BUFFETT’S BET SHOWS NOT ALL RETAIL REAL ESTATE IS EQUAL

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 took a 9.8 per cent 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 what it calls service properties: preschool facilities, health clubs, dine-in movie theatres 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 centres, and hunting, fishing and camping shops. “Store doesn’t compete on the beaten path,” said Haendel St. Juste, an analyst at

Mizuho Securities USA Inc. “They are targeting more experiential retail, trying to provide a buffer against risk.” Buffett has long expressed confidence in property investments to generate income for extended periods of time, and to provide a cushion should the dollar lose value.