Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (February 2019)
22 slides from Getty Realty's investor presentation, Feb 27, 2019
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 Store & Gasoline Station Properties ⁽¹⁾ 1 Track Record of Partnering with Tenants in a Healthy and Consolidating Retail Sector Multiple Growth Channels Flexible / Low Leverage Balance Sheet Supports Growth $1.8bn Enterprise Value GT
Slide 4: National Net Lease Portfolio
National Net Lease Portfolio 933 Properties Across 30 States 9%+ $34mm Mortgage Portfolio $119mm ABR ⁽¹⁾ 99% Occupancy ⁽³⁾ 7% AFFO / Share CAGR ⁽²⁾ 60% ABR in Top 25 MSAs ~10 years Weighted Avg. Lease Term ⁽⁴⁾ 2.0x Unit Level Rent Coverage ⁽⁴⁾ 73% On Corner Locations Based on GAAP annualized base re
Slide 5: Convenience Store and Gasoline Station Properties
Convenience Store and Gasoline Station Properties Stable, yet growing sector 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 egress High Growth
Slide 6: Diversified Tenant Base with High Quality Brands
Diversified Tenant Base with High Quality Brands Getty’s Top 15 Tenants (1) Nationally Recognized Fuel Brands (2) Based on GAAP annualized base rent (ABR) as of December 31, 2018. All trademarks, service marks, trade names, brands and logos are the property of their respective owners. Rank Market %
Slide 7: Located in High Density Metropolitan Markets
Rank Market % of ABR Top 25 Market (2) 9 Hartford, CT 2% 10 Honolulu 2% 11 Richmond, VA 2% 12 Riverside, CA 2% ü 13 Manchester, NH 2% 14 Seattle 1% ü 15 Los Angeles 1% ü Other 27% Located in High Density Metropolitan Markets Based on cash annualized base rent (ABR), as of December 31, 2018. Core Bas
Slide 8: 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 2.0x ⁽¹⁾ Tenant credit visi
Slide 9: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation Includes branded QSRs and convenience stores with unbranded fresh food offerings. Includes non-gas automotive-related retailers, free-standing QSRs and regional retailers. Portfolio of well-positioned properties at prominent corner locations Key Attributes Dri
Slide 10: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets1 (510 properties) Lot Size Acquired Assets1 (423 properties) Total Portfolio (933 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 acres > 1
Slide 11: Convenience Stores Dominate Retail Landscape
Number of convenience stores in service has remained steady over the last 10 years (1) More than 155,000 properties, 79% selling fuel, represents 34% of all retail outlets Stable Operator Performance (1) Sales and gross profits have grown at 4.2% and 5.5% CAGR since 2003, respectively In-store sales
Slide 12: Getty Growth Platform
Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Asset recycling Sold 12 properties ($4 million) and 10 properties ($7 million) in 2017 and 2018, respectively Leasing activity Leased nine properties and one property in 2017 and
Slide 13: Acquisitions Ten-Year Track Record
Acquisitions Ten-Year Track Record Acquired 423 properties for $855 million Entered 11 new states and added 16 new tenants 2017 Acquisitions Acquired 103 properties for $214 million Weighted average cash return of 7.3% and a weighted average initial remaining lease term of 14 years Expanded geograph
Slide 14: Portfolio Acquisition Case Studies
Portfolio Acquisition Case Studies Purchase price – $68 million Closing date – October 3, 2017 Properties – 33 convenience stores and five Burger Kings Lot & building size – 1.7 acres and 2,900 sq. ft. Geography – Columbia, SC Tenant – Largest convenience and gasoline station operator in the Republi
Slide 15: Redevelopment Projects
Market Asset Type Anticipated Total Investment (1) Investment As Of 12/30/18 Expected Completion (2) Active Projects Lancaster, PA Convenience & Gas 427 103 2019 Bronx, NY Retail 372 210 2019 Bronx, NY Quick Service Restaurant 1,540 568 2019 Brooklyn, NY Retail 229 164 2019 Philadelphia, PA Retail 3
Slide 16: Income Growth, Scalable G&A
Income Growth, Scalable G&A G&A ($ thousands) AFFO ($ thousands) (1) 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 26, 2019. For a reconciliation of Ne
Slide 17: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Revolving Credit Facility $250 million Matures 2022 with 1-year option, subject to certain conditions LIBOR +150 to 230 bps Bank Term Loan $50 million Matures 2023 LIBOR +145 to 225 bps Senior Unsecured Notes Series A: 6.0% $100 million matures 2021 Series B: 5.
Slide 18: Consistent Dividend Growth
Quarterly Dividends Declared per Share (1) Consistent Dividend Growth Excludes special dividend of $0.22 per share in 4Q15.
Slide 19: 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 4 Cash Flow and Div
Slide 20: Appendices
Appendices
Slide 21: 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 February 26, 2019.
Slide 22: 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: Company grows its portfolio to 75 service stations and