Getty Realty Corporation · NYSE:GTY
Getty Realty — NAREIT 2020
23 slides from Getty Realty's conference presentation, Jun 2, 2020
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 & Gas and Other Automotive Properties ⁽¹⁾ 1 Track Record of Partnering with Tenants in Healthy and Consolidating Retail Sectors Multiple Growth Channels Flexible / Low Leverage Balance Sheet Supports Growth $1.5bn Enterprise Value G
Slide 4: COVID-19 Impact
COVID-19 Impact The Company is providing the following COVID-19-related updates as of June 2, 2020 Portfolio of essential businesses – More than 95% of tenant locations have been deemed essential April rent collections – The Company received more than 97%, and granted deferrals for approximately 2%,
Slide 5: National Net Lease Portfolio
National Net Lease Portfolio 947 Properties Across 35 States 9%+ $29mm Mortgage Portfolio $127mm ABR ⁽¹⁾ 99% Occupancy ⁽³⁾ 5% AFFO / Share CAGR ⁽²⁾ 55% ABR in Top 25 MSAs ~10 years Weighted Avg. Lease Term ⁽⁴⁾ 2.1x Unit Level Rent Coverage ⁽⁴⁾ 71% On Corner Locations Based on GAAP annualized base re
Slide 6: Convenience Store, Gasoline Station and Other Automotive Properties
Convenience Store, Gasoline Station and Other Automotive Properties Stable, yet growing sectors 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
Slide 7: Diversified Tenant Base with High Quality Brands
Rank Market % of ABR Public Company 1 Global 15% ü 2 United Oil 14% 3 GPM Investments 10% 4 Chestnut Petroleum 9% 5 Empire Petroleum 8% 6 Applegreen 7% ü 7 Nouria Energy 6% 8 Cross America 6% ü Diversified Tenant Base with High Quality Brands Getty’s Top 15 Tenants (1) Nationally Recognized Fuel Bra
Slide 8: Located in High Density Metropolitan Markets
Rank Market % of ABR Top 25 Market (2) 9 Kansas City 2% 10 Phoenix 2% ü 11 Dallas-Fort Worth 2% ü 12 Hartford, CT 2% 13 Honolulu 2% 14 Richmond, VA 2% 15 Riverside-San Bernardino 2% ü Other 31% Located in High Density Metropolitan Markets Based on cash annualized base rent (ABR), as of March 31, 202
Slide 9: 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 2.1x ⁽¹⁾ Tenant credit visi
Slide 10: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation 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 74% of properties ha
Slide 11: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets1 (491 properties) Lot Size Acquired Assets1 (456 properties) Total Portfolio (947 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 acres > 1
Slide 12: Convenience Stores Dominate Retail Landscape
Number of convenience stores in service has remained steady over the last 10 years (1) 153,237 properties, 80% selling fuel, represents 34% of all retail outlets Stable Operator Performance (1) Sales and gross profits have grown at 3.7% and 5.3% CAGR since 2004, respectively In-store sales grew for
Slide 13: Getty Growth Platform
Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Leasing activity Leased one property in 2019 and none in YTD 2020 Asset recycling Sold nine properties ($3 million) and four properties ($2 million) in 2019 and 2020 YTD, respect
Slide 14: Acquisitions Ten-Year Track Record
$68 38 $123 49 $17 6 $52 30 Acquisitions Ten-Year Track Record Acquired 440 properties for $958 million Added 16 new states and 21 new tenants 2020 Acquisitions Acquired 12 properties for $57 million Average cash return of 7.0% and average initial remaining lease term of 15 years Added two new state
Slide 15: 2020 and 2019 Acquisitions
2020 and 2019 Acquisitions Purchase price – $49 million Properties – 16 Lot & building size – 0.9 acres and 2,519 sq. ft. Geography – AL, CA, FL, GA, IL, NC, NY, MA, OK and VA Purchase price – $95 million Properties – 23 Lot & building size – 1.2 acres and 5,894 sq. ft. Geography – AR, GA, KS, KY, M
Slide 16: Redevelopment Projects
Market Asset Type Anticipated Total Investment (1) Investment As Of 3/31/20 Expected Completion (2) Active Projects Brooklyn, NY Retail 386 275 2020 Lewisville, TX Convenience & Gas 632 155 2021 Brooklyn, NY Retail 1,045 292 2021 Brooklyn, NY Residential 752 230 2023 Active Projects Total 2,815 952
Slide 17: Redevelopment Case Studies
Redevelopment Case Studies Property type – Quick Service Restaurant Development type – Ground Lease Lot & building size – 0.4 acres and 2,389 sq. ft. Total investment – $1.6 million Incremental yield – 11% Rent commencement – February 26, 2020 Tenant – Wendy’s is the world’s third-largest hamburger
Slide 18: Income Growth, Scalable G&A
Income Growth, Scalable G&A G&A ($ 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 May 6, 2020. For a reconciliation of Ne
Slide 19: Strong Balance Sheet
Strong Balance Sheet Investment Grade Credit Rating Fitch: BBB- Credit Agreement $300 million Revolving Credit Facility $215 million available for growth Matures 2022 with 1-year option, subject to certain conditions LIBOR +150 to 230 bps Senior Unsecured Notes Series A: 6.0% $100 million matures 20
Slide 20: Consistent Dividend Growth
Quarterly Dividends Declared per Share Consistent Dividend Growth
Slide 21: 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 5 Cash Flow and Div
Slide 22: Appendix
Appendix
Slide 23: 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 May 6, 2020.