Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (March 2017)
21 slides from Getty Realty's investor presentation, Mar 2, 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 roughly 75 service station
Slide 6: National Net Lease Portfolio
National Net Lease Portfolio 829 properties (740 fee, 89 leased) located in 23 states plus Washington, D.C. (1) 808 net lease properties 6 redevelopment properties 15 vacant properties 98.2% occupied (2) $32.7 million mortgage portfolio (9-9.5% yield) As of December 31, 2016 Occupancy calculation ex
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: Stable Long-Term Leases with Rent Escalators
59% of contractual annual rent attributable to leases with initial terms expiring in 2027 or beyond Sustainable cash flows supported by long-term triple-net leases Contractual rent increases of 1.0% – 2.0% with unitary lease portfolio weighted average of 1.6% Rental coverage of 1.5x – 2.0x Unitary t
Slide 10: Top Tenants
Top 10 Tenants (1) High-Quality, Diversified Tenant Base Total annualized base rent (ABR): Credit rated tenants (37%) Unitary / master lease tenants (55%) Individual / single asset tenants (8%) Rank Tenant % of ABR Rank Tenant % of ABR 1 * 21% 6 + 7% 2 + 18% 7 + 6% 3 + 11% 8 * 3% 4 + 9% 9 * 2% 5 * 7
Slide 11: Getty Growth Platform
Getty Growth Platform Embedded growth derived from long-term triple-net leases 1% to 2% contractual annual rent increases Demonstrated ability to execute on repositioning: Leased 58 properties and nine properties in 2015 and 2016, respectively Demonstrated ability to execute on asset recycling: Sold
Slide 12: Convenience Store Industry Trends
Number of convenience stores in service has remained steady over last 10 years (1) More than 154,000 properties (81% 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 13: Large Market Opportunity
Large Market Opportunity Expertise in underwriting unit level and tenant credit Appraising underlying real estate to support replacement value Established record of diligencing environmental site conditions Strict adherence to proprietary underwriting standards The Getty Competitive Advantage Estima
Slide 14: Financial Overview
Financial Overview
Slide 15: 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 Item 6 of our Annual Report on Form 10-K for the period ended December 31, 2016. Margins exclude items detailed in footnotes 2 and 3 be
Slide 16: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Revolving Credit Facility $175 million Matures 2018 with 1-year option LIBOR +195 to 325 bps based on leverage Bank Term Loan $50 million Matures 2020 LIBOR +190 to 320 bps based on leverage Senior Unsecured Notes Series A: 6.0% $100 million matures 2021 Series
Slide 17: Redevelopment Activity
Market Asset Type Anticipated Total Investment (1) Investment As Of 12/31/16 Estimated Completion (2) Active Projects White Plains, NY Retail $368 $78 2017 Howell, NJ Retail 549 2 2018 Millerton, NY Retail & QSR 943 33 2018 Phoenixville, PA Financial Services 365 9 2018 Falmouth, MA Urgent Care 1,68
Slide 18: Consistent Dividend Growth
Quarterly Dividends Declared per Share Consistent Dividend Growth Excludes special dividends of $0.05, $0.14 and $0.22 per share in Q4 2013, Q4 2014 and Q4 2015, 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 6 (Selected Financial Data) in the Annual Report on our Form 10-K for the year ended December 31, 2016 Includes $10.8 million and $18.2 million of income r