in shares) at Dec. 31, 2023   1,000 125      
Increase (Decrease) in Members' Equity            
Members' contributions 285,000,000 $ 285,000,000     285,000,000  
Members' distributions (550,007,000) (550,000,000) $ (7,000)   (550,007,000)  
Net (loss) income 84,354,000 83,664,000 7,000   83,671,000 683,000
Other comprehensive (loss) income (17,325,000)     (17,325,000) (17,325,000)  
Distributions to non-controlling interest (589,000)         (589,000)
Balance at Sep. 30, 2024 8,400,631,000 $ 8,410,509,000 $ 125,000 (18,141,000) 8,392,493,000 8,138,000
Balance (in shares) at Sep. 30, 2024   1,000 125      
Balance at Jun. 30, 2024 8,610,022,000 $ 8,565,383,000 $ 125,000 36,366,000 8,601,874,000 8,148,000
Balance (in shares) at Jun. 30, 2024   1,000 125      
Increase (Decrease) in Members' Equity            
Members' distributions (187,000,000) $ (187,000,000)     (187,000,000)  
Net (loss) income 32,347,000 32,126,000     32,126,000 221,000
Other comprehensive (loss) income (54,507,000)     (54,507,000) (54,507,000)  
Distributions to non-controlling interest (231,000)         (231,000)
Balance at Sep. 30, 2024 $ 8,400,631,000 $ 8,410,509,000 $ 125,000 $ (18,141,000) $ 8,392,493,000 $ 8,138,000
Balance (in shares) at Sep. 30, 2024   1,000 125      
v3.24.3
Condensed Consolidated Statement of Stockholders' Equity - 1 months ended Feb. 02, 2023 - USD ($)
$ in Thousands
Total
Common Stock
Capital in Excess of Par Value
Distributions in Excess of Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2022 $ 5,426,318 $ 2,827 $ 6,003,331 $ (609,361) $ 29,521
Balance (in shares) at Dec. 31, 2022   282,684,998      
Increase (Decrease) in Stockholders' Equity          
Net Income (Loss) 25,787     25,787  
Other comprehensive income (11,425)       (11,425)
Equity-based compensation 975   975    
Balance at Feb. 02, 2023 $ 5,441,655 $ 2,827 $ 6,004,306 $ (583,574) $ 18,096
Balance (in shares) at Feb. 02, 2023   282,684,998      
v3.24.3
Condensed Consolidated Statements of Cash Flows
$ in Thousands
 1 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Operating activities      
Net income (loss) $ 25,787 $ (88,691) $ 84,354
Adjustments to net income (loss):      
Depreciation and amortization 27,789 385,913 439,300
Amortization of debt discounts, deferred financing costs and other noncash interest expense 715 61,951 58,720
Amortization of equity-based compensation 975    
Provisions for impairment   18,926 28,823
Net (gain) loss on dispositions of real estate (97) 2,580 (50,459)
Loss on extinguishment of debt   42,153  
Noncash revenue and other (77) (9,002) (21,374)
Changes in operating assets and liabilities:      
Other assets (2,876) (5,290) (525)
Accrued expenses, deferred revenue and other liabilities 7,164 5,413 2,729
Net cash provided by operating activities 59,380 413,953 541,568
Investing activities      
Acquisition of and additions to real estate (48,063) (425,251) (473,538)
Investment in loans and financing receivables (82,112) (198,341) (371,875)
Collections of principal on loans and financing receivables 468 71,850 1,597
Proceeds from dispositions of real estate 682 21,155 306,397
Acquisition of STORE Capital Corporation   (10,547,219)  
Net cash used in investing activities (129,025) (11,077,806) (537,419)
Financing activities      
Borrowings under credit facility 70,000 873,500 0
Repayments under credit facility (25,000) (548,500) 0
Borrowings under unsecured notes and term loans payable 40,000 800,000 135,000
Repayments under unsecured notes and term loans payable   (185,600)  
Borrowings under secured term loan facility   1,957,750  
Repayments under secured term loan facility   (1,040,000)  
Borrowings under non-recourse debt obligations of consolidated special purpose entities   527,925 449,936
Repayments under non-recourse debt obligations of consolidated special purpose entities (15,906) (29,303) (213,489)
Financing costs and prepayment penalties paid (1,106) (43,657) (4,423)
Members' contributions   8,751,970 285,000
Members' distributions   (340,008) (550,007)
Distributions to non-controlling interest     (589)
Net cash provided by financing activities 67,988 10,724,077 101,428
Net change in cash, cash equivalents and restricted cash (1,657) 60,224 105,577
Cash, cash equivalents and restricted cash, beginning of period 39,804 38,147 250,227
Cash, cash equivalents and restricted cash, end of period 38,147 60,224 355,804
Reconciliation of cash, cash equivalents and restricted cash:      
Cash and cash equivalents 33,096 51,265 327,051
Restricted cash included in other assets 5,051 8,959 28,753
Total cash, cash equivalents and restricted cash 38,147 60,224 355,804
Supplemental disclosure of noncash investing and financing activities:      
Accrued tenant improvements included in real estate, loans and financing receivable investments   31,597 20,232
Tenant funded improvements to real estate investments     13,167
Accrued financing costs   61  
Noncash distribution to members   11,385  
Supplemental disclosure of cash flow information:      
Cash paid during the period for interest, net of amounts capitalized 11,488 209,991 212,245
Cash paid during the period for income and franchise taxes $ 20 $ 10,705 $ 7,411
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Pay vs Performance Disclosure          
Net Income (Loss) $ 25,787 $ 32,126 $ (13,426) $ (88,691) $ 83,671
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
Organization
 9 Months Ended
Sep. 30, 2024
Organization  
Organization

1. Organization

STORE Capital Corporation 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, service-oriented retail and manufacturing sectors of the United States economy. From time to time, it also provided mortgage financing to its customers.

On November 21, 2014, the Company completed the initial public offering of its common stock. The shares traded on the New York Stock Exchange from November 18, 2014 through the Closing Date, as defined below, under the ticker symbol “STOR”.

On September 15, 2022, STORE Capital Corporation, Ivory Parent, LLC, a Delaware limited liability company (“Parent”) and Ivory REIT, LLC, a Delaware limited liability company (“Merger Sub” and, together with Parent, the “Parent Parties”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Parent Parties are affiliates of GIC, a global institutional investor, and funds managed by Blue Owl Capital. On February 3, 2023 (the “Closing Date”), pursuant to the terms and subject to the conditions set forth in the Merger Agreement, STORE Capital Corporation merged with and into Merger Sub (the “Merger”) with Merger Sub surviving (the “Surviving Entity”) and the separate existence of STORE Capital Corporation ceased. Immediately following the completion of the Merger, the Surviving Entity changed its name to STORE Capital LLC. References herein to “we,” “us,” “our,” the “Company,” or “STORE Capital” are references to STORE Capital Corporation prior to the Merger and to STORE Capital LLC upon and following the Merger. As of the Closing Date of the Merger, the common equity of the Company is no longer publicly traded.

STORE Capital Corporation elected to be taxed as a real estate investment trust (“REIT”) for federal income tax purposes beginning with its initial taxable year ended December 31, 2011. STORE Capital LLC has made an election to qualify, and believes it is operating in a manner to continue to qualify, as a REIT for federal income tax purposes beginning with its initial taxable year ended December 31, 2022. As a REIT, the Company will generally not be subject to federal income taxes to the extent that it distributes all of its taxable income to its members and meets other specific requirements.
v3.24.3
Summary of Significant Accounting Principles
 9 Months Ended
Sep. 30, 2024
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, 2023.

These condensed consolidated statements include the accounts of STORE Capital Corporation and its wholly-owned subsidiaries and special purpose entities that it controlled through its voting interest for the periods prior to the Merger. For the periods after the Merger, these condensed consolidated statements include the accounts of STORE Capital LLC, its wholly-owned subsidiaries, and special purpose entities and variable interest entities (“VIEs”) that it controls through its voting interest and other means. One of the Company’s wholly owned subsidiaries, STORE Capital Advisors, LLC, provides all 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 consolidated subsidiaries are special purpose entities or VIEs. Each special purpose entity or VIE is a separate legal entity and is the sole owner of its assets and liabilities. The assets of the special purpose entities or VIEs may only be used to settle the liabilities of such entity and are not available to pay or otherwise satisfy obligations to the creditors of any owner or affiliate of the applicable special purpose entity or VIE. At September 30, 2024 and December 31, 2023, these special purpose entities held assets totaling $13.0 billion and $12.9 billion, respectively, and had third-party liabilities totaling $3.1 billion and $2.8 billion, respectively. At September 30, 2024 and December 31, 2023, these VIEs held assets totaling $268.6 million and $267.9 million, respectively, and had third-party liabilities totaling $1.3 million and $3.1 million, respectively. These assets and liabilities are included in the accompanying condensed consolidated balance sheets.

The Company is required to continually evaluate its VIE relationships and consolidate these entities when it is determined to be the primary beneficiary of their operations. A VIE is broadly defined as an entity where either: (i) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support, (ii) substantially all of an entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights, or (iii) the equity investors as a group lack any of the following: (a) the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance, (b) the obligation to absorb the expected losses of an entity, or (c) the right to receive the expected residual returns of an entity.

The designation of an entity as a VIE is reassessed upon certain events, including, but not limited to: (i) a change to the contractual arrangements of the entity or in the ability of a party to exercise its participation or kick-out rights, (ii) a change to the capitalization structure of the entity, or (iii) acquisitions or sales of interests that constitute a change in control.

 

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, which activities most significantly impact the entity’s economic performance and the ability to direct those activities, the variable interest holder’s form of ownership interest, the variable interest holder’s representation on the VIE’s governing body, the size and seniority of the variable interest holder’s investment, the variable interest holder’s ability and the rights of other investors to participate in policy making decisions, the variable interest holder’s ability to manage its ownership interest relative to the other interest holders, and the variable interest holder’s ability to replace the VIE manager and/or liquidate the entity.

For its investments in entities that are not considered to be VIEs, the Company evaluates the type of ownership rights held by each party with an interest in the entity to determine if the Company holds a controlling financial interest. The assessment of whether the Company holds a controlling financial interest is made at inception of the entity and continually reassessed.

Consolidated VIE

The Company holds a 95% ownership interest in and is the managing member of a joint venture entity formed in December 2023 that owns and leases real estate to lessees that are affiliates of the noncontrolling interest holder. The Company also provided a $105.2 million loan to the joint venture. The Company classifies the joint venture as a VIE, as the equity holders do not have the obligation to absorb all future losses of the joint venture due to a provision that protects the equity holders from certain losses if an event of default occurs under the leases. The Company consolidates the joint venture as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of the joint venture primarily consist of leased properties (net lease real estate accounted for as financing arrangements) and cash; its obligations primarily consist of debt service payments to the Company, which are eliminated in consolidation.

Accounting for the Merger

The Merger was accounted for using the asset acquisition method of accounting in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC Topic 805”), which requires that the cost of an acquisition be allocated on a relative fair value basis to the assets purchased and the liabilities assumed. Direct transaction costs incurred by STORE Capital LLC as the acquirer and amounts transferred to reimburse STORE Capital Corporation for costs incurred as the acquiree to sell the business are included in the consideration transferred and capitalized as a component of the cost of the assets acquired. An assembled workforce intangible asset is recorded at the acquisition date if it is part of the asset group acquired. Goodwill is not recognized in an asset acquisition and consideration transferred in excess over the fair value of the net assets acquired, if any, is allocated on a relative fair value basis to the identifiable assets and liabilities. See Note 10 of 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, 2023.

As noted above, the condensed consolidated financial statements of STORE Capital LLC reflect the recording of assets and liabilities at fair value as of the date of the Merger. The Merger resulted in the termination of the prior reporting entity and a corresponding creation of a new reporting entity. Accordingly, the Company’s condensed consolidated financial statements and transactional records prior to the Closing Date, or February 3, 2023, reflect the historical accounting basis of assets and liabilities and are labeled “Predecessor” while such records subsequent to the Closing Date reflect the fair value of assets acquired and liabilities assumed in the Company’s condensed consolidated financial statements and are labeled “Successor”. This change in reporting entity is represented in the condensed consolidated financial statements by a black line that appears between “Predecessor” and “Successor” on the statements and in the relevant notes. The black line signifies that the amounts shown for the periods prior to and subsequent to the Merger are not comparable.

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 FASB’s 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 in one of two ways, either 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, or through acquisitions from third-party sellers in connection with which a new lease is entered into with the tenant. Both approaches result in long-term leases which are generally classified as operating leases and, in both cases, the operators become the Company’s long‑term tenants (its customers). In certain instances, the terms of the lease result in classification as a finance lease instead of an operating lease. Furthermore, certain of the lease contracts that are specifically 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 Company’s adoption of ASC Topic 842, rather than as an investment in real estate subject to an operating or finance lease.
•
Mortgage Loans Receivable – investments are made by issuing mortgage loans to the owner-operators of the real estate that serves 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. 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.

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 that 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 sheets; 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 contractual 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 20 to 40 years for buildings and is generally 10 to 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 September 30, 2024 and December 31, 2023, the Company had $32.5 million and $13.3 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. Often, these escalators increase rent at (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 achieved. Approximately 3.1% 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 operations.

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 nine months ended September 30, 2024 the Company recognized an aggregate provision for the impairment of real estate of $8.7 million and $22.8 million, respectively. For the assets impaired in 2024, the estimated aggregate fair value of the impaired real estate assets at the time of impairment aggregated $77.9 million. For the three months ended September 30, 2023 and for the period from February 3, 2023 through September 30, 2023, the Company recognized an aggregate provision for the impairment of real estate of $5.5 million and $12.1 million, respectively. No impairment of real estate was recognized during the period from January 1, 2023 through February 2, 2023.

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 September 30, 2024 and December 31, 2023, the Company had loans receivable with an aggregate outstanding principal balance of $65.7 million and $54.8 million, respectively, on nonaccrual status.

Sales-Type Receivables – Classification, Cost and Revenue Recognition

Sales-type receivables are recorded at their net investment, determined as the present value of both the aggregate minimum lease payments and the estimated residual value of the leased property.

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. During the three and nine months ended September 30, 2024 the Company recognized an estimated $2.7 million and $6.0 million, respectively, provision for credit losses related to its loans and financing receivables; the provision for credit losses is included in provisions for impairment on the condensed consolidated statements of operations. For the three months ended September 30, 2023 and for the period from February 3, 2023 through September 30, 2023, the Company recognized an estimated $1.1 million and $6.8 million, respectively, of provisions for credit losses. For the period from January 1, 2023 through February 2, 2023, no provisions for credit

losses were recognized. For the three and nine months ended September 30, 2024, the three months ended September 30, 2023, the period from February 3, 2023 through September 30, 2023 and the period from January 1, 2023 through February 2, 2023 the Company did not write off any credit losses associated with loans receivable.

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 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 major financial institutions, 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 $28.8 million and $10.8 million of restricted cash at September 30, 2024 and December 31, 2023, respectively, which are included in other assets, net, on the condensed consolidated balance sheets.

Deferred Financing and Other Debt 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. Costs paid to a lender as part of a debt issuance are recorded as a debt discount 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. 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 September 30, 2024, the Company had 21 interest rate swap agreements in place. Eleven of the interest rate swap agreements have an aggregate notional value of $921.1 million, with ten maturing in May 2027 and one maturing in May 2029, and are designated cash flow hedges of the Company’s $921.1 million variable-rate bank unsecured term loan which matures in April 2027 (Note 4). Three interest rate swap agreements with an aggregate notional value of $375.0 million and maturing in February 2027 are designated cash flow hedges of the Company’s variable-rate unsecured revolving credit facility which matures in February 2027 (Note 4). Seven of the interest rate swap agreements with an aggregate notional value of $727.5 million, two with maturities in February 2027, and five with maturities in July 2028, are designated cash flow hedges of the Company’s $727.5 million floating-rate bank incremental unsecured term loan which matures in July 2026 (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.

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.

Following the Merger, the Company’s new ownership structure and status as a privately held REIT caused multiple state income tax jurisdictions to view the Company as a captive REIT. Within the jurisdictions where the Company is treated as a captive REIT, the dividends paid deduction may be disallowed, resulting in state income tax liabilities to which the Company was not previously subject when it was publicly traded.

