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]