In a surprising move earlier this month, the real estate investment trust (REIT) STORE Capital (NYSE: STOR) announced that it had agreed to be acquired by the large real estate company GIC and Oak Street, a division of Blue Owl Capital . The deal values STORE at $14 billion and will pay shareholders $32.25 per share in cash, which is a more-than-20% premium over what STORE traded at after market close on Sept. 14.
STORE Capital is the only REIT in the large equities portfolio of Berkshire Hathaway , the conglomerate run by the legendary investor Warren Buffett. Berkshire owns slightly less than 7 million shares of STORE, which accounts for just 0.1% of the portfolio.
While one might think that shareholders would be happy to see a 20% premium, STORE's stock is still below pre-pandemic levels even after the post-announcement pop and is only up about 24.4% over the last five years. What will Buffett and other shareholders do next?
For further details see:
Warren Buffett's Favorite REIT Is Coming Off the Market. What's Next?