Tariffs potentially pushing us into a recession, slower GDP growth, and expected stagflation will likely weigh on businesses in the near term, even ones deemed recession resistant.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who e ...

NEW YORK, March 27, 2025 (GLOBE NEWSWIRE) -- Getty Realty Corp. (NYSE: GTY), a net lease REIT focused on convenience and automotive retail real estate, will release its financial results for the first quarter ended March 31, 2025 after the market closes on Wednesday, April 23, 2025. Getty Realty Corp. will host a conference call and webcast on Thursday, April 24, 2025, at 8:30 a.m. EDT. To participate in the call, please dial 1-877-423-9813, or 1-201-689-8573 for international participants, ten minutes befo ...

Core Insights - Getty Realty (NYSE: GTY) has outperformed the real estate market despite high-interest rates, indicating strong resilience and performance [1] - The company primarily leases convenience stores, car washes, and auto service centers, showcasing a diversified portfolio within the real estate investment trust (REIT) sector [1] Company Overview - Getty Realty is an American REIT that focuses on leasing properties related to essential services, which may provide stability in revenue generation [1] - The company manages a significant number of properties, contributing to its robust operational performance [1] Market Context - The real estate market is currently facing challenges due to elevated interest rates, which typically pressure property values and investment returns [1] - Despite these market conditions, Getty Realty has managed to perform better than its peers, highlighting its competitive advantage [1]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Conglomerates face management challenges, with successful examples being rare, such as Berkshire Hathaway compared to General Electric [2] Group 2 - The article emphasizes the importance of due diligence and independent conclusions for investors [4][5]

Property Portfolio - As of December 31, 2024, Getty Realty Corp. owned 1,085 properties and leased 33 properties, totaling 1,118 properties across 42 states and Washington, D.C.[18] - A significant portion of properties is concentrated in the Northeast and Mid-Atlantic regions, increasing risk of default on rent payments due to adverse regional conditions[85]. - New York and Massachusetts account for 18.5% and 9.2% of the total properties, respectively, with Texas contributing 8.9%[153]. - As of December 31, 2024, the company's portfolio included 1,118 properties, with 1,085 owned and 33 leased from third-party landlords[191]. Investment Activities - During the year ended December 31, 2024, Getty Realty invested $209.0 million in convenience and automotive retail properties, acquiring 31 express tunnel car washes, 17 convenience stores, 19 automotive service centers, and four drive-thru quick service restaurants[22]. - The company is pursuing redevelopment opportunities, which may create additional risks[66]. - The company expects to acquire new properties, which may create risks related to unknown deficiencies affecting value or revenue potential[115]. - The company’s investment strategy includes pursuing sale leaseback transactions and providing forward commitments for new-to-industry construction[198]. Financial Performance - Funds from Operations (FFO) for the year ended December 31, 2024, increased to $123,976,000 from $106,065,000 in 2023, representing a growth of 16.8%[213]. - Adjusted Funds from Operations (AFFO) rose to $130,793,000 in 2024, compared to $115,808,000 in 2023, marking an increase of 12.9%[213]. - Total revenues from rental properties for 2024 were $198,669,000, up from $180,488,000 in 2023, reflecting an increase of 10.1%[215]. - Rental income specifically increased to $186,124,000 in 2024, compared to $162,978,000 in 2023, a rise of 13.5%[216]. - The company reported net earnings of $71,064,000 for 2024, compared to $60,151,000 in 2023, an increase of 18.3%[213]. - The basic earnings per share increased to $1.26 in 2024 from $1.16 in 2023, a growth of 8.6%[213]. Capital Structure - The company raised $164.8 million in gross equity proceeds through the sale of 5.4 million common shares, including $121.2 million from a follow-on public offering and $43.6 million through its ATM Program[25]. - Getty Realty completed the private placement of $125.0 million in new senior unsecured notes, which includes $50.0 million of 5.52% senior notes due September 2029 and $75.0 million of 5.70% senior notes due February 2032[26]. - The principal sources of liquidity include cash flows from operations and proceeds from the offering of new debt or equity securities[109]. - The company relies on external sources of capital to maintain its REIT status and must distribute at least 90% of its net taxable income to stockholders[108]. Environmental and Regulatory Risks - A substantial portion of properties are convenience stores and gasoline stations, which may contain underground storage tanks (USTs) for hazardous substances, increasing environmental risk[75]. - The company is subject to various risks, including environmental regulations and competition in the real estate market[68]. - The company faces various lawsuits related to environmental matters, which could result in material losses affecting financial condition and stock price[82]. - Tenants are contractually responsible for compliance with environmental laws and remediation of contamination, but the company retains some responsibility for known contamination at lease commencement[77]. Operational Efficiency - The weighted average remaining lease term for properties leased under triple-net leases was 10.2 years as of December 31, 2024[29]. - The average remaining lease term for properties leased from third parties is approximately 7.9 years[154]. - Operating expenses for property costs decreased significantly from $23,789,000 in 2023 to $14,859,000 in 2024, a reduction of 37.8%[215]. - The company successfully decreased electric and natural gas consumption year-over-year at its corporate headquarters[51]. Cybersecurity - The company has developed a comprehensive cybersecurity risk management program, including an incident response plan and annual training for employees[137]. - The Audit Committee oversees the cybersecurity risk management program and receives quarterly reports on risks and incidents[144]. Market and Economic Risks - A significant portion of the company's revenues depends on the petroleum marketing industry, which is subject to economic fluctuations[71]. - Inflation could negatively affect financial condition and results of operations, particularly if rent increases do not keep pace with inflation[92]. - The company may not generate sufficient cash flow for dividends or debt service, impacting financial stability[87]. Management and Governance - The loss of key management personnel could have a material adverse effect on the company's business and stock price[102]. - The company has identified several critical accounting policies that require subjective judgments, which could lead to significant adjustments in financial statements[98].

