Getty Realty Corporation · NYSE:GTY
Getty Realty — Q2 2021 Earnings Presentation
27 slides from Getty Realty's earnings presentation, Jul 29, 2021
Slide 1: Convenience Automotive Retail Corporate Profile Q2 2021
CONVENIENCE AUTOMOTIVE RETAIL CORPORATE PROFILE Q2 2021
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 perfor
Slide 3: i AEA FEESE capuey
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Slide 4: Getty at a Glance
GETTY AT A GLANCE NET LEASE REIT SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL REAL ESTATE 1,005 $2.0 billion Properties BBB- Enterprise 35 Fitch Value States+ DC Rated C ONVENIENCE AUTOMOTIVE RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WHERE CONSUMERS SPEND MONEY IN THEIR CARS OR
Slide 5: 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 99.5% OCCUPIED o Essential, e-commerce and recession o Freestanding properties on corner resistant, retail businesses lo
Slide 6: 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 7: Recent News
RECENT NEWS STRONG YEAR TO DATE INVESTMENT ACTIVITY ACROSS MULTIPLE PROPERTY TYPES o Invested $79.0 million across 60 properties year-to-date through July 28, 2021 – Acquired 9 car washes for $32.3 million INVESTMENT – Acquired 46 oil change centers for $31.0 million ACTIVITY – Funded construction l
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Slide 9: 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 10: Industry: Convenience Stores
INDUSTRY RESILIENT CONVENIENCE STORES CONTINUE TO EVOLVE WITH INCREASINGLY SOPHISTICATED RETAIL OPERATIONS COMMENTARY C-STORE INSIDE SALES $ Billions o Long-term track record of consistent inside sales growth COVID-19 300.0 Great o Improving profitability through expanded foodservice and higher 250.
Slide 11: Industry: Vehicles in Operation
INDUSTRY LARGE AND GROWING BASE OF VEHICLES IN OPERATION SUPPORTS THE BROADER AUTOMOTIVE RETAIL SECTOR COMMENTARY VEHICLES IN OPERATION Millions o Demand for auto care and maintenance is generally needs 290 based and resistant to economic downturns 278 281 275 272 o Total number of vehicles in opera
Slide 12: Locations
LOCATIONS NATIONAL FOOTPRINT WITH CONCENTRATIONS IN HIGH DENSITY METROPOLITAN AREAS % of Top 50 1,005 35 72% 65% Rank Metro Area ABR MSA 1 New York 20% FREESTANDING STATES CORNER TOP 50 MSAs PROPERTIES + D.C. LOCATIONS 2 Washington D.C. 8% 3 Boston 6% 4 Columbia, SC 5% 5 Denver 4% 6 Poughkee
Slide 13: Tenants and Leases
TENANTS AND LEASES INSTITUTIONAL OPERATORS PRIMARILY UNDER UNITARY LEASES 32 833 86% 1.6% 2.6x 88% 8.9 UNITARY PROPERTIES OF TOTAL ANNUAL RENT TENANT RENT FINANCIAL YEARS LEASES ABR ESCALATIONS COVERAGE REPORTING (1) WALT % of Financial % of Financial Rank Tenant ABR Reporting Rank Tenant ABR Re
Slide 14: Capabilities
CAPABILITIES 1
Slide 15: 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 16: Platform
PLATFORM TARGETED INVESTMENTS, BROAD CAPABILITIES FULL SERVICE REAL ESTATE COMPANY SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL PROPERTIES ACQUISITIONS FINANCING o Sale leasebacks o Construction loans o Forward purchases o Mortgage loans o Programmatic relationships o Seller financing o Markete
Slide 17: Acquisitions
ACQUISITIONS ACQUIRED 261 PROPERTIES FOR $601 MILLION SINCE JANUARY 2016… DATE: Q2 2021 PROPERTY TYPE: Auto Service – Oil & Maintenance TRANSACTION TYPE: Acquired Leases # OF PROPERTIES: 46 TRANSACTION VALUE: $31 million GEOGRAPHY: Michigan & Ohio LEASE TERM: 11.5 years RENT ESCALATIONS: 10% / 5 yea
Slide 18: Acquisitions
ACQUISITIONS …ENHANCING TENANT, PROPERTY TYPE AND GEOGRAPHIC DIVERSIFICATION DATE: Q1-Q2 2021 PROPERTY TYPE: Car Wash TRANSACTION TYPE: Sale Leaseback # OF PROPERTIES: 7 TRANSACTION VALUE: $24 million GEOGRAPHY: Kentucky & Ohio LEASE TERM: 15.0 years RENT ESCALATIONS: 1.5% / year DATE: Q4 2020 PROPE
Slide 19: Redevelopment
REDEVELOPMENT COMPLETED 19 PROJECTS TOTALING $14.4 MILLION AT A 16% INCREMENTAL YIELD RENT COMMENCEMENT: Q4 2020 PROPERTY TYPE: Auto Parts DEVELOPMENT TYPE: Ground Lease TOTAL INVESTMENT: $0.2 million INCREMENTAL YIELD: 47% GEOGRAPHY: Bloomfield, NJ RENT COMMENCEMENT: Q1 2020 PROPERTY TYPE: Other Re
Slide 20: T H H
T H H
Slide 21: Balance Sheet
BALANCE SHEET SIGNIFICANT LIQUIDITY AND FLEXIBLE CAPITAL STRUCTURE SUPPORT PORTFOLIO GROWTH OBJECTIVES ACCESS TO CAPITAL BBB- 29% 38% 5.0x o $19 million cash o $283 million Revolver capacity FITCH DEBT TO TOTAL DEBT TO TOTAL NET DEBT o $224 million ATM capacity RATED CAPITALIZATION ASSET VALUE TO EB
Slide 22: 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 23: 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 RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WH
Slide 24: Definitions and Reconciliations
CONVENIENCE AUTOMOTIVE RETAIL DEFINITIONS AND RECONCILIATIONS
Slide 25: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). In addition to revenue), the net amortization of above-market and below-market leases, adjustments measurements defined by accounting principles generally accepted in the United States of recorded for
Slide 26: 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 27: Reconciliation of Net Earnings to FFO and AFFO
RECONCILIATION OF NET EARNINGS TO FFO AND AFFO Three Months Ended June Six Months Ended June $ in thousands, except per share amounts 2021 2020 2021 2020 Net earnings $12,890 $10,973 $30,817 $23,673 Depreciation and amortization of real estate assets 8,648 7,325 17,085 14,422 Gain on dispositions of