Getty Realty Corporation · NYSE:GTY
Getty Realty — Q4 2021 Earnings Presentation
36 slides from Getty Realty's earnings presentation, Feb 24, 2022
Slide 1: Convenience Automotive Retail Corporate Profile February 2022
CONVENIENCE AUTOMOTIVE RETAIL CORPORATE PROFILE FEBRUARY 2022
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward Looking Statements 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 strategi
Slide 3: Table of Contents
TABLE OF CONTENTS Corporate Profile Company Page 4 Portfolio 9 Capabilities 15 Corporate 21 Supplemental Information 25 Definitions and Reconciliations 32 3
Slide 4: Company
i AEA FEESE capuey
Slide 5: Getty at a Glance
GETTY AT A GLANCE NET LEASE REIT SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL REAL ESTATE 1,028 $1.9 billion BBB- Properties Enterprise Fitch 38 Value Rated States + DC C ONVENIENCE AUTOMOTIVE RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WHERE CONSUMERS SPEND MONEY IN THEIR CARS O
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS STABLE PORTFOLIO OF ESSENTIAL USE ASSETS WITH ATTRACTIVE GROWTH OPPORTUNITIES PORTFOLIO SNAPSHOT Durable Rental Income Versatile Real Estate in Major Markets 99.5% OCCUPIED o Essential, e-commerce and recession o Freestanding properties on corner resistant, retail businesses lo
Slide 7: Recent News
RECENT NEWS PLATFORM EXPANSION, PORTFOLIO GROWTH AND INCREASED PROFITABILITY IN 2021 o Invested $200 million across 100 properties, including the acquisition of 25 convenience stores, 17 car wash properties, 54 auto service centers and one drive-thru quick service restaurant INVESTMENT o Funded net
Slide 8: Business Plan Execution
BUSINESS PLAN EXECUTION EXPANDING OUR PLATFORM, GROWING OUR PORTFOLIO AND INCREASING PROFITABILITY PLATFORM CAPABILITIES PORTFOLIO GROWTH* PROFITABILITY o Expanding investment opportunities o Entering new geographic markets o Increasing profit margins o Improving access to and cost of capital o Enha
Slide 9: Portfolio
self VALERO 5 La | We
Slide 10: Real Estate
REAL ESTATE FREESTANDING PROPERTIES OFFERING ESSENTIAL GOODS AND SERVICES TIED TO CONVENIENCE & AUTOMOBILITY CONVENIENCE & AUTOMOTIVE RETAIL REAL ESTATE RETAIL SECTORS REAL ESTATE ATTRIBUTES o Convenience & Gas o 3,000 - 5,000 SF buildings o Car Wash o 1 - 2 acre sites o Auto Service o Corner locati
Slide 11: Industry: Convenience Stores Continue to Evolve
INDUSTRY RESILIENT CONVENIENCE STORES CONTINUE TO EVOLVE WITH INCREASINGLY SOPHISTICATED RETAIL OPERATIONS COMMENTARY C-STORE INSIDE SALES $ Billions o Long-term track record of consistent inside sales growth COVID-19 300.0 Great o Improving profitability through expanded foodservice and higher 250.
