Getty Realty Corp. Announces Third Quarter 2024 Results
Getty Realty Corp. (NYSE: GTY) reported strong Q3 2024 results with net earnings of $0.27 per share, FFO of $0.56 per share, and AFFO of $0.59 per share. The company invested $30.2 million across 16 properties at an 8.0% initial cash yield, plus an additional $15.1 million across four properties post-quarter. Base rental income grew 14.7% to $46.9 million in Q3.
Notable achievements include raising $121.1 million through a follow-on common stock offering, agreeing to issue $125.0 million in senior unsecured notes, and extending leases representing 11.0% of annualized base rent. The company raised its 2024 AFFO guidance to $2.32-$2.33 per share and maintains a committed investment pipeline exceeding $70.0 million for 24 properties.
Getty Realty Corp. (NYSE: GTY) ha riportato risultati solidi per il terzo trimestre del 2024, con utili netti di $0,27 per azione, FFO di $0,56 per azione e AFFO di $0,59 per azione. La società ha investito $30,2 milioni in 16 proprietà con un rendimento iniziale in contante dell'8,0%, oltre a $15,1 milioni in quattro proprietà dopo il trimestre. Il reddito da affitto di base è aumentato del 14,7% a $46,9 milioni nel terzo trimestre.
Tra i risultati notevoli vi è la raccolta di $121,1 milioni attraverso un'offerta di azioni ordinarie supplementare, l'accordo per emettere $125,0 milioni in titoli non garantiti senior e l'estensione di contratti d'affitto che rappresentano l'11,0% dell'affitto base annualizzato. La società ha aumentato la sua guida sull'AFFO 2024 a $2,32-$2,33 per azione e mantiene un pipeline d'investimento impegnata che supera i $70,0 milioni per 24 proprietà.
Getty Realty Corp. (NYSE: GTY) informó resultados sólidos en el tercer trimestre de 2024, con ganancias netas de $0.27 por acción, FFO de $0.56 por acción y AFFO de $0.59 por acción. La compañía invirtió $30.2 millones en 16 propiedades con un rendimiento inicial en efectivo del 8.0%, además de $15.1 millones en cuatro propiedades después del trimestre. Los ingresos por alquiler base crecieron un 14.7% a $46.9 millones en el tercer trimestre.
Los logros notables incluyen la recaudación de $121.1 millones a través de una oferta de acciones ordinarias adicional, el acuerdo para emitir $125.0 millones en notas no garantizadas senior, y la extensión de arrendamientos que representan el 11.0% del alquiler base anualizado. La compañía aumentó su pronóstico de AFFO 2024 a $2.32-$2.33 por acción y mantiene un pipeline de inversiones comprometido que supera los $70.0 millones para 24 propiedades.
게티 리얼티 Corp. (NYSE: GTY)는 2024년 3분기 실적을 발표하며 주당 순이익 $0.27, 주당 FFO $0.56, 주당 AFFO $0.59를 기록했습니다. 이 회사는 8.0%의 초기 현금 수익률로 16개의 부동산에 $30.2 백만 달러를 투자하였고, 분기 이후 4개의 부동산에 추가로 $15.1 백만 달러를 투자했습니다. 기본 임대 수입은 3분기 동안 14.7% 증가하여 $46.9 백만 달러를 기록했습니다.
주목할 만한 성과로는 후속 일반주식 공모를 통해 $121.1 백만 달러를 모집하고, $125.0 백만 달러의 선순위 무담보 채권을 발행하기로 합의하며, 연간 기본 임대료의 11.0%에 해당하는 임대 계약을 연장한 점이 있습니다. 이 회사는 2024 AFFO 가이던스를 주당 $2.32-$2.33로 상향 조정했으며, 24개의 부동산에 대해 $70.0 백만 달러를 초과하는 약속된 투자 파이프라인을 유지하고 있습니다.
Getty Realty Corp. (NYSE: GTY) a annoncé de bons résultats pour le troisième trimestre 2024, avec un bénéfice net de 0,27 $ par action, un FFO de 0,56 $ par action et un AFFO de 0,59 $ par action. L'entreprise a investi 30,2 millions de dollars dans 16 propriétés avec un rendement initial en espèces de 8,0 %, ainsi que 15,1 millions de dollars supplémentaires dans quatre propriétés après le trimestre. Les revenus locatifs de base ont augmenté de 14,7 % pour atteindre 46,9 millions de dollars au troisième trimestre.
