Store Capital (STOR) 10-Q 3 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 02, 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	Sep. 30, 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		190,015,680
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017		Dec. 31, 2016
Real estate investments:
Land and improvements	$ 1,788,412		$ 1,536,178
Buildings and improvements	3,763,510		3,226,791
Intangible lease assets	88,671		92,337
Total real estate investments	5,640,593		4,855,306
Less accumulated depreciation and amortization	(393,037)		(298,984)
Real estate investments, net	5,247,556		4,556,322
Loans and direct financing receivables	273,265		269,210
Net investments	5,520,821	[1]	4,825,532
Cash and cash equivalents	34,986		54,200
Other assets, net	58,910		61,936
Total assets	5,614,717		4,941,668
Liabilities:
Credit facility	82,000		48,000
Unsecured notes and term loan payable, net	570,376		470,190
Non-recourse debt obligations of consolidated special purpose entities, net	1,741,343		1,833,481
Dividends payable	58,904		46,209
Accrued expenses, deferred revenue and other liabilities	68,888		60,533
Total liabilities	2,521,511		2,458,413
Stockholders’ equity:
Common stock, $0.01 par value per share, 375,000,000 shares authorized, 190,013,411 and 159,341,955 shares issued and outstanding, respectively	1,900		1,593
Capital in excess of par value	3,284,353		2,631,845
Distributions in excess of retained earnings	(194,671)		(151,592)
Accumulated other comprehensive income	1,624		1,409
Total stockholders’ equity	3,093,206		2,483,255
Total liabilities and stockholders’ equity	$ 5,614,717		$ 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	Sep. 30, 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	190,013,411	159,341,955
Common shares, outstanding shares	190,013,411	159,341,955

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017		Sep. 30, 2016
Revenues:
Rental revenues	$ 104,039	$ 91,759	$ 314,093		$ 259,666
Interest income on loans and direct financing receivables	5,502	5,023	16,729		14,101
Other income	1,003	216	1,901		435
Total revenues	110,544	96,998	332,723		274,202
Expenses:
Interest	31,379	27,121	91,938		76,427
Transaction costs		155			490
Property costs	1,335	807	3,272		2,519
General and administrative	10,255	8,104	29,787		25,240
Selling stockholder costs					800
Depreciation and amortization	37,589	31,112	110,200		86,626
Provision for impairment of real estate	7,670		11,940	[1]
Total expenses	88,228	67,299	247,137		192,102
Income from operations before income taxes	22,316	29,699	85,586		82,100
Income tax expense	81	89	334		248
Income before gain on dispositions of real estate	22,235	29,610	85,252		81,852
Gain on dispositions of real estate, net of tax	6,345	6,733	35,778		9,533
Net income	$ 28,580	$ 36,343	$ 121,030		$ 91,385
Net income per share of common stock—basic and diluted:
Net income per share of common stock—basic and diluted	$ 0.15	$ 0.24	$ 0.69		$ 0.62
Weighted average common shares outstanding:
Weighted average shares outstanding used in basic income per share (in shares)	189,656,095	153,143,726	174,481,758		146,491,617
Weighted average shares outstanding used in diluted income per share (in shares)	190,043,107	153,462,048	174,481,758		146,747,194
Dividends declared per common share
Dividends declared per common share (in dollars per share)	$ 0.31	$ 0.29	$ 0.89		$ 0.83
[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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 28,580	$ 36,343	$ 121,030	$ 91,385
Other comprehensive income (loss):
Unrealized gains (losses) on cash flow hedges	34	245	(328)	(2,101)
Cash flow hedge losses reclassified to interest expense	116	277	543	568
Total other comprehensive income (loss)	150	522	215	(1,533)
Total comprehensive income	$ 28,730	$ 36,865	$ 121,245	$ 89,852

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net income		$ 121,030	$ 91,385
Adjustments to net income:
Depreciation and amortization		110,200	86,626
Amortization of deferred financing costs and other noncash interest expense		8,127	5,319
Amortization of equity-based compensation		5,880	5,219
Provision for impairment of real estate	[1]	11,940
Gain on dispositions of real estate, net of tax		35,778	9,533
Noncash revenue and other		3,318	(620)
Changes in operating assets and liabilities:
Other assets		(3,884)	(3,031)
Accrued expenses, deferred revenue and other liabilities		8,572	7,594
Net cash provided by operating activities		229,405	182,959
Investing activities
Acquisition of and additions to real estate		(978,944)	(849,286)
Investment in loans and direct financing receivables		(28,844)	(30,660)
Collections of principal on loans and direct financing receivables		23,099	1,590
Proceeds from dispositions of real estate		202,412	44,231
Net cash used in investing activities		(782,277)	(834,125)
Financing activities
Borrowings under credit facility		401,000	445,000
Repayments under credit facility		(367,000)	(400,000)
Borrowings under unsecured notes and term loans payable		100,000	300,000
Borrowings under non-recourse debt obligations of consolidated special purpose entities		134,961	65,000
Repayments under non-recourse debt obligations of consolidated special purpose entities		(231,578)	(22,831)
Financing costs paid		(2,748)	(4,243)
Proceeds from the issuance of common stock		658,110	389,564
Stock issuance costs paid		(10,325)	(13,684)
Shares repurchased under stock compensation plans		(1,346)	(1,719)
Dividends paid		(151,014)	(117,448)
Net cash provided by financing activities		530,060	639,639
Net decrease in cash, cash equivalents and restricted cash		(22,812)	(11,527)
Cash, cash equivalents and restricted cash, beginning of period		73,166	83,438
Cash, cash equivalents and restricted cash, end of period		50,354	71,911
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		22,323	16,375
Seller financing provided to purchasers of real estate sold			17,479
Acquisition of collateral property securing a mortgage note receivable		2,000
Accrued financing costs		33
Accrued stock issuance costs		53	366
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of amounts capitalized		79,360	64,937
Cash paid during the period for income and franchise taxes		$ 1,488	$ 1,029
[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	9 Months Ended
	Sep. 30, 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.

