Store Capital raises $625 million to fund growth

Article originally posted on CoStar on October 3, 2025

Store Capital, an Arizona-based net-lease real estate investment trust that primarily invests in single-tenant, net-leased properties, completed its largest securitized notes offering to date, issuing $625 million in long-term fixed-rate mortgage notes backed by single-tenant net-lease properties.

Strong investor demand pushed the bond offering 39% above its initial $450 million target, according to a Store announcement of the offering.

The notes are secured by 1,323 commercial properties across 48 states, valued at $4.45 billion. According to an analysis of the offering by S&P Global Ratings, the collateral increased in appraised value by $323.3 million over the past year. Total debt outstanding on the collateral is expected to reach about $3.34 billion.

The portfolio includes service, manufacturing and retail properties leased to 245 tenants under primarily triple-net lease agreements, in which the tenant is responsible for all expenses related to their occupancy of the building.

Scottsdale, Arizona-based Store plans to use proceeds to fund future acquisitions. S&P reported in the spring that it expects Store’s $16.2 billion net-lease portfolio to expand by $1 billion to $2 billion per year.

CoStar data shows Store acquired more than 100 properties this year. CoStar has confirmed sales prices on 75 of those properties totaling more than $257 million.

“We expect Store will continue to invest in a mix of property types that mirror the company’s current composition, overweighted to the manufacturing and service industries,” S&P reported.

Store’s portfolio continues to perform in line with expectations. Overall occupancy remains in the high 99% range, according to S&P. The credit quality of its diversified tenant base remains sound as stronger income growth in recent quarters supports consumer spending capacity.

S&P also said Store has a manageable lease expiration schedule over the next couple of years, which will likely support occupancy near current levels. The collateral pool carries a weighted average remaining lease term of 12.4 years.

The company closed the Series 2025-1 notes at a weighted average interest rate of 5.06% with a weighted average life of 7.32 years. The transaction marks Store’s 14th issuance under its master funding debt program.

Store operates as an internally managed net-lease real estate investment trust that invests in single-tenant operational real estate. GIC and funds managed by Blue Owl Capital acquired the company in February 2023.