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]