Getty Realty (GTY) 8-K Regulation FD Disclosure

Investor Presentation

Exhibit 99.1

Safe Harbor Statement

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,

forward-looking

statements

can

be

identified

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.

Examples

of

forward-looking

statements

in

this

Presentation

include,

but

are

not

limited

to,

statement(s):

(a)

relating

to

the

Company’s

Portfolio,

Net

Lease

Portfolio,

Long-Term

Leases

and

Rent

Escalators,

Tenant

Base,

Growth

Platform,

Market

Opportunity,

and

Redevelopment

Projects,

(b)

relating

to

Industry

Fundamentals

and

(c)

relating

to

the

Company’s

Balance

Sheet,

Dividend

Growth

and

Investment

Highlights.

Other

unknown

or

unpredictable

factors

could

also

have

material

adverse

effects

on

our

business,

financial

condition,

liquidity,

results

of

operations

and

prospects.

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,

2016

and

the

Company’s

other

filings

with

the

SEC,

including,

in

particular,

the

section

entitled

“Risk

Factors”

contained

therein.

In

light

of

these

risks,

uncertainties,

assumptions

and

factors,

there

can

be

no

assurance

that

the

results

and

events

contemplated

by

the

forward-looking

statements

contained

in

this

Presentation

will,

in

fact,

transpire.

Moreover,

because

the

Company

operates

in

a

very

competitive

and

rapidly

changing

environment,

new

risks

are

likely

to

emerge

from

time

to

time.

Given

these

risks

and

uncertainties,

potential

investors

are

cautioned

not

to

place

undue

reliance

on

these

forward-looking

statements

as

a

prediction

of

future

results.

Unless

otherwise

noted

in

this

Presentation,

all

reported

financial

data

is

presented

as

of

the

period

ended

March

31,

2017,

and

all

portfolio

data

is

as

of

March

31,

2017.

Except

as

required

under

the

federal

securities

laws

and

the

rules

and

regulations

of

the

SEC,

the

Company

does

not

undertake

any

obligation

to

release

publicly

any

revisions

to

the

forward-looking

statements

to

reflect

events

or

circumstances

after

the

date

of

this

Presentation

or

to

reflect

the

occurrence

of

unanticipated

events.

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 Retail Net Lease Portfolio Located in Mature and High Growth Markets

2

Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants

with Long-Term Triple-Net Leases

5

Industry Leading Expertise as Underwriter and Owner of Convenience Stores and

Gasoline Stations

3

4

Selectively Repurposing, Repositioning and Redeveloping Locations to Maximize

Value

6

Strong Balance Sheet Positioned for Future Growth

Leadership Position with Proven Platform to Successfully Pursue Growth in a

Consolidating Sector

Company Overview

Corporate History

4

1955: Leo Liebowitz

and

Milton Safenowitz

purchase a

gas station in New York City

1985: Acquires the northeastern retail petroleum

distribution and marketing assets, and Getty®

trademark for retail petroleum, from Texaco

1971: Getty grows its portfolio to roughly 75

service stations and holds its initial public

offering under the name Power Test Corp.

1990

1980

1955

1970

January 2016: Completes successful

senior leadership transition and key

employee recruitment

2015

2010

2000

2001: Elects to be taxed as a

REIT with the year beginning

January 1, 2001

June 2015: Acquires 77 properties for $215

million from Pacific Convenience and Fuels

and leases them to United Oil

2009: Completes sale-leaseback of

36 Exxon branded properties from

White Oak Petroleum for $49 million

2011: Acquires 59 Mobil branded properties in a sale-leaseback and loan

transaction with CPD for $111 million; also completes 66 Shell branded

properties in sale-leaseback transaction with Nouria

Energy for $87 million

1997: Completes the spin-off of its

petroleum marketing business and forms

Getty Realty Corp.