Based on the projected increase in income tax liabilities related to STORE Capital's new status as a captive REIT in multiple state tax jurisdictions, the Company, in addition to its existing obligation to compute current income tax expense, is now in a position where it needs to calculate deferred income taxes attributable to its temporary differences. While current income taxes are based upon the current period's income taxable for state tax reporting purposes, deferred income taxes (benefits) are provided for certain income and expenses, which are recognized in different periods for tax and financial reporting purposes. Deferred tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the period in which the differences are expected to affect taxable income, and net operating loss (“NOL”) carryforwards.

As required by ASC Topic 740, Income Taxes, management of the Company has evaluated the evidence bearing upon the realizability of its deferred tax assets, which is ultimately dependent upon the sources of future taxable income during the periods

temporary differences become deductible. Based on the weight of available evidence, both positive and negative, management has determined that it is "more-likely-than-not" that the Company will not realize the benefits of its deferred tax assets.

The Company recorded income tax benefit of $2.7 million and income tax expense of $1.6 million for the three and nine months ended September 30, 2024, respectively, and income tax expense of $1.9 million, $5.9 million, and $0.7 million for the three months ended September 30, 2023, the period from February 3, 2023 through September 30, 2023 and the period from January 1, 2023 through February 2, 2023, respectively.

Certain state tax returns filed for 2020 and federal and state tax returns filed for 2021 through 2023 are subject to examination by these jurisdictions. As of September 30, 2024, 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 September 30, 2024 or December 31, 2023.

Related Party Transactions

The Company has a service contract with PCSD Ivory Private Limited, an entity affiliated with GIC, the Company’s majority member, under which it has agreed to perform certain loan servicing and other administrative services on behalf of PCSD Ivory Private Limited in exchange for a servicing fee. During the three and nine months ended September 30, 2024, the Company collected $0.2 million and $0.6 million of fee income, respectively, which is recorded in other income on the condensed consolidated statements of operations. No such amounts were recorded for the period from February 3, 2023 through September 30, 2023 or the period from January 1, 2023 through February 2, 2023.

Net Income Per Common Share

Net income per common share has been computed for STORE Capital Corporation 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):

 

 

 

Predecessor

 

 

Period from
January 1, 2023
through
February 2, 2023

 

Numerator:

 

 

 

Net income

 

$

25,787

 

Less: Earnings attributable to unvested restricted shares

 

 

(41

)

Net income used in basic and diluted income per share

 

$

25,746

 

Denominator:

 

 

 

Weighted average common shares outstanding

 

 

282,684,998

 

Less: Weighted average number of shares of unvested restricted stock

 

 

(446,847

)

Weighted average shares outstanding used in basic income per share

 

 

282,238,151

 

Effects of dilutive securities:

 

 

 

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

 

 

100,254

 

Weighted average shares outstanding used in diluted income per share

 

 

282,338,405

 

 

(a)
For the period from January 1, 2023 to February 2, 2023, excludes 197,026 shares 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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. While STORE only has one reportable segment, the Company is currently evaluating the potential impact the adoption of ASU 2023-07 will have on its future disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the potential impact the adoption of ASU 2023-09 will have on the consolidated financial statements or notes to the consolidated financial statements.
v3.24.3
Investments
 9 Months Ended
Sep. 30, 2024
Investments [Abstract]  
Investments

3. Investments

At September 30, 2024, STORE Capital had investments in 3,245 property locations representing 3,206 owned properties (of which 178 are accounted for as financing arrangements and 84 are accounted for as sales-type receivables), 25 properties where all the related land is subject to an operating ground lease and 14 properties which secure mortgage loans. The gross investment portfolio totaled $15.4 billion at September 30, 2024 and consisted of the gross acquisition cost of the real estate investments totaling $13.6 billion including an offset by intangible lease liabilities totaling $143.8 million, loans and financing receivables with an aggregate carrying amount of $1.7 billion and operating ground lease assets totaling $57.5 million. As of September 30, 2024, approximately 34% of these investments are assets of consolidated special purpose entity subsidiaries that are pledged as collateral under the non‑recourse obligations of such 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 nine months ended September 30, 2024, 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, 2023

 

 

3,206

 

 

$

14,801,634

 

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

 

 

64

 

 

 

481,218

 

Investment in loans and financing receivables (a)

 

 

57

 

 

 

373,389

 

Sales of real estate

 

 

(82

)

 

 

(284,639

)

Principal collections on loans and financing receivables

 

 

—

 

 

 

(1,597

)

Net change in operating ground lease assets (b)

 

 

 

 

 

5,481

 

Provisions for impairment

 

 

 

 

 

(28,823

)

Other

 

 

 

 

 

4,167

 

Gross investments, September 30, 2024 (c)

 

 

 

 

 

15,350,830

 

Less accumulated depreciation and amortization (c)

 

 

 

 

 

(931,069

)

Net investments, September 30, 2024 (e)

 

 

3,245

 

 

$

14,419,761

 

 

(a)
Excludes $24.2 million of total tenant improvement advances disbursed in 2024 which were accrued as of December 31, 2023.
(b)
Represents new operating ground lease asset recognized net of amortization during the nine months ended September 30, 2024.
(c)
Includes the below-market lease liabilities ($143.8 million) and the accumulated amortization ($14.4 million) of the liabilities recorded on the condensed consolidated balance sheets as intangible lease liabilities as of September 30, 2024.
(d)
Includes $13.2 million of tenant funded improvements during 2024.
(e)
In connection with certain acquisitions completed during the nine months ended September 30, 2024, the Company modified existing operating leases in a manner which required them to be accounted for as finance leases in accordance with ASC Topic 842. As a result, the Company reclassified $156.5 million of net real estate investments to loans and financing receivables, net on the condensed consolidated balance sheets. The Company also recognized a $16.0 million non-cash net gain in connection with the modification which is included in net gain (loss) on dispositions of real estate in the condensed consolidated statements of operations.

 

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

 

 

Successor

 

 

 

Predecessor

 

 

Three Months Ended September 30,

 

 

Nine Months Ended

 

 

Period from
February 3, 2023
through

 

 

 

Period from
January 1, 2023 through

 

 

 

2024

 

 

2023

 

 

September 30, 2024

 

 

September 30, 2023

 

 

 

February 2, 2023

 

Rental revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating leases (a)

 

$

245,228

 

 

$

234,405

 

 

$

736,537

 

 

$

620,605

 

 

 

$

75,005

 

Sublease income - operating ground leases (b)

 

 

780

 

 

 

703

 

 

 

2,186

 

 

 

1,874

 

 

 

 

234

 

Amortization of lease related intangibles and costs

 

 

1,380

 

 

 

1,387

 

 

 

4,102

 

 

 

3,796

 

 

 

 

(231

)

Total rental revenues

 

$

247,388

 

 

$

236,495

 

 

$

742,825

 

 

$

626,275

 

 

 

$

75,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income on loans and financing receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage and other loans receivable

 

$

3,310

 

 

$

14,505

 

 

$

7,190

 

 

$

26,375

 

 

 

$

2,434

 

Sale-leaseback transactions accounted
   for as financing arrangements

 

 

21,403

 

 

 

7,830

 

 

 

57,116

 

 

 

21,141

 

 

 

 

2,444

 

Sales-type and financing receivables

 

 

8,939

 

 

 

2,744

 

 

 

18,129

 

 

 

7,703

 

 

 

 

448

 

Total interest income on loans
   and financing receivables

 

$

33,652

 

 

$

25,079

 

 

$

82,435

 

 

$

55,219

 

 

 

$

5,326

 

 

(a)
For the three months ended September 30, 2024 and 2023, includes $1.1 million and $893,000, respectively, of property tax tenant reimbursement revenue and includes $385,000 and $592,000, respectively, of variable lease revenue. For the nine months ended September 30, 2024, the period from February 3, 2023 through September 30, 2023, and the period from January 1, 2023 through February 2, 2023 includes $3.3 million, $2.3 million and $252,000, respectively, of property tax tenant reimbursement revenue and includes $921,000, $909,000 and $24,000, 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.

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 635 customers who operate their businesses across 140 industries geographically dispersed throughout 49 states. The primary sectors of the U.S. economy and their proportionate dollar amount of STORE Capital’s investment portfolio at September 30, 2024 are service at 61%, service-oriented retail at 13% and manufacturing at 26%. Only one state, Texas (11%), accounted for 10% or more of the total dollar amount of STORE Capital’s investment portfolio at September 30, 2024. None of the Company’s customers represented more than 10% of the Company’s investment portfolio at September 30, 2024, with the largest customer representing 2.5% of the total investment portfolio. On an annualized basis, as of September 30, 2024, the largest customer represented approximately 2.4% of the Company’s total investment portfolio revenues.

Real Estate Investments

The weighted average remaining noncancelable lease term of the Company’s operating leases with its tenants at September 30, 2024 was approximately 14.0 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 September 30, 2024, 18 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 September 30, 2024, are as follows (in thousands):

 

Remainder of 2024

 

$

240,706

 

2025

 

 

969,998

 

2026

 

 

966,009

 

2027

 

 

955,148

 

2028

 

 

939,628

 

2029

 

 

913,271

 

Thereafter

 

 

7,760,272

 

Total future minimum rentals (a)

 

$

12,745,032

 

 

(a)
Excludes future minimum rentals to be received under lease contracts associated with sale-leaseback transactions accounted for as financing arrangements and sales-type financing receivables. 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 rental payments 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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

In-place leases

 

$

558,462

 

 

$

577,808

 

Above-market leases

 

 

37,389

 

 

 

37,519

 

Total intangible lease assets

 

 

595,851

 

 

 

615,327

 

Accumulated amortization

 

 

(89,566

)

 

 

(51,650

)

Net intangible lease assets

 

$

506,285

 

 

$

563,677

 

 

Aggregate lease intangible asset amortization included in depreciation and amortization expense was $13.2 million and $13.7 million during the three months ended September 30, 2024 and 2023, respectively, and $39.5 million, $36.1 million and $0.3 million for the nine months ended September 30, 2024, the period from February 3, 2023 through September 30, 2023 and the period from January 1, 2023 through February 2, 2023, respectively. The amount amortized as a decrease to rental revenue for capitalized above‑market lease intangibles was $0.7 million for both the three months ended September 30, 2024 and 2023, and $2.1 million and $2.0 million for the nine months ended September 30, 2024 and the period from February 3, 2023 through September 30, 2023, respectively. For the period from January 1, 2023 through February 2, 2023 there was no amortization of above-market lease intangibles.

Based on the balance of the intangible lease assets at September 30, 2024, the aggregate amortization expense is expected to be $13.4 million for the remainder of 2024, $49.1 million in 2025, $47.4 million in 2026, $45.6 million in 2027, $43.4 million in 2028, $40.4 million in 2029 and $234.4 million thereafter. The amount expected to be amortized as a decrease to rental revenue is expected to be $0.7 million for the remainder of 2024, $2.8 million in 2025, $2.8 million in 2026, $2.7 million in 2027, $2.6 million in 2028, $2.5 million in 2029 and $18.5 million thereafter. The weighted average remaining amortization period is approximately 11.8 years for the in‑place lease intangibles and approximately 13.7 years for the above-market lease intangibles.

Intangible Lease Liabilities

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

Below-market leases

 

$

143,775

 

 

$

148,686

 

Accumulated amortization

 

 

(14,399

)

 

 

(8,170

)

Net intangible lease liabilities

 

$

129,376

 

 

$

140,516

 

 

Lease intangible liabilities are amortized as an increase to rental revenues. For both the three months ended September 30, 2024 and 2023, amortization was $2.3 million and for the nine months ended September 30, 2024 and the period from February 3, 2023 through September 30, 2023, was $6.7 million and $6.0 million, respectively. There was no amortization of below-market lease intangibles for the period from January 1, 2023 through February 2, 2023. Based on the balance of the intangible liabilities at September 30, 2024, the amortization included in rental revenue is expected to be $2.2 million for the remainder of 2024, $8.6 million in 2025, $8.6 million in 2026, $8.4 million in 2027, $8.2 million in 2028, $8.0 million in 2029 and $85.4 million thereafter. The weighted average remaining amortization period, including extension periods, is approximately 22.5 years.

Operating Ground Lease Assets

As of September 30, 2024, STORE Capital had operating ground lease assets aggregating $57.5 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 $1.0 million and $874,000 during the three months ended September 30, 2024 and 2023, respectively, and $2.8 million, $2.3 million and $273,000 for the nine months ended September 30, 2024, the period from February 3, 2023 through September 30, 2023 and the period from January 1, 2023 through February 2, 2023, respectively. The Company also recognized, in rental revenues, sublease revenue associated with its operating ground leases of $780,000 and $703,000 during the three months ended September 30, 2024 and 2023, respectively, and $2.2 million, $1.9 million and $234,000 for the nine months ended September 30, 2024, the period from February 3, 2023 through September 30, 2023 and the period from January 1, 2023 through February 2, 2023, respectively.

The future minimum lease payments to be paid under the operating ground leases as of September 30, 2024 were as follows (in thousands):

 

 

 

 

 

 

Ground

 

 

 

 

 

Ground

 

 

Leases

 

 

 

 

 

Leases

 

 

Paid by

 

 

 

 

 

Paid by

 

 

STORE Capital's

 

 

 

 

 

STORE Capital

 

 

Tenants (a)

 

 

Total

 

Remainder of 2024

 

$

14

 

 

$

1,163

 

 

$

1,177

 

2025

 

 

57

 

 

 

3,035

 

 

 

3,092

 

2026

 

 

57

 

 

 

3,041

 

 

 

3,098

 

2027

 

 

57

 

 

 

3,041

 

 

 

3,098

 

2028

 

 

57

 

 

 

3,071

 

 

 

3,128

 

2029

 

 

58

 

 

 

3,158

 

 

 

3,216

 

Thereafter

 

 

3,258

 

 

 

110,279

 

 

 

113,537

 

Total lease payments

 

 

3,558

 

 

 

126,788

 

 

 

130,346

 

Less imputed interest

 

 

(2,936

)

 

 

(75,230

)

 

 

(78,166

)

Total operating lease liabilities - ground leases

 

$

622

 

 

$

51,558

 

 

$

52,180

 

 

(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 $126.8 million commitment, $86.5 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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Type

 

Interest
Rate (a)

 

Maturity
Date

 

September 30,
2024

 

 

December 31,
2023

 

Nine mortgage loans receivable (b)

 

9.03%

 

2024 - 2056

 

$

124,754

 

 

$

125,093

 

Equipment and other loans receivable

 

9.87%

 

2024 - 2036

 

 

23,443

 

 

 

13,958

 

Total principal amount outstanding—loans receivable

 

 

 

 

 

 

148,197

 

 

 

139,051

 

Unamortized loan origination costs

 

 

 

 

 

 

101

 

 

 

61

 

Unamortized loan premium

 

 

 

 

 

 

646

 

 

 

664

 

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

 

8.50%

 

2034 - 2122

 

 

1,056,602

 

 

 

839,902

 

Sales-type financing receivables

 

8.82%

 

2044 - 2054

 

 

461,961

 

 

 

131,969

 

Allowance for credit and loan losses

 

 

 

 

 

 

(13,690

)

 

 

(7,716

)

Total loans and financing receivables

 

 

 

 

 

$

1,653,817

 

 

$

1,103,931

 

 

(a)
Represents the weighted average interest rate as of the balance sheet date.
(b)
One of these mortgage loans allows for a prepayment in whole, but not in part, with a penalty 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 2122 and the purchase options expire between 2024 and 2073.

Loans Receivable

At September 30, 2024, the Company held 24 loans receivable with an aggregate carrying amount of $145.8 million. Nine of the loans are mortgage loans secured by land and/or buildings and improvements on the mortgaged property; the interest rates on five of the mortgage loans are subject to increases over the term of the loans. The mortgage loans receivable generally require the borrowers to make monthly principal and interest payments based on a 20 to 40-year amortization period with a balloon payment, 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 principal and interest payments with a balloon payment, if any, at maturity.