Slide 12: Industry: Large and Growing Base of Vehicles in Operation
INDUSTRY LARGE AND GROWING BASE OF VEHICLES IN OPERATION SUPPORTS THE BROADER AUTOMOTIVE RETAIL SECTOR COMMENTARY VEHICLES IN OPERATION` Millions o Demand for auto care and maintenance is generally needs 290 based and resistant to economic downturns 278 281 275 272 o Total number of vehicles in oper
Slide 13: Locations
LOCATIONS NATIONAL FOOTPRINT WITH CONCENTRATIONS IN HIGH DENSITY METROPOLITAN AREAS % of Top 50 1,028 38 71% 64% Rank Metro Area ABR MSA 1 New York 19% FREESTANDING STATES CORNER TOP 50 MSAs PROPERTIES + D.C. LOCATIONS 2 Washington D.C. 8% 3 Boston 6% 4 Columbia, SC 4% 5 Denver 3% 6 Kansas C
Slide 14: Tenants and Leases
TENANTS AND LEASES INSTITUTIONAL OPERATORS PRIMARILY UNDER UNITARY LEASES 33 845 85% 1.7% 2.6x 88% 8.8 UNITARY PROPERTIES OF TOTAL ANNUAL RENT TENANT RENT FINANCIAL YEARS LEASES ABR ESCALATIONS COVERAGE REPORTING (1) WALT % of Financial % of Financial Rank Tenant ABR Reporting Rank Tenant ABR Re
Slide 15: Capabilities
CAPABILITIES 1
Slide 16: Investment Approach
INVESTMENT APPROACH MACRO PERSPECTIVES SUPPORTED BY COMPREHENSIVE TRANSACTION UNDERWRITING AND LEASE STRUCTURING Automobility is power agnostic and Mobile consumers increasingly remains the dominant form of prioritize convenience, consumer transportation service and speed Convenience & automotive re
Slide 17: Platform
PLATFORM BROAD CAPABILITIES, TARGETED INVESTMENTS FULL SERVICE REAL ESTATE COMPANY SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL PROPERTIES ACQUISITIONS FINANCING o Sale leasebacks o Development funding o Forward purchases o Mortgage loans o Programmatic relationships o Seller financing o Market
Slide 18: Acquisitions
ACQUISITIONS ACQUIRED 303 PROPERTIES FOR $731 MILLION SINCE JANUARY 2016… DATE: Q3-Q4 2021 PROPERTY TYPE: Car Wash TRANSACTION TYPE: Sale Leaseback + Development Funding (1) # OF PROPERTIES: 4 (to date) TRANSACTION VALUE: $14 million (to date) GEOGRAPHY: Burlington, VT + New Haven, CT LEASE TERM: 15
Slide 19: Acquisitions
ACQUISITIONS …ENHANCING TENANT, PROPERTY TYPE AND GEOGRAPHIC DIVERSIFICATION DATE: Q1-Q4 2021 PROPERTY TYPE: Convenience & Gas TRANSACTION TYPE: Development Funding + Sale Leaseback (1) # OF PROPERTIES: 4 (total) TRANSACTION VALUE: $15 million (to date) GEOGRAPHY: Charleston, SC LEASE TERM: 15.0 yea
Slide 20: Redevelopment
REDEVELOPMENT COMPLETED 24 PROJECTS TOTALING $15.2 MILLION AT AN 18% INCREMENTAL YIELD RENT COMMENCEMENT: 2021 (four sites) PROPERTY TYPE: Convenience & Gas DEVELOPMENT TYPE: Ground Leases TOTAL INVESTMENT: $0.8 million INCREMENTAL YIELD: 42% GEOGRAPHY: Texas (3) + Maryland (1) Representative image
Slide 21: Corporate
T H H
Slide 22: Balance Sheet
BALANCE SHEET AMPLE LIQUIDITY AND FLEXIBLE CAPITAL STRUCTURE SUPPORT PORTFOLIO GROWTH OBJECTIVES ACCESS TO CAPITAL BBB- 4.6x 34% 31% o $25 million cash o $240 million Revolver capacity FITCH NET DEBT DEBT TO TOTAL DEBT TO TOTAL o $160 million ATM capacity RATED TO EBITDA ASSET VALUE CAPITALIZATION C
Slide 23: Corporate Responsibility
CORPORATE RESPONSIBILITY COMMITTED TO GOOD CORPORATE CITIZENSHIP AND BUSINESS PRACTICES THAT SERVE ALL OF OUR STAKEHOLDERS ENVIRONMENTAL PRACTICES SOCIAL RESPONSIBILITY CORPORATE GOVERNANCE o We place a high priority on the protection o We believe that our people are the o We are dedicated to mainta
Slide 24: Summary