C O N V E N I E N C E A U T O M O T I V E R E T A I L CORPORATE PROFILE and SUPPLEMENTAL INFORMATION FEBRUARY 2025 SAFE HARBOR STATEMENTS Forward Looking Statements Certain statements in this presentation constitute "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are statements that relate to management's expectations or beliefs, future plans and strategies, future financial performance and similar expressions concerning matters that are not histori ...

Financial Data and Key Metrics Changes - For Q4 2024, the company reported AFFO per share of $0.60, a 5.3% increase from $0.57 in Q4 2023 [32] - For the full year 2024, AFFO per share was $2.34, representing a 4% increase over $2.25 in 2023 [33] - Annualized base rent (ABR) as of December 31, 2024, was $197.8 million, a 14.5% increase from $172.8 million in 2023 [34] - Total G&A as a percentage of total revenue improved by 40 basis points to 12.4% in 2024 [34] - Net debt-to-EBITDA was 5.2 times, or 4.2 times considering unsettled forward equity [35] Business Line Data and Key Metrics Changes - The company invested $209 million in 78 properties in 2024, with an initial cash yield of 8.3% [22] - In Q4 2024, the company invested $76.4 million across 21 properties with an initial cash yield of 8.9% [21] - The investment activities were diversified, with convenience stores representing 41%, express tunnel car washes 33%, auto service centers 21%, and drive-thru QSRs 5% [23] Market Data and Key Metrics Changes - The company’s portfolio included 1,114 net lease properties with an occupancy rate of 99.7% [19] - 60% of annualized base rent came from the top 50 MSAs, and 76% from the top 100 MSAs [19] - The trailing twelve-month tenant rent coverage ratio was 2.6 times [19] Company Strategy and Development Direction - The company is focused on growth and diversification in the convenience and automotive retail sectors, having expanded its investment focus over the past five years [15] - The diversification strategy has increased total ABR by approximately 70% since 2019, with non-convenience and gas properties now accounting for 28% of total ABR [15] - The company aims to continue executing its growth and diversification plans while creating value for shareholders [17] Management's Comments on Operating Environment and Future Outlook - Management characterized 2024 as a challenging year for the transaction market but expressed confidence in the company’s strategic positioning and capital availability for acquisitions [10][14] - The company anticipates modest cap rate compression from the 8.3% yields achieved in 2024, despite ongoing market headwinds [26] - Management remains optimistic about the convenience and automotive retail sectors, citing strong consumer trends and the essential nature of the services provided by tenants [17] Other Important Information - The company raised $289 million of attractively priced capital in 2024 and has significant liquidity to fund future investments [10][13] - The company signed a contract for a $50 million portfolio transaction in the automotive service sector shortly after releasing earnings [14] - The company is revising its AFFO guidance for 2025 to a range of $2.38 to $2.41 per share due to potential impacts from the Zips Car Wash bankruptcy [44] Q&A Session Summary Question: Can you elaborate on the Zips situation? - Management indicated that 10 of the 12 sites leased to Zips were newly developed and expressed confidence in re-leasing them [51] Question: Are there concerns about other operators? - Management stated they maintain regular communication with tenants and are comfortable with their current car wash roster [56] Question: How will the capital plan work out in 2025? - The company plans to use debt proceeds to pay down the revolver and then utilize equity for acquisitions throughout the year [62] Question: What are the assumptions regarding the seven properties rejected by Zips? - Management expects to recapture a significant majority of the rent from the seven sites, assuming they will be released this year [70] Question: Can you provide details on the recent portfolio transaction? - The recent transaction was a direct sale-leaseback with a relationship developed through standard business processes, and management expects to continue pursuing similar transactions [72] Question: What is the expected mix of sale-leasebacks and development funding in the pipeline? - The pipeline includes both sale-leasebacks and development funding, with a heavier focus on development funding expected in 2025 [80]

Getty Realty (GTY) Q4 2024 Earnings Call February 13, 2025 08:30 AM ET Company Participants Joshua Dicker - EVP, General Counsel and SecretaryChristopher Constant - President and Chief Executive OfficerMark Olear - EVP and COOBrian Dickman - EVP, CFO and TreasurerMitch Germain - Managing Director - Real Estate ResearchFarrell Granath - Equity Research Associate Conference Call Participants Wesley Golladay - Senior Research AnalystUpal Rana - Director - Senior Equity Research Analyst Operator Good morning, a ...