The long-term mortgage loans receivable generally allow for prepayments without penalty or with penalties ranging from 1% to 15%, 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 2024

 

$

394

 

 

$

10,175

 

 

$

10,569

 

2025

 

 

1,483

 

 

 

—

 

 

 

1,483

 

2026

 

 

1,705

 

 

 

9,835

 

 

 

11,540

 

2027

 

 

1,685

 

 

 

395

 

 

 

2,080

 

2028

 

 

1,687

 

 

 

1,953

 

 

 

3,640

 

2029

 

 

1,663

 

 

 

—

 

 

 

1,663

 

Thereafter

 

 

63,184

 

 

 

54,038

 

 

 

117,222

 

Total principal payments

 

$

71,801

 

 

$

76,396

 

 

$

148,197

 

 

Sale-Leaseback Transactions Accounted for as Financing Arrangements

As of September 30, 2024 and December 31, 2023, the Company had $1.1 billion and $839.9 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 September 30, 2024, were as follows (in thousands):

 

Remainder of 2024

 

$

21,346

 

2025

 

 

87,638

 

2026

 

 

89,042

 

2027

 

 

90,443

 

2028

 

 

91,886

 

2029

 

 

93,430

 

Thereafter

 

 

2,985,500

 

Total future scheduled payments

 

$

3,459,285

 

 

Sales-Type Financing Receivables

As of September 30, 2024 and December 31, 2023, the Company had $462.0 million and $132.0 million, respectively, of investments accounted for as sales-type leases; the components of these investments were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

Minimum lease payments receivable

 

$

1,330,558

 

 

$

365,516

 

Estimated residual value of leased assets

 

 

7,173

 

 

 

1,521

 

Unearned income

 

 

(875,770

)

 

 

(235,067

)

Net investment

 

$

461,961

 

 

$

131,969

 

 

As of September 30, 2024, the future minimum lease payments to be received under the sales-type financing lease receivables are expected to be $9.2 million for the remainder of 2024, $36.9 million in 2025, $37.6 million in 2026, $38.4 million in 2027, $39.3 million in 2028, $40.3 million in 2029 and $1.1 billion 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 September 30, 2024, $191.4 million of loans and financing receivables were categorized as investment grade and $1.5 billion were categorized as non-investment grade. During the three and nine months ended September 30, 2024 there were $2.7 million and $6.0 million, respectively, of provisions for credit losses recognized, no write-offs charged against the allowance and no recoveries of amounts previously written off.

As of September 30, 2024, the year of origination for loans and financing receivables with a credit quality indicator of investment grade was $9.1 million in 2024, $86.6 million in 2023, $14.8 million in 2022, $8.2 million in 2021, none in 2020 and $72.7 million prior to 2020. The year of origination for loans and financing receivables with a credit quality indicator of non-investment grade was $532.0 million in 2024, $574.0 million in 2023, $84.2 million in 2022, $62.0 million in 2021, $11.8 million in 2020 and $211.4 million prior to 2020.
v3.24.3
Debt
 9 Months Ended
Sep. 30, 2024
Debt  
Debt

4. Debt

Credit Facility

The Company has a credit agreement (the “Unsecured Credit Agreement”) with a group of lenders which provides for a senior unsecured revolving credit facility (the “Unsecured Revolving Credit Facility”) and unsecured, variable-rate term loans which are discussed in more detail in the section titled “Unsecured Notes and Term Loans Payable, net” below. The Unsecured Revolving Credit Facility has a borrowing capacity of $753.9 million, matures in February 2027 and includes two six-month extension options, subject to certain conditions and the payment of a 0.075% extension fee. At September 30, 2024, the Company had $375.0 million of borrowings outstanding on the facility.

Borrowings under the Unsecured Revolving Credit Facility require monthly payments of interest at a rate selected by the Company of either (1) SOFR plus an adjustment of 0.10% plus a spread ranging from 1.00% to 1.45%, or (2) the Base Rate, as defined in the Unsecured Credit Agreement, plus a spread ranging from 0.00% to 0.45%. The spread used is based on the Company’s consolidated total leverage ratio as defined in the Unsecured Credit Agreement. The Company is required to pay a facility fee on the total commitment amount ranging from 0.15% to 0.30% based on the Company’s consolidated total leverage ratio. Currently, the applicable spread for SOFR-based borrowings is 1.10% and the facility fee is 0.20%. As of September 30, 2024, the Company has three interest rate swap agreements with an aggregate notional value of $375.0 million that effectively convert the outstanding borrowings on the Unsecured Revolving Credit Facility to an all-in fixed rate of 4.5950%.

Under the terms of the Unsecured Credit Agreement, 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 $10.1 billion at September 30, 2024. The facility is recourse to the Company and, as of September 30, 2024, the Company was in compliance with the covenants under the facility.

The Unsecured Credit Agreement also includes capacity for uncommitted incremental term loans and revolving commitments, whether in the form of additional facilities or an increase to the existing facilities, up to an aggregate amount for all revolving commitments and term loans under the Unsecured Credit Agreement of $3.2 billion.

At September 30, 2024 and December 31, 2023, unamortized financing costs related to the Company’s credit facility totaled $4.5 million and $6.0 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 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 September 30, 2024, 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.

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 initially aggregating $375.0 million (the “Notes”). At September 30, 2024, the Company had $114.4 million of Notes outstanding. 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 covenants contained in the Company’s Unsecured Credit Agreement 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 September 30, 2024, the Company was in compliance with its covenants under the NPAs.

The Company’s Unsecured Credit Agreement, provides for the Company’s Unsecured Revolving Credit Facility, as discussed above, and two unsecured, variable-rate term loans. The loans consist of an unsecured, variable rate term loan issued in February 2023 (“February 2023 Unsecured Term Loan”) and an unsecured, variable rate term loan issued in December 2023 (“December 2023 Unsecured Term Loan”).

The February 2023 Unsecured Term Loan had initial borrowings of $600.0 million and was amended throughout 2023 to increase total borrowings to $921.1 million; as of September 30, 2024 and December 31, 2023, total borrowings on the February 2023 Unsecured Term Loan remained at $921.1 million. The February 2023 Unsecured Term Loan matures in April 2027 and the interest rate resets daily at Daily Simple SOFR plus an adjustment of 0.10% plus a spread ranging from 1.10% to 1.70% based on the Company’s consolidated total leverage ratio as defined in the Unsecured Credit Agreement. At September 30, 2024, the spread applicable to the Company was 1.25%. As of September 30, 2024, the Company had 11 interest rate swap agreements, with an aggregate notional value of $921.1 million, which effectively convert the term loan borrowings to an all-in fixed rate of 4.3469% for the remaining term of the loan.

The December 2023 Unsecured Term Loan had borrowings of $592.5 million as of December 31, 2023. In January 2024, the Company entered into an incremental amendment of the existing Unsecured Credit Agreement which provided for an increase to the December 2023 Unsecured Term Loan of $135.0 million; as of September 30, 2024, total term loan borrowings under the December 2023 Unsecured Term Loan were $727.5 million. The December 2023 Unsecured Term Loan matures in July 2026 and includes two 12-month extensions. The interest rate resets daily at Daily Simple SOFR plus an adjustment of 0.10%, plus a spread ranging from 1.20% to 1.80% based on the Company’s consolidated total leverage ratio as defined in the Credit Agreement. At September 30, 2024, the spread applicable to the Company was 1.35%.

During 2023, the Company entered into six interest rate swap agreements, with an aggregate notional value of $592.5 million, which effectively convert the borrowings as of December 31, 2023 to an all-in fixed rate of 5.4520% for the remaining term of the loan. In conjunction with the incremental amendment in January 2024, the Company entered into one interest rate swap agreement with a notional value of $135.0 million, which effectively converts the incremental borrowings to a fixed rate of 5.0095%.

As noted above, under the terms of the Unsecured Credit Agreement, 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. As of September 30, 2024, the Company was in compliance with these covenants. The Unsecured Term Loans are senior unsecured obligations of the Company, require monthly interest payments and may be prepaid without premium or penalty at any time.

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

 

 

 

 

 

 

Outstanding Balance

 

 

Maturity
Date

 

Interest
Rate

 

September 30,
2024

 

 

December 31,
2023

 

Notes Payable:

 

 

 

 

 

 

 

 

 

 

Series B issued November 2015

 

Nov. 2024

 

5.24%

 

$

32,400

 

 

$

32,400

 

Series C issued April 2016

 

Apr. 2026

 

4.73%

 

 

82,000

 

 

 

82,000

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

1,539,400

 

 

 

1,539,400

 

Term Loans:

 

 

 

 

 

 

 

 

 

 

Term Loan issued December 2023 (a)

 

Jul. 2026

 

5.3699% (b)

 

 

727,500

 

 

 

592,500

 

Term Loan issued February 2023

 

Apr. 2027

 

4.3469% (c)

 

 

921,100

 

 

 

921,100

 

Total term loans

 

 

 

 

 

 

1,648,600

 

 

 

1,513,600

 

Unamortized discount

 

 

 

 

 

 

(177,236

)

 

 

(200,875

)

Unamortized deferred financing costs

 

 

 

 

 

 

(10,364

)

 

 

(12,417

)

Total unsecured notes and term loans payable, net

 

 

 

 

 

$

3,000,400

 

 

$

2,839,708

 

 

(a)
Term loan was issued in December 2023 with borrowings of $592.5 million and amended in January 2024 to increase the total term loan borrowings to $727.5 million.
(b)
Loan is a floating-rate loan which resets daily at Daily Simple SOFR plus an adjustment of 0.10% plus the applicable spread, which was 1.35% at September 30, 2024. The Company has entered into seven interest rate swap agreements that effectively convert the floating rate to the weighted-average fixed rate noted as of September 30, 2024.
(c)
Loan is a floating-rate loan which resets daily at Daily Simple SOFR plus an adjustment of 0.10% plus the applicable spread, which was 1.25% at September 30, 2024. The Company has entered into 11 interest rate swap agreements that effectively convert the floating rate to the weighted-average fixed rate noted as of September 30, 2024.

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 $210.0 million at September 30, 2024.

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 September 30, 2024, 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 $4.9 billion.

Certain of the 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 $233.5 million at September 30, 2024.

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):

 

 

 

 

 

 

 

Outstanding Balance

 

 

Maturity
Date

 

Interest
Rate

 

September 30,
2024

 

 

December 31,
2023

 

Non-recourse net-lease mortgage notes:

 

 

 

 

 

 

 

 

 

 

$150,000 Series 2018-1, Class A-1 (a)

 

 

 

3.96%

 

$

—

 

 

$

139,052

 

$50,000 Series 2018-1, Class A-3 (a)

 

 

 

4.40%

 

 

—

 

 

 

47,917

 

$270,000 Series 2015-1, Class A-2

 

Apr. 2025 (b)

 

4.17%

 

 

257,287

 

 

 

258,300

 

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

 

Oct. 2026 (b)

 

3.96%

 

 

167,856

 

 

 

171,355

 

$82,000 Series 2019-1, Class A-1

 

Nov. 2026 (b)

 

2.82%

 

 

77,463

 

 

 

77,770

 

$46,000 Series 2019-1, Class A-3

 

Nov. 2026 (b)

 

3.32%

 

 

44,888

 

 

 

45,061

 

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

 

Apr. 2027 (b)

 

4.32%

 

 

114,885

 

 

 

117,201

 

$228,000 Series 2018-1, Class A-2

 

Oct. 2027 (c)

 

4.29%

 

 

209,648

 

 

 

211,358

 

$164,000 Series 2018-1, Class A-4

 

Oct. 2027 (c)

 

4.74%

 

 

155,937

 

 

 

157,167

 

$346,000 Series 2023-1, Class A-1

 

May 2028 (b)

 

6.19%

 

 

343,693

 

 

 

344,991

 

$182,000 Series 2023-1, Class A-2

 

May 2028 (b)

 

6.92%

 

 

180,787

 

 

 

181,469

 

$168,500 Series 2021-1, Class A-1

 

Jun. 2028 (b)

 

2.12%

 

 

165,762

 

 

 

166,394

 

$89,000 Series 2021-1, Class A-3

 

Jun. 2028 (b)

 

2.86%

 

 

87,554

 

 

 

87,887

 

$74,400 Series 2024-1, Class A-1

 

Apr. 2029 (b)

 

5.69%

 

 

74,245

 

 

 

—

 

$25,600 Series 2024-1, Class A-3

 

Apr. 2029 (b)

 

5.93%

 

 

25,547

 

 

 

—

 

$260,600 Series 2024-1, Class A-2

 

Apr. 2031 (b)

 

5.70%

 

 

260,057

 

 

 

—

 

$89,400 Series 2024-1, Class A-4

 

Apr. 2031 (b)

 

5.94%

 

 

89,214

 

 

 

—

 

$168,500 Series 2021-1, Class A-2

 

Jun. 2033 (c)

 

2.96%

 

 

165,762

 

 

 

166,394

 

$89,000 Series 2021-1, Class A-4

 

Jun. 2033 (c)

 

3.70%

 

 

87,554

 

 

 

87,887

 

$244,000 Series 2019-1, Class A-2

 

Nov. 2034 (c)

 

3.65%

 

 

230,499

 

 

 

231,414

 

$136,000 Series 2019-1, Class A-4

 

Nov. 2034 (c)

 

4.49%

 

 

132,713

 

 

 

133,223

 

Total non-recourse net-lease mortgage notes

 

 

 

 

 

 

2,871,351

 

 

 

2,624,840

 

Non-recourse mortgage notes:

 

 

 

 

 

 

 

 

 

 

$10,075 note issued March 2014 (d)

 

 

 

5.10%

 

 

—

 

 

 

8,386

 

$65,000 note issued June 2016

 

Jul. 2026 (e)

 

4.75%

 

 

55,663

 

 

 

56,674

 

$41,690 note issued March 2019

 

Mar. 2029 (f)

 

4.80%

 

 

39,490

 

 

 

40,001

 

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

 

Apr. 2049 (e)

 

4.64%

 

 

5,781

 

 

 

5,874

 

Total non-recourse mortgage notes

 

 

 

 

 

 

100,934

 

 

 

110,935

 

Unamortized discount

 

 

 

 

 

 

(138,266

)

 

 

(164,326

)

Unamortized deferred financing costs

 

 

 

 

 

 

(5,093

)

 

 

(2,975

)

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

 

 

 

 

 

$

2,828,926

 

 

$

2,568,474

 

 

(a)
Notes were prepaid, without penalty, in April 2024 using a portion of the proceeds from the aggregate $450.0 million STORE Master Funding Series 2024-1 issuance.
(b)
Prepayable, without penalty, 24 months prior to maturity.
(c)
Prepayable, without penalty, 36 months prior to maturity.
(d)
Note was repaid, without penalty, in April 2024 at maturity.
(e)
Prepayable, without penalty, three months prior to maturity.
(f)
Prepayable, without penalty, four months prior to maturity.

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 September 30, 2024, the termination value of the Company’s interest rate swaps that were in a liability position was approximately $17.9 million, which includes accrued interest but excludes any adjustment for nonperformance risk.

Long-term Debt Maturity Schedule

As of September 30, 2024, 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 2024

 

$

6,355

 

 

$

32,400

 

 

$

38,755

 

2025

 

 

24,667

 

 

 

256,612

 

 

 

281,279

 

2026

 

 

22,618

 

 

 

1,141,642

 

 

 

1,164,260

 

2027

 

 

14,112

 

 

 

1,381,572

 

 

 

1,395,684

 

2028

 

 

7,841

 

 

 

1,113,615

 

 

 

1,121,456

 

2029

 

 

5,358

 

 

 

483,585

 

 

 

488,943

 

Thereafter

 

 

20,801

 

 

 

1,649,107

 

 

 

1,669,908

 

 

$

101,752

 

 

$

6,058,533

 

 

$

6,160,285

 

 
v3.24.3
Equity
 9 Months Ended
Sep. 30, 2024
Equity  
Equity

5. Equity

Stockholders’ Equity (Predecessor)

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 could 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”). For the period from January 1, 2023 to February 2, 2023, there were no common stock issuances under the 2020 ATM Program. Upon closing of the Merger, on February 3, 2023, the 2020 ATM Program was terminated.