Investments

Investments	9 Months Ended
	Sep. 30, 2017
Investments:
Investments	3. Investments At September 30, 2017, STORE Capital had investments in 1,826 property locations representing 1,777 owned properties (of which 38 are accounted for as direct financing receivables), 19 ground lease interests and 30 properties which secure mortgage loans. The gross investment portfolio totaled $5.91 billion at September 30, 2017 and consisted of the gross acquisition cost of the real estate investments totaling $5.64 billion and loans and direct financing receivables with an aggregate carrying amount of $273.3 million. As of September 30, 2017, approximately 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 nine months ended September 30, 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)(d) 204 979,869 Investment in loans and direct financing receivables 3 28,844 Sales of real estate (40) (182,198) Principal collections on loans and direct financing receivables (d) (1) (25,099) Provision for impairment of real estate — (11,940) Other — (134) Gross investments, September 30, 2017 5,913,858 Less accumulated depreciation and amortization (393,037) Net investments, September 30, 2017 1,826 $ 5,520,821 (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 $0.8 million of interest capitalized to properties under construction. (c) Excludes $23.4 million of tenant improvement advances disbursed in 2017 which were accrued as of December 31, 2016. (d) One loan receivable was repaid in full through a $2.0 million non-cash transaction in which the Company acquired the underlying mortgaged property and leased it back to the borrower. Significant Credit and Revenue Concentration STORE Capital’s real estate investments are leased or financed to approximately 380 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 September 30, 2017. None of the Company’s customers represented more than 10% of the Company’s real estate investment portfolio at September 30, 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 September 30, 2017. The Company’s customers operate their businesses across approximately 480 concepts and the largest of these concepts represented approximately 3% of the Company’s total annualized investment portfolio revenues as of September 30, 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 September 30, 2017 (dollars in thousands): Percentage of Number of Dollar Total Dollar Investment Amount of Amount of Locations Investments (a) Investments Restaurants 727 $ 1,176,632 20 % Early childhood education centers 170 379,084 7 Furniture stores 46 371,453 6 Movie theaters 39 355,393 6 Health clubs 67 343,455 6 Family entertainment centers 25 231,893 4 Farm and ranch supply stores 22 198,854 3 All manufacturing industries 156 769,090 13 All other service industries 475 1,487,016 25 All other retail industries 99 600,988 10 1,826 $ 5,913,858 100 % (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): September 30, December 31, 2017 2016 In-place lease assets $ 57,816 $ 61,634 Ground lease interest assets 21,363 20,430 Above-market lease assets 9,492 10,273 Total intangible lease assets 88,671 92,337 Accumulated amortization (23,220) (19,515) Net intangible lease assets $ 65,451 $ 72,822 Aggregate lease intangible amortization included in expense was $1.5 million and $1.6 million during the three months ended September 30, 2017 and 2016, respectively, and was $4.8 million during both the nine-month periods ended September 30, 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 September 30, 2017 and 2016 and was $0.9 million during both the nine months ended September 30, 2017 and 2016. Based on the balance of the intangible assets at September 30, 2017, the aggregate amortization expense is expected to be $1.5 million for the remainder of 2017, $5.8 million in 2018, $5.6 million in 2019, $5.1 million in 2020, $4.7 million in 2021 and $4.5 million in 2022; the amount expected to be amortized as a decrease to rental revenue is expected to be $0.3 million for the remainder of 2017, $1.1 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 September 30, 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 September 30, 2017, the Company owned 19 properties that 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 September 30, 2017, are as follows (in thousands): Remainder of 2017 $ 113,052 2018 452,475 2019 451,699 2020 450,079 2021 449,344 2022 449,466 Thereafter 4,209,774 Total future minimum rentals $ 6,575,889 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 September 30, 2017, the Company held 29 loans receivable with an aggregate carrying amount of $148.8 million. Eighteen of the loans are mortgage loans secured by land and/or buildings and improvements on the mortgaged property. Six of the mortgage loans are shorter-term loans (maturing prior to 2023) 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 interest rates on ten of the mortgage loans are subject to increases over the term of the loans. The 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 September 30, December 31, Type Rate (a) Date 2017 2016 Six mortgage loans receivable (b) 8.60 % 2017 - 2022 $ 29,171 $ 22,599 Five mortgage loans receivable 8.57 % 2032 - 2038 42,863 43,002 Seven mortgage loans receivable (c) 8.70 % 2053 - 2056 64,608 70,173 Total mortgage loans receivable 136,642 135,774 Eleven equipment and other loans receivable 9.29 % 2017 - 2025 10,912 9,233 Total principal amount outstanding—loans receivable 147,554 145,007 Unamortized loan origination costs 1,256 1,205 Direct financing receivables 124,455 122,998 Total loans and direct financing receivables $ 273,265 $ 269,210 (a) Represents the weighted average interest rate as of the balance sheet date. (b) One loan outstanding at December 31, 2016 was repaid in full during the nine months ended September 30, 2017 through a $2.0 million non-cash transaction in which the Company acquired the underlying mortgaged property and leased it back to the borrower. (c) Four of these mortgage loans allow for prepayment in whole, but not in part, with penalties ranging from 20% to 70% depending on the timing of the prepayment. Two loans outstanding at December 31, 2016 were either repaid in full or sold during the nine months ended September 30, 2017 and the Company collected $0.1 million in prepayment penalty fees. 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 $ 238 $ 18,056 $ 18,294 2018 1,534 850 2,384 2019 2,188 4,374 6,562 2020 2,355 — 2,355 2021 1,301 1,484 2,785 2022 841 8,408 9,249 Thereafter 69,709 36,216 105,925 Total principal payments $ 78,166 $ 69,388 $ 147,554 As of September 30, 2017 and December 31, 2016, the Company had $124.5 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): September 30, December 31, 2017 2016 Minimum lease payments receivable $ 296,280 $ 300,832 Estimated residual value of leased assets 14,815 14,500 Unearned income (186,640) (192,334) Net investment $ 124,455 $ 122,998 As of September 30, 2017, the future minimum lease payments to be received under the direct financing lease receivables are expected to be $3.0 million for the remainder of 2017 and average approximately $12.2 million for each of the next five years.

