Getty Realty Corp. (NYSE: GTY) (“Getty” or the “Company”) announced
today its financial and operating results for the quarter and year
ended December 31, 2023.
Fourth Quarter 2023
Highlights
- Net earnings: $0.30
per share
- Funds From
Operations (“FFO”): $0.51 per share
- Adjusted Funds From
Operations (“AFFO”): $0.57 per share
- Invested $61.8
million across 38 properties
- Completed two
redevelopment and revenue-enhancing capex projects
Full Year 2023 Highlights
- Net earnings: $1.15
per share
- FFO: $2.06 per
share
- AFFO: $2.25 per
share
- Invested a record
$326.3 million across 81 properties
- Completed five
redevelopment and revenue-enhancing capex projects
“We are extremely proud of our financial results
in 2023, which saw us grow base rental income by nearly 10% and
AFFO per share by more than 5%, reflecting strong execution of our
growth strategy,” stated Christopher J. Constant, Getty’s President
& Chief Executive Officer. “We more than doubled our prior
years’ investment activity by deploying $326 million of capital,
while enhancing our convenience and automotive retail portfolio and
maintaining our disciplined underwriting standards. Notably,
we accomplished this during a challenging market environment while
also sourcing nearly $300 million of new equity and debt capital
that allowed us to accretively fund these investments.”
Mr. Constant continued, “As we look to 2024 and
beyond, we expect to selectively add to our investment pipeline and
utilize our strong credit profile, including increased cash flow
from our growing portfolio, to deliver sustained earnings and
dividend growth to our shareholders.”
Net Earnings, FFO and AFFO
All per share amounts are presented on a fully
diluted per common share basis, unless stated otherwise. FFO and
AFFO are “Non-GAAP Financial Measures” which are defined and
reconciled to net earnings at the end of this release.
($ in thousands) |
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net earnings (a) |
|
$ |
16,512 |
|
|
$ |
27,312 |
|
|
$ |
60,151 |
|
|
$ |
90,043 |
|
Net earnings per share (a) |
|
$ |
0.30 |
|
|
$ |
0.57 |
|
|
$ |
1.15 |
|
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO (a) |
|
$ |
27,362 |
|
|
$ |
30,241 |
|
|
$ |
106,065 |
|
|
$ |
117,067 |
|
FFO per share (a) |
|
$ |
0.51 |
|
|
$ |
0.63 |
|
|
$ |
2.06 |
|
|
$ |
2.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO |
|
$ |
30,720 |
|
|
$ |
26,459 |
|
|
$ |
115,808 |
|
|
$ |
102,487 |
|
AFFO per share |
|
$ |
0.57 |
|
|
$ |
0.55 |
|
|
$ |
2.25 |
|
|
$ |
2.14 |
|
(a) Net earnings and FFO for the quarter
and year ended December 31, 2022 included credits of $5.6 million
and $22.2 million, respectively, related to the removal of reserves
for unknown environmental remediation obligations at certain
properties.
Select Financial Results
Revenues from Rental Properties
($ in thousands) |
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Rental income (a) |
|
$ |
41,140 |
|
|
$ |
37,683 |
|
|
$ |
160,966 |
|
|
$ |
147,150 |
|
Tenant reimbursement income |
|
|
4,475 |
|
|
|
4,873 |
|
|
|
19,522 |
|
|
|
16,739 |
|
Revenues from rental properties |
|
$ |
45,615 |
|
|
$ |
42,556 |
|
|
$ |
180,488 |
|
|
$ |
163,889 |
|
(a) Rental income includes base rental
income, additional rental income, if any, and certain non-cash
revenue recognition adjustments.
For the quarter ended December 31, 2023, base
rental income increased 12.4% to $42.5 million, as compared to
$37.8 million for the same period in 2022.
For the year ended December 31, 2023, base
rental income increased 9.5% to $161.8 million, as compared to
$147.8 million for the same period in 2022.
The growth in base rental income was driven by
incremental revenue from recently acquired properties, contractual
rent increases for in-place leases, and rent commencements from
completed redevelopments, partially offset by property
dispositions.
Interest (Income) on Notes and Mortgages Receivable
($ in thousands) |
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Interest on notes and mortgages receivable |
|
$ |
2,027 |
|
|
$ |
565 |
|
|
$ |
5,358 |
|
|
$ |
1,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The growth in interest earned on notes and
mortgages receivable was driven by an increase in development
funding advances and development funding rates.
