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Getty Realty Corp. (GTY)
NYSE:GTY
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Getty Realty
(NYSE:GTY)80Outperform
Positive Factors
Financial Position
Getty Realty Corp. has ample liquidity from recent capital markets activity, supporting its deployment prospects.
Investment Pipeline
Improved access to capital supports a growing investment pipeline.
Negative Factors
Deal Pipeline
The deal pipeline is just $30M for 1H25, and activity is expected to decline, though opportunities to utilize capital remain.
Getty Realty (GTY) vs. S&P 500 (SPY)
Market Cap
$1.72B
Dividend Yield5.81%
Average Volume (3M)334.99K
Price to Earnings (P/E)25.0
Beta (1Y)0.47
Revenue Growth9.44%
EPS Growth8.76%
CountryUS
Employees29
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)1.25
Shares Outstanding55,027,700
10 Day Avg. Volume300,627
30 Day Avg. Volume334,986
Financial Highlights & Ratios
PEG Ratio2.85
Price to Book (P/B)N/A
Price to Sales (P/S)8.48
Price to Cash Flow (P/CF)11.90
P/FCF Ratio9.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.67Price Target Upside7.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Getty Realty Business Overview & Revenue Model
Company DescriptionGetty Realty Corp. (GTY) is a leading publicly traded real estate investment trust (REIT) specializing in the ownership, leasing, and financing of convenience store and gasoline station properties across the United States. The company primarily operates within the retail sector, focusing on properties that are essential to everyday consumers, such as convenience stores, automotive repair shops, and other single-tenant retail properties.
How the Company Makes MoneyGetty Realty makes money primarily through the leasing of its property portfolio to a diverse group of tenants, including major petroleum retailers and convenience store operators. The company earns revenue through long-term, triple-net leases, where tenants are responsible for paying property taxes, insurance, and maintenance costs in addition to base rent. This model provides Getty Realty with a stable and predictable income stream. Additionally, Getty Realty engages in strategic acquisitions and property development to expand its portfolio, leveraging its market expertise and strong tenant relationships. The company also benefits from capital appreciation of its properties and may occasionally engage in the sale of non-core assets to optimize its portfolio. Significant partnerships with established retail operators and a focus on high-traffic locations further enhance Getty Realty's revenue generation capabilities.
Getty Realty Financial Statement Overview
Summary
Getty Realty has a strong financial position characterized by high profitability and operational efficiency. The balance sheet is robust with no debt and a solid equity position. Cash flow generation is strong, though there is some inconsistency. Overall, the company demonstrates limited financial risk and stable growth.Income Statement
Getty Realty shows a strong income statement with a robust Gross Profit Margin of 81.5% and a healthy Net Profit Margin of 34.9% in the TTM. Revenue growth is evident, with a 9.4% increase from the previous year. Both EBIT and EBITDA margins are strong at 54.3% and 81.3%, respectively, underscoring operational efficiency.85
Very Positive
Balance Sheet
The balance sheet is exceptionally strong with no debt and a significant equity position, evidenced by a high Equity Ratio of 48.7%. The Return on Equity is solid at 7.4%, reflecting effective use of shareholders' funds. The absence of debt reduces financial risk significantly.92
Very Positive
Cash Flow
Cash flow is solid with a Free Cash Flow to Net Income ratio of 1.32, indicating strong cash generation relative to net income. However, the Operating Cash Flow to Net Income ratio is slightly lower at 1.33, suggesting some variability in cash flow generation.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 203.39M | 185.85M | 165.59M | 155.41M | 147.35M | Gross Profit |
| 188.53M | 162.06M | 144.03M | 133.36M | 123.83M | EBIT |
| 109.77M | 91.15M | 117.29M | 273.27M | 75.58M | EBITDA |
| 170.76M | 143.02M | 163.01M | 127.83M | 129.56M | Net Income Common Stockholders |
| 71.06M | 60.15M | 90.04M | 1.59M | 22.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 9.48M | 3.31M | 8.71M | 24.74M | 55.08M | Total Assets |
| 1.97B | 1.82B | 1.56B | 1.47B | 1.35B | Total Debt |
| 918.90M | 772.74M | 714.97M | 608.84M | 577.41M | Net Debt |
| 909.42M | 769.44M | 706.26M | 584.10M | 522.34M | Total Liabilities |
| 1.01B | 866.75M | 802.45M | 721.84M | 689.91M | Stockholders Equity |
| 962.08M | 955.55M | 759.85M | 745.11M | 659.60M |
| Cash Flow | Free Cash Flow | |||
| 129.63M | 104.99M | 93.09M | 86.55M | 82.55M | Operating Cash Flow |
| 130.50M | 105.30M | 93.09M | 86.82M | 82.83M | Investing Cash Flow |
| -200.47M | -310.70M | -139.06M | -169.73M | -127.42M | Financing Cash Flow |
| 78.30M | 199.44M | 30.76M | 52.32M | 77.98M |
Getty Realty Technical Analysis
Positive
31.34
Price Trends
30.58
Positive
31.04
Positive
29.88
Positive
Market Momentum
0.14
Negative
56.40
Neutral
60.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTY, the sentiment is Positive. The current price of 31.34 is above the 20-day moving average (MA) of 30.85, above the 50-day MA of 30.58, and above the 200-day MA of 29.88, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTY.