Debt

Debt	9 Months Ended
	Sep. 30, 2017
Debt
Debt	4. Debt Credit Facility As of September 30, 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. Through June 30, 2017, borrowings under this facility required 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 Company was also required to 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 September 30, 2017, the Company had $82 million of borrowings outstanding and a pool of unencumbered assets aggregating approximately $3.0 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 September 30, 2017, the Company was in compliance with these covenants. At September 30, 2017 and December 31, 2016, unamortized financing costs related to the Company’s credit facility totaled $2.0 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 September 30, 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%. Subsequent to June 30, 2017, the Company made the election to base the credit spread on the Company’s credit rating as defined in the loan agreements; as a result, the interest rate on both term loans now resets monthly at one-month LIBOR plus a credit spread ranging from 0.90% to 1.75%; the credit spread currently applicable to the Company is 1.10%. 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, 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 September 30, 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 2.57 % (a) 100,000 — Term Loan issued April 2016 Apr. 2021 2.44 % (a) 100,000 100,000 Total term loans 200,000 100,000 Unamortized deferred financing costs (4,624) (4,810) Total unsecured notes and term loans payable, net $ 570,376 $ 470,190 (a) Loan is a variable‑rate loan which resets monthly at one-month LIBOR + the applicable credit spread which was 1.10% at September 30, 2017. The Company has entered into interest rate swap agreements that effectively convert the floating rate to the fixed rate noted above as of September 30, 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 and related leases (collateral) owned by these entities. 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 September 30, 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 if prepaid more than 24 months prior to maturity. In August 2017, the Company prepaid the STORE Master Funding Series 2012-1, Class A notes (issued in August 2012 and scheduled to mature in August 2019), which bore an interest rate of 5.77% and had an outstanding balance of $198.6 million at the time of prepayment and recognized $2.0 million of accelerated amortization of deferred financing costs associated with this debt. As of September 30, 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 $2.6 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 $392.0 million at September 30, 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 did not make the September 1, 2017 through November 1, 2017 scheduled payments of interest and principal due on a $12.9 million note scheduled to mature in August 2022 (see table below) because the two properties that secure this note were not generating sufficient cash flow to cover the debt service. The Company is currently in discussions with the lender regarding a resolution of this matter, although no assurances can be made as to the outcome of these discussions. As of the date of this report, the lender has not declared an event of default. Should the lender declare an event of default, the note would bear interest at a default rate equal to 9.95% per annum. The Company’s non-recourse debt obligations of consolidated special purpose entity subsidiaries are summarized below (dollars in thousands): Outstanding Balance Maturity Interest September 30, December 31, Date Rate 2017 2016 Non-recourse net-lease mortgage notes: $214,500 Series 2012-1, Class A $ — $ 200,749 $150,000 Series 2013-1, Class A-1 Mar. 2020 4.16 % 138,663 140,724 $107,000 Series 2013-2, Class A-1 Jul. 2020 4.37 % 99,869 101,265 $77,000 Series 2013-3, Class A-1 Nov. 2020 4.24 % 72,320 73,307 $120,000 Series 2014-1, Class A-1 Apr. 2021 4.21 % 118,000 118,450 $95,000 Series 2015-1, Class A-1 Apr. 2022 3.75 % 93,852 94,208 $102,000 Series 2013-1, Class A-2 Mar. 2023 4.65 % 94,291 95,693 $97,000 Series 2013-2, Class A-2 Jul. 2023 5.33 % 90,536 91,801 $100,000 Series 2013-3, Class A-2 Nov. 2023 5.21 % 93,922 95,204 $140,000 Series 2014-1, Class A-2 Apr. 2024 5.00 % 137,667 138,192 $270,000 Series 2015-1, Class A-2 Apr. 2025 4.17 % 266,737 267,750 $200,000 Series 2016-1, Class A-1 (2016) Oct. 2026 3.96 % 196,777 199,423 $135,000 Series 2016-1, Class A-2 (2017) Apr. 2027 4.32 % 134,021 — Total non-recourse net-lease mortgage notes 1,536,655 1,616,766 Non-recourse mortgage notes payable: $2,956 note issued June 2013 — 2,663 $7,088 note issued April 2007 — 6,457 $4,400 note issued August 2007 — 3,586 $8,000 note issued January 2012; assumed in December 2013 Jan. 2018 4.778 % 6,740 6,960 $20,530 note issued December 2011; amended February 2012 Jan. 2019 5.275 % (a) 17,970 18,359 $6,500 note issued December 2012 Dec. 2019 4.806 % 5,777 5,900 $16,100 note issued February 2014 Mar. 2021 4.83 % 14,879 15,159 $13,000 note issued May 2012 May 2022 5.195 % 11,500 11,737 $14,950 note issued July 2012 Aug. 2022 4.95 % 12,874 13,135 $26,000 note issued August 2012 Sept. 2022 5.05 % 23,150 23,625 $6,400 note issued November 2012 Dec. 2022 4.707 % 5,707 5,827 $11,895 note issued March 2013 Apr. 2023 4.7315 % 10,712 10,931 $17,500 note issued August 2013 Sept. 2023 5.46 % 16,092 16,380 $10,075 note issued March 2014 Apr. 2024 5.10 % 9,573 9,691 $21,125 note issued July 2015 Aug. 2025 4.36 % 21,099 21,125 $65,000 note issued June 2016 Jul. 2026 4.75 % 63,886 64,614 $7,750 note issued February 2013 Mar. 2038 4.81 % (b) 6,972 7,114 $6,944 notes issued March 2013 Apr. 2038 4.50 % (c) 6,194 6,330 Total non-recourse mortgage notes payable 233,125 249,593 Unamortized net (discount) premium (399) (336) Unamortized deferred financing costs (28,038) (32,542) Total non-recourse debt obligations of consolidated special purpose entities, net $ 1,741,343 $ 1,833,481 (a) 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 an $11.8 million portion and a $6.2 million portion of this mortgage note payable to fixed rates of 5.299% and 5.230%, respectively. (b) Interest rate is effective until March 2023 and will reset to greater of (1) initial rate plus 400 basis points or (2) Treasury rate plus 400 basis points. (c) Interest rate is effective until March 2023 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 September 30, 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 September 30, 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 $ 6,537 $ — $ 6,537 2018 26,432 6,664 33,096 2019 26,953 122,686 149,639 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 $ 181,740 $ 2,163,040 $ 2,344,780

