Getty Realty (GTY) Q3 Earnings call transcript Oct 24, 2024

Getty Realty Corporation, a leading investor in convenience and automotive retail real estate, held its third quarter earnings call, highlighting the company's strong performance and strategic growth initiatives. The call, led by CEO Christopher Constant, demonstrated the company's ability to navigate market challenges while executing on its strategic objectives.

Financial Performance and Guidance

The call began with Joshua Dicker, Getty Realty's Executive Vice President, General Counsel, and Secretary, providing a Safe Harbor Statement and discussing the company's financial performance. Getty Realty reported a 13.1% increase in annualized base rent over the prior year, reflecting a solid foundation for the company's growth. The company also raised its full-year 2024 earnings guidance, indicating a positive outlook for its financial health.

Growth and Diversification

CEO Christopher Constant emphasized the company's focus on growing and diversifying its portfolio of convenience and automotive retail assets. This strategy has been reflected in the company's acquisitions, which have been focused on accretive investments in all four primary convenience and automotive retail property types. Getty Realty has also been active in redeveloping its portfolio, including the completion of a new Chipotle restaurant and the signing of leases for future auto service centers.

Investment and Asset Management

Mark Olear, Getty Realty's Chief Operating Officer, provided insights into the company's investment and asset management activities. The company has been active in underwriting potential investments, with a growing pipeline of assets under contract. The direct sale-leaseback model has been instrumental in the company's success, allowing it to cultivate tenant relationships and underwrite site-level performance.

Capital Markets Activity

Brian Dickman, Getty Realty's Chief Financial Officer, discussed the company's capital raising efforts. The company was successful in raising over $245 million of common equity and unsecured debt, which will be used to fund its investment pipeline and refinance its only near-term notes maturity. This capital will also provide additional growth capital going into 2025, further solidifying the company's financial position.

Investor Interactions

During the call, investors and analysts raised questions about the company's market position and the competitive landscape. Getty Realty's management team provided reassurance, highlighting the company's expertise in the convenience and automotive retail sectors and its ability to execute on strategic opportunities.

Outlook and Challenges

The call also addressed the current market environment and the challenges it poses for Getty Realty. Despite lingering uncertainty, the company remains optimistic about its future prospects, citing a strong in-place portfolio, a healthy balance sheet, and a growing investment pipeline. The company is well-positioned to navigate market volatility and capitalize on opportunities as they arise.

Conclusion

Getty Realty's third quarter earnings call highlighted the company's strong financial performance, strategic growth initiatives, and resilience in the face of market challenges. With a focus on growing and diversifying its portfolio, the company is well-positioned for continued success in the convenience and automotive retail real estate sector. As Getty Realty moves into the fourth quarter and beyond, investors and stakeholders will be watching closely to see how the company continues to execute on its strategic vision.