2013: Completes sale-leaseback of

36 properties from Capitol

Petroleum Group for $72.5 million

June 2016: Launches $125

million at-the-market equity

offering program

2012 –

2016: Re-leases 374 properties

and sells 366 properties as part of

portfolio repositioning

Feb. 2017:Completes

$50 million debt private

placement

National Net Lease Portfolio

5

823 properties (736 fee, 87 leased) located in 24 states plus Washington, D.C.

(1)

—

806 net lease properties

—

7 redevelopment properties

—

10 vacant properties

—

98.8% occupied

(2)

$32.5 million mortgage portfolio (9-9.5% yield)

1)

As of March 31, 2017

2)

Occupancy calculation excludes seven properties classified as redevelopment

Investment Overview

7

Convenience Store and Gasoline Station Properties

—

Stable, yet growing sector

—

Increasingly institutional tenant base

Mature, Infill Markets

—

Densely populated areas

—

High barriers to entry

—

Limited new development

—

Prime locations and corners

—

Mature transportation grid

—

Convenient ingress and egress

High Growth Markets

—

Favorable population demographics

—

2015 United Oil acquisition accelerated entry into

several new markets

—

High daily traffic counts

Alternative Use Opportunities

—

Retail, banking, service, restaurant

—

Assemblage, redevelopment,

repositioning

Garland, TX

Chula Vista, CA

New Paltz, NY

Attractive Net Lease Portfolio

Well Positioned Portfolio that is Difficult to Replicate

59% of contractual annual rent attributable to leases with initial terms expiring in 2027 or beyond

Sustainable cash flows supported by long-term triple-net leases

—

Contractual rent increases of 1.0% –

2.0% with unitary lease portfolio weighted average of 1.6%

—

Rental coverage of 1.5x –

2.0x

—

Unitary tenant credit visibility via station and tenant financial statements

Majority of triple-net leases have 15-year initial terms

—

Leases are typically 15 to 20 years with extension options

—

Weighted average lease term, excluding renewal options, of approximately 11 years

Stable Long-Term Lease Structure

Stable Long-Term Leases with Rent Escalators

8

1.9%

2.8%

6.6%

5.3%

2.4%

2.4%

1.6%

1.2%

2.9%

13.8%

59.1%

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

Top 10 Tenants

(2)

High-Quality, Diversified Tenant Base

9

Total annualized base rent (ABR):

Credit rated tenants (35%)

Unitary / master lease tenants

(1)

(56%)

Individual / single asset tenants (9%)

Rank

Tenant

% of ABR

Rank

Tenant

% of ABR

1

*

20%

6

+

7%

2

+

18%

7

+

6%

3

+

12%

8

*

3%

4

+

9%

9

*

2%

5

*

8%

10

+

2%

1)

Excludes credit rated unitary / master lease tenants

2)

Based on GAAP annualized base rent

* Credit rated tenants, including subsidiaries of credit rated companies

+ Regional unitary tenants

10

Getty Growth Platform

Embedded growth derived

from long-term triple-net

leases

—

1% to 2% contractual

annual rent increases

Leasing activity

—

Leased nine properties and

five properties in 2016 and

2017 YTD, respectively

Asset recycling

—

Sold 14 properties ($5

million) and six properties

($1 million) in 2016 and

2017 YTD, respectively

Opportunity to consolidate a

fragmented market

—

Convenience store sector is

recession and e-commerce

resistant

—

Significant pipeline of

actionable opportunities

—

Focused on both single

asset and portfolio

acquisitions

2017 YTD

—

Acquired five properties for

$6 million

—

Weighted average cash

return of 7.7%

Over past five years completed

$329 million of portfolio and

single asset acquisitions

Unlocking embedded value in

existing portfolio

—

Five-year plan to redevelop

5% to 10% of properties

—

Targeting 10%+ unlevered

yields

—

Improves tenant credit

quality and coverage ratios

—

Diversifies retail tenant

base

Program results

—

Rent commenced on one

redevelopment project

—

Executed leases and LOIs on

15 redevelopment projects

—

Building significant pipeline

of high quality projects

Organic

Redevelopment

Acquisitions

Number of convenience stores in service has

remained steady over last 10 years

(1)

