![]() GETTY REALTY CORP. PRESENTATION REIT Week Presentation June 2014 Exhibit 99.1 |
![]() Forward Looking Statements 1 Certain statements in this Presentation constitute “forward-looking statements” within the meaning of the federal securities laws. Forward- looking statements are statements that relate to management’s expectations or beliefs, future plans and strategies, future financial performance and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential.” Such forward-looking statements reflect current views with respect to the matters referred to and are based on certain assumptions and involve known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control, that could cause the actual results, performance, or achievements of the Company to differ materially from any future results, performance, or achievement implied by such forward-looking statements. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, including, in particular, the section entitled “Risk Factors” contained therein, and its other filings with the SEC. Unless otherwise noted in this Presentation, all reported financial data is presented as of the quarter ended March 31, 2014, and all portfolio data is as of June 2, 2014. The information contained herein has been prepared from public and non-public sources believed to be reliable. However, the Company has not independently verified certain of the information contained herein, and does not make any representation or warranty as to the accuracy or completeness of the information contained in this Presentation. |
![]() Investment Highlights 2 1 National portfolio with focus on growing and densely populated, high barrier to entry markets 2 Stable cash flows supported by long-term, triple-net leases 3 4 Proven platform to pursue internal and external growth opportunities in a consolidating sector 5 At a positive inflection point in the Company’s evolution 6 Flexible balance sheet with low leverage Upside opportunities created through rationalization of transitional properties in existing portfolio |
![]() Leading National Portfolio with Future Upside 3 Hawaii (10) Florida (6) Texas (17) North Carolina (5) Ohio (4) California (9) Arkansas (3) North Dakota (1) Illinois (1) Headquarters New York (305) New Hampshire (50) Maine (10) Massachusetts (150) Rhode Island (13) Connecticut (97) New Jersey (76) Delaware (5) Pennsylvania (61) Maryland (43) Virginia (48) Washington, DC (2) Long-term triple-net lease stability with future upside through transitional properties 916 retail motor fuel/convenience store properties 798 owned properties (87%) 118 leased properties (13%) 20 states plus Washington, D.C. Current Portfolio 20 tenants (685 properties) under long- term, triple-net leases 85 single tenant triple-net leases 84% of core leases expire after 2022 Sites branded Getty, BP, Exxon, Mobil, Shell, Chevron, Valero and Aloha 770 Core Properties Repositioned ~250 properties since May 2012 Releasing program focused on attractive long-term, triple-net leases Proactively recycling capital from property dispositions into accretive investments 146 Transitional Properties |
![]() Significant Presence in Markets with “High Barriers to Entry” 4 Limited Availability of Suitable Land Prime Locations in High Traffic Areas Increasingly Restrictive Zoning Regulations High replacement costs Limited new development Unique assets with ability to satisfy increased demand for non-gas uses Mature and densely populated neighborhoods High daily traffic counts Optimal corners with high visibility and easy access Close proximity to highway entrances or exit ramps Lengthy permitting process Difficult to obtain the necessary permits to construct a similar use site Leading national portfolio with concentrations in high barrier to entry markets in the Northeast and Mid-Atlantic regions |
![]() Sustainable Cash Flows Supported by Long-Term Leases 5 Only 3% of leases mature in next 5 years and 17% in next 10 years High Quality Tenant Base Diversified tenant base Prominent national and regional suppliers 2012 repositioning added more than 10 new quality tenants to the Company’s portfolio Compelling unit level economics Rent coverage generally – 1.75x to 2.25x Majority of triple-net leases have 15 year initial terms Provisions for rent increases during initial term and renewal periods Unit level visibility via station and tenant financial performance 84% of core property leases expire after 2022 Highlights Stable Long-Term Lease Structure (1) (1) Does not include single tenant triple-net leases or transitional properties as their lease maturities vary. 0.7% 0.0% 0.0% 2.2% 0.0% 5.1% 3.3% 4.6% 0.0% 1.0% 0.0% 1.5% 9.1% 72.3% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+ |
![]() Incremental Upside in Transitional Properties 6 Proactive portfolio repositioning presents an opportunity to improve the cash flow profile Near-Term Lease Expirations Restructuring of original unitary lease entered into in May 2012 Ten locations are entangled in an ongoing eviction action in CT Supreme Court Expect to enter into a restructuring of the NECG Lease at the conclusion of the pending litigation NECG Lease Sites to be Leased Sites to be Sold 83 25 31 7 Composed primarily of operating gas stations Properties being re-let to national and regional fuel distributors Locations will be added to existing leases or Company will enter into new triple-net leases with regional distributors 75% of locations either under contract or have accepted offers Remaining properties in multi-layer disposition process Sites not leased on a triple-net basis with lease expirations over the next six to eighteen months |
![]() Poised to Consolidate Fragmented Industry 7 More than 150,000 properties in the sector (1) Portfolio dispositions – distributors, MLP’s, families Consolidating sector – approximately 60% of U.S. stations individually owned (1) Debt maturities – conduits, majors, banks Little institutional capital Mature, infill locations Wide variety of formats Convenience stores, repair bays, quick serve, quick lube, etc. Focus on fuel component to drive customer visits / visibility Gasoline, Diesel, Ethanol, CNG, LNG, other Proven ability to source off-market transactions not seen by others Ability to integrate and assimilate multi-unit portfolios Capacity to operate in a highly regulated industry Established track-record of managing and remediating environmental concerns Actively seeking portfolio acquisitions through competitively priced and innovatively structured capital allocation Target Investments Broad Market Opportunity The Getty Competitive Advantage (1) Per NACS 2013 Retail Fuels Report. |
![]() Flexible Balance Sheet with Low Leverage 8 $175 million senior secured credit facility Matures in 2015 (plus one year option) L+ 250-300 bps No amortization requirements $100 million secured debt private placement Matures in 2021 Fixed rate: 6% No amortization requirements Debt / EBITDA (2) Leverage / Total Market Capitalization (2) Debt Maturity Schedule (1) Debt Refinancing in February 2013 (1) Low leverage and flexible balance sheet compared to REIT peers (1) Amounts outstanding are as of March 31, 2014. For additional information regarding the Company’s financing agreements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. (2) Source: Wall Street research report dated May 27, 2014. $43.0 $100.0 2014 2015 2016 2017 2018 2020 2021 7.7x 6.1x 6.0x 5.9x 5.6x 4.8x 4.3x 3.1x SRC ARCP WPC LXP O EPR NNN GTY 53.1% 47.5% 44.6% 39.0% 35.0% 33.6% 32.6% 19.6% ARCP SRC LXP EPR O NNN WPC GTY |
![]() Investment Highlights 9 1 National portfolio with focus on growing and densely populated, high barrier to entry markets 2 Stable cash flows supported by long-term, triple-net leases 3 4 Proven platform to pursue internal and external growth opportunities in a consolidating sector 5 At a positive inflection point in the Company’s evolution 6 Flexible balance sheet with low leverage Upside opportunities created through rationalization of transitional properties in existing portfolio |