Fri, May 2, 3:51 PM (13 days ago)
**STORE Capital LLC (SCAP) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $303.9 million, up from $275.3 million in Q1 2024, driven by portfolio growth and rent escalations. - **Net Income:** $52.7 million, a significant increase from $20.8 million in Q1 2024, due to portfolio growth, tax benefits, and expense reductions. - **Profit Margins:** Improved margins reflect better cost management and higher revenues. - **Cash Flow:** Operating cash flow was $172.2 million, slightly down from $176.6 million in Q1 2024, due to increased interest payments and decreased tenant deposits. **Earnings Changes & Quarterly Performance:** - **Earnings Growth:** Net income grew by 152.7% year-over-year, indicating strong operational performance. - **Expenses:** Interest expense increased by 3.6% due to higher debt levels, while property costs and general and administrative expenses decreased. **Trends & Uncertainties:** - **Portfolio Growth:** Continued investment in real estate and loans, with a focus on long-term, triple-net leases. - **Debt Management:** Strategic use of debt to finance growth, with a focus on fixed-rate, long-term debt. - **Market Risks:** Exposure to interest rate fluctuations, managed through hedging strategies and debt laddering. **Future Operations & Impact:** - **Growth Strategy:** Plans to continue acquiring real estate and raising equity capital to fund growth. - **Debt Strategy:** Intends to maintain a balanced mix of secured and unsecured debt, with a focus on long-term, fixed-rate instruments. - **Equity:** Issued additional preferred units and expects to raise more equity capital from members. **Key Metrics (as of March 31, 2025):** - **Investment Portfolio:** $15.9 billion, with 3,366 property locations. - **Debt:** $6.5 billion in secured and unsecured term debt, with a weighted average maturity of 3.7 years. - **Liquidity:** $327.3 million in cash and cash equivalents, with $378.9 million of immediate borrowing capacity. **Outlook:** - **Liquidity:** Management believes current cash balance and borrowing capacity are sufficient to fund operations and acquisitions. - **Growth:** Expects to continue growing the real estate portfolio through acquisitions and equity raises. - **Risks:** Market factors could impact access to debt financing, potentially limiting growth.