Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (April 2019)
23 slides from Getty Realty's investor presentation, Apr 30, 2019
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 $1.7bn Enterprise Value GT
Slide 4: National Net Lease Portfolio
National Net Lease Portfolio 932 Properties Across 30 States 9%+ $32mm Mortgage Portfolio $119mm ABR ⁽¹⁾ 99% Occupancy ⁽³⁾ 7% AFFO / Share CAGR ⁽²⁾ 60% ABR in Top 25 MSAs ~10 years Weighted Avg. Lease Term ⁽⁴⁾ 2.1x 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
Diversified Tenant Base with High Quality Brands Getty’s Top 15 Tenants (1) Nationally Recognized Fuel Brands (2) Based on GAAP annualized base rent (ABR) as of March 31, 2019. All trademarks, service marks, trade names, brands and logos are the property of their respective owners. Rank Market % of
Slide 7: Located in High Density Metropolitan Markets
Rank Market % of ABR Top 25 Market (2) 9 Hartford, CT 2% 10 Honolulu 2% 11 Richmond, VA 2% 12 Riverside, CA 2% ü 13 Manchester, NH 2% 14 Seattle 1% ü 15 Los Angeles 1% ü Other 28% Located in High Density Metropolitan Markets Based on cash annualized base rent (ABR), as of March 31, 2019. Core Based
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 2.1x ⁽¹⁾ Tenant credit visi
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 (509 properties) Lot Size Acquired Assets1 (423 properties) Total Portfolio (932 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) 154,958 properties, 79% selling fuel, represents 34% of all retail outlets Stable Operator Performance (1) Sales and gross profits have grown at 4.2% and 5.5% CAGR since 2003, respectively In-store sales grew for
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 10 properties ($7 million) in 2018 Leasing activity Leased one property in 2018 Unlocking embedded value in existing portfolio Existing portfolio of urban in
Slide 13: Acquisitions Track Record
$68 38 $123 49 $17 6 $52 30 Acquisitions Ten-Year Track Record Acquired 423 properties for $855 million Entered 11 new states and added 16 new tenants 2018 Acquisitions Acquired 41 properties for $78 million Weighted average cash return of 7.26% and a weighted average initial remaining lease term of
Slide 14: Portfolio Acquisition Case Studies
Portfolio Acquisition Case Studies Purchase price – $68 million Closing date – October 3, 2017 Properties – 33 convenience stores and five Burger Kings Lot & building size – 1.7 acres and 2,900 sq. ft. Geography – Columbia, SC Tenant – Largest convenience and gasoline station operator in the Republi
Slide 15: Redevelopment Projects
Market Asset Type Anticipated Total Investment (1) Investment As Of 3/31/19 Expected Completion (2) Active Projects Bronx, NY Retail 372 247 2019 Manchester, CT Retail 150 68 2019 Bronx, NY Quick Service Restaurant 1,540 552 2019 Brooklyn, NY Retail 229 169 2019 Philadelphia, PA Retail 315 126 2020
Slide 16: Redevelopment Case Studies
Redevelopment Case Studies Property type – Convenience and Gas Development type – Ground lease/acquisition of adjacent lot Lot & building size – 3.4 acres and 5,490 sq. ft. Total investment – $0.5 million Incremental yield – 20% Rent commencement – December 1, 2017 Tenant – Sheetz is one of America'
Slide 17: Income Growth, Scalable G&A
Income Growth, Scalable G&A G&A ($ 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 April 30, 2019. For a reconciliation of
Slide 18: 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 19: Consistent Dividend Growth
Quarterly Dividends Declared per Share (1) Consistent Dividend Growth Excludes special dividend of $0.22 per share in 4Q15.
Slide 20: 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 21: Appendices
Appendices
Slide 22: 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 April 30, 2019.
Slide 23: 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