Financial Data and Key Metrics Changes - Getty Realty reported an annualized base rent growth of nearly 12% in 2025, with AFFO per share increasing by 5% in Q4 and 3.8% for the full year, reaching the high end of the earnings guidance [6][20] - For Q4 2025, AFFO per share was $0.63, FFO was $0.64, and net income was $0.45 per share, while for the full year, AFFO per share was $20.43, FFO was $20.34, and net income was $1.35 per share [20][21] - The G&A ratio, excluding stock-based compensation and non-recurring costs, was 9.5% for 2025, showing a 10 basis point improvement over 2024 [22] Business Line Data and Key Metrics Changes - The company invested approximately $270 million in 2025, with a focus on diversifying its portfolio, including a $100 million sale-leaseback for a convenience store portfolio [7][8] - Investments in the collision repair sector amounted to $82.5 million for the construction of new collision centers, with expectations for openings in 2026 [8] - The company also invested nearly $40 million in drive-through quick service restaurants, representing about 15% of its investment activity for the year [9] Market Data and Key Metrics Changes - Over 75% of Getty's 2025 investment activity was concentrated in the top 100 markets in the U.S., with increased exposure to cities like Atlanta, Dallas, and Houston [9] - The portfolio included 1,169 net lease properties with a 99.7% occupancy rate and a weighted average lease term of 9.9 years [13] Company Strategy and Development Direction - Getty Realty aims to accelerate its growth trajectory by expanding relationships and refining processes through data-driven analysis [11] - The company is focused on diversifying its portfolio, with nearly 30% of annual base rent now derived from non-convenience and gas properties [19] - The management transition, with RJ Ryan succeeding Mark Olear as Chief Investment Officer, is expected to support the execution of growth plans [12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the investment pipeline, with $100 million under contract and a strong start to the year [30] - The company anticipates maintaining a healthy investment pipeline, with expectations for continued sourcing of actionable opportunities [10] - Management noted that the tenant health remains strong, with a portfolio occupancy of 99.7% and full rent collections [55] Other Important Information - The company has a pro forma liquidity position of over $500 million, which includes cash and availability under its revolving credit facility [25] - The company reaffirmed its AFFO per share guidance for 2026 in the range of $20.48-$20.50, excluding prospective investment activities [25] Q&A Session Summary Question: Can you provide more detail on the $100 million investment pipeline? - The CFO indicated that about 80% of the pipeline is focused on auto service properties, with the majority being development funding [29] Question: Do you think you can do more investment volume this year relative to last year? - Management expressed optimism about the current pipeline and noted that they are already above 25% of last year's underwriting volume [30][31] Question: Can you speak about the cadence of the $100 million? - The CFO explained that about 20% of the pipeline consists of regular acquisitions expected to close in 60-90 days, while development funding will be deployed over the next 12 months [34] Question: What is driving the increased emphasis to potentially sell? - Management noted that the team is actively sourcing opportunities and that the selling pool appears more active, contributing to the increased emphasis [39][40] Question: Can you provide color on the dispositions of the 7 properties sold in Q4? - The CFO mentioned that some properties were sold back to existing tenants, and others were disposed of for tactical reasons [63][64]

Financial Data and Key Metrics Changes - Getty Realty reported an annualized base rent (ABR) of approximately $199 million, reflecting an increase of 11.2% compared to $179 million in the prior year [7][18] - The company generated adjusted funds from operations (AFFO) per share of $0.59, marking a 3.5% increase from the previous year's quarterly result [17][23] - General and administrative expenses (G&A) as a percentage of total revenue improved by 40 basis points to 13.2% [18] Business Line Data and Key Metrics Changes - The convenience and automotive retail sectors showed resilience, with strong performance from tenants despite macroeconomic challenges [7][8] - Rent coverage for convenience store assets remained consistent, while car wash sector rent coverage increased [8] - The company invested $10.9 million across six properties with an initial cash yield of 7.8% during the quarter [13] Market Data and Key Metrics Changes - The portfolio included 1,115 net leased properties with an occupancy rate of 99.7% and a weighted average lease term of ten years [12] - Approximately 61% of ABR came from the top 50 metropolitan statistical areas (MSAs) [12] Company Strategy and Development Direction - Getty Realty remains committed to a disciplined acquisition strategy, focusing on high-density metro areas and creditworthy operators under long-term leases [11] - The company aims to increase its investment pipeline, which currently exceeds $110 million, with a focus on development funding transactions [10][15] - The strategic focus includes diversifying into new sectors such as quick-service restaurants (QSR) while maintaining a small percentage of the overall portfolio [75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the macroeconomic uncertainty affecting transaction and capital markets but expressed confidence in sourcing opportunities that align with their investment thesis [10][23] - The company reaffirmed its AFFO per share guidance for 2025, anticipating a range of $2.38 to $2.41 [23] Other Important Information - The company has no debt maturities until June 2028, with a weighted average debt maturity of 5.4 years and a weighted average cost of debt at 4.5% [21][22] - The company has received all rent due through April 2025 from Zips, which filed for bankruptcy in February [22] Q&A Session Summary Question: Can you describe the cadence of capital deployment in the next nine to twelve months for the $110 million investment pipeline? - Management indicated that about two-thirds of the pipeline consists of development funding, typically taking nine to twelve months from signing to completion [25][26] Question: Given the macro uncertainty, what is the current development demand? - Management noted ongoing discussions with operators looking to accelerate new store growth programs in 2025, but clarity is still needed as the year progresses [27] Question: How should we think about the timing of ZiPS rent income hitting the income statement? - Management expects the resolution of ZiPS to be completed by the end of the second quarter, with continuity of rent for sites remaining with ZiPS [36][37] Question: What impact have tariffs had on the existing tenant base? - Management stated that the impact of tariffs is still uncertain, but discussions with tenants are ongoing to assess potential effects [41] Question: What is the credit profile of new car wash tenants? - Management confirmed that the new tenants are established operators familiar with the markets of the properties [49][50] Question: How does the outcome of the ZiPS situation compare to underwriting new investments? - Management expressed confidence in their underwriting process, stating that the recovery from the ZiPS event does not alter their approach to future investments [80][82]