Slide 1: Convenience Automotive Retail Corporate Profile and Supplemental Information October 2024
CONVENIENCE AUTOMOTIVE RETAIL CORPORATE PROFILE and SUPPLEMENTAL INFORMATION OCTOBER 2024
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
Slide 3: Table of Contents
TABLE OF CONTENTS CORPORATE PROFILE SUPPLEMENTAL INFORMATION Business Update Page 4 Top Tenants Page 28 Company 5 Top Markets 29 Portfolio 11 Lease Expirations 30 Balance Sheet and Other 20 Rent Escalations 31 Definitions 24 Rent Coverage 32 Redevelopment Activity 33 Debt and Credit Metrics 34 Reven
Slide 4: Q3 2024 Update: Steady Execution Across All Facets of the Business
Q3 2024 UPDATE: STEADY EXECUTION ACROSS ALL FACETS OF THE BUSINESS o Year to date, invested $147.6 million at an 8.0% initial cash yield (1) INVESTMENT o Acquired 29 express tunnel car washes, 18 auto service centers, six c-stores, and three drive-thru QSRs ACTIVITY o More than $70 million of invest
Slide 5: Company
i AEA FEESE capuey
Slide 6: One of the Nation's Largest Owners of Freestanding Convenience and Automotive Retail Properties
ONE OF THE NATION’S LARGEST OWNERS OF FREESTANDING CONVENIENCE AND AUTOMOTIVE RETAIL PROPERTIES 1,108 42 $190M Properties States ABR PROPERTY TYPES LOCATIONS TENANTS Convenience Stores Nationwide Multi Store Operators Express Tunnel Car Washes High Density Metro Areas National and Regional Brands Au
Slide 7: Expertise in Originating, Underwriting, and Executing Real Estate Transactions
EXPERTISE IN ORIGINATING, UNDERWRITING, AND EXECUTING REAL ESTATE TRANSACTIONS IN OUR TARGETED RETAIL SECTORS INVESTMENT FOCUS TENANT RELATIONSHIPS o Highly fragmented retail sectors o Direct dialogue with growing retailers o Durable consumer business models o Align with tenant “buy & build” strateg
Slide 8: Growing Earnings and Dividends Per Share While Maintaining Portfolio Stability
GROWING EARNINGS AND DIVIDENDS PER SHARE, WHILE MAINTAINING PORTFOLIO STABILITY… AFFO PER SHARE DIVIDENDS PER SHARE $2.25 $1.74 $2.14 $1.66 $2.08 $1.58 $1.50 $1.94 $1.42 $1.80 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 OCCUPANCY RENT COLLECTIONS TENANT RENT COVERAGE (1) 99.0% 99.3% 99.5% 99.8
Slide 9: Diversifying Across Property Type, Geography and Tenant
…AND DIVERSIFYING ACROSS PROPERTY TYPE, GEOGRAPHY AND TENANT PROPERTY TYPE (% ABR) December 31, 2019 September 30, 2024 <1% 1% 1% 8% Convenience Stores + Car Wash <1% 15% in 2019 6% <1% Express Tunnel Car Washes <1% $117M $190M Auto Service Centers ABR 21% ABR + Auto Service Drive Thru QSRs in 2021
Slide 10: Demonstrated Capital Allocation and Balance Sheet Management Capabilities
DEMONSTRATED CAPITAL ALLOCATION AND BALANCE SHEET MANAGEMENT CAPABILITIES CAPITAL RAISED ($M) (1)(2) CAPITAL DEPLOYED ($M) $327 $133M unsettled $309 $70M assets $294 8.0% forward equity under contract $213 (3) $200 $149 $158 7.3% $145 7.2% $148 $120 $92 7.0% $86 6.8% 6.7% 2019 2020 2021 2022 2023 20
Slide 11: Portfolio
Slide 12: Freestanding Retail Properties Offering Essential Goods and Services
FREESTANDING RETAIL PROPERTIES OFFERING ESSENTIAL GOODS AND SERVICES CONVENIENCE & AUTOMOTIVE RETAIL REAL ESTATE PROPERTY TYPES PROPERTY ATTRIBUTES o Convenience Stores o New builds / latest prototypes o Express Tunnel Car Washes o Easy access o Auto Service Centers o High visibility – Tire & Batter
Slide 13: National Footprint with Concentrations in High Density Metropolitan Areas
