Store Capital (STOR) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 04, 2017
Document and Entity Information
Entity Registrant Name	STORE CAPITAL Corp
Entity Central Index Key	1,538,990
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		171,374,944
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017		Dec. 31, 2016
Real estate investments:
Land and improvements	$ 1,632,788		$ 1,536,178
Buildings and improvements	3,522,747		3,226,791
Intangible lease assets	92,397		92,337
Total real estate investments	5,247,932		4,855,306
Less accumulated depreciation and amortization	(333,043)		(298,984)
Real estate investments, net	4,914,889		4,556,322
Loans and direct financing receivables	262,584		269,210
Net investments	5,177,473	[1]	4,825,532
Cash and cash equivalents	103,301		54,200
Other assets, net	91,455		61,936
Total assets	5,372,229		4,941,668
Liabilities:
Credit facility			48,000
Unsecured notes and term loan payable, net	569,938		470,190
Non-recourse debt obligations of consolidated special purpose entities, net	1,958,426		1,833,481
Dividends payable	49,700		46,209
Accounts payable, accrued expenses and other liabilities	57,186		60,533
Total liabilities	2,635,250		2,458,413
Stockholders’ equity:
Common stock, $0.01 par value per share, 375,000,000 shares authorized, 171,378,139 and 159,341,955 shares issued and outstanding, respectively	1,714		1,593
Capital in excess of par value	2,903,774		2,631,845
Distributions in excess of retained earnings	(170,314)		(151,592)
Accumulated other comprehensive income	1,805		1,409
Total stockholders’ equity	2,736,979		2,483,255
Total liabilities and stockholders’ equity	$ 5,372,229		$ 4,941,668
[1]	The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets
Common stock, par value per share	$ 0.01	$ 0.01
Common shares, authorized shares	375,000,000	375,000,000
Common shares, issued shares	171,378,139	159,341,955
Common shares, outstanding shares	171,378,139	159,341,955

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Revenues:
Rental revenues		$ 101,905	$ 80,767
Interest income on loans and direct financing receivables		5,780	4,415
Other income		286	52
Total revenues		107,971	85,234
Expenses:
Interest		29,640	23,435
Transaction costs			234
Property costs		806	486
General and administrative		10,243	8,591
Selling stockholder costs			800
Depreciation and amortization		35,215	26,479
Provision for impairment of real estate	[1]	4,270
Total expenses		80,174	60,025
Income from operations before income taxes		27,797	25,209
Income tax expense		106	69
Income before gain (loss) on dispositions of real estate		27,691	25,140
Gain (loss) on dispositions of real estate		3,699	(347)
Net income		$ 31,390	$ 24,793
Net income per share of common stock—basic and diluted:
Net income per share of common stock—basic and diluted		$ 0.19	$ 0.18
Weighted average common shares outstanding:
Weighted average shares outstanding used in basic income per share (in shares)		160,810,455	140,354,143
Weighted average shares outstanding used in diluted income per share (in shares)		160,810,455	140,564,379
Dividends declared per common share
Dividends declared per common share (in dollars per share)		$ 0.29	$ 0.27
[1]	The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 31,390	$ 24,793
Other comprehensive income (loss):
Unrealized gains (losses) on cash flow hedges	205	(253)
Cash flow hedge losses reclassified to interest expense	191	64
Total other comprehensive income (loss)	396	(189)
Total comprehensive income	$ 31,786	$ 24,604

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017		Mar. 31, 2016
Operating activities
Net income		$ 31,390		$ 24,793
Adjustments to net income:
Depreciation and amortization		35,215		26,479
Amortization of deferred financing costs and other noncash interest expense		2,009		1,696
Amortization of equity-based compensation		1,874		1,661
Provision for impairment of real estate	[1]	4,270
Gain (loss) on dispositions of real estate		3,699		(347)
Noncash revenue and other		(711)		166
Changes in operating assets and liabilities:
Other assets		1,859		1,942
Accounts payable, accrued expenses and other liabilities		628		(587)
Net cash provided by operating activities		69,117		52,613
Investing activities
Acquisition of and additions to real estate		(417,165)		(273,393)
Investment in loans and direct financing receivables		(8,098)		(12,550)
Collections of principal on loans and direct financing receivables		14,764	[1]	164
Proceeds from dispositions of real estate		18,256		665
Net cash used in investing activities		(392,243)		(285,114)
Financing activities
Borrowings under credit facility		295,000		242,000
Repayments under credit facility		(343,000)
Borrowings under unsecured notes and term loans payable		100,000
Borrowings under non-recourse debt obligations of consolidated special purpose entities		134,961
Repayments under non-recourse debt obligations of consolidated special purpose entities		(9,315)		(5,309)
Financing costs paid		(2,558)		(12)
Proceeds from the issuance of common stock		281,021		1
Stock issuance costs paid		(9,591)		(434)
Shares repurchased under stock compensation plans		(1,346)		(1,719)
Dividends paid		(46,209)		(38,032)
Net cash provided by financing activities		398,963		196,495
Net (decrease) increase in cash, cash equivalents and restricted cash		75,837		(36,006)
Cash, cash equivalents and restricted cash, beginning of period		73,166		83,438
Cash, cash equivalents and restricted cash, end of period		149,003		47,432
Reconciliation of cash, cash equivalents and restricted cash:
Total cash, cash equivalents and restricted cash		73,166		83,438
Supplemental disclosure of noncash investing and financing activities:
Accrued tenant improvement advances included in real estate investments		9,350		10,726
Accrued financing costs		171
Accrued stock issuance costs		458
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of amounts capitalized		22,472		19,156
Cash paid during the period for income and franchise taxes		$ 749		$ 479
[1]	The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.

Organization

Organization	3 Months Ended
	Mar. 31, 2017
Organization
Organization	1. Organization STORE Capital Corporation (STORE Capital or the Company) was incorporated under the laws of Maryland on May 17, 2011 to acquire single‑tenant operational real estate to be leased on a long‑term, net basis to companies that operate across a wide variety of industries within the service, retail and manufacturing sectors of the United States economy. From time to time, it also provides mortgage financing to its customers. On November 21, 2014, the Company completed the initial public offering (IPO) of its common stock. The shares began trading on the New York Stock Exchange on November 18, 2014 under the ticker symbol “STOR”. The Company was originally formed as a wholly owned subsidiary of STORE Holding Company, LLC (STORE Holding), a Delaware limited liability company; the voting interests of STORE Holding were entirely owned by entities managed by a global investment management firm. Subsequent to the Company’s IPO, STORE Holding sold all of its shares through public offerings and, as of April 1, 2016, no longer owned any shares of the Company’s common stock. STORE Capital has made an election to qualify, and believes it is operating in a manner to continue to qualify, as a real estate investment trust (REIT) for federal income tax purposes beginning with its initial taxable year ended December 31, 2011. As a REIT, it will generally not be subject to federal income taxes to the extent that it distributes all of its taxable income to its stockholders and meets other specific requirements.

