Warren Buffett Bets on Net Lease Retail

Net lease REIT Store Capital Corp. (NYSE: STOR) issued and sold 18.6 million shares of its common stock to an affiliate of Warren Buffett’s Berkshire Hathaway.

Buffett’s National Indemnity Co. paid $377 million for the stock representing a rate of $20.25 per share. Shop’s stock closed at $20.77 at the end of trading recently and its premarket opening cost this morning is up 9.2% to about $22.68/ share.

Berkshire Hathaway’s insurance coverage subsidiary now manages 9.8% of Shop’s overall shares exceptional. The REIT stated it intends to utilize the net profits to pay back debt, fund home and for working capital.

“Berkshire Hathaway’s financial investment solidly positions Store for continued growth, while adding measurably to our currently strong financial position,” said Christopher H. Volk, CEO of Scottsdale-based Shop Capital. “An investment in our company from one of history’s most admired investors represents a vote of confidence in our skilled management team and an affirmation of our profit-center real estate financial investment and management technique.”

Shop Capital is one of the largest net-lease REITs and owns a portfolio of more than 1,750 home places.

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