Parmi les réalisations notables, on trouve la collecte de 121,1 millions de dollars grâce à une offre d'actions ordinaires, l'accord pour émettre 125,0 millions de dollars en obligations senior non garanties et l'extension de baux représentant 11,0 % du loyer de base annualisé. L'entreprise a augmenté sa prévision d'AFFO 2024 à 2,32 $ - 2,33 $ par action et maintient un pipeline d'investissement engagé dépassant 70,0 millions de dollars pour 24 propriétés.
Getty Realty Corp. (NYSE: GTY) hat solide Ergebnisse für das dritte Quartal 2024 gemeldet, mit einem Nettogewinn von $0,27 pro Aktie, FFO von $0,56 pro Aktie und AFFO von $0,59 pro Aktie. Das Unternehmen investierte $30,2 Millionen in 16 Immobilien mit einer anfänglichen Barausbeute von 8,0%, sowie zusätzlichen $15,1 Millionen in vier Immobilien nach dem Quartal. Die Mieteinnahmen aus Grundmietverträgen stiegen im 3. Quartal um 14,7% auf $46,9 Millionen.
Bemerkenswerte Erfolge umfassen die Beschaffung von $121,1 Millionen durch ein zusätzliches Angebot von Stammaktien, die Vereinbarung zur Emission von $125,0 Millionen an unbesicherten Senioranleihen und die Verlängerung von Mietverträgen, die 11,0% der annualisierten Grundmiete repräsentieren. Das Unternehmen hat die Prognose für das AFFO 2024 auf $2,32-$2,33 pro Aktie angehoben und verfügt über ein engagiertes Investitionspipeline von über $70,0 Millionen für 24 Immobilien.
- Base rental income increased 14.7% to $46.9 million in Q3 2024
- Raised $121.1 million through equity offering
- Secured $125.0 million in new senior unsecured notes
- Increased 2024 AFFO guidance to $2.32-$2.33 per share
- Investment pipeline of over $70 million for 24 properties
- Extended portfolio's weighted average lease term to over 10 years
- Net earnings per share decreased to $0.27 in Q3 2024 from $0.31 in Q3 2023
- Recorded net loss of $1.5 million on property dispositions in Q3 2024
- Property operating expenses increased
Insights
Getty Realty's Q3 2024 results demonstrate solid financial performance and strategic growth. The REIT reported
Base rental income grew
The company's balance sheet strengthening efforts include raising
- Reports
- Raises 2024 Full Year Earnings Guidance -
NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Getty Realty Corp. (NYSE: GTY) (“Getty” or the “Company”), a net lease REIT focused on convenience and automotive retail real estate, announced today its financial and operating results for the quarter ended September 30, 2024.
Third Quarter 2024 Highlights
- Net earnings:
$0.27 per share - Funds From Operations (“FFO”):
$0.56 per share - Adjusted Funds From Operations (“AFFO”):
$0.59 per share - Invested
$30.2 million across 16 properties at an8.0% initial cash yield, plus an additional$15.1 million across four properties subsequent to quarter end - Raised gross proceeds of approximately
$121.1 million in a follow-on common stock offering in connection with forward sales agreements - Agreed to issue
$125.0 million of new senior unsecured notes to certain investors in a private placement transaction - Extended leases totaling
11.0% of annualized base rent, or ABR, and increased the portfolio's weighted average lease term, or WALT, to more than 10.0 years - As of October 23, 2024, had a committed investment pipeline of more than
$70.0 million for the development and/or acquisition of 24 convenience and automotive retail properties
“We are pleased to have produced another quarter of consistent earnings growth, while expanding and diversifying our portfolio of convenience and automotive retail properties," stated Christopher J. Constant, Getty’s President & Chief Executive Officer. “We continue to leverage our expertise and relationships to identify attractive investment opportunities, having deployed more than
Net Earnings, FFO and AFFO
All per share amounts are presented on a fully diluted per common share basis, unless stated otherwise. FFO and AFFO are “Non-GAAP Financial Measures” which are defined and reconciled to net earnings at the end of this release.
