Getty Realty Corporation · NYSE:GTY

Getty Realty — Q1 2024 Earnings Presentation

36 slides from Getty Realty's earnings presentation, Apr 26, 2024

  1. Slide 1: Convenience Automotive Retail Corporate Profile April 2024

    CONVENIENCE AUTOMOTIVE RETAIL CORPORATE PROFILE APRIL 2024

  2. 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

  3. 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

  4. Slide 4: Company

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  5. Slide 5: Getty at a Glance

    GETTY AT A GLANCE NET LEASE REIT SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL REAL ESTATE 1,108 $2.3 billion BBB- Properties Enterprise Fitch 42 Value Rated States + DC C ONVENIENCE AUTOMOTIVE RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WHERE CONSUMERS SPEND MONEY IN THEIR CARS O

  6. 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 99.7% OCCUPIED o Essential, e-commerce and recession o Freestanding properties on corner resistant, retail businesses lo

  7. Slide 7: Q1 2024 Business Update

    Q1 2024 BUSINESS UPDATE PRODUCTIVE START TO THE YEAR AS BALANCE SHEET AND PORTFOLIO REMAIN HEALTHY o Invested approximately $41 million, including acquisitions and development funding INVESTMENT o Acquired 12 express tunnel car washes, seven auto service centers, two drive-thru QSRs, and one c-store

  8. 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

  9. Slide 9: Portfolio

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  10. 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

  11. Slide 11: Industry: Resilient Convenience Stores Continue to Evolve

    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.

  12. Slide 12: Industry: Large and Growing Base of Vehicles in Operation

    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

  13. Slide 13: Locations

    LOCATIONS NATIONAL FOOTPRINT WITH CONCENTRATIONS IN HIGH DENSITY METROPOLITAN AREAS % of Top 50 1,108 42 68% 60% Rank Metro Area ABR MSA 1 New York City 15%  FREESTANDING STATES CORNER TOP 50 MSAs PROPERTIES + D.C. LOCATIONS 2 Washington D.C. 7%  3 Boston 5%  4 Columbia (SC) 4% 5 Las Vegas 3%  6

  14. Slide 14: Tenants and Leases

    TENANTS AND LEASES INSTITUTIONAL OPERATORS PRIMARILY UNDER UNITARY LEASES 45  925  86% 1.7% 2.6x 94% 9.2 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)

  15. Slide 15: Capabilities

    CAPABILITIES 1

  16. 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

  17. 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

  18. Slide 18: Acquisitions

    ACQUISITIONS ACQUIRED 427 PROPERTIES FOR $1.2 BILLION SINCE JANUARY 2016… PROPERTY TYPE: Car Wash TRANSACTION VALUE: $41 million TRANSACTION TYPE: Development Funding + Sale Leaseback # OF PROPERTIES: 8 GEOGRAPHY: Washington D.C. + Southeast U.S. LEASE TERM: 15.0 years RENT ESCALATIONS: 1.75% annual

  19. Slide 19: Acquisitions

    ACQUISITIONS …ENHANCING TENANT, PROPERTY TYPE AND GEOGRAPHIC DIVERSIFICATION PROPERTY TYPE: Drive-Thru QSR TRANSACTION VALUE: $3 million TRANSACTION TYPE: Sale Leaseback # OF PROPERTIES: 2 GEOGRAPHY: Multiple LEASE TERM: 15.0 years RENT ESCALATIONS: 10% / 5 years PROPERTY TYPE: Convenience & Gas TRA

  20. Slide 20: Redevelopment

    REDEVELOPMENT COMPLETED 31 PROJECTS TOTALING $20.2 MILLION AT A 16% INCREMENTAL YIELD RENT COMMENCEMENT: Q4 2023 PROPERTY TYPE: Auto Parts DEVELOPMENT TYPE: Ground Lease TOTAL INVESTMENT: $1.2 million INCREMENTAL YIELD: 13% GEOGRAPHY: Brooklyn, NY Representative image. RENT COMMENCEMENT: Q1 2023 PRO

  21. Slide 21: Corporate

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  22. Slide 22: Balance Sheet