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Stockholders’ Equity
Stockholders’ Equity	5. Stockholders’ Equity In June 2017, the Company completed a private placement of 18,621,674 shares of its common stock to a non-affiliated investor and received aggregate proceeds of $377.1 million. The issuance and sale of the shares were made pursuant to a stock purchase agreement and there were no underwriter discounts or commissions associated with the sale. 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 its 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 its 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 $209.4 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 $163.7 million and $124.6 million during the nine months ended September 30, 2017 and 2016, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 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 September 30, 2017, the Company had commitments to its customers to fund improvements to owned or mortgaged real estate properties totaling approximately $108.7 million, of which $101.0 million is expected to be funded in the next twelve months. These additional investments 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	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016, the fair value of the Company’s derivative instruments was an asset of $1.7 million and $1.6 million, respectively, included in other assets, net, on the condensed consolidated balance sheets, and a liability of $57,000 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 September 30, 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 September 30, 2017, these debt obligations had a carrying value of $2,311.7 million and an estimated fair value of $2,415.1 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 Accounti

Summary of Significant Accounting Principles (Policies)	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016, these special purpose entities held assets totaling $5.0 billion and $4.3 billion, respectively, and had third-party liabilities totaling $1.8 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 nine months ended September 30, 2016 have been retrospectively adjusted as follows: As Previously As Adjusted Effect of Reported per ASU 2016-18 Change Nine Months Ended September 30, 2016 Operating Activities Change in operating assets: Other assets $ (3,222) $ (3,031) $ 191 Net cash provided by operating activities 182,768 182,959 191 Investing Activities Transfers to restricted deposits (25,353) — 25,353 Net cash used in investing activities (859,478) (834,125) 25,353 Net decrease in cash, cash equivalents and restricted cash (37,071) (11,527) 25,544 Cash, cash equivalents and restricted cash, beginning of period 67,115 83,438 16,323 Cash, cash equivalents and restricted cash, end of period 30,044 71,911 41,867
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 and, consequently, that minimal, if any, transaction costs will be expensed subsequent to adoption. 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. During the nine months ended September 30, 2017, the Company recognized an aggregate provision for impairment of real estate of $11.9 million, representing $7.6 million recognized in the third quarter related to two properties which became vacant during the quarter and $4.3 million recognized in the first quarter associated with a property sold in the second quarter. The estimated fair value of the impaired real estate assets at September 30, 2017 was $12.7 million; there were no impaired assets as of December 31, 2016.
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. In certain circumstances, 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 $19.5 million and $15.0 million of accrued straight‑line rental revenue, net of allowances of $2.9 million and $4.6 million, at September 30, 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 1.5% 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 September 30, 2017, there was one mortgage loan receivable with an outstanding principal balance of $6.3 million on nonaccrual status. There were no loans on nonaccrual status at December 31, 2016. 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 September 30, 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 $15.4 million and $19.0 million of restricted cash and deposits in escrow at September 30, 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 September 30, 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 $11.8 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 nine months ended September 30, 2017, the Company granted RSAs representing 120,140 shares of restricted common stock to its directors and key employees. During the same period, RSAs representing 213,233 shares of previously issued restricted stock vested and RSAs representing 9,307 shares of previously issued restricted stock were forfeited. 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 tax withholding obligations under the Company’s equity-based compensation plans. As of September 30, 2017, the Company had 357,316 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 nine months ended September 30, 2017, the Company awarded 373,719 RSUs to its executive officers. At September 30, 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 September 30, 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 September 30, 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 28,580 $ 36,343 $ 121,030 $ 91,385 Less: earnings attributable to unvested restricted shares (105) (133) (320) (380) Net income used in basic and diluted income per share $ 28,475 $ 36,210 $ 120,710 $ 91,005 Denominator: Weighted average common shares outstanding 190,015,850 153,602,720 174,856,940 146,967,323 Less: Weighted average number of shares of unvested restricted stock (359,755) (458,994) (375,182) (475,706) Weighted average shares outstanding used in basic income per share 189,656,095 153,143,726 174,481,758 146,491,617 Effects of dilutive securities: Add: Treasury stock method impact of potentially dilutive securities (a) 387,012 318,322 — 255,577 Weighted average shares outstanding used in diluted income per share 190,043,107 153,462,048 174,481,758 146,747,194 For the three months ended September 30, 2017 and 2016, excludes 110,001 shares and 216,141 shares, respectively, and for the nine months ended September 30, 2017 and 2016, excludes 106,265 shares and 196,446 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.
Recent Accounting Pronouncements	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 September 30, 2017 and December 31, 2016, these special purpose entities held assets totaling $5.0 billion and $4.3 billion, respectively, and had third-party liabilities totaling $1.8 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 nine months ended September 30, 2016 have been retrospectively adjusted as follows: As Previously As Adjusted Effect of Reported per ASU 2016-18 Change Nine Months Ended September 30, 2016 Operating Activities Change in operating assets: Other assets $ (3,222) $ (3,031) $ 191 Net cash provided by operating activities 182,768 182,959 191 Investing Activities Transfers to restricted deposits (25,353) — 25,353 Net cash used in investing activities (859,478) (834,125) 25,353 Net decrease in cash, cash equivalents and restricted cash (37,071) (11,527) 25,544 Cash, cash equivalents and restricted cash, beginning of period 67,115 83,438 16,323 Cash, cash equivalents and restricted cash, end of period 30,044 71,911 41,867 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 and, consequently, that minimal, if any, transaction costs will be expensed subsequent to adoption. 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. During the nine months ended September 30, 2017, the Company recognized an aggregate provision for impairment of real estate of $11.9 million, representing $7.6 million recognized in the third quarter related to two properties which became vacant during the quarter and $4.3 million recognized in the first quarter associated with a property sold in the second quarter. The estimated fair value of the impaired real estate assets at September 30, 2017 was $12.7 million; there were no impaired assets as of December 31, 2016. 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. In certain circumstances, 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 $19.5 million and $15.0 million of accrued straight‑line rental revenue, net of allowances of $2.9 million and $4.6 million, at September 30, 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 1.5% 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 September 30, 2017, there was one mortgage loan receivable with an outstanding principal balance of $6.3 million on nonaccrual status. There were no loans on nonaccrual status at December 31, 2016. 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 September 30, 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 $15.4 million and $19.0 million of restricted cash and deposits in escrow at September 30, 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 September 30, 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 $11.8 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 nine months ended September 30, 2017, the Company granted RSAs representing 120,140 shares of restricted common stock to its directors and key employees. During the same period, RSAs representing 213,233 shares of previously issued restricted stock vested and RSAs representing 9,307 shares of previously issued restricted stock were forfeited. 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 tax withholding obligations under the Company’s equity-based compensation plans. As of September 30, 2017, the Company had 357,316 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 nine months ended September 30, 2017, the Company awarded 373,719 RSUs to its executive officers. At September 30, 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 September 30, 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 September 30, 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 28,580 $ 36,343 $ 121,030 $ 91,385 Less: earnings attributable to unvested restricted shares (105) (133) (320) (380) Net income used in basic and diluted income per share $ 28,475 $ 36,210 $ 120,710 $ 91,005 Denominator: Weighted average common shares outstanding 190,015,850 153,602,720 174,856,940 146,967,323 Less: Weighted average number of shares of unvested restricted stock (359,755) (458,994) (375,182) (475,706) Weighted average shares outstanding used in basic income per share 189,656,095 153,143,726 174,481,758 146,491,617 Effects of dilutive securities: Add: Treasury stock method impact of potentially dilutive securities (a) 387,012 318,322 — 255,577 Weighted average shares outstanding used in diluted income per share 190,043,107 153,462,048 174,481,758 146,747,194 (a) For the three months ended September 30, 2017 and 2016, excludes 110,001 shares and 216,141 shares, respectively, and for the nine months ended September 30, 2017 and 2016, excludes 106,265 shares and 196,446 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, have minimal, if any, impact on the Company’s financial position, results of operations or cash flows upon adoption. In May 2014, with subsequent updates in 2015 and 2016, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which establishes a principles-based approach for accounting for revenue from contracts with customers. The standard does not apply to revenue recognition for lease contracts or to the interest income recognized from loans receivable, which together represent over 99% of the Company’s revenue. ASU 2014-09 is effective for the Company on January 1, 2018 with early adoption permitted and allows for full retrospective or modified retrospective methods of adoption. In accordance with the Company’s implementation plan for adoption, it has evaluated its revenue streams and identified the very few that fall within the scope of this new accounting standard including any impact to the accounting for sales of real estate assets. The Company expects to complete its in-depth review of the revenue contracts and related performance obligations in the fourth quarter of 2017 and finalize the revision of its internal accounting procedures and controls around the revenue recognition process. The Company currently expects to adopt the standard on January 1, 2018 using the modified retrospective method for transition under the standard, in which case the cumulative effect of applying the standard, if any, would be recognized at the date of initial application; the Company currently does not anticipate a material cumulative effect adjustment. This new revenue guidance includes changes to the accounting for sales of real estate properties; however, based on the Company’s 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. The Company will consider whether any additional disclosures required upon the adoption of this standard are applicable to the Company’s 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; during the first nine months of 2017, the Company capitalized $1.5 million of initial direct costs which are included in other assets on the condensed consolidated balance sheet. Although primarily a lessor, the Company is also a lessee under several ground lease arrangements and under its corporate office lease. The Company has completed its initial inventory and evaluation of these leases and expects that it will be required to recognize a right-of-use asset and a lease liability for the present value of the minimum lease payments. The Company is in the process of preparing and reviewing the initial estimates of the amount of its right-of-use assets and lease liabilities; based on the Company’s current list of contracts under which it is a lessee, the Company estimates that its right-of-use assets to be recognized upon adoption will be less than 1% of total assets. Approximately 98% of the Company’s lease contracts (under which the Company is the lessor) are “triple-net” leases, which means that its tenants are responsible for making the payments to third parties for operating expenses such as, property taxes, insurance and common area maintenance (“CAM”) costs associated with the properties the Company leases to them. Under the current lease accounting guidance, these payments made by its tenants to third parties are excluded from lease payments and rental revenue. Upon adoption of the new lease accounting standard in 2019, these lease executory cost payments will be accounted for as activities or costs that are not components of the lease contract. As a result, the Company may be required to show these payments made by its tenants on a gross basis (for example, both as property tax expense and as corresponding revenue from the tenant who makes the payment directly to the third party) in its consolidated statements of income. Although there is not expected to be any impact to net inc

Summary of Significant Accoun14

Summary of Significant Accounting Principles (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, 2016 Operating Activities Change in operating assets: Other assets $ (3,222) $ (3,031) $ 191 Net cash provided by operating activities 182,768 182,959 191 Investing Activities Transfers to restricted deposits (25,353) — 25,353 Net cash used in investing activities (859,478) (834,125) 25,353 Net decrease in cash, cash equivalents and restricted cash (37,071) (11,527) 25,544 Cash, cash equivalents and restricted cash, beginning of period 67,115 83,438 16,323 Cash, cash equivalents and restricted cash, end of period 30,044 71,911 41,867
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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 28,580 $ 36,343 $ 121,030 $ 91,385 Less: earnings attributable to unvested restricted shares (105) (133) (320) (380) Net income used in basic and diluted income per share $ 28,475 $ 36,210 $ 120,710 $ 91,005 Denominator: Weighted average common shares outstanding 190,015,850 153,602,720 174,856,940 146,967,323 Less: Weighted average number of shares of unvested restricted stock (359,755) (458,994) (375,182) (475,706) Weighted average shares outstanding used in basic income per share 189,656,095 153,143,726 174,481,758 146,491,617 Effects of dilutive securities: Add: Treasury stock method impact of potentially dilutive securities (a) 387,012 318,322 — 255,577 Weighted average shares outstanding used in diluted income per share 190,043,107 153,462,048 174,481,758 146,747,194 (a) For the three months ended September 30, 2017 and 2016, excludes 110,001 shares and 216,141 shares, respectively, and for the nine months ended September 30, 2017 and 2016, excludes 106,265 shares and 196,446 shares, respectively, related to unvested restricted shares as the effect would have been antidilutive.