| ($ in thousands, except per share amounts) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net earnings | $ | 15,335 | $ | 16,033 | $ | 48,769 | $ | 43,639 | ||||||||
| Net earnings per share | 0.27 | 0.31 | 0.86 | 0.85 | ||||||||||||
| FFO | $ | 31,441 | $ | 27,724 | $ | 91,506 | $ | 78,703 | ||||||||
| FFO per share | 0.56 | 0.53 | 1.64 | 1.56 | ||||||||||||
| AFFO | $ | 33,161 | $ | 29,400 | $ | 96,762 | $ | 85,088 | ||||||||
| AFFO per share | 0.59 | 0.57 | 1.74 | 1.68 | ||||||||||||
Select Financial Results
Revenues from Rental Properties
| ($ in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Rental income (a) | $ | 47,581 | $ | 41,310 | $ | 137,691 | $ | 119,826 | ||||||||
| Tenant reimbursement income | 2,913 | 7,538 | 8,739 | 15,047 | ||||||||||||
| Revenues from rental properties | $ | 50,494 | $ | 48,848 | $ | 146,430 | $ | 134,873 | ||||||||
(a) Rental income includes base rental income, additional rental income, if any, and certain non-cash revenue recognition adjustments.
For the quarter ended September 30, 2024, base rental income grew
The growth in base rental income in both periods was driven by incremental revenue from recently acquired properties, contractual rent increases for in-place leases, and rent commencements from completed redevelopments, partially offset by property dispositions.
Interest (Income) on Notes and Mortgages Receivable
| ($ in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Interest on notes and mortgages receivable | $ | 973 | $ | 1,638 | $ | 3,945 | $ | 3,331 | ||||||||
The change in interest earned on notes and mortgages receivable for the quarter ended September 30, 2024 was due to smaller average development funding balances as compared to the prior year period. The change in interest earned on notes and mortgages receivable for the nine months ended September 30, 2024 was due to larger average development funding balances and higher development funding rates as compared to the prior year period.
Property Costs
| ($ in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Property operating expenses | $ | 3,751 | $ | 8,426 | $ | 11,174 | $ | 17,655 | ||||||||
| Leasing and redevelopment expenses | 176 | 284 | 440 | 566 | ||||||||||||
| Property costs | $ | 3,927 | $ | 8,710 | $ | 11,614 | $ | 18,221 | ||||||||
The change in property operating expenses in both periods was primarily due to lower reimbursable and non-reimbursable real estate taxes.
The change in leasing and redevelopment expenses for the quarter ended September 30, 2024 was due to lower professional fees and demolition costs, partially offset by certain redevelopment project write-offs. The change in leasing and redevelopment expenses for the nine months ended September 30, 2024 was primarily due to lower demolition costs, partially offset by by certain redevelopment project write-offs.
Other Expenses
| ($ in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Environmental expenses | $ | 305 | $ | 313 | $ | 138 | $ | 977 | ||||||||
| General and administrative expenses | 5,948 | 5,745 | 18,772 | 17,942 | ||||||||||||
| Impairments | 675 | 986 | 2,467 | 3,970 | ||||||||||||
The change in environmental expenses in both periods was primarily due to changes in environmental estimates and reduced accretion expense. Environmental expenses vary from period to period and, accordingly, undue reliance should not be placed on the magnitude or the direction of changes in reported environmental expenses for any one period, or a comparison to prior periods.
The change in general and administrative expenses in both periods was primarily due to higher employee-related expenses and certain professional fees. For the nine months ended September 30, 2024, these increases were partially offset by a decrease in non-recurring retirement and severance costs.
Impairment charges in all periods were driven by the accumulation of asset retirement costs at certain properties as a result of changes in estimated environmental liabilities, which increased the carrying values of these properties in excess of their fair values, and were also attributable to reductions in estimated undiscounted cash flows expected to be received during the assumed holding period for certain of our properties. Additionally, certain impairment charges for the nine months ended September 30, 2024 and 2023 were attributable to reductions in estimated sales prices from third-party offers based on signed contracts, letters of intent or indicative bids for certain of our properties.
Portfolio Activities
Acquisitions and Development Funding
During the quarter ended September 30, 2024, the Company invested
- The acquisition of 12 properties for
$28.8 million (net of previously funded amounts), including ten express tunnel car washes, one auto service center, and one convenience store. - Incremental development funding of
$1.4 million for the construction of four new-to-industry express tunnel car washes. As of September 30, 2024, the Company had advanced aggregate development funding of$32.9 million for the development of twelve properties that are either owned by the Company and under construction by our tenants, or which the Company expects to acquire via sale-leaseback transactions at the end of the respective construction periods.
