Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (October 2017)
22 slides from Getty Realty's investor presentation, Oct 26, 2017
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: Investment Highlights
Investment Highlights 2 1 National Retail Net Lease Portfolio Located in Mature and High Growth Markets 2 Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants with Long-Term Triple-Net Leases 5 Industry Leading Expertise as Underwriter and Owner of Convenience Stores and
Slide 4: Company Overview
Company Overview
Slide 5: Corporate History
Corporate History 1955: Leo Liebowitz and Milton Safenowitz purchase a gas station in New York City 1985: Acquires the northeastern retail petroleum distribution and marketing assets, and Getty® trademark for retail petroleum, from Texaco 1971: Getty grows its portfolio to 75 service stations and ho
Slide 6: National Net Lease Portfolio
National Net Lease Portfolio 873 properties (792 fee, 81 leased) located in 27 states plus Washington, D.C. (1) 855 net lease properties 10 redevelopment properties 8 vacant properties 99.1% occupied (2) $31.7 million mortgage portfolio (9-9.5% yield) As of September 30, 2017 Occupancy calculation e
Slide 7: Investment Overview
Investment Overview
Slide 8: Convenience Store and Gasoline Station Properties
Convenience Store and Gasoline Station Properties Stable, yet growing sector Increasingly institutional tenant base Mature, Infill Markets Densely populated areas High barriers to entry Limited new development Prime locations and corners Mature transportation grid Convenient ingress and egress High
Slide 9: Sustainable cash flows supported by long-term triple-net leases
Sustainable cash flows supported by long-term triple-net leases Typically, annual rent escalations 1.0% - 2.0% and rent coverage ratios range from 1.5x – 2.0x As of September 30, 2017, unitary lease portfolio weighted average rent escalations of 1.6% and rental coverage of 1.9x ⁽¹⁾ Tenant credit vis
Slide 10: High Quality Brands and Diversified Tenant Base
High Quality Brands and Diversified Tenant Base Rank Tenant % of ABR Public Company 1 Global 19% ü 2 United Oil 17% 3 Chestnut Petroleum 11% 4 Nouria Energy 8% 5 Empire Petroleum Partners 7% 6 Cross America Partners 7% ü 7 Fas mart 6% 8 Capitol Petroleum Group 5% 9 BP 3% ü 10 Aloha 2% ü Total annual
Slide 11: 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 nine properties and five properties in 2016 and 2017 YTD, respectively Asset recycling Sold 14 properties ($5 million) and nine properties ($3 million) in
Slide 12: Acquisitions
Acquisitions Acquisitions Year to Date Acquired 103 high quality properties for $214 million Weighted average cash return of 7.3% and a weighted average initial remaining lease term of more than 14 years Expanded geographic exposure with entry into Arizona, Georgia, New Mexico and Louisiana Estimate
Slide 13: Redevelopment Activity
Market Asset Type Anticipated Total Investment (1) Investment As Of 9/30/17 Expected Completion (2) Active Projects New Oxford, PA Convenience Store 561 283 2017 Port Jefferson, NY Convenience Store (3) 2,500 1 2018 Howell, NJ Retail 549 60 2018 Millerton, NY Retail & QSR 943 70 2018 Phoenixville, P
Slide 14: Convenience Stores Dominate Retail Landscape
Number of convenience stores in service has remained steady over last 10 years (1) More than 154,000 properties (80% selling fuel) represents 34% of all retail outlets Single-store operators account for 63% of all convenience stores Stable Operator Performance (1) Sales and pre-tax profits have grow
Slide 15: Financial Overview
Financial Overview
Slide 16: Income Growth, Scalable G&A
Income Growth, Scalable G&A AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO and for a reconciliation to Net Earnings, see Appendix or Item 2 of our Quarterly Report on Form 10-Q for the period ended September 30, 2017 Includes a net $0.8 million and $0.5 mi
Slide 17: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Revolving Credit Facility $175 million Matures 2018 with 1-year option, subject to certain conditions LIBOR +195 to 325 bps Bank Term Loan $50 million Matures 2020 LIBOR +190 to 320 bps Senior Unsecured Notes Series A: 6.0% $100 million matures 2021 Series B: 5.
Slide 18: Consistent Dividend Growth
Quarterly Dividends Declared per Share (1) Consistent Dividend Growth Excludes special dividends of $0.05, $0.14 and $0.22 per share in 4Q13, 4Q14 and 4Q15, respectively
Slide 19: Investment Highlights
Investment Highlights 1 National Retail Net Lease Portfolio Located in Mature and High Growth Markets 2 Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants with Long-Term Triple-Net Leases 5 Industry Leading Expertise as Underwriter and Owner of Convenience Stores and Ga
Slide 20: Appendix
Appendix
Slide 21: Reconciliation of Net Income to FFO and AFFO
Reconciliation of Net Income to FFO and AFFO AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO see Item 2 of our Quarterly Report on Form 10-Q for the period ended September 30, 2017 Includes a net $0.8 million and $0.5 million of environmental insurance reim
Slide 22: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA EBITDA is a non-GAAP measures