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Investments:
Schedule of gross real estate and loan activity	During the nine months ended September 30, 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)(d) 204 979,869 Investment in loans and direct financing receivables 3 28,844 Sales of real estate (40) (182,198) Principal collections on loans and direct financing receivables (d) (1) (25,099) Provision for impairment of real estate — (11,940) Other — (134) Gross investments, September 30, 2017 5,913,858 Less accumulated depreciation and amortization (393,037) Net investments, September 30, 2017 1,826 $ 5,520,821 (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 $0.8 million of interest capitalized to properties under construction. (c) Excludes $23.4 million of tenant improvement advances disbursed in 2017 which were accrued as of December 31, 2016. (d) One loan receivable was repaid in full through a $2.0 million non-cash transaction in which the Company acquired the underlying mortgaged property and leased it back to the borrower.
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 September 30, 2017 (dollars in thousands): Percentage of Number of Dollar Total Dollar Investment Amount of Amount of Locations Investments (a) Investments Restaurants 727 $ 1,176,632 20 % Early childhood education centers 170 379,084 7 Furniture stores 46 371,453 6 Movie theaters 39 355,393 6 Health clubs 67 343,455 6 Family entertainment centers 25 231,893 4 Farm and ranch supply stores 22 198,854 3 All manufacturing industries 156 769,090 13 All other service industries 475 1,487,016 25 All other retail industries 99 600,988 10 1,826 $ 5,913,858 100 % (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): September 30, December 31, 2017 2016 In-place lease assets $ 57,816 $ 61,634 Ground lease interest assets 21,363 20,430 Above-market lease assets 9,492 10,273 Total intangible lease assets 88,671 92,337 Accumulated amortization (23,220) (19,515) Net intangible lease assets $ 65,451 $ 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 September 30, 2017, are as follows (in thousands): Remainder of 2017 $ 113,052 2018 452,475 2019 451,699 2020 450,079 2021 449,344 2022 449,466 Thereafter 4,209,774 Total future minimum rentals $ 6,575,889
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 September 30, December 31, Type Rate (a) Date 2017 2016 Six mortgage loans receivable (b) 8.60 % 2017 - 2022 $ 29,171 $ 22,599 Five mortgage loans receivable 8.57 % 2032 - 2038 42,863 43,002 Seven mortgage loans receivable (c) 8.70 % 2053 - 2056 64,608 70,173 Total mortgage loans receivable 136,642 135,774 Eleven equipment and other loans receivable 9.29 % 2017 - 2025 10,912 9,233 Total principal amount outstanding—loans receivable 147,554 145,007 Unamortized loan origination costs 1,256 1,205 Direct financing receivables 124,455 122,998 Total loans and direct financing receivables $ 273,265 $ 269,210 (a) Represents the weighted average interest rate as of the balance sheet date. (b) One loan outstanding at December 31, 2016 was repaid in full during the nine months ended September 30, 2017 through a $2.0 million non-cash transaction in which the Company acquired the underlying mortgaged property and leased it back to the borrower. (c) Four of these mortgage loans allow for prepayment in whole, but not in part, with penalties ranging from 20% to 70% depending on the timing of the prepayment. Two loans outstanding at December 31, 2016 were either repaid in full or sold during the nine months ended September 30, 2017 and the Company collected $0.1 million in prepayment penalty fees.
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 $ 238 $ 18,056 $ 18,294 2018 1,534 850 2,384 2019 2,188 4,374 6,562 2020 2,355 — 2,355 2021 1,301 1,484 2,785 2022 841 8,408 9,249 Thereafter 69,709 36,216 105,925 Total principal payments $ 78,166 $ 69,388 $ 147,554
Schedule of the components of the investments accounted for as direct financing receivables	As of September 30, 2017 and December 31, 2016, the Company had $124.5 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): September 30, December 31, 2017 2016 Minimum lease payments receivable $ 296,280 $ 300,832 Estimated residual value of leased assets 14,815 14,500 Unearned income (186,640) (192,334) Net investment $ 124,455 $ 122,998

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of maturities of long-term debt	As of September 30, 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 $ 6,537 $ — $ 6,537 2018 26,432 6,664 33,096 2019 26,953 122,686 149,639 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 $ 181,740 $ 2,163,040 $ 2,344,780
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 September 30, 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 2.57 % (a) 100,000 — Term Loan issued April 2016 Apr. 2021 2.44 % (a) 100,000 100,000 Total term loans 200,000 100,000 Unamortized deferred financing costs (4,624) (4,810) Total unsecured notes and term loans payable, net $ 570,376 $ 470,190 (a) Loan is a variable‑rate loan which resets monthly at one-month LIBOR + the applicable credit spread which was 1.10% at September 30, 2017. The Company has entered into interest rate swap agreements that effectively convert the floating rate to the fixed rate noted above as of September 30, 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 September 30, December 31, Date Rate 2017 2016 Non-recourse net-lease mortgage notes: $214,500 Series 2012-1, Class A $ — $ 200,749 $150,000 Series 2013-1, Class A-1 Mar. 2020 4.16 % 138,663 140,724 $107,000 Series 2013-2, Class A-1 Jul. 2020 4.37 % 99,869 101,265 $77,000 Series 2013-3, Class A-1 Nov. 2020 4.24 % 72,320 73,307 $120,000 Series 2014-1, Class A-1 Apr. 2021 4.21 % 118,000 118,450 $95,000 Series 2015-1, Class A-1 Apr. 2022 3.75 % 93,852 94,208 $102,000 Series 2013-1, Class A-2 Mar. 2023 4.65 % 94,291 95,693 $97,000 Series 2013-2, Class A-2 Jul. 2023 5.33 % 90,536 91,801 $100,000 Series 2013-3, Class A-2 Nov. 2023 5.21 % 93,922 95,204 $140,000 Series 2014-1, Class A-2 Apr. 2024 5.00 % 137,667 138,192 $270,000 Series 2015-1, Class A-2 Apr. 2025 4.17 % 266,737 267,750 $200,000 Series 2016-1, Class A-1 (2016) Oct. 2026 3.96 % 196,777 199,423 $135,000 Series 2016-1, Class A-2 (2017) Apr. 2027 4.32 % 134,021 — Total non-recourse net-lease mortgage notes 1,536,655 1,616,766 Non-recourse mortgage notes payable: $2,956 note issued June 2013 — 2,663 $7,088 note issued April 2007 — 6,457 $4,400 note issued August 2007 — 3,586 $8,000 note issued January 2012; assumed in December 2013 Jan. 2018 4.778 % 6,740 6,960 $20,530 note issued December 2011; amended February 2012 Jan. 2019 5.275 % (a) 17,970 18,359 $6,500 note issued December 2012 Dec. 2019 4.806 % 5,777 5,900 $16,100 note issued February 2014 Mar. 2021 4.83 % 14,879 15,159 $13,000 note issued May 2012 May 2022 5.195 % 11,500 11,737 $14,950 note issued July 2012 Aug. 2022 4.95 % 12,874 13,135 $26,000 note issued August 2012 Sept. 2022 5.05 % 23,150 23,625 $6,400 note issued November 2012 Dec. 2022 4.707 % 5,707 5,827 $11,895 note issued March 2013 Apr. 2023 4.7315 % 10,712 10,931 $17,500 note issued August 2013 Sept. 2023 5.46 % 16,092 16,380 $10,075 note issued March 2014 Apr. 2024 5.10 % 9,573 9,691 $21,125 note issued July 2015 Aug. 2025 4.36 % 21,099 21,125 $65,000 note issued June 2016 Jul. 2026 4.75 % 63,886 64,614 $7,750 note issued February 2013 Mar. 2038 4.81 % (b) 6,972 7,114 $6,944 notes issued March 2013 Apr. 2038 4.50 % (c) 6,194 6,330 Total non-recourse mortgage notes payable 233,125 249,593 Unamortized net (discount) premium (399) (336) Unamortized deferred financing costs (28,038) (32,542) Total non-recourse debt obligations of consolidated special purpose entities, net $ 1,741,343 $ 1,833,481 (a) 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 an $11.8 million portion and a $6.2 million portion of this mortgage note payable to fixed rates of 5.299% and 5.230%, respectively. (b) Interest rate is effective until March 2023 and will reset to greater of (1) initial rate plus 400 basis points or (2) Treasury rate plus 400 basis points. (c) Interest rate is effective until March 2023 and will reset to the lender’s then prevailing interest rate.