Subsequent to quarter end, the Company invested approximately
Investment Pipeline
As of October 23, 2024, the Company had a committed investment pipeline of more than
Redevelopments
During the quarter ended September 30, 2024, rent commenced on a redevelopment property located in the Providence (RI) metro area and leased to Chipotle Mexican Grill under a long term, triple net lease.
During the quarter ended September 30, 2024, the Company signed leases for three new redevelopment projects and, as of September 30, 2024, had signed leases for five redevelopment projects, including one site under construction and four sites pending recapture from our net lease portfolio. Other potential projects are in various stages of feasibility planning.
Lease Extensions
During the quarter ended September 30, 2024, the Company extended the lease terms for two unitary leases totaling
- The Company and Global Partners LP ("Global") agreed to an amended unitary lease that extended the term of the lease by seven years to August 2034, increased the aggregate ABR due under the lease by
$0.3 million , and reduced the number of the properties under the lease from 93 to 70. The 23 properties removed from the unitary lease were sold to Global for$4.4 million and the proceeds were redeployed into new income-producing assets. All other material terms of the lease remained substantially unchanged. - A renewal option for the Company’s unitary lease with CPD Energy was automatically exercised, adding 10 years of term and extending the expiration of the lease to January 2036.
During the nine months ended September 30, 2024, the Company extended the lease terms for four unitary leases totaling
As a result of the extended leases and the Company's 2024 acquisition activity, the portfolio's WALT was 10.1 years as of September 30, 2024, as compared to 8.9 years as of December 31, 2023.
Dispositions
During the quarter ended September 30, 2024, the Company sold 23 properties for gross proceeds of
Balance Sheet and Capital Markets
As of September 30, 2024, the Company had
Equity Capital Markets
In July 2024, the Company completed a follow-on public offering of 4.0 million shares of common stock in connection with forward sales agreements. Upon settlement, the offering is anticipated to raise gross proceeds of approximately
During the quarter ended September 30, 2024, the Company settled 0.8 million shares of common stock subject to outstanding forward sale agreements under its at-the-market ("ATM") equity program for net proceeds of approximately
As of September 30, 2024, the Company had a total of 4.4 million shares of common stock subject to outstanding forward equity agreements under its ATM equity offering program and in connection with its July 2024 follow-on public offering, which upon settlement are anticipated to raise gross proceeds of approximately
Debt Capital Markets
During the quarter ended September 30, 2024, the Company agreed to issue
The Company anticipates the transaction will close during the quarter ending December 31, 2024 with funding occurring during the quarter ending March 31, 2025, although there can be no assurance that the transaction is executed according to these dates, or at all. Use of proceeds would include (i) the repayment of
2024 Guidance
As a result of year-to-date investment and capital markets activity, the Company is raising its 2024 AFFO guidance to a range of
The guidance is based on current assumptions and is subject to risks and uncertainties more fully described in this press release and the Company’s periodic reports filed with the SEC.
Webcast Information
Getty Realty Corp. will host a conference call and webcast on Thursday, October 24, 2024 at 8:30 a.m. EDT. To participate in the call, please dial 1-877-423-9813, or 1-201-689-8573 for international participants, ten minutes before the scheduled start. Participants may also access the call via live webcast by visiting the investors section of the Company's website at ir.gettyrealty.com.
If you cannot participate in the live event, a replay will be available on Thursday, October 24, 2024 beginning at 11:30 a.m. EDT through 11:59 p.m. EDT, Thursday, October 31, 2024. To access the replay, please dial 1-844-512-2921, or 1-412-317-6671 for international participants, and reference pass code 13748932.
About Getty Realty Corp.
Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of September 30, 2024, the Company’s portfolio included 1,108 freestanding properties located in 42 states across the United States and Washington, D.C.
Non-GAAP Financial Measures
In addition to measurements defined by accounting principles generally accepted in the United States of America (“GAAP”), the Company also focuses on Funds From Operations (“FFO”) and Adjusted Funds From Operations (“AFFO”) to measure its performance.
