Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (February 2021)
23 slides from Getty Realty's investor presentation, Feb 23, 2021
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 $1.7bn Enterprise Value GTY NYSE Ticker Symbol 5.5% Dividend Yield Established & High Growth Markets 31 Unitary / 117 Individual Leases Alternative Use Opportunities 1.6% Rent Escalations⁽²⁾ Organic 19 Completed / 10 In-Progress⁽⁴⁾ Redevelopments 4.9x Net Debt to EBITDA BBB-
Slide 4: COVID-19 Impact
3 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 financi
Slide 5: National Net Lease Portfolio
National Net Lease Portfolio 65% ABR in Top 50 MSAs 9.5 years Weighted Avg. Lease Term ⁽⁴⁾ 2.6x Unit Level Rent Coverage ⁽⁴⁾ 71% On Corner Locations 4 Annualized GAAP base rent as of December 31, 2020. Adjusted Fund From Operations per share compound annual growth rate 2015 to 2020. Occupancy calcul
Slide 6: Well-Positioned Net Lease Portfolio
Convenience Store, Gasoline Station and Other Automotive-Related 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 ingr
Slide 7: Diversified Tenant Base with High Quality Brands
Diversified Tenant Base with High Quality Brands 6 Getty’s Top 15 Tenants (1) Annualized GAAP base rent as of December 31, 2020. All trademarks, service marks, trade names, brands and logos are the property of their respective owners.
Slide 8: Located in High Density Metropolitan Markets
Located in High Density Metropolitan Markets 7 Annualized cash base rent, as of December 31, 2020. Core Based Statistical Areas as defined by United States Office of Management and Budget. Top 50 Metropolitan Markets Represent 65% of ABR Getty’s Top 15 Markets (1) (2)
Slide 9: Stable Long-Term Leases with Rent Escalators
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 2.6x ⁽¹⁾ Tenant credit visibility via site and tenant financ
Slide 10: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation 9 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
Slide 11: Optimizing Portfolio to Meet Industry Demand
10 Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets1 (480 properties) Lot Size Acquired Assets1 (479 properties) Total Portfolio (959 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 acres
Slide 12: Convenience Stores Dominate Retail Landscape
Convenience Stores Dominate Retail Landscape 11 Convenience Store Margins (1) (4) Convenience Store Gross Profit ($bn) (1) Source: National Association of Convenience Stores, FY 2019 data. Source Hedges & Co., FY 2019 data. Note: Excludes 1.4 million registered plug-in electric vehicles. Source: Mor
Slide 13: Getty Growth Platform
12 Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Asset recycling Sold 30 properties for $16 million over the last three years, including 11 properties for $6 million in 2020 Leasing activity Select re-leasing opportunities i
Slide 14: Acquisitions Ten-Year Track Record
Acquisitions Ten-Year Track Record Acquired 462 properties for $1.1 billion Added 16 new states and 23 new tenants 2020 Acquisitions Acquired 34 properties for $150 million Average cash return of 7.0% and average initial remaining lease term of 15 years Added two new states (KS and MO) 2019 Acquisit
Slide 15: 2020 and 2019 Acquisitions
2020 and 2019 Acquisitions 14 Purchase price – $86 million Properties – 24 Lot & building size – 1.2 acres and 3,245 sq. ft. Geography – AL, CA, FL, GA, IL, NC, NY, MA, OK TX and VA Purchase price – $151 million Properties – 37 Lot & building size – 1.4 acres and 5,454 sq. ft. Geography – AR, GA, KS
Slide 16: Redevelopment Projects
15 Redevelopment Projects Invested $14.4 million in 19 completed redevelopments with aggregate yield of 16% In-Progress Redevelopment Activity ($ thousands) Anticipated total investment includes development costs, termination/recapture fees and leasing commissions. No assurance can be given that any
Slide 17: Redevelopment Case Studies
Redevelopment Case Studies 16 Property type – Quick Service Restaurant Development type – Ground Lease Lot & building size – 0.4 acres and 2,389 sq. ft. Total investment – $1.6 million Incremental yield – 11% Rent commencement – February 26, 2020 Tenant – Wendy’s is the world’s third-largest hamburg
Slide 18: Income Growth, Scalable G&A
Income Growth, Scalable G&A 17 G&A ($ thousands) AFFO ($ thousands) (1) Total Revenue ($ thousands) FFO ($ thousands) (1) (2) 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 23, 2021. For a reconci
Slide 19: Strong Balance Sheet
Strong Balance Sheet 18 Investment Grade Credit Rating Fitch: BBB- Credit Agreement $300 mm Revolving Credit Facility $275 mm available for growth Matures 2022 with 1-year option, subject to certain conditions LIBOR +150 to 230 bps Senior Unsecured Notes Series B: $75 million 5.35% notes due 2023 Se
Slide 20: Consistent Dividend Growth
19 Quarterly Dividends Declared per Share Consistent Dividend Growth
Slide 21: Key Takeaways
Key Takeaways Gett; National Net Lease Portfolio of Convenience Stores and Gasoline Stations ‘Well Located Retail Real Estate in both Established and High Growth Markets Convenience and Gas Sector Continues to Grow and Remains One of the Healthiest Segments of the Retail Landscape Entering Other Aut
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO 22 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 23, 2021. Net earnings and FFO for the quarter and year ended December 31, 2020 include a $20.5 mil