Summary of Significant Accounti

Summary of Significant Accounting Principles	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Principles
Summary of Significant Accounting Principles	2. Summary of Significant Accounting Principles Basis of Accounting and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of interim periods are not necessarily indicative of the results for the entire year. Certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted from these statements and, accordingly, these statements should be read in conjunction with the Company’s audited consolidated financial statements as filed with the SEC in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016. These condensed consolidated statements include the accounts of STORE Capital and its subsidiaries, which are wholly owned and controlled by the Company through its voting interest. One of the Company’s wholly owned subsidiaries, STORE Capital Advisors, LLC, provides all of the general and administrative services for the day‑to‑day operations of the consolidated group, including property acquisition and lease origination, real estate portfolio management and marketing, accounting and treasury services. The remaining subsidiaries were formed to acquire and hold real estate investments or to facilitate non‑recourse secured borrowing activities. Generally, the initial operations of the real estate subsidiaries are funded by an interest‑bearing intercompany loan from STORE Capital, and such intercompany loan is repaid when the subsidiary issues long‑term debt secured by its properties. All intercompany account balances and transactions have been eliminated in consolidation. Certain of the Company’s wholly owned consolidated subsidiaries were formed as special purpose entities. Each special purpose entity is a separate legal entity and is the sole owner of its assets and liabilities. The assets of the special purpose entities are not available to pay or otherwise satisfy obligations to the creditors of any owner or affiliate of the special purpose entity. At March 31, 2017 and December 31, 2016, these special purpose entities held assets totaling $4.6 billion and $4.3 billion, respectively, and had third-party liabilities totaling $2.0 billion and $1.9 billion, respectively. These assets and liabilities are included in the accompanying condensed consolidated balance sheets. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Although management believes its estimates are reasonable, actual results could differ from those estimates. Reclassifications Certain reclassifications have been made to prior period balances to conform to the current period presentation. During the quarter ended December 31, 2016, the Company elected to early adopt Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , described below in Recent Accounting Pronouncements . Under this new guidance, transfers to or from restricted cash which have previously been shown in the operating, investing or financing sections of the statement of cash flows are now required to be shown as part of the total change in cash, cash equivalents and restricted cash in the statement of cash flows. As a result of the adoption of ASU 2016-18, amounts previously shown as part of the change in other assets in the operating section and as transfers from or to restricted deposits in the investing section of the statement of cash flows for the three months ended March 31, 2016 have been retrospectively adjusted as follows: As Previously As Adjusted Effect of Reported per ASU 2016-18 Change Three Months Ended March 31, 2016 Operating Activities Change in operating assets: Other assets $ (2,249) $ (1,942) $ 307 Net cash provided by operating activities 52,306 52,613 307 Investing Activities Transfers from restricted deposits 154 — (154) Net cash used in investing activities (284,960) (285,114) (154) Net decrease in cash, cash equivalents and restricted cash (36,159) (36,006) 153 Cash, cash equivalents and restricted cash, beginning of period 67,115 83,438 16,323 Cash, cash equivalents and restricted cash, end of period 30,956 47,432 16,476 Segment Reporting The Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) Topic 280, Segment Reporting , established standards for the manner in which enterprises report information about operating segments. The Company views its operations as one reportable segment. Accounting for Real Estate Investments STORE Capital records the acquisition of real estate properties at cost, including acquisition and closing costs. The Company allocates the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Intangible assets and liabilities acquired may include the value of existing in-place leases, above-market or below-market lease value of in-place leases and ground lease intangibles, as applicable. Management uses multiple sources to estimate fair value, including independent appraisals and information obtained about each property as a result of its pre‑acquisition due diligence and its marketing and leasing activities. Historically, the Company has expensed transaction costs associated with real estate acquisitions accounted for as business combinations in the period incurred. As discussed in Recent Accounting Pronouncements below, the Company adopted ASU 2017-01, Business C ombinations (Topic 805): Clarifying the Definition of a Business, in January 2017 and, as a result, expects that fewer, if any, of its real estate acquisitions will be accounted for as business combinations. In‑place lease intangibles are valued based on management’s estimates of lost rent and carrying costs during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases. In estimating lost rent and carrying costs, management considers market rents, real estate taxes, insurance, costs to execute similar leases including leasing commissions and other related costs. The value assigned to in‑place leases is amortized on a straight‑line basis as a component of depreciation and amortization expense typically over the remaining term of the related leases. The fair value of any above‑market and below‑market leases is estimated based on the present value of the difference between the contractual amounts to be paid pursuant to the in‑place lease and management’s estimate of current market lease rates for the property, measured over a period equal to the remaining term of the lease. Capitalized above‑market lease intangibles are amortized over the remaining term of the respective leases as a decrease to rental revenue. Below‑market lease intangibles are amortized as an increase in rental revenue over the remaining term of the respective leases plus the fixed‑rate renewal periods on those leases, if any. Should a lease terminate early, the unamortized portion of any related lease intangible is immediately recognized in operations. The Company’s real estate portfolio is depreciated using the straight‑line method over the estimated remaining useful life of the properties, which generally ranges from 30 to 40 years for buildings and is generally 15 years for land improvements. Properties classified as held for sale are recorded at the lower of their carrying value or their fair value, less anticipated closing costs. Any properties classified as held for sale are not depreciated. Impairment STORE Capital reviews its real estate investments and related lease intangibles periodically for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations. Management considers factors such as expected future undiscounted cash flows, estimated residual value, market trends (such as the effects of leasing demand and competition) and other factors, including bona fide purchase offers received from third parties, in making this assessment. These factors are classified as Level 3 inputs within the fair value hierarchy, discussed in Fair Value Measurements below. An asset is considered impaired if the carrying value of the asset exceeds its estimated undiscounted cash flows and the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results. Revenue Recognition STORE Capital leases real estate to its tenants under long‑term net leases that are predominantly classified as operating leases. Direct costs associated with lease origination, offset by any lease origination fees received, are deferred and amortized over the related lease term as an adjustment to rental revenue. Substantially all of the leases are triple net, which provide that the lessees are responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance. The Company may collect property taxes from its customers and remit those taxes to governmental authorities; such property taxes are presented on a net basis in the condensed consolidated statements of income. The Company’s leases generally provide for rent escalations throughout the lease terms. For leases that provide for specific contractual escalations, rental revenue is recognized on a straight‑line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, accrued rental revenue, calculated as the aggregate difference between the rental revenue recognized on a straight‑line basis and scheduled rents, represents unbilled rent receivables that the Company will receive only if the tenants make all rent payments required through the expiration of the lease. The Company provides an estimated reserve for uncollectible straight‑line rental revenue based on management’s assessment of the risks inherent in those lease contracts, giving consideration to industry default rates for long‑term receivables. There was $16.8 million and $15.0 million of accrued straight‑line rental revenue, net of allowances of $4.3 million and $4.6 million, at March 31, 2017 and December 31, 2016, respectively, which were included in other assets, net, on the condensed consolidated balance sheets. Leases that have contingent rent escalators indexed to future increases in the Consumer Price Index (CPI) may adjust over a one‑year period or over multiple‑year periods. Generally, these escalators increase rent at the lesser of (a) 1 to 1.25 times the increase in the CPI over a specified period or (b) a fixed percentage. Because of the volatility and uncertainty with respect to future changes in the CPI, the Company’s inability to determine the extent to which any specific future change in the CPI is probable at each rent adjustment date during the entire term of these leases and the Company’s view that the multiplier does not represent a significant leverage factor, increases in rental revenue from leases with this type of escalator are recognized only after the changes in the rental rates have actually occurred. For leases that have contingent rentals that are based on a percentage of the tenant’s gross sales, the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached. Less than 2.0% of the Company’s investment portfolio is subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales. The Company suspends revenue recognition when the collectibility of amounts due pursuant to a lease is no longer reasonably assured or if the tenant’s monthly lease payments become more than 60 days past due, whichever is earlier. The Company reviews its accounts receivable for collectibility on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that the collectibility of a receivable with respect to any tenant is in doubt, a provision for uncollectible amounts will be established or a direct write‑off of the specific receivable will be made. Loans Receivable STORE Capital holds its loans receivable for long‑term investment. Loans receivable are carried at amortized cost, including related unamortized discounts or premiums, if any. Revenue Recognition The Company recognizes interest income on loans receivable using the effective‑interest method applied on a loan‑by‑loan basis. Direct costs associated with originating loans are offset against any related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective-interest method. A loan receivable is placed on nonaccrual status when the loan has become more than 60 days past due, or earlier if management determines that full recovery of the contractually specified payments of principal and interest is doubtful. While on nonaccrual status, interest income is recognized only when received. As of March 31, 2017 and December 31, 2016, there were no loans on nonaccrual status. Impairment and Provision for Loan Losses The Company periodically evaluates the collectibility of its loans receivable, including accrued interest, by analyzing the underlying property‑level economics and trends, collateral value and quality and other relevant factors in determining the adequacy of its allowance for loan losses. A loan is determined to be impaired when, in management’s judgment based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Specific allowances for loan losses are provided for impaired loans on an individual loan basis in the amount by which the carrying value exceeds the estimated fair value of the underlying collateral less disposition costs. There was no allowance for loan losses at March 31, 2017 or December 31, 2016. Direct Financing Receivables Certain of the Company’s real estate investment transactions are accounted for as direct financing leases. The Company records the direct financing receivables at their net investment, determined as the aggregate minimum lease payments and the estimated residual value of the leased property less unearned income. The unearned income is recognized over the life of the related contracts so as to produce a constant rate of return on the net investment in the asset. Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investment securities with maturities at acquisition of three months or less. The Company invests cash primarily in money‑market funds of a major financial institution, consisting predominantly of U.S. Government obligations. Restricted Cash Restricted cash primarily consists of reserve account deposits held by lenders, including deposits required to be used for future investment in real estate assets, and escrow deposits. The Company had $45.7 million and $19.0 million of restricted cash and deposits in escrow at March 31, 2017 and December 31, 2016, respectively, which were included in other assets, net, on the condensed consolidated balance sheets. Deferred Costs Financing costs related to the issuance of the Company’s long-term debt are deferred and amortized as an increase to interest expense over the term of the related debt instrument using the effective-interest method and are reported as a reduction of the related debt balance on the condensed consolidated balance sheets. Deferred financing costs related to the establishment of the Company's credit facility are deferred and amortized to interest expense over the term of the credit facility and are included in other assets, net, on the condensed consolidated balance sheets. Derivative Instruments and Hedging Activities The Company may enter into derivatives contracts as part of its overall financing strategy to manage the Company’s exposure to changes in interest rates associated with current and/or future debt issuances. The Company does not use derivatives for trading or speculative purposes. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company enters into derivative financial instruments only with counterparties with high credit ratings and with major financial institutions with which the Company may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. The Company records its derivatives on the balance sheet at fair value. All derivatives subject to a master netting arrangement in accordance with the associated master International Swap and Derivatives Association agreement have been presented on a net basis by counterparty portfolio for purposes of balance sheet presentation and related disclosures. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss). Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedges are reclassified to operations as an adjustment to interest expense as interest payments are made on the hedged debt transaction. As of March 31, 2017, the Company had one interest rate floor and five interest rate swap agreements in place. Two of the swaps, with current notional amounts of $12.0 million and $6.2 million, were designated as cash flow hedges associated with the Company’s secured, variable‑rate mortgage note payable due in 2019 (Note 4). One of the interest rate swaps has a notional amount of $100 million and was designated as a cash flow hedge of the Company’s $100 million variable-rate bank term loan due in 2019 (Note 4). The remaining two interest rate swaps and related interest rate floor transaction have an aggregate notional amount of $100 million and were designated as a cash flow hedge of the Company’s $100 million variable-rate bank term loan due in 2021 (Note 4). Fair Value Measurement The Company estimates fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: · Level 1—Quoted market prices in active markets for identical assets and liabilities that the Company has the ability to access. · Level 2—Significant inputs that are observable, either directly or indirectly. These types of inputs would include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets in inactive markets and market‑corroborated inputs. · Level 3—Inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. These types of inputs include the Company’s own assumptions. Share‑based Compensation Directors and key employees of the Company have been granted long‑term incentive awards, including restricted stock awards (RSAs) and restricted stock unit awards (RSUs) which provide such directors and employees with equity interests as an incentive to remain in the Company’s service and to align their interests with those of the Company’s stockholders. The Company estimates the fair value of RSAs at the date of grant and recognizes that amount in general and administrative expense on the condensed consolidated statements of income ratably over the vesting period at the greater of the amount amortized on a straight‑line basis or the amount vested. The fair value of the RSAs is based on the per-share price of the common stock on the date of the grant. Prior to the Company’s IPO, the fair value was based on the per‑share price of the common stock issued in the Company’s private equity offerings. During the three months ended March 31, 2017, the Company granted RSAs representing 97,235 shares of restricted common stock to its directors and key employees. During the same period, RSAs representing 198,685 shares of previously issued restricted stock vested. In connection with the vesting of the RSAs, the Company repurchased 56,097 shares as a result of participant elections to surrender common shares to the Company to satisfy statutory minimum tax withholding obligations under the Company’s equity-based compensation plans. As of March 31, 2017, the Company had 358,266 shares of restricted common stock outstanding. The Company values the RSUs (which contain both a market condition and a service condition) using a Monte Carlo simulation model on the date of grant and recognizes that amount in general and administrative expense on the condensed consolidated statements of income on a tranche by tranche basis ratably over the vesting periods. During the three months ended March 31, 2017, the Company awarded 373,719 RSUs to its executive officers. At March 31, 2017, there were 1,093,153 RSUs outstanding. Income Taxes As a REIT, the Company generally will not be subject to federal income tax. It is still subject, however, to state and local income taxes and to federal income and excise tax on its undistributed income. STORE Investment Corporation is the Company’s wholly owned taxable REIT subsidiary (TRS) created to engage in non‑qualifying REIT activities. The TRS is subject to federal, state and local income taxes. Management of the Company determines whether any tax positions taken or expected to be taken meet the “more‑likely‑than‑not” threshold of being sustained by the applicable federal, state or local tax authority. Certain state tax returns filed for 2012 and tax returns filed for 2013 through 2016 are subject to examination by these jurisdictions. As of March 31, 2017 and December 31, 2016, management concluded that there is no tax liability relating to uncertain income tax positions. The Company’s policy is to recognize interest related to any underpayment of income taxes as interest expense and to recognize any penalties as general and administrative expenses. There was no accrual for interest or penalties at March 31, 2017 or December 31, 2016. Net Income Per Common Share Net income per common share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings Per Share . The guidance requires the classification of the Company’s unvested restricted common shares, which contain rights to receive non‑forfeitable dividends, as participating securities requiring the two‑class method of computing net income per common share. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted income per common share (dollars in thousands): Three Months Ended March 31, 2017 2016 Numerator: Net income $ 31,390 $ 24,793 Less: earnings attributable to unvested restricted shares (104) (123) Net income used in basic and diluted income per share $ 31,286 $ 24,670 Denominator: Weighted average common shares outstanding 161,218,781 140,867,222 Less: Weighted average number of shares of unvested restricted stock (408,326) (513,079) Weighted average shares outstanding used in basic income per share 160,810,455 140,354,143 Effects of dilutive securities: Add: Treasury stock method impact of potentially dilutive securities (a) — 210,236 Weighted average shares outstanding used in diluted income per share 160,810,455 140,564,379 (a) For the three months ended March 31, 2017 and 2016, excludes 142,262 shares and 201,561 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or the SEC. The Company adopts the new pronouncements as of the specified effective date. When permitted, the Company may elect to early adopt the new pronouncements. Unless otherwise discussed, these new accounting pronouncements include technical corrections to existing guidance or introduce new guidance related to specialized industries or entities and, therefore, will have minimal, if any, impact on the Company’s financial position, results of operations or cash flows upon adoption. In January 2017, the FASB issued ASU 2017-01, Business C ombinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. This new standard will be effective for the Company on January 1, 2018, with early adoption permitted. The Company early adopted the provisions of ASU 2017-01 beginning with the quarter ended March 31, 2017. As a result, transaction costs associated with the acquisition of real estate subject to an in-place lease will generally be included as part of the cost of the asset or assets acquired rather than expensed as incurred, as fewer, if any, real estate acquisitions will be accounted for as a business combination. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. This guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities no longer present transfers between cash and cash equivalents and restricted cash within the statement of cash flows. This new guidance is effective for the Company on January 1, 2018, with early adoption permitted. Upon adoption, the new guidance is required to be adopted retrospectively. The Company early adopted the provisions of ASU 2016-18 beginning with the quarter ended December 31, 2016 and has applied the provisions retrospectively. The adoption of the new guidance did not have a material impact on the Company’s financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This new standard will be effective for the Company on January 1, 2018, with early adoption permitted. The Company does not anticipate this standard will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which changes how entities measure credit losses for most financial assets. This guidance requires an entity to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. This new standard will be effective for the Company on January 1, 2020, with early adoption permitted beginning on January 1, 2019. The Company continues to evaluate the impact this new standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting which is intended to simplify the accounting for and presentation of certain aspects related to share-based payments to employees. The guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted the provisions of ASU 2016-09 beginning with the quarter ended March 31, 2017. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. This new guidance clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship, provided that all other hedge criteria continue to be met. The Company adopted the provisions of ASU 2016-05 beginning with the quarter ended March 31, 2017. The adoption of the new guidance did not have an impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to amend the accounting for leases . The new standard requires lessees to classify leases as either finance or operating leases based on certain criteria and record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard also eliminates current real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. Both lessees and lessors are permitted to make an election to apply a package of practical expedients available for implementation under the standard. The accounting applied by a lessor is largely unchanged under ASU 2016-02; however, the standard requires that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, certain of these costs are capitalizable and, therefore, this new standard may result in these costs being expensed as incurred after adoption. Additionally, the new leasing and revenue recognition guidance (discussed below) will impact how lessors account for lease executory costs (such as property taxes, common area maintenance and utilities); the Company is currently in the process of evaluating the impact of this change. Although primarily a lessor, the Company is also a lessee under several ground lease arrangements and under its corporate office lease; while

Investments

Investments	3 Months Ended
	Mar. 31, 2017
Investments:
Investments	3. Investments At March 31, 2017, STORE Capital had investments in 1,750 property locations representing 1,703 owned properties (of which 38 are accounted for as direct financing receivables), 18 ground lease interests and 29 properties which secure mortgage loans. The gross investment portfolio totaled $5.51 billion at March 31, 2017 and consisted of the gross acquisition cost of the real estate investments totaling $5.25 billion and loans and direct financing receivables with an aggregate carrying amount of $262.6 million. As of March 31, 2017, more than half of these investments are assets of consolidated special purpose entity subsidiaries and are pledged as collateral under the non‑recourse obligations of these special purpose entities (Note 4). During the three months ended March 31, 2017, the Company had the following gross real estate and loan activity (dollars in thousands): Number of Dollar Investment Amount of Locations Investments (a) Gross investments, December 31, 2016 1,660 $ 5,124,516 Acquisition of and additions to real estate (b)(c) 94 412,635 Investment in loans and direct financing receivables 1 8,098 Sales of real estate (5) (15,482) Principal collections on loans and direct financing receivables — (14,764) Provision for impairment of real estate — (4,270) Other — (217) Gross investments, March 31, 2017 5,510,516 Less accumulated depreciation and amortization (333,043) Net investments, March 31, 2017 1,750 $ 5,177,473 (a) The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables. (b) Includes $0.3 million of interest capitalized to properties under construction. (c) Excludes $13.9 million of tenant improvement advances disbursed in 2017 which were accrued as of December 31, 2016. Significant Credit and Revenue Concentration STORE Capital’s real estate investments are leased or financed to approximately 370 customers geographically dispersed throughout 48 states. Only one state, Texas (12%), accounted for 10% or more of the total dollar amount of STORE Capital’s investment portfolio at March 31, 2017. None of the Company’s customers represented more than 10% of the Company’s real estate investment portfolio at March 31, 2017, with the largest customer representing approximately 3% of the total investment portfolio. On an annualized basis, the largest customer also represented approximately 3% of the Company’s total annualized investment portfolio revenues as of March 31, 2017. The Company’s customers operate their businesses across more than 440 concepts and the largest of these concepts represented approximately 3% of the Company’s total annualized investment portfolio revenues as of March 31, 2017. The following table shows information regarding the diversification of the Company’s total investment portfolio among the different industries in which its tenants and borrowers operate as of March 31, 2017 (dollars in thousands): Percentage of Number of Dollar Total Dollar Investment Amount of Amount of Locations Investments (a) Investments Restaurants 730 $ 1,171,384 21 % Manufacturing 160 804,859 15 Furniture stores 48 384,623 7 Early childhood education centers 169 372,936 7 Movie theaters 38 352,665 6 Health clubs 62 313,674 6 Lawn and garden equipment and supply stores 22 187,690 3 Automotive repair and maintenance 85 156,537 3 All other service industries 344 1,330,040 24 All other retail industries 92 436,108 8 1,750 $ 5,510,516 100 % (a) The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables. Intangible Lease Assets The following details intangible lease assets and related accumulated amortization (in thousands): March 31, December 31, 2017 2016 In-place lease assets $ 60,811 $ 61,634 Ground lease interest assets 21,313 20,430 Above-market lease assets 10,273 10,273 Total intangible lease assets 92,397 92,337 Accumulated amortization (20,972) (19,515) Net intangible lease assets $ 71,425 $ 72,822 Aggregate lease intangible amortization included in expense was $1.6 million during both the three months ended March 31, 2017 and 2016. The amount amortized as a decrease to rental revenue for capitalized above‑market lease intangibles was $0.3 million during both the three months ended March 31, 2017 and 2016 Based on the balance of the intangible assets at March 31, 2017, the aggregate amortization expense is expected to be $4.7 million for the remainder of 2017, $6.1 million in 2018, $5.9 million in 2019, $5.3 million in 2020, $5.0 million in 2021 and $4.7 million in 2022; the amount expected to be amortized as a decrease to rental revenue is expected to be $0.9 million for the remainder of 2017, $1.2 million in each of the years 2018 through 2020, $0.6 million in 2021 and $0.4 million in 2022. The weighted average remaining amortization period is approximately nine years for the in‑place lease intangibles, approximately 46 years for the amortizing ground lease interests and approximately seven years for the above‑market lease intangibles. Real Estate Investments The Company’s investment properties are leased to tenants under long‑term operating leases that typically include one or more renewal options. The weighted average remaining noncancelable lease term at March 31, 2017 was approximately 14 years. Substantially all of the leases are triple net, which provide that the lessees are responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance; therefore, STORE Capital is generally not responsible for repairs or other capital expenditures related to the properties while the triple-net leases are in effect. At March 31, 2017, nine of the Company’s properties were vacant and not subject to a lease. Scheduled future minimum rentals to be received under the remaining noncancelable term of the operating leases in place as of March 31, 2017, are as follows (in thousands): Remainder of 2017 $ 321,750 2018 428,802 2019 428,555 2020 426,965 2021 424,967 2022 424,466 Thereafter 3,782,138 Total future minimum rentals $ 6,237,643 Since lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum lease payments due during the initial lease term only. In addition, the future minimum lease payments do not include any contingent rentals such as lease escalations based on future changes in CPI. Loans and Direct Financing Receivables At March 31, 2017, the Company held 26 loans receivable with an aggregate carrying amount of $138.4 million. Seventeen of the loans are mortgage loans secured by land and/or buildings and improvements on the mortgaged property. Five of the mortgage loans are shorter-term loans (mature within the next four years) that require either monthly interest-only payments with a balloon payment at maturity or monthly interest-only payments for an established period and then monthly principal and interest payments with a balloon payment at maturity. The remaining mortgage loans receivable generally require the borrowers to make monthly principal and interest payments based on a 40-year amortization period with balloon payments, if any, at maturity or earlier upon the occurrence of certain other events. The nine other loans are primarily loans secured by a tenant’s equipment or other assets and generally require the borrower to make monthly interest‑only payments with a balloon payment at maturity. The Company’s loans and direct financing receivables are summarized below (dollars in thousands): Amount Outstanding Interest Maturity March 31, December 31, Type Rate (a) Date 2017 2016 Five mortgage loans receivable 8.87 % 2017 - 2020 $ 22,546 $ 22,599 Five mortgage loans receivable (b) 8.55 % 2032 - 2038 42,954 43,002 Seven mortgage loans receivable (c) 8.58 % 2053 - 2056 60,535 70,173 Total mortgage loans receivable 126,035 135,774 Equipment and other loans receivable 9.13 % 2017 - 2025 11,145 9,233 Total principal amount outstanding—loans receivable 137,180 145,007 Unamortized loan origination costs 1,246 1,205 Direct financing receivables 124,158 122,998 Total loans and direct financing receivables $ 262,584 $ 269,210 (a) Represents the weighted average interest rate as of the balance sheet date. (b) Interest rates on three of these mortgage loans are subject to increases over the term of the loans. (c) Interest rates on four of these mortgage loans are subject to increases over the term of the loans. Three of the loans allow for prepayment in whole, but not in part, with penalties ranging from 20% to 70% depending on the timing of the prepayment. One loan outstanding at December 31, 2016 was repaid in full during the three months ended March 31, 2017. The long‑term mortgage loans receivable generally allow for prepayments in whole, but not in part, without penalty or with penalties ranging from 1% to 20%, depending on the timing of the prepayment, except as noted in the table above. All other loans receivable allow for prepayments in whole or in part without penalty. Absent prepayments, scheduled maturities are expected to be as follows (in thousands): Scheduled Principal Balloon Total Payments Payments Payments Remainder of 2017 $ 408 $ 19,160 $ 19,568 2018 1,392 850 2,242 2019 1,923 4,374 6,297 2020 2,090 1,901 3,991 2021 1,137 1,484 2,621 2022 750 — 750 Thereafter 65,522 36,189 101,711 Total principal payments $ 73,222 $ 63,958 $ 137,180 As of March 31, 2017 and December 31, 2016, the Company had $124.2 million and $123.0 million, respectively, of investments accounted for as direct financing leases; the components of the investments accounted for as direct financing receivables were as follows (in thousands): March 31, December 31, 2017 2016 Minimum lease payments receivable $ 301,127 $ 300,832 Estimated residual value of leased assets 14,815 14,500 Unearned income (191,784) (192,334) Net investment $ 124,158 $ 122,998 As of March 31, 2017, the future minimum lease payments to be received under the direct financing lease receivables are expected to be $8.9 million for the remainder of 2017 and average approximately $12.1 million for each of the next five years.