FFO and AFFO are generally considered by analysts and investors to be appropriate supplemental non-GAAP measures of the performance of REITs. FFO and AFFO are not in accordance with, or a substitute for, measures prepared in accordance with GAAP. In addition, FFO and AFFO are not based on any comprehensive set of accounting rules or principles. Neither FFO nor AFFO represent cash generated from operating activities calculated in accordance with GAAP and therefore these measures should not be considered an alternative for GAAP net earnings or as a measure of liquidity. These measures should only be used to evaluate the Company’s performance in conjunction with corresponding GAAP measures.
FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as GAAP net earnings before (i) depreciation and amortization of real estate assets, (ii) gains or losses on dispositions of real estate assets, (iii) impairment charges, and (iv) the cumulative effect of accounting changes.
The Company defines AFFO as FFO excluding (i) certain revenue recognition adjustments (defined below), (ii) certain environmental adjustments (defined below), (iii) stock-based compensation, (iv) amortization of debt issuance costs and (v) other non-cash and/or unusual items that are not reflective of the Company’s core operating performance.
Other REITs may use definitions of FFO and/or AFFO that are different than the Company’s and, accordingly, may not be comparable.
The Company believes that FFO and AFFO are helpful to analysts and investors in measuring the Company’s performance because both FFO and AFFO exclude various items included in GAAP net earnings that do not relate to, or are not indicative of, the core operating performance of the Company’s portfolio. Specifically, FFO excludes items such as depreciation and amortization of real estate assets, gains or losses on dispositions of real estate assets, and impairment charges. With respect to AFFO, the Company further excludes the impact of (i) deferred rental revenue (straight-line rent), the net amortization of above-market and below-market leases, adjustments recorded for the recognition of rental income from direct financing leases, and the amortization of deferred lease incentives (collectively, “Revenue Recognition Adjustments”), (ii) environmental accretion expenses, environmental litigation accruals, insurance reimbursements, legal settlements and judgments, and changes in environmental remediation estimates (collectively, “Environmental Adjustments”), (iii) stock-based compensation expense, (iv) amortization of debt issuance costs and (v) other items, which may include allowances for credit losses on notes and mortgages receivable and direct financing leases, losses on extinguishment of debt, retirement and severance costs, and other items that do not impact the Company’s recurring cash flow and which are not indicative of its core operating performance.
The Company pays particular attention to AFFO which it believes provides the most useful depiction of the core operating performance of its portfolio. By providing AFFO, the Company believes it is presenting information that assists analysts and investors in their assessment of the Company’s core operating performance, as well as the sustainability of its core operating performance with the sustainability of the core operating performance of other real estate companies. For a tabular reconciliation of FFO and AFFO to GAAP net earnings, see the table captioned “Reconciliation of Net Earnings to Funds From Operations and Adjusted Funds From Operations” included herein.
Forward-Looking Statements
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. When the words “believes,” “expects,” “plans,” “projects,” “estimates,” “anticipates,” “predicts,” “outlook” and similar expressions are used, they identify forward-looking statements. These forward-looking statements are based on management’s current beliefs and assumptions and information currently available to management and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Examples of forward-looking statements include, but are not limited to, those regarding the company’s 2024 AFFO per share guidance, those made by Mr. Constant, statements regarding the recapture and transfer of certain net lease retail properties, statements regarding the ability to obtain appropriate permits and approvals, and statements regarding AFFO as a measure best representing core operating performance and its utility in comparing the sustainability of the company’s core operating performance with the sustainability of the core operating performance of other REITs.
Information concerning factors that could cause the company’s actual results to differ materially from these forward-looking statements can be found elsewhere from this press release, including, without limitation, those statements in the company’s periodic reports filed with the securities and exchange commission. The company undertakes no obligation to publicly release revisions to these forward-looking statements to reflect future events or circumstances or reflect the occurrence of unanticipated events.
