Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (August 2016)
23 slides from Getty Realty's investor presentation, Aug 5, 2016
Slide 1: Investor Presentation
Investor Presentation Exhibit 99.1
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: Investment Highlights
1 2 5 3 4 6 Investment Highlights National Retail Net Lease Portfolio Targeting Mature, High Growth Markets Increasingly Institutional Quality Credit Tenant Base with Long-Term Triple-Net Leases Ongoing Process to Repurpose, Reposition, Redevelop Locations to Maximize Value Attractive Industry Funda
Slide 4: Company Overview
Company Overview
Slide 5: Getty Realty
Getty Realty
Slide 6: Executive Management Team
Christopher J. Constant, President, Chief Executive Officer, Director Mark J. Olear, EVP, Chief Operating Officer and Chief Investment Officer Danion Fielding, VP, Chief Financial Officer and Treasurer Joshua Dicker, SVP, General Counsel, Secretary Executive Management Team — Promoted to President a
Slide 7: National Net Lease Portfolio
National Net Lease Portfolio 837 properties (745 fee simple, 92 leased) located in 23 states plus Washington, D.C. (1) — 799 net lease portfolio properties — 38 transitional properties — 97% occupied $33.3 million mortgage portfolio (9-9.5% yield) 1) As of June 30, 2016
Slide 8: Investment Overview
Investment Overview
Slide 9: Attractive Net Lease Portfolio
Mature, Infill Markets — High replacement costs — Time consuming zoning restrictions — Limited new development Prime Locations and Corners — Mature transportation grid — High daily traffic counts — Optimal corners with traffic lights, high visibility and easy access — Close proximity to freeway entr
Slide 10: Stable Long-Term Lease Structure
Stable Long-Term Lease Structure Stable Long-Term Leases with Rent Escalators Sustainable cash flows supported by long-term triple-net leases — Contractual rent increases of 1.0% to 2.0% with coverage of 1.5x – 2.0x or more — Unitary tenant credit visibility via station and tenant financial statemen
Slide 11: Top Tenants
Top 10 Tenants (1) High-Quality, Diversified Tenant Base Total annualized base rent: — Credit rated or national tenants (53%) — Regional unitary tenants (42%) — Individual tenants (5%) Rank Tenant % of ABR Rank Tenant % of ABR * 20% + 7% * 18% + 6% + 17% * 3% + 9% * 2% * 8% + 2% 1) Based on GAAP ann
Slide 12: Convenience Stores Dominate Retail Landscape
Convenience Store Sales ($bn) (1) Growth in Number of Convenience Stores (1) Convenience Stores Dominate Retail Landscape Number of convenience stores in service has remained steady over last 10 years (1) — More than 152,000 properties ( 84% selling fuel) represents 34% of all retail outlets — 63% o
Slide 13: The Getty Competitive Advantage
The Getty Competitive Advantage Large Market Opportunity Ability to underwrite unit level and entity level credit Ability to underwrite real estate and execute redevelopment to achieve highest and best use Established record of managing and remediating environmental concerns in a highly regulated in
Slide 14: Getty Growth Platform
Organic Redevelopment Acquisitions 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 profitabil
Slide 15: Acquisition Case Study – United Oil
Acquisition Case Study – United Oil $214.5 million Acquisition of 77 Properties in June 2015 — Financed with a combination of long-term fixed rate debt and credit facility borrowings — Tenant is United Oil, a leading regional convenience store and gasoline station operator › Operates ~400 locations
Slide 16: Redevelopment Case Study – Mattress Firm
Before After Salem, New Hampshire — Property acquired in 1986 and previously leased to Getty Petroleum Marketing, Inc. — Re-leased in 2012 — Vacant as of 2015 Property Attributes — Well located retail location at traffic corner — Several large shopping centers with major retailers adjacent to the si
Slide 17: Financial Overview
Financial Overview
Slide 18: Income Growth, Scalable G&A
G&A ($ thousands) AFFO ($ thousands) (1) Revenue ($ thousands) FFO ($ thousands) (1) 11,137 15,167 21,625 29,543 7,350 (2) 791 (3) 7,350 (2) 562 (3) 11,194 13,670 22,233 27,060 7,350 (2) 791 (3) 7,350 (2) 562 (3) 26,248 28,608 50,957 57,035 4,835 3,806 8,624 7,850 Income Growth, Scalable G&A 1) AFFO
Slide 19: Strong Balance Sheet
Credit Statistics Maturity Schedule ($ millions) 79 50 100 75 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
Slide 20: Quarterly Dividends Declared per Share
Quarterly Dividends Declared per Share Consistent Dividend Growth 1) Excludes special dividends of $0.05, $0.14 and $0.22 per share in Q4 2013, Q4 2014 and Q4 2015, respectively. $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 21: Investment Highlights
1 2 5 3 4 6 Investment Highlights National Retail Net Lease Portfolio Targeting Mature, High Growth Markets Increasingly Institutional Quality Credit Tenant Base with Long-Term Triple-Net Leases Ongoing Process to Repurpose, Reposition, Redevelop Locations to Maximize Value Attractive Industry Funda
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Net Income to FFO and AFFO
Reconciliation of Net Income to FFO and AFFO 1) AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO see Item (Selected Financial Data) in the Annual Report on our Form 10-K for the year ended December 31, 2015. Three months ended June 30, Six months ended June