Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (April 2021)
22 slides from Getty Realty's investor presentation, Apr 28, 2021
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 $1.9bn Enterprise Value GTY NYSE Ticker Symbol 5.0% Dividend Yield Established & High Growth Markets 32 Unitary / 115 Individual Leases Alternative Use Opportunities 1.6% Rent Escalations ⁽²⁾ Organic 19 Completed / 11 In-Progress ⁽⁴⁾ Redevelopments 5.0x Net Debt to EBITDA BB
Slide 4: National Net Lease Portfolio
National Net Lease Portfolio 65% ABR in Top 50 MSAs 9.1 years Weighted Avg. Lease Term ⁽⁴⁾ 2.7x Unit Level Rent Coverage ⁽⁴⁾ 71% On Corner Locations 3 Annualized GAAP base rent as of March 31, 2021. Adjusted Fund From Operations per share compound annual growth rate FY2015 to FY2020. Occupancy calcu
Slide 5: Well-Positioned Net Lease Portfolio
Convenience Store, Gasoline Station and Other Automotive-Related Properties Includes car washes, auto service centers and auto parts Stable, yet growing sectors Institutional quality tenant base Urban Infill Markets Densely populated areas High barriers to entry Select new development Prime location
Slide 6: Diversified Tenant Base with High Quality Brands
Diversified Tenant Base with High Quality Brands 5 Getty’s Top 15 Tenants (1) Based on annualized GAAP base rent as of March 31, 2021. All trademarks, service marks, trade names, brands and logos are the property of their respective owners.
Slide 7: Located in High Density Metropolitan Markets
Located in High Density Metropolitan Markets 6 Based on annualized cash base rent as of March 31, 2021. Core Based Statistical Areas as defined by United States Office of Management and Budget. Top 50 Metropolitan Markets Represent 65% of ABR Getty’s Top 15 Markets (1) (2)
Slide 8: Stable Long-Term Leases with Rent Escalators
Sustainable cash flows supported by long-term triple-net leases Unitary lease portfolio weighted average rent escalations of 1.6% and rental coverage of 2.7x ⁽¹⁾ Tenant credit visibility via site-level reporting requirements and/or public company disclosure Majority of new triple-net leases have 15-
Slide 9: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation 8 Includes branded QSRs and convenience stores with unbranded fresh food offerings. Includes free-standing QSRs and regional retailers. Portfolio of well-positioned properties at prominent corner locations Key Attributes Driving Site Traffic 73% of properties
Slide 10: Optimizing Portfolio to Meet Industry Demand
9 Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets (1) (475 properties) Lot Size Acquired Assets (1) (485 properties) Total Portfolio (960 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 a
Slide 11: Convenience Stores Dominate Retail Landscape
Convenience Stores Dominate Retail Landscape 10 Convenience Store Margins (4) Convenience Store Gross Profit ($bn) (1) Source: National Association of Convenience Stores, FY 2019 data. Source Hedges & Co., FY 2020 data. Source: Morgan Stanley Research. Source: RBC Fuel Margins Report. Avg. in-store
Slide 12: Getty Growth Platform
11 Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Asset recycling Sold 11 properties ($6 million) in 2020 and five properties ($8 million) in Q1 2021 Leasing activity Select re-leasing opportunities in legacy portfolio Unlock
Slide 13: Acquisitions Ten-Year Track Record
Acquisitions Ten-Year Track Record (1) Acquired 465 properties for $1.1 billion Added 16 new states and 23 new tenants 2021 Acquisitions Acquired six properties for $22 million Average cash return of 7.0% and average initial remaining lease term of ~15 years 2020 Acquisitions Acquired 34 properties
Slide 14: 2021 and 2020 Acquisitions
2021 and 2020 Acquisitions 13 Purchase price – $36 million Properties – 8 Lot & building size – 1.8 acres and 4,697 sq. ft. Geography – NY and TX Purchase price – $136 million Properties – 32 Lot & building size – 1.5 acres and 5,048 sq. ft. Geography – KS, KY, MO, NC, OH, TX and VA Sale/Leaseback F
Slide 15: Redevelopment Projects
14 Redevelopment Projects Invested $14.4 million in 19 completed redevelopments with aggregate yield of 16% In-Progress Redevelopment Activity ($ thousands) Anticipated total investment includes development costs, termination/recapture fees and leasing commissions. No assurance can be given that red
Slide 16: Redevelopment Case Studies
Redevelopment Case Studies 15 Property type – Quick Service Restaurant Development type – Ground Lease Lot & building size – 0.4 acres and 2,389 sq. ft. Total investment – $1.6 million Incremental yield – 11% Rent commencement – February 26, 2020 Tenant – Wendy’s is the world’s third-largest hamburg
Slide 17: Income Growth, Scalable G&A
Income Growth, Scalable G&A 16 G&A ($ thousands) AFFO ($ thousands) (1) Total 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 April 28, 2021. For a reconciliation
Slide 18: Strong Balance Sheet
Strong Balance Sheet 17 Investment Grade Credit Rating Fitch: BBB- Credit Agreement Undrawn $300 million Revolving Credit Facility Full capacity available for growth Matures 2022 with 1-year option, subject to certain conditions LIBOR +150 to 230 bps Senior Unsecured Notes Series B: $75 million 5.35
Slide 19: Consistent Dividend Growth
18 Quarterly Dividends Declared per Share Consistent Dividend Growth
Slide 20: Key Takeaways
Key Takeaways National Net Lease Portfolio of Convenience Stores, Gasoline Stations and Other Automotive-Related Properties ‘Well Located Retail Real Estate in both Established and High Growth Markets Convenience and Gas Sector Continues to Grow and Remains One of the Healthiest ‘Segments of the Ret
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO 21 FFO and AFFO are non-GAAP measures. See the Company’s earnings release filed on Form 8-K on April 28, 2021 for additional information. Dividends paid and undistributed earnings allocated, if any, to unvested restricted stockholders are deducted from