分组1 - Getty Realty reported quarterly funds from operations (FFO) of $0.60 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, and up from $0.57 per share a year ago, representing an FFO surprise of 1.69% [1] - The company posted revenues of $52.24 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.59%, compared to year-ago revenues of $45.62 million [2] - Over the last four quarters, Getty Realty has surpassed consensus FFO estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has added about 2.1% since the beginning of the year, while the S&P 500 has gained 3.2%, indicating underperformance relative to the market [3] - The current consensus FFO estimate for the coming quarter is $0.59 on revenues of $52.34 million, and for the current fiscal year, it is $2.40 on revenues of $215.11 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 33% of over 250 Zacks industries, suggesting potential challenges for the sector [8]

Financial Performance - Net earnings for Q4 2024 were $0.39 per share, up from $0.30 per share in Q4 2023, while full year net earnings increased to $1.25 per share from $1.15 per share[4] - Funds From Operations (FFO) for Q4 2024 were $0.57 per share, compared to $0.51 per share in Q4 2023, and full year FFO rose to $2.21 per share from $2.06 per share[4] - Adjusted Funds From Operations (AFFO) for Q4 2024 were $0.60 per share, up from $0.57 per share in Q4 2023, with full year AFFO increasing to $2.34 per share from $2.25 per share[4] - Total revenues for the fourth quarter of 2024 were $53,016,000, an increase of 11.4% compared to $47,642,000 in the fourth quarter of 2023[47] - Revenues from rental properties reached $52,239,000 in Q4 2024, up from $45,615,000 in Q4 2023, reflecting a growth of 14.1%[47] - Net earnings for the twelve months ended December 31, 2024, were $71,064,000, compared to $60,151,000 for the same period in 2023, representing an increase of 17.9%[47] - Basic earnings per common share for the twelve months ended December 31, 2024, were $1.26, compared to $1.16 for the same period in 2023, reflecting a growth of 8.6%[47] - Operating income for the twelve months ended December 31, 2024, was $109,770,000, up from $91,147,000 in 2023, indicating a growth of 20.5%[47] - Net earnings for Q4 2024 increased to $22.295 million, up from $16.512 million in Q4 2023, representing a growth of 35.5%[50] - Funds from operations (FFO) for Q4 2024 reached $32.470 million, compared to $27.362 million in Q4 2023, marking a 18.5% increase[50] - Adjusted Funds from operations (AFFO) for Q4 2024 were $34.031 million, up from $30.720 million in Q4 2023, reflecting an increase of 10.5%[50] Investment and Capital Management - The company invested $76.4 million across 21 properties in Q4 2024 at an initial cash yield of 8.9%, and $209.0 million across 78 properties for the full year at an initial cash yield of 8.3%[4][16] - The company raised approximately $290 million in 2024 and has nearly $240 million of committed equity and debt capital available for acquisitions in 2025[3] - The company has a committed investment pipeline of over $35.0 million for the development and/or acquisition of 17 properties expected to be funded over the next 9-12 months[17] Debt and Liabilities - As of December 31, 2024, total outstanding indebtedness was $907.5 million, with a weighted average interest rate of 3.9% on senior unsecured notes[21] - The Company’s total liabilities rose to $1,011,597,000 in 2024, up from $866,753,000 in 2023, an increase of 16.7%[44] Cash and Assets - Total assets increased to $1,973,680,000 as of December 31, 2024, compared to $1,822,305,000 at the end of 2023, marking a growth of 8.3%[44] - The Company’s cash and cash equivalents increased to $9,484,000 in 2024, compared to $3,307,000 in 2023, a significant rise of 187.5%[44] Guidance and Adjustments - The company adjusted its 2025 AFFO guidance to a range of $2.38 to $2.41 per diluted share, down from the initial guidance of $2.40 to $2.42 per diluted share[30] - The Company reported an AFFO guidance for 2024, indicating a focus on sustainable core operating performance[41] Depreciation and Other Adjustments - The company reported a total depreciation and amortization of real estate assets of $15.000 million for Q4 2024, up from $12.716 million in Q4 2023, an increase of 18.0%[50] - The total other adjustments for Q4 2024 amounted to $2.615 million, compared to $1.690 million in Q4 2023, reflecting a 54.8% increase[50] - The company experienced impairments of $1.499 million in Q4 2024, slightly up from $1.273 million in Q4 2023[50] - Total revenue recognition adjustments for Q4 2024 resulted in a negative impact of $1.147 million, contrasting with a positive adjustment of $1.632 million in Q4 2023[50] - The company’s total revenue recognition adjustments for the twelve months ended December 31, 2024, were negative $1.692 million, compared to positive $2.012 million for the same period in 2023[50]