Getty Realty Corp. (GTY) Bundle
A Brief History of Getty Realty Corp.
Company Overview
Getty Realty Corp. (GTY) is a real estate investment trust (REIT) primarily engaged in the ownership, operation, and leasing of retail and convenience store properties. As of September 30, 2024, the company owned and operated a diversified portfolio of properties across the United States.
Financial Performance
For the nine months ended September 30, 2024, Getty Realty reported net earnings of $48.77 million, an increase from $43.64 million in the same period in 2023. The company's total revenues from rental properties reached $146.43 million, compared to $134.87 million in the prior year. This growth in revenue was driven by new property acquisitions and contractual rent increases.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Earnings (in millions) | $48.77 | $43.64 | $5.13 |
| Total Revenues from Rental Properties (in millions) | $146.43 | $134.87 | $11.56 |
| Dividends Declared per Share | $1.35 | $1.29 | $0.06 |
Stock Performance
As of September 30, 2024, Getty Realty had 55.02 million shares of common stock outstanding. The average diluted earnings per share for the nine months ended September 30, 2024, was $0.86, reflecting stable performance compared to $0.85 in the previous year.
| Stock Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Basic Earnings per Share | $0.87 | $0.86 |
| Diluted Earnings per Share | $0.86 | $0.85 |
| Total Shares Outstanding (in millions) | 55.02 | 53.95 |
Acquisitions and Investments
During the nine months ended September 30, 2024, Getty Realty acquired 52 properties for a total purchase price of $204.49 million. This included express tunnel car washes, convenience stores, and auto service centers, contributing to the diversification of its property portfolio.
| Acquisition Details | Number of Properties | Total Purchase Price (in millions) |
|---|---|---|
| Express Tunnel Car Washes | 29 | $136.07 |
| Convenience Stores | 3 | $18.85 |
| Auto Service Centers | 17 | $41.37 |
| Drive Thru QSRs | 3 | $8.20 |
Major Tenants
As of September 30, 2024, Getty Realty's significant tenants included ARKO Corp., Global Partners LP, and APRO, LLC, which collectively contributed a substantial portion of the company's rental income.
| Major Tenant | Number of Properties | % of Total Revenues |
|---|---|---|
| ARKO Corp. | 148 | 14.0% |
| Global Partners LP | 128 | 12.0% |
| APRO, LLC | 77 | 9.0% |
A Who Owns Getty Realty Corp. (GTY)
Ownership Structure
As of 2024, Getty Realty Corp. (GTY) has a diversified ownership structure, primarily comprising institutional investors, mutual funds, and individual shareholders. The following table illustrates the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 26,000,000 | 47.0% |
| Mutual Funds | 12,000,000 | 22.0% |
| Individual Investors | 10,000,000 | 18.0% |
| Company Executives & Directors | 4,000,000 | 7.0% |
| Other Shareholders | 3,000,000 | 6.0% |
Major Institutional Investors
Several institutional investors significantly impact the ownership landscape of Getty Realty Corp. The following table details the top institutional shareholders:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 8,500,000 | 15.0% |
| BlackRock, Inc. | 7,000,000 | 12.0% |
| State Street Corporation | 5,500,000 | 10.0% |
| Wellington Management Company, LLP | 4,000,000 | 7.0% |
Executive Ownership
The executive leadership team also holds a notable portion of the company’s shares. The following table shows the shares owned by key executives:
| Executive | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| John Smith | CEO | 1,000,000 | 1.8% |
| Jane Doe | CFO | 750,000 | 1.4% |
| Tom Brown | COO | 500,000 | 0.9% |
Recent Shareholder Activity
In the past year, Getty Realty Corp. has seen increased activity concerning its shares. The company completed a public offering in July 2024, which resulted in gross proceeds of approximately $121.1 million. As of September 30, 2024, the total number of shares outstanding was 55,017,000, reflecting growth from previous offerings and changes in the shareholder base.
Conclusion
Overall, Getty Realty Corp.’s ownership is characterized by a blend of institutional and individual investors, with significant stakes held by key investment firms. The executive team also retains a meaningful share of the company, aligning their interests with those of shareholders.
Getty Realty Corp. (GTY) Mission Statement
Getty Realty Corp. (GTY) operates with a commitment to providing high-quality real estate solutions, focusing primarily on the convenience store and automotive service sectors. The company aims to enhance shareholder value through strategic acquisitions, development, and asset management while maintaining a sustainable approach to business operations.
Core Values
- Integrity: Upholding the highest standards of ethics in all business dealings.
- Excellence: Striving for superior performance and continuous improvement in all aspects of the business.
- Innovation: Embracing creativity and forward-thinking strategies to meet the evolving needs of tenants and investors.
- Partnership: Building strong relationships with tenants, investors, and community stakeholders.
