...August 15, 2023 We expect STORE Capital LLC's business strategies to remain stable, in line with its historical operating performance and metrics. The company's well diversified portfolio across tenants and geography remains highly occupied and grew modestly through acquisitions executed during the first half of the year. We expect its operating performance will remain stable over the next two years despite facing some pressure from a slowing economy and high borrowing costs. This is supported by the company's triple net leases that have built-in annual rent escalators (STORE's are at the higher end of its peer group) and long weighted-average lease terms (approximately 13.6 years). We do expect tenants, particularly service-oriented or retail tenants- -which account for a meaningful portion of STORE's tenant base--to face some refinancing risk or pressure on operating margins, but we believe most tenants have defensive enough balance sheets to support their ability to pay rent despite...