Pursuant to the terms and conditions of the Merger Agreement, at or immediately prior to, as applicable, the effective time of the Merger, each share of common stock of the Company, par value $0.01 per share (“Common Stock”), other than shares of Common Stock held by STORE Capital, the Parent Parties or any of their respective wholly-owned subsidiaries, issued and outstanding immediately prior to the merger effective time, was automatically cancelled and converted into the right to receive an amount in cash equal to the Merger Consideration, without interest.

Members’ Equity (Successor)

In connection with the Merger, the Company issued 1,000 common units (“Common Units”) to its members for an aggregate cash amount of $8.3 billion. Prior to the Merger, the Company issued 125 Series A Preferred Units (the “Preferred Units”) for an aggregate cash amount of $125,000. The issuance of the Preferred Units was made through a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

In accordance with the Company’s operating agreement, members holding Preferred Units (“Preferred Members”) receive distributions bi-annually and Members holding Common Units (“Common Members”) may receive distributions monthly. Common Members may be subject to capital calls. Except for their initial capital contribution, no Preferred Members may make any additional capital contributions. Additionally, no Preferred Members have the right to demand a withdrawal, reduction or return of its capital contributions or receive interest thereon.

The Preferred Units rank senior to the Common Units of the Company and to all other membership interests and equity securities issued by the Company with respect to distribution and redemption rights and rights upon liquidation, dissolution or winding up of the Company.
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
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 September 30, 2024, the Company had commitments to its customers to fund improvements to owned or mortgaged real estate properties totaling approximately

$205.8 million, of which $180.7 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 cash incentive compensation based on the satisfactory achievement of reasonable performance criteria and objectives on an annual and multi-year basis. In the event an executive officer’s employment terminates under certain circumstances, the Company would be liable for cash severance and continuation of healthcare benefits under the terms of the employee agreements.

v3.24.3
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2024
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 Company has elected to present the fair value of derivative assets and liabilities within the condensed consolidated balance sheets on a net basis by counterparty. The net derivative assets are included in other assets, and the net derivative liabilities, if any, are included in accrued expenses, deferred revenue and other liabilities on the condensed consolidated balance sheets.

The following table summarizes the net derivative balances recorded on the condensed consolidated balance sheets and provides information as if the Company had not elected to offset the asset and liability balances of the derivative instruments with each of its counterparties in accordance with the associated master International Swap and Derivatives Association agreement (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

Derivative assets:

 

 

 

 

 

 

Net derivative assets presented in the condensed consolidated balance sheets

 

$

7,356

 

 

$

20,208

 

Gross amount of eligible offsetting recognized derivative liabilities

 

 

6,461

 

 

 

6,262

 

Gross amount of derivative assets

 

$

13,817

 

 

$

26,470

 

 

 

 

 

 

 

Derivative liabilities:

 

 

 

 

 

 

Net derivative liabilities presented in the condensed consolidated balance sheets

 

$

(12,411

)

 

$

(4,815

)

Gross amount of eligible offsetting recognized derivative assets

 

 

(6,461

)

 

 

(6,262

)

Gross amount of derivative liabilities

 

$

(18,872

)

 

$

(11,077

)

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 September 30, 2024 and December 31, 2023. 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 condensed 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 current 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 September 30, 2024, these debt obligations had an aggregate carrying value of $5.8 billion and an estimated fair value of $6.0 billion. At December 31, 2023, these debt obligations had an aggregate carrying value of $5.4 billion and an estimated fair value of $5.3 billion.
v3.24.3
Summary of Significant Accounting Principles (Policies)
 9 Months Ended
Sep. 30, 2024
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, 2023.

These condensed consolidated statements include the accounts of STORE Capital Corporation and its wholly-owned subsidiaries and special purpose entities that it controlled through its voting interest for the periods prior to the Merger. For the periods after the Merger, these condensed consolidated statements include the accounts of STORE Capital LLC, its wholly-owned subsidiaries, and special purpose entities and variable interest entities (“VIEs”) that it controls through its voting interest and other means. One of the Company’s wholly owned subsidiaries, STORE Capital Advisors, LLC, provides all 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 consolidated subsidiaries are special purpose entities or VIEs. Each special purpose entity or VIE is a separate legal entity and is the sole owner of its assets and liabilities. The assets of the special purpose entities or VIEs may only be used to settle the liabilities of such entity and are not available to pay or otherwise satisfy obligations to the creditors of any owner or affiliate of the applicable special purpose entity or VIE. At September 30, 2024 and December 31, 2023, these special purpose entities held assets totaling $13.0 billion and $12.9 billion, respectively, and had third-party liabilities totaling $3.1 billion and $2.8 billion, respectively. At September 30, 2024 and December 31, 2023, these VIEs held assets totaling $268.6 million and $267.9 million, respectively, and had third-party liabilities totaling $1.3 million and $3.1 million, respectively. These assets and liabilities are included in the accompanying condensed consolidated balance sheets.

The Company is required to continually evaluate its VIE relationships and consolidate these entities when it is determined to be the primary beneficiary of their operations. A VIE is broadly defined as an entity where either: (i) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support, (ii) substantially all of an entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights, or (iii) the equity investors as a group lack any of the following: (a) the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance, (b) the obligation to absorb the expected losses of an entity, or (c) the right to receive the expected residual returns of an entity.

The designation of an entity as a VIE is reassessed upon certain events, including, but not limited to: (i) a change to the contractual arrangements of the entity or in the ability of a party to exercise its participation or kick-out rights, (ii) a change to the capitalization structure of the entity, or (iii) acquisitions or sales of interests that constitute a change in control.

 

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, which activities most significantly impact the entity’s economic performance and the ability to direct those activities, the variable interest holder’s form of ownership interest, the variable interest holder’s representation on the VIE’s governing body, the size and seniority of the variable interest holder’s investment, the variable interest holder’s ability and the rights of other investors to participate in policy making decisions, the variable interest holder’s ability to manage its ownership interest relative to the other interest holders, and the variable interest holder’s ability to replace the VIE manager and/or liquidate the entity.

For its investments in entities that are not considered to be VIEs, the Company evaluates the type of ownership rights held by each party with an interest in the entity to determine if the Company holds a controlling financial interest. The assessment of whether the Company holds a controlling financial interest is made at inception of the entity and continually reassessed.

Consolidated VIE

The Company holds a 95% ownership interest in and is the managing member of a joint venture entity formed in December 2023 that owns and leases real estate to lessees that are affiliates of the noncontrolling interest holder. The Company also provided a $105.2 million loan to the joint venture. The Company classifies the joint venture as a VIE, as the equity holders do not have the obligation to absorb all future losses of the joint venture due to a provision that protects the equity holders from certain losses if an event of default occurs under the leases. The Company consolidates the joint venture as the primary beneficiary because it has the ability to control the activities that most significantly impact the VIE’s economic performance. The assets of the joint venture primarily consist of leased properties (net lease real estate accounted for as financing arrangements) and cash; its obligations primarily consist of debt service payments to the Company, which are eliminated in consolidation.

Accounting for the Merger

The Merger was accounted for using the asset acquisition method of accounting in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC Topic 805”), which requires that the cost of an acquisition be allocated on a relative fair value basis to the assets purchased and the liabilities assumed. Direct transaction costs incurred by STORE Capital LLC as the acquirer and amounts transferred to reimburse STORE Capital Corporation for costs incurred as the acquiree to sell the business are included in the consideration transferred and capitalized as a component of the cost of the assets acquired. An assembled workforce intangible asset is recorded at the acquisition date if it is part of the asset group acquired. Goodwill is not recognized in an asset acquisition and consideration transferred in excess over the fair value of the net assets acquired, if any, is allocated on a relative fair value basis to the identifiable assets and liabilities. See Note 10 of 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, 2023.

As noted above, the condensed consolidated financial statements of STORE Capital LLC reflect the recording of assets and liabilities at fair value as of the date of the Merger. The Merger resulted in the termination of the prior reporting entity and a corresponding creation of a new reporting entity. Accordingly, the Company’s condensed consolidated financial statements and transactional records prior to the Closing Date, or February 3, 2023, reflect the historical accounting basis of assets and liabilities and are labeled “Predecessor” while such records subsequent to the Closing Date reflect the fair value of assets acquired and liabilities assumed in the Company’s condensed consolidated financial statements and are labeled “Successor”. This change in reporting entity is represented in the condensed consolidated financial statements by a black line that appears between “Predecessor” and “Successor” on the statements and in the relevant notes. The black line signifies that the amounts shown for the periods prior to and subsequent to the Merger are not comparable.
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 FASB’s 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 in one of two ways, either 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, or through acquisitions from third-party sellers in connection with which a new lease is entered into with the tenant. Both approaches result in long-term leases which are generally classified as operating leases and, in both cases, the operators become the Company’s long‑term tenants (its customers). In certain instances, the terms of the lease result in classification as a finance lease instead of an operating lease. Furthermore, certain of the lease contracts that are specifically 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 Company’s adoption of ASC Topic 842, rather than as an investment in real estate subject to an operating or finance lease.
•
Mortgage Loans Receivable – investments are made by issuing mortgage loans to the owner-operators of the real estate that serves 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. 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.
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 that 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 sheets; 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 contractual 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 20 to 40 years for buildings and is generally 10 to 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 September 30, 2024 and December 31, 2023, the Company had $32.5 million and $13.3 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. Often, these escalators increase rent at (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 achieved. Approximately 3.1% 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 operations.
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 nine months ended September 30, 2024 the Company recognized an aggregate provision for the impairment of real estate of $8.7 million and $22.8 million, respectively. For the assets impaired in 2024, the estimated aggregate fair value of the impaired real estate assets at the time of impairment aggregated $77.9 million. For the three months ended September 30, 2023 and for the period from February 3, 2023 through September 30, 2023, the Company recognized an aggregate provision for the impairment of real estate of $5.5 million and $12.1 million, respectively. No impairment of real estate was recognized during the period from January 1, 2023 through February 2, 2023.
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 September 30, 2024 and December 31, 2023, the Company had loans receivable with an aggregate outstanding principal balance of $65.7 million and $54.8 million, respectively, on nonaccrual status.

Sales-Type Receivables – Classification, Cost and Revenue Recognition

Sales-type receivables are recorded at their net investment, determined as the present value of both the aggregate minimum lease payments and the estimated residual value of the leased property.

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. During the three and nine months ended September 30, 2024 the Company recognized an estimated $2.7 million and $6.0 million, respectively, provision for credit losses related to its loans and financing receivables; the provision for credit losses is included in provisions for impairment on the condensed consolidated statements of operations. For the three months ended September 30, 2023 and for the period from February 3, 2023 through September 30, 2023, the Company recognized an estimated $1.1 million and $6.8 million, respectively, of provisions for credit losses. For the period from January 1, 2023 through February 2, 2023, no provisions for credit

losses were recognized. For the three and nine months ended September 30, 2024, the three months ended September 30, 2023, the period from February 3, 2023 through September 30, 2023 and the period from January 1, 2023 through February 2, 2023 the Company did not write off any credit losses associated with loans receivable.
Sales-Type Receivables - Classification, Cost and Revenue Recognition

Sales-Type Receivables – Classification, Cost and Revenue Recognition

Sales-type receivables are recorded at their net investment, determined as the present value of both the aggregate minimum lease payments and the estimated residual value of the leased property.
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 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 major financial institutions, 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 $28.8 million and $10.8 million of restricted cash at September 30, 2024 and December 31, 2023, respectively, which are included in other assets, net, on the condensed consolidated balance sheets.

Deferred Financing and Other Debt Costs

Deferred Financing and Other Debt 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. Costs paid to a lender as part of a debt issuance are recorded as a debt discount 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. 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 September 30, 2024, the Company had 21 interest rate swap agreements in place. Eleven of the interest rate swap agreements have an aggregate notional value of $921.1 million, with ten maturing in May 2027 and one maturing in May 2029, and are designated cash flow hedges of the Company’s $921.1 million variable-rate bank unsecured term loan which matures in April 2027 (Note 4). Three interest rate swap agreements with an aggregate notional value of $375.0 million and maturing in February 2027 are designated cash flow hedges of the Company’s variable-rate unsecured revolving credit facility which matures in February 2027 (Note 4). Seven of the interest rate swap agreements with an aggregate notional value of $727.5 million, two with maturities in February 2027, and five with maturities in July 2028, are designated cash flow hedges of the Company’s $727.5 million floating-rate bank incremental unsecured term loan which matures in July 2026 (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.
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.

Following the Merger, the Company’s new ownership structure and status as a privately held REIT caused multiple state income tax jurisdictions to view the Company as a captive REIT. Within the jurisdictions where the Company is treated as a captive REIT, the dividends paid deduction may be disallowed, resulting in state income tax liabilities to which the Company was not previously subject when it was publicly traded.

Based on the projected increase in income tax liabilities related to STORE Capital's new status as a captive REIT in multiple state tax jurisdictions, the Company, in addition to its existing obligation to compute current income tax expense, is now in a position where it needs to calculate deferred income taxes attributable to its temporary differences. While current income taxes are based upon the current period's income taxable for state tax reporting purposes, deferred income taxes (benefits) are provided for certain income and expenses, which are recognized in different periods for tax and financial reporting purposes. Deferred tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the period in which the differences are expected to affect taxable income, and net operating loss (“NOL”) carryforwards.

As required by ASC Topic 740, Income Taxes, management of the Company has evaluated the evidence bearing upon the realizability of its deferred tax assets, which is ultimately dependent upon the sources of future taxable income during the periods

temporary differences become deductible. Based on the weight of available evidence, both positive and negative, management has determined that it is "more-likely-than-not" that the Company will not realize the benefits of its deferred tax assets.

The Company recorded income tax benefit of $2.7 million and income tax expense of $1.6 million for the three and nine months ended September 30, 2024, respectively, and income tax expense of $1.9 million, $5.9 million, and $0.7 million for the three months ended September 30, 2023, the period from February 3, 2023 through September 30, 2023 and the period from January 1, 2023 through February 2, 2023, respectively.

