Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (July 2022)
36 slides from Getty Realty's investor presentation, Jul 27, 2022
Slide 1: Corporate Profile: Convenience Automotive Retail, July 2022
CORPORATE PROFILE CONVENIENCE AUTOMOTIVE RETAIL JULY 2022 Exhibit 99.1
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: Corporate Profile
Corporate Profile Company Page 4 Portfolio. 9 Capabilities 15 Corporate 21 Supplemental Information 25 Definitions and Reconciliations 32 Getty Realty
Slide 4: Company
CompPany a wal GMa
Slide 5: Getty at a Glance
GETTY AT A GLANCE 5 Note: Enterprise Value based on market value of common equity as of July 25, 2022 and net debt as of June 30, 2022. Portfolio data as of June 30, 2022. $1.9 billion Enterprise Value 1,024 Properties 38 States + DC BBB- Fitch Rated WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTI
Slide 6: Investment Highlights and Financial Snapshot
6 Note: Portfolio Snapshot as of June 30, 2022. Financial Snapshot as of June 30, 2022, except Dividend Yield as of July 25, 2022. ABR = annual base rent. WALT = weighted average lease term. FINANCIAL SNAPSHOT INVESTMENT HIGHLIGHTS STABLE PORTFOLIO OF ESSENTIAL USE ASSETS WITH ATTRACTIVE GROWTH OPPO
Slide 7: Recent News
RECENT NEWS 7 HEALTHY PORTFOLIO AND STRONG Balance SHEET PROVIDE STABILITY AS TRANSACTION AND CAPITAL MARKETS ADJUST to CURRENT ENVIRONMENT Note: Portfolio and Balance Sheet data as of June 30, 2022. 1) While the Company has fully executed agreements for each transaction, the timing and amount of ea
Slide 8: Expanding Our Platform, Growing Our Portfolio and Increasing Profitability
PLATFORM CAPABILITIES PROFITABILITY Expanding investment opportunities Improving access to and cost of capital Increasing profit margins Growing AFFO and dividends per share BUSINESS PLAN EXECUTION 8 Expanding OUR PLATFORM, Growing our Portfolio AND Increasing PROFITABILITY 5.4% CAGR 5.6% CAGR 15.3
Slide 9: Portfolio
PORTFOLIO
Slide 10: Real Estate: Freestanding Properties Offering Essential Goods and Services
REAL ESTATE 10 FREESTANDING PROPERTIES OFFERING ESSENTIAL GOODS AND SERVICES TIED TO CONVENIENCE & AUTOMOBILITY CONVENIENCE & AUTOMOTIVE RETAIL REAL ESTATE RETAIL SECTORS Convenience & Gas Car Wash Auto Service Tire & Battery Oil & Maintenance Auto Parts Drive Thrus REAL ESTATE ATTRIBUTES 3,000 - 5,
Slide 11: Industry: Resilient Convenience Stores Continue to Evolve
INDUSTRY 11 RESILIENT CONVENIENCE STORES CONTINUE TO EVOLVE WITH INCREASINGLY SOPHISTICATED RETAIL OPERATIONS Note: All data and charts sourced from the NACS State of the Industry Report of 2021 data. 1) Represents percent of convenience shoppers with e-commerce memberships. COMMENTARY Multi-store o
Slide 12: Industry: Large and Growing Base of Vehicles in Operation
INDUSTRY 12 LARGE AND GROWING BASE OF VEHICLES IN OPERATION Supports THE BROADER AUTOMOTIVE RETAIL SECTOR Note: All data sourced from the 2023 Autocare Factbook. Automotive Maintenance includes oil and lubricants, brakes, tires, transmission, heating and cooling, electrical, mechanical and exhaust,
Slide 13: Locations: National Footprint with Concentrations in High Density Metro Areas
LOCATIONS 13 NATIONAL FOOTPRINT WITH CONCENTRATIONS IN HIGH DENSITY METROPOLITAN AREAS Note: All data as of June 30, 2022.
Slide 14: Tenants and Leases
TENANTS AND LEASES 14 INSTITUTIONAL OPERATORS PRIMARILY UNDER UNITARY LEASES Note: All data except Sector Rank as of June 30, 2022. 1) Includes 64% of ABR subject to site level reporting requirements and an additional 27% of ABR subject to public company reporting requirements. 2) Refers to “CSP ‘s
Slide 15: Capabilities
CAPABILITIES “2
Slide 16: Investment Approach
INVESTMENT APPROACH 16 MACRO PERSPECTIVES SUPPORTED BY comprehensive TRANSACTION UNDERWRITING AND LEASE STRUCTURING TRANSACTION UNDERWRITING Real estate attributes Market characteristics Site level financial analysis Tenant credit analysis Environmental due diligence LEASE STRUCTURING Triple net lea
Slide 17: Platform: Broad Capabilities, Targeted Investments
PLATFORM 17 BROAD CAPABILITIES, TARGETED INVESTMENTS ACQUISITIONS Sale leasebacks Forward purchases Programmatic relationships Marketed transactions FULL SERVICE REAL ESTATE COMPANY SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL PROPERTIES REDEVELOPMENT Single tenant retail Ground leases Build to
Slide 18: Acquisitions: $785 Million Since January 2016
ACQUISITIONS 18 ACQUIRED 317 PROPERTIES FOR $785 MILLION SINCE January 2016… 1) We provided development funding for four properties which we expect to acquire via sale leaseback transactions at the end of the construction period, including two properties which were acquired in 2021.
