Why STORE Capital Gained 16% in September

Shares of STORE Capital (NYSE: STOR) increased 16% in September, according to data provided by S&P Global Market Intelligence. The real estate investment trust (REIT) agreed to be acquired by GIC in partnership with Oak Street, a Division of Blue Owl Capital, for a 20% premium over its price at the time of the announcement, making it a no-brainer buy with an almost guaranteed gain.

STORE Capital owns more than 3,000 properties in various industries with a 99.5% occupancy rate. It runs a singe-tenant net lease operation, and it typically buys properties from companies and then leases them back for long-term leases with the tenant responsible for most of the maintenance.

It has posted impressive performance over the past few years, with a 5.9% compound annual growth rate in adjusted funds from operations (AFFO) since its initial public offering in November 2014. Its stock has gained 60% since that time, although it's trading about 25% below a high of over $40 before the pandemic.

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Source Fool.com