SUMMARY STABLE PORTFOLIO OF ESSENTIAL USE ASSETS WITH ATTRACTIVE GROWTH OPPORTUNITIES DURABLE RENTAL INCOME VERSATILE REAL ESTATE IN MAJOR MARKETS INCREMENTAL INVESTMENT OPPORTUNITIES WELL POSITIONED BALANCE SHEET C ONVENIENCE A UTOMOTIVE RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WH
Slide 25: Supplemental Information
CONVENIENCE AUTOMOTIVE RETAIL SUPPLEMENTAL INFORMATION
Slide 26: Lease Expirations
LEASE EXPIRATIONS LEASE EXPIRATION SCHEDULE (% of ABR) o 99.5% occupied o 8.8 years WALT 43.4% 14.0% 9.6% 8.0% 5.4% 6.5% 5.1% 2.4% 2.5% 2.0% 1.2% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Note: All data as of December 31, 2021. 26
Slide 27: Tenant Reporting & Rent Coverage
TENANT REPORTING & RENT COVERAGE TENANT REPORTING & RENT COVERAGE (% of ABR) o 62% site level reporting o 2.6x tenant rent coverage 27.7% 26.2% 16.0% 11.5% 8.8% 5.1% 4.2% 0.5% < 1.00x 1.00x to 1.99x 2.00x to 2.49x 2.50x to 2.99x > 3.00x Not Yet Public Company No Reporting Available (1) Reporting Sit
Slide 28: Rent Escalations
RENT ESCALATIONS RENT ESCALATIONS (% of ABR) o 99% subject to rent escalation 67.0% o 1.7% annualized rent escalation rate 17.1% 10.0% 3.8% 0.9% 1.2% Annual Every 3 Years Every 5 Years Every 3 Years Every 5 Years Flat Fixed = 87.9% CPI = 10.9% Note: All data as of December 31, 2021. 28
Slide 29: Redevelopment Activity
REDEVELOPMENT ACTIVITY IN-PROGRESS REDEVELOPMENTS ($000S) Anticipated Total Investment as of Market Property Type Investment (1) 12/31/2021 Expected Completion Cedar Park, TX Convenience & Gas $ 1,412 $ 351 2022 Brooklyn, NY Auto Parts 1,342 498 2023 Brooklyn, NY Residential 737 635 2023 West Roxbur
Slide 30: Revenues from Rental Properties and Property Costs
REVENUES FROM RENTAL PROPERTIES AND PROPERTY COSTS REVENUES FROM RENTAL PROPERTIES $ in thousands Three Months Ended Dec em ber Twelv e Months Ended Dec em ber 2021 2020 2021 2020 Rental Income Base rent (1) $ 35,620 $ 32,777 $ 137,461 $ 127,186 Additional rent (2) 314 276 1,230 1,060 Deferred renta
Slide 31: Debt and Credit Metrics Overview
DEBT AND CREDIT METRICS OVERVIEW REVOLVER CAPITALIZATION AND LEVERAGE Capacity / drawn $300.0 / $60.0 Market value of common equity $ 1,308.0 Pricing L + 130 bps Total debt outstanding 585.0 Maturity October 2025 Total capitalization $ 1,893.0 Extensions Two 6-month Cash & equivalents (24.7) Enterpr
Slide 32: Definitions and Reconciliations
CONVENIENCE AUTOMOTIVE RETAIL DEFINITIONS AND RECONCILIATIONS
Slide 33: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). In addition to Other REITs may use definitions of FFO and/or AFFO that are different than the measurements defined by accounting principles generally accepted in the United States of Company’s and, acc
Slide 34: Other Metrics and Definitions
OTHER METRICS AND DEFINITIONS Annual Base Rent (ABR). Contractually specified annual base rent in effect Incremental Yield. For redevelopment projects, the amount of incremental for all leases that have commenced as of the date noted, including those rent generated by the redeveloped property divide
Slide 35: Reconciliation of Net Earnings to FFO and AFFO
RECONCILIATION OF NET EARNINGS TO FFO AND AFFO Three Months Ended Dec em ber Twelv e Months Ended Dec em ber $ in thousands, except per share amounts 2021 2020 2021 2020 Net earnings $ 18,032 $ 33,831 $ 62,860 $ 69,388 Depreciation and amortization of real estate assets 9,538 8,134 35,518 30,191 Gai
Slide 36: Getty Realty Corp. contact
CONVENIENCE AUTOMOTIVE RETAIL Getty Realty Corp. 292 Madison Avenue 9th Floor New York, NY 10017 646-349-6000