Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (October 2018)
22 slides from Getty Realty's investor presentation, Oct 24, 2018
Slide 1: Investor Presentation
Investor Presentation Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 1 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 perf
Slide 3: Getty Realty at a Glance
Getty Realty at a Glance Net Lease REIT Specializing in Convenience Store & Gasoline Station Properties ⁽¹⁾ 1 Track Record of Partnering with Tenants in a Healthy and Consolidating Retail Sector Multiple Growth Channels Flexible / Low Leverage Balance Sheet Supports Growth $1.5bn Enterprise Value GT
Slide 4: National Net Lease Portfolio
National Net Lease Portfolio 938 Properties Across 30 States 9%+ $32mm Mortgage Portfolio $119mm ABR ⁽¹⁾ 99% Occupancy ⁽³⁾ 9% AFFO / Share CAGR ⁽²⁾ 61% ABR in Top 25 MSAs ~11 years Weighted Avg. Lease Term ⁽⁴⁾ 2.0x Unit Level Rent Coverage ⁽⁴⁾ 73% On Corner Locations Based on GAAP annualized base re
Slide 5: Convenience Store and Gasoline Station Properties
Convenience Store and Gasoline Station Properties Stable, yet growing sector Institutional quality tenant base Urban Infill Markets Densely populated areas High barriers to entry Limited new development Prime locations and corners Mature transportation grid Convenient ingress and egress High Growth
Slide 6: Diversified Tenant Base with High Quality Brands
Rank Tenant % of ABR Public Company 1 Global 16% ü 2 United Oil 15% 3 Chestnut Petroleum 9% 4 GPM Investments 9% 5 Empire Petroleum Partners 8% 6 Nouria Energy 7% 7 Cross America Partners 6% ü 8 Applegreen 6% ü 9 Capitol Petroleum Group 4% 10 BP 2% ü 11 Aloha 2% ü Diversified Tenant Base with High Q
Slide 7: Located in High Density Metropolitan Markets
Located in High Density Metropolitan Markets Based on cash annualized base rent (ABR), as of September 30, 2018. Core Based Statistical Areas as defined by United States Office of Management and Budget. Getty’s Top 20 Markets (1) (2) Rank Market % of ABR Top 25 Market (2) 11 Richmond, VA 2% 12 River
Slide 8: Stable Long-Term Lease Structure
Stable Long-Term Lease Structure Sustainable cash flows supported by long-term triple-net leases Typical annual rent escalations of 1.0% - 2.0% and rent coverage ratios of 1.5x – 2.0x Unitary lease portfolio weighted average rent escalations of 1.6% and rental coverage of 2.0x ⁽¹⁾ Increasing tenant
Slide 9: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation Includes branded QSRs and convenience stores with unbranded fresh food offerings. Includes non-gas automotive-related retailers, free-standing QSRs and regional retailers. Portfolio of well-positioned properties at prominent corner locations Key Attributes Dri
Slide 10: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets1 (515 properties) Lot Size Acquired Assets1 (423 properties) Total Portfolio (938 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 acres > 1
Slide 11: Convenience Stores Dominate Retail Landscape
Number of convenience stores in service has remained steady over the last 10 years (1) More than 155,000 properties, 79% selling fuel, represents 34% of all retail outlets Stable Operator Performance (1) Sales and pre-tax profits have grown at 4.2% and 7.1% CAGR since 2003, respectively Inside sales
Slide 12: Getty Growth Platform
Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Asset recycling Sold 12 properties ($4 million) and 6 properties ($5 million) in 2017 and 2018 YTD, respectively Leasing activity Leased nine properties in 2017 Unlocking embedde
Slide 13: Acquisitions Since 2009
Acquisitions Since 2009 Acquired 423 properties for $853 million and 22 leasehold interests for $18 million Entered 11 new states and added 16 new tenants 2017 Acquisitions Acquired 103 properties for $214 million Weighted average cash return of 7.3% and a weighted average initial remaining lease te
Slide 14: 2017 Acquisition Highlights
2017 Acquisition Highlights Empire Petroleum Partners, LLC Acquired fee simple interests in 49 convenience store and gasoline station properties in seven states for $123 million 15 year unitary lease with annual rent escalations and multiple renewal options Provided funding to Empire, a regional fue
Slide 15: Redevelopment Active Projects and Pipeline
Market Asset Type Anticipated Total Investment (1) Investment As Of 9/30/18 Expected Completion (2) Active Projects Port Jefferson, NY Convenience Store (3) 2,926 6 2018 Lancaster, PA Convenience Store 427 97 2018 Falmouth, MA Urgent Care 1,894 1,064 2018 Jamaica, NY Retail 222 175 2018 Bronx, NY Re
Slide 16: Income Growth, Scalable G&A
Income Growth, Scalable G&A G&A ($ thousands) AFFO ($ thousands) (1) (2) Revenue ($ thousands) FFO ($ thousands) (1) FFO and AFFO are non-GAAP measures. For a description of how Getty calculates FFO and AFFO, see the earnings release issued by the Company on October 24, 2018. For a reconciliation of
Slide 17: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Revolving Credit Facility $250 million Matures 2022 with 1-year option, subject to certain conditions LIBOR +150 to 230 bps Bank Term Loan $50 million Matures 2023 LIBOR +145 to 225 bps Senior Unsecured Notes Series A: 6.0% $100 million matures 2021 Series B: 5.
Slide 18: Consistent Dividend Growth
Quarterly Dividends Declared per Share (1) Consistent Dividend Growth Excludes special dividends of $0.14 and $0.22 per share in 4Q14 and 4Q15, respectively.
Slide 19: Key Takeaways
Key Takeaways 1 National Net Lease Portfolio of Convenience Stores and Gasoline Stations 2 Well Located Retail Real Estate in both Established and High Growth Markets 3 Convenience and Gas Sector Continues to Grow and Remains One of the Healthiest Segments of the Retail Landscape 4 Cash Flow and Div
Slide 20: Appendices
Appendices
Slide 21: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO FFO and AFFO are non-GAAP measures. For a description of how Getty calculates FFO and AFFO, see the earnings release issued by the Company on October 24, 2018. During 4Q17, the Company revised its definition of AFFO. Accordingly, AFFO for the quarter an
Slide 22: Corporate History
Corporate History 1955: Leo Liebowitz and Milton Safenowitz purchase a gas station in New York City 1985: Acquires the northeastern retail petroleum distribution and marketing assets, and Getty® trademark for retail petroleum, from Texaco 1971: Company grows its portfolio to 75 service stations and