Getty Realty Corporation · NYSE:GTY
Getty Realty — Q1 2021 Earnings Presentation
22 slides from Getty Realty's earnings presentation, April 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 $1.9bn 5.0% NYSE Ticker Symbol Enterprise Value Dividend Yield 2 Track Record of Partnering with Tenants in Healthy and Consolidating Retail Sectors 32 Unitary / 115 Individual Establi
Slide 4: National Net Lease Portfolio
National Net Lease Portfolio $135mm 65% Annualized Base 960 Properties Across 35 States ABR in Rent (“ABR”) (1) Top 50 MSAs 5.6% 71% AFFO / Share On Corner CAGR (2) Locations 8%+ 9.1 years $19mm Loan Weighted Avg. Portfolio Lease Term ⁽⁴⁾ 99%+ 2.7x Unit Level Occupancy (3) Rent Coverage ⁽⁴⁾ 1) Annua
Slide 5: Well-Positioned Net Lease Portfolio
Well-Positioned Net Lease Portfolio Attractive Portfolio that is Difficult to Replicate Convenience Store, Gasoline Station and Other Convenience & Gas Automotive-Related Properties — Includes car washes, auto service centers and auto parts — Stable, yet growing sectors — Institutional quality tenan
Slide 6: 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 15% 9 Capitol Petroleum 4% 2 Global 14% 10 Zips Car Wash 3% 3 United Oil 13% 11 BP 2% 4 Chestnut Petroleum 8% 12 Aloha 2% 5 Applegreen 6%
Slide 7: 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 20% 9 Phoenix 2% 2 Washington D.C. 9% 10 Dallas-Fort Worth 2% 3 Boston 6% 11 San Antonio 2% 4 Columbia, SC 5% 12 Los Angeles 2%
Slide 8: Stable Long-Term Leases with Rent Escalators
Stable Long-Term Leases with Rent Escalators Sustainable cash flows supported by long-term triple-net leases — Unitary lease portfolio weighted average rent escalations of 1.6% and rental coverage of 2.7x ⁽¹⁾ — Tenant credit visibility via site-level reporting requirements and/or public company disc
Slide 9: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation Portfolio of well-positioned properties at prominent corner locations Asset Highlights Portfolio Detail (960 Properties) Key Attributes Driving Site Traffic — 73% of properties have a convenience store — 9% of properties have branded QSRs, including several na
Slide 10: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets (1) Acquired Assets (1) Total Portfolio (475 properties) (485 properties) (960 properties) < 0.5 acres 8% 16% 12% 0.5 – 1.0 10% 23% Lot Size acres 15% 39%
Slide 11: 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 12: 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 13: Acquisitions
Acquisitions Overview Portfolio Transactions Ten-Year Track Record (1) Transaction Number — Acquired 465 properties for $1.1 billion Value ($mm) of Properties — Added 16 new states and 23 new tenants $29 6 2020 2021 Acquisitions (2) $90 20 — Acquired six properties for $22 million — Average cash ret
Slide 14: 2021 and 2020 Acquisitions
2021 and 2020 Acquisitions Convenience & Gas Other Automotive Purchase price – $36 million Purchase price – $136 million Properties – 8 Properties – 32 Lot & building size – 1.8 acres and 4,697 sq. ft. Lot & building size – 1.5 acres and 5,048 sq. ft. Geography – NY and TX Geography – KS, KY, MO, NC
Slide 15: 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) 3/31/21 Completion (2) Active Projects Arlington, TX Convenience & Ga
Slide 16: 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 17: Income Growth, Scalable G&A
Income Growth, Scalable G&A Total Revenue ($ thousands) G&A ($ thousands) % of Assets 160,000 18,000 1.8% 16,000 1.5% 140,000 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 37,280 2,000 4,068 4,
Slide 18: Strong Balance Sheet
Strong Balance Sheet Investment Grade Credit Rating Credit Statistics — Fitch: BBB- Debt to Total Capitalization 29% Credit Agreement Debt to Total Asset Value (1) 38% — Undrawn $300 million Revolving Credit Facility — Full capacity available for growth Net Debt to EBITDA (1) 5.0x — Matures 2022 wit
Slide 19: Consistent Dividend Growth
Consistent Dividend Growth Quarterly Dividends Declared per Share r ate a nn ua l gr owth nded $0.40 8.1% compou $0.35 $0.30 $0.25 0.390 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 0.280 0.280 $0.15 $0.10 $0.05 $0.00 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q
Slide 20: Key Takeaways
Key Takeaways National Net Lease Portfolio of Convenience Stores, Gasoline Stations and Other 1 Automotive-Related Properties 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
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO Three Months Ended March Twelve Months Ended December (1) $ in thousands, except per share amounts 2021 2020 2020 2019 Net earnings $17,927 $12,700 $69,388 $49,723 Depreciation and amortization of real estate assets 8,437 7,097 30,191 25,161 (Gain) loss