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt
Debt	4. Debt Credit Facility As of March 31, 2017, the Company had a $500 million unsecured revolving credit facility with a group of lenders. The facility, which was put in place in September 2014 and amended in September 2015, is used to partially fund real estate acquisitions pending the issuance of long-term, fixed-rate debt and includes an accordion feature that allows the size of the facility to be increased up to $800 million. The amended facility matures in September 2019 and includes a one-year extension option subject to certain conditions and the payment of a 0.15% extension fee. The facility is recourse to the Company and includes a guaranty from STORE Capital Acquisitions, LLC (SCA), one of the Company’s direct wholly owned subsidiaries. Borrowings under this facility require monthly payments of interest at a rate selected by the Company of either (1) LIBOR plus a credit spread ranging from 1.35% to 2.15%, or (2) the Base Rate, as defined in the credit agreement, plus a credit spread ranging from 0.35% to 1.15%. The credit spread used is based on the Company’s leverage ratio as defined in the credit agreement; as of March 31, 2017, LIBOR-based borrowings under the facility bear interest at LIBOR plus 1.35%. The Company must also pay a non-use fee of 0.15% or 0.25% on the unused portion of the facility, depending upon the amount of borrowings outstanding. Borrowing availability under the facility is limited to 50% of the value of the Company’s eligible unencumbered assets at any point in time. At March 31, 2017, the Company had no borrowings outstanding and a pool of unencumbered assets aggregating approximately $2.56 billion, substantially all of which are eligible unencumbered assets as defined in the credit agreement. The Company is subject to various financial and nonfinancial covenants under the revolving credit facility including a maximum total leverage ratio of 65%, a minimum EBITDA to fixed charges ratio of 1.5 to 1, minimum consolidated net worth of $1.0 billion plus 75% of any additional equity raised after September 2015, a maximum dividend payout ratio limited to 95% of Funds from Operations and a maximum unsecured debt leverage ratio of 50%, all as defined in the credit agreement. As of March 31, 2017, the Company was in compliance with these covenants. At March 31, 2017 and December 31, 2016, unamortized financing costs related to the Company’s credit facility totaled $2.5 million and $2.7 million, respectively, and are included in other assets, net, on the condensed consolidated balance sheets. Unsecured Notes and Term Loans Payable, net The Company has entered into Note Purchase Agreements (NPAs) with institutional purchasers that provided for the private placement of three series of senior unsecured notes aggregating $375 million (the Notes). Interest on the Notes is payable semi-annually in arrears in May and November of each year. On each interest payment date, the interest rate on each series of Notes may be increased by 1.0% should the Company’s Applicable Credit Rating (as defined in the NPAs) fail to be an investment-grade credit rating; the increased interest rate would remain in effect until the next interest payment date on which the Company obtains an Applicable Credit Rating that is an investment grade credit rating. The Company may prepay at any time all, or any part, of any series of Notes, in an amount not less than 5% of the aggregate principal amount of the series then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a Make-Whole Amount (as defined in the NPA). The Notes are senior unsecured obligations of the Company and are guaranteed by SCA. The NPAs contain a number of financial covenants that are similar to the Company’s unsecured credit facility as summarized above, including the maximum total leverage ratio, the minimum EBITDA to fixed charges ratio and the minimum consolidated net worth amount, as well as a maximum secured debt leverage ratio, a maximum unsecured debt leverage ratio and a minimum interest coverage ratio on unsecured debt. Subject to the terms of the NPAs and the Notes, upon certain events of default, including, but not limited to, (i) a payment default under the Notes, and (ii) a default in the payment of certain other indebtedness by the Company or its subsidiaries, all amounts outstanding under the Notes will become due and payable at the option of the purchasers. As of March 31, 2017, the Company was in compliance with its covenants under the NPAs. In April 2016, the Company entered into a $100 million floating-rate, unsecured five-year term loan; the interest rate on the loan resets monthly at one-month LIBOR plus a credit spread ranging from 1.35% to 2.15%. In March 2017, the Company entered into a second $100 million floating rate, unsecured term note. This second loan is a two-year loan which has three one-year extension options and the interest rate on the loan resets monthly at one-month LIBOR plus a credit spread ranging from 1.30% to 2.15%. The credit spread used is based on the Company’s leverage ratio as defined in the loan agreements. The term loans were arranged with lenders who also participate in the Company’s unsecured revolving credit facility. The financial covenants of the term loans match the covenants of the unsecured credit facility. The term loans are senior unsecured obligations of the Company and are guaranteed by SCA and may be prepaid at any time without penalty. The Company’s senior unsecured notes and term loans payable are summarized below (dollars in thousands): Outstanding Balance Maturity Interest March 31, December 31, Date Rate 2017 2016 Notes Payable: Series A issued November 2015 Nov. 2022 4.95 % $ 75,000 $ 75,000 Series B issued November 2015 Nov. 2024 5.24 % 100,000 100,000 Series C issued April 2016 Apr. 2026 4.73 % 200,000 200,000 Total notes payable 375,000 375,000 Term Loans: Term Loan issued March 2017 Mar. 2019 2.77 % (a) 100,000 — Term Loan issued April 2016 Apr. 2021 2.69 % (b) 100,000 100,000 Total term loans 200,000 100,000 Unamortized deferred financing costs (5,062) (4,810) Total unsecured notes and term loans payable, net $ 569,938 $ 470,190 (a) Loan is a variable-rate loan which resets monthly at one-month LIBOR + the applicable credit spread which was 1.30% at March 31, 2017. The Company has entered into an interest rate swap agreement that effectively converts the floating rate to the fixed rate noted as of March 31, 2017. (b) Loan is a variable‑rate loan which resets monthly at one-month LIBOR + the applicable credit spread which was 1.35% at March 31, 2017. The Company has entered into two interest rate swap agreements that effectively convert the floating rate to the fixed rate noted as of March 31, 2017. Non‑recourse Debt Obligations of Consolidated Special Purpose Entities, net During 2012, the Company implemented the STORE Master Funding debt program pursuant to which certain of its consolidated special purpose entities issue multiple series of non‑recourse net‑lease mortgage notes from time to time that are collateralized by the assets owned by these entities and their related leases (collateral). One of the principal features of the program is that, as additional series of notes are issued, new collateral is contributed to the collateral pool thereby increasing the size and diversity of the collateral pool for the benefit of all noteholders, including those who invested in prior series. Another feature of the program is the ability to substitute collateral from time to time subject to meeting certain prescribed conditions and criteria. The notes are generally segregated into Class A amortizing notes and Class B non‑amortizing notes. The Company has retained each of the Class B notes which aggregate $128.0 million at March 31, 2017. The Class A notes require monthly principal and interest payments with a balloon payment due at maturity and these notes may be prepaid at any time, subject to a yield maintenance prepayment premium. As of March 31, 2017, the aggregate collateral pool securing the net‑lease mortgage notes was comprised primarily of single-tenant commercial real estate properties with an aggregate investment amount of approximately $2.5 billion. A number of additional consolidated special purpose entity subsidiaries of the Company have financed their real estate properties with traditional first mortgage debt. The notes generally require monthly principal and interest payments with balloon payments due at maturity. In general, these mortgage notes payable can be prepaid in whole or in part upon payment of a yield maintenance premium. The mortgage notes payable are collateralized by real estate properties owned by these consolidated special purpose entity subsidiaries with an aggregate investment amount of approximately $421.4 million at March 31, 2017. The mortgage notes payable, which are obligations of the consolidated special purpose entities described in Note 2, contain various covenants customarily found in mortgage notes, including a limitation on the issuing entity’s ability to incur additional indebtedness on the underlying real estate. Although this mortgage debt generally is non‑recourse, there are customary limited exceptions to recourse for matters such as fraud, misrepresentation, gross negligence or willful misconduct, misapplication of payments, bankruptcy and environmental liabilities. Certain of the mortgage notes payable also require the posting of cash reserves with the lender or trustee if specified coverage ratios are not maintained by the Company or one of its tenants. The Company’s non-recourse debt obligations of consolidated special purpose entity subsidiaries are summarized below (dollars in thousands): Outstanding Balance Maturity Interest March 31, December 31, Date Rate 2017 2016 Non-recourse net-lease mortgage notes: $214,500 Series 2012-1, Class A Aug. 2019 5.77 % $ 199,852 $ 200,749 $150,000 Series 2013-1, Class A-1 Mar. 2020 4.16 % 140,045 140,724 $107,000 Series 2013-2, Class A-1 Jul. 2020 4.37 % 100,805 101,265 $77,000 Series 2013-3, Class A-1 Nov. 2020 4.24 % 72,982 73,307 $120,000 Series 2014-1, Class A-1 Apr. 2021 4.21 % 118,300 118,450 $95,000 Series 2015-1, Class A-1 Apr. 2022 3.75 % 94,090 94,208 $102,000 Series 2013-1, Class A-2 Mar. 2023 4.65 % 95,231 95,693 $97,000 Series 2013-2, Class A-2 Jul. 2023 5.33 % 91,384 91,801 $100,000 Series 2013-3, Class A-2 Nov. 2023 5.21 % 94,782 95,204 $140,000 Series 2014-1, Class A-2 Apr. 2024 5.00 % 138,017 138,192 $270,000 Series 2015-1, Class A-2 Apr. 2025 4.17 % 267,412 267,750 $200,000 Series 2016-1, Class A-1 (2016) Oct. 2026 3.96 % 198,550 199,423 $135,000 Series 2016-1, Class A-2 (2017) Apr. 2027 4.32 % 135,000 — Total non-recourse net-lease mortgage notes 1,746,450 1,616,766 Non-recourse mortgage notes payable: $2,956 note issued June 2013 — 2,663 $7,088 note issued April 2007 (a) May 2017 6.00 % (a) 6,426 6,457 $4,400 note issued August 2007 (b) Sept. 2017 6.7665 % (b) 3,555 3,586 $8,000 note issued January 2012; assumed in December 2013 Jan. 2018 4.778 % 6,886 6,960 $20,530 note issued December 2011; amended February 2012 Jan. 2019 5.275 % (c) 18,232 18,359 $6,500 note issued December 2012 Dec. 2019 4.806 % 5,858 5,900 $16,100 note issued February 2014 Mar. 2021 4.83 % 15,065 15,159 $13,000 note issued May 2012 May 2022 5.195 % 11,657 11,737 $14,950 note issued July 2012 Aug. 2022 4.95 % 13,036 13,135 $26,000 note issued August 2012 Sept. 2022 5.05 % 23,465 23,625 $6,400 note issued November 2012 Dec. 2022 4.707 % 5,786 5,827 $11,895 note issued March 2013 Apr. 2023 4.7315 % 10,857 10,931 $17,500 note issued August 2013 Sept. 2023 5.46 % 16,282 16,380 $10,075 note issued March 2014 Apr. 2024 5.10 % 9,650 9,691 $21,125 note issued July 2015 Aug. 2025 4.36 % 21,125 21,125 $65,000 note issued June 2016 Jul. 2026 4.75 % 64,363 64,614 $7,750 note issued February 2013 Mar. 2038 4.81 % (d) 7,066 7,114 $6,944 notes issued March 2013 Apr. 2038 4.50 % (e) 6,285 6,330 Total non-recourse mortgage notes payable 245,594 249,593 Unamortized net (discount) premium (411) (336) Unamortized deferred financing costs (33,207) (32,542) Total non-recourse debt obligations of consolidated special purpose entities, net $ 1,958,426 $ 1,833,481 (a) Note was assumed in December 2013 at a premium; estimated effective yield at assumption of 4.45%. (b) Note was assumed in September 2014 at a premium; estimated effective yield at assumption of 3.40%. (c) Note is a variable‑rate note which resets monthly at one-month LIBOR + 3.50%. The Company has entered into two interest rate swap agreements that effectively convert the floating rate on a $12.0 million portion and a $6.2 million portion of this mortgage note payable to fixed rates of 5.299% and 5.230%, respectively. (d) Interest rate is effective for first 10 years and will reset to greater of (1) initial rate plus 400 basis points or (2) Treasury rate plus 400 basis points. (e) Interest rate is effective for first 10 years and will reset to the lender’s then prevailing interest rate. Credit Risk Related Contingent Features The Company has an agreement with a derivative counterparty which provides that if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company has agreements with other derivative counterparties which provide that the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of March 31, 2017, the termination value of the Company’s interest rate swaps that were in a liability position was approximately $0.1 million, which includes accrued interest but excludes any adjustment for nonperformance risk. Long-term Debt Maturity Schedule As of March 31, 2017, the scheduled maturities, including balloon payments, on the Company’s aggregate long-term debt obligations are expected to be as follows (in thousands): Scheduled Principal Balloon Payments Payments Total Remainder of 2017 $ 21,796 $ 9,921 $ 31,717 2018 30,304 6,664 36,968 2019 29,312 313,539 342,851 2020 23,860 293,632 317,492 2021 21,016 229,366 250,382 2022 20,506 211,493 231,999 Thereafter 56,436 1,299,199 1,355,635 $ 203,230 $ 2,363,814 $ 2,567,044

