Store Capital's stock price is getting a huge boost from everyone's favorite Nebraskan investor.
STORE Capital Corporation (NYSE: STOR), an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, today announced that Berkshire Hathaway has invested $377 million in the company, representing 9.8% of total shares outstanding. The company issued 18.6 million shares via a private placement at $20.25 per share.
"Berkshire Hathaway's investment solidly positions Store for continued growth", Christopher Volk, the chief executive officer of the REIT, said in the statement. However, after the news of the Berkshire Hathaway investment, shares have risen 10 percent in early Monday trading.
Berkshire Hathaway did not immediately respond to a request for comment. The investment makes it Store's third-largest investor, after Vanguard Group and Fidelity.
The Scottsdale, Ariz., based real estate firm announced Berkshire Hathaway's investment on Monday.
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Its specialties include sale-leaseback transactions, where owners sell properties and lease them back, freeing up sale proceeds to invest elsewhere.
STORE Capital plans to use the funds to repay debt, to fund property acquisitions and for working capital and other general corporate purposes.
Berkshire's other investments tied to real estate include HomeServices of America, the second-largest USA residential real estate brokerage, and Clayton Homes, which makes manufactured housing.
Berkshire Hathaway Inc is a holding company owning subsidiaries engaged in various business activities.
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