Getty Realty Corporation · NYSE:GTY
Getty Realty — Q3 2021 Earnings Presentation
34 slides from Getty Realty's earnings presentation, Oct 28, 2021
Slide 1: Convenience Automotive Retail Corporate Profile Q3 2021
CONVENIENCE AUTOMOTIVE RETAIL CORPORATE PROFILE Q3 2021
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: Table of Contents
TABLE OF CONTENTS Corporate Profile Company Page 4 Portfolio 9 Capabilities 15 Corporate 21 Supplemental Information 25 Definitions and Reconciliations 30 3
Slide 4: Corporate Profile
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Slide 5: Getty at a Glance
GETTY AT A GLANCE NET LEASE REIT SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL REAL ESTATE 1,021 $2.0 billion Properties BBB- Enterprise 36 Fitch Value States+ DC Rated CONVENIENCE AUTOMOTIVE RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WHERE CONSUMERS SPEND MONEY IN THEIR CARS OR
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS STABLE PORTFOLIO OF ESSENTIAL USE ASSETS WITH ATTRACTIVE GROWTH OPPORTUNITIES PORTFOLIO SNAPSHOT Durable Rental Income Versatile Real Estate in Major Markets 99.5% OCCUPIED o Essential, e-commerce and recession o Freestanding properties on corner resistant, retail businesses lo
Slide 7: Recent News
RECENT NEWS STRONG YEAR TO DATE ACTIVITY ACROSS ALL ASPECTS OF THE BUSINESS o Invested $144.5 million across 82 properties year-to-date through October 27, 2021 – Acquired 16 car washes for $60.4 million INVESTMENT – Acquired 16 convenience stores for $39.6 million(1) ACTIVITY – Acquired 47 auto ser
Slide 8: Business Plan Execution
BUSINESS PLAN EXECUTION EXPANDING OUR PLATFORM, GROWING OUR PORTFOLIO AND INCREASING PROFITABILITY PLATFORM CAPABILITIES PORTFOLIO GROWTH* PROFITABILITY o Expanding investment opportunities o Entering new geographic markets o Increasing profit margins o Improving access to and cost of capital o Enha
Slide 9: Portfolio
Slide 10: Real Estate
REAL ESTATE FREESTANDING PROPERTIES OFFERING ESSENTIAL GOODS AND SERVICES TIED TO CONVENIENCE & AUTOMOBILITY CONVENIENCE & AUTOMOTIVE RETAIL REAL ESTATE RETAIL SECTORS REAL ESTATE ATTRIBUTES o Convenience & Gas o 3,000 - 5,000 SF buildings o Car Wash o 1 - 2 acre sites o Auto Service o Corner locati
Slide 11: Industry: Convenience Stores
INDUSTRY RESILIENT CONVENIENCE STORES CONTINUE TO EVOLVE WITH INCREASINGLY SOPHISTICATED RETAIL OPERATIONS COMMENTARY C-STORE INSIDE SALES $ Billions o Long-term track record of consistent inside sales growth COVID-19 300.0 Great o Improving profitability through expanded foodservice and higher 250.
Slide 12: Industry: Vehicles in Operation
INDUSTRY LARGE AND GROWING BASE OF VEHICLES IN OPERATION SUPPORTS THE BROADER AUTOMOTIVE RETAIL SECTOR COMMENTARY VEHICLES IN OPERATION` Millions o Demand for auto care and maintenance is generally needs 290 based and resistant to economic downturns 281 278 275 272 o Total number of vehicles in oper
Slide 13: Locations
LOCATIONS NATIONAL FOOTPRINT WITH CONCENTRATIONS IN HIGH DENSITY METROPOLITAN AREAS % of Top 50 1,021 36 71% 63% Rank Metro Area ABR MSA 1 New York 19% FREESTANDING STATES CORNER TOP 50 MSAs PROPERTIES + D.C. LOCATIONS 2 Washington D.C. 8% 3 Boston 6% 4 Columbia, SC 4% 5 Denver 4% 6 Kansas C
Slide 14: Tenants and Leases
TENANTS AND LEASES INSTITUTIONAL OPERATORS PRIMARILY UNDER UNITARY LEASES 33 846 85% 1.7% 2.6x 88% 8.8 UNITARY PROPERTIES OF TOTAL ANNUAL RENT TENANT RENT FINANCIAL YEARS LEASES ABR ESCALATIONS COVERAGE REPORTING (1) WALT % of Financial % of Financial Rank Tenant ABR Reporting Rank Tenant ABR Re
Slide 15: Capabilities
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Slide 16: Investment Approach
INVESTMENT APPROACH MACRO PERSPECTIVES SUPPORTED BY COMPREHENSIVE TRANSACTION UNDERWRITING AND LEASE STRUCTURING Automobility is power agnostic and Mobile consumers increasingly remains the dominant form of prioritize convenience, consumer transportation service and speed Convenience & automotive re
Slide 17: Platform
PLATFORM TARGETED INVESTMENTS, BROAD CAPABILITIES FULL SERVICE REAL ESTATE COMPANY SPECIALIZING IN CONVENIENCE AND AUTOMOTIVE RETAIL PROPERTIES ACQUISITIONS FINANCING o Sale leasebacks o Development funding o Forward purchases o Mortgage loans o Programmatic relationships o Seller financing o Market
