Berkshire Hathaway Buys 9.8% Stake in Store Capital
June 26 2017 - 9:19AM
Dow Jones News
By Imani Moise
Warren Buffett's Berkshire Hathaway Inc. has picked up a 9.8%
stake in real-estate investment trust Store Capital Corp., at a
time when many investors are growing concerned about the health of
the commercial real-estate sector.
Shares of Store Capital, which invests in single-tenant
properties including chain restaurants, supermarkets, drugstores
and other retail locations, shot up 11% to $23 in premarket
trading.
Monday's stock move would help the company's stock regain ground
it lost this past spring after the company reported disappointing
earnings.
As retailers are closing stores at a record pace, Store Capital
said Mr. Buffett's $377 million investment represents a vote of
confidence in its leadership and business model. Store Capital's
real estate portfolio totaled $5.5 billion, representing 1,750
property locations, as of March 31.
Berkshire has long benefited from Mr. Buffett's reputation as a
skilled judge of businesses who is known for closing deals quickly
without teams of bankers or consultants. Berkshire earned more than
$10 billion on deals Mr. Buffett struck during and after the
financial crisis with blue-chip companies including Goldman Sachs
Group Inc., Dow Chemical Co., General Electric Co. and Bank of
America Corp.
Berkshire Hathaway's investment makes it Store Capital's
third-largest shareholder, behind the Vanguard Group and Fidelity
Management & Research Co., according to data from FactSet.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
June 26, 2017 09:04 ET (13:04 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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