Financial Data and Key Metrics Changes - Getty Realty Corp. reported a year-over-year growth of over 10% in annualized base rent and a 5.1% increase in quarterly AFFO per share [5][6] - AFFO per share for Q3 2025 was $0.62, reflecting a 5.1% increase compared to Q3 2024, while year-to-date AFFO per share was $1.80, up 3.5% from the prior year [18][19] - The company increased its full-year 2025 AFFO per share guidance to a range of $2.42 to $2.43 from the previous guidance of $2.40 to $2.41 [22] Business Line Data and Key Metrics Changes - The company invested over $235 million year-to-date, surpassing its full-year activity in 2024, with significant investments in the drive-through quick service restaurant (QSR) segment [7][8] - The leased portfolio included 1,156 net-leased properties with an occupancy rate of 99.8% and a weighted average lease term of 9.9 years [14] - The trailing 12-month tenant rent coverage ratio remained consistent at 2.6 times, indicating stable performance across the portfolio [7][14] Market Data and Key Metrics Changes - 61% of annualized base rent comes from the top 50 metropolitan statistical areas (MSAs), and 77% from the top 100 MSAs [14] - The company has diversified its tenant base by transacting with 10 new tenants in 2025 [8] Company Strategy and Development Direction - Getty Realty Corp. aims to acquire well-located convenience and automotive retail properties leased to growing regional and national operators, leveraging its underwriting expertise [11] - The company is focused on expanding its investment thesis and enhancing its knowledge of the convenience store sector, particularly in travel centers [10][12] - The board approved a 3.2% increase in the recurring quarterly dividend to $0.485 per share, marking the 12th consecutive year of dividend growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's platform and its ability to deliver strong financial results despite market disruptions [11] - The company remains focused on balancing capital return to shareholders through dividends while retaining free cash flow for growth [22] - Management noted that the current economic pressures favor the quick service restaurant sector, which aligns with the company's investment strategy [25] Other Important Information - The company has a committed investment pipeline of over $75 million, which can be funded without raising additional capital [8] - The weighted average cost of debt was reported at 4.5%, with no debt maturities until 2028 [19][20] Q&A Session Summary Question: Thoughts on the health of the middle to lower-end consumer regarding QSR acquisitions - Management noted that the quick service restaurant concept aligns well with macroeconomic pressures, offering affordable price points and convenience [25] Question: Details on environmental expense adjustments - Management explained that adjustments were made due to alleviated risks from environmental contamination at legacy sites, with no significant concerns moving forward [26] Question: Timeline for the Now & Forever acquisition - The acquisition process took less than six months, with prior relationship building in the Houston market [29] Question: Funding plan for upcoming transactions - Management indicated that funding would come from existing liquidity, including forward equity settlements and cash flow generation [31] Question: Sources of debt and pricing - Management highlighted the potential to term out revolver balances, with current pricing for new debt in the high fives [35] Question: Dividend increase rationale - The board's decision to retain more cash internally was based on the need for capital to support growth and scale the business [36] Question: Sourcing future travel center transactions - Management emphasized relationship building and market presence as key strategies for sourcing future acquisitions in the travel center sector [40][41] Question: Update on bad debt and guidance - Management reported no significant rent collection issues this year, with typical bad debt levels factored into updated guidance [43] Question: Requests to substitute assets in master leases - Management indicated it is too early to assess specific requests, but expects most profitable leases to remain in the portfolio long-term [48] Question: Underwriting differences for travel centers - Management noted that travel centers have a different risk profile, with a focus on total value and broader service offerings [52]

Financial Data and Key Metrics Changes - Getty Realty reported over 10% year-over-year growth in annualized base rent and a 5.1% increase in quarterly AFFO per share for Q3 2025 [5][6] - AFFO per share for Q3 2025 was $0.62, a 5.1% increase compared to Q3 2024, and for the nine months ended September 30, AFFO per share was $1.80, up 3.5% year-over-year [18][19] - The company increased its full-year 2025 AFFO per share guidance to a range of $2.42-$2.43 from the previous guidance of $2.40-$2.41 [22] Business Line Data and Key Metrics Changes - The company invested over $235 million year-to-date, exceeding its full-year activity in 2024, with a focus on drive-through QSR segment, acquiring more than 25 properties [7][8] - The leased portfolio included 1,156 net-leased properties with an occupancy rate of 99.8% and a weighted average lease term of 9.9 years [14] - The