| GETTY REALTY CORP. CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except per share amounts) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Real estate: | ||||||||
| Land | $ | 912,922 | $ | 867,884 | ||||
| Buildings and improvements | 980,753 | 847,339 | ||||||
| Investment in direct financing leases, net | 44,434 | 59,964 | ||||||
| Construction in progress | 102 | 426 | ||||||
| Real estate held for use | 1,938,211 | 1,775,613 | ||||||
| Less accumulated depreciation and amortization | (294,269 | ) | (265,593 | ) | ||||
| Real estate held for use, net | 1,643,942 | 1,510,020 | ||||||
| Lease intangible assets, net | 121,455 | 100,315 | ||||||
| Real estate held for sale, net | 2,609 | 2,429 | ||||||
| Real estate, net | 1,768,006 | 1,612,764 | ||||||
| Notes and mortgages receivable | 39,004 | 112,008 | ||||||
| Cash and cash equivalents | 4,013 | 3,307 | ||||||
| Restricted cash | 3,009 | 1,979 | ||||||
| Deferred rent receivable | 59,225 | 54,424 | ||||||
| Accounts receivable | 2,411 | 5,012 | ||||||
| Right-of-use assets - operating | 12,832 | 14,571 | ||||||
| Right-of-use assets - finance | 119 | 174 | ||||||
| Prepaid expenses and other assets, net | 13,244 | 18,066 | ||||||
| Total assets | $ | 1,901,863 | $ | 1,822,305 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Borrowings under Revolving Credit Facility | $ | 12,500 | $ | 10,000 | ||||
| Senior Unsecured Notes, net | 673,594 | 673,406 | ||||||
| Term Loan, net | 148,636 | 72,692 | ||||||
| Environmental remediation obligations | 20,812 | 22,369 | ||||||
| Dividends payable | 25,422 | 24,850 | ||||||
| Lease liability - operating | 14,170 | 16,051 | ||||||
| Lease liability - finance | 403 | 595 | ||||||
| Accounts payable and accrued liabilities, net | 42,935 | 46,790 | ||||||
| Total liabilities | 938,472 | 866,753 | ||||||
| Commitments and contingencies | — | — | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, 53,952,539 shares issued and outstanding, respectively | 550 | 540 | ||||||
| Accumulated other comprehensive income (loss) | (3,974 | ) | (4,021 | ) | ||||
| Additional paid-in capital | 1,087,562 | 1,053,129 | ||||||
| Dividends paid in excess of earnings | (120,747 | ) | (94,096 | ) | ||||
| Total stockholders’ equity | 963,391 | 955,552 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,901,863 | $ | 1,822,305 | ||||
| GETTY REALTY CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share amounts) | ||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues: | ||||||||||||||||
| Revenues from rental properties | $ | 50,494 | $ | 48,848 | $ | 146,430 | $ | 134,873 | ||||||||
| Interest on notes and mortgages receivable | 973 | 1,638 | 3,945 | 3,331 | ||||||||||||
| Total revenues | 51,467 | 50,486 | 150,375 | 138,204 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Property costs | 3,927 | 8,710 | 11,614 | 18,221 | ||||||||||||
| Impairments | 675 | 986 | 2,467 | 3,970 | ||||||||||||
| Environmental | 305 | 313 | 138 | 977 | ||||||||||||
| General and administrative | 5,948 | 5,745 | 18,772 | 17,942 | ||||||||||||
| Depreciation and amortization | 13,960 | 11,288 | 39,984 | 32,580 | ||||||||||||
| Total operating expenses | 24,815 | 27,042 | 72,975 | 73,690 | ||||||||||||
| (Loss) gain on dispositions of real estate | (1,471 | ) | 583 | (286 | ) | 1,486 | ||||||||||
| Operating income | 25,181 | 24,027 | 77,114 | 66,000 | ||||||||||||
| Other income, net | 206 | 89 | 504 | 383 | ||||||||||||
| Interest expense | (10,052 | ) | (8,083 | ) | (28,849 | ) | (22,701 | ) | ||||||||
| Loss on extinguishment of debt | — | — | — | (43 | ) | |||||||||||
| Net earnings | $ | 15,335 | $ | 16,033 | $ | 48,769 | $ | 43,639 | ||||||||
| Basic earnings per common share: | ||||||||||||||||
| Net earnings | $ | 0.27 | $ | 0.31 | $ | 0.87 | $ | 0.86 | ||||||||
| Diluted earnings per common share: | ||||||||||||||||