NATIONAL FOOTPRINT WITH CONCENTRATIONS IN HIGH DENSITY METROPOLITAN AREAS 1,108 42 59% 68% FREESTANDING STATES TOP 50 MSAs CORNER MARKET SPOTLIGHT: AUSTIN, TX PROPERTIES LOCATIONS MSA Rank: 27 Population: 2.5 million 2020-23 Population Growth: 8.3% (1) GTY ABR (2.5% of total) $3.3M $1.4M Car Wash C-
Slide 14: Growing Convenience Retailers and Automotive Service Providers
GROWING CONVENIENCE RETAILERS AND AUTOMOTIVE SERVICE PROVIDERS TENANT PROFILE CREDIT ENHANCEMENTS MULTI-STORE OPERATORS SECTOR SELECTION $190 MILLION ABR o Scale and purchasing power o Essential retail businesses o Strong credit profiles o E-commerce and recession resistant 99.7% OCCUPIED o Growth o
Slide 15: Representative Investment: Convenience Stores
REPRESENTATIVE INVESTMENT: CONVENIENCE STORES INVESTMENT SUMMARY Transaction Type: Sale Leaseback # of Properties: 9 Transaction Value: $57.0 million Location: Texas + Southeast Lease Term: 15.0 years Rent Escalation: 10% / 5 years UW Rent Coverage (1): 2.9x INVESTMENT HIGHLIGHTS TENANT PROFILE New-
Slide 16: Representative Investment: Express Tunnel Car Washes
REPRESENTATIVE INVESTMENT: EXPRESS TUNNEL CAR WASHES INVESTMENT SUMMARY Transaction Type: Development Funding -> SLB # of Properties: 8 Transaction Value: $41.0 million Location: Washington, D.C. + Southeast Lease Term: 15.0 years Rent Escalation: 2.0% annual UW Rent Coverage (1): 3.3x INVESTMENT HI
Slide 17: Representative Investment: Auto Service Centers
REPRESENTATIVE INVESTMENT: AUTO SERVICE CENTERS INVESTMENT SUMMARY Transaction Type: Sale Leaseback # of Properties: 9 Transaction Value: $22.3 million Location: Southeast Lease Term: 15.0 years Rent Escalation: 2.0% annual UW Rent Coverage (1): 3.1x INVESTMENT HIGHLIGHTS TENANT PROFILE Stabilized p
Slide 18: Representative Investment: Drive Thru Quick Service Restaurants
REPRESENTATIVE INVESTMENT: DRIVE THRU QUICK SERVICE RESTAURANTS INVESTMENT SUMMARY Transaction Type: Sale Leaseback # of Properties: 2 Transaction Value: $3.0 million Locations: Wisconsin & South Dakota Lease Term: 15.0 years Rent Escalations: 10% / 5 years UW Rent Coverage (1): 4.0x INVESTMENT HIGH
Slide 19: Completed Redevelopment Projects Totaling $22.3 Million at a 15% Incremental Yield
COMPLETED 32 REDEVELOPMENT PROJECTS TOTALING $22.3 MILLION AT A 15% INCREMENTAL YIELD PROPERTY TYPE: Auto Parts DEVELOPMENT TYPE: Ground Lease TOTAL INVESTMENT: $1.2 million INCREMENTAL YIELD: 13.0% LOCATION: Brooklyn, NY PROPERTY TYPE: Drive Thru Retail DEVELOPMENT TYPE: Ground Lease TOTAL INVESTME
Slide 20: Balance Sheet and Other
Slide 21: Ample Liquidity and Flexible Capital Structure Support Portfolio Growth Objectives
AMPLE LIQUIDITY AND FLEXIBLE CAPITAL STRUCTURE SUPPORT PORTFOLIO GROWTH OBJECTIVES ACCESS TO CAPITAL BBB- 5.0x 36% 32% o $133 million unsettled forward equity o $75 net new unsecured notes (1) FITCH NET DEBT DEBT TO TOTAL DEBT TO TOTAL o $287 million Revolver capacity RATED TO EBITDA ASSET VALUE CAP
Slide 22: Peer Comparison Implies Getty Valuation May Be Disconnected from Performance
PEER COMPARISON IMPLIES GETTY VALUATION MAY BE DISCONNECTED FROM UNDERLYING COMPANY PERFORMANCE AFFO PER SHARE GROWTH DIVIDEND PER SHARE GROWTH NET DEBT / EBITDA (1) FY2019 - FY2023 FY2023 FY2019 - FY2023 FY2023 4.0x 10.0% 7.0% 8.5% 6.0% 4.4x GTY 7.0% 5.0% GTY 4.8x GTY GTY 5.5% 4.0% 5.2x GTY 4.0% 3.