—

More than 154,000

properties (81% selling

fuel) represents 34% of all retail outlets

—

Single-store operators account for 63% of all

convenience stores

Stable Operator Performance

(1)

—

Sales and pre-tax profits

have grown at 4.5%

and 8.5% CAGR since 2003, respectively

—

In 2015, motor fuel sales accounted for 61%

of total industry revenue

—

Operator profit margins exhibit less volatility

than broader commodity market

Consumers

embracing

convenience

stores

(1)

—

Average store with fuel has around 1,100

customer visits per day

—

Stores expanding offerings to become part

grocery, restaurant, bank and drug store

—

Record overall industry profits in 2015, due

to growth of in-store sales, led by strong

demand for foodservice products

Convenience Stores Dominate Retail Landscape

11

1)

Sources: National Association of Convenience Stores

2)

Average in-store margin of Couche-Tard, Casey's General Store & CST Brands used as an example of the broader market trends

3)

Sunoco LP margins from its investor presentation used as an example of the broader market trends for retail and wholesale margins

Convenience Store Margins ($bn)

(2) (3)

Convenience Store Sales ($bn)

(1)

Large Market Opportunity

12

Expertise in underwriting unit level and 

tenant credit

Appraising underlying real estate to

support replacement value

Established record of diligencing

environmental site conditions

Strict adherence to proprietary

underwriting standards

The Getty Competitive Advantage

Estimated Addressable Market Size

(1)

—

Total market size estimated at $175 billion

to $250 billion

—

Getty estimates up to 40% ($70 billion) of

the market is addressable for potential

acquisition

Aggregation Opportunity

—

Highly fragmented with current REIT

ownership of less than 2% of total stores

—

Sale/leaseback structure attractive for

smaller, capital constrained sellers

Industry Consolidation

—

Traditional owner/operators

—

Public and non-traded REITs

—

Public MLPs

—

Private equity

1)

Source: Company estimate based on National Association of Convenience Stores data

Financial Overview

Income Growth, Scalable G&A

14

AFFO ($ thousands)

(1)

FFO ($ thousands)

(1)

14,147

17,857

50,957

62,462

307 (3)

18,177 (2)

1,720 (3)

49.8%

64.6%

46.0%

54.2%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1Q16

1Q17

2015

2016

Margin

13,161

14,154

47,028

56,231

307 (3)

18,177 (2)

1,720 (3)

46.3%

51.2%

42.5%

48.8%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1Q16

1Q17

2015

2016

Margin

28,427

27,648

110,733

115,266

-

20,000

40,000

60,000

80,000

100,000

120,000

1Q16

1Q17

2015

2016

4,044

3,493

16,930

14,154

1.8%

1.6%

1.9%

1.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1Q16

1Q17

2015

2016

% of Assets

G&A ($ thousands)

Revenue ($ thousands)

1)AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO and for a reconciliation to Net Earnings, see Item 2 

of our Quarterly Report on Form 10-Q for the period ended March 31, 2017. Margins exclude items detailed in footnotes 2 and 3 below

2)Includes $18.2 million of income received from the Getty Petroleum Marketing Inc. bankruptcy estate for the 12 months ended December 31, 2015

3)Includes a net $0.3 million and $1.7 million of environmental insurance reimbursements, recoveries of uncollectible  accounts and other income

for the three months ended March 31, 2017 and the 12 months ended December 31, 2016, respectively 

Strong Balance Sheet

15

Credit Agreement

—

Revolving Credit Facility

—

$175 million

—

Matures 2018 with 1-year option

—

LIBOR +195 to 325 bps based on

leverage

—

Bank Term Loan

—

$50 million

—

Matures 2020

—

LIBOR +190 to 320 bps based on

leverage

Senior Unsecured Notes

—

Series A: 6.0% $100 million matures 2021

—

Series B: 5.35% $75 million matures 2023

—

Series C:

