Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (February 2018)
23 slides from Getty Realty's investor presentation, Feb 28, 2018
Slide 1: Investor Presentation
Investor Presentation Exhibit 99.1 Exhibit 99.1 Investor Presentation
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: Investment Highlights
Investment Highlights 2 1 National Retail Net Lease Portfolio Located in Mature and High Growth Markets 2 Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants with Long-Term Triple-Net Leases 5 Industry Leading Expertise as Underwriter and Owner of Convenience Stores and
Slide 4: Company Overview
Company Overview
Slide 5: 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: Getty grows its portfolio to 75 service stations and ho
Slide 6: National Net Lease Portfolio
National Net Lease Portfolio 907 properties (828 fee, 79 leased) located in 28 states plus Washington, D.C. 890 net lease properties 9 redevelopment properties 8 vacant properties 99.1% occupied (1) $32.4 million mortgage portfolio (9-9.5% yield) Occupancy calculation excludes 9 properties currently
Slide 7: Investment Overview
Investment Overview
Slide 8: Attractive Net Lease Portfolio
Convenience Store and Gasoline Station Properties Stable, yet growing sector Increasingly institutional tenant base Mature, Infill Markets Densely populated areas High barriers to entry Limited new development Prime locations and corners Mature transportation grid Convenient ingress and egress High
Slide 9: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Lot and Building Sizes Have Increased Reflecting Evolving Consumer Preferences Legacy Assets1 (516 properties) Lot Size Acquired Assets1 (391 properties) Total Portfolio (907 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 acres > 1.5 acre
Slide 10: Stable Long-Term Leases with Rent Escalators
Sustainable cash flows supported by long-term triple-net leases Typically, annual rent escalations of 1.0% - 2.0% and rent coverage ratios of 1.5x – 2.0x As of December 31, 2017, unitary lease portfolio weighted average rent escalations of 1.6% and rental coverage of 1.9x ⁽¹⁾ Increasing tenant credi
Slide 11: High Quality Brands and Diversified Tenant Base
High Quality Brands and Diversified Tenant Base Rank Tenant % of ABR Public Company 1 Global 17% ü 2 United Oil 16% 3 Chestnut Petroleum 11% 4 Empire Petroleum Partners 9% 5 Nouria Energy 8% 6 Cross America Partners 6% ü 7 Fas mart 6% 8 Applegreen 5% ü 9 Capitol Petroleum Group 5% 10 BP 3% ü 11 Aloh
Slide 12: Located in High Density Metropolitan Markets
Located in High Density Metropolitan Markets Based on cash annualized base rent (ABR), as of December 31, 2017 Core Based Statistical Areas as defined by United States Office of Management and Budget Getty’s Top 20 Markets (1) (2) Rank Market % of ABR Top 25 Market (2) 11 Manchester, NH 2% 12 Rivers
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 nine properties and seven properties in 2016 and 2017, respectively Asset recycling Sold 14 properties ($5 million) and 12 properties ($4 million) in 2016
Slide 14: Acquisitions
Acquisitions 2017 Acquisitions Acquired 103 high quality properties for $214 million Weighted average cash return of 7.3% and a weighted average initial remaining lease term of more than 14 years Expanded geographic exposure with entry into Arizona, Georgia, New Mexico and Louisiana Estimated Addres
Slide 15: Redevelopment Activity
Market Asset Type Anticipated Total Investment (1) Investment As Of 12/31/17 Expected Completion (2) Active Projects Howell, NJ Retail 489 74 2018 Phoenixville, PA Financial Services 474 21 2018 Worcester, MA Convenience Store (3) 1,800 71 2018 Port Jefferson, NY Convenience Store (3) 2,500 1 2018 L
Slide 16: Convenience Stores Dominate Retail Landscape
Number of convenience stores in service has remained steady over the last 10 years (1) More than 154,000 properties, 80% selling fuel, represents 34% of all retail outlets Single-store operators account for 63% of all convenience stores Stable Operator Performance (1) Sales and pre-tax profits have
Slide 17: Financial Overview
Financial Overview
Slide 18: Income Growth, Scalable G&A
Income Growth, Scalable G&A G&A ($ thousands) AFFO ($ thousands) (1) (2) 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 February 28, 2018. During 4Q17, the Compa
Slide 19: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Revolving Credit Facility $175 million Matures 2018 with 1-year option, subject to certain conditions LIBOR +195 to 325 bps Bank Term Loan $50 million Matures 2020 LIBOR +190 to 320 bps Senior Unsecured Notes Series A: 6.0% $100 million matures 2021 Series B: 5.
Slide 20: Consistent Dividend Growth
Quarterly Dividends Declared per Share (1) Consistent Dividend Growth Excludes special dividends of $0.14 and $0.22 per share in 4Q14 and 4Q15, respectively Consistent Dividend Growth Quarterly Dividends Declared per Share (1) $0.00 $0.05 $0.10 $0.20 $0.25 $0.30 $0.35 $0.40 1Q14 2Q14 3Q14 4Q14 1Q15
Slide 21: Investment Highlights
Investment Highlights 1 National Retail Net Lease Portfolio Located in Mature and High Growth Markets 2 Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants with Long-Term Triple-Net Leases 5 Industry Leading Expertise as Underwriter and Owner of Convenience Stores and Ga
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Net Income to FFO and AFFO
Reconciliation of Net Income 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 February 28, 2018. During 4Q17, the Company revised its definition of AFFO. Accordingly, AFFO for the quarters en