Property Costs
($ in thousands) |
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Property operating expenses |
|
$ |
5,458 |
|
|
$ |
5,844 |
|
|
$ |
23,112 |
|
|
$ |
20,843 |
|
Leasing and redevelopment
expenses |
|
|
110 |
|
|
|
40 |
|
|
|
677 |
|
|
|
710 |
|
Property costs |
|
$ |
5,568 |
|
|
$ |
5,884 |
|
|
$ |
23,789 |
|
|
$ |
21,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in property operating expenses for
the year ended December 31, 2023 was primarily due to an increase
in reimbursable real estate taxes, partially offset by lower rent
expense and non-reimbursable real estate taxes.
Other Expenses
($ in thousands) |
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Environmental expenses |
|
$ |
284 |
|
|
$ |
(5,484 |
) |
|
$ |
1,261 |
|
|
$ |
(20,902 |
) |
General and administrative
expenses |
|
|
5,794 |
|
|
|
5,208 |
|
|
|
23,735 |
|
|
|
20,621 |
|
Impairments |
|
|
1,273 |
|
|
|
1,318 |
|
|
|
5,243 |
|
|
|
3,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The change in environmental expenses was
primarily due to reductions in estimates related to unknown
environmental liabilities. Specifically, during the quarter and
year ended December 31, 2022, the Company concluded that there was
no material continued risk of having to satisfy contractual
obligations relating to preexisting unknown environmental
contamination at certain properties. Accordingly, the Company
removed $6.4 million and $23.5 million, respectively, of unknown
reserve liabilities which had previously been accrued and which
resulted in net credits of $5.6 million and $22.2 million,
respectively, being recorded to environmental expenses.
Environmental expenses vary from period to period and, accordingly,
undue reliance should not be placed on the magnitude or the
direction of changes in reported environmental expenses for any one
period, or a comparison to prior periods.
The increase in general and administrative
expenses for the year ended December 31, 2023 was due to increased
personnel costs, including $0.9 million of non-recurring retirement
and severance costs and a $0.8 million increase in non-cash,
stock-based compensation.
Impairment charges were driven by the
accumulation of asset retirement costs at certain properties as a
result of changes in estimated environmental liabilities, which
increased the carrying values of these properties in excess of
their fair values.
Portfolio Activities
Acquisitions and Development Funding
During the quarter ended December 31, 2023, the
Company invested $61.8 million, including:
- The acquisition of
16 properties for $31.1 million (net of prior period development
funding advances $20.2 million). Acquired properties included 12
auto service centers, three express tunnel car washes, and one
convenience store.
- The acquisition of
two under construction car wash properties for $6.2 million and a
commitment to provide additional funding during the construction
period to complete these projects.
- Incremental
development funding of $24.5 million for the construction of 20
new-to-industry express tunnel car washes and auto service centers.
As of December 31, 2023, the Company had advanced aggregate
development funding of $105.5 million for the development of
properties that are either owned by the Company and under
construction by our tenants, or which the Company expects to
acquire via sale-leaseback transactions at the end of the
respective construction periods.
During the year ended December 31, 2023, the
Company invested a record $326.3 million, including the acquisition
of 40 express tunnel car washes, 13 auto service centers, 12
convenience stores, and three drive-thru quick service
restaurants.
Subsequent to year end, the Company invested
approximately $18.6 million for the development and/or acquisition
of nine express tunnel car washes, eight auto service centers and
one convenience store.
Investment Pipeline
As of February 14, 2024, the Company had a
committed investment pipeline of more than $67 million for the
development and/or acquisition of 36 express tunnel car washes,
convenience stores, and auto service centers. The Company expects
to fund this investment activity, which includes multiple
transactions with eight different tenants, over the next 6-9
months. While the Company has fully executed agreements for each
transaction, the timing and amount of each investment is ultimately
dependent on its counterparties and the schedules under which they
are able to complete development projects and certain business
acquisitions for which the Company is providing sale leaseback
financing.
Redevelopments and Revenue Enhancing Capex
During the year ended December 31, 2023, rent
commenced at three redevelopment properties, including two new auto
parts store leased to AutoZone and a new-to-industry QuikTrip
convenience store, all subject to long term, triple net leases.