Certain state tax returns filed for 2020 and federal and state tax returns filed for 2021 through 2023 are subject to examination by these jurisdictions. As of September 30, 2024, 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 September 30, 2024 or December 31, 2023.
Related Party Transactions

Related Party Transactions

The Company has a service contract with PCSD Ivory Private Limited, an entity affiliated with GIC, the Company’s majority member, under which it has agreed to perform certain loan servicing and other administrative services on behalf of PCSD Ivory Private Limited in exchange for a servicing fee. During the three and nine months ended September 30, 2024, the Company collected $0.2 million and $0.6 million of fee income, respectively, which is recorded in other income on the condensed consolidated statements of operations. No such amounts were recorded for the period from February 3, 2023 through September 30, 2023 or the period from January 1, 2023 through February 2, 2023.
Net Income Per Common Share

Net Income Per Common Share

Net income per common share has been computed for STORE Capital Corporation 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):

 

 

 

Predecessor

 

 

Period from
January 1, 2023
through
February 2, 2023

 

Numerator:

 

 

 

Net income

 

$

25,787

 

Less: Earnings attributable to unvested restricted shares

 

 

(41

)

Net income used in basic and diluted income per share

 

$

25,746

 

Denominator:

 

 

 

Weighted average common shares outstanding

 

 

282,684,998

 

Less: Weighted average number of shares of unvested restricted stock

 

 

(446,847

)

Weighted average shares outstanding used in basic income per share

 

 

282,238,151

 

Effects of dilutive securities:

 

 

 

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

 

 

100,254

 

Weighted average shares outstanding used in diluted income per share

 

 

282,338,405

 

 

(a)
For the period from January 1, 2023 to February 2, 2023, excludes 197,026 shares 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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. While STORE only has one reportable segment, the Company is currently evaluating the potential impact the adoption of ASU 2023-07 will have on its future disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the potential impact the adoption of ASU 2023-09 will have on the consolidated financial statements or notes to the consolidated financial statements.
v3.24.3
Summary of Significant Accounting Principles (Tables)
 9 Months Ended
Sep. 30, 2024
Summary of Significant Accounting Principles  
Reconciliation of Numerator and Denominator Used in 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):

 

 

 

Predecessor

 

 

Period from
January 1, 2023
through
February 2, 2023

 

Numerator:

 

 

 

Net income

 

$

25,787

 

Less: Earnings attributable to unvested restricted shares

 

 

(41

)

Net income used in basic and diluted income per share

 

$

25,746

 

Denominator:

 

 

 

Weighted average common shares outstanding

 

 

282,684,998

 

Less: Weighted average number of shares of unvested restricted stock

 

 

(446,847

)

Weighted average shares outstanding used in basic income per share

 

 

282,238,151

 

Effects of dilutive securities:

 

 

 

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

 

 

100,254

 

Weighted average shares outstanding used in diluted income per share

 

 

282,338,405

 

 

(a)
For the period from January 1, 2023 to February 2, 2023, excludes 197,026 shares related to unvested restricted shares as the effect would have been antidilutive.
v3.24.3
Investments (Tables)
 9 Months Ended
Sep. 30, 2024
Investments [Abstract]  
Schedule of Gross Real Estate and Loan Activity During the nine months ended September 30, 2024, 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, 2023

 

 

3,206

 

 

$

14,801,634

 

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

 

 

64

 

 

 

481,218

 

Investment in loans and financing receivables (a)

 

 

57

 

 

 

373,389

 

Sales of real estate

 

 

(82

)

 

 

(284,639

)

Principal collections on loans and financing receivables

 

 

—

 

 

 

(1,597

)

Net change in operating ground lease assets (b)

 

 

 

 

 

5,481

 

Provisions for impairment

 

 

 

 

 

(28,823

)

Other

 

 

 

 

 

4,167

 

Gross investments, September 30, 2024 (c)

 

 

 

 

 

15,350,830

 

Less accumulated depreciation and amortization (c)

 

 

 

 

 

(931,069

)

Net investments, September 30, 2024 (e)

 

 

3,245

 

 

$

14,419,761

 

 

(a)
Excludes $24.2 million of total tenant improvement advances disbursed in 2024 which were accrued as of December 31, 2023.
(b)
Represents new operating ground lease asset recognized net of amortization during the nine months ended September 30, 2024.
(c)
Includes the below-market lease liabilities ($143.8 million) and the accumulated amortization ($14.4 million) of the liabilities recorded on the condensed consolidated balance sheets as intangible lease liabilities as of September 30, 2024.
(d)
Includes $13.2 million of tenant funded improvements during 2024.
(e)
In connection with certain acquisitions completed during the nine months ended September 30, 2024, the Company modified existing operating leases in a manner which required them to be accounted for as finance leases in accordance with ASC Topic 842. As a result, the Company reclassified $156.5 million of net real estate investments to loans and financing receivables, net on the condensed consolidated balance sheets. The Company also recognized a $16.0 million non-cash net gain in connection with the modification which is included in net gain (loss) on dispositions of real estate in the condensed consolidated statements of operations.
Schedule of Revenue Recognized from Investment Portfolio

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

 

 

Successor

 

 

 

Predecessor

 

 

Three Months Ended September 30,

 

 

Nine Months Ended

 

 

Period from
February 3, 2023
through

 

 

 

Period from
January 1, 2023 through

 

 

 

2024

 

 

2023

 

 

September 30, 2024

 

 

September 30, 2023

 

 

 

February 2, 2023

 

Rental revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating leases (a)

 

$

245,228

 

 

$

234,405

 

 

$

736,537

 

 

$

620,605

 

 

 

$

75,005

 

Sublease income - operating ground leases (b)

 

 

780

 

 

 

703

 

 

 

2,186

 

 

 

1,874

 

 

 

 

234

 

Amortization of lease related intangibles and costs

 

 

1,380

 

 

 

1,387

 

 

 

4,102

 

 

 

3,796

 

 

 

 

(231

)

Total rental revenues

 

$

247,388

 

 

$

236,495

 

 

$

742,825

 

 

$

626,275

 

 

 

$

75,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income on loans and financing receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage and other loans receivable

 

$

3,310

 

 

$

14,505

 

 

$

7,190

 

 

$

26,375

 

 

 

$

2,434

 

Sale-leaseback transactions accounted
   for as financing arrangements

 

 

21,403

 

 

 

7,830

 

 

 

57,116

 

 

 

21,141

 

 

 

 

2,444

 

Sales-type and financing receivables

 

 

8,939

 

 

 

2,744

 

 

 

18,129

 

 

 

7,703

 

 

 

 

448

 

Total interest income on loans
   and financing receivables

 

$

33,652

 

 

$

25,079

 

 

$

82,435

 

 

$

55,219

 

 

 

$

5,326

 

 

(a)
For the three months ended September 30, 2024 and 2023, includes $1.1 million and $893,000, respectively, of property tax tenant reimbursement revenue and includes $385,000 and $592,000, respectively, of variable lease revenue. For the nine months ended September 30, 2024, the period from February 3, 2023 through September 30, 2023, and the period from January 1, 2023 through February 2, 2023 includes $3.3 million, $2.3 million and $252,000, respectively, of property tax tenant reimbursement revenue and includes $921,000, $909,000 and $24,000, 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.
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 September 30, 2024, are as follows (in thousands):

 

Remainder of 2024

 

$

240,706

 

2025

 

 

969,998

 

2026

 

 

966,009

 

2027

 

 

955,148

 

2028

 

 

939,628

 

2029

 

 

913,271

 

Thereafter

 

 

7,760,272

 

Total future minimum rentals (a)

 

$

12,745,032

 

 

(a)
Excludes future minimum rentals to be received under lease contracts associated with sale-leaseback transactions accounted for as financing arrangements and sales-type financing receivables. 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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

In-place leases

 

$

558,462

 

 

$

577,808

 

Above-market leases

 

 

37,389

 

 

 

37,519

 

Total intangible lease assets

 

 

595,851

 

 

 

615,327

 

Accumulated amortization

 

 

(89,566

)

 

 

(51,650

)

Net intangible lease assets

 

$

506,285

 

 

$

563,677

 
Schedule of Intangible Lease Liabilities

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

Below-market leases

 

$

143,775

 

 

$

148,686

 

Accumulated amortization

 

 

(14,399

)

 

 

(8,170

)

Net intangible lease liabilities

 

$

129,376

 

 

$

140,516

 

 
Summary of Future Minimum Lease Payments

The future minimum lease payments to be paid under the operating ground leases as of September 30, 2024 were as follows (in thousands):

 

 

 

 

 

 

Ground

 

 

 

 

 

Ground

 

 

Leases

 

 

 

 

 

Leases

 

 

Paid by

 

 

 

 

 

Paid by

 

 

STORE Capital's

 

 

 

 

 

STORE Capital

 

 

Tenants (a)

 

 

Total

 

Remainder of 2024

 

$

14

 

 

$

1,163

 

 

$

1,177

 

2025

 

 

57

 

 

 

3,035

 

 

 

3,092

 

2026

 

 

57

 

 

 

3,041

 

 

 

3,098

 

2027

 

 

57

 

 

 

3,041

 

 

 

3,098

 

2028

 

 

57

 

 

 

3,071

 

 

 

3,128

 

2029

 

 

58

 

 

 

3,158

 

 

 

3,216

 

Thereafter

 

 

3,258

 

 

 

110,279

 

 

 

113,537

 

Total lease payments

 

 

3,558

 

 

 

126,788

 

 

 

130,346

 

Less imputed interest

 

 

(2,936

)

 

 

(75,230

)

 

 

(78,166

)

Total operating lease liabilities - ground leases

 

$

622

 

 

$

51,558

 

 

$

52,180

 

 

(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 $126.8 million commitment, $86.5 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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Type

 

Interest
Rate (a)

 

Maturity
Date

 

September 30,
2024

 

 

December 31,
2023

 

Nine mortgage loans receivable (b)

 

9.03%

 

2024 - 2056

 

$

124,754

 

 

$

125,093

 

Equipment and other loans receivable

 

9.87%

 

2024 - 2036

 

 

23,443

 

 

 

13,958

 

Total principal amount outstanding—loans receivable

 

 

 

 

 

 

148,197

 

 

 

139,051

 

Unamortized loan origination costs

 

 

 

 

 

 

101

 

 

 

61

 

Unamortized loan premium

 

 

 

 

 

 

646

 

 

 

664

 

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

 

8.50%

 

2034 - 2122

 

 

1,056,602

 

 

 

839,902

 

Sales-type financing receivables

 

8.82%

 

2044 - 2054

 

 

461,961

 

 

 

131,969

 

Allowance for credit and loan losses

 

 

 

 

 

 

(13,690

)

 

 

(7,716

)

Total loans and financing receivables

 

 

 

 

 

$

1,653,817

 

 

$

1,103,931

 

 

(a)
Represents the weighted average interest rate as of the balance sheet date.
(b)
One of these mortgage loans allows for a prepayment in whole, but not in part, with a penalty 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 2122 and the purchase options expire between 2024 and 2073.
Schedule of Maturities of Loans Receivable

 

 

Scheduled

 

 

 

 

 

 

 

 

Principal

 

 

Balloon

 

 

Total

 

 

Payments

 

 

Payments

 

 

Payments

 

Remainder of 2024

 

$

394

 

 

$

10,175

 

 

$

10,569

 

2025

 

 

1,483

 

 

 

—

 

 

 

1,483

 

2026

 

 

1,705

 

 

 

9,835

 

 

 

11,540

 

2027

 

 

1,685

 

 

 

395

 

 

 

2,080

 

2028

 

 

1,687

 

 

 

1,953

 

 

 

3,640

 

2029

 

 

1,663

 

 

 

—

 

 

 

1,663

 

Thereafter

 

 

63,184

 

 

 

54,038

 

 

 

117,222

 

Total principal payments

 

$

71,801

 

 

$

76,396

 

 

$

148,197

 

 
Schedule of Sale-Leaseback Transactions

Remainder of 2024

 

$

21,346

 

2025

 

 

87,638

 

2026

 

 

89,042

 

2027

 

 

90,443

 

2028

 

 

91,886

 

2029

 

 

93,430

 

Thereafter

 

 

2,985,500

 

Total future scheduled payments

 

$

3,459,285

 
Schedule of Investments Accounted as Sales-Type Leases

As of September 30, 2024 and December 31, 2023, the Company had $462.0 million and $132.0 million, respectively, of investments accounted for as sales-type leases; the components of these investments were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

Minimum lease payments receivable

 

$

1,330,558

 

 

$

365,516

 

Estimated residual value of leased assets

 

 

7,173

 

 

 

1,521

 

Unearned income

 

 

(875,770

)

 

 

(235,067

)

Net investment

 

$

461,961

 

 

$

131,969

 
v3.24.3
Debt (Tables)
 9 Months Ended
Sep. 30, 2024
Schedule of Maturities of Long-Term Debt

As of September 30, 2024, 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 2024

 

$

6,355

 

 

$

32,400

 

 

$

38,755

 

2025

 

 

24,667

 

 

 

256,612

 

 

 

281,279

 

2026

 

 

22,618

 

 

 

1,141,642

 

 

 

1,164,260

 

2027

 

 

14,112

 

 

 

1,381,572

 

 

 

1,395,684

 

2028

 

 

7,841

 

 

 

1,113,615

 

 

 

1,121,456

 

2029

 

 

5,358

 

 

 

483,585

 

 

 

488,943

 

Thereafter

 

 

20,801

 

 

 

1,649,107

 

 

 

1,669,908

 

 

$

101,752

 

 

$

6,058,533

 

 

$

6,160,285

 
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):

 

 

 

 

 

 

Outstanding Balance

 

 

Maturity
Date

 

Interest
Rate

 

September 30,
2024

 

 

December 31,
2023

 

Notes Payable:

 

 

 

 

 

 

 

 

 

 

Series B issued November 2015

 

Nov. 2024

 

5.24%

 

$

32,400

 

 

$

32,400

 

Series C issued April 2016

 

Apr. 2026

 

4.73%

 

 

82,000

 

 

 

82,000

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

1,539,400

 

 

 

1,539,400

 

Term Loans:

 

 

 

 

 

 

 

 

 

 

Term Loan issued December 2023 (a)

 

Jul. 2026

 

5.3699% (b)

 

 

727,500

 

 

 

592,500

 

Term Loan issued February 2023

 

Apr. 2027

 

4.3469% (c)

 

 

921,100

 

 

 

921,100

 

Total term loans

 

 

 

 

 

 

1,648,600

 

 

 

1,513,600

 

Unamortized discount

 

 

 

 

 

 

(177,236

)

 

 

(200,875

)

Unamortized deferred financing costs

 

 

 

 

 

 

(10,364

)

 

 

(12,417

)

Total unsecured notes and term loans payable, net

 

 

 

 

 

$

3,000,400

 

 

$

2,839,708

 

 

(a)
Term loan was issued in December 2023 with borrowings of $592.5 million and amended in January 2024 to increase the total term loan borrowings to $727.5 million.
(b)
Loan is a floating-rate loan which resets daily at Daily Simple SOFR plus an adjustment of 0.10% plus the applicable spread, which was 1.35% at September 30, 2024. The Company has entered into seven interest rate swap agreements that effectively convert the floating rate to the weighted-average fixed rate noted as of September 30, 2024.
(c)
Loan is a floating-rate loan which resets daily at Daily Simple SOFR plus an adjustment of 0.10% plus the applicable spread, which was 1.25% at September 30, 2024. The Company has entered into 11 interest rate swap agreements that effectively convert the floating rate to the weighted-average fixed rate noted as of September 30, 2024.
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):

 

 

 

 

 

 

 

Outstanding Balance

 

 

Maturity
Date

 

Interest
Rate

 

September 30,
2024

 

 

December 31,
2023

 

Non-recourse net-lease mortgage notes:

 

 

 

 

 

 

 

 

 

 

$150,000 Series 2018-1, Class A-1 (a)

 

 

 

3.96%

 

$

—

 

 

$

139,052

 

$50,000 Series 2018-1, Class A-3 (a)

 

 

 

4.40%

 

 

—

 

 

 

47,917

 

$270,000 Series 2015-1, Class A-2

 

Apr. 2025 (b)

 

4.17%

 

 

257,287

 

 

 

258,300

 

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

 

Oct. 2026 (b)

 

3.96%

 

 

167,856

 

 

 

171,355

 

$82,000 Series 2019-1, Class A-1

 

Nov. 2026 (b)

 

2.82%

 

 

77,463

 

 

 

77,770

 

$46,000 Series 2019-1, Class A-3

 

Nov. 2026 (b)

 

3.32%

 

 

44,888

 

 

 

45,061

 

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

 

Apr. 2027 (b)

 

4.32%

 

 

114,885

 

 

 

117,201

 

$228,000 Series 2018-1, Class A-2

 

Oct. 2027 (c)

 

4.29%

 

 

209,648

 

 

 

211,358

 

$164,000 Series 2018-1, Class A-4

 

Oct. 2027 (c)

 

4.74%

 

 

155,937

 

 

 

157,167

 

$346,000 Series 2023-1, Class A-1

 

May 2028 (b)

 

6.19%

 

 

343,693

 

 

 

344,991

 

$182,000 Series 2023-1, Class A-2

 

May 2028 (b)

 

6.92%

 

 

180,787

 

 

 

181,469

 

$168,500 Series 2021-1, Class A-1

 

Jun. 2028 (b)

 

2.12%

 

 

165,762

 

 

 

166,394

 

$89,000 Series 2021-1, Class A-3

 

Jun. 2028 (b)

 

2.86%

 

 

87,554

 

 

 

87,887

 

$74,400 Series 2024-1, Class A-1

 

Apr. 2029 (b)

 

5.69%

 

 

74,245

 

 

 

—

 

$25,600 Series 2024-1, Class A-3

 

Apr. 2029 (b)

 

5.93%

 

 

25,547

 

 

 

—

 

$260,600 Series 2024-1, Class A-2

 

Apr. 2031 (b)

 

5.70%

 

 

260,057

 

 

 

—

 

$89,400 Series 2024-1, Class A-4

 

Apr. 2031 (b)

 

5.94%

 

 

89,214

 

 

 

—

 

$168,500 Series 2021-1, Class A-2

 

Jun. 2033 (c)

 

2.96%

 

