STORE Capital Corporation (STOR) has reported a 26.61 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $31.39 million, or $0.19 a share in the quarter, compared with $24.79 million, or $0.18 a share for the same period last year. Revenue during the quarter grew 26.68 percent to $107.97 million from $85.23 million in the previous year period. Gross margin for the quarter contracted 18 basis points over the previous year period to 99.25 percent. Total expenses were 46.80 percent of quarterly revenues, up from 42.93 percent for the same period last year. That has resulted in a contraction of 387 basis points in operating margin to 53.20 percent.
Operating income for the quarter was $57.44 million, compared with $48.64 million in the previous year period.
“2017 is off to a great start with strong investment activity and AFFO growth,” said Christopher H. Volk, president and chief executive officer of STORE Capital. “Our pace of acquisitions and large pipeline of investment opportunities reflects broad-based demand for our effective and flexible long-term financing solutions on the part of our target market - established middle market and larger companies with sustainable competitive advantages and strong cash flows. First quarter acquisitions represent the overall diversity of our portfolio by tenant and transaction size and include 95 new properties and 9 net new customers. Our portfolio remains highly diversified with nearly 370 customers operating across more than 440 concepts, with about 80% of our customers representing less than 1% of our revenues.”
Debt increases substantially
STORE Capital Corporation has witnessed an increase in total debt over the last one year. It stood at $2,528.36 million as on Mar. 31, 2017, up 25.91 percent or $520.23 million from $2,008.14 million on Mar. 31, 2016. Total debt was 47.06 percent of total assets as on Mar. 31, 2017, compared with 48.56 percent on Mar. 31, 2016. Debt to equity ratio was at 0.92 as on Mar. 31, 2017, down from 0.98 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.94 for the quarter from 2.08 for the same period last year.
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