Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (February 2020)
22 slides from Getty Realty's investor presentation, Feb 26, 2020
Slide 1: Investor Presentation
Investor Presentation Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 1 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 perf
Slide 3: Getty Realty at a Glance
Getty Realty at a Glance Net Lease REIT Specializing in Convenience & Gas and Other Automotive Properties ⁽¹⁾ 1 Track Record of Partnering with Tenants in Healthy and Consolidating Retail Sectors Multiple Growth Channels Flexible / Low Leverage Balance Sheet Supports Growth $1.8bn Enterprise Value G
Slide 4: National Net Lease Portfolio
National Net Lease Portfolio 945 Properties Across 33 States 9%+ $31mm Mortgage Portfolio $124mm ABR ⁽¹⁾ 99% Occupancy ⁽³⁾ 5% AFFO / Share CAGR ⁽²⁾ 57% ABR in Top 25 MSAs ~10 years Weighted Avg. Lease Term ⁽⁴⁾ 2.3x Unit Level Rent Coverage ⁽⁴⁾ 72% On Corner Locations Based on GAAP annualized base re
Slide 5: Convenience Store, Gasoline Station and Other Automotive Properties
Convenience Store, Gasoline Station and Other Automotive Properties Stable, yet growing sectors Institutional quality tenant base Urban Infill Markets Densely populated areas High barriers to entry Limited new development Prime locations and corners Mature transportation grid Convenient ingress and
Slide 6: Diversified Tenant Base with High Quality Brands
Rank Market % of ABR Public Company 1 Global 16% ü 2 United Oil 14% 3 Chestnut Petroleum 9% 4 GPM Investments 8% 5 Empire Petroleum 8% 6 Applegreen 7% ü 7 Nouria Energy 7% 8 Cross America 6% ü Diversified Tenant Base with High Quality Brands Getty’s Top 15 Tenants (1) Nationally Recognized Fuel Bran
Slide 7: Located in High Density Metropolitan Markets
Rank Market % of ABR Top 25 Market (2) 9 Phoenix 3% ü 10 Dallas-Fort Worth 2% ü 11 Hartford, CT 2% 12 Honolulu 2% 13 Riverside-San Bernardino 2% ü 14 Richmond, VA 2% 15 Manchester, NH 2% Other 29% Located in High Density Metropolitan Markets Based on cash annualized base rent (ABR), as of December 3
Slide 8: Stable Long-Term Lease Structure
Stable Long-Term Lease Structure 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 2.3x ⁽¹⁾ Tenant credit visi
Slide 9: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation Includes branded QSRs and convenience stores with unbranded fresh food offerings. Includes free-standing QSRs and regional retailers. Portfolio of well-positioned properties at prominent corner locations Key Attributes Driving Site Traffic 74% of properties ha
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 Assets1 (499 properties) Lot Size Acquired Assets1 (446 properties) Total Portfolio (945 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 acres > 1
Slide 11: Convenience Stores Dominate Retail Landscape
Number of convenience stores in service has remained steady over the last 10 years (1) 153,237 properties, 80% selling fuel, represents 34% of all retail outlets Stable Operator Performance (1) Sales and gross profits have grown at 3.7% and 5.3% CAGR since 2004, respectively In-store sales grew for
Slide 12: Getty Growth Platform
Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Leasing activity Leased one property and two properties in 2018 and 2019, respectively Asset recycling Sold 10 properties ($7 million) and nine properties ($3 million) in 2018 an
Slide 13: Acquisitions Ten-Year Track Record
$68 38 $123 49 $17 6 $52 30 Acquisitions Ten-Year Track Record Acquired 427 properties for $906 million Added 14 new states and 21 new tenants 2019 Acquisitions Acquired 27 properties for $87 million Average cash return of 7.20% and average initial remaining lease term of 13 years Added three new st
Slide 14: 2019 Acquisitions
2019 Acquisitions Purchase price – $49 million Properties – 16 Lot & building size – 0.9 acres and 2,519 sq. ft. Geography – AL, CA, FL, GA, IL, NC, NY, MA, OK and VA Purchase price – $38 million Properties – 11 Lot & building size – 1.1 acres and 5,614 sq. ft. Geography – AR, GA, KY, MN, NC and NV
Slide 15: In-Progress Redevelopment Activity
Market Asset Type Anticipated Total Investment (1) Investment As Of 12/31/19 Expected Completion (2) Active Projects Bronx, NY Quick Service Restaurant 1,540 1,475 2020 Philadelphia, PA Retail 315 151 2020 Brooklyn, NY Retail 386 274 2020 Lewisville, TX Convenience & Gas 632 53 2021 Brooklyn, NY Ret
Slide 16: Redevelopment Case Studies
Redevelopment Case Studies Property type – Convenience and Gas Development type – Ground lease Lot & building size – 3.0 acres and 6,520 sq. ft. Total investment – $0.3 million Incremental yield – 67% Rent commencement – January 26, 2019 Tenant – Sheetz is one of America's fastest-growing convenienc
Slide 17: Income Growth, Scalable G&A
Income Growth, Scalable G&A G&A ($ thousands) AFFO ($ thousands) (1) Total Revenue ($ thousands) FFO ($ thousands) (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 26, 2020. For a reconciliation
Slide 18: Strong Balance Sheet
Strong Balance Sheet Investment Grade Credit Rating Fitch: BBB- Credit Agreement $300 million Revolving Credit Facility $280 million available for growth Matures 2022 with 1-year option, subject to certain conditions LIBOR +150 to 230 bps Senior Unsecured Notes Series A: 6.0% $100 million matures 20
Slide 19: Consistent Dividend Growth
Quarterly Dividends Declared per Share Consistent Dividend Growth
Slide 20: 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 3 Convenience and Gas Sector Continues to Grow and Remains One of the Healthiest Segments of the Retail Landscape 5 Cash Flow and Div
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO 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 26, 2020.