trailing 12-month tenant rent coverage ratio was consistent at 2.6x, reflecting steady performance from the convenience store portfolio [7][14] Market Data and Key Metrics Changes - 61% of annualized base rent comes from the top 50 MSAs, and 77% from the top 100 MSAs, indicating a strong market presence [14] - The company has diversified its tenant base by transacting with 10 new tenants in 2025 [8] Company Strategy and Development Direction - Getty Realty is focused on acquiring well-located convenience and automotive retail properties leased to growing regional and national operators [11] - The company aims to leverage its underwriting expertise and real estate selection to support investment decisions and mitigate credit risks [11] - The board approved a 3.2% increase in the recurring quarterly dividend to $0.485 per share, marking the 12th consecutive year of dividend growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the platform built over the years, highlighting the ability to deliver strong financial results amid market disruptions [11] - The company remains focused on scaling its operations and retaining capital for growth while balancing shareholder returns through dividends [22] Other Important Information - The company has a committed investment pipeline of over $75 million under contract, which can be funded without raising additional capital [8][21] - The weighted average cost of debt was 4.5%, with no debt maturities until 2028, indicating a strong balance sheet [19][20] Q&A Session Summary Question: Thoughts on the health of the middle to lower-end consumer regarding drive-through QSRs - Management noted gaining momentum in the quick service restaurant sector, which aligns with macroeconomic pressures and consumer preferences [25] Question: Details on environmental expense adjustments - Management clarified that adjustments were due to alleviated risks at legacy sites, resulting in the removal of certain reserves [26] Question: Timeline for engagement with Now & Forever acquisition - The acquisition process took less than six months, with varying timelines for different transactions based on relationship building [28][29] Question: Funding plan for upcoming transactions - Management discussed typical funding sources, including forward equity and revolver availability, to manage leverage [30][31] Question: Sources of debt and pricing - Management indicated that the private placement market would likely be the best source for new debt, with current pricing in the high fives [35] Question: Dividend increase rationale - The board's decision to retain more cash internally was to support growth and scale the business while still aligning dividend growth with earnings [36] Question: Sourcing future travel center transactions - Management emphasized relationship building and market presence as key to sourcing future acquisitions in the travel center sector [40][41] Question: Update on bad debt - Management reported no significant rent collection issues this year, maintaining a typical bad debt level [43] Question: Tenant health and lease substitutions - Management noted it is too early to assess requests for asset substitutions in master leases, expecting most properties to remain long-term [48] Question: Underwriting differences for travel centers - Management highlighted that travel centers have a different risk profile, with a focus on total value and broader service offerings [52] Question: Impact of cap rate discussions - Management indicated no significant movement in cap rates recently, suggesting a longer-term shift may be needed to see impacts [58] Question: Car wash industry performance - Management reported positive trends in car wash rent coverage, with new builds stabilizing ahead of schedule [61][62]

Financial Data and Key Metrics Changes - Getty Realty reported over 10% year-over-year growth in annualized base rent and a 5.1% increase in quarterly AFFO per share [6][18] - AFFO per share for Q3 2025 was $0.62, reflecting a 5.1% increase compared to Q3 2024 [18] - For the nine months ended September 30, AFFO per share was $1.80, an increase of 3.5% compared to the prior year period [18] Business Line Data and Key Metrics Changes - The company invested more than $235 million year-to-date, exceeding full-year activity in 2024, with a focus on drive-thru QSR segment [8][10] - The portfolio included 1,156 net leased properties with an occupancy rate of 99.8% and a weighted average lease term of 9.9 years [13] - The trailing twelve-month tenant rent coverage ratio was consistent at 2.6 times [15] Market Data and Key Metrics Changes - 61% of annualized base rent came from the top 50 MSAs, and 77% from the top 100 MSAs [13] - The company has diversified its tenant base by transacting with 10 new tenants in 2025 [8] Company Strategy and Development Direction - Getty Realty aims to acquire well-located convenience and automotive retail properties leased to growing regional and national operators [11] - The company is focused on leveraging its underwriting expertise and real estate selection to support investment decisions and mitigate credit risks [11] - The Board approved a 3.2% increase in the recurring quarterly dividend to $0.485 per share, marking the twelfth consecutive year of dividend growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the