Summary of Significant Accoun17

Summary of Significant Accounting Principles (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)segmentpropertyitem	Mar. 31, 2017USD ($)	Sep. 30, 2017USD ($)segmentpropertyitem		Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)
Basis of Accounting and Principles of Consolidation
Assets owned	$ 5,614,717		$ 5,614,717		$ 4,941,668
Liabilities owed	2,521,511		$ 2,521,511		2,458,413
Segment Reporting
Number of Reportable Segments | segment			1
Impairments
Provision for impairment of real estate	$ 7,670	$ 4,300	$ 11,940	[1]
Number of properties which became vacant | property	2		2
Estimate fair value of impaired real estate assets			$ 12,700
Asset impaired					0
Revenue recognition
Accrued straight-line rental revenue, net of allowance	$ 19,500		19,500		15,000
Accrued straight-line rental revenue, allowance	$ 2,900		$ 2,900		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
Loans receivable
Number of loans on non-accrual status | item	1		1
Allowance for loan losses			$ 0		0
Non accrual status loan receivables	$ 6,300		6,300		0
Restricted Cash and Escrow Deposits
Restricted cash included in other assets	15,368		15,368		19,000	$ 41,867
Derivative Instruments and Hedging Activities
Outstanding balance	$ 2,344,780		$ 2,344,780
Maximum
Revenue recognition
Portion of investment portfolio subject to contingent rent based upon tenant sales (as a percent)	1.50%		1.50%
Rent receivables
Revenue recognition
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	$ 5,000,000		$ 5,000,000		4,300,000
Liabilities owed	$ 1,800,000		$ 1,800,000		1,900,000
Interest rate swaps
Derivative Instruments and Hedging Activities
Number of agreements | segment	5		5
Interest rate swap contract two
Derivative Instruments and Hedging Activities
Number of agreements | segment	2		2
Interest rate floor
Derivative Instruments and Hedging Activities
Number of agreements | segment	1		1
Senior Unsecured Notes
Derivative Instruments and Hedging Activities
Outstanding balance	$ 200,000		$ 200,000		100,000
Senior Unsecured Notes | Term Loan issued April 2016
Derivative Instruments and Hedging Activities
Outstanding balance	100,000		100,000		$ 100,000
Designated as hedging instrument | Interest rate swap contract one
Derivative Instruments and Hedging Activities
Current notional amounts	11,800		11,800
Designated as hedging instrument | Interest rate swap contract two
Derivative Instruments and Hedging Activities
Current notional amounts	6,200		6,200
Designated as hedging instrument | Interest rate swap contract three
Derivative Instruments and Hedging Activities
Current notional amounts	100,000		100,000
Outstanding balance	100,000		100,000
Designated as hedging instrument | Interest rate swap contract four
Derivative Instruments and Hedging Activities
Current notional amounts	100,000		100,000
Outstanding balance	$ 100,000		$ 100,000
[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.

Summary of Significant Accoun18

Summary of Significant Accounting Principles - Share Based Compensation and Other (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Examination, Penalties and Interest Accrued
Uncertain income tax positions	$ 0		$ 0
Accrual for interest or penalties	0		0
Numerator:
Net income	28,580,000	$ 36,343,000	121,030,000	$ 91,385,000
Less: earnings attributable to unvested restricted shares	(105,000)	(133,000)	(320,000)	(380,000)
Net income used in basic and diluted income per share	$ 28,475,000	$ 36,210,000	$ 120,710,000	$ 91,005,000
Denominator:
Weighted average common shares outstanding	190,015,850	153,602,720	174,856,940	146,967,323
Less: Weighted average number of shares of unvested restricted stock (in shares)	(359,755)	(458,994)	(375,182)	(475,706)
Weighted average shares outstanding used in basic income per share (in shares)	189,656,095	153,143,726	174,481,758	146,491,617
Effects of dilutive securities:
Add: Treasury stock method impact of potentially dilutive securities (in shares)	387,012	318,322		255,577
Weighted average shares outstanding used in diluted income per share (in shares)	190,043,107	153,462,048	174,481,758	146,747,194
Antidilutive unvested restricted shares (in shares)	110,001	216,141	106,265	196,446
Restricted Stock
Share‑based Compensation
Granted in period (in shares)			120,140
Vested in period (in shares)			213,233
Shares repurchased in connection with tax withholding obligations (in shares)			56,097
Forfeited in period (in shares)			(9,307)
Outstanding (in shares)	357,316		357,316
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		1,093,153

Summary of Significant Accoun19

Summary of Significant Accounting Principles - Cash (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Other assets	$ 3,884	$ 3,031
Net cash provided by operating activities	229,405	182,959
Investing activities
Net cash used in investing activities	(782,277)	(834,125)
Net decrease in cash, cash equivalents and restricted cash	(22,812)	(11,527)
Cash, cash equivalents and restricted cash, beginning of period	73,166	83,438
Cash, cash equivalents and restricted cash, end of period	$ 50,354	71,911
As previously reported
Operating activities
Other assets		(3,222)
Net cash provided by operating activities		182,768
Investing activities
Transfers to restricted deposits		(25,353)
Net cash used in investing activities		(859,478)
Net decrease in cash, cash equivalents and restricted cash		(37,071)
Cash, cash equivalents and restricted cash, beginning of period		67,115
Cash, cash equivalents and restricted cash, end of period		30,044
As Adjusted per ASU 2016-18 | Accounting Standards Update 2016-18 [Member]
Operating activities
Other assets		(3,031)
Net cash provided by operating activities		182,959
Investing activities
Net cash used in investing activities		(834,125)
Net decrease in cash, cash equivalents and restricted cash		(11,527)
Cash, cash equivalents and restricted cash, beginning of period		83,438
Cash, cash equivalents and restricted cash, end of period		71,911
Effect of Change
Operating activities
Other assets		191
Net cash provided by operating activities		191
Investing activities
Transfers to restricted deposits		25,353
Net cash used in investing activities		25,353
Net decrease in cash, cash equivalents and restricted cash		25,544
Cash, cash equivalents and restricted cash, beginning of period		16,323
Cash, cash equivalents and restricted cash, end of period		$ 41,867

Summary of Significant Accoun20

Summary of Significant Accounting Principles - New Accounting Pronouncements (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Maximum percentage of right of use assets to be recognized upon adoption of ASU	1.00%
Percent of triple net leases	98.00%
Other Assets [Member]
Initial direct lease costs capitalized	$ 1.5
Minimum
Percentage of total revenues from leases and interest income (as a percent)	99.00%

