Getty Realty Corporation · NYSE:GTY
Getty Realty — Q4 2020 Earnings Presentation
23 slides from Getty Realty's earnings presentation, Feb 24, 2021
Slide 1: Investor Presentation
(Getty Realty ) Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 perfor
Slide 3: Getty Realty at a Glance
Getty Realty at a Glance 1 Net Lease REIT Specializing in Convenience & Gas and Other Automotive Properties ⁽¹⁾ GTY $1.7bn 5.5% NYSE Ticker Symbol Enterprise Value Dividend Yield 2 Track Record of Partnering with Tenants in Healthy and Consolidating Retail Sectors 31 Unitary / 117 Individual Establi
Slide 4: COVID-19 Impact
COVID-19 Impact Getty’s highest near-term priority continues to be with the health and safety of its employees, tenants and the communities where the Company owns properties The Company is continuously monitoring the COVID-19 pandemic and its potential impact on its tenants, operations and financial
Slide 5: National Net Lease Portfolio
National Net Lease Portfolio $127mm 65% Annualized Base 959 Properties Across 35 States ABR in Rent (“ABR”) (1) Top 50 MSAs 5.6% 71% AFFO / Share On Corner CAGR (2) Locations 9%+ 9.5 years $11mm Mortgage Weighted Avg. Portfolio Lease Term ⁽⁴⁾ 99%+ 2.6x Unit Level Occupancy (3) Rent Coverage ⁽⁴⁾ 1) A
Slide 6: Well-Positioned Net Lease Portfolio
Well-Positioned Net Lease Portfolio Attractive Portfolio that is Difficult to Replicate Convenience Store, Gasoline Station and Other New Paltz, NY Automotive-Related Properties — Stable, yet growing sectors — Institutional quality tenant base Urban Infill Markets — Densely populated areas — High ba
Slide 7: Diversified Tenant Base with High Quality Brands
Diversified Tenant Base with High Quality Brands Getty’s Top 15 Tenants (1) % of Public % of Public Rank Market Rank Market ABR Company ABR Company 1 ARKO 16% 9 Capitol Petroleum 4% 2 Global 15% 10 Zips Car Wash 3% 3 United Oil 14% 11 BP 2% 4 Chestnut Petroleum 8% 12 Aloha 2% 5 Applegreen 7%
Slide 8: Located in High Density Metropolitan Markets
Located in High Density Metropolitan Markets Getty’s Top 15 Markets (1) (2) % of Top 50 % of Top 50 Rank Market Rank Market ABR MSA (2) ABR MSA (2) 1 New York 21% 9 Phoenix 2% 2 Washington D.C. 9% 10 Dallas-Fort Worth 2% 3 Boston 6% 11 Los Angeles 2% 4 Columbia, SC 5% 12 San Antonio 2%
Slide 9: Stable Long-Term Leases with Rent Escalators
Stable Long-Term Leases with Rent Escalators 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 2.6x ⁽¹⁾ —
Slide 10: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation Portfolio of well-positioned properties at prominent corner locations Asset Highlights Portfolio Detail (959 Properties) Key Attributes Driving Site Traffic — 73% of properties have a convenience store — 9% of properties have branded QSRs, including several na
Slide 11: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets1 Acquired Assets1 Total Portfolio (480 properties) (479 properties) (959 properties) < 0.5 acres 0.5 – 1.0 Lot Size acres 1.0 – 1.5 acres > 1.5 acres < 1,5
Slide 12: Convenience Stores Dominate Retail Landscape
Convenience Stores Dominate Retail Landscape Number of convenience stores in service has Convenience Store Gross Profit ($bn) (1) remained steady over the last 10 years (1) 120 — 152,720 properties, 80% selling fuel, 38 37 100 34 32 represents 35% of all retail outlets 32 32 26 80 26 25 23 Stable Op
Slide 13: Getty Growth Platform
Getty Growth Platform Organic Acquisitions Redevelopment Embedded growth derived from Convenience and Gasoline Unlocking embedded value in long-term triple-net leases — Total addressable market size existing portfolio — 1% to 2% contractual annual estimated at $75-100 billion (1) — Existing portfoli
Slide 14: Acquisitions
Acquisitions Overview Portfolio Transactions Ten-Year Track Record Transaction Number — Acquired 462 properties for $1.1 billion Value ($mm) of Properties — Added 16 new states and 23 new tenants $29 6 2020 2020 Acquisitions (1) — Acquired 34 properties for $150 million $90 20 — Average cash return
Slide 15: 2020 and 2019 Acquisitions
2020 and 2019 Acquisitions Convenience & Gas Other Automotive Purchase price – $86 million Purchase price – $151 million Properties – 24 Properties – 37 Lot & building size – 1.2 acres and 3,245 sq. ft. Lot & building size – 1.4 acres and 5,454 sq. ft. Geography – AL, CA, FL, GA, IL, NC, NY, MA, OK
Slide 16: Redevelopment Projects
Redevelopment Projects Invested $14.4 million in 19 completed redevelopments with aggregate yield of 16% In-Progress Redevelopment Activity ($ thousands) Anticipated Investment Total As Of Expected Market Asset Type Investment (1) 12/31/20 Completion (2) Active Projects Arlington, TX Convenience & G
Slide 17: Redevelopment Case Studies
Redevelopment Case Studies Wendy’s – 2020 AutoZone – 2020 Property type – Quick Service Restaurant Property type – Other Automotive Development type – Ground Lease Development type – Ground Lease Lot & building size – 0.4 acres and 2,389 sq. ft. Lot & building size – 0.4 acres and 5,973 sq. ft. Tota
Slide 18: Income Growth, Scalable G&A
Income Growth, Scalable G&A Total Revenue ($ thousands) G&A ($ thousands) % of Assets 160,000 18,000 1.8% 140,000 16,000 1.3% 1.3% 1.3% 1.5% 14,000 1.3% 120,000 12,000 1.2% 100,000 10,000 80,000 17,294 0.9% 140,655 147,346 8,000 15,377 60,000 6,000 0.6% 40,000 4,000 0.3% 20,000 35,890 37,076 2,000 3
Slide 19: Strong Balance Sheet
Strong Balance Sheet Investment Grade Credit Rating Credit Statistics — Fitch: BBB- Debt to Total Capitalization 32% Credit Agreement Debt to Total Asset Value (1) 40% — $300 mm Revolving Credit Facility — $275 mm available for growth Net Debt to EBITDA (1) 4.9x — Matures 2022 with 1-year option, su
Slide 20: Consistent Dividend Growth
Consistent Dividend Growth Quarterly Dividends Declared per Share te $0.40 nn ua l gr owth r a a pounded 8.1% com $0.35 $0.30 $0.25 0.390 0.390 $0.20 0.370 0.370 0.370 0.370 0.350 0.350 0.350 0.350 0.320 0.320 0.320 0.320 $0.15 0.280 0.280 0.280 $0.10 $0.05 $0.00 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4
Slide 21: 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 Convenience and Gas Sector Continues to Grow and Remains One of the Healthiest 3 Segments of the Retail Landscape Entering Other Auto
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO 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 23, 2021. 2) Net earnings and FFO for the quarter and year ended December 31, 2020 include a $20.5