platform built over the years, highlighting the ability to deliver strong financial results amid market disruptions [11] - The company is increasing its full-year 2025 AFFO per share guidance to a range of $2.42 to $2.43, up from the previous guidance of $2.40 to $2.41 [22] Other Important Information - The company has no debt maturities until 2028, with a weighted average debt maturity of 4.8 years and a weighted average cost of debt at 4.5% [20] - At quarter end, the company had approximately $375 million in total liquidity, including unsettled forward equity and cash on the balance sheet [21] Q&A Session Summary Question: Thoughts on the health of middle to lower-end consumers regarding drive-thru QSRs - Management noted gaining momentum in the quick-service restaurant sector, which aligns with macroeconomic pressures and offers quality food at competitive price points [24][25] Question: Details on 3Q's environmental expense adjustments - Management explained that previous environmental risks have been alleviated, leading to the removal of certain reserves on the balance sheet [26][27] Question: Engagement timeline with Now and Forever acquisition - The transaction took less than six months, but relationship building can vary from months to years depending on the operator [30][31] Question: Funding plan for upcoming transactions - Management indicated that they typically fund investment activity on the line and settle forward equity towards the end of the quarter to manage leverage [32][33] Question: Update on bad debt and guidance - There have been no rent collection issues this year, with typical bad debt levels around 15 basis points [47] Question: Uptick in requests to substitute assets in master leases - Management stated there has not been an uptick in such requests at this time, with expectations for most profitable leases to remain in the portfolio long-term [49] Question: Underwriting differences for travel centers - Management highlighted that travel centers have a different risk profile, with larger land components and a focus on attracting both professional and recreational drivers [54][56]

Financial Data and Key Metrics Changes - Getty Realty Corp. reported a year-over-year growth of over 10% in annualized base rent and a 5.1% increase in quarterly AFFO per share for Q3 2025 [5][6] - AFFO per share for Q3 2025 was $0.62, reflecting a 5.1% increase compared to Q3 2024, while year-to-date AFFO per share was $1.80, up 3.5% from the prior year [18][19] - The company achieved a trailing 12-month tenant rent coverage ratio of 2.6 times, consistent with previous periods [6][13] Business Line Data and Key Metrics Changes - The company invested over $235 million year-to-date, surpassing its full-year activity in 2024, with significant acquisitions in the drive-through quick service restaurant (QSR) segment [6][7] - In Q3 2025, Getty Realty acquired 15 drive-through QSRs for $18.4 million, five convenience stores for $19.4 million, and two express tunnel car washes for $11.1 million [14][16] Market Data and Key Metrics Changes - The portfolio included 1,156 net-leased properties with an occupancy rate of 99.8% and a weighted average lease term of 9.9 years [13] - 61% of annualized base rent came from the top 50 metropolitan statistical areas (MSAs), and 77% from the top 100 MSAs [13] Company Strategy and Development Direction - The company is focused on acquiring well-located convenience and automotive retail properties leased to growing regional and national operators, leveraging its underwriting expertise [11][12] - Getty Realty aims to diversify its tenant base and expand its investment activities, particularly in the convenience store and automotive retail sectors [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's platform and its ability to deliver strong financial results despite market disruptions [11] - The company increased its full-year 2025 AFFO per share guidance to a range of $2.42 to $2.43, up from the previous guidance of $2.40 to $2.41 [21] Other Important Information - The board approved a 3.2% increase in the recurring quarterly dividend to $0.485 per share, marking the 12th consecutive year of dividend growth [12] - The company has a strong capital position with over $375 million in total liquidity at quarter-end, including unsettled forward equity and cash [20] Q&A Session Summary Question: Thoughts on the health of the middle to lower-end consumer regarding drive-through QSRs - Management noted gaining momentum in the quick service restaurant sector, aligning with macroeconomic pressures and consumer preferences [25] Question: Details on environmental expense adjustments - Management explained that adjustments were due to alleviated risks at legacy sites, resulting in the removal of certain reserves [26] Question: Timeline for engagement with Now & Forever acquisition - The acquisition process took less than six months, with varying timelines for different transactions based on relationship building [27] Question: Funding plan for upcoming transactions - Management discussed typical funding sources, including forward equity and revolver availability, to manage leverage [28] Question: Best source of debt and pricing - Management indicated that private placement markets would likely be the source for new debt, with