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Stockholders’ Equity
Stockholders’ Equity	5. Stockholders’ Equity During the first quarter of 2017, the Company completed a follow-on stock offering in which the Company issued and sold 9,947,500 shares of common stock. The Company received $220.8 million in proceeds, net of both underwriters’ discount and offering expenses, in connection with this offering. In September 2016, the Company established an “at the market” equity distribution program, or ATM program, pursuant to which, from time to time, it offers and sells registered shares of common stock up to a maximum amount of $400 million through a group of banks acting as its sales agents. During the first quarter of 2017, the Company issued and sold 2,047,546 shares of common stock under the program at a weighted average share price of $25.02, raising $51.2 million in gross proceeds, or $50.3 million in net proceeds after the payment of sales agents’ commissions of $0.8 million and offering expenses. Since the program began in 2016, the Company has issued and sold an aggregate of 8,132,647 shares of common stock under the program at a weighted average share price of $26.25 and raised approximately $213.5 million in aggregate gross proceeds, or approximately $209.6 million in aggregate net proceeds after the payment of sales agents’ commissions of $3.2 million and offering expenses. The Company declared dividends payable to common stockholders totaling $49.7 million and $38.0 million during the three months ended March 31, 2017 and 2016, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies In the normal course of business, the Company enters into various types of commitments to purchase real estate properties. These commitments are generally subject to the Company’s customary due diligence process and, accordingly, a number of specific conditions must be met before the Company is obligated to purchase the properties. As of March 31, 2017, the Company had commitments to its customers to fund improvements to owned or mortgaged real estate properties totaling approximately $50.7 million which will generally result in increases to the rental revenue or interest income due under the related contracts. The Company has employment agreements with each of its executive officers that provide for minimum annual base salaries, and annual cash and equity incentive compensation based on the satisfactory achievement of reasonable performance criteria and objectives to be adopted by the Company’s Board of Directors each year. In the event an executive officer’s employment terminates under certain circumstances, the Company would be liable for cash severance, continuation of healthcare benefits and, in some instances, accelerated vesting of equity awards that he or she has been awarded as part of the Company’s incentive compensation program.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	7. Fair Value of Financial Instruments The Company’s derivatives are required to be measured at fair value in the Company’s consolidated financial statements on a recurring basis. Derivatives are measured under a market approach, using prices obtained from a nationally recognized pricing service and pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy. At March 31, 2017 and December 31, 2016, the fair value of the Company’s derivative instruments was an asset of $1.9 million and $1.6 million, respectively, included in other assets, net, on the condensed consolidated balance sheets, and a liability of $109,000 and $180,000, respectively, included in accounts payable, accrued expenses and other liabilities on the condensed consolidated balance sheets. In addition to the disclosures for assets and liabilities required to be measured at fair value at the balance sheet date, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair value. The fair values of financial instruments are estimates based upon market conditions and perceived risks at March 31, 2017 and December 31, 2016. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities. Financial assets and liabilities for which the carrying values approximate their fair values include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and tenant deposits. Generally these assets and liabilities are short‑term in duration and are recorded at fair value on the consolidated balance sheets. The Company believes the carrying value of the borrowings on its credit facility approximate fair value based on their nature, terms and variable interest rate. Additionally, the Company believes the carrying values of its fixed‑rate loans receivable approximate fair values based on market quotes for comparable instruments or discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. The estimated fair values of the Company’s aggregate long-term debt obligations have been derived based on market observable inputs such as interest rates and discounted cash flow analyses using estimates of the amount and timing of future cash flows, market rates and credit spreads. These measurements are classified as Level 2 within the fair value hierarchy. At March 31, 2017, these debt obligations had a carrying value of $2,528.4 million and an estimated fair value of $2,622.8 million. At December 31, 2016, these debt obligations had an aggregate carrying value of $2,303.7 million and an estimated fair value of $2,353.6 million.