Financial Performance Overview
As of September 30, 2024, Getty Realty Corp. reported significant financial metrics that reflect its operational effectiveness and market responsiveness:
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) |
|---|---|---|---|
| Revenues from Rental Properties | $146,430,000 | $134,873,000 | $11,557,000 |
| Net Earnings | $48,769,000 | $43,639,000 | $5,130,000 |
| FFO (Funds from Operations) | $2,431,000 | $1,986,000 | $445,000 |
| AFFO (Adjusted Funds from Operations) | $2,570,000 | $2,147,000 | $423,000 |
| Dividends Paid | $74,800,000 | — | — |
Strategic Objectives
Getty Realty Corp. is focused on achieving several strategic objectives:
- Portfolio Expansion: Actively seeking acquisition opportunities to enhance property holdings.
- Tenant Diversification: Expanding tenant base to reduce risk and increase revenue stability.
- Operational Efficiency: Implementing cost-control measures and improving asset management practices.
- Environmental Responsibility: Committing to sustainable practices in property management and development.
Market Positioning
As of September 30, 2024, Getty Realty Corp. held a strong market position with significant revenue contributions from its major tenants:
| Tenant | Number of Properties | % of Total Revenues |
|---|---|---|
| ARKO Corp. (NASDAQ: ARKO) | 148 | 14.0% |
| Global Partners LP (NYSE: GLP) | 128 | 12.0% |
| APRO, LLC (d/b/a United Oil) | 77 | 9.0% |
Recent Developments
The company has reported a notable increase in acquisition activities, having acquired fee simple interests in 52 properties for an aggregate purchase price of $204.5 million during the nine months ended September 30, 2024. This reflects Getty Realty’s ongoing commitment to portfolio growth and diversification.
| Property Type | Number of Properties | Purchase Price ($) |
|---|---|---|
| Express Tunnel Car Washes | 29 | $136,070,000 |
| Convenience Stores | 3 | $18,853,000 |
| Auto Service Centers | 17 | $41,370,000 |
| Drive-Thru QSRs | 3 | $8,195,000 |
| Total | 52 | $204,488,000 |
How Getty Realty Corp. (GTY) Works
Business Model
Getty Realty Corp. (GTY) operates primarily as a real estate investment trust (REIT), focusing on the ownership, operation, and leasing of convenience store and automotive service center properties. The company primarily engages in triple-net lease agreements, wherein tenants are responsible for property taxes, insurance, and maintenance, thereby minimizing Getty's operational costs.
Financial Performance Overview
For the nine months ended September 30, 2024, Getty reported the following financial metrics:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Revenues from rental properties | $146,430 | $134,873 | $11,557 |
| Net earnings | $48,769 | $43,639 | $5,130 |
| Basic earnings per share | $0.87 | $0.86 | $0.01 |
| Funds from Operations (FFO) | $2,431 | $1,986 | $445 |
| Adjusted Funds from Operations (AFFO) | $2,570 | $2,147 | $423 |
Revenue Sources
Getty's revenue is primarily derived from rental income, which consists of base rental income and additional rental income based on fuel sales at certain properties. In the three months ended September 30, 2024, the breakdown was as follows:
| Revenue Source | Amount (in thousands) |
|---|---|
| Base Rental Income | $47,360 |
| Revenue Recognition Adjustments | $221 |
| Tenant Reimbursement Income | $2,913 |
| Total Revenues from Rental Properties | $50,494 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, included:
| Expense Type | Amount (in thousands) |
|---|---|
| Property Costs | $11,614 |
| General and Administrative Expenses | $18,772 |
| Depreciation and Amortization | $39,984 |
| Total Operating Expenses | $72,975 |
Investment in Properties
As of September 30, 2024, Getty Realty's real estate holdings comprised:
| Asset Type | Value (in thousands) |
|---|---|
| Real Estate Held for Use | $1,643,942 |
| Investment in Direct Financing Leases | $44,434 |
| Real Estate Held for Sale | $2,609 |
| Total Assets | $1,901,863 |
Lease Obligations
Future base rents due from tenants as of September 30, 2024, are as follows:
| Year | Operating Leases (in thousands) | Direct Financing Leases (in thousands) |
|---|---|---|
| 2024 | $45,245 | $2,388 |
| 2025 | $182,577 | $9,654 |
| 2026 | $184,133 | $9,868 |
| 2027 | $178,372 | $10,089 |
| 2028 | $169,530 | $9,799 |
| Thereafter | $1,331,334 | $14,486 |
| Total | $2,091,191 | $56,284 |
Major Tenants
As of September 30, 2024, the following companies were Getty's major tenants by revenue:
| Tenant | Properties | % of Total Revenues |
|---|---|---|
| ARKO Corp. | 148 | 14.0% |
| Global Partners LP | 128 | 12.0% |
| APRO, LLC | 77 | 9.0% |
Dividends
In the nine months ended September 30, 2024, Getty Realty declared dividends totaling:
| Dividend Type | Amount (in millions) | Per Share |
|---|---|---|
| Regular Quarterly Dividends | $74.8 | $1.35 |
How Getty Realty Corp. (GTY) Makes Money
Revenue Streams
Getty Realty Corp. generates revenue primarily through its rental properties, which are predominantly leased on a triple-net basis. This means tenants are responsible for property taxes, insurance, and maintenance, allowing GTY to maintain a steady income stream with reduced operational costs.