Slide 19: Acquisitions: Enhancing Tenant, Property Type and Geographic Diversification
ACQUISITIONS 19 …ENHANCING TENANT, PROPERTY TYPE AND GEOGRAPHIC DIVERSIFICATION 1) Rent escalations begin in year 3 of the lease. 2) Next rent escalation occurs in November 2022.
Slide 20: Redevelopment: Completed Projects at 18% Incremental Yield
REDEVELOPMENT 20 COMPLETED 24 PROJECTS TOTALING $15.6 million AT An 18% INCREMENTAL YIELD RENT COMMENCEMENT: 2021 (four sites) Property Type: Convenience & Gas DEVELOPMENT Type: Ground Leases TOTAL INVESTMENT: $0.8 million INCREMENTAL yield: 42% Geography: Texas (3) + Maryland (1) CURRENT PIPELINE I
Slide 21: Corporate
(GORPORATE
Slide 22: Balance Sheet: Ample Liquidity and Flexible Capital Structure
BALANCE SHEET 22 AMPLE LIQUIDITY AND FLEXIBLE CAPITAL STRUCTURE SUPPORT PORTFOLIO GROWTH Objectives Note: All data as of June 30, 2022, except Debt to Total Capitalization and Summary Capital Structure based on market value of common equity as of July 25, 2022. 1) Pursuant to the private placement o
Slide 23: Corporate Responsibility
CORPORATE RESPONSIBILITY 23 COMMITTED TO GOOD CORPORATE CITIZENSHIP AND BUSINESS PRACTICES THAT SERVE ALL OF OUR STAKEHOLDERS ENVIRONMENTAL PRACTICES CORPORATE GOVERNANCE We place a high priority on the protection of our assets and the environment Our team includes environmental experts who conduct
Slide 24: Summary
24 SUMMARY WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WHERE CONSUMERS SPEND MONEY IN THEIR CARS OR ON THEIR CARS STABLE PORTFOLIO OF ESSENTIAL USE ASSETS WITH ATTRACTIVE GROWTH OPPORTUNITIES
Slide 25: Supplemental Information
SUPPLEMENTAL INFORMATION CONVENIENCE AUTOMOTIVE RETAIL
Slide 26: Lease Expirations
LEASE EXPIRATIONS 26 Note: All data as of June 30, 2022. LEASE EXPIRATION SCHEDULE (% of ABR) 99.4% occupied 8.6 years WALT
Slide 27: Tenant Reporting & Rent Coverage
TENANT REPORTING & RENT COVERAGE 27 Note: Site level rent coverage as of June 30, 2022 is calculated one quarter in arrears based on trailing twelve month financial information provided by tenants. 1) Tenants subject to site level reporting requirements, but data is not yet available. TENANT REPORTI
Slide 28: Rent Escalations
RENT ESCALATIONS 28 Fixed = 88.5% CPI = 10.3% RENT ESCALATIONS (% of ABR) 99% subject to rent escalation 1.6% annualized rent escalation rate Note: All data as of June 30, 2022.
Slide 29: Redevelopment Activity
REDEVELOPMENT ACTIVITY 29 Note: No assurance can be given that redevelopment projects will be completed in the time or on the budget expected, or at all. 1) Total investment includes development costs, termination/recapture fees, leasing commissions and other costs, as applicable. In-Progress Redeve
Slide 30: Revenues from Rental Properties and Property Costs
Revenues from rental properties AND PROPERTY COSTS 30 Revenues from Rental Properties Property Costs 1) Includes minimum base rental payments due under operating and direct financing leases. 2) Includes variable rental payments from percentage rents, fuel income and other ancillary income, as applic
Slide 31: Debt and Credit Metrics, Q2 2022 EBITDA Reconciliation
31 Note: Dollars in millions. All data as of June 30, 2022, except market value of common equity as of July 25, 2022. REVOLVER Unsecured notes DEBT AND CREDIT METRICS CREDIT AGREEMENT METRICS & COVENANTS CAPITALIZATION and LEVERAGE Q2 2022 EBITDA RECONCILIATION
Slide 32: Definitions and Reconciliations
DEFINITIONS AND RECONCILIATIONS CONVENIENCE AUTOMOTIVE RETAIL
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures 33 Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). In addition to measurements defined by accounting principles generally accepted in the United States of America (“GAAP”), the Company also focuses on Funds From Operations (“FFO”) and Adjusted Funds
Slide 34: Other Metrics and Definitions
Other Metrics and Definitions 34 Annual Base Rent (ABR). Contractually specified annual base rent in effect for all leases that have commenced as of the date noted, including those accounted for as direct financing leases. Annual Rent Escalations. Weighted average contractual rent increases per year
Slide 35: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO 35 1) Net earnings and FFO for the three and six months ended June 30, 2022 included a $16,333 credit related to the removal of environmental remediation obligations at certain properties. See the Company’s earnings release filed on Form 8-K on April 27
Slide 36: Getty Realty Corp. contact details
Getty Realty Corp. 292 Madison Avenue 9th Floor New York, NY 10017 646-349-6000 CONVENIENCE AUTOMOTIVE RETAIL