current pricing around 5.9% for a new 10-year [32] Question: Dividend increase rationale - The board's decision to retain more cash internally was based on the need for capital to support growth and scale the business [33] Question: Sourcing travel center transactions - Management highlighted relationship building and market presence as key strategies for sourcing travel center acquisitions [35] Question: Update on bad debt - Management reported no significant rent collection issues this year, with typical bad debt levels [38] Question: Requests to substitute assets in master leases - Management indicated it is too early to assess requests for asset substitutions, expecting most profitable leases to remain [40] Question: Underwriting differences for travel centers - Management noted that travel centers have a different risk profile, with a focus on total value and broader service offerings [44]

Financial Performance - Q3 2025 Adjusted Funds From Operations (AFFO) increased by 8.7% to $36.1 million[10] - Q3 2025 AFFO per share increased by 5.1% to $0.62[10] - Year-to-date (YTD) AFFO increased by 7.3% to $103.9 million[14] - YTD AFFO per share increased by 3.4% to $1.80[14] Portfolio Metrics - The company invested $237 million at a 7.9% initial cash yield YTD[14] - The portfolio has a weighted average lease term (WALT) of 9.9 years[14] - The portfolio is 99.8% occupied[14] - Rent collections YTD stand at 99.9%[14] - Tenant rent coverage is 2.6x[14] Capital Structure and Liquidity - Net debt to EBITDA is 5.1x (4.6x pro forma for unsettled forward equity)[14] - The company has more than $375 million in total liquidity, including $5 million in cash, $113 million in unsettled forward equity, and $260 million in revolver capacity[14] - 84% of Annual Base Rent (ABR) is derived from unitary leases[20]

Core Viewpoint - Getty Realty (NYSE: GTY) has underperformed in the past year, with a loss of approximately 15% in value, despite steady operational results [1] Company Performance - The company has reported consistent results, but concerns have risen regarding the credit quality of some tenants [1] - Getty Realty's business model is heavily reliant on capital markets, which adds to the uncertainty surrounding its performance [1]

Core Insights - Getty Realty reported revenue of $55.16 million for the quarter ended September 2025, reflecting a year-over-year increase of 9.3% and a surprise of +3% over the Zacks Consensus Estimate of $53.55 million [1] - Earnings per share (EPS) for the quarter was $0.62, significantly higher than $0.27 in the same quarter last year, with an EPS surprise of +1.64% compared to the consensus estimate of $0.61 [1] Financial Performance - Revenue from rental properties was $55.16 million, representing a 9.2% increase year-over-year and exceeding the average estimate of $53.55 million by three analysts [4] - Interest on notes and mortgages receivable was reported at $0.43 million, which is a decline of 55.6% compared to the year-ago quarter and below the estimated $0.54 million [4] - Net earnings per share (diluted) was $0.40, surpassing the average estimate of $0.30 by three analysts [4] Market Performance - Over the past month, shares of Getty Realty have returned +0.8%, while the Zacks S&P 500 composite has changed by +1.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

分组1 - Getty Realty reported quarterly funds from operations (FFO) of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.59 per share a year ago, representing an FFO surprise of +1.64% [1] - The company posted revenues of $55.16 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.00%, compared to year-ago revenues of $50.49 million [2] - Over the last four quarters, Getty Realty has surpassed consensus FFO estimates two times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 8.7% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The current consensus FFO estimate for the coming quarter is $0.61 on revenues of $54.11 million, and for the current fiscal year, it is $2.41 on revenues of $212.1 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 31% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Getty Realty Corp. reported net earnings of $23.3 million for Q3 2025, an increase from $15.3 million in Q3 2024, resulting in net earnings per share of $0.40, up from $0.27[5]. - Funds From Operations (FFO) for Q3 2025 were $38.7 million, or $0.66 per share, compared to $31.4 million, or $0.56 per share in Q3 2024[6]. - Adjusted Funds From Operations (AFFO) increased to $36.1 million, or $0.62 per share, from $33.2 million, or $0.59 per share year-over-year[6]. - Revenues from rental properties increased to $55,159,000 for the three months ended September 30, 2025, compared to $50,494,000 for the same period in 2024, representing a growth of 3.3%[42]. - Total revenues for the nine months ended September 30, 2025, reached $161,178,000, up from $150,375,000 in 2024, indicating an increase of 7.9%[42]. - Net earnings for the three months ended September 30, 2025, were $23,348,000, compared to $15,335,000 in 2024, reflecting a significant increase of 52.3%[42]. - Basic net earnings per common share rose to $0.40 for the three months ended September 30, 2025, compared to $0.27 in 2024, marking an increase of 48.1%[42]. - Net earnings for Q3 2025 were $23.35 million, up from $15.34 million in Q3 2024, representing a 52.5% increase[44]. - Funds from operations (FFO) increased to $38.70 million in Q3 2025 from $31.44 million in Q3 2024, a growth of 23.1%[44]. - Adjusted Funds from operations (AFFO) rose to $36.10 million in Q3 2025 compared to $33.16 million in Q3 2024, marking an increase of 8.8%[44]. - Basic net earnings per share for Q3 2025 were $0.40, up from $0.27 in Q3 2024, reflecting a 48.1% increase[44]. Investment Activity - The company completed $237 million in investment activity year-to-date, with a committed investment pipeline exceeding $75 million for the acquisition and development of 22 properties[3][16]. - The company invested $56.3 million in Q3 2025 at an 8.0% initial cash yield, with an additional $103.4 million invested post-quarter at a 7.8% yield[15]. Portfolio and Assets - Getty Realty's portfolio included 1,160 properties across 44 states and Washington, D.C., as of September 30, 2025[28]. - The company's total assets as of September 30, 2025, amounted to $2,055,875,000, an increase from $1,973,680,000 as of December 31, 2024, representing a growth of 4.2%[40]. - Total liabilities increased to $1,043,518,000 as of September 30, 2025, compared to $1,011,597,000 at the end of 2024, reflecting a rise of 3.1%[40]. - The company reported a total stockholders' equity of $1,012,357,000 as of September 30, 2025, up from $962,083,000 at the end of 2024, indicating an increase of 5.2%[40]. Guidance and Future Outlook - The company increased its 2025 AFFO guidance to a range of $2.42 to $2.43 per diluted share, up from the previous range of $2.40 to $2.41[23]. - Forward-looking statements include guidance for 2024 AFFO per share, reflecting management's expectations and assumptions[36]. Dispositions and Adjustments - The company sold one property for $1.8 million in Q3 2025, recording a gain of $0.3 million, and six properties for $5.5 million year-to-date with a total gain of $2.2 million[19]. - The company reported a gain on dispositions of real estate of $338,000 for the three months ended September 30, 2025, compared to a loss of $1,471,000 in 2024[42]. - The company reported a total revenue recognition adjustment of $(1.22 million) for Q3 2025, compared to $(0.22 million) in Q3 2024[44]. - Environmental adjustments resulted in a total of $(3.53 million) for Q3 2025, compared to $0.02 million in Q3 2024[44]. - The company recorded impairments of $0.65 million in Q3 2025, slightly down from $0.68 million in Q3 2024[44]. Operational Performance - The company emphasizes the importance of AFFO as a measure of core operating performance, which excludes various non-recurring items[35]. - The weighted average common shares outstanding increased to 56,693 in Q3 2025 from 54,249 in Q3 2024[44]. - Total revenue for the nine months ended September 30, 2025, was $52.15 million, compared to $48.77 million for the same period in 2024, an increase of 6.1%[44].

Core Insights - Getty Realty Corp. reported a strong third quarter performance, reflecting effective execution of its investment strategy and stable rental income from convenience and automotive retail tenants [4][2] - The company has increased its earnings guidance for the full year 2025, indicating confidence in continued growth and value creation for shareholders [4][24] Financial Performance - For the three months ended September 30, 2025, net earnings were $23.3 million, or $0.40 per share, compared to $15.3 million, or $0.27 per share for the same period in 2024, representing a 52.5% increase in net earnings [6][41] - Funds From Operations (FFO) for the third quarter were $38.7 million, or $0.66 per share, up from $31.4 million, or $0.56 per share in the prior year [6][41] - Adjusted Funds From Operations (AFFO) increased to $36.1 million, or $0.62 per share, compared to $33.2 million, or $0.59 per share in the same quarter of 2024 [6][41] Revenue and Income - Rental income for the third quarter was $53.5 million, an increase of 12.3% from $47.6 million in the same quarter of 2024 [7][9] - Total revenues for the quarter reached $55.6 million, compared to $51.5 million in the prior year, marking a 7.9% increase [41] Investment Activity - Year-to-date, the company has completed $237 million in investment activity, with an initial cash yield of 7.9% [4][16] - The company has a committed investment pipeline exceeding $75 million for the development and acquisition of 22 properties, expected to be funded over the next 9-12 months [17][4] Portfolio and Property Management - As of September 30, 2025, Getty Realty's portfolio included 1,160 properties across 44 states and Washington, D.C. [29] - The company sold one property for $1.8 million during the quarter, with a gain of $0.3 million, and six properties for $5.5 million year-to-date, recording a total gain of $2.2 million [19][20] Balance Sheet and Capital Markets - As of September 30, 2025, total outstanding indebtedness was $940 million, with $750 million in senior unsecured notes at a weighted average interest rate of 4.1% [20][21] - The company raised approximately $32.5 million from the settlement of 1.2 million shares of common stock during the quarter [22][23] Guidance - The company has raised its 2025 AFFO guidance to a range of $2.42 to $2.43 per diluted share, up from the previous range of $2.40 to $2.41 [24]