Investments - Locations (Detail

Investments - Locations (Details) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017USD ($)property	Mar. 31, 2017USD ($)property	Sep. 30, 2017USD ($)property		Sep. 30, 2017USD ($)property		Dec. 31, 2016USD ($)property
Investments:
Number of property locations of investments (in locations) | property		1,826	1,660	1,660		1,826		1,660
Number of owned properties (in properties) | property						1,777
Number of properties owned as direct financing receivables | property						38
Number of ground lease interests (in properties) | property						19
Number of properties which secure certain mortgage loans (in properties) | property						30
Gross acquisition cost of real estate investments						$ 5,640,000
Number of Investment Locations
Gross investments | property			1,660	1,660
Acquisition of and additions to real estate | property				204
Investment in loans and direct financing receivables | property				3
Sales of real estate | property				(40)
Principal collections on loans and direct financing receivables | property				(1)
Gross investments | property		1,826		1,826
Dollar Amount of Investments
Gross investments	[1]		$ 5,124,516	$ 5,124,516
Acquisition of and additions to real estate	[1]			979,869
Investment in loans and direct financing receivables	[1]			28,844
Sales of real estate	[1]			(182,198)
Principal collections on loans and direct financing receivables	[1]			25,099
Provision for impairment of real estate		$ (7,670)	$ (4,300)	(11,940)	[1]
Other	[1]			(134)
Gross investments	[1]	$ 5,913,858		5,913,858
Less accumulated depreciation and amortization	[1]					(393,037)
Net investments						$ 5,520,821	[1]	$ 4,825,532
Interest capitalized				800
Tenant improvement advances disbursed				23,400
Acquisition of underlying mortgaged property				$ 2,000
[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		Sep. 30, 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		1,826	1,660
Dollar Amount of Investments | $	[1]	$ 5,913,858	$ 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		727
Dollar Amount of Investments | $		$ 1,176,632
Percentage of Total Dollar Amount of Investments		20.00%
Manufacturing
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		156
Dollar Amount of Investments | $		$ 769,090
Percentage of Total Dollar Amount of Investments		13.00%
Furniture stores
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		46
Dollar Amount of Investments | $		$ 371,453
Percentage of Total Dollar Amount of Investments		6.00%
Early childhood education centers
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		170
Dollar Amount of Investments | $		$ 379,084
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		39
Dollar Amount of Investments | $		$ 355,393
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		67
Dollar Amount of Investments | $		$ 343,455
Percentage of Total Dollar Amount of Investments		6.00%
Family entertainment centers
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		25
Dollar Amount of Investments | $		$ 231,893
Percentage of Total Dollar Amount of Investments		4.00%
Farm and ranch 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 | $		$ 198,854
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		475
Dollar Amount of Investments | $		$ 1,487,016
Percentage of Total Dollar Amount of Investments		25.00%
All other retail industries
Information regarding the diversification of Company's investment portfolio among different industries [Line items]
Number of Investment Locations | property		99
Dollar Amount of Investments | $		$ 600,988
Percentage of Total Dollar Amount of Investments		10.00%
[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)	9 Months Ended
	Sep. 30, 2017stateitem
Real estate investment portfolio | Geographic concentration
Significant Credit and Revenue Concentration
Number of customers	380
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)	480
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		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)propertyitem	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Intangible Lease Assets
Intangible lease assets	$ 88,671		$ 88,671		$ 92,337
Accumulated amortization	(23,220)		(23,220)		(19,515)
Net intangible lease assets	65,451		65,451		72,822
Amortization in the next five years
Remainder of 2017	1,500		1,500
2,018	5,800		5,800
2,019	5,600		5,600
2,020	5,100		5,100
2,021	4,700		4,700
2,022	4,500		$ 4,500
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			19
Future minimum rentals to be received under the remaining noncancelable term of the operating leases
Remainder of 2017	113,052		$ 113,052
2,018	452,475		452,475
2,019	451,699		451,699
2,020	450,079		450,079
2,021	449,344		449,344
2,022	449,466		449,466
Thereafter	4,209,774		4,209,774
Total future minimum rentals	6,575,889		6,575,889
Decrease to rental revenue
Amortization in the next five years
Remainder of 2017	300		300
2,018	1,100		1,100
2,019	1,100		1,100
2,020	1,100		1,100
2,021	600		600
2,022	400		400
Amortization expense
Intangible Lease Assets
Amount amortized	1,500	$ 1,600	4,800	$ 4,800
In -place lease assets
Intangible Lease Assets
Intangible lease assets	57,816		$ 57,816		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	21,363		$ 21,363		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	9,492		$ 9,492		$ 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	$ 900	$ 900

Investments - Loans and Direct

Investments - Loans and Direct Financing Receivables (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017USD ($)propertyloan	Dec. 31, 2016USD ($)loan
Loans and direct financing receivables
Number of loans receivable | loan	29
Number of properties which secure certain mortgage loans (in properties) | property	30
Gross carrying amount of loans receivable	$ 148,800
Number of mortgage loans | loan	18
Number of short-term mortgage loans | loan	6
Amortization period of long-term mortgage loans	40 years
Mortgage loans receivable	$ 136,642	$ 135,774
Number of mortgage loans subject to interest rate increases | loan	10
Total principal outstanding - loans receivable	$ 147,554	145,007
Unamortized loan origination costs	1,256	1,205
Direct financing receivables	124,455	122,998
Total loans and direct financing receivables	273,265	$ 269,210
Non Cash acquisition of collateral property securing a mortgage note receivable	$ 2,000
Minimum
Loans and direct financing receivables
Long-term mortgage loans receivable prepayment penalty rate (as a percent)	1.00%
Maximum
Loans and direct financing receivables
Long-term mortgage loans receivable prepayment penalty rate (as a percent)	20.00%
Mortgage loan receivable 0.086 interest rate maturity range 2017 to 2022
Loans and direct financing receivables
Number of mortgage loans | loan	6	6
Stated Interest Rate (as a percent)	8.60%	8.60%
Mortgage loans receivable	$ 29,171	$ 22,599
Number of mortgage loans repaid | loan	1
Mortgage loan receivable 0.0857 interest rate maturity range 2032 to 2038
Loans and direct financing receivables
Number of mortgage loans | loan	5	5
Stated Interest Rate (as a percent)	8.57%	8.57%
Mortgage loans receivable	$ 42,863	$ 43,002
Mortgage loan receivable 0.0870 interest rate maturity range 2053 to 2056
Loans and direct financing receivables
Number of mortgage loans | loan	7	7
Stated Interest Rate (as a percent)	8.70%	8.70%
Mortgage loans receivable	$ 64,608	$ 70,173
Number of mortgage loans allowing for prepayment in whole | loan	4
Number of mortgage loans repaid | loan	2
Prepayment penalty fees	$ 100
Mortgage loan receivable 0.0870 interest rate maturity range 2053 to 2056 | Minimum
Loans and direct financing receivables
Prepayment penalties (as a percent)	20.00%
Mortgage loan receivable 0.0870 interest rate maturity range 2053 to 2056 | Maximum
Loans and direct financing receivables
Prepayment penalties (as a percent)	70.00%
Equipment and other loans receivable 0.0929 interest rate maturity range 2017 to 2025
Loans and direct financing receivables
Number of loans secured by tenant's equipment or other assets | loan	11
Stated Interest Rate (as a percent)	9.29%	9.29%
Equipment and other loans receivable	$ 10,912	$ 9,233

Investments - Loans Receivable

Investments - Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Scheduled loan receivable maturities
Remainder of 2017	$ 18,294
2,018	2,384
2,019	6,562
2,020	2,355
2,021	2,785
2,022	9,249
Thereafter	105,925
Total principal outstanding - loans receivable	147,554	$ 145,007
Components of investments accounted for as direct financing receivables
Minimum lease payments receivable	296,280	300,832
Estimated residual value of leased assets	14,815	14,500
Unearned income	(186,640)	(192,334)
Net investment	124,455	$ 122,998
Future minimum lease payments to be received
Remainder of 2017	3,000
2,018	12,200
2,019	12,200
2,020	12,200
2,021	12,200
2,022	12,200
Scheduled principal
Scheduled loan receivable maturities
Remainder of 2017	238
2,018	1,534
2,019	2,188
2,020	2,355
2,021	1,301
2,022	841
Thereafter	69,709
Total principal outstanding - loans receivable	78,166
Balloon payments
Scheduled loan receivable maturities
Remainder of 2017	18,056
2,018	850
2,019	4,374
2,021	1,484
2,022	8,408
Thereafter	36,216
Total principal outstanding - loans receivable	$ 69,388

