STORE Capital announced the completion of a $567 million long-term fixed-rate securitization through the issuance of STORE Master Funding Net-Lease Mortgage Notes, Series 2026-1. The transaction marks the fifteenth issuance under the company’s proprietary Master Funding debt program, which serves as a structured financing vehicle for the real estate investment trust.
The notes were issued in four classes through a private placement to institutional investors. Of the total issuance, $486 million of notes received AAA ratings from S&P Global Ratings, including $243 million of 5.75-year Class A-1 notes priced at 5.22% and $243 million of 7-year Class A-2 notes priced at 5.31%.
An additional $81 million of notes were rated AA by S&P, consisting of $40.5 million of 5.75-year Class A-3 notes priced at 5.32% and $40.5 million of 7-year Class A-4 notes priced at 5.41%.
The overall weighted average interest rate of the transaction was 5.28%, with a weighted average life of 6.32 years. STORE Capital said the proceeds were used to redeem $520.3 million of previously issued Master Funding notes that carried a 6.44% all-in coupon rate ahead of their May 2028 maturity date, while also supporting future growth initiatives.
STORE Capital said the offering was significantly oversubscribed, enabling the company to increase the size of the transaction by more than 60%. The refinancing is expected to generate meaningful interest savings over the coming years.
The company noted that the notes were issued pursuant to Rule 144A under the Securities Act and were not registered under the Securities Act of 1933.
STORE Capital is an internally managed net-lease REIT focused on Single Tenant Operational Real Estate properties. The company owns investments in more than 3,500 property locations across the United States.
KEY QUOTES:
“I am pleased to announce the closing of our fifteenth Master Funding transaction in STORE history. We are very grateful for the continued overwhelming interest in STORE’s Master Funding bonds. Once again, the offering experienced significant oversubscription, which allowed us to increase the transaction by more than 60%. Among other things, this upsize enabled us to refinance our Master Funding 2023-1 notes creating substantial interest savings over the next few years.
STORE continues to offer best in class diversity and granularity in the NNN space resulting in strong and steady cash flows for our investors. Our Master Funding program is a cornerstone of STORE’s success, supporting sustainable growth and advancing our mission of providing long-term real estate financing solutions to middle market and larger companies. We thank our existing investors for their continued support and extend a special welcome to the new investors in our 2026-1 issuance. We look forward to our continued partnership.”
Mary Fedewa, President and Chief Executive Officer, STORE Capital
