Getty Realty Corporation · NYSE:GTY
Getty Realty — Investor Presentation (May 2017)
21 slides from Getty Realty's investor presentation, May 5, 2017
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this Presentationconstitute “forward-looking statements” within the meaning of the federal securitieslaws. Forward-looking statements are statements that relate to management’sexpectations or beliefs, future plansand strategies,future financial performance
Slide 3: Investment Highlights
Investment Highlights 1 National Retail Net Lease Portfolio Located in Mature and High Growth Markets Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants 2 with Long-Term Triple-Net Leases Leadership Position with Proven Platform to Successfully Pursue Growth in a 3 Cons
Slide 4: Company Overview
Company Overview
Slide 5: Corporate History
Corporate History 1955: Leo Liebowitz and 1971: Getty grows its portfolio to roughly 75 1997: Completes the spin-off of its 1985: Acquires the northeastern retail petroleum Milton Safenowitz purchase a service stations and holds its initial public distribution and marketing assets, and Getty® petrol
Slide 6: National Net Lease Portfolio
National Net Lease Portfolio 823 properties (736 fee, 87 leased) located in 24 states plus Washington, (1) D.C. — 806 net lease properties — 7 redevelopment properties — 10 vacant properties — 98.8% occupied (2) $32.5 million mortgage portfolio (9-9.5% yield) 1) As of March 31, 2017 5 2) Occupancy c
Slide 7: Investment Overview
Investment Overview
Slide 8: Attractive Net Lease Portfolio
Attractive Net Lease Portfolio Convenience Store and Gasoline Station Properties New Paltz, NY — Stable, yet growing sector — Increasingly institutional tenant base Mature, Infill Markets — Densely populated areas — High barriers to entry — Limited new development Garland, TX — Prime locations and c
Slide 9: Stable Long-Term Leases with Rent Escalators
Stable Long-Term Leases with Rent Escalators Sustainable cash flows supported by long-term triple-net leases — Contractual rent increases of 1.0% 2.0%– with unitary lease portfolio weighted average of 1.6% — Rental coverage of 1.5x2.0x – — Unitary tenant credit visibility via station and tenant fina
Slide 10: High-Quality, Diversified Tenant Base
High-Quality, Diversified Tenant Base Total annualized base rent (ABR): Credit rated tenants (35%) Unitary / master lease tenants (1) (56%) Individual / single asset tenants (9%) Top 10 Tenants (2) Rank Tenant % of ABR Rank Tenant % of ABR 1 * 20% 6 + 7% 2 + 18% 7 + 6% 3 + 12% 8 * 3% 4 + 9% 9 * 2% 5
Slide 11: Getty Growth Platform
Getty Growth Platform Organic Redevelopment Acquisitions Embedded growth derived Unlocking embedded value in Opportunity to consolidate a from long-term triple-net existing portfolio fragmented market leases — Five-year plan to redevelop — Convenience store sector is — 1% to 2% contractual 5% to 10%
Slide 12: Convenience Stores Dominate Retail Landscape
Convenience Stores Dominate Retail Landscape Number of convenience stores in service has Convenience Store Sales ($bn) (1) remained steady over last 10 years(1) — More than 154,000properties (81% selling fuel) represents 34% of all retail outlets — Single-store operators account for 63% of all conve
Slide 13: Large Market Opportunity
Large Market Opportunity Estimated Addressable Market Size(1) The Getty Competitive Advantage — Total market size estimated at $175 billion to $250 billion — Getty estimates up to 40% ($70 billion) of Strict adherence to proprietary the market is addressable for potential underwriting standards acqu
Slide 14: Financial Overview
Financial Overview
Slide 15: Income Growth, Scalable G&A
Income Growth, Scalable G&A Revenue ($ thousands) G&A ($ thousands) % of Assets 120,000 18,000 3.0% 16,000 100,000 2.5% 14,000 1.8% 1.9% 80,000 12,000 2.0% 1.6% 1.6% 10,000 60,000 1.5% 110,733 115,266 8,000 16,930 14,154 40,000 6,000 1.0% 4,000 20,000 0.5% 28,427 27,648 2,000 4,044 3,493 - - 0.0% 1Q
Slide 16: Strong Balance Sheet
Strong Balance Sheet Credit Agreement Credit Statistics — Revolving Credit Facility Debt to Total Capitalization 25% — $175 million — Matures 2018 with 1-year option Net Debt to EBITDA (1) 3.4x — LIBOR +195 to 325 bps based on leverage Fixed Charge Coverage (1) 3.2x Weighted Average Interest Rate 5.
Slide 17: Redevelopment Projects
Redevelopment Projects Redevelopment Activity ($ thousands) Anticipated Investment Total As Of Estimated Market Asset Type Investment(1) 3/31/17 Completion(2) Active Projects White Plains, NY Retail $368 $147 2017 Howell, NJ Retail 549 8 2018 Millerton, NY Retail & QSR 943 36 2018 Phoenixville, PA F
Slide 18: Consistent Dividend Growth
Consistent Dividend Growth QuarterlyDividendsDeclaredperShare(1) $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1) Excludes special dividends of $0.05, $0.14 and $0.22 per share in 4Q13, 4Q14 and 4Q15, respectively 17
Slide 19: Investment Highlights
Investment Highlights 1 National Retail Net Lease Portfolio Located in Mature and High Growth Markets Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants 2 with Long-Term Triple-Net Leases Leadership Position with Proven Platform to Successfully Pursue Growth in a 3 Cons
Slide 20: Appendix
Appendix
Slide 21: Reconciliation of Net Income to FFO and AFFO
Reconciliation of Net Income to FFO and AFFO 3 months ended March 31, 12 months ended December 31, (1) (3) (2) (3) $ in thousands, except per share amounts 2016 2017 2015 2016 Net earnings $7,703 $9,704 $37,410 $38,411 Depreciation and amortization of real estate assets 4,622 4,392 16,974 19,170 Los