Getty Realty Risk Analysis
Getty Realty disclosed 36 risk factors in its most recent earnings report. Getty Realty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Getty Realty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.72B | 24.98 | 7.41% | 5.81% | 9.44% | 8.76% | |
77 Outperform | $8.67B | 9.47 | 28.38% | 6.18% | -1.63% | 80.11% | |
63 Neutral | $2.17B | 13.53 | 401.61% | 10.63% | -7.82% | 3.44% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
58 Neutral | $9.12B | 18.89 | 60.22% | 0.41% | -5.97% | -5.45% | |
58 Neutral | $721.58M | 3.02 | -2.64% | ― | -3.13% | -105.02% | |
56 Neutral | $886.79M | 44.71 | 666.62% | 9.01% | -6.57% | -50.55% |
* Real Estate Sector Average
Performance Comparison
GTY
Getty Realty
31.34
5.66
22.04%
MUSA
Murphy USA
455.45
51.40
12.72%
DKL
Delek Logistics
41.07
5.77
16.35%
SUN
Sunoco
56.81
-2.38
-4.02%
CAPL
Crossamerica Partners
23.30
3.35
16.79%
PARR
Par Pacific Holdings
13.18
-22.74
-63.31%
Getty Realty Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 4.05% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
Getty Realty reported strong financial performance and growth in 2024, with significant investments in high-quality assets and a robust increase in revenue and dividends. However, the bankruptcy of Zips Car Wash poses a challenge, affecting several leased sites and impacting future guidance. While the company has effectively managed its capital and maintained high occupancy rates, it faces market challenges and potential cap rate compression moving forward.Highlights
Strong Financial Performance
Getty Realty reported AFFO per share of $2.34 for 2024, a 4% increase over the previous year, and exceeded the high end of their guidance range.
Significant Investment and Growth
Invested $209 million in high-quality convenience and automotive retail assets, raised $289 million of attractively priced capital, and expanded their presence in top MSAs around the U.S.
Robust Revenue and Dividend Growth
Annualized base rent grew by 14.5% to approximately $198 million, with a sector-leading dividend increase reflecting strong revenue and earnings growth.
High Occupancy and Long Lease Terms
Portfolio occupancy was 99.7%, with a weighted average lease term of 10.2 years, indicating stability in their property holdings.
Successful Capital Management
Getty Realty closed on $125 million of new unsecured notes and refinanced their revolving credit facility, extending terms and increasing capacity to $450 million.
Lowlights
Zips Car Wash Bankruptcy Impact
Zips Car Wash filed for bankruptcy, affecting 12 sites leased to them by Getty, representing approximately $3.6 million of ABR. Seven of these sites are set to be rejected, impacting guidance.
Market Challenges
2024 was a challenging year for the net lease transaction market, with broader economic concerns and a slowdown in financing opportunities affecting the pace of new store development.
Cap Rate Compression
Expectation of modest cap rate compression from the 8.3% yields achieved in 2024, driven by larger portfolio transactions.
Company Guidance
During the Getty Realty Fourth Quarter 2024 Earnings Call, several key metrics and guidance for 2025 were discussed. The company reported a 14.5% increase in annualized base rent, totaling approximately $198 million, and an AFFO per share of $2.34, which exceeded the high end of their guidance range and marked a 4% increase over the prior year. Getty Realty invested $209 million in 2024 across 78 properties with a focus on convenience and automotive retail sectors. The company raised $289 million in capital and has a strong capital position with significant liquidity, including $85 million worth of assets under contract. For 2025, Getty provided AFFO per share guidance of $2.38 to $2.41, accounting for potential impacts from the Zips Car Wash bankruptcy, which affects 1.8% of their total annualized base rent. The company remains committed to its diversification strategy, having grown its total ABR by approximately 70% since the end of 2019, with a focus on increasing rental income from non-convenience and gas properties.Getty Realty Corporate Events
Business Operations and StrategyFinancial Disclosures
Getty Realty Highlights Strong Financial Performance in 2024
Positive
Feb 12, 2025
In February 2025, Getty Realty Corp. announced a corporate presentation that highlights its strong financial performance and strategic investments made in 2024. The company reported an increase in its Adjusted Funds From Operations (AFFO) by 13% to $130.8 million and expects further growth in 2025. It also invested $209 million in acquiring various retail properties and anticipates closing more than $35 million in investments in the coming months. The company’s financial health remains solid with no debt maturities until 2028, and its ability to maintain high occupancy and rent collection rates positions it well for future growth. This strategic positioning and financial robustness enhance Getty Realty’s attractiveness to investors and stakeholders, indicating a stable and promising outlook in the convenience and automotive retail real estate market.
Private Placements and FinancingBusiness Operations and Strategy
Getty Realty Expands Credit Facility and Enhances Flexibility
Positive
Jan 28, 2025
On January 23, 2025, Getty Realty Corp. entered into a Third Amended and Restated Credit Agreement, expanding its senior unsecured revolving credit facility to $450 million, with options to extend the maturity date to January 2030. The company used this increased capacity to repay a $150 million senior unsecured term loan, enhancing its financial flexibility by eliminating debt maturities until June 2028, thereby positioning itself for growth and demonstrating strong lender support.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.