| Net earnings | $ | 0.27 | $ | 0.31 | $ | 0.86 | $ | 0.85 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 54,249 | 50,621 | 54,064 | 49,088 | ||||||||||||
| Diluted | 54,619 | 50,712 | 54,194 | 49,301 | ||||||||||||
| Other comprehensive income: | ||||||||||||||||
| Unrealized (loss) gain on cash flow hedges | (2,698 | ) | — | 584 | — | |||||||||||
| Cash flow hedge income reclassified to interest expense | (225 | ) | — | (537 | ) | — | ||||||||||
| Total other comprehensive income | (2,923 | ) | — | 47 | — | |||||||||||
| Comprehensive income | $ | 12,412 | $ | 16,033 | $ | 48,816 | $ | 43,639 | ||||||||
| GETTY REALTY CORP. RECONCILIATION OF NET EARNINGS TO FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS (Unaudited) (in thousands, except per share amounts) | ||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net earnings | $ | 15,335 | $ | 16,033 | $ | 48,769 | $ | 43,639 | ||||||||
| Depreciation and amortization of real estate assets | 13,960 | 11,288 | 39,984 | 32,580 | ||||||||||||
| Loss (gain) on dispositions of real estate | 1,471 | (583 | ) | 286 | (1,486 | ) | ||||||||||
| Impairments | 675 | 986 | 2,467 | 3,970 | ||||||||||||
| Funds from operations (FFO) | 31,441 | 27,724 | 91,506 | 78,703 | ||||||||||||
| Revenue recognition adjustments | ||||||||||||||||
| Deferred rental revenue (straight-line rent) | (1,484 | ) | (1,582 | ) | (4,801 | ) | (4,057 | ) | ||||||||
| Amortization of intangible market lease assets and liabilities | (134 | ) | (285 | ) | (356 | ) | (822 | ) | ||||||||
| Amortization of investments in direct financing leases | 1,239 | 1,521 | 4,519 | 4,444 | ||||||||||||
| Amortization of lease incentives | 158 | 280 | 93 | 815 | ||||||||||||
| Total revenue recognition adjustments | (221 | ) | (66 | ) | (545 | ) | 380 | |||||||||
| Environmental Adjustments | ||||||||||||||||
| Accretion expense | 91 | 144 | 299 | 422 | ||||||||||||
| Changes in environmental estimates | (68 | ) | (98 | ) | (823 | ) | (175 | ) | ||||||||
| Insurance reimbursements | — | (86 | ) | (65 | ) | (138 | ) | |||||||||
| Legal settlements and judgments | — | — | (41 | ) | — | |||||||||||
| Total environmental adjustments | 23 | (40 | ) | (630 | ) | 109 | ||||||||||
| Other Adjustments | ||||||||||||||||
| Stock-based compensation expense | 1,561 | 1,443 | 4,491 | 4,162 | ||||||||||||
| Amortization of debt issuance costs | 563 | 249 | 1,690 | 752 | ||||||||||||
| Recovery for credit loss on notes and mortgages receivable and direct financing leases | (206 | ) | — | (206 | ) | — | ||||||||||
| Loss on extinguishment of debt | — | — | — | 43 | ||||||||||||
| Retirement and severance costs | — | 90 | 456 | 939 | ||||||||||||
| Total other adjustments | 1,918 | 1,782 | 6,431 | 5,896 | ||||||||||||
| Adjusted Funds from operations (AFFO) | $ | 33,161 | $ | 29,400 | $ | 96,762 | $ | 85,088 | ||||||||
| Basic per share amounts: | ||||||||||||||||
| Net earnings | $ | 0.27 | $ | 0.31 | $ | 0.87 | $ | 0.86 | ||||||||
| FFO (a) | 0.56 | 0.53 | 1.65 | 1.56 | ||||||||||||
| AFFO (a) | 0.60 | 0.57 | 1.74 | 1.69 | ||||||||||||
| Diluted per share amounts: | ||||||||||||||||
| Net earnings | $ | 0.27 | $ | 0.31 | $ | 0.86 | $ | 0.85 | ||||||||
| FFO (a) | 0.56 | 0.53 | 1.64 | 1.56 | ||||||||||||
| AFFO (a) | 0.59 | 0.57 | 1.74 | 1.68 | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 54,249 | 50,621 | 54,064 | 49,088 | ||||||||||||
| Diluted | 54,619 | 50,712 | 54,194 | 49,301 | ||||||||||||
(a) Dividends paid and undistributed earnings allocated, if any, to unvested restricted stockholders are deducted from FFO and AFFO for the computation of the per share amounts. The following amounts were deducted:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| FFO | $ | 832 | $ | 679 | $ | 2,431 | $ | 1,986 | ||||||||
| AFFO | 878 | 720 | 2,570 | 2,147 | ||||||||||||
| Contacts: | Brian Dickman | Investor Relations | ||
| Chief Financial Officer | (646) 349-0598 | |||
| (646) 349-6000 | ir@gettyrealty.com |
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