Store Capital’s Go-Shop Period Expires Without New Offers

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On Monday, Store Capital ($NYSE:STOR) announced that the “go-shop” period set forth in the company’s previously announced definitive merger agreement with GIC and Blue Owl’s Oak Street division has expired. Under the terms of the agreement, Store Capital was allowed to solicit alternative acquisition proposals from third parties during the go-shop period, which expired on October 31st.

However, no new offers were received and Store Capital has confirmed that it intends to proceed with the previously announced deal with GIC and Oak Street. Subject to approval by Store Capital’s stockholders and the satisfaction of certain other customary closing conditions, the transaction is expected to close in the first quarter of 2023. This marks the end of a months-long process that began when Store Capital first announced its intention to explore strategic alternatives in July of this year. At the time, the company said it had received unsolicited interest from multiple parties and had retained J.P. Morgan Securities LLC and Barclays Capital Inc. to act as its financial advisors. Now, with the go-shop period expired and no new offers on the table, it appears that Store Capital is moving ahead with the sale to GIC and Oak Street.

Stock Price

On Monday, STORE CAPITAL stock opened at $31.4 and closed at $31.3. This marks the end of the company’s go-shop period, during which it solicited bids from other firms in an effort to find a better offer than the one it has already agreed to from Kennedy Wilson. No new offers were forthcoming, meaning that the Kennedy Wilson deal is likely to go ahead as planned. This is a disappointment for STORE CAPITAL shareholders, who had hoped that the go-shop period would result in a higher price for their shares. The go-shop period was originally set to expire on February 15, but was extended by two weeks at the request of Kennedy Wilson. This was seen as a positive sign by STORE CAPITAL shareholders, who thought that the extra time would give other firms more time to make a bid.

It is not yet clear what effect the expiration of the go-shop period will have on the Kennedy Wilson deal. It is possible that the deal will be amended to reflect the fact that STORE CAPITAL is no longer actively seeking a better offer. Alternatively, Kennedy Wilson may decide to walk away from the deal altogether. either way, it is clear that the go-shop period has not resulted in a better offer for STORE CAPITAL shareholders. This is sure to be a disappointment for those who were hoping for a higher price for their shares. Live Quote…

About the Company

VI Analysis

Based on its fundamentals, Store Capital appears to be a company with long-term potential. However, according to VI Risk Rating, it is a medium risk investment in terms of financial and business aspects. The VI app has detected 1 risk warning in the balance sheet. To get more information on this, users must become registered. More…

VI Peers

STORE Capital Corp is one of the leading real estate investment trusts (REITs) in the United States. The company focuses on acquiring, financing, and owning net lease properties across the country. STORE Capital has a portfolio of over 2,200 properties across 47 states, with a total value of over $18 billion. The company’s competitors include Urban Edge Properties, AmanahRaya Real Estate Investment Trust, and Japan Prime Realty Investment Corp.

– Urban Edge Properties ($NYSE:UE)

Urban Edge Properties is a publicly traded real estate investment trust that owns, manages, and develops retail properties in the United States. The company’s portfolio includes neighborhood and community shopping centers, as well as mixed-use properties. Urban Edge Properties is headquartered in New York City.

– AmanahRaya Real Estate Investment Trust ($KLSE:5127)

AmanahRaya Real Estate Investment Trust has a market cap of 329.6M as of 2022. The company is a closed-end real estate investment trust focused on the ownership, management and development of a portfolio of office and retail properties in Malaysia.

– Japan Prime Realty Investment Corp ($TSE:8955)

Japan Prime Realty Investment Corp is one of the largest real estate investment companies in Japan with a market capitalization of ¥389.4 billion as of March 2022. The company invests in a wide range of real estate assets including office buildings, retail properties, warehouses, and residential properties. Japan Prime Realty also provides real estate management and development services.

Summary

Investors who are considering STORE CAPITAL as a potential investment may want to consider the company’s go-shop period expiration. While no new offers have been made, the fact that the period has now ended may mean that STORE CAPITAL is a more attractive investment opportunity. STORE CAPITAL is a real estate investment trust that focuses on investing in single-tenant properties. STORE CAPITAL is one of the largest and most diversified REITs in the single-tenant property sector.