 

165,762

 

 

 

166,394

 

$89,000 Series 2021-1, Class A-4

 

Jun. 2033 (c)

 

3.70%

 

 

87,554

 

 

 

87,887

 

$244,000 Series 2019-1, Class A-2

 

Nov. 2034 (c)

 

3.65%

 

 

230,499

 

 

 

231,414

 

$136,000 Series 2019-1, Class A-4

 

Nov. 2034 (c)

 

4.49%

 

 

132,713

 

 

 

133,223

 

Total non-recourse net-lease mortgage notes

 

 

 

 

 

 

2,871,351

 

 

 

2,624,840

 

Non-recourse mortgage notes:

 

 

 

 

 

 

 

 

 

 

$10,075 note issued March 2014 (d)

 

 

 

5.10%

 

 

—

 

 

 

8,386

 

$65,000 note issued June 2016

 

Jul. 2026 (e)

 

4.75%

 

 

55,663

 

 

 

56,674

 

$41,690 note issued March 2019

 

Mar. 2029 (f)

 

4.80%

 

 

39,490

 

 

 

40,001

 

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

 

Apr. 2049 (e)

 

4.64%

 

 

5,781

 

 

 

5,874

 

Total non-recourse mortgage notes

 

 

 

 

 

 

100,934

 

 

 

110,935

 

Unamortized discount

 

 

 

 

 

 

(138,266

)

 

 

(164,326

)

Unamortized deferred financing costs

 

 

 

 

 

 

(5,093

)

 

 

(2,975

)

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

 

 

 

 

 

$

2,828,926

 

 

$

2,568,474

 

 

(a)
Notes were prepaid, without penalty, in April 2024 using a portion of the proceeds from the aggregate $450.0 million STORE Master Funding Series 2024-1 issuance.
(b)
Prepayable, without penalty, 24 months prior to maturity.
(c)
Prepayable, without penalty, 36 months prior to maturity.
(d)
Note was repaid, without penalty, in April 2024 at maturity.
(e)
Prepayable, without penalty, three months prior to maturity.
(f)
Prepayable, without penalty, four months prior to maturity.
v3.24.3
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value of Financial Instruments  
Summary of Asset and Liability Balances of Derivative Instrument

The following table summarizes the net derivative balances recorded on the condensed consolidated balance sheets and provides information as if the Company had not elected to offset the asset and liability balances of the derivative instruments with each of its counterparties in accordance with the associated master International Swap and Derivatives Association agreement (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2024

 

 

December 31,
2023

 

Derivative assets:

 

 

 

 

 

 

Net derivative assets presented in the condensed consolidated balance sheets

 

$

7,356

 

 

$

20,208

 

Gross amount of eligible offsetting recognized derivative liabilities

 

 

6,461

 

 

 

6,262

 

Gross amount of derivative assets

 

$

13,817

 

 

$

26,470

 

 

 

 

 

 

 

Derivative liabilities:

 

 

 

 

 

 

Net derivative liabilities presented in the condensed consolidated balance sheets

 

$

(12,411

)

 

$

(4,815

)

Gross amount of eligible offsetting recognized derivative assets

 

 

(6,461

)

 

 

(6,262

)

Gross amount of derivative liabilities

 

$

(18,872

)

 

