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 $1.6bn 6.1% NYSE Ticker Symbol Enterprise Value Dividend Yield 2 Track Record of Partnering with Tenants in Healthy and Consolidating Retail Sectors 29 Unitary / 119 Individual Establi
Slide 4: COVID-19 Impact
COVID‐19 Impact Getty’s highest near‐term priority continues to be with the health and safety of its employees, tenants and the communities where the Company owns properties The Company is continuously monitoring the COVID‐19 pandemic and its potential impact on its tenants, operations and financial
Slide 5: National Net Lease Portfolio
National Net Lease Portfolio $129mm 954 Properties Across 35 States 55% ABR in ABR ⁽¹⁾ Top 25 MSAs 5% 71% AFFO / Share On Corner CAGR ⁽²⁾ Locations 9%+ ~10 years $27mm Weighted Avg. Mortgage Lease Term ⁽⁴⁾ Portfolio 99% 2.7x Unit Level Occupancy ⁽³⁾ Rent Coverage ⁽⁴⁾ 1) Based on GAAP annualized base
Slide 6: Well-Positioned Net Lease Portfolio
Well‐Positioned Net Lease Portfolio Attractive Portfolio that is Difficult to Replicate Convenience Store, Gasoline Station and Other New Paltz, NY Automotive Properties — Stable, yet growing sectors — Institutional quality tenant base Urban Infill Markets — Densely populated areas — High barriers t
Slide 7: 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 Global 15% 9 Cross America 5% 2 United Oil 14% 10 Capitol Petroleum 4% 3 Chestnut Petroleum 8% 11 Zips Car Wash 2% 4 GPM Investments 8% 12 BP 2%
Slide 8: Located in High Density Metropolitan Markets
Located in High Density Metropolitan Markets Getty’s Top 15 Markets (1) (2) % of Top 25 % of Top 25 Rank Market Rank Market ABR Market (2) ABR Market (2) 1 New York 21% 9 Los Angeles 3% 2 Washington D.C. 9% 10 Phoenix 2% 3 Boston 6% 11 Dallas‐Fort Worth 2% 4 Columbia, SC 5% 12 Honolulu 2
Slide 9: Stable Long-Term Leases with Rent Escalators
Stable Long‐Term Leases with Rent Escalators 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 2.7x ⁽¹⁾ —
Slide 10: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation Portfolio of well‐positioned properties at prominent corner locations Asset Highlights Portfolio Detail (954 Properties) Key Attributes Driving Site Traffic — 73% of properties have a convenience store — 9% of sites have branded QSRs, including several nationa
Slide 11: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets1 Acquired Assets1 Total Portfolio (485 properties) (469 properties) (954 properties) < 0.5 acres 0.5 – 1.0 Lot Size acres 1.0 – 1.5 acres > 1.5 acres < 1,5
Slide 12: 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 34 100 represents 35% of all retail outlets 32 32 32 26 80 26 25 Stable Opera
Slide 13: Getty Growth Platform
Getty Growth Platform Organic Acquisitions Redevelopment Embedded growth derived Convenience and Gasoline Unlocking embedded value in from long‐term triple‐net — Total addressable market size existing portfolio leases estimated at $75 billion to — Existing portfolio of urban — 1% to 2% contractual $
Slide 14: Acquisitions
Acquisitions Overview Portfolio Transactions Ten‐Year Track Record Transaction Number — Acquired 452 properties for $1.0 billion Value ($mm) of Properties — Added 16 new states and 22 new tenants 2020 Acquisitions 2020 $50 10 — Acquired 24 properties for $105 million — Average cash return of 7.0% an
Slide 15: 2020 and 2019 Acquisitions
2020 and 2019 Acquisitions Convenience & Gas Other Automotive Purchase price – $57 million Purchase price – $135 million Properties – 18 Properties – 33 Lot & building size – 0.9 acres and 2,533 sq. ft. Lot & building size – 1.4 acres and 5,584 sq. ft. Geography – AL, CA, FL, GA, IL, NC, NY, MA, OK
Slide 16: Redevelopment Projects
Redevelopment Projects Invested $13.7 million in 18 completed redevelopments with aggregate yield of 16% In‐Progress Redevelopment Activity ($ thousands) Anticipated Investment Total As Of Expected Market Asset Type Investment (1) 09/30/20 Completion (2) Active Projects Bloomfield, NJ Retail 444 125
Slide 17: Redevelopment Case Studies
Redevelopment Case Studies Wendy’s – 2020 Sheetz, Inc. – 2019 Property type – Quick Service Restaurant Property type – Convenience and Gas Development type – Ground Lease Development type – Ground Lease Lot & building size – 0.4 acres and 2,389 sq. ft. Lot & building size – 3.0 acres and 6,520 sq. f
Slide 18: Income Growth, Scalable G&A
Income Growth, Scalable G&A Total Revenue ($ thousands) G&A ($ thousands) % of Assets 120,000 14,000 1.8% 100,000 12,000 1.5% 1.3% 1.3% 1.3% 1.3% 10,000 80,000 1.2% 8,000 60,000 0.9% 104,765 110,270 6,000 12,767 11,490 40,000 0.6% 4,000 20,000 36,428 37,903 2,000 4,154 0.3% 3,743 ‐ ‐ 0.0% 3Q19 3Q20
Slide 19: Strong Balance Sheet
Strong Balance Sheet Investment Grade Credit Rating Credit Statistics — Fitch: BBB‐ Debt to Total Capitalization 34% Credit Agreement Debt to Total Asset Value (1) 41% — $300 million Revolving Credit Facility Net Debt to EBITDA (1) 4.9x — $190 million available for growth — Matures 2022 with 1‐year
Slide 20: Consistent Dividend Growth
Consistent Dividend Growth Quarterly Dividends Declared per Share $0.40 ow th rate n ded a nnual gr $0.35 mpou 11.0 % co $0.30 $0.25 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 0.280 0.280 $0.15 $0.10 $0.05 $0.00 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Slide 21: 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 Convenience and Gas Sector Continues to Grow and Remains One of the Healthiest 3 Segments of the Retail Landscape Entering Other Auto
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Net Earnings to FFO and AFFO
Reconciliation of Net Earnings to FFO and AFFO Three Months Ended September Nine Months Ended September (1) $ in thousands, except per share amounts 2020 2019 2020 2019 Net earnings $11,884 $11,890 $35,557 $36,015 Depreciation and amortization of real estate assets 7,635 6,321 22,057 18,571 (Gain) l