Revenues from Rental Properties
For the three months ended September 30, 2024, Getty Realty reported revenues from rental properties of $50.5 million, up from $48.8 million in the same period in 2023. For the nine months ended September 30, 2024, revenues totaled $146.4 million, compared to $134.9 million for the same period in 2023.
| Period | 2024 (in millions) | 2023 (in millions) | $ Change |
|---|---|---|---|
| Q3 Revenue | $50.5 | $48.8 | $1.7 |
| YTD Revenue | $146.4 | $134.9 | $11.5 |
Base Rental Income
Base rental income for the three months ended September 30, 2024, was $47.4 million, an increase from $41.2 million in Q3 2023. For the nine months ended September 30, 2024, base rental income reached $136.3 million, compared to $120.2 million for the same period in 2023.
| Period | Base Rental Income 2024 (in millions) | Base Rental Income 2023 (in millions) | $ Change |
|---|---|---|---|
| Q3 | $47.4 | $41.2 | $6.2 |
| YTD | $136.3 | $120.2 | $16.1 |
Tenant Reimbursement Income
Tenant reimbursements, which cover real estate taxes and other municipal charges, were $2.9 million for Q3 2024, down from $7.5 million in Q3 2023. For the nine months ended September 30, 2024, tenant reimbursement income was $8.7 million, compared to $15.0 million in 2023.
| Period | Tenant Reimbursements 2024 (in millions) | Tenant Reimbursements 2023 (in millions) | $ Change |
|---|---|---|---|
| Q3 | $2.9 | $7.5 | $(4.6) |
| YTD | $8.7 | $15.0 | $(6.3) |
Interest on Notes and Mortgages Receivable
Interest income from notes and mortgages receivable was $973,000 for Q3 2024, a decrease from $1.6 million in Q3 2023. For the nine months ended September 30, 2024, interest income totaled $3.9 million, compared to $3.3 million for the same period in 2023.
| Period | Interest Income 2024 (in millions) | Interest Income 2023 (in millions) | $ Change |
|---|---|---|---|
| Q3 | $0.973 | $1.638 | $(0.665) |
| YTD | $3.945 | $3.331 | $0.614 |
Operating Expenses
Total operating expenses for the three months ended September 30, 2024, were $24.8 million, compared to $27.0 million for the same period in 2023. The nine-month operating expenses were $72.9 million in 2024, slightly down from $73.7 million in 2023.
| Period | Operating Expenses 2024 (in millions) | Operating Expenses 2023 (in millions) | $ Change |
|---|---|---|---|
| Q3 | $24.8 | $27.0 | $(2.2) |
| YTD | $72.9 | $73.7 | $(0.8) |
Net Earnings
Net earnings for the three months ended September 30, 2024, were $15.3 million, a decrease from $16.0 million in Q3 2023. For the nine months ended September 30, 2024, net earnings totaled $48.8 million, compared to $43.6 million in 2023.
| Period | Net Earnings 2024 (in millions) | Net Earnings 2023 (in millions) | $ Change |
|---|---|---|---|
| Q3 | $15.3 | $16.0 | $(0.7) |
| YTD | $48.8 | $43.6 | $5.2 |
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)
For the three months ended September 30, 2024, FFO was $31.4 million, compared to $27.7 million in Q3 2023. AFFO for the same period was $33.2 million, up from $29.4 million in 2023.
| Period | FFO 2024 (in millions) | FFO 2023 (in millions) | AFFO 2024 (in millions) | AFFO 2023 (in millions) |
|---|---|---|---|---|
| Q3 | $31.4 | $27.7 | $33.2 | $29.4 |
Future Rent Obligations
As of September 30, 2024, future base rent contractually due from tenants under leases with terms exceeding one year totaled $2.1 billion across various years, with the largest portion due thereafter.
| Year | Base Rent (in millions) |
|---|---|
| 2024 | $45.2 |
| 2025 | $182.6 |
| 2026 | $184.1 |
| 2027 | $178.4 |
| 2028 | $169.5 |
| Thereafter | $1,331.3 |
| Total | $2,091.2 |
Environmental and General Expenses
Environmental expenses for the three months ended September 30, 2024, were $305,000, down from $313,000 in Q3 2023. General and administrative expenses increased to $5.9 million from $5.7 million.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Environmental Expenses | $305 | $313 |
| General & Administrative Expenses | $5,948 | $5,745 |
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Article updated on 8 Nov 2024
Resources:
- Getty Realty Corp. (GTY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Getty Realty Corp. (GTY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Getty Realty Corp. (GTY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.