Slide 1: Convenience Automotive Retail Corporate Profile July 2022
CONVENIENCE AUTOMOTIVE RETAIL CORPORATE PROFILE JULY 2022
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS 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 strateg
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
PHPAYS FRESE biddiia
Slide 5: Getty at a Glance
GETTY AT A GLANCE NET LEASE REIT SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL REAL ESTATE 1,024 $1.9 billion BBB- Properties Enterprise Fitch 38 Value Rated States + DC C ONVENIENCE A UTOMOTIVE RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WHERE CONSUMERS SPEND MONEY IN THEIR CARS
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 99.4% OCCUPIED o Essential, e-commerce and recession o Freestanding properties on corner resistant, retail businesses lo
Slide 7: Recent News
RECENT NEWS HEALTHY PORTFOLIO AND STRONG BALANCE SHEET PROVIDE STABILITY AS TRANSACTION AND CAPITAL MARKETS ADJUST TO CURRENT ENVIRONMENT o Invested $59.3 million across 19 properties through June 30, 2022 – Acquired 11 car washes for $46.0 million – Acquired three convenience stores for $8.2 millio
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
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
INDUSTRY RESILIENT CONVENIENCE STORES CONTINUE TO EVOLVE WITH INCREASINGLY SOPHISTICATED RETAIL OPERATIONS COMMENTARY C-STORE INSIDE SALES $ Billions COVID-19 o Multi-store operators expanding brands thru consolidation and 300.0 new-to-industry stores drives Getty investment opportunities Great 250.
Slide 12: Industry
INDUSTRY LARGE AND GROWING BASE OF VEHICLES IN OPERATION SUPPORTS THE BROADER AUTOMOTIVE RETAIL SECTOR COMMENTARY INDUSTRY SALES GROWTH Car Wash Automotive Maintenance o Highly fragmented growth industries provide breadth of 5.6% investment opportunities for Getty 4.9% o Demand for auto care and mai
Slide 13: Locations
LOCATIONS NATIONAL FOOTPRINT WITH CONCENTRATIONS IN HIGH DENSITY METROPOLITAN AREAS % of Top 50 1,024 38 71% 65% Rank Metro Area ABR MSA 1 New York 18% 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 36 846 85% 1.6% 2.7x 91% 8.6 UNITARY PROPERTIES OF TOTAL ANNUAL RENT TENANT RENT FINANCIAL YEARS LEASES ABR ESCALATIONS COVERAGE REPORTING (1) WALT Sector % of Sector % of Tenant Sector Rank (2) ABR Tenant Sector Rank (2)
Slide 15: Capabilities
CAPABILITIES
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 317 PROPERTIES FOR $785 MILLION SINCE JANUARY 2016… PROPERTY TYPE: Car Wash TRANSACTION VALUE: $36 million TRANSACTION TYPE: Sale Leaseback # OF PROPERTIES: 8 GEOGRAPHY: Austin, TX LEASE TERM: 15.0 years RENT ESCALATIONS: 1.5% annual DATE: Q2 2022 PROPERTY TYPE: Convenience & G
Slide 19: Acquisitions
ACQUISITIONS …ENHANCING TENANT, PROPERTY TYPE AND GEOGRAPHIC DIVERSIFICATION PROPERTY TYPE: Convenience & Gas TRANSACTION VALUE: $65 million TRANSACTION TYPE: Sale Leaseback # OF PROPERTIES: 22 GEOGRAPHY: Charlotte, NC + Raleigh, NC + other Southeast LEASE TERM: 15.0 years RENT ESCALATIONS: 2.0% ann
Slide 20: Redevelopment
REDEVELOPMENT COMPLETED 24 PROJECTS TOTALING $15.6 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
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Slide 22: Balance Sheet
BALANCE SHEET AMPLE LIQUIDITY AND FLEXIBLE CAPITAL STRUCTURE SUPPORT PORTFOLIO GROWTH OBJECTIVES ACCESS TO CAPITAL BBB- 4.9x 36% 33% o $20 million cash o $300 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 R ETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES W
Slide 25: Supplemental Information
CONVENIENCE AUTOMOTIVE RETAIL SUPPLEMENTAL INFORMATION
Slide 26: Lease Expirations
LEASE EXPIRATIONS LEASE EXPIRATION SCHEDULE (% of ABR) o 99.4% occupied o 8.6 years WALT 45.2% 15.0% 8.9% 8.3% 6.6% 5.0% 5.3% 1.2% 1.7% 1.3% 1.2% 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Note: All data as of June 30, 2022. 26
Slide 27: Tenant Reporting & Rent Coverage
TENANT REPORTING & RENT COVERAGE TENANT REPORTING & RENT COVERAGE (% of ABR) o 64% site level reporting o 2.7x tenant rent coverage 27.0% 20.3% 18.6% 15.0% 9.1% 4.2% 5.2% 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 68.4% o 1.6% annualized rent escalation rate 16.3% 9.9% 3.8% 0.4% 1.2% Annual Every 3 Years Every 5 Years Every 3 Years Every 5 Years Flat Fixed = 88.5% CPI = 10.3% Note: All data as of June 30, 2022. 28
Slide 29: Redevelopment Activity
REDEVELOPMENT ACTIVITY IN-PROGRESS REDEVELOPMENTS ($000S) Anticipated Total Investment as of Market Property Type Investment (1) 6/30/2022 Expected Completion West Roxbury, MA Drive Thru Retail $ 704 $ 219 2022 Cedar Park, TX Convenience & Gas 1,440 358 2022 Brooklyn, NY Auto Parts 1,359 732 2023 Br
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Rental Income Base rent (1) $ 36,815 $ 34,057 $ 72,988 $ 67,358 Additional rent (2) 360 310 610 546 Deferred rental revenue (str
Slide 31: Debt and Credit Metrics
DEBT AND CREDIT METRICS REVOLVER CAPITALIZATION AND LEVERAGE Capacity / drawn $300.0 / $0.0 Market value of common equity $ 1,295.9 Pricing L + 130 bps Total debt outstanding 625.0 Maturity October 2025 Total capitalization $ 1,920.9 Extensions Two 6-month Cash & equivalents (20.1) Enterprise value
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 Other REITs may use definitions of FFO and/or AFFO that are different than the to measurements defined by accounting principles generally accepted in the United Company’s and, accordingly,
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 $ in thousands, except per share amounts Three Months Ended J une 30, Six Months Ended J une 30, 2022 2021 2022 2021 Net earnings (1) $ 30,680 $ 12,890 $ 49,429 $ 30,817 Depreciation and amortization of real estate assets 9,924 8,648 19,552 17,085 Gain
Slide 36: Getty Realty Corp. contact
CONVENIENCE AUTOMOTIVE RETAIL Getty Realty Corp. 292 Madison Avenue 9th Floor New York, NY 10017 646-349-6000