Debt - Credit Facility (Details

Debt - Credit Facility (Details) $ in Thousands	Jul. 01, 2017	Sep. 30, 2015USD ($)	Mar. 31, 2017USD ($)item	Apr. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2017USD ($)segmentloan	Dec. 31, 2016USD ($)
Credit facilities
Borrowings outstanding (in dollars)						$ 82,000	$ 48,000
Maximum unsecured debt leverage ratio (as a percent)		50.00%			50.00%
Unamortized financing costs related to all debt						4,624	4,810
Revolving credit facility
Credit facilities
Unamortized financing costs related to all debt						$ 2,000	$ 2,700
Term Loan Payable
Credit facilities
Initial term			2 years	5 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
Credit spread (as a percent)	1.10%
Term Loan Payable | One-Month LIBOR | Minimum
Credit facilities
Credit spread (as a percent)	0.90%		1.30%	1.35%
Term Loan Payable | One-Month LIBOR | Maximum
Credit facilities
Credit spread (as a percent)	1.75%		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
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)						$ 82,000
Eligible unencumbered assets (in dollars)						3,000,000
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%
Facility fee (as a percent)	0.125%
Amended unsecured revolving credit facility | Revolving credit facility | Maximum
Credit facilities
Non-use fee (as a percent)		0.25%
Facility fee (as a percent)	0.30%
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR
Credit facilities
Debt Instrument interest rate description					LIBOR	LIBOR
Credit spread (as a percent)	1.00%
Facility fee (as a percent)	0.20%
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR | Minimum
Credit facilities
Credit spread (as a percent)	0.85%				1.35%
Amended unsecured revolving credit facility | Revolving credit facility | LIBOR | Maximum
Credit facilities
Credit spread (as a percent)	1.55%				2.15%
Amended unsecured revolving credit facility | Revolving credit facility | Base rate
Credit facilities
Debt Instrument interest rate description					Base Rate	Base Rate
Amended unsecured revolving credit facility | Revolving credit facility | Base rate | Minimum
Credit facilities
Credit spread (as a percent)	0.00%				0.35%
Amended unsecured revolving credit facility | Revolving credit facility | Base rate | Maximum
Credit facilities
Credit spread (as a percent)	0.55%				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 | Senior Unsecured Notes
Unsecured Term Notes Payable
Stated interest rate (as a percent)						2.57%

Debt - Carrying Amount (Details

Debt - Carrying Amount (Details) $ in Thousands		Jul. 01, 2017	Mar. 31, 2017USD ($)	Apr. 30, 2016USD ($)	Sep. 30, 2017USD ($)agreementsegmentitem	Dec. 31, 2016USD ($)	Aug. 31, 2012USD ($)
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Maximum number of months					24 months
Outstanding balance					$ 2,344,780
Unamortized net (discount) premium					(399)	$ (336)
Unamortized deferred financing costs					(4,624)	(4,810)
Total unsecured notes and term loan payable, net					570,376	470,190
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Remainder of 2017					6,537
2,018					33,096
2,019					149,639
2,020					317,492
2,021					250,382
2,021					231,999
Thereafter					1,355,635
Long-term Debt					2,344,780
Scheduled principal
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance					181,740
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Remainder of 2017					6,537
2,018					26,432
2,019					26,953
2,020					23,860
2,021					21,016
2,021					20,506
Thereafter					56,436
Long-term Debt					181,740
Balloon payments
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Outstanding balance					2,163,040
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
2,018					6,664
2,019					122,686
2,020					293,632
2,021					229,366
2,021					211,493
Thereafter					1,299,199
Long-term Debt					$ 2,163,040
Interest rate swaps
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Number of agreements | segment					5
Series 2012-1, Class A Due August 2019
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Amortization of deferred financing costs					$ 2,000
Stated interest rate (as a percent)							5.77%
Outstanding balance							$ 198,600
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt							$ 198,600
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
Summary of non‑recourse debt obligations of consolidated special purpose entity subsidiaries
Stated interest rate (as a percent)					2.57%
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)					2.44%
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			2 years	5 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
Credit spread (as a percent)		1.10%
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 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)					1.10%
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					$ 11,800
Fixed rate					5.299%
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 11,800
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					2,600,000
Unamortized deferred financing costs					(28,038)	(32,542)
Total unsecured notes and term loan payable, net					1,741,343	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					1,536,655	1,616,766
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					1,536,655	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						200,749
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt						200,749
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					138,663	140,724
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 138,663	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					99,869	101,265
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 99,869	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					72,320	73,307
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 72,320	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					118,000	118,450
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 118,000	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					93,852	94,208
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 93,852	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					94,291	95,693
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 94,291	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					90,536	91,801
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 90,536	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					93,922	95,204
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 93,922	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					137,667	138,192
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 137,667	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					266,737	267,750
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 266,737	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					196,777	199,423
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 196,777	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					134,021
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 134,021
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					$ 21,099	21,125
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 21,099	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					$ 392,000
Principal amount					8,000
Outstanding balance					233,125	249,593
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					233,125	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						6,457
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt						6,457
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						3,586
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt						3,586
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					6,740	6,960
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 6,740	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					17,970	18,359
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 17,970	18,359
Mortgage Loans on Real Estate, Interest Rate	[1]				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					5,777	5,900
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 5,777	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					14,879	15,159
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 14,879	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					11,500	11,737
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 11,500	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					$ 12,874	13,135
Number of secured property not generating sufficient cashflow to cover debt | item					2
Default Interest Rate					9.95%
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 12,874	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					23,150	23,625
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 23,150	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					5,707	5,827
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 5,707	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					10,712	10,931
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 10,712	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					16,092	16,380
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 16,092	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					9,573	9,691
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 9,573	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					63,886	64,614
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 63,886	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					6,972	7,114
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 6,972	7,114
Mortgage Loans on Real Estate, Interest Rate					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					6,194	6,330
Scheduled maturities, including balloon payments, on the non‑recourse debt obligations
Long-term Debt					$ 6,194	$ 6,330
Mortgage Loans on Real Estate, Interest Rate	[2]				4.50%
[1]	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 an $11.8 million portion and a $6.2 million portion of this mortgage note payable to fixed rates of 5.299% and 5.230%, respectively.
[2]	Interest rate is effective until March 2023 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 September 30, 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	1 Months Ended	3 Months Ended	9 Months Ended		13 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Common stock.
Shares issued and sold		9,947,500
Gross proceeds from issuance of shares			$ 658,110	$ 389,564
Net proceeds from issuance of common stock		$ 220,800
Offering costs paid			10,325	13,684
Selling stockholder costs				800
Declared dividends payable to common stockholders (in dollars)			$ 163,700	124,600
Common stock, par value per share			$ 0.01		$ 0.01	$ 0.01
Common stock outstanding			190,013,411		190,013,411	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		209,400
Offering costs paid			$ 800		$ 3,200
Private Placement
Common stock.
Shares issued and sold	18,621,674
Gross proceeds from issuance of shares	$ 377,100

Commitments and Contingencies (

Commitments and Contingencies (Details) - Commitments to fund improvements to real estate properties $ in Millions	Sep. 30, 2017USD ($)
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Real estate property improvement commitments	$ 108.7
Real estate property improvement commitments, in Next Twelve Months	$ 101

Fair Value of Financial Instr31

Fair Value of Financial Instruments (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Derivatives [Line items]
Derivative asset	$ 1,700,000	$ 1,600,000
Derivative liabilities	57,000	180,000
Level 2 Fair Value | Carrying value
Derivatives [Line items]
Long-term debt obligations	2,311,700,000	2,303,700,000
Level 2 Fair Value | Fair value
Derivatives [Line items]
Long-term debt obligations	$ 2,415,100,000	$ 2,353,600,000