Berkshire Hathaway buys 9.8% stake in Store Capital

By Imani MoiseWall StreetDow Jones Newswires

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.

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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.

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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)

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