Buffett’s Bet on Store Capital Shows Not All Retail Real Estate Is Equal
- Berkshire Hathaway takes 9.8% stake in single-tenant REIT
- Landlord has ‘experiential retail’ such as gyms, theaters
This article is for subscribers only.
Warren Buffett is betting that some types of brick-and-mortar real estate will hold up better than others in the age of Amazon.
His Berkshire Hathaway Inc. took a 9.8 percent stake in Store Capital Corp., sending shares of the real estate investment trust surging Monday. Unlike other retail landlords that have come under pressure as consumers shop more online, Store focuses on service properties: preschool facilities, health clubs, dine-in movie theaters and pet-care sites. Less than a fifth of its portfolio is invested in traditional retail -- and even those it calls “internet resistant,” including furniture stores, hobby and craft centers, and hunting, fishing and camping shops.