Getty's Q1 2025: Unpacking Contradictions on Tariff Impacts, Zips Resolution, and Market Dynamics

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Revenue and Investment Trends:
- Getty Realty reported an increase in annualized base rent by 11.2% to approximately $199 million compared to the previous year.
- The growth was driven by rental increases in the in-place portfolio and successful investment activities.

Portfolio Performance and Tenant Stability:
- The company's tenants showed consistent operating performance, with rent coverage for automotive and convenience store assets remaining stable or improving.
- This stability was attributed to the recession-resistant nature of the tenants' businesses, which provide nondiscretionary goods and services.

Development and Investment Pipeline:
- Getty increased its committed investment pipeline to more than $110 million, distributed across automotive service, convenience stores, and drive-thru QSRs, with approximately 50% in auto service.
- The increase was due to the strong relationship-based sale-leaseback strategy, generating opportunities across target sectors despite macroeconomic uncertainties.

Balance Sheet and Financial Health:
- Getty's net debt to EBITDA was maintained at 5.2x, with fixed charge coverage at 3.5x.
- The company's strong financial position was supported by the funding of $125 million in new unsecured notes and the refinancing of its revolving credit facility.