Summary of Significant Accoun14

Summary of Significant Accounting Principles (Policies)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Principles
Basis of Accounting and Principles of Consolidation	Basis of Accounting and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of interim periods are not necessarily indicative of the results for the entire year. Certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted from these statements and, accordingly, these statements should be read in conjunction with the Company’s audited consolidated financial statements as filed with the SEC in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016. These condensed consolidated statements include the accounts of STORE Capital and its subsidiaries, which are wholly owned and controlled by the Company through its voting interest. One of the Company’s wholly owned subsidiaries, STORE Capital Advisors, LLC, provides all of the general and administrative services for the day‑to‑day operations of the consolidated group, including property acquisition and lease origination, real estate portfolio management and marketing, accounting and treasury services. The remaining subsidiaries were formed to acquire and hold real estate investments or to facilitate non‑recourse secured borrowing activities. Generally, the initial operations of the real estate subsidiaries are funded by an interest‑bearing intercompany loan from STORE Capital, and such intercompany loan is repaid when the subsidiary issues long‑term debt secured by its properties. All intercompany account balances and transactions have been eliminated in consolidation. Certain of the Company’s wholly owned consolidated subsidiaries were formed as special purpose entities. Each special purpose entity is a separate legal entity and is the sole owner of its assets and liabilities. The assets of the special purpose entities are not available to pay or otherwise satisfy obligations to the creditors of any owner or affiliate of the special purpose entity. At March 31, 2017 and December 31, 2016, these special purpose entities held assets totaling $4.6 billion and $4.3 billion, respectively, and had third-party liabilities totaling $2.0 billion and $1.9 billion, respectively. These assets and liabilities are included in the accompanying condensed consolidated balance sheets.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Although management believes its estimates are reasonable, actual results could differ from those estimates.
Reclassifications	Reclassifications Certain reclassifications have been made to prior period balances to conform to the current period presentation. During the quarter ended December 31, 2016, the Company elected to early adopt Accounting Standards Update (ASU) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , described below in Recent Accounting Pronouncements . Under this new guidance, transfers to or from restricted cash which have previously been shown in the operating, investing or financing sections of the statement of cash flows are now required to be shown as part of the total change in cash, cash equivalents and restricted cash in the statement of cash flows. As a result of the adoption of ASU 2016-18, amounts previously shown as part of the change in other assets in the operating section and as transfers from or to restricted deposits in the investing section of the statement of cash flows for the three months ended March 31, 2016 have been retrospectively adjusted as follows: As Previously As Adjusted Effect of Reported per ASU 2016-18 Change Three Months Ended March 31, 2016 Operating Activities Change in operating assets: Other assets $ (2,249) $ (1,942) $ 307 Net cash provided by operating activities 52,306 52,613 307 Investing Activities Transfers from restricted deposits 154 — (154) Net cash used in investing activities (284,960) (285,114) (154) Net decrease in cash, cash equivalents and restricted cash (36,159) (36,006) 153 Cash, cash equivalents and restricted cash, beginning of period 67,115 83,438 16,323 Cash, cash equivalents and restricted cash, end of period 30,956 47,432 16,476
Segment Reporting	Segment Reporting The Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) Topic 280, Segment Reporting , established standards for the manner in which enterprises report information about operating segments. The Company views its operations as one reportable segment.
Accounting for Real Estate Investments	Accounting for Real Estate Investments STORE Capital records the acquisition of real estate properties at cost, including acquisition and closing costs. The Company allocates the cost of real estate properties to the tangible and intangible assets and liabilities acquired based on their estimated relative fair values. Intangible assets and liabilities acquired may include the value of existing in-place leases, above-market or below-market lease value of in-place leases and ground lease intangibles, as applicable. Management uses multiple sources to estimate fair value, including independent appraisals and information obtained about each property as a result of its pre‑acquisition due diligence and its marketing and leasing activities. Historically, the Company has expensed transaction costs associated with real estate acquisitions accounted for as business combinations in the period incurred. As discussed in Recent Accounting Pronouncements below, the Company adopted ASU 2017-01, Business C ombinations (Topic 805): Clarifying the Definition of a Business, in January 2017 and, as a result, expects that fewer, if any, of its real estate acquisitions will be accounted for as business combinations. In‑place lease intangibles are valued based on management’s estimates of lost rent and carrying costs during the time it would take to locate a tenant if the property were vacant, considering current market conditions and costs to execute similar leases. In estimating lost rent and carrying costs, management considers market rents, real estate taxes, insurance, costs to execute similar leases including leasing commissions and other related costs. The value assigned to in‑place leases is amortized on a straight‑line basis as a component of depreciation and amortization expense typically over the remaining term of the related leases. The fair value of any above‑market and below‑market leases is estimated based on the present value of the difference between the contractual amounts to be paid pursuant to the in‑place lease and management’s estimate of current market lease rates for the property, measured over a period equal to the remaining term of the lease. Capitalized above‑market lease intangibles are amortized over the remaining term of the respective leases as a decrease to rental revenue. Below‑market lease intangibles are amortized as an increase in rental revenue over the remaining term of the respective leases plus the fixed‑rate renewal periods on those leases, if any. Should a lease terminate early, the unamortized portion of any related lease intangible is immediately recognized in operations. The Company’s real estate portfolio is depreciated using the straight‑line method over the estimated remaining useful life of the properties, which generally ranges from 30 to 40 years for buildings and is generally 15 years for land improvements. Properties classified as held for sale are recorded at the lower of their carrying value or their fair value, less anticipated closing costs. Any properties classified as held for sale are not depreciated.
Impairment	Impairment STORE Capital reviews its real estate investments and related lease intangibles periodically for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through operations. Management considers factors such as expected future undiscounted cash flows, estimated residual value, market trends (such as the effects of leasing demand and competition) and other factors, including bona fide purchase offers received from third parties, in making this assessment. These factors are classified as Level 3 inputs within the fair value hierarchy, discussed in Fair Value Measurements below. An asset is considered impaired if the carrying value of the asset exceeds its estimated undiscounted cash flows and the impairment is calculated as the amount by which the carrying value of the asset exceeds its estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ materially from actual results.
Revenue Recognition	Revenue Recognition STORE Capital leases real estate to its tenants under long‑term net leases that are predominantly classified as operating leases. Direct costs associated with lease origination, offset by any lease origination fees received, are deferred and amortized over the related lease term as an adjustment to rental revenue. Substantially all of the leases are triple net, which provide that the lessees are responsible for the payment of all property operating expenses, including property taxes, maintenance and insurance. The Company may collect property taxes from its customers and remit those taxes to governmental authorities; such property taxes are presented on a net basis in the condensed consolidated statements of income. The Company’s leases generally provide for rent escalations throughout the lease terms. For leases that provide for specific contractual escalations, rental revenue is recognized on a straight‑line basis so as to produce a constant periodic rent over the term of the lease. Accordingly, accrued rental revenue, calculated as the aggregate difference between the rental revenue recognized on a straight‑line basis and scheduled rents, represents unbilled rent receivables that the Company will receive only if the tenants make all rent payments required through the expiration of the lease. The Company provides an estimated reserve for uncollectible straight‑line rental revenue based on management’s assessment of the risks inherent in those lease contracts, giving consideration to industry default rates for long‑term receivables. There was $16.8 million and $15.0 million of accrued straight‑line rental revenue, net of allowances of $4.3 million and $4.6 million, at March 31, 2017 and December 31, 2016, respectively, which were included in other assets, net, on the condensed consolidated balance sheets. Leases that have contingent rent escalators indexed to future increases in the Consumer Price Index (CPI) may adjust over a one‑year period or over multiple‑year periods. Generally, these escalators increase rent at the lesser of (a) 1 to 1.25 times the increase in the CPI over a specified period or (b) a fixed percentage. Because of the volatility and uncertainty with respect to future changes in the CPI, the Company’s inability to determine the extent to which any specific future change in the CPI is probable at each rent adjustment date during the entire term of these leases and the Company’s view that the multiplier does not represent a significant leverage factor, increases in rental revenue from leases with this type of escalator are recognized only after the changes in the rental rates have actually occurred. For leases that have contingent rentals that are based on a percentage of the tenant’s gross sales, the Company recognizes contingent rental revenue when the threshold upon which the contingent lease payment is based is actually reached. Less than 2.0% of the Company’s investment portfolio is subject to leases that provide for contingent rent based on a percentage of the tenant’s gross sales. The Company suspends revenue recognition when the collectibility of amounts due pursuant to a lease is no longer reasonably assured or if the tenant’s monthly lease payments become more than 60 days past due, whichever is earlier. The Company reviews its accounts receivable for collectibility on a regular basis, taking into consideration changes in factors such as the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. In the event that the collectibility of a receivable with respect to any tenant is in doubt, a provision for uncollectible amounts will be established or a direct write‑off of the specific receivable will be made.
Loans Receivable	Loans Receivable STORE Capital holds its loans receivable for long‑term investment. Loans receivable are carried at amortized cost, including related unamortized discounts or premiums, if any. Revenue Recognition The Company recognizes interest income on loans receivable using the effective‑interest method applied on a loan‑by‑loan basis. Direct costs associated with originating loans are offset against any related fees received and the balance, along with any premium or discount, is deferred and amortized as an adjustment to interest income over the term of the related loan receivable using the effective-interest method. A loan receivable is placed on nonaccrual status when the loan has become more than 60 days past due, or earlier if management determines that full recovery of the contractually specified payments of principal and interest is doubtful. While on nonaccrual status, interest income is recognized only when received. As of March 31, 2017 and December 31, 2016, there were no loans on nonaccrual status. Impairment and Provision for Loan Losses The Company periodically evaluates the collectibility of its loans receivable, including accrued interest, by analyzing the underlying property‑level economics and trends, collateral value and quality and other relevant factors in determining the adequacy of its allowance for loan losses. A loan is determined to be impaired when, in management’s judgment based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Specific allowances for loan losses are provided for impaired loans on an individual loan basis in the amount by which the carrying value exceeds the estimated fair value of the underlying collateral less disposition costs. There was no allowance for loan losses at March 31, 2017 or December 31, 2016.
Direct Financing Receivables	Direct Financing Receivables Certain of the Company’s real estate investment transactions are accounted for as direct financing leases. The Company records the direct financing receivables at their net investment, determined as the aggregate minimum lease payments and the estimated residual value of the leased property less unearned income. The unearned income is recognized over the life of the related contracts so as to produce a constant rate of return on the net investment in the asset.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid investment securities with maturities at acquisition of three months or less. The Company invests cash primarily in money‑market funds of a major financial institution, consisting predominantly of U.S. Government obligations.
Restricted Cash	Restricted Cash Restricted cash primarily consists of reserve account deposits held by lenders, including deposits required to be used for future investment in real estate assets, and escrow deposits. The Company had $45.7 million and $19.0 million of restricted cash and deposits in escrow at March 31, 2017 and December 31, 2016, respectively, which were included in other assets, net, on the condensed consolidated balance sheets.
Deferred Costs	Deferred Costs Financing costs related to the issuance of the Company’s long-term debt are deferred and amortized as an increase to interest expense over the term of the related debt instrument using the effective-interest method and are reported as a reduction of the related debt balance on the condensed consolidated balance sheets. Deferred financing costs related to the establishment of the Company's credit facility are deferred and amortized to interest expense over the term of the credit facility and are included in other assets, net, on the condensed consolidated balance sheets.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities The Company may enter into derivatives contracts as part of its overall financing strategy to manage the Company’s exposure to changes in interest rates associated with current and/or future debt issuances. The Company does not use derivatives for trading or speculative purposes. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company enters into derivative financial instruments only with counterparties with high credit ratings and with major financial institutions with which the Company may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations. The Company records its derivatives on the balance sheet at fair value. All derivatives subject to a master netting arrangement in accordance with the associated master International Swap and Derivatives Association agreement have been presented on a net basis by counterparty portfolio for purposes of balance sheet presentation and related disclosures. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the earnings effect of the hedged forecasted transactions in a cash flow hedge. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss). Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedges are reclassified to operations as an adjustment to interest expense as interest payments are made on the hedged debt transaction. As of March 31, 2017, the Company had one interest rate floor and five interest rate swap agreements in place. Two of the swaps, with current notional amounts of $12.0 million and $6.2 million, were designated as cash flow hedges associated with the Company’s secured, variable‑rate mortgage note payable due in 2019 (Note 4). One of the interest rate swaps has a notional amount of $100 million and was designated as a cash flow hedge of the Company’s $100 million variable-rate bank term loan due in 2019 (Note 4). The remaining two interest rate swaps and related interest rate floor transaction have an aggregate notional amount of $100 million and were designated as a cash flow hedge of the Company’s $100 million variable-rate bank term loan due in 2021 (Note 4).
Fair Value Measurement	Fair Value Measurement The Company estimates fair value of financial and non-financial assets and liabilities based on the framework established in fair value accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The hierarchy described below prioritizes inputs to the valuation techniques used in measuring the fair value of assets and liabilities. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs to be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: · Level 1—Quoted market prices in active markets for identical assets and liabilities that the Company has the ability to access. · Level 2—Significant inputs that are observable, either directly or indirectly. These types of inputs would include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets in inactive markets and market‑corroborated inputs. Level 3—Inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. These types of inputs include the Company’s own assumptions.
Share‑based Compensation	Share‑based Compensation Directors and key employees of the Company have been granted long‑term incentive awards, including restricted stock awards (RSAs) and restricted stock unit awards (RSUs) which provide such directors and employees with equity interests as an incentive to remain in the Company’s service and to align their interests with those of the Company’s stockholders. The Company estimates the fair value of RSAs at the date of grant and recognizes that amount in general and administrative expense on the condensed consolidated statements of income ratably over the vesting period at the greater of the amount amortized on a straight‑line basis or the amount vested. The fair value of the RSAs is based on the per-share price of the common stock on the date of the grant. Prior to the Company’s IPO, the fair value was based on the per‑share price of the common stock issued in the Company’s private equity offerings. During the three months ended March 31, 2017, the Company granted RSAs representing 97,235 shares of restricted common stock to its directors and key employees. During the same period, RSAs representing 198,685 shares of previously issued restricted stock vested. In connection with the vesting of the RSAs, the Company repurchased 56,097 shares as a result of participant elections to surrender common shares to the Company to satisfy statutory minimum tax withholding obligations under the Company’s equity-based compensation plans. As of March 31, 2017, the Company had 358,266 shares of restricted common stock outstanding. The Company values the RSUs (which contain both a market condition and a service condition) using a Monte Carlo simulation model on the date of grant and recognizes that amount in general and administrative expense on the condensed consolidated statements of income on a tranche by tranche basis ratably over the vesting periods. During the three months ended March 31, 2017, the Company awarded 373,719 RSUs to its executive officers. At March 31, 2017, there were 1,093,153 RSUs outstanding.
Income Taxes	Income Taxes As a REIT, the Company generally will not be subject to federal income tax. It is still subject, however, to state and local income taxes and to federal income and excise tax on its undistributed income. STORE Investment Corporation is the Company’s wholly owned taxable REIT subsidiary (TRS) created to engage in non‑qualifying REIT activities. The TRS is subject to federal, state and local income taxes. Management of the Company determines whether any tax positions taken or expected to be taken meet the “more‑likely‑than‑not” threshold of being sustained by the applicable federal, state or local tax authority. Certain state tax returns filed for 2012 and tax returns filed for 2013 through 2016 are subject to examination by these jurisdictions. As of March 31, 2017 and December 31, 2016, management concluded that there is no tax liability relating to uncertain income tax positions. The Company’s policy is to recognize interest related to any underpayment of income taxes as interest expense and to recognize any penalties as general and administrative expenses. There was no accrual for interest or penalties at March 31, 2017 or December 31, 2016.
Net Income Per Common Share	Net Income Per Common Share Net income per common share has been computed pursuant to the guidance in the FASB ASC Topic 260, Earnings Per Share . The guidance requires the classification of the Company’s unvested restricted common shares, which contain rights to receive non‑forfeitable dividends, as participating securities requiring the two‑class method of computing net income per common share. The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted income per common share (dollars in thousands): Three Months Ended March 31, 2017 2016 Numerator: Net income $ 31,390 $ 24,793 Less: earnings attributable to unvested restricted shares (104) (123) Net income used in basic and diluted income per share $ 31,286 $ 24,670 Denominator: Weighted average common shares outstanding 161,218,781 140,867,222 Less: Weighted average number of shares of unvested restricted stock (408,326) (513,079) Weighted average shares outstanding used in basic income per share 160,810,455 140,354,143 Effects of dilutive securities: Add: Treasury stock method impact of potentially dilutive securities (a) — 210,236 Weighted average shares outstanding used in diluted income per share 160,810,455 140,564,379 For the three months ended March 31, 2017 and 2016, excludes 142,262 shares and 201,561 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or the SEC. The Company adopts the new pronouncements as of the specified effective date. When permitted, the Company may elect to early adopt the new pronouncements. Unless otherwise discussed, these new accounting pronouncements include technical corrections to existing guidance or introduce new guidance related to specialized industries or entities and, therefore, will have minimal, if any, impact on the Company’s financial position, results of operations or cash flows upon adoption. In January 2017, the FASB issued ASU 2017-01, Business C ombinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. This new standard will be effective for the Company on January 1, 2018, with early adoption permitted. The Company early adopted the provisions of ASU 2017-01 beginning with the quarter ended March 31, 2017. As a result, transaction costs associated with the acquisition of real estate subject to an in-place lease will generally be included as part of the cost of the asset or assets acquired rather than expensed as incurred, as fewer, if any, real estate acquisitions will be accounted for as a business combination. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. This guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities no longer present transfers between cash and cash equivalents and restricted cash within the statement of cash flows. This new guidance is effective for the Company on January 1, 2018, with early adoption permitted. Upon adoption, the new guidance is required to be adopted retrospectively. The Company early adopted the provisions of ASU 2016-18 beginning with the quarter ended December 31, 2016 and has applied the provisions retrospectively. The adoption of the new guidance did not have a material impact on the Company’s financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This new standard will be effective for the Company on January 1, 2018, with early adoption permitted. The Company does not anticipate this standard will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which changes how entities measure credit losses for most financial assets. This guidance requires an entity to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. This new standard will be effective for the Company on January 1, 2020, with early adoption permitted beginning on January 1, 2019. The Company continues to evaluate the impact this new standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting which is intended to simplify the accounting for and presentation of certain aspects related to share-based payments to employees. The guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted the provisions of ASU 2016-09 beginning with the quarter ended March 31, 2017. The adoption of the new guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. This new guidance clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship, provided that all other hedge criteria continue to be met. The Company adopted the provisions of ASU 2016-05 beginning with the quarter ended March 31, 2017. The adoption of the new guidance did not have an impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to amend the accounting for leases . The new standard requires lessees to classify leases as either finance or operating leases based on certain criteria and record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard also eliminates current real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. Both lessees and lessors are permitted to make an election to apply a package of practical expedients available for implementation under the standard. The accounting applied by a lessor is largely unchanged under ASU 2016-02; however, the standard requires that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, certain of these costs are capitalizable and, therefore, this new standard may result in these costs being expensed as incurred after adoption. Additionally, the new leasing and revenue recognition guidance (discussed below) will impact how lessors account for lease executory costs (such as property taxes, common area maintenance and utilities); the Company is currently in the process of evaluating the impact of this change. Although primarily a lessor, the Company is also a lessee under several ground lease arrangements and under its corporate office lease; while the Company is still in the process of evaluating these leases under the new guidance, it is likely that the Company will be required to recognize a right-of-use asset and a lease liability for the present value of the minimum lease payments. The standard will also require new disclosures within the notes accompanying the consolidated financial statements. This standard will be effective for the Company on January 1, 2019. The Company has developed a four phase approach to the implementation of the new leasing standard and expects to complete the first two phases in 2017. The Company will continue to assess the method of adoption and the overall impact the adoption will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . Subsequent updates were issued in 2015 and 2016 to clarify the new guidance and to provide for a one-year deferral of the effective date for the standard, which is January 1, 2018 for the Company. ASU 2014-09 allows for full retrospective or modified retrospective methods of adoption. The Company continues to evaluate the available adoption methods and it has not yet selected which transition method it will apply. The new guidance establishes a principles-based approach for accounting for revenue from contracts with customers, with leases generally excluded from the scope of this standard. This new guidance includes changes to the accounting for sales of real estate properties; however, based on the Company’s preliminary analysis, the new standard is not expected to have a material impact on the Company’s recognition of real estate sales and resulting recognition of a gain or loss. In addition, this new standard may impact how the Company accounts for lease executory costs (such as property taxes, common area maintenance and utilities); the Company is currently in the process of evaluating the significance of this change. The Company expects to make additional disclosures that are required upon the adoption of this standard.