During the year ended December 31, 2023, the Company also provided
funding for the expansion of two convenience stores located in the
Hartford (CT) and Norwich (CT) metropolitan areas resulting in
increased rents and extended lease terms.
Since 2015, the Company has completed 31
redevelopment and revenue-enhancing capex projects representing
$20.3 million of incremental capital investment.
As of December 31, 2023, the Company had signed
leases for three redevelopment projects, including two sites under
construction and one site pending recapture from our net lease
portfolio, and other potential projects in various stages of
feasibility planning.
Dispositions
During the year ended December 31, 2023, the
Company sold nine properties for gross proceeds of $11.9 million
and recorded a net gain of $4.5 million on the dispositions,
including four properties for gross proceeds of $7.2 million and a
net gain of $3.1 million during the quarter ended December 31,
2023.
Balance Sheet and Capital
Markets
As of December 31, 2023, the Company had $760
million of total outstanding indebtedness consisting of (i) $675
million of senior unsecured notes with a weighted average interest
rate of 3.9% and a weighted average maturity of 6.5 years, (ii) a
$75 million unsecured term loan with an interest rate of 6.1% and
an initial maturity in October 2025, and (iii) $10 million
outstanding on the Company’s $300 million unsecured revolving
credit facility.
Available cash and equivalents were $3.3 million
and the Company had $4.4 million of 1031 disposition proceeds in
escrow.
Equity Capital Markets
During the quarter ended December 31, 2023, the
Company settled 1.25 million shares of common stock subject to
outstanding forward sale agreements in connection with the
Company's follow-on public offering in February 2023 for net
proceeds of approximately $40.6 million.
During the quarter ended December 31, 2023, the
Company entered into forward sale agreements to sell approximately
831 thousand common shares for anticipated gross proceeds of $24.6
million through its ATM equity offering.
As of December 31, 2023, the Company had
approximately 1.1 million shares subject to outstanding forward
equity agreements under its ATM equity offering program, which upon
settlement are anticipated to raise gross proceeds of approximately
$32.2 million.
Debt Capital Markets
As previously announced, during the quarter
ended December 31, 2023, the Company entered into a senior
unsecured term loan (the "Term Loan") in an aggregate principal
amount of $150.0 million. The Term Loan matures October 17, 2025,
subject to one twelve-month extension exercisable at the Company's
option.
The Term Loan is comprised of (i) an initial
principal amount of $75.0 million that was funded at closing and
used to repay amounts outstanding under the Company's revolving
credit facility, and (ii) an additional principal amount of $75.0
million that can be funded in a single draw at the Company’s option
any time on or prior to April 14. 2024.
In connection with the Term Loan, the Company
entered into $150.0 million of interest rate swaps to fix SOFR at
4.73% until maturity. Including the impact of the swaps, the
effective interest rate on the term loan is 6.13% based on the
Company's consolidated total indebtedness to total asset value
ratio as of December 31, 2023.
2024 Guidance
The Company reaffirms its most recent 2024 AFFO
guidance of $2.29 to $2.31 per diluted share. The Company’s outlook
includes completed transaction activity as of the date of this
release, but does not include assumptions for any prospective
acquisitions, dispositions, or capital markets activities
(including the settlement of outstanding forward sale agreements or
the funding of delayed draw term loan amounts).
The guidance is based on current assumptions and
is subject to risks and uncertainties more fully described in this
press release and the Company’s periodic reports filed with the
SEC.
Webcast Information
Getty Realty Corp. will host a conference call
and webcast on Thursday, February 15, 2024 at 8:30 a.m. EST. To
participate in the call, please dial 1-877-423-9813, or
1-201-689-8573 for international participants, ten minutes before
the scheduled start. Participants may also access the call via live
webcast by visiting the investors section of the Company's website
at ir.gettyrealty.com.
If you cannot participate in the live event, a
replay will be available on Thursday, February 15, 2024 beginning
at 11:30 a.m. EST through 11:59 p.m. EST, Thursday, February 22,
2024. To access the replay, please dial 1-844-512-2921, or
1-412-317-6671 for international participants, and reference pass
code 13743178.
About Getty Realty Corp.