Slide 23: Commitment to Good Corporate Citizenship and Business Practices
COMMITMENT TO GOOD CORPORATE CITIZENSHIP AND BUSINESS PRACTICES THAT SERVE ALL 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 maintaining high of our assets and
Slide 24: Definitions
CONVENIENCE AUTOMOTIVE RETAIL DEFINITIONS
Slide 25: 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
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: Supplemental Information
CONVENIENCE AUTOMOTIVE RETAIL SUPPLEMENTAL INFORMATION
Slide 28: Top Tenants
TOP TENANTS TOP 20 TENANTS Sector % of Sector % of # Tenant Sector Rank (1) ABR # Tenant Sector Rank (1) ABR 1 ARKO C-Store 6 13.0% 11 Capitol Petroleum C-Store n/a 2.8% Auto 2 Global C-Store 21 11.4% 12 NR Automotive n/a 2.4% Service 3 United Pacific C-Store 14 8.6% 13 Zips Car Wash Car Wash 5 1.9%
Slide 29: Top Markets
TOP MARKETS TOP 20 METRO AREAS TOP 20 STATES # Metro Area % of ABR Top 50 MSA # State % of ABR 1 New York / New Jersey 14.3% 1 New York 16.1% 2 Washington D.C. 6.8% 2 Texas 10.7% 3 Boston 4.6% 3 Virginia 5.5% 4 Columbia (SC) 3.8% 4 Massachusetts 5.2% 5 Las Vegas 3.2% 5 South Carolina 5.1% 6
Slide 30: Lease Expirations
LEASE EXPIRATIONS LEASE EXPIRATION SCHEDULE (% of ABR) o 99.7% occupied 57.5% o 10.1 years WALT 9.5% 6.7% 6.6% 5.5% 4.6% 4.3% 3.0% 0.4% 0.6% 1.6% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034+ 30
Slide 31: Rent Escalations
RENT ESCALATIONS RENT ESCALATIONS (% of ABR) o 99% subject to rent escalation 66.7% o 1.7% annualized rent escalation rate 24.1% 7.6% 0.2% 0.3% 1.1% Annual Every 3 or 4 Years Every 5 Years Every 3 Years Every 5 Years None Fixed = 91.0% CPI = 7.9% 31
Slide 32: Rent Coverage
RENT COVERAGE RENT COVERAGE (% of ABR) o 71% site level reporting o 2.6x tenant rent coverage 22.8% 21.9% 12.6% 11.4% 11.2% 9.8% 6.6% 3.7% 0.0% < 1.00x 1.00x - 1.49x 1.50x - 1.99x 2.00x - 2.49x 2.50x - 2.99x > 3.00x Not Yet Public Company No Reporting Available Reporting Site level reporting Note: S
Slide 33: Redevelopment Activity
REDEVELOPMENT ACTIVITY IN-PROGRESS REDEVELOPMENTS ($000s) Anticipated Total Investment as of Expected Market Property Type Investment (1) 9/30/2024 Completion Philadelphia, PA Auto Service $ 1,294 $ 239 2025 New York/New Jersey Auto Service 597 53 2026 New York/New Jersey Auto Service 525 4 2027 New
Slide 34: Debt and Credit Metrics
DEBT AND CREDIT METRICS UNSECURED CREDIT FACILITIES CAPITALIZATION AND LEVERAGE Revolver Term Loan Market value of common equity $ 1,768.8 Capacity / drawn $300.0 / $12.5 $150.0 / $150.0 Total debt outstanding 837.5 Pricing Adj. SOFR + 130 bps 6.13% Total capitalization $ 2,606.3 Maturity October 20
Slide 35: Revenues from Rental Properties and Property Costs
REVENUES FROM RENTAL PROPERTIES AND PROPERTY COSTS REVENUES FROM RENTAL PROPERTIES $ in thousands Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Rental Income Base rent (1) $ 46,919 $ 40,927 $ 136,344 $ 119,325 Additional rent (2) 441 317 802 881 Deferred rental
Slide 36: FFO and AFFO Reconciliation
FFO AND AFFO RECONCILIATION RECONCILIATION OF NET EARNINGS TO FFO AND AFFO $ in thousands, except per share amounts Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net earnings $ 15,335 $ 16,033 $ 48,769 $ 43,639 Depreciation and amortization of real estate asset
Slide 37: Getty Realty Corp. contact
CONVENIENCE AUTOMOTIVE RETAIL Getty Realty Corp. 292 Madison Avenue 9th Floor New York, NY 10017 646-349-6000