Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (July 2018)
26 slides from Getty Realty's investor presentation, Jul 25, 2018
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 Net Lease Portfolio of Convenience Stores and Gasoline Stations Located in Both Urban Infill and High Growth Markets 2 Stable Cash Flows Supported by Institutional Quality Credit Tenants with Long-Term Triple-Net Leases 3 Leadership Position with Proven Platform to
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: Company grows its portfolio to 75 service stations and
Slide 6: National Net Lease Portfolio
National Net Lease Portfolio 932 properties (854 fee, 78 leased) located in 30 states plus Washington, D.C. 918 net lease properties 9 redevelopment properties 5 vacant properties / 99.5% occupied (1) $34.2 million mortgage portfolio (9 to 9.5% yield) Occupancy calculation excludes nine properties c
Slide 7: Convenience Store and Gasoline Station Properties
Convenience Store and Gasoline Station Properties Stable, yet growing sector 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 egress High Growth
Slide 8: Investment Overview
Investment Overview
Slide 9: Diversified Tenant Base with High Quality Brands
Rank Tenant % of ABR Public Company 1 Global 17% ü 2 United Oil 15% 3 Chestnut Petroleum 10% 4 Empire Petroleum Partners 8% 5 Nouria Energy 8% 6 GPM Investments 7% 7 Cross America Partners 6% ü 8 Applegreen 5% ü 9 Capitol Petroleum Group 5% 10 BP 2% ü 11 Aloha 2% ü Diversified Tenant Base with High
Slide 10: Located in High Density Metropolitan Markets
Located in High Density Metropolitan Markets Based on cash annualized base rent (ABR), as of June 30, 2018 Core Based Statistical Areas as defined by United States Office of Management and Budget Getty’s Top 20 Markets (1) (2) Rank Market % of ABR Top 25 Market (2) 11 Richmond, VA 2% 12 Manchester,
Slide 11: Stable Long-Term Lease Structure
Stable Long-Term Lease Structure Sustainable cash flows supported by long-term triple-net leases Annual rent escalations of 1.0% - 2.0% and rent coverage ratios of 1.5x – 2.0x are typical Unitary lease portfolio weighted average rent escalations of 1.6% and rental coverage of 1.9x ⁽¹⁾ Increasing ten
Slide 12: Quality Assets With Key Differentiation
Quality Assets With Key Differentiation Includes branded QSRs and convenience stores with unbranded fresh food offerings Includes non-gas automotive-related retailers, free-standing QSRs and regional retailers Portfolio of well-positioned properties at prominent corner locations Key Attributes Drivi
Slide 13: Optimizing Portfolio to Meet Industry Demand
Optimizing Portfolio to Meet Industry Demand Property Attributes of Recently Acquired Assets Reflect Evolving Consumer Preferences Legacy Assets1 (516 properties) Lot Size Acquired Assets1 (416 properties) Total Portfolio (932 properties) Building Size 0.5 – 1.0 acres < 0.5 acres 1.0 – 1.5 acres > 1
Slide 14: Convenience Stores Dominate Retail Landscape
Number of convenience stores in service has remained steady over the last 10 years (1) More than 154,000 properties, 80% selling fuel, represents 34% of all retail outlets Stable Operator Performance (1) Sales and pre-tax profits have grown at 3.8% and 7.5% CAGR since 2003, respectively In 2016, mot
Slide 15: Growth Strategy
Growth Strategy
Slide 16: Getty Growth Platform
Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Asset recycling Sold 12 properties ($4 million) and 6 properties ($4 million) in 2017 and 2018 YTD, respectively Leasing activity Leased nine properties in 2017 Unlocking embedde
Slide 17: Acquisitions Since 2009
Acquisitions Since 2009 Acquired 416 properties for $833 million and 22 leasehold interests for $18 million Entered 11 new states and added 16 new tenants 2017 Acquisitions Acquired 103 properties for $214 million Weighted average cash return of 7.3% and a weighted average initial remaining lease te
Slide 18: 2017 Acquisition Highlights
2017 Acquisition Highlights Empire Petroleum Partners, LLC Acquired fee simple interests in 49 convenience store and gasoline station properties in seven states for $123 million 15 year unitary lease with annual rent escalations and multiple renewal options Provided funding to Empire, a regional fue
Slide 19: Redevelopment Active Projects and Pipeline
Market Asset Type Anticipated Total Investment (1) Investment As Of 6/30/18 Expected Completion (2) Active Projects Worcester, MA Convenience Store (3) 2,300 73 2018 Port Jefferson, NY Convenience Store (3) 2,926 2 2018 Lancaster, PA Convenience Store 427 64 2018 Falmouth, MA Urgent Care 1,894 656 2
Slide 20: Financial Overview
Financial Overview
Slide 21: Income Growth, Scalable G&A
Income Growth, Scalable G&A G&A ($ thousands) AFFO ($ thousands) (1) (2) 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 July 25, 2018. During 4Q17, the Company r
Slide 22: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Revolving Credit Facility $250 million Matures 2022 with 1-year option, subject to certain conditions LIBOR +150 to 230 bps Bank Term Loan $50 million Matures 2023 LIBOR +145 to 225 bps Senior Unsecured Notes Series A: 6.0% $100 million matures 2021 Series B: 5.
Slide 23: Consistent Dividend Growth
Quarterly Dividends Declared per Share (1) Consistent Dividend Growth Excludes special dividends of $0.14 and $0.22 per share in 4Q14 and 4Q15, respectively
Slide 24: Investment Highlights
Investment Highlights 1 National Net Lease Portfolio of Convenience Stores and Gasoline Stations Located in Both Urban Infill and High Growth Markets 2 Stable Cash Flows Supported by Institutional Quality Credit Tenants with Long-Term Triple-Net Leases 3 Leadership Position with Proven Platform to S
Slide 25: Appendix
Appendix
Slide 26: 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 July 25, 2018. During 4Q17, the Company revised its definition of AFFO. Accordingly, AFFO for the quarter and s