Slide 18: Acquisitions
ACQUISITIONS ACQUIRED 283 PROPERTIES FOR $663 MILLION SINCE JANUARY 2016… DATE: Q3 2021 PROPERTY TYPE: Convenience & Gas TRANSACTION TYPE: Sale Leaseback # OF PROPERTIES: 15 TRANSACTION VALUE: $35 million GEOGRAPHY: Raleigh, NC + other Southeast LEASE TERM: 15.0 years RENT ESCALATIONS: 2.0% / year (
Slide 19: Acquisitions
ACQUISITIONS …ENHANCING TENANT, PROPERTY TYPE AND GEOGRAPHIC DIVERSIFICATION DATE: Q1-Q3 2021 PROPERTY TYPE: Convenience & Gas TRANSACTION TYPE: Development Funding + SLB (1) # OF PROPERTIES: 4 TRANSACTION VALUE: $13 million (to date) GEOGRAPHY: Charleston, SC LEASE TERM: 15.0 years RENT ESCALATIONS
Slide 20: Redevelopment
REDEVELOPMENT COMPLETED 22 PROJECTS TOTALING $14.8 MILLION AT A 17% INCREMENTAL YIELD RENT COMMENCEMENT: Q4 2020 PROPERTY TYPE: Auto Parts DEVELOPMENT TYPE: Ground Lease TOTAL INVESTMENT: $0.2 million INCREMENTAL YIELD: 47% GEOGRAPHY: Bloomfield, NJ RENT COMMENCEMENT: Q1 2020 PROPERTY TYPE: Other Re
Slide 21: Corporate
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Slide 22: Balance Sheet
BALANCE SHEET SIGNIFICANT LIQUIDITY AND FLEXIBLE CAPITAL STRUCTURE SUPPORT PORTFOLIO GROWTH OBJECTIVES ACCESS TO CAPITAL BBB- 29% 37% 5.1x o $7.3 million cash o $257.5 million Revolver capacity FITCH DEBT TO TOTAL DEBT TO TOTAL NET DEBT o $203.8 million ATM capacity RATED CAPITALIZATION ASSET VALUE
Slide 23: Corporate Responsibility
CORPORATE RESPONSIBILITY COMMITTED TO GOOD CORPORATE CITIZENSHIP AND BUSINESS PRACTICES THAT SERVE ALL OF OUR STAKEHOLDERS ENVIRONMENTAL PRACTICES 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 mainta
Slide 24: Summary
SUMMARY STABLE PORTFOLIO OF ESSENTIAL USE ASSETS WITH ATTRACTIVE GROWTH OPPORTUNITIES DURABLE RENTAL INCOME VERSATILE REAL ESTATE IN MAJOR MARKETS INCREMENTAL INVESTMENT OPPORTUNITIES WELL POSITIONED BALANCE SHEET CONVENIENCE AUTOMOTIVE RETAIL WE INVEST IN FREESTANDING, SINGLE TENANT PROPERTIES WHER
Slide 25: Supplemental Information
CONVENIENCE AUTOMOTIVE RETAIL SUPPLEMENTAL INFORMATION
Slide 26: Lease Expirations
LEASE EXPIRATIONS LEASE EXPIRATION SCHEDULE (% of ABR) o 99.5% occupied 47.7% o 8.8 years WALT 14.1% 10.2% 8.1% 5.2% 5.5% 2.3% 2.5% 2.5% 0.7% 1.2% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031+ Note: All data as of September 30, 2021. 26
Slide 27: Tenant Reporting & Rent Coverage
TENANT REPORTING & RENT COVERAGE TENANT REPORTING & RENT COVERAGE (% of ABR) o 61% site level reporting o 2.6x tenant rent coverage 34.7% 26.6% 12.0% 10.1% 7.3% 3.4% 3.9% 2.1% < 1.00x 1.00x to 1.99x 2.00x to 2.49x 2.50x to 2.99x > 3.00x Not Available (1) Public Company No Reporting Reporting Site le
Slide 28: Rent Escalations
RENT ESCALATIONS RENT ESCALATIONS (% of ABR) o 98% subject to rent escalation 66.4% o 1.7% annualized rent escalation rate 17.5% 10.1% 2.2% 1.7% 2.1% Annual Every 3 Years Every 5 Years Every 3 Years Every 5 Years Flat Fixed = 87.8% CPI = 12.2% Note: All data as of September 30, 2021. 28
Slide 29: Redevelopment Activity
REDEVELOPMENT ACTIVITY In-Progress Redevelopments ($000s) Anticipated Total Investment as of Market Property Type Investment (1) 9/30/2021 Expected Completion Harker Heights, TX Convenience & Gas $ 330 $ 224 2021 Arlington, TX Convenience & Gas 665 193 2021 Brooklyn, NY Auto Parts 1,350 474 2022 Ced
Slide 30: Definitions and Reconciliations
CONVENIENCE AUTOMOTIVE RETAIL DEFINITIONS AND RECONCILIATIONS
Slide 31: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). In addition to revenue), the net amortization of above-market and below-market leases, adjustments measurements defined by accounting principles generally accepted in the United States of recorded for
Slide 32: 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 33: Reconciliation of Net Earnings to FFO and AFFO
RECONCILIATION OF NET EARNINGS TO FFO AND AFFO Three Months Ended September Nine Months Ended September $ in thousands, except per share amounts 2021 2020 2021 2020 Net earnings $14,011 $11,884 $44,828 $35,557 Depreciation and amortization of real estate assets 8,895 7,635 25,980 22,057 Gain on disp
Slide 34: Getty Realty Corp. contact
CONVENIENCE AUTOMOTIVE RETAIL Getty Realty Corp. 292 Madison Avenue 9th Floor New York, NY 10017 646-349-6000