Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (July 2020)
23 slides from Getty Realty's investor presentation, Jul 22, 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 $1.8bn Enterprise Value G
Slide 4: COVID-19 Impact
COVID-19 Impact Getty’s highest near-term priority continues to be with the health and safety of its employees, tenants and the communities where the Company owns properties The Company is continuously monitoring the COVID-19 pandemic and its potential impact on its tenants, operations and financial
Slide 5: National Net Lease Portfolio
National Net Lease Portfolio 946 Properties Across 35 States 9%+ $30mm Mortgage Portfolio $126mm ABR ⁽¹⁾ 99% Occupancy ⁽³⁾ 5% AFFO / Share CAGR ⁽²⁾ 55% ABR in Top 25 MSAs ~10 years Weighted Avg. Lease Term ⁽⁴⁾ 2.3x 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 Chestnut Petroleum 9% 4 GPM Investments 8% 5 Empire Petroleum 8% 6 Applegreen 7% ü 7 Nouria Energy 6% 8 Cross America 5% ü Diversified Tenant Base with High Quality Brands Getty’s Top 15 Tenants (1) Nationally Recognized Fuel Bran
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 June 30, 2020
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 2.3x ⁽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 73% 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 (487 properties) Lot Size Acquired Assets1 (459 properties) Total Portfolio (946 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) 152,720 properties, 80% selling fuel, represents 35% of all retail outlets Stable Operator Performance (1) Sales and gross profits have grown at 1.9% and 4.3% CAGR since 2005, 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 five 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 443 properties for $970 million Added 16 new states and 22 new tenants 2020 Acquisitions Acquired 15 properties for $69 million Average cash return of 6.9% and average initial remaining lease term of 14 years Added two new state
Slide 15: 2020 and 2019 Acquisitions
2020 and 2019 Acquisitions Purchase price – $57 million Properties – 18 Lot & building size –0.9 acres and 2,533 sq. ft. Geography – AL, CA, FL, GA, IL, NC, NY, MA, OK and VA Purchase price – $99 million Properties – 24 Lot & building size –1.2 acres and 5,817 sq. ft. Geography – AR, GA, KS, KY, MN,
Slide 16: In-Progress Redevelopment Activity
Market Asset Type Anticipated Total Investment (1) Investment As Of 06/30/20 Expected Completion (2) Active Projects Lewisville, TX Convenience & Gas 632 186 2020 Bloomfield, NJ Retail 444 115 2020 Arlington, TX Convenience & Gas 722 110 2021 Forth Worth, TX Convenience & Gas 559 70 2021 Brooklyn, N
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 July 22, 2020. For a reconciliation of
Slide 19: Strong Balance Sheet
Strong Balance Sheet Investment Grade Credit Rating Fitch: BBB- Credit Agreement $300 million Revolving Credit Facility $225 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 July 22, 2020.