Summary of Significant Accoun15

Summary of Significant Accounting Principles (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Principles
Schedule of Adoption of ASU 2016-18	As Previously As Adjusted Effect of Reported per ASU 2016-18 Change Three Months Ended March 31, 2016 Operating Activities Change in operating assets: Other assets $ (2,249) $ (1,942) $ 307 Net cash provided by operating activities 52,306 52,613 307 Investing Activities Transfers from restricted deposits 154 — (154) Net cash used in investing activities (284,960) (285,114) (154) Net decrease in cash, cash equivalents and restricted cash (36,159) (36,006) 153 Cash, cash equivalents and restricted cash, beginning of period 67,115 83,438 16,323 Cash, cash equivalents and restricted cash, end of period 30,956 47,432 16,476
Reconciliation of the numerator and denominator used in the computation of basic and diluted income per common share	The following table is a reconciliation of the numerator and denominator used in the computation of basic and diluted income per common share (dollars in thousands): Three Months Ended March 31, 2017 2016 Numerator: Net income $ 31,390 $ 24,793 Less: earnings attributable to unvested restricted shares (104) (123) Net income used in basic and diluted income per share $ 31,286 $ 24,670 Denominator: Weighted average common shares outstanding 161,218,781 140,867,222 Less: Weighted average number of shares of unvested restricted stock (408,326) (513,079) Weighted average shares outstanding used in basic income per share 160,810,455 140,354,143 Effects of dilutive securities: Add: Treasury stock method impact of potentially dilutive securities (a) — 210,236 Weighted average shares outstanding used in diluted income per share 160,810,455 140,564,379 For the three months ended March 31, 2017 and 2016, excludes 142,262 shares and 201,561 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Investments:
Schedule of gross real estate and loan activity	During the three months ended March 31, 2017, the Company had the following gross real estate and loan activity (dollars in thousands): Number of Dollar Investment Amount of Locations Investments (a) Gross investments, December 31, 2016 1,660 $ 5,124,516 Acquisition of and additions to real estate (b)(c) 94 412,635 Investment in loans and direct financing receivables 1 8,098 Sales of real estate (5) (15,482) Principal collections on loans and direct financing receivables — (14,764) Provision for impairment of real estate — (4,270) Other — (217) Gross investments, March 31, 2017 5,510,516 Less accumulated depreciation and amortization (333,043) Net investments, March 31, 2017 1,750 $ 5,177,473 (a) The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables. (b) Includes $0.3 million of interest capitalized to properties under construction. (c) Excludes $13.9 million of tenant improvement advances disbursed in 2017 which were accrued as of December 31, 2016.
Schedule of investment portfolio diversification by industry	The following table shows information regarding the diversification of the Company’s total investment portfolio among the different industries in which its tenants and borrowers operate as of March 31, 2017 (dollars in thousands): Percentage of Number of Dollar Total Dollar Investment Amount of Amount of Locations Investments (a) Investments Restaurants 730 $ 1,171,384 21 % Manufacturing 160 804,859 15 Furniture stores 48 384,623 7 Early childhood education centers 169 372,936 7 Movie theaters 38 352,665 6 Health clubs 62 313,674 6 Lawn and garden equipment and supply stores 22 187,690 3 Automotive repair and maintenance 85 156,537 3 All other service industries 344 1,330,040 24 All other retail industries 92 436,108 8 1,750 $ 5,510,516 100 % (a) The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.
Schedule detailing intangible lease assets and related accumulated amortization	The following details intangible lease assets and related accumulated amortization (in thousands): March 31, December 31, 2017 2016 In-place lease assets $ 60,811 $ 61,634 Ground lease interest assets 21,313 20,430 Above-market lease assets 10,273 10,273 Total intangible lease assets 92,397 92,337 Accumulated amortization (20,972) (19,515) Net intangible lease assets $ 71,425 $ 72,822
Schedule of future minimum rentals to be received under operating leases	Scheduled future minimum rentals to be received under the remaining noncancelable term of the operating leases in place as of March 31, 2017, are as follows (in thousands): Remainder of 2017 $ 321,750 2018 428,802 2019 428,555 2020 426,965 2021 424,967 2022 424,466 Thereafter 3,782,138 Total future minimum rentals $ 6,237,643
Schedule summarizing loans and direct financing receivables	The Company’s loans and direct financing receivables are summarized below (dollars in thousands): Amount Outstanding Interest Maturity March 31, December 31, Type Rate (a) Date 2017 2016 Five mortgage loans receivable 8.87 % 2017 - 2020 $ 22,546 $ 22,599 Five mortgage loans receivable (b) 8.55 % 2032 - 2038 42,954 43,002 Seven mortgage loans receivable (c) 8.58 % 2053 - 2056 60,535 70,173 Total mortgage loans receivable 126,035 135,774 Equipment and other loans receivable 9.13 % 2017 - 2025 11,145 9,233 Total principal amount outstanding—loans receivable 137,180 145,007 Unamortized loan origination costs 1,246 1,205 Direct financing receivables 124,158 122,998 Total loans and direct financing receivables $ 262,584 $ 269,210 (a) Represents the weighted average interest rate as of the balance sheet date. (b) Interest rates on three of these mortgage loans are subject to increases over the term of the loans. (c) Interest rates on four of these mortgage loans are subject to increases over the term of the loans. Three of the loans allow for prepayment in whole, but not in part, with penalties ranging from 20% to 70% depending on the timing of the prepayment. One loan outstanding at December 31, 2016 was repaid in full during the three months ended March 31, 2017.
Schedule of maturities of loans receivable	Absent prepayments, scheduled maturities are expected to be as follows (in thousands): Scheduled Principal Balloon Total Payments Payments Payments Remainder of 2017 $ 408 $ 19,160 $ 19,568 2018 1,392 850 2,242 2019 1,923 4,374 6,297 2020 2,090 1,901 3,991 2021 1,137 1,484 2,621 2022 750 — 750 Thereafter 65,522 36,189 101,711 Total principal payments $ 73,222 $ 63,958 $ 137,180
Schedule of the components of the investments accounted for as direct financing receivables	As of March 31, 2017 and December 31, 2016, the Company had $124.2 million and $123.0 million, respectively, of investments accounted for as direct financing leases; the components of the investments accounted for as direct financing receivables were as follows (in thousands): March 31, December 31, 2017 2016 Minimum lease payments receivable $ 301,127 $ 300,832 Estimated residual value of leased assets 14,815 14,500 Unearned income (191,784) (192,334) Net investment $ 124,158 $ 122,998

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of maturities of long-term debt	As of March 31, 2017, the scheduled maturities, including balloon payments, on the Company’s aggregate long-term debt obligations are expected to be as follows (in thousands): Scheduled Principal Balloon Payments Payments Total Remainder of 2017 $ 21,796 $ 9,921 $ 31,717 2018 30,304 6,664 36,968 2019 29,312 313,539 342,851 2020 23,860 293,632 317,492 2021 21,016 229,366 250,382 2022 20,506 211,493 231,999 Thereafter 56,436 1,299,199 1,355,635 $ 203,230 $ 2,363,814 $ 2,567,044
senior unsecured notes and term loans payable
Schedule of debt	The Company’s senior unsecured notes and term loans payable are summarized below (dollars in thousands): Outstanding Balance Maturity Interest March 31, December 31, Date Rate 2017 2016 Notes Payable: Series A issued November 2015 Nov. 2022 4.95 % $ 75,000 $ 75,000 Series B issued November 2015 Nov. 2024 5.24 % 100,000 100,000 Series C issued April 2016 Apr. 2026 4.73 % 200,000 200,000 Total notes payable 375,000 375,000 Term Loans: Term Loan issued March 2017 Mar. 2019 2.77 % (a) 100,000 — Term Loan issued April 2016 Apr. 2021 2.69 % (b) 100,000 100,000 Total term loans 200,000 100,000 Unamortized deferred financing costs (5,062) (4,810) Total unsecured notes and term loans payable, net $ 569,938 $ 470,190 (a) Loan is a variable-rate loan which resets monthly at one-month LIBOR + the applicable credit spread which was 1.30% at March 31, 2017. The Company has entered into an interest rate swap agreement that effectively converts the floating rate to the fixed rate noted as of March 31, 2017. Loan is a variable‑rate loan which resets monthly at one-month LIBOR + the applicable credit spread which was 1.35% at March 31, 2017. The Company has entered into two interest rate swap agreements that effectively convert the floating rate to the fixed rate noted as of March 31, 2017.
Non-recourse debt obligations
Schedule of debt	The Company’s non-recourse debt obligations of consolidated special purpose entity subsidiaries are summarized below (dollars in thousands): Outstanding Balance Maturity Interest March 31, December 31, Date Rate 2017 2016 Non-recourse net-lease mortgage notes: $214,500 Series 2012-1, Class A Aug. 2019 5.77 % $ 199,852 $ 200,749 $150,000 Series 2013-1, Class A-1 Mar. 2020 4.16 % 140,045 140,724 $107,000 Series 2013-2, Class A-1 Jul. 2020 4.37 % 100,805 101,265 $77,000 Series 2013-3, Class A-1 Nov. 2020 4.24 % 72,982 73,307 $120,000 Series 2014-1, Class A-1 Apr. 2021 4.21 % 118,300 118,450 $95,000 Series 2015-1, Class A-1 Apr. 2022 3.75 % 94,090 94,208 $102,000 Series 2013-1, Class A-2 Mar. 2023 4.65 % 95,231 95,693 $97,000 Series 2013-2, Class A-2 Jul. 2023 5.33 % 91,384 91,801 $100,000 Series 2013-3, Class A-2 Nov. 2023 5.21 % 94,782 95,204 $140,000 Series 2014-1, Class A-2 Apr. 2024 5.00 % 138,017 138,192 $270,000 Series 2015-1, Class A-2 Apr. 2025 4.17 % 267,412 267,750 $200,000 Series 2016-1, Class A-1 (2016) Oct. 2026 3.96 % 198,550 199,423 $135,000 Series 2016-1, Class A-2 (2017) Apr. 2027 4.32 % 135,000 — Total non-recourse net-lease mortgage notes 1,746,450 1,616,766 Non-recourse mortgage notes payable: $2,956 note issued June 2013 — 2,663 $7,088 note issued April 2007 (a) May 2017 6.00 % (a) 6,426 6,457 $4,400 note issued August 2007 (b) Sept. 2017 6.7665 % (b) 3,555 3,586 $8,000 note issued January 2012; assumed in December 2013 Jan. 2018 4.778 % 6,886 6,960 $20,530 note issued December 2011; amended February 2012 Jan. 2019 5.275 % (c) 18,232 18,359 $6,500 note issued December 2012 Dec. 2019 4.806 % 5,858 5,900 $16,100 note issued February 2014 Mar. 2021 4.83 % 15,065 15,159 $13,000 note issued May 2012 May 2022 5.195 % 11,657 11,737 $14,950 note issued July 2012 Aug. 2022 4.95 % 13,036 13,135 $26,000 note issued August 2012 Sept. 2022 5.05 % 23,465 23,625 $6,400 note issued November 2012 Dec. 2022 4.707 % 5,786 5,827 $11,895 note issued March 2013 Apr. 2023 4.7315 % 10,857 10,931 $17,500 note issued August 2013 Sept. 2023 5.46 % 16,282 16,380 $10,075 note issued March 2014 Apr. 2024 5.10 % 9,650 9,691 $21,125 note issued July 2015 Aug. 2025 4.36 % 21,125 21,125 $65,000 note issued June 2016 Jul. 2026 4.75 % 64,363 64,614 $7,750 note issued February 2013 Mar. 2038 4.81 % (d) 7,066 7,114 $6,944 notes issued March 2013 Apr. 2038 4.50 % (e) 6,285 6,330 Total non-recourse mortgage notes payable 245,594 249,593 Unamortized net (discount) premium (411) (336) Unamortized deferred financing costs (33,207) (32,542) Total non-recourse debt obligations of consolidated special purpose entities, net $ 1,958,426 $ 1,833,481 (a) Note was assumed in December 2013 at a premium; estimated effective yield at assumption of 4.45%. (b) Note was assumed in September 2014 at a premium; estimated effective yield at assumption of 3.40%. (c) Note is a variable‑rate note which resets monthly at one-month LIBOR + 3.50%. The Company has entered into two interest rate swap agreements that effectively convert the floating rate on a $12.0 million portion and a $6.2 million portion of this mortgage note payable to fixed rates of 5.299% and 5.230%, respectively. (d) Interest rate is effective for first 10 years and will reset to greater of (1) initial rate plus 400 basis points or (2) Treasury rate plus 400 basis points. (e) Interest rate is effective for first 10 years and will reset to the lender’s then prevailing interest rate.

Organization (Details)

Organization (Details) - shares	Mar. 31, 2017	Dec. 31, 2016
Organization
Common stock outstanding	171,378,139	159,341,955

Summary of Significant Accoun19

Summary of Significant Accounting Principles (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segment	Dec. 31, 2016USD ($)
Basis of Accounting and Principles of Consolidation
Assets owned	$ 5,372,229	$ 4,941,668
Liabilities owed	2,635,250	2,458,413
Reclassifications
Other assets, net	$ 91,455	61,936
Segment Reporting
Number of Reportable Segments | segment	1
Revenue recognition
Accrued straight‑line rental revenue, net of allowance	$ 16,800	15,000
Accrued straight‑line rental revenue, allowance	$ 4,300	4,600
Leases indexed to increases in the CPI, minimum adjustment period	1 year
Leases indexed to increases in the CPI, minimum multiplier increasing rent (in multipliers)	1
Leases indexed to increases in the CPI, maximum multiplier increasing rent (in multipliers)	1.25
Restricted Cash and Escrow Deposits
Restricted Cash and Deposits	$ 45,700	19,000
Derivative Instruments and Hedging Activities
Outstanding balance	$ 2,567,044
Maximum
Revenue recognition
Portion of investment portfolio subject to contingent rent based upon tenant sales (as a percent)	2.00%
Rent receivables
Loans receivable
Maximum past due period for tenant lease payments causing suspension of revenue recognition.	60 days
Loans receivable
Loans receivable
Maximum past due period for loans payments causing nonaccrual status.	60 days
Buildings | Maximum
Accounting for Real Estate Investments
Property, Plant and Equipment, Useful Life	40 years
Buildings | Minimum
Accounting for Real Estate Investments
Property, Plant and Equipment, Useful Life	30 years
Land improvements
Accounting for Real Estate Investments
Property, Plant and Equipment, Useful Life	15 years
Consolidated special purpose entities
Basis of Accounting and Principles of Consolidation
Assets owned	$ 4,600,000	4,300,000
Liabilities owed	$ 2,000,000	1,900,000
Interest rate swaps
Derivative Instruments and Hedging Activities
Number of agreements | segment	5
Interest rate swap contract two
Derivative Instruments and Hedging Activities
Number of agreements | segment	2
Interest rate floor
Derivative Instruments and Hedging Activities
Number of agreements | segment	1
Senior Unsecured Notes
Derivative Instruments and Hedging Activities
Outstanding balance	$ 200,000	100,000
Senior Unsecured Notes | Term Loan issued April 2016
Derivative Instruments and Hedging Activities
Outstanding balance	100,000	$ 100,000
Designated as hedging instrument | Interest rate swap contract one
Derivative Instruments and Hedging Activities
Current notional amounts	12,000
Designated as hedging instrument | Interest rate swap contract two
Derivative Instruments and Hedging Activities
Current notional amounts	6,200
Designated as hedging instrument | Interest rate swap contract three
Derivative Instruments and Hedging Activities
Current notional amounts	100,000
Outstanding balance	100,000
Designated as hedging instrument | Interest rate swap contract four
Derivative Instruments and Hedging Activities
Current notional amounts	100,000
Outstanding balance	$ 100,000

Summary of Significant Accoun20

Summary of Significant Accounting Principles - Share Based Compensation and Other (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Examination, Penalties and Interest Accrued
Uncertain income tax positions	$ 0
Accrual for interest or penalties	0
Numerator:
Net income	31,390,000	$ 24,793,000
Less: earnings attributable to unvested restricted shares	(104,000)	(123,000)
Net income used in basic and diluted income per share	$ 31,286,000	$ 24,670,000
Denominator:
Weighted average common shares outstanding	161,218,781	140,867,222
Less: Weighted average number of shares of unvested restricted stock (in shares)	(408,326)	(513,079)
Weighted average shares outstanding used in basic income per share (in shares)	160,810,455	140,354,143
Effects of dilutive securities:
Add: Treasury stock method impact of potentially dilutive securities (in shares)		210,236
Weighted average shares outstanding used in diluted income per share (in shares)	160,810,455	140,564,379
Antidilutive unvested restricted shares (in shares)	142,262	201,561
Restricted Stock
Share‑based Compensation
Granted in period (in shares)	97,235
Vested in period (in shares)	198,685
Shares repurchased in connection with tax withholding obligations (in shares)	56,097
Outstanding (in shares)	358,266
Restricted Stock Units | Executive Officer | Vesting Based On Service And Market Conditions
Share‑based Compensation
Granted in period (in shares)	373,719
Outstanding (in shares)	1,093,153