$

(11,077

)
v3.24.3
Summary of Significant Accounting Principles - Additional Information (Details)
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Item
Segment
Sep. 30, 2024
USD ($)
Sep. 30, 2024
Sep. 30, 2024
Instrument
Sep. 30, 2024
Agreement
Jan. 31, 2024
Agreement
Dec. 31, 2023
USD ($)
Agreement
Basis of Accounting and Principles of Consolidation                      
Assets owned           $ 14,988,137,000         $ 14,748,487,000
Liabilities owed           6,587,506,000         6,149,289,000
Variable interest entity ownership percentage         95.00%            
Variable interest entity intercompany loan to joint venture         $ 105,200,000            
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           32,500,000         13,300,000
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)             3.10%        
Contingent rent as a percentage of rental revenue, historical             2.00%        
Impairments                      
Provisions for impairment $ 0 $ 8,700,000 $ 5,500,000 $ 12,100,000 $ 22,800,000            
Estimate fair value of impaired real estate assets         $ 77,900,000            
Loans Receivable                      
Non accrual status loan receivables           65,700,000         54,800,000
Number of classes in portfolio of loans and financing receivables | Item         2            
Restricted cash                      
Restricted cash included in other assets 5,051,000   8,959,000 8,959,000   28,753,000         $ 10,800,000
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           6,160,285,000          
Income Taxes                      
Income tax (benefit) expense 703,000 $ (2,657,000) 1,944,000 5,901,000 $ 1,593,000            
Uncertain income tax positions           0          
Accrual for interest or penalties           0         $ 0
Related Party Transactions                      
Other income 850,000 6,377,000 605,000 3,071,000 16,831,000            
Pcsd Ivory Private Limited                      
Related Party Transactions                      
Other income   200,000     600,000            
Provision For Impairment                      
Loans Receivable                      
Provision for loan losses $ 0 $ 2,700,000 $ 1,100,000 $ 6,800,000 $ 6,000,000            
Loans Receivable                      
Loans Receivable                      
Maximum past due period for loans payments causing nonaccrual status         60 days            
Term loan was issued in February 2023                      
Derivative Instruments and Hedging Activities                      
Carrying amount           921,100,000         921,100,000
Term loan was issued in December 2023                      
Derivative Instruments and Hedging Activities                      
Carrying amount           727,500,000         592,500,000
Unsecured Term Loan                      
Derivative Instruments and Hedging Activities                      
Carrying amount           1,648,600,000         $ 1,513,600,000
Interest Rate Swaps                      
Derivative Instruments and Hedging Activities                      
Number of agreements               21 3 1 6
Current notional amounts           375,000,000          
Interest Rate Swaps | Unsecured Term Loan                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Agreement                 11    
Current notional amounts           921,100,000          
Interest Rate Swaps Maturing In May2027 And May2029 | Designated as Hedging Instrument                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Instrument               11      
Current notional amounts           921,100,000          
Interest Rate Swaps Maturing In February2027 And July2028 | Designated as Hedging Instrument                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Instrument               7      
Current notional amounts           727,500,000          
Interest Rate Swap Mature In February2027 | Designated as Hedging Instrument                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Instrument               3      
Current notional amounts           375,000,000          
Interest Rate Swap Mature In July2028 | Designated as Hedging Instrument                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Instrument               5      
Interest Rate Swap Mature In May2027 | Designated as Hedging Instrument                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Instrument               10      
Interest Rate Swap Mature In May 2029 | Designated as Hedging Instrument                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Instrument               1      
Interest Rate Swaps Mature In February2027 | Designated as Hedging Instrument                      
Derivative Instruments and Hedging Activities                      
Number of agreements | Instrument               2      
Buildings | Maximum                      
Accounting for Real Estate Investments                      
Estimated useful life   40 years     40 years            
Buildings | Minimum                      
Accounting for Real Estate Investments                      
Estimated useful life   20 years     20 years            
Land improvements | Maximum                      
Accounting for Real Estate Investments                      
Estimated useful life   15 years     15 years            
Land improvements | Minimum                      
Accounting for Real Estate Investments                      
Estimated useful life   10 years     10 years            
VIE                      
Basis of Accounting and Principles of Consolidation                      
Assets owned           268,600,000         $ 267,900,000
Liabilities owed           1,300,000         3,100,000
Consolidated Special Purpose Entities                      
Basis of Accounting and Principles of Consolidation                      
Assets owned           13,000,000,000         12,900,000,000
Liabilities owed           $ 3,100,000,000         $ 2,800,000,000
v3.24.3
Summary of Significant Accounting Principles - Reconciliation of Numerator and Denominator Used in Computation of Basic and Diluted Income Per Common Share (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Numerator:          
Net Income (Loss) $ 25,787 $ 32,126 $ (13,426) $ (88,691) $ 83,671
Less: Earnings attributable to unvested restricted shares (41)        
Net income used in basic and diluted income per share $ 25,746        
Denominator:          
Weighted average common shares outstanding 282,684,998        
Less: Weighted average number of shares of unvested restricted stock (in shares) (446,847)        
Weighted average shares outstanding used in basic income per share (in shares) 282,238,151        
Effects of dilutive securities:          
Add: Treasury stock method impact of potentially dilutive securities (in shares) 100,254        
Weighted average shares outstanding used in diluted income per share (in shares) 282,338,405        
v3.24.3
Summary of Significant Accounting Principles - Reconciliation of Numerator and Denominator Used in Computation of Basic and Diluted Income Per Common Share (Parenthetical) (Details)
 1 Months Ended
Feb. 02, 2023
shares
Net Income Per Common Share  
Antidilutive unvested restricted shares (in shares) 197,026
v3.24.3
Investments - Locations - Additional Information (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Property
Dec. 31, 2023
USD ($)
Property
Number of property locations of investments (in locations) 3,245 3,206
Number of owned properties (in properties) 3,206  
Number of properties accounted as financing arrangements 178  
Number of properties owned as direct financing receivables 84  
Number of ground lease interests (in properties) 25  
Number of properties which secure certain mortgage loans (in properties) 14  
Gross acquisition cost of real estate investments | $ $ 13,600,000  
Loans and financing receivables, net | $ 1,653,817 $ 1,103,931
Operating ground lease assets | $ $ 57,548 52,068
Investments assets, percentage attributable to consolidated special purpose entity subsidiaries that are pledged as collateral under the non-recourse obligations of such special purpose entities 34.00%  
Gross investments | $ $ 15,350,830 14,801,634
Intangible lease liabilities | $ $ 143,775 $ 148,686
v3.24.3
Investments - Schedule of Gross Real Estate and Loan Activity (Details)
$ in Thousands
 3 Months Ended 8 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
Property
Sep. 30, 2023
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Property
Number of Investment Locations        
Number of gross investments | Property       3,206
Number of real estate properties acquired | Property       64
Number of properties securing additions to financing receivables | Property       57
Number of real estate properties sold | Property       (82)
Number of properties, Gross investments | Property 3,245     3,245
Dollar Amount of Investments        
Gross investments       $ 14,801,634
Acquisition of and additions to real estate       481,218
Investment in loans and financing receivables       373,389
Sales of real estate       (284,639)
Principal collections on loans and direct financing receivables       (1,597)
Provisions for impairment $ (11,370) $ (6,570) $ (18,926) (28,823)
Other       4,167
Gross investments 15,350,830     15,350,830
Less accumulated depreciation and amortization (931,069)     (931,069)
Net investments $ 14,419,761     14,419,761
Ground leases        
Dollar Amount of Investments        
Net change in operating ground lease assets       $ 5,481
v3.24.3
Investments - Schedule of Gross Real Estate and Loan Activity (Parenthetical) (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Tenant improvement advances disbursed $ 24,200  
Below-market lease liabilities 143,800  
Accumulated amortization 14,399 $ 8,170
Tenant funded improvements 13,167  
Loans and financing receivables, net 1,653,817 $ 1,103,931
Reclassification of real estate investments to loans and financing receivables 156,500  
Non-cash gain $ 16,000  
v3.24.3
Investments - Revenue Recognized from Investment Portfolio (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Rental revenues:          
Operating leases $ 75,005 $ 245,228 $ 234,405 $ 620,605 $ 736,537
Sublease income - operating ground lease assets 234 780 703 1,874 2,186
Amortization of lease related intangibles and costs (231) 1,380 1,387 3,796 4,102
Rental revenues 75,008 247,388 236,495 626,275 742,825
Interest income on loans and financing receivables:          
Mortgage and other loans receivable 2,434 3,310 14,505 26,375 7,190
Sale-leaseback transactions accounted for as financing arrangements 2,444 21,403 7,830 21,141 57,116
Sales-type and financing receivables 448 8,939 2,744 7,703 18,129
Total interest income on loans and financing receivables $ 5,326 $ 33,652 $ 25,079 $ 55,219 $ 82,435
v3.24.3
Investments - Revenue Recognized from Investment Portfolio (Parenthetical) (Details) - USD ($)
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Investments [Abstract]          
Property tax tenant reimbursement revenue $ 252,000 $ 1,100,000 $ 893,000 $ 2,300,000 $ 3,300,000
Variable lease revenue $ 24,000 $ 385,000 $ 592,000 $ 909,000 $ 921,000
v3.24.3
Investments - Significant Credit and Revenue Concentration (Details)
 6 Months Ended 9 Months Ended
Jun. 30, 2024
Sep. 30, 2024
State
Customer
Item
Significant Credit and Revenue Concentration    
Number of industries | Item   140
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 | Customer   635
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% | Item   0
Real estate investment portfolio | Customer concentration | Largest customer, investment portfolio | Maximum    
Significant Credit and Revenue Concentration    
Concentration Percentage   2.50%
Real estate investment portfolio | Product Concentration Risk | Service    
Significant Credit and Revenue Concentration    
Concentration Percentage   61.00%
Real estate investment portfolio | Product Concentration Risk | Service Oriented Retail    
Significant Credit and Revenue Concentration    
Concentration Percentage 13.00%  
Real estate investment portfolio | Product Concentration Risk | Manufacturing    
Significant Credit and Revenue Concentration    
Concentration Percentage   26.00%
Investment portfolio revenues | Customer concentration | Largest customer, investment portfolio revenues    
Significant Credit and Revenue Concentration    
Concentration Percentage   2.40%
v3.24.3
Investments - Real Estate Investments - Additional Information (Details)
 9 Months Ended
Sep. 30, 2024
Property
Options
Item
Real Estate Investments [Line items]  
Remaining noncancelable lease term 14 years
Number of real estate properties vacant not subject to lease | Property 18
Term of renewal options 5 years
Option to extend true
Maximum  
Real Estate Investments [Line items]  
Number of renewal periods at the option of the Company 4
Minimum  
Real Estate Investments [Line items]  
Typical number of renewal options | Item 1
Number of renewal periods at the option of the Company 2
v3.24.3
Investments - Real Estate Investments - Schedule of future minimum rentals to be received under the remaining noncancelable term of the operating leases (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Future minimum rentals to be received under the remaining noncancelable term of the operating leases  
Remainder of 2024 $ 240,706
2025 969,998
2026 966,009
2027 955,148
2028 939,628
2029 913,271
Thereafter 7,760,272
Total future minimum rentals $ 12,745,032
v3.24.3
Investments - Intangible Lease Assets - Schedule detailing intangible lease assets and related accumulated amortization (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Intangible Lease Assets    
Intangible lease assets $ 595,851 $ 615,327
Accumulated amortization (89,566) (51,650)
Net intangible lease assets 506,285 563,677
In -place leases    
Intangible Lease Assets    
Intangible lease assets 558,462 577,808
Above-market leases    
Intangible Lease Assets    
Intangible lease assets $ 37,389 $ 37,519
v3.24.3
Investments - Intangible Lease Assets - Additional Information (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Intangible Lease Assets [Line items]          
Remainder of 2024   $ 13.4     $ 13.4
2025   49.1     49.1
2026   47.4     47.4
2027   45.6     45.6
2028   43.4     43.4
2029   40.4     40.4
Thereafter   234.4     234.4
Depreciation and amortization expense          
Intangible Lease Assets [Line items]          
Amount amortized $ 0.3 $ 13.2 $ 13.7 $ 36.1 $ 39.5
In -place leases          
Intangible Lease Assets [Line items]          
Weighted average remaining amortization period   11 years 9 months 18 days     11 years 9 months 18 days
Above-market leases          
Intangible Lease Assets [Line items]          
Remainder of 2024   $ 0.7     $ 0.7
2025   2.8     2.8
2026   2.8     2.8
2027   2.7     2.7
2028   2.6     2.6
2029   2.5     2.5
Thereafter   $ 18.5     $ 18.5
Weighted average remaining amortization period   13 years 8 months 12 days     13 years 8 months 12 days
Above-market leases | Decrease to rental revenue          
Intangible Lease Assets [Line items]          
Amount amortized $ 0.0 $ 0.7 $ 0.7 $ 2.0 $ 2.1
v3.24.3
Investment - Intangible Lease Liabilities - Schedule of intangible lease liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Investments [Abstract]    
Below Market Lease, Gross $ 143,775 $ 148,686
Accumulated amortization (14,399) (8,170)
Net intangible lease liabilities $ 129,376 $ 140,516
v3.24.3
Investments - Intangible Lease Liabilities- Additional Information (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Dec. 31, 2023
Investments [Abstract]            
Net intangible lease liabilities   $ 129,376     $ 129,376 $ 140,516
Lease intangible liabilities amortization $ 0 2,300 $ 2,300 $ 6,000 6,700  
Remainder of 2024   2,200     2,200  
2025   8,600     8,600  
2026   8,600     8,600  
2027   8,400     8,400  
2028   8,200     8,200  
2029   8,000     8,000  
Thereafter   $ 85,400     $ 85,400  
Weighted average remaining amortization period         22 years 6 months  
v3.24.3
Investment - Operating Lease Asset - Additional Information (Details) - USD ($)
 1 Months Ended 3 Months Ended 8 Months Ended 9 Months Ended
Feb. 02, 2023
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2023
Sep. 30, 2024
Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Operating ground lease assets   $ 57,548,000     $ 57,548,000 $ 52,068,000
Rental revenue $ 234,000 780,000 $ 703,000 $ 1,874,000 2,186,000  
Ground leases            
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]            
Operating ground lease assets   57,500,000     57,500,000  
Lease costs 273,000 1,000,000 874,000 2,300,000 2,800,000  
Rental revenue $ 234,000 $ 780,000 $ 703,000 $ 1,900,000 $ 2,200,000  
v3.24.3
Investments - Operating Lease Asset - Summary of future minimum lease payments (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Future minimum lease payments    
Total operating lease liabilities - ground leases $ 55,174 $ 49,481
Ground lease by STORE capital    
Future minimum lease payments    
Total lease payments 126,800  
Ground leases    
Future minimum lease payments    
Remainder of 2024 1,177  
2025 3,092  
2026 3,098  
2027 3,098  
2028 3,128  
2029 3,216  
Thereafter 113,537  
Total lease payments 130,346  
Less imputed interest (78,166)  
Total operating lease liabilities - ground leases 52,180  
Ground leases | Ground lease by STORE capital    
Future minimum lease payments    
Remainder of 2024 1,163  
2025 3,035  
2026 3,041  
2027 3,041  
2028 3,071  
2029 3,158  
Thereafter 110,279  
Total lease payments 126,788  
Less imputed interest (75,230)  
Total operating lease liabilities - ground leases 51,558  
Ground leases | Ground lease by STORE capital tenants    
Future minimum lease payments    
Remainder of 2024 14  
2025 57  
2026 57  
2027 57  
2028 57  
2029 58  
Thereafter 3,258  
Total lease payments 3,558  
Less imputed interest (2,936)  
Total operating lease liabilities - ground leases $ 622  
v3.24.3
Investment - Operating Lease Asset - Summary of future minimum lease payments (Parenthetical) (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Lease
Ground lease by STORE capital  
Lessee, Lease, Description [Line Items]  
Total lease payments $ 126.8
Long-term lease commitment $ 86.5
Ground lease by STORE capital tenants  
Lessee, Lease, Description [Line Items]  
Number of ground lease payments based on level of tenant's sales | Lease 3
v3.24.3
Investments - Schedule Summarizing Loans and Direct Financing Receivables (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Loan
Dec. 31, 2023
USD ($)
Loans and direct financing receivables    
Number of mortgage loans | Loan 9  
Total principal payments $ 148,197  
Unamortized loan origination costs 101 $ 61
Unamortized loan premium 646 664
Sale-leaseback transactions accounted for as financing arrangements 1,100,000 839,900
Sales-type financing receivables 461,961 131,969
Allowance for credit and loan losses (13,690) (7,716)
Total loans and direct financing receivables 1,653,817 1,103,931
Loans Receivable    
Loans and direct financing receivables    
Total principal payments $ 148,197 139,051
Mortgage Loans Receivable | Mortgage Loans Receivable With Maturity Range 2024 To 2056    
Loans and direct financing receivables    
Stated Interest Rate (as a percent) 9.03%  
Mortgage loans receivable $ 124,754 125,093
Equipment And Other Loans Receivable | Equipment And Other Loans Receivable Maturity Range 2024 To 2036    
Loans and direct financing receivables    
Stated Interest Rate (as a percent) 9.87%  
Equipment and other loans receivable $ 23,443 13,958
Sale Leaseback Transactions Accounted for Financing Arrangements with Maturities Ranging from 2034 to 2122    
Loans and direct financing receivables    
Stated Interest Rate (as a percent) 8.50%  
Sale-leaseback transactions accounted for as financing arrangements $ 1,056,602 839,902
Sales Type Financing Receivables With Maturities Ranging From 2044 To 2054    
Loans and direct financing receivables    
Stated Interest Rate (as a percent) 8.82%  
Sales-type financing receivables $ 461,961 $ 131,969
v3.24.3
Investments - Schedule Summarizing Loans and Direct Financing Receivables (Parenthetical) (Details) - Mortgage Loans Receivable With Maturities Ranging From 2042 To 2062
 9 Months Ended
Sep. 30, 2024
Loan
Loans and direct financing receivables  
Number of mortgage loans allowing for prepayment in whole 1
Maximum  
Loans and direct financing receivables  
Prepayment penalties (as a percent) 70.00%
Minimum  
Loans and direct financing receivables  
Prepayment penalties (as a percent) 20.00%
v3.24.3
Investments - Loans Receivable - Additional Information (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Loan
Scheduled Loan Receivable Maturities  
Number of loans receivable 24
Net carrying amount of loans receivable | $ $ 145.8
Number of mortgage loans 9
Number of mortgage loans subject to interest rate increases 5
Minimum  
Scheduled Loan Receivable Maturities  
Amortization period of long-term mortgage loans 20 years
Long-term mortgage loans receivable prepayment penalty rate (as a percent) 1.00%
Maximum  
Scheduled Loan Receivable Maturities  
Amortization period of long-term mortgage loans 40 years
Long-term mortgage loans receivable prepayment penalty rate (as a percent) 15.00%
v3.24.3
Investments - Schedule of Maturities of Loans Receivable (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Scheduled Loan Receivable Maturities  
Remainder of 2024 $ 10,569
2025 1,483
2026 11,540
2027 2,080
2028 3,640
2029 1,663
Thereafter 117,222
Total principal payments 148,197
Scheduled Principal Payments  
Scheduled Loan Receivable Maturities  
Remainder of 2024 394
2025 1,483
2026 1,705
2027 1,685
2028 1,687
2029 1,663
Thereafter 63,184
Total principal payments 71,801
Balloon Payments  
Scheduled Loan Receivable Maturities  
Remainder of 2024 10,175
2025 0
2026 9,835
2027 395
2028 1,953
2029 0
Thereafter 54,038
Total principal payments $ 76,396
v3.24.3
Investments - Sale-Leaseback Transactions Accounted for as Financing Arrangements - Additional Information (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Investments [Abstract]    
Sale-leaseback transactions accounted for as financing arrangements $ 1,100.0 $ 839.9
v3.24.3
Investments - Sales-Type Financing Receivables - Additional Information (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Financing Receivable, Past Due [Line Items]    
Sales-type financing receivables $ 461,961 $ 131,969
Remainder of 2024 9,200  
2025 36,900  
2026 37,600  
2027 38,400  
2028 39,300  
2029 40,300  
Thereafter $ 1,100,000  
v3.24.3
Investments - Sale-Leaseback Transactions Accounted for as Financing Arrangements (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Investments [Abstract]  
Remainder of 2024 $ 21,346
2025 87,638
2026 89,042
2027 90,443
2028 91,886
2029 93,430
Thereafter 2,985,500
Total future scheduled payments $ 3,459,285
v3.24.3
Investments - Schedule of Investments Accounted as Sales-Type Leases (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Investments [Abstract]    
Minimum lease payments receivable $ 1,330,558 $ 365,516
Estimated residual value of leased assets 7,173 1,521
Unearned income (875,770) (235,067)
Net investment $ 461,961 $ 131,969
v3.24.3
Investments - Provision for Credit Losses - Additional Information (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2024
USD ($)
Investment Grade    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Origination for gross loan and financing receivables in 2024 $ 9.1 $ 9.1
Origination for gross loan and financing receivables in 2023 86.6 86.6
Origination for gross loan and financing receivables in 2022 14.8 14.8
Origination for gross loan and financing receivables in 2021 8.2 8.2
Origination for gross loan and financing receivables in 2020 0.0 0.0
Origination for gross loan and financing receivables in prior to 2020 72.7 72.7
Non Investment Grade    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Origination for gross loan and financing receivables in 2024 532.0 532.0
Origination for gross loan and financing receivables in 2023 574.0 574.0
Origination for gross loan and financing receivables in 2022 84.2 84.2
Origination for gross loan and financing receivables in 2021 62.0 62.0
Origination for gross loan and financing receivables in 2020 11.8 11.8
Origination for gross loan and financing receivables in prior to 2020 211.4 211.4
ASU 2016-13    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Provision for credit losses 2.7 6.0
Write-offs charged against allowance   0.0
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 191.4 191.4
ASU 2016-13 | Non Investment Grade    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and financing receivables $ 1,500.0 $ 1,500.0
v3.24.3
Debt - Credit Facility - Additional Information (Details)
$ in Thousands
 1 Months Ended 9 Months Ended
Feb. 03, 2023
Options
Jan. 31, 2024
Agreement
Jun. 30, 2021
Sep. 30, 2024
USD ($)
Sep. 30, 2024
Instrument
Sep. 30, 2024
Sep. 30, 2024
Agreement
Dec. 31, 2023
USD ($)
Agreement
Credit facilities                
Outstanding balance       $ 375,000       $ 375,000
Consolidated Special Purpose Entities                
Credit facilities                
Unamortized financing costs related to all debt       5,093       2,975
Revolving Credit Facility                
Credit facilities                
Unsecured loan facility       753,900        
