Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (October 2016)
22 slides from Getty Realty's investor presentation, Oct 27, 2016
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 835 properties (743 fee simple, 92 leased) located in 23 states plus Washington, D.C. (1) 800 net lease portfolio properties 35 transitional properties 97% occupied $33.3 million mortgage portfolio (9-9.5% yield) As of September 30, 2016
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: Stable Long-Term Leases with Rent Escalators
69% of contractual annual rent attributable to leases with initial terms expiring in 2026 or beyond Sustainable cash flows supported by long-term triple-net leases Contractual rent increases of 1.0% – 2.0% with unitary lease portfolio weighted average of 1.6% Rental coverage of 1.5x – 2.0x Unitary t
Slide 10: High-Quality, Diversified Tenant Base
Top 10 Tenants (1) High-Quality, Diversified Tenant Base Total annualized base rent: Credit rated tenants (36%) Unitary tenants (56%) Individual tenants (8%) Rank Tenant % of ABR Rank Tenant % of ABR 1 * 21% 6 + 7% 2 * 18% 7 + 6% 3 + 11% 8 * 3% 4 + 9% 9 * 2% 5 * 8% 10 + 2% Based on GAAP annualized b
Slide 11: Getty Growth Platform
Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Remaining transitional properties create upside Repositioning continues to drive occupancy increases Net positive to portfolio profitability Demonstrated ability to execute on re
Slide 12: Convenience Store Industry Stable Operator Performance
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 63% of stores are single-store chains Stable Operator Performance (1) Sales and pre-tax profits have grown at 4.5% and 8.5% CAGR sin
Slide 13: Large Market Opportunity
Large Market Opportunity Expertise in underwriting unit level and tenant credit Appraising underlying real estate to support replacement value Established record of diligencing environmental site conditions Strict adherence to proprietary underwriting standards The Getty Competitive Advantage Estima
Slide 14: Financial Overview
Financial Overview
Slide 15: 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 Item 2 of our Quarterly Report on Form 10-Q for the period ended September 30, 2016. Margins exclude items detailed in footnotes 2 and
Slide 16: Strong Balance Sheet
Strong Balance Sheet Revolving Credit Facility $175 million senior unsecured Matures in 2018 and has a one-year extension option LIBOR +195 to 325 bps based on Company leverage Bank Term Loan $50 million senior unsecured Matures in 2020 LIBOR +190 to 320 bps based on Company leverage Prudential Seri
Slide 17: Consistent Dividend Growth
16 Quarterly Dividends Declared per Share Consistent Dividend Growth Excludes special dividends of $0.05, $0.14 and $0.22 per share in Q4 2013, Q4 2014 and Q4 2015, respectively.
Slide 18: 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 19: Appendix
Appendix
Slide 20: Acquisition Case Study – United Oil
Acquisition Case Study – United Oil $214.5 million Acquisition of 77 Properties in June 2015 Financed with a combination of long-term fixed rate debt and credit facility borrowings Tenant is United Oil, a leading regional convenience store and gasoline station operator Operates ~400 locations in the
Slide 21: Redevelopment Case Study – MattressFIRM
Salem, New Hampshire Property acquired in 1986 and previously leased to Getty Petroleum Marketing, Inc. Re-leased in 2012 Vacant as of 2015 Property Attributes Well located retail location at traffic corner Several large shopping centers with major retailers adjacent to the site Surrounded by other
Slide 22: 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 6 (Selected Financial Data) in the Annual Report on our Form 10-K for the year ended December 31, 2015. Three months ended September 30, Nine months ended