Getty Realty Corp. is a publicly traded, net
lease REIT specializing in the acquisition, financing and
development of convenience, automotive and other single tenant
retail real estate. As of December 31, 2023, the Company’s
portfolio included 1,093 freestanding properties located in 40
states across the United States and Washington, D.C.
Non-GAAP Financial Measures
In addition to measurements defined by
accounting principles generally accepted in the United States of
America (“GAAP”), the Company also focuses on Funds From Operations
(“FFO”) and Adjusted Funds From Operations (“AFFO”) to measure its
performance.
FFO and AFFO are generally considered by
analysts and investors to be appropriate supplemental non-GAAP
measures of the performance of REITs. FFO and AFFO are not in
accordance with, or a substitute for, measures prepared in
accordance with GAAP. In addition, FFO and AFFO are not based on
any comprehensive set of accounting rules or principles. Neither
FFO nor AFFO represent cash generated from operating activities
calculated in accordance with GAAP and therefore these measures
should not be considered an alternative for GAAP net earnings or as
a measure of liquidity. These measures should only be used to
evaluate the Company’s performance in conjunction with
corresponding GAAP measures.
FFO is defined by the National Association of
Real Estate Investment Trusts (“NAREIT”) as GAAP net earnings
before (i) depreciation and amortization of real estate assets,
(ii) gains or losses on dispositions of real estate assets, (iii)
impairment charges, and (iv) the cumulative effect of accounting
changes.
The Company defines AFFO as FFO excluding (i)
certain revenue recognition adjustments (defined below), (ii)
certain environmental adjustments (defined below), (iii)
stock-based compensation, (iv) amortization of debt issuance costs
and (v) other non-cash and/or unusual items that are not reflective
of the Company’s core operating performance.
Other REITs may use definitions of FFO and/or
AFFO that are different than the Company’s and, accordingly, may
not be comparable.
The Company believes that FFO and AFFO are
helpful to analysts and investors in measuring the Company’s
performance because both FFO and AFFO exclude various items
included in GAAP net earnings that do not relate to, or are not
indicative of, the core operating performance of the Company’s
portfolio. Specifically, FFO excludes items such as depreciation
and amortization of real estate assets, gains or losses on
dispositions of real estate assets, and impairment charges. With
respect to AFFO, the Company further excludes the impact of (i)
deferred rental revenue (straight-line rent), the net amortization
of above-market and below-market leases, adjustments recorded for
the recognition of rental income from direct financing leases, and
the amortization of deferred lease incentives (collectively,
“Revenue Recognition Adjustments”), (ii) environmental accretion
expenses, environmental litigation accruals, insurance
reimbursements, legal settlements and judgments, and changes in
environmental remediation estimates (collectively, “Environmental
Adjustments”), (iii) stock-based compensation expense, (iv)
amortization of debt issuance costs and (v) other items, which may
include allowances for credit losses on notes and mortgages
receivable and direct financing leases, losses on extinguishment of
debt, retirement and severance costs, and other items that do not
impact the Company’s recurring cash flow and which are not
indicative of its core operating performance.
The Company pays particular attention to AFFO
which it believes provides the most useful depiction of the core
operating performance of its portfolio. By providing AFFO, the
Company believes it is presenting information that assists analysts
and investors in their assessment of the Company’s core operating
performance, as well as the sustainability of its core operating
performance with the sustainability of the core operating
performance of other real estate companies. For a tabular
reconciliation of FFO and AFFO to GAAP net earnings, see the table
captioned “Reconciliation of Net Earnings to Funds From Operations
and Adjusted Funds From Operations” included herein.
Forward-Looking Statements
Certain statements contained herein may
constitute “forward-looking statements” within the meaning of the
private securities litigation reform act of 1995. When the words
“believes,” “expects,” “plans,” “projects,” “estimates,”
“anticipates,” “predicts,” “outlook” and similar expressions are
used, they identify forward-looking statements. These
forward-looking statements are based on management’s current
beliefs and assumptions and information currently available to
management and involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the company to be materially different from any
future results, performance or achievements expressed or implied by
these forward-looking statements. Examples of forward-looking
statements include, but are not limited to, those regarding the
company’s 2024 AFFO per share guidance, those made by Mr. Constant,
statements regarding the recapture and transfer of certain net
lease retail properties, statements regarding the ability to obtain
appropriate permits and approvals, and statements regarding AFFO as
a measure best representing core operating performance and its
utility in comparing the sustainability of the company’s core
operating performance with the sustainability of the core operating
performance of other REITs.