Number of extension options | Options 2              
Extension option term 6 months              
Extension fee (as a percent) 0.075%              
Adjustment to floating rate 0.10%              
Unamortized financing costs related to all debt       4,500       $ 6,000
Senior Unsecured Notes                
Credit facilities                
Principal amount       375,000        
Unsecured Credit Agreement                
Credit facilities                
Potential maximum amount of the revolving commitments and term loans       3,200,000        
Interest Rate Swaps                
Credit facilities                
Current notional amounts       375,000        
Number of agreements   1     21   3 6
Fixed rate           4.595%    
New Unsecured Credit Facility | Revolving Credit Facility                
Credit facilities                
Eligible unencumbered assets (in dollars)       10,100,000        
Amended Unsecured Revolving Credit Facility | Revolving Credit Facility                
Credit facilities                
Outstanding balance       $ 375,000        
Amended Unsecured Revolving Credit Facility | Revolving Credit Facility | Minimum                
Credit facilities                
Credit spread (as a percent) 1.00%              
Facility fee (as a percent)     0.15%          
Amended Unsecured Revolving Credit Facility | Revolving Credit Facility | Maximum                
Credit facilities                
Credit spread (as a percent) 1.45%              
Facility fee (as a percent)     0.30%          
Amended Unsecured Revolving Credit Facility | Revolving Credit Facility | SOFR                
Credit facilities                
Debt Instrument interest rate description SOFR              
Credit spread (as a percent)       1.10%        
Facility fee (as a percent)       0.20%        
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)     0.45%          
Unsecured Term Loan                
Credit facilities                
Number of extension options | Agreement   2            
Extension option term   12 months            
Adjustment to floating rate 0.10%              
Credit spread (as a percent)       1.25%        
Fixed rate           4.3469%    
Unsecured Term Loan | Interest Rate Swaps                
Credit facilities                
Current notional amounts       $ 921,100        
Number of agreements | Agreement             11  
Unsecured Five Year Term Loan                
Credit facilities                
Adjustment to floating rate       0.10%        
Unsecured Five Year Term Loan | Minimum                
Credit facilities                
Credit spread (as a percent) 1.10%              
Unsecured Five Year Term Loan | Maximum                
Credit facilities                
Credit spread (as a percent) 1.70%              
Unsecured Seven Year Term Loan                
Credit facilities                
Adjustment to floating rate       0.10%        
Credit spread (as a percent)       1.35%        
Number of agreements | Agreement             7  
v3.24.3
Debt - Unsecured Notes and Term Loans Payable, Net - Additional Information (Details)
$ in Thousands
 1 Months Ended 8 Months Ended 9 Months Ended
Feb. 03, 2023
Jan. 31, 2024
USD ($)
Agreement
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2024
Instrument
Sep. 30, 2024
Sep. 30, 2024
Agreement
Sep. 30, 2024
Loan
Dec. 31, 2023
USD ($)
Agreement
Feb. 28, 2023
USD ($)
Nov. 30, 2021
USD ($)
Nov. 30, 2020
USD ($)
Feb. 28, 2019
USD ($)
Mar. 31, 2018
USD ($)
Debt Instrument [Line Items]                            
Loss on extinguishment of debt     $ (42,153)                      
Interest Rate Swaps                            
Debt Instrument [Line Items]                            
Number of agreements   1     21   3   6          
Current notional amounts       $ 375,000                    
Fixed rate           4.595%                
Unsecured Term Loan                            
Debt Instrument [Line Items]                            
Number of extension options | Agreement   2                        
Extension option term   12 months                        
Adjustment to floating rate 0.10%                          
Credit spread (as a percent)       1.25%                    
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] SOFR                          
Fixed rate           4.3469%                
Unsecured Term Loan | Interest Rate Swaps                            
Debt Instrument [Line Items]                            
Number of agreements | Agreement             11              
Current notional amounts       $ 921,100                    
Unsecured Term Loan | Merger Agreement                            
Debt Instrument [Line Items]                            
Amount outstanding       $ 114,400                    
Unsecured Five Year Term Loan                            
Debt Instrument [Line Items]                            
Adjustment to floating rate       0.10%                    
Unsecured Five Year Term Loan | Minimum                            
Debt Instrument [Line Items]                            
Credit spread (as a percent) 1.10%                          
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] SOFR                          
Unsecured Five Year Term Loan | Maximum                            
Debt Instrument [Line Items]                            
Credit spread (as a percent) 1.70%                          
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] SOFR                          
Unsecured Seven Year Term Loan                            
Debt Instrument [Line Items]                            
Adjustment to floating rate       0.10%                    
Credit spread (as a percent)       1.35%                    
Number of agreements | Agreement             7              
February 2023 Unsecured Term Loan                            
Debt Instrument [Line Items]                            
Principal amount       $ 921,100         $ 921,100          
Unsecured loan facility                   $ 600,000        
December 2023 Unsecured Term Loan                            
Debt Instrument [Line Items]                            
Principal amount   $ 727,500                        
Debt instrument, initial maturity date description       The December 2023 Unsecured Term Loan matures in July 2026 and includes two 12-month extensions                    
Debt instrument, initial maturity date   2026-07                        
Unsecured loan facility                 592,500          
Increase in debt   $ 135,000                        
Adjustment to floating rate   0.10%                        
Credit spread (as a percent)       1.35%                    
Current notional amounts   $ 135,000                        
Fixed rate of existing cash flow hedges effectively convert the variable-rate on the loan   5.0095%                        
December 2023 Unsecured Term Loan | Interest Rate Swaps                            
Debt Instrument [Line Items]                            
Current notional amounts                 $ 592,500          
Fixed rate                 5.452%          
December 2023 Unsecured Term Loan | Minimum                            
Debt Instrument [Line Items]                            
Credit spread (as a percent)   1.20%                        
December 2023 Unsecured Term Loan | Maximum                            
Debt Instrument [Line Items]                            
Credit spread (as a percent)   1.80%                        
Public Notes                            
Debt Instrument [Line Items]                            
Number of facilities | Loan               4            
Principal amount                     $ 375,000 $ 350,000 $ 350,000 $ 350,000
Initial term       10 years                    
Senior Unsecured Notes                            
Debt Instrument [Line Items]                            
Principal amount       $ 375,000                    
Number of loans | Loan               3            
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%                    
Senior Unsecured Notes | Minimum                            
Debt Instrument [Line Items]                            
Prepayment threshold (as a percent)       5.00%                    
Senior Unsecured Notes | Notes Issued March 2018 99.515 Percent Of Par                            
Debt Instrument [Line Items]                            
Stated interest rate (as a percent)                           4.50%
Senior Unsecured Notes | Notes Issued February 2019 99.260 Percent Of Par                            
Debt Instrument [Line Items]                            
Stated interest rate (as a percent)                         4.625%  
Senior Unsecured Notes | Notes Issued November 2020 99.558 Percent Of Par                            
Debt Instrument [Line Items]                            
Stated interest rate (as a percent)                       2.75%    
Senior Unsecured Notes | Notes Issued November 2021 99.877 Percent Of Par                            
Debt Instrument [Line Items]                            
Stated interest rate (as a percent)                     2.70%      
v3.24.3
Debt - Schedule of Senior Unsecured Notes and Term Loans Payable (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries    
Long-term Debt $ 6,160,285  
Term Loan issued February 2023    
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries    
Stated interest rate (as a percent) 4.3469%  
Long-term Debt $ 921,100 $ 921,100
Unsecured Term Loan    
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries    
Long-term Debt 1,648,600 1,513,600
Notes Payable and Term Loan    
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries    
Unamortized discount (177,236) (200,875)
Unamortized deferred financing costs (10,364) (12,417)
Total unsecured notes and term loans payable, net $ 3,000,400 2,839,708
Term loan was issued in December 2023    
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries    
Stated interest rate (as a percent) 5.3699%  
Long-term Debt $ 727,500 592,500
Senior Unsecured Notes    
Summary of nonrecourse debt obligations of consolidated special purpose entity subsidiaries    
Long-term Debt $ 1,539,400 1,539,400
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%  
Long-term Debt $ 32,400 32,400
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%  
Long-term Debt $ 82,000 82,000
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%  
Long-term Debt $ 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%  
Long-term Debt $ 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%  
Long-term Debt $ 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%  
Long-term Debt $ 375,000 $ 375,000
v3.24.3
Debt - Schedule of Senior Unsecured Notes and Term Loans Payable (Parenthetical) (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Agreement
Jan. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Term Loan issued December 2023      
Debt Instrument [Line Items]      
Principal amount | $   $ 727.5 $ 592.5
Unsecured Seven Year Term Loan      
Debt Instrument [Line Items]      
Adjustment to floating rate 0.10%    
Credit spread (as a percent) 1.35%    
Number of agreements 7    
Unsecured Eleven Year Term Loan      
Debt Instrument [Line Items]      
Credit spread (as a percent) 1.25%    
Number of agreements 11    
Unsecured Five Year Term Loan      
Debt Instrument [Line Items]      
Adjustment to floating rate 0.10%    
v3.24.3
Debt - Non-recourse Debt Obligations of Consolidated Special Purpose Entities, Net - Additional Information (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Minimum  
Debt  
Maximum number of months 24 months
Maximum  
Debt  
Maximum number of months 36 months
Non-Recourse Net-Lease Mortgage Notes:  
Debt  
Retained non-amortizing notes $ 210.0
Non-Recourse Net-Lease Mortgage Notes: | Consolidated Special Purpose Entities  
Debt  
Aggregate investment amount 4,900.0
Nonrecourse Mortgage Notes Payable: | Consolidated Special Purpose Entities  
Debt  
Aggregate investment amount $ 233.5
v3.24.3
Debt - Schedule of Non-Recourse Debt Obligations of Consolidated Special Purpose Entity Subsidiaries (Details) - USD ($)
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Long-term Debt $ 6,160,285,000  
Consolidated Special Purpose Entities    
Debt Instrument [Line Items]    
Unamortized discount (138,266,000) $ (164,326,000)
Unamortized deferred financing costs (5,093,000) (2,975,000)
Total unsecured notes and term loans payable, net 2,828,926,000 2,568,474,000
Consolidated Special Purpose Entities | Nonrecourse Mortgage Notes Payable:    
Debt Instrument [Line Items]    
Long-term Debt 100,934,000 110,935,000
Consolidated Special Purpose Entities | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Long-term Debt $ 2,871,351,000 2,624,840,000
Consolidated Special Purpose Entities | Series 2018-1 Class A-1 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 3.96%  
Long-term Debt $ 0 139,052,000
Consolidated Special Purpose Entities | Series 2018-1 Class A-3 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 4.40%  
Long-term Debt $ 0 47,917,000
Consolidated Special Purpose Entities | Series 2015-1, Class A-2 Due April 2025 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 4.17%  
Long-term Debt $ 257,287,000 258,300,000
Consolidated Special Purpose Entities | Series 2016-1, Class A-1 (2016) Due Oct 2026 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 3.96%  
Long-term Debt $ 167,856,000 171,355,000
Consolidated Special Purpose Entities | Series 2019-1, Class A-1 Due Nov 2026 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 2.82%  
Long-term Debt $ 77,463,000 77,770,000
Consolidated Special Purpose Entities | Series 2019-1, Class A-3 Due Nov 2026 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 3.32%  
Long-term Debt $ 44,888,000 45,061,000
Consolidated Special Purpose Entities | Series 2016-1, Class A-2 (2017) Due April 2027 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 4.32%  
Long-term Debt $ 114,885,000 117,201,000
Consolidated Special Purpose Entities | Series 2018-1 Class A-2 Due October 2027 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 4.29%  
Long-term Debt $ 209,648,000 211,358,000
Consolidated Special Purpose Entities | Series 2018-1 Class A-4 Due October 2027 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 4.74%  
Long-term Debt $ 155,937,000 157,167,000
Consolidated Special Purpose Entities | Series 2023-1 Class A-1 Due May 2028 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 6.19%  
Long-term Debt $ 343,693,000 344,991,000
Consolidated Special Purpose Entities | Series 2023-1 Class A-2 Due May 2028 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 6.92%  
Long-term Debt $ 180,787,000 181,469,000
Consolidated Special Purpose Entities | Series 2021-1, Class A-1 Notes Due June 2028 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 2.12%  
Long-term Debt $ 165,762,000 166,394,000
Consolidated Special Purpose Entities | Series 2021-1, Class A-3 Notes Due June 2028 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 2.86%  
Long-term Debt $ 87,554,000 87,887,000
Consolidated Special Purpose Entities | Series 2021-1, Class A-2 Notes Due June 2033 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 2.96%  
Long-term Debt $ 165,762,000 166,394,000
Consolidated Special Purpose Entities | Series 2021-1, Class A-4 Notes Due June 2033 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 3.70%  
Long-term Debt $ 87,554,000 87,887,000
Consolidated Special Purpose Entities | Series 2019-1, Class A-2 Due Nov 2034 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 3.65%  
Long-term Debt $ 230,499,000 231,414,000
Consolidated Special Purpose Entities | Series 2019-1, Class A-4 Due Nov 2034 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 4.49%  
Long-term Debt $ 132,713,000 133,223,000
Consolidated Special Purpose Entities | Series 2024-1, Class A-1Notes Due Apr. 2029 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 5.69%  
Long-term Debt $ 74,245 0
Consolidated Special Purpose Entities | Series 2024-1, Class A-3 Notes Due Apr. 2029 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 5.93%  
Long-term Debt $ 25,547 0
Consolidated Special Purpose Entities | Series 2024-1, Class A-2 Notes Due Apr. 2031 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 5.70%  
Long-term Debt $ 260,057  
Consolidated Special Purpose Entities | Series 2024-1, Class A-4 Notes Due Apr. 2031 | Non-Recourse Net-Lease Mortgage Notes:    
Debt Instrument [Line Items]    
Interest Rate 5.94%  
Long-term Debt $ 89,214 0
Consolidated Special Purpose Entities | $10,075 note issued March 2014 | Nonrecourse Mortgage Notes Payable:    
Debt Instrument [Line Items]    
Interest Rate 5.10%  
Long-term Debt $ 0 8,386,000
Consolidated Special Purpose Entities | $65,000 note issued June 2016 | Nonrecourse Mortgage Notes Payable:    
Debt Instrument [Line Items]    
Interest Rate 4.75%  
Long-term Debt $ 55,663,000 56,674,000
Consolidated Special Purpose Entities | $41,690 note issued March 2019 | Nonrecourse Mortgage Notes Payable:    
Debt Instrument [Line Items]    
Interest Rate 4.80%  
Long-term Debt $ 39,490,000 40,001,000
Consolidated Special Purpose Entities | $6,350 notes issued March 2019 (assumed in December 2020) | Nonrecourse Mortgage Notes Payable:    
Debt Instrument [Line Items]    
Interest Rate 4.64%  
Long-term Debt $ 5,781,000 $ 5,874,000
v3.24.3
Debt - Schedule of Non-Recourse Debt Obligations of Consolidated Special Purpose Entity Subsidiaries (Parenthetical) (Details) - USD ($)
$ in Thousands
 1 Months Ended 9 Months Ended 12 Months Ended
Apr. 30, 2024
Sep. 30, 2024
Dec. 31, 2023
Various Debt, Prepayable Twenty-Four Months Prior to Maturity      
Debt Instrument [Line Items]      
Debt prepayment period without penalty   24 months 24 months
Various Debt, Prepayable Thirty-Six Months Prior to Maturity      
Debt Instrument [Line Items]      
Debt prepayment period without penalty   36 months 36 months
Various Debt, Prepayable Three Months Prior to Maturity      
Debt Instrument [Line Items]      
Debt prepayment period without penalty   3 months 3 months
Various Debt, Prepayable Four Months Prior to Maturity      
Debt Instrument [Line Items]      
Debt prepayment period without penalty   4 months 4 months
Consolidated Special Purpose Entities | Series 2018-1 Class A-1 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   $ 150,000  
Consolidated Special Purpose Entities | Series 2018-1 Class A-3 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   50,000  
Consolidated Special Purpose Entities | Series 2015-1, Class A-2 Due April 2025 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   270,000  
Consolidated Special Purpose Entities | Series 2016-1, Class A-1 (2016) Due Oct 2026 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   200,000  
Consolidated Special Purpose Entities | Series 2019-1, Class A-1 Due Nov 2026 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   82,000  
Consolidated Special Purpose Entities | Series 2019-1, Class A-3 Due Nov 2026 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   46,000  
Consolidated Special Purpose Entities | Series 2016-1, Class A-2 (2017) Due April 2027 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   135,000  
Consolidated Special Purpose Entities | Series 2018-1 Class A-2 Due October 2027 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   228,000  
Consolidated Special Purpose Entities | Series 2018-1 Class A-4 Due October 2027 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   164,000  
Consolidated Special Purpose Entities | Series 2023-1 Class A-1 Due May 2028 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   346,000  
Consolidated Special Purpose Entities | Series 2023-1 Class A-2 Due May 2028 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   182,000  
Consolidated Special Purpose Entities | Series 2021-1, Class A-1 Notes Due June 2028 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   168,500  
Consolidated Special Purpose Entities | Series 2021-1, Class A-3 Notes Due June 2028 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   89,000  
Consolidated Special Purpose Entities | Series 2021-1, Class A-2 Notes Due June 2033 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   168,500  
Consolidated Special Purpose Entities | Series 2021-1, Class A-4 Notes Due June 2033 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   89,000  
Consolidated Special Purpose Entities | Series 2019-1, Class A-2 Due Nov 2034 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   244,000  
Consolidated Special Purpose Entities | Series 2019-1, Class A-4 Due Nov 2034 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   136,000  
Consolidated Special Purpose Entities | Series 2024-1, Class A-1Notes Due Apr. 2029 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   74,400  
Consolidated Special Purpose Entities | Series 2024-1, Class A-3 Notes Due Apr. 2029 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   25,600  
Consolidated Special Purpose Entities | Series 2024-1, Class A-2 Notes Due Apr. 2031 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   260,600  
Consolidated Special Purpose Entities | Series 2024-1, Class A-4 Notes Due Apr. 2031 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Principal amount   89,400  
Consolidated Special Purpose Entities | $10,075 note issued March 2014 | Nonrecourse Mortgage Notes Payable:      
Debt Instrument [Line Items]      
Principal amount   10,075  
Consolidated Special Purpose Entities | $65,000 note issued June 2016 | Nonrecourse Mortgage Notes Payable:      
Debt Instrument [Line Items]      
Principal amount   65,000  
Consolidated Special Purpose Entities | $41,690 note issued March 2019 | Nonrecourse Mortgage Notes Payable:      
Debt Instrument [Line Items]      
Principal amount   41,690  
Consolidated Special Purpose Entities | $6,350 notes issued March 2019 (assumed in December 2020) | Non-recourse Debt Obligations      
Debt Instrument [Line Items]      
Principal amount   $ 6,350  
Consolidated Special Purpose Entities | Master Funding Series 2024-1 | Non-Recourse Net-Lease Mortgage Notes:      
Debt Instrument [Line Items]      
Proceeds from issuance mortage notes $ 450,000    
v3.24.3
Debt - Credit Risk Related Contingent Features - Additional Information (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Debt  
Derivative liabilities $ 17.9
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accounts Payable and Accrued Liabilities
v3.24.3
Debt - Schedule of Aggregate of Long-Term Debt Obligations (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
Debt Instrument [Line Items]  
Remainder of 2024 $ 38,755
2025 281,279
2026 1,164,260
2027 1,395,684
2028 1,121,456
2029 488,943
Thereafter 1,669,908
Long-term Debt 6,160,285
Scheduled Principal Payments  
Debt Instrument [Line Items]  
Remainder of 2024 6,355
2025 24,667
2026 22,618
2027 14,112
2028 7,841
2029 5,358
Thereafter 20,801
Long-term Debt 101,752
Balloon Payments  
Debt Instrument [Line Items]  
Remainder of 2024 32,400
2025 256,612
2026 1,141,642
2027 1,381,572
2028 1,113,615
2029 483,585
Thereafter 1,649,107
Long-term Debt $ 6,058,533
v3.24.3
Equity - Additional Information (Details) - USD ($)
 1 Months Ended
Feb. 03, 2023
Feb. 02, 2023
Feb. 02, 2023
Nov. 30, 2020
Common stock        
Common Units, Issued (in shares) 1,000      
Proceeds from issuance of common units $ 8,300,000,000      
Affiliates of GIC and Oak Street Real Estate Capital | STORE Capital        
Common stock        
Common stock, par value per share $ 0.01      
Series A Preferred Units | Series A Preferred Units        
Common stock        
Preferred Units Issued   125    
Issuance of preferred units.   $ 125,000    
2020 ATM Program        
Common stock        
Shares Sold     0  
Maximum value of shares that can be offered and sold       $ 900,000,000
v3.24.3
Commitments and Contingencies - Additional Information (Details) - Commitments to Fund Improvements to Real Estate Properties
$ in Millions
Sep. 30, 2024
USD ($)
Commitments and Contingencies  
Real estate property improvement commitments $ 205.8
Real estate property improvement commitments, in next twelve months $ 180.7
v3.24.3
Fair Value of Financial Instruments - Additional Information (Details) - Level 2 Fair Value - USD ($)
$ in Billions
Sep. 30, 2024
Dec. 31, 2023
Carrying value    
Derivatives [Line items]    
Long-term debt obligations $ 5.8 $ 5.4
Fair value    
Derivatives [Line items]    
Long-term debt obligations $ 6.0 $ 5.3
v3.24.3
Fair Value of Financial Instruments - Summary of Asset and Liability Balances of Derivative Instrument (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Jun. 30, 2024
Dec. 31, 2023
Derivative Liability [Abstract]      
Net derivative liabilities presented in the condensed consolidated balance sheets $ 17,900    
International Swap and Derivatives Association Agreement      
Derivative Asset [Abstract]      
Gross amount of derivative assets   $ 13,817 $ 26,470
Gross amount of eligible offsetting recognized derivative liabilities   6,461 6,262
Net derivative assets presented in the condensed consolidated balance sheets   7,356 20,208
Derivative Liability [Abstract]      
Gross amount of derivative liabilities   (18,872) (11,077)
Gross amount of eligible offsetting recognized derivative assets   (6,461) (6,262)
Net derivative liabilities presented in the condensed consolidated balance sheets   $ (12,411) $ (4,815)