    BALANCE SHEET AMPLE LIQUIDITY AND FLEXIBLE CAPITAL STRUCTURE SUPPORT PORTFOLIO GROWTH OBJECTIVES ACCESS TO CAPITAL BBB- 5.1x 36% 35% o $32 million unsettled forward equity o $75 million undrawn Term Loan (1) FITCH NET DEBT DEBT TO TOTAL DEBT TO TOTAL o $250 million Revolver capacity (1) RATED TO EBI

  23. Slide 23: Corporate Responsibility

    CORPORATE RESPONSIBILITY COMMITTED TO GOOD CORPORATE CITIZENSHIP AND BUSINESS PRACTICES THAT SERVE ALL OF OUR STAKEHOLDERS ENVIRONMENTAL STEWARDSHIP 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 main

  24. 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 RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WH

  25. Slide 25: Supplemental Information

    CONVENIENCE AUTOMOTIVE RETAIL SUPPLEMENTAL INFORMATION

  26. Slide 26: Lease Expirations

    LEASE EXPIRATIONS LEASE EXPIRATION SCHEDULE (% of ABR) o 99.7% occupied o 9.2 years WALT 44.0% 12.1% 10.0% 8.0% 6.9% 4.8% 5.5% 4.3% 3.1% 0.6% 0.7% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034+ Note: All data as of March 31, 2024. 26

  27. Slide 27: Tenant Reporting & Rent Coverage

    TENANT REPORTING & RENT COVERAGE TENANT REPORTING & RENT COVERAGE (% of ABR) o 70% site level reporting o 2.6x tenant rent coverage 25.0% 23.7% 14.5% 13.1% 9.3% 7.9% 6.5% 0.0% < 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

  28. Slide 28: Rent Escalations

    RENT ESCALATIONS RENT ESCALATIONS (% of ABR) o 99% subject to rent escalation o 1.7% annualized rent escalation rate 64.4% 25.6% 8.2% 0.3% 0.3% 1.2% Annual Every 3 or 4 Years Every 5 Years Every 3 Years Every 5 Years None Fixed = 90.3% CPI = 8.5% Note: All data as of March 31, 2024. 28

  29. Slide 29: Redevelopment Activity

    REDEVELOPMENT ACTIVITY IN-PROGRESS REDEVELOPMENTS ($000s) Anticipated Total Investment as of Market Property Type Investment (1) 3/31/2024 Expected Completion Providence, RI Drive Thru Retail $ 2,043 $ 1,007 2024 Philadelphia, PA Auto Service 1,294 180 2025 Total Active Projects $ 3,337 $ 1,187 RECE

  30. 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 March 31, 2024 2023 Rental Income Base rent (1) $ 43,944 $ 38,792 Additional rent (2) 112 253 Deferred rental revenue (straight-line rent) 1,546 1,194 Amortization of above and below

  31. Slide 31: Debt and Credit Metrics

    DEBT AND CREDIT METRICS UNSECURED CREDIT FACILITIES CAPITALIZATION AND LEVERAGE Revolver Term Loan Market value of common equity $ 1,469.0 Capacity / drawn (1) $300.0 / $50.0 $150.0 / $75.0 Total debt outstanding 800.0 Pricing Adj. SOFR + 130 bps 6.13% Total capitalization $ 2,269.0 Maturity October

  32. Slide 32: Definitions and Reconciliations

    CONVENIENCE AUTOMOTIVE RETAIL DEFINITIONS AND RECONCILIATIONS

  33. Slide 33: Non-GAAP Financial Measures

    NON-GAAP FINANCIAL MEASURES Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). In addition The Company believes that FFO and AFFO are helpful to analysts and investors in to measurements defined by accounting principles generally accepted in the United measuring the Company’s per

  34. 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

  35. 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 March 31, 2024 2023 Net earnings $ 16,723 $ 14,082 Depreciation and amortization of real estate assets 12,652 10,428 Gain on dispositions of real estate (1,044) (587) Impairments 1,280 522 Fund

  36. Slide 36: Getty Realty Corp. contact

    CONVENIENCE AUTOMOTIVE RETAIL Getty Realty Corp. 292 Madison Avenue 9th Floor New York, NY 10017 646-349-6000

Getty Realty — Q1 2024 Earnings Presentation on 6ix