Summary of Significant Accoun21

Summary of Significant Accounting Principles - Cash (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Other assets	$ (1,859)	$ (1,942)
Net cash provided by operating activities	69,117	52,613
Investing activities
Net cash used in investing activities	(392,243)	(285,114)
Net decrease in cash, cash equivalents and restricted cash	75,837	(36,006)
Cash, cash equivalents and restricted cash, beginning of period	73,166	83,438
Cash, cash equivalents and restricted cash, end of period	$ 149,003	47,432
As previously reported
Operating activities
Other assets		(2,249)
Net cash provided by operating activities		52,306
Investing activities
Transfers from restricted deposits		154
Net cash used in investing activities		(284,960)
Net decrease in cash, cash equivalents and restricted cash		(36,159)
Cash, cash equivalents and restricted cash, beginning of period		67,115
Cash, cash equivalents and restricted cash, end of period		30,956
As Adjusted per ASU 2016-18 | Accounting Standards Update 2016-18 [Member]
Operating activities
Other assets		(1,942)
Net cash provided by operating activities		52,613
Investing activities
Net cash used in investing activities		(285,114)
Net decrease in cash, cash equivalents and restricted cash		(36,006)
Cash, cash equivalents and restricted cash, beginning of period		83,438
Cash, cash equivalents and restricted cash, end of period		47,432
Effect of Change
Operating activities
Other assets		307
Net cash provided by operating activities		307
Investing activities
Transfers from restricted deposits		(154)
Net cash used in investing activities		(154)
Net decrease in cash, cash equivalents and restricted cash		153
Cash, cash equivalents and restricted cash, beginning of period		16,323
Cash, cash equivalents and restricted cash, end of period		$ 16,476

Investments - Locations (Detail

Investments - Locations (Details) $ in Thousands		3 Months Ended
		Mar. 31, 2017USD ($)property		Mar. 31, 2016USD ($)	Mar. 31, 2017USD ($)property		Dec. 31, 2016USD ($)property
Investments:
Number of property locations of investments (in locations) | property		1,660			1,750		1,660
Number of owned properties (in properties) | property					1,703
Number of properties owned as direct financing receivables | property					38
Number of ground lease interests (in properties) | property					18
Number of properties which secure certain mortgage loans (in properties) | property					29
Gross acquisition cost of real estate investments					$ 5,250,000
Number of Investment Locations
Gross investments | property		1,660
Acquisition of and additions to real estate | property		94
Investment in loans and direct financing receivables | property		1
Sales of real estate | property		(5)
Gross investments | property		1,750
Dollar Amount of Investments
Gross investments	[1]	$ 5,124,516
Acquisition of and additions to real estate	[1]	412,635
Investment in loans and direct financing receivables	[1]	8,098
Sales of real estate	[1]	(15,482)
Principal collections on loans and direct financing receivables		(14,764)	[1]	$ (164)
Provision for impairment of real estate	[1]	(4,270)
Other	[1]	(217)
Gross investments	[1]	5,510,516
Less accumulated depreciation and amortization	[1]				(333,043)
Net investments					$ 5,177,473	[1]	$ 4,825,532
Interest capitalized		300
Tenant improvement advances disbursed		$ 13,900
[1]	The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.

Investments - Portfolio Diversi

Investments - Portfolio Diversification (Details) $ in Thousands		Mar. 31, 2017USD ($)property	Dec. 31, 2016USD ($)property
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		1,750	1,660
Dollar Amount of Investments | $	[1]	$ 5,510,516	$ 5,124,516
Percentage of Total Dollar Amount of Investments		100.00%
Restaurants
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		730
Dollar Amount of Investments | $		$ 1,171,384
Percentage of Total Dollar Amount of Investments		21.00%
Manufacturing
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		160
Dollar Amount of Investments | $		$ 804,859
Percentage of Total Dollar Amount of Investments		15.00%
Furniture stores
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		48
Dollar Amount of Investments | $		$ 384,623
Percentage of Total Dollar Amount of Investments		7.00%
Early childhood education centers
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		169
Dollar Amount of Investments | $		$ 372,936
Percentage of Total Dollar Amount of Investments		7.00%
Movie theaters
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		38
Dollar Amount of Investments | $		$ 352,665
Percentage of Total Dollar Amount of Investments		6.00%
Health clubs
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		62
Dollar Amount of Investments | $		$ 313,674
Percentage of Total Dollar Amount of Investments		6.00%
Lawn and garden equipment and supply stores
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		22
Dollar Amount of Investments | $		$ 187,690
Percentage of Total Dollar Amount of Investments		3.00%
Automotive repair and maintenance
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		85
Dollar Amount of Investments | $		$ 156,537
Percentage of Total Dollar Amount of Investments		3.00%
All other service industries
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		344
Dollar Amount of Investments | $		$ 1,330,040
Percentage of Total Dollar Amount of Investments		24.00%
All other retail industries
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		92
Dollar Amount of Investments | $		$ 436,108
Percentage of Total Dollar Amount of Investments		8.00%
[1]	The dollar amount of investments includes the investment in land, buildings, improvements and lease intangibles related to real estate investments as well as the carrying amount of the loans and direct financing receivables.

Investments - Significant Credi

Investments - Significant Credit and Revenue Concentration (Details)	3 Months Ended
	Mar. 31, 2017stateitem
Real estate investment portfolio | Geographic concentration
Significant Credit and Revenue Concentration
Number of customers	370
Number of states over which real estate investments are dispersed (in states) | state	48
Concentration Percentage for threshold	10.00%
Real estate investment portfolio | Geographic concentration | Texas
Significant Credit and Revenue Concentration
Concentration Percentage	12.00%
Number of states accounting for 10% or more | state	1
Real estate investment portfolio | Customer concentration
Significant Credit and Revenue Concentration
Concentration Percentage for threshold	10.00%
Number of customers representing more than 10%	0
Real estate investment portfolio | Customer concentration | Largest customer, investment portfolio
Significant Credit and Revenue Concentration
Concentration Percentage	3.00%
Real estate investment portfolio | Concept concentration | Minimum
Significant Credit and Revenue Concentration
Number of concepts (in categories)	440
Investment portfolio revenues | Customer concentration | Largest customer, investment portfolio revenues
Significant Credit and Revenue Concentration
Concentration Percentage	3.00%
Investment portfolio revenues | Concept concentration
Significant Credit and Revenue Concentration
Concentration Percentage	3.00%

Investments - Intangible Lease

Investments - Intangible Lease Assets and Real Estate Investments (Details) $ in Thousands	3 Months Ended		15 Months Ended
	Mar. 31, 2017USD ($)propertyitem	Mar. 31, 2016USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Intangible Lease Assets
Intangible lease assets	$ 92,397		$ 92,397	$ 92,337
Accumulated amortization	(20,972)		(20,972)	(19,515)
Net intangible lease assets	71,425		71,425	72,822
Amortization in the next five years
Remainder of 2017	4,700		4,700
2,018	6,100		6,100
2,019	5,900		5,900
2,020	5,300		5,300
2,021	5,000		5,000
2,022	$ 4,700		4,700
Accounting for Real Estate Investments
Typical number of renewal options | item	1
Remaining noncancelable lease term	14 years
Number of real estate properties vacant not subject to lease | property	9
Future minimum rentals to be received under the remaining noncancelable term of the operating leases
Remainder of 2017	$ 321,750		321,750
2,018	428,802		428,802
2,019	428,555		428,555
2,020	426,965		426,965
2,021	424,967		424,967
2,022	424,466		424,466
Thereafter	3,782,138		3,782,138
Total future minimum rentals	6,237,643		6,237,643
Decrease to rental revenue
Amortization in the next five years
Remainder of 2017	900		900
2,018	1,200		1,200
2,019	1,200		1,200
2,020	1,200		1,200
2,021	600		600
2,022	400		400
Amortization expense
Intangible Lease Assets
Amount amortized			1,600
In -place lease assets
Intangible Lease Assets
Intangible lease assets	$ 60,811		60,811	61,634
Amortization in the next five years
Weighted average remaining amortization period	9 years
Ground lease interest assets
Intangible Lease Assets
Intangible lease assets	$ 21,313		21,313	20,430
Amortization in the next five years
Weighted average remaining amortization period	46 years
Above-market lease assets
Intangible Lease Assets
Intangible lease assets	$ 10,273		$ 10,273	$ 10,273
Amortization in the next five years
Weighted average remaining amortization period	7 years
Above-market lease assets | Decrease to rental revenue
Intangible Lease Assets
Amount amortized	$ 300	$ 300

Investments - Loans and Direct

Investments - Loans and Direct Financing Receivables (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)propertyloan	Dec. 31, 2016USD ($)loan
Loans and direct financing receivables
Number of loans receivable	26
Number of other loans secured by tenant's equipment or other assets	9
Number of properties which secure certain mortgage loans (in properties) | property	29
Gross carrying amount of loans receivable | $	$ 138,400
Number of mortgage loans	17
Number of short-term mortgage loans	5
Amortization period of long-term mortgage loans	40 years
Mortgage loans receivable | $	$ 126,035	$ 135,774
Total principal outstanding - loans receivable | $	137,180	145,007
Unamortized loan origination costs | $	1,246	1,205
Direct financing receivables | $	124,158	122,998
Total loans and direct financing receivables | $	$ 262,584	$ 269,210
Minimum
Loans and direct financing receivables
Long‑term mortgage loans receivable prepayment penalty rate	1.00%
Maximum
Loans and direct financing receivables
Long‑term mortgage loans receivable prepayment penalty rate	20.00%
Mortgage loan receivable 0.0887 interest rate maturity range 2017 to 2020
Loans and direct financing receivables
Number of mortgage loans	5	5
Stated Interest Rate (as a percent)	8.87%	8.87%
Mortgage loans receivable | $	$ 22,546	$ 22,599
Mortgage loan receivable 0.0855 interest rate maturity range 2032 to 2038
Loans and direct financing receivables
Number of mortgage loans	5	5
Stated Interest Rate (as a percent)	8.55%	8.55%
Mortgage loans receivable | $	$ 42,954	$ 43,002
Number of mortgage loans subject to interest rate increases	3
Mortgage loan receivable 0.0858 interest rate maturity range 2053 to 2056
Loans and direct financing receivables
Number of mortgage loans	7	7
Stated Interest Rate (as a percent)	8.58%	8.58%
Mortgage loans receivable | $	$ 60,535	$ 70,173
Number of mortgage loans subject to interest rate increases	4
Number of mortgage loans allowing for prepayment in whole	3
Number of mortgage loans repaid	1
Mortgage loan receivable 0.0858 interest rate maturity range 2053 to 2056 | Minimum
Loans and direct financing receivables
Prepayment penalties	20.00%
Mortgage loan receivable 0.0858 interest rate maturity range 2053 to 2056 | Maximum
Loans and direct financing receivables
Prepayment penalties	70.00%
Equipment and other loans receivable 0.913 interest rate maturity range 2017 to 2025
Loans and direct financing receivables
Stated Interest Rate (as a percent)	9.13%	9.13%
Equipment and other loans receivable | $	$ 11,145	$ 9,233

Investments - Loans Receivable

Investments - Loans Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Scheduled loan receivable maturities
Remainder of 2017	$ 19,568
2,018	2,242
2,019	6,297
2,020	3,991
2,021	2,621
2,022	750
Thereafter	101,711
Total principal outstanding - loans receivable	137,180	$ 145,007
Components of investments accounted for as direct financing receivables
Minimum lease payments receivable	301,127	300,832
Estimated residual value of leased assets	14,815	14,500
Unearned income	(191,784)	(192,334)
Net investment	124,158	$ 122,998
Future minimum lease payments to be received
Remainder of 2017	8,900
2,018	12,100
2,019	12,100
2,020	12,100
2,021	12,100
2,021	12,100
Scheduled principal
Scheduled loan receivable maturities
Remainder of 2017	408
2,018	1,392
2,019	1,923
2,020	2,090
2,021	1,137
2,022	750
Thereafter	65,522
Total principal outstanding - loans receivable	73,222
Balloon payments
Scheduled loan receivable maturities
Remainder of 2017	19,160
2,018	850
2,019	4,374
2,020	1,901
2,021	1,484
Thereafter	36,189
Total principal outstanding - loans receivable	$ 63,958

Debt - Credit Facility (Details

Debt - Credit Facility (Details) $ in Thousands	Apr. 01, 2016	Sep. 30, 2015USD ($)	Apr. 30, 2016USD ($)	Nov. 30, 2015USD ($)loan	Sep. 30, 2015USD ($)	Mar. 31, 2017USD ($)segmentitem	Dec. 31, 2016USD ($)
Credit facilities
Borrowings outstanding (in dollars)							$ 48,000
Maximum unsecured debt leverage ratio (as a percent)		50.00%			50.00%
Unamortized financing costs related to all debt						$ 5,062	4,810
Revolving credit facility
Credit facilities
Unamortized financing costs related to all debt						$ 2,500	$ 2,700
Term Loan Payable
Credit facilities
Initial term			5 years			2 years
Number of extension options | item						3
Extension option term						1 year
Unsecured Term Notes Payable
Principal amount			$ 100,000			$ 100,000
Term Loan Payable | One-Month LIBOR
Credit facilities
Debt Instrument interest rate description			one-month LIBOR			one-month LIBOR
Term Loan Payable | One-Month LIBOR | Minimum
Credit facilities
Credit spread (as a percent)			1.35%			1.30%
Term Loan Payable | One-Month LIBOR | Maximum
Credit facilities
Credit spread (as a percent)			2.15%			2.15%
Senior Unsecured Notes
Unsecured Term Notes Payable
Contingent periodic interest rate increase for failure to maintain investment grade credit rating				1.00%
Prepayment applied to principal plus make-whole amount (as a percent)				100.00%
Principal amount				$ 375,000
Number of loans | loan				3
Senior Unsecured Notes | Minimum
Unsecured Term Notes Payable
Prepayment threshold (as a percent)				5.00%
Interest rate swaps
Credit facilities
Number of agreements | segment						5
Term Loan Issued March 2017 Member | Term Loan Payable | One-Month LIBOR
Credit facilities
Debt Instrument interest rate description						one-month LIBOR
New unsecured credit facility | Revolving credit facility
Credit facilities
Borrowing availability, limitation as a percentage of the value of the Company's eligible unencumbered assets (as a percent)						50.00%
Borrowings outstanding (in dollars)						$ 0
Eligible unencumbered assets (in dollars)						2,560,000
Amended unsecured revolving credit facility
Credit facilities
Minimum EBITDA to fixed charges ratio covenant (as a percent)		1.5
Amended unsecured revolving credit facility | Revolving credit facility
Credit facilities
Unsecured loan facility						$ 500,000
Size of the facility with the accordion feature (in dollars)		$ 800,000			$ 800,000
Maturity date					Sep. 30, 2019
Extension option term					1 year
Extension fee (as a percent)					0.15%
Maximum leverage covenant (as a percent)		65.00%			65.00%
Minimum consolidated net worth, base (in dollars)		$ 1,000,000			$ 1,000,000
Minimum consolidated net worth, percentage of any additional equity raised (as a percent)		75			75
Maximum dividend payout ratio (as a percent)		95
Amended unsecured revolving credit facility | Revolving credit facility | Minimum
Credit facilities
Non-use fee (as a percent)		0.15%
Amended unsecured revolving credit facility | Revolving credit facility | Maximum
Credit facilities
Non-use fee (as a percent)		0.25%
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR
Credit facilities
Debt Instrument interest rate description	LIBOR				LIBOR
Credit spread (as a percent)						1.35%
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR | Minimum
Credit facilities
Credit spread (as a percent)					1.35%
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR | Maximum
Credit facilities
Credit spread (as a percent)					2.15%
Amended unsecured revolving credit facility | Revolving credit facility | Base rate
Credit facilities
Debt Instrument interest rate description					Base Rate
Amended unsecured revolving credit facility | Revolving credit facility | Base rate | Minimum
Credit facilities
Credit spread (as a percent)					0.35%
Amended unsecured revolving credit facility | Revolving credit facility | Base rate | Maximum
Credit facilities
Credit spread (as a percent)					1.15%
Series A issued November 2015 | Term Loan Payable
Unsecured Term Notes Payable
Stated interest rate (as a percent)						4.95%
Series B issued November 2015 | Term Loan Payable
Unsecured Term Notes Payable
Stated interest rate (as a percent)						5.24%
Term Loan Issued March 2017 Member | Term Loan Payable | One-Month LIBOR
Credit facilities
Credit spread (as a percent)						1.30%
Term Loan Issued March 2017 Member | Senior Unsecured Notes
Unsecured Term Notes Payable
Stated interest rate (as a percent)						2.77%

