Berkshire Hathaway invests $377 million in real estate company Store Capital Corp

Posted June 28, 2017

Berkshire Hathaway CEO Warren Buffett visits the BNSF booth before the Berkshire Hathaway annual meeting in OmahaThomson ReutersStore Capital, a real estate investment trust, said Monday that Berkshire Hathaway invested $377 million in the company.

Store Capital said previous year that it plans to invest $900 million in real estate in 2017, but it could spend more than that with Berkshire's investment, said Janney Montgomery Scott LLC in a note. So, most stocks that are involved with brick-and-mortar retail have fallen as well, and REITs that own retail real estate have not been spared. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the company's stock.

Berkshire Hathaway invests $377 million in real estate company Store Capital Corp

Store Capital (STOR) was downgraded to "neutral" from "outperform" with a new price target of $24 from $23 at Mizuho Tuesday.

Christopher Volk, Store's chief executive, in an interview said the Berkshire investment was three years in the making, beginning with his 2014 email to Buffett, when the REIT was still private, to gauge his interest. 2542983 shares were traded on Berkshire Hathaway's last session. Berkshire "saw an opportunity to invest at an attractive price, and they believe in us".

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Mr. Buffett didn't immediately respond to a request for comment.

When Woodruff asked whether the country needed to "think about some sort of single-payer system", Buffett said it would be the more effective way to bring down costs.

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STORE Capital Corp. (NYSE: STOR) is not exactly a household name. The company's Market capitalization reached to $3.76 billion, $418.90 million outstanding shares.

Argus began new coverage on Berkshire Hathaway giving the company a " rating. But he also said that Berkshire's wholly owned furniture businesses have seen little effect from online shopping. The investment makes it Store's third-largest investor, after Vanguard Group and Fidelity.

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