4.75% $50 million matures 2025

$125 million ATM Equity Issuance Program

—

$20 million of issuance

Credit Statistics

Maturity Schedule ($ millions)

Debt to Total Capitalization

25%

Net Debt to EBITDA

(1)

3.4x

Fixed Charge Coverage

(1)

3.2x

Weighted Average Interest Rate

5.0%

Weighted

Average Maturity

4.8 yrs

Variable Rate

vs. Fixed Rate

25% / 75%

1)

As defined in the Company’s loan agreements

Market

Asset Type

Anticipated

Total

Investment

(1)

Investment

As Of

3/31/17

Estimated

Completion

(2)

Active Projects

White Plains, NY

Retail

$368

$147

2017

Howell, NJ

Retail

549

8

2018

Millerton, NY

Retail & QSR

943

36

2018

Phoenixville, PA

Financial Services

366

15

2018

Falmouth, MA

Urgent Care

1,687

36

2018

Worcester, MA

Convenience Store

1,800

10

2018

Freehold, NJ

Fast Casual Restaurant

756

151

2019

Active Projects Total

6,469

403

Pipeline

Eight sites

Various

4,746

204

2017-2018

Total

$11,215

$607

Redevelopment Activity ($ thousands)

16

Redevelopment Projects

1)

Anticipated total investment includes development costs, termination/recapture fees and leasing commissions

2)

No assurance can be given that any of these redevelopment projects will be completed. At completion redevelopment projects are reclassified

as operating real estate on the balance sheet

17

Consistent Dividend Growth

1)

Excludes special dividends of $0.05, $0.14 and $0.22 per share in 4Q13, 4Q14 and 4Q15, respectively

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

Quarterly

Dividends

Declared

per

Share

(1)

Investment Highlights

1

National Retail Net Lease Portfolio Located in Mature and High Growth Markets

2

Stable Cash Flows Supported by Increasingly Institutional Quality Credit Tenants

with Long-Term Triple-Net Leases

5

Industry Leading Expertise as Underwriter and Owner of Convenience Stores and

Gasoline Stations

3

4

Selectively Repurposing, Repositioning and Redeveloping Locations to Maximize

Value

6

Strong Balance Sheet Positioned for Future Growth

Leadership Position with Proven Platform to Successfully Pursue Growth in a

Consolidating Sector

18

Appendix

Reconciliation of Net Income to FFO and AFFO

20

3 months ended March 31,

12 months ended December 31,

$ in thousands, except per share amounts

(1)

2016

2017

(3)

2015

(2)

2016

(3)

Net earnings

$7,703

$9,704

$37,410

$38,411

Depreciation and amortization of real estate assets

4,622

4,392

16,974

19,170

Loss (gains) on dispositions of real estate

(487)

331

(2,611)

(6,213)

Impairments

2,309

3,737

17,361

12,814

FFO

14,147

18,164

69,134

64,182

Revenue recognition adjustments

(952)

(419)

(4,471)

(3,417)

Allowance for deferred rental revenue

-

-

(93)

-

Changes in environmental estimates

(987)

(4,317)

(4,639)

(7,007)

Accretion expense

953

1,033

4,829

4,107

Acquisition costs

-

-

445

86

AFFO

$13,161

$14,461

$65,205

$57,951

Basic and diluted weighted average shares outstanding

33,659

34,555

33,420

33,806

Earnings per share

$0.23

$0.28

$1.11

$1.12

FFO per share

0.42

0.52

2.04

1.87

AFFO per share

$0.39

$0.41

$1.93

$1.69

1)AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO see Item 2 in the Quarterly Report on our 

Form 10-Q for the period ended March 31, 2017

2)Includes $18.2 million of income received from the Getty Petroleum Marketing Inc. bankruptcy estate for the twelve months ended 

December 31, 2015

3)Includes a net $0.3 million and

$1.7 million of environmental insurance reimbursements, recoveries of uncollectible accounts and other 

income for the three months ended March 31, 2017 and the 12 months ended December 31, 2016, respectively