Debt - Carrying Amount (Details

Debt - Carrying Amount (Details) $ in Thousands		1 Months Ended	3 Months Ended
		Apr. 30, 2016USD ($)	Mar. 31, 2017USD ($)agreementsegment	Dec. 31, 2016USD ($)	Nov. 30, 2015USD ($)
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			$ 2,567,044
Unamortized net (discount) premium			(411)	$ (336)
Unamortized deferred financing costs			(5,062)	(4,810)
Total unsecured notes and term loan payable, net			569,938	470,190
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Remainder of 2017			31,717
2,018			36,968
2,019			342,851
2,020			317,492
2,021			250,382
2,021			231,999
Thereafter			1,355,635
Long-term Debt			2,567,044
Scheduled principal
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			203,230
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Remainder of 2017			21,796
2,018			30,304
2,019			29,312
2,020			23,860
2,021			21,016
2,021			20,506
Thereafter			56,436
Long-term Debt			203,230
Balloon payments
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			2,363,814
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Remainder of 2017			9,921
2,018			6,664
2,019			313,539
2,020			293,632
2,021			229,366
2,021			211,493
Thereafter			1,299,199
Long-term Debt			$ 2,363,814
Interest rate swaps
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Number of agreements | segment			5
Senior Unsecured Notes
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount					$ 375,000
Outstanding balance			$ 200,000	100,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 200,000	100,000
Senior Unsecured Notes | Term Loan Issued March 2017 Member
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Stated interest rate (as a percent)			2.77%
Outstanding balance			$ 100,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 100,000
Senior Unsecured Notes | Term Loan issued April 2016
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Stated interest rate (as a percent)			2.69%
Outstanding balance			$ 100,000	100,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			100,000	100,000
Term Loan Payable
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount		$ 100,000	$ 100,000
Term of notes		5 years	2 years
Outstanding balance			$ 375,000	375,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 375,000	375,000
Term Loan Payable | One-Month LIBOR
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Debt Instrument, Description of Variable Rate Basis		one-month LIBOR	one-month LIBOR
Term Loan Payable | Series A issued November 2015
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Stated interest rate (as a percent)			4.95%
Outstanding balance			$ 75,000	75,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 75,000	75,000
Term Loan Payable | Series B issued November 2015
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Stated interest rate (as a percent)			5.24%
Outstanding balance			$ 100,000	100,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 100,000	100,000
Term Loan Payable | Series C issued April 2016
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Stated interest rate (as a percent)			4.73%
Outstanding balance			$ 200,000	200,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 200,000	200,000
Term Loan Payable | Term Loan Issued March 2017 Member | One-Month LIBOR
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Credit spread (as a percent)			1.30%
Term Loan Payable | Term Loan issued April 2016 | Interest rate swaps
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Number of agreements | agreement			2
Term Loan Payable | Term Loan issued April 2016 | One-Month LIBOR
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Debt Instrument, Description of Variable Rate Basis			one-month LIBOR
Credit spread (as a percent)			1.35%
Non-recourse net-lease mortgage notes:
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Retained non-amortizing notes			$ 128,000
Non‑recourse mortgage notes payable: | Interest rate swaps
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Termination value, liability position which includes accrued interest			$ 100
Non‑recourse mortgage notes payable: | $20,530 note issued December 2011 and amended February 2012 | Interest rate swaps
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Number of agreements | agreement			2
Non‑recourse mortgage notes payable: | $12.6 million portion of note issued December 2011 and amended February 2012 | Interest rate swaps
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			$ 12,000
Fixed rate			5.299%
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 12,000
Non‑recourse mortgage notes payable: | $6.6 million portion of note issued December 2011 and amended February 2012 | Interest rate swaps
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			$ 6,200
Fixed rate			5.23%
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 6,200
Consolidated special purpose entities
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Aggregate investment amount			2,500,000
Unamortized deferred financing costs			(33,207)	(32,542)
Total unsecured notes and term loan payable, net			1,958,426	1,833,481
Consolidated special purpose entities | Non-recourse net-lease mortgage notes:
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			1,746,450	1,616,766
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			1,746,450	1,616,766
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2012-1, Class A Due August 2019
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			214,500
Outstanding balance			199,852	200,749
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 199,852	200,749
Mortgage Loans on Real Estate, Interest Rate			5.77%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2013-1, Class A-1 Due March 2020
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 150,000
Outstanding balance			140,045	140,724
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 140,045	140,724
Mortgage Loans on Real Estate, Interest Rate			4.16%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2013-2, Class A-1 Due July 2020
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 107,000
Outstanding balance			100,805	101,265
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 100,805	101,265
Mortgage Loans on Real Estate, Interest Rate			4.37%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2013-3, Class A-1 Due November 2020
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 77,000
Outstanding balance			72,982	73,307
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 72,982	73,307
Mortgage Loans on Real Estate, Interest Rate			4.24%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2014‑1, Class A‑1 Due April 2021
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 120,000
Outstanding balance			118,300	118,450
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 118,300	118,450
Mortgage Loans on Real Estate, Interest Rate			4.21%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2015-1, Class A-1 Due April 2022
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 95,000
Outstanding balance			94,090	94,208
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 94,090	94,208
Mortgage Loans on Real Estate, Interest Rate			3.75%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2013-1, Class A-2 Due March 2023
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 102,000
Outstanding balance			95,231	95,693
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 95,231	95,693
Mortgage Loans on Real Estate, Interest Rate			4.65%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2013-2, Class A-2 Due July 2023
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 97,000
Outstanding balance			91,384	91,801
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 91,384	91,801
Mortgage Loans on Real Estate, Interest Rate			5.33%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2013-3, Class A-2 Due November 2023
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 100,000
Outstanding balance			94,782	95,204
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 94,782	95,204
Mortgage Loans on Real Estate, Interest Rate			5.21%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2014‑1, Class A‑2 Due April 2024
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 140,000
Outstanding balance			138,017	138,192
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 138,017	138,192
Mortgage Loans on Real Estate, Interest Rate			5.00%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2015-1, Class A-2 Due April 2025
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 270,000
Outstanding balance			267,412	267,750
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 267,412	267,750
Mortgage Loans on Real Estate, Interest Rate			4.17%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2016-1, Class A-1 (2016) due Oct 2026
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 200,000
Outstanding balance			198,550	199,423
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 198,550	199,423
Mortgage Loans on Real Estate, Interest Rate			3.96%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | Series 2016-1, Class A-2 (2017) Due April 2027
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 135,000
Outstanding balance			135,000
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 135,000
Mortgage Loans on Real Estate, Interest Rate			4.32%
Consolidated special purpose entities | Non-recourse net-lease mortgage notes: | $21,125 note issued July 2015
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			$ 21,125	21,125
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 21,125	21,125
Mortgage Loans on Real Estate, Interest Rate			4.36%
Consolidated special purpose entities | Non‑recourse mortgage notes payable:
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Aggregate investment amount			$ 421,400
Principal amount			8,000
Outstanding balance			245,594	249,593
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			245,594	249,593
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $2,956 note issued June 2013
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			2,956
Outstanding balance				2,663
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt				2,663
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $7,088 note issued April 2007
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			7,088
Outstanding balance	[1]		$ 6,426	6,457
Estimated effective yield at assumption (as a percent)			4.45%
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt	[1]		$ 6,426	6,457
Mortgage Loans on Real Estate, Interest Rate	[1]		6.00%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $4,400 note issued August 2007
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 4,400
Outstanding balance	[2]		$ 3,555	3,586
Estimated effective yield at assumption (as a percent)			3.40%
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt	[2]		$ 3,555	3,586
Mortgage Loans on Real Estate, Interest Rate	[2]		6.7665%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $8,000 note issued January 2012; assumed on December 2013
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance			$ 6,886	6,960
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 6,886	6,960
Mortgage Loans on Real Estate, Interest Rate			4.778%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $20,530 note issued December 2011 and amended February 2012
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 20,530
Outstanding balance			18,232	18,359
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 18,232	18,359
Mortgage Loans on Real Estate, Interest Rate	[3]		5.275%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $20,530 note issued December 2011 and amended February 2012 | One-Month LIBOR
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Debt Instrument, Description of Variable Rate Basis			one-month LIBOR
Credit spread (as a percent)			3.50%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $6,500 note issued December 2012
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 6,500
Outstanding balance			5,858	5,900
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 5,858	5,900
Mortgage Loans on Real Estate, Interest Rate			4.806%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $16,100 note issued February 2014
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 16,100
Outstanding balance			15,065	15,159
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 15,065	15,159
Mortgage Loans on Real Estate, Interest Rate			4.83%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $13,000 note issued May 2012
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 13,000
Outstanding balance			11,657	11,737
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 11,657	11,737
Mortgage Loans on Real Estate, Interest Rate			5.195%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $14,950 note issued July 2012
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 14,950
Outstanding balance			13,036	13,135
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 13,036	13,135
Mortgage Loans on Real Estate, Interest Rate			4.95%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $26,000 note issued August 2012
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 26,000
Outstanding balance			23,465	23,625
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 23,465	23,625
Mortgage Loans on Real Estate, Interest Rate			5.05%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $6,400 note issued November 2012
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 6,400
Outstanding balance			5,786	5,827
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 5,786	5,827
Mortgage Loans on Real Estate, Interest Rate			4.707%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $11,895 note issued March 2013
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 11,895
Outstanding balance			10,857	10,931
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 10,857	10,931
Mortgage Loans on Real Estate, Interest Rate			4.7315%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $17,500 note issued August 2013
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 17,500
Outstanding balance			16,282	16,380
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 16,282	16,380
Mortgage Loans on Real Estate, Interest Rate			5.46%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $10,075 note issued March 2014
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 10,075
Outstanding balance			9,650	9,691
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 9,650	9,691
Mortgage Loans on Real Estate, Interest Rate			5.10%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $21,125 note issued July 2015
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 21,125
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $65,000 note issued June 2016
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			65,000
Outstanding balance			64,363	64,614
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 64,363	64,614
Mortgage Loans on Real Estate, Interest Rate			4.75%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $7,750 note issued February 2013
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 7,750
Outstanding balance			$ 7,066	7,114
Interest rate term before reset			10 years
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 7,066	7,114
Mortgage Loans on Real Estate, Interest Rate	[4]		4.81%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $7,750 note issued February 2013 | Initial rate
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Credit spread (as a percent)			4.00%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $7,750 note issued February 2013 | Treasury rate
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Credit spread (as a percent)			4.00%
Consolidated special purpose entities | Non‑recourse mortgage notes payable: | $6,944 notes issued March 2013
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Principal amount			$ 6,944
Outstanding balance			$ 6,285	6,330
Interest rate term before reset			10 years
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt			$ 6,285	$ 6,330
Mortgage Loans on Real Estate, Interest Rate	[5]		4.50%
[1]	Note was assumed in December 2013 at a premium; estimated effective yield at assumption of 4.45%
[2]	Note was assumed in September 2014 at a premium; estimated effective yield at assumption of 3.40%
[3]	Note is a variablerate note which resets monthly at one-month LIBOR + 3.50%. The Company has entered into two interest rate swap agreements that effectively convert the floating rate on a $12.0 million portion and a $6.2 million portion of this mortgage note payable to fixed rates of 5.299% and 5.230%, respectively.
[4]	Interest rate is effective for first 10 years and will reset to greater of (1) initial rate plus 400 basis points or (2) Treasury rate plus 400 basis points.
[5]	Interest rate is effective for first 10 years and will reset to the lender’s then prevailing interest rate.Credit Risk Related Contingent FeaturesThe Company has an agreement with a derivative counterparty which provides that if the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company has agreements with other derivative counterparties which provide that the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of March 31, 2017, the termination value of the Company’s interest rate swaps that were in a liability position was approximately $0.1 million, which includes accrued interest but excludes any adjustment for nonperformance risk.Long-term Debt Maturity Schedule

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		7 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Common stock.
Shares issued and sold	9,947,500
Gross proceeds from issuance of shares	$ 281,021	$ 1
Net proceeds from issuance of common stock	220,800
Offering costs paid	9,591	434
Selling stockholder costs		800
Declared dividends payable to common stockholders (in dollars)	$ 49,700	$ 38,000
Common stock, par value per share	$ 0.01		$ 0.01	$ 0.01
Common stock outstanding	171,378,139		171,378,139	159,341,955
At the market
Common stock.
Maximum value of shares that can be offered and sold					$ 400,000
Shares issued and sold	2,047,546		8,132,647
Weighted average share price	$ 25.02		$ 26.25
Gross proceeds from issuance of shares	$ 51,200		$ 213,500
Net proceeds from issuance of common stock	50,300		209,600
Offering costs paid	$ 800		$ 3,200

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2017USD ($)
Commitments to fund improvements to real estate properties
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Real estate property improvement commitments	$ 50.7

Fair Value of Financial Instr32

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Derivatives [Line items]
Derivative asset	$ 1,900,000	$ 1,600,000
Derivative liabilities	109,000	180,000
Level 2 Fair Value | Carrying value
Derivatives [Line items]
Long-term debt obligations	2,528,400,000	2,303,700,000
Level 2 Fair Value | Fair value
Derivatives [Line items]
Long-term debt obligations	$ 2,622,800,000	$ 2,353,600,000

Uncategorized Items - stor-2017

Label	Element	Value
Restricted Cash Included In Other Assets	stor_RestrictedCashIncludedInOtherAssets	$ 16,476,000
Restricted Cash Included In Other Assets	stor_RestrictedCashIncludedInOtherAssets	$ 45,702,000