Information concerning factors that could cause
the company’s actual results to differ materially from these
forward-looking statements can be found elsewhere from this press
release, including, without limitation, those statements in the
company’s periodic reports filed with the securities and exchange
commission. The company undertakes no obligation to publicly
release revisions to these forward-looking statements to reflect
future events or circumstances or reflect the occurrence of
unanticipated events.
-more-
|
GETTY REALTY CORP.CONSOLIDATED BALANCE
SHEETS(Unaudited)(in thousands,
except per share amounts) |
|
|
|
|
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS: |
|
|
|
|
|
|
Real Estate: |
|
|
|
|
|
|
Land |
|
$ |
867,884 |
|
|
$ |
802,010 |
|
Buildings and improvements |
|
|
847,339 |
|
|
|
707,352 |
|
Investment in direct financing leases, net |
|
|
59,964 |
|
|
|
66,185 |
|
Construction in progress |
|
|
426 |
|
|
|
578 |
|
Real estate held for use |
|
|
1,775,613 |
|
|
|
1,576,125 |
|
Less accumulated depreciation and amortization |
|
|
(265,593 |
) |
|
|
(232,812 |
) |
Real estate held for use, net |
|
|
1,510,020 |
|
|
|
1,343,313 |
|
Lease intangible assets, net |
|
|
100,315 |
|
|
|
74,014 |
|
Real estate held for sale, net |
|
|
2,429 |
|
|
|
3,757 |
|
Real estate, net |
|
|
1,612,764 |
|
|
|
1,421,084 |
|
Notes and mortgages
receivable |
|
|
112,008 |
|
|
|
34,313 |
|
Cash and cash equivalents |
|
|
3,307 |
|
|
|
8,713 |
|
Restricted cash |
|
|
1,979 |
|
|
|
2,536 |
|
Deferred rent receivable |
|
|
54,424 |
|
|
|
50,391 |
|
Accounts receivable |
|
|
5,012 |
|
|
|
4,247 |
|
Right-of-use assets -
operating |
|
|
14,571 |
|
|
|
18,193 |
|
Right-of-use assets -
finance |
|
|
174 |
|
|
|
277 |
|
Prepaid expenses and other
assets |
|
|
18,066 |
|
|
|
22,541 |
|
Total assets |
|
$ |
1,822,305 |
|
|
$ |
1,562,295 |
|
LIABILITIES AND STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
|
Borrowings under Revolving Credit
Facility |
|
$ |
10,000 |
|
|
$ |
70,000 |
|
Senior Unsecured Notes, net |
|
|
673,406 |
|
|
|
623,492 |
|
Term Loan, net |
|
|
72,692 |
|
|
|
— |
|
Environmental remediation
obligations |
|
|
22,369 |
|
|
|
23,155 |
|
Dividends payable |
|
|
24,850 |
|
|
|
20,576 |
|
Lease liability - operating |
|
|
16,051 |
|
|
|
19,959 |
|
Lease liability - finance |
|
|
595 |
|
|
|
1,518 |
|
Accounts payable and accrued
liabilities |
|
|
46,790 |
|
|
|
43,745 |
|
Total liabilities |
|
|
866,753 |
|
|
|
802,445 |
|
Commitments and
contingencies |
|
|
— |
|
|
|
— |
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, $0.01 par value; 20,000,000 authorized;
unissued |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value; 100,000,000 shares authorized;
53,952,539 and 46,734,790 shares issued and outstanding,
respectively |
|
|
540 |
|
|
|
467 |
|
Accumulated other comprehensive
income (loss) |
|
|
(4,021 |
) |
|
|
— |
|
Additional paid-in capital |
|
|
1,053,129 |
|
|
|
822,340 |
|
Dividends paid in excess of
earnings |
|
|
(94,096 |
) |
|
|
(62,957 |
) |
Total stockholders’ equity |
|
|
955,552 |
|
|
|
759,850 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,822,305 |
|
|
$ |
1,562,295 |
|
|
|
|
|
|
|
|
|
|
|
GETTY REALTY CORP.CONSOLIDATED STATEMENTS
OF OPERATIONS(Unaudited)(in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from rental