Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (July 2017)
22 slides from Getty Realty's investor presentation, Jul 27, 2017
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: 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 roughly 75 service station
Slide 6: National Net Lease Portfolio
National Net Lease Portfolio 825 properties (739 fee, 86 leased) located in 25 states plus Washington, D.C. (1) 806 net lease properties 9 redevelopment properties 10 vacant properties 98.8% occupied (2) $32.4 million mortgage portfolio (9-9.5% yield) As of June 30, 2017 Occupancy calculation exclud
Slide 7: Investment Overview
Investment Overview
Slide 8: Convenience Store and Gasoline Station Properties
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: Sustainable cash flows supported by long-term triple-net leases
Sustainable cash flows supported by long-term triple-net leases Typically, annual rent escalations 1.5% - 2.0% and rent coverage ratios range from 1.0x – 2.0x As of June 30, 2017, unitary lease portfolio weighted average rent escalations of 1.6% and rental coverage of 1.9x ⁽¹⁾ Unitary tenant credit
Slide 10: Top Tenants: High-Quality, Diversified Tenant Base
Top 10 Tenants (2) High-Quality, Diversified Tenant Base Total annualized base rent (ABR): Credit rated tenants (38%) Unitary / master lease tenants (1) (56%) Individual / single asset tenants (6%) Rank Tenant % of ABR Rank Tenant % of ABR 1 * 20% 6 + 7% 2 + 18% 7 + 6% 3 + 12% 8 * 3% 4 + 9% 9 * 2% 5
Slide 11: 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 five properties in 2016 and 2017 YTD, respectively Asset recycling Sold 14 properties ($5 million) and eight properties ($2 million) i
Slide 12: Acquisitions
Acquisitions Acquisitions Year to Date Acquired fee simple interests in 10 convenience store and gasoline station properties for $18 million Weighted average cash return of 7.5% and a weighted average initial remaining lease term of nine years Expanded geographic exposure with entry in to Arizona an
Slide 13: Redevelopment Projects
Market Asset Type Anticipated Total Investment (1) Investment As Of 6/30/17 (1) Expected Completion (2) Active Projects White Plains, NY Retail $368 $333 2017 New Oxford, PA Convenience Store 561 268 2017 Howell, NJ Retail 549 46 2018 Millerton, NY Retail & QSR 943 61 2018 Phoenixville, PA Financial
Slide 14: Convenience store industry fundamentals
Number of convenience stores in service has remained steady over last 10 years (1) More than 154,000 properties (81% 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 grow
Slide 15: Financial Overview
Financial Overview
Slide 16: Income Growth, Scalable G&A
Income Growth, Scalable G&A AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO and for a reconciliation to Net Earnings, see Appendix or Item 2 of our Quarterly Report on Form 10-Q for the period ended June 30, 2017 Includes a net $0.8 million and $3.9 million
Slide 17: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Revolving Credit Facility $175 million Matures 2018 with 1-year option 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: 5.35% $75 million matures 2023 Se
Slide 18: Consistent Dividend Growth
Quarterly Dividends Declared per Share (1) Consistent Dividend Growth Excludes special dividends of $0.05, $0.14 and $0.22 per share in 4Q13, 4Q14 and 4Q15, respectively
Slide 19: 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 20: Appendix
Appendix
Slide 21: Reconciliation of Net Income to FFO and AFFO
Reconciliation of Net Income to FFO and AFFO AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO see Item 2 of our Quarterly Report on Form 10-Q for the period ended June 30, 2017 Includes a net $0.8 million and $3.9 million of environmental insurance reimburse
Slide 22: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA EBITDA and Adjusted EBITDA are non-GAAP measures