Getty Realty (US:GTY)2025-04-24 20:15Property Portfolio - As of March 31, 2025, the company owned 1,088 properties and leased 31 properties from third-party landlords, totaling 1,119 properties across 42 states and Washington D.C.[152] - The weighted average remaining lease term as of March 31, 2025, was 10.0 years, with 1,115 properties leased under triple-net leases[154] - The company completed 32 redevelopment projects since the inception of its redevelopment program in 2015, enhancing property values[161] - The company had one property under active redevelopment as of March 31, 2025, with others in various stages of feasibility planning[162] Financial Performance - For the three months ended March 31, 2025, revenues from rental properties increased to $51.7 million, up from $47.2 million in the same period of 2024, representing a $4.5 million increase[170] - Funds from operations (FFO) for the three months ended March 31, 2025, were $31.7 million, compared to $29.6 million for the same period in 2024, reflecting an increase of $2.1 million[169] - Adjusted funds from operations (AFFO) for the three months ended March 31, 2025, were $33.8 million, compared to $31.4 million for the same period in 2024, indicating a growth of $2.4 million[169] - Rental income for the three months ended March 31, 2025, was $49,863,000, an increase of $5,807,000 (13.2%) compared to $44,056,000 for the same period in 2024[171] - Total revenues from rental properties for Q1 2025 were $51,706,000, up $4,491,000 (9.5%) from $47,215,000 in Q1 2024[171] Expenses and Liabilities - Interest expense increased to $11.7 million for the three months ended March 31, 2025, compared to $9.1 million in the same period of 2024, marking a $2.6 million rise[170] - Total property costs for Q1 2025 were $1,982,000, a decrease of $1,721,000 (46.4%) compared to $3,703,000 in Q1 2024[175] - Net cash flow provided by operating activities for Q1 2025 was $29,951,000, a decrease of $1,274,000 (4.1%) from $28,677,000 in Q1 2024[186] - The company removed $24.2 million of unknown reserve liabilities related to environmental obligations as of March 31, 2025[225] - The company maintains $11.8 million of unknown reserve liabilities for certain properties where Lookback Periods have expired[226] Debt and Financing - As of March 31, 2025, total debt amounts to $901.4 million, with significant components including a Credit Facility of $157.5 million maturing in January 2029 at an interest rate of 6.11%[202] - The company repaid its $150.0 million Term Loan in January 2025, recognizing approximately $0.9 million in unamortized debt issuance costs as interest expense[195] - The company issued $50.0 million of 5.70% Series T Guaranteed Senior Notes due February 22, 2032, to refinance existing debt[196] - The effective interest rate for $150.0 million borrowings under the Credit Facility, after accounting for interest rate swaps, is 6.13%[208] - An increase in market interest rates of 1.0% for 2025 would decrease the company's net income and cash flows by approximately $0.1 million[237] Environmental Obligations - The company is subject to various environmental regulations and has accrued liabilities based on estimated future costs for known remediation requirements[218] - As of March 31, 2025, the company accrued a total of $20.6 million for prospective environmental remediation obligations, consisting of $8.8 million of known reserve liabilities and $11.8 million of unknown reserve liabilities[228] - The company recorded a net accretion expense of $0.1 million for each of the three months ended March 31, 2025 and 2024, included in environmental expenses[229] - Capitalized asset retirement costs were $33.1 million as of March 31, 2025, including $25.0 million of known environmental obligations and $8.1 million of reserves for future environmental obligations[231] - The company believes that the fair value of future actual net expenditures for environmental liabilities could be substantially higher than currently recorded amounts[234] Capital Raising and Dividends - The company anticipates generating approximately $153.4 million in gross proceeds from 5.0 million shares of common stock subject to forward sales agreements[185] - The company completed a follow-on public offering of 4.0 million shares, expecting gross cash proceeds of approximately $121.2 million[203] - Regular quarterly dividends paid for Q1 2025 were $26.5 million, equating to $0.47 per share[214] - An at-the-market equity offering program was established with a potential aggregate sales price of up to $350.0 million[204] - During Q1 2025, the company settled 406,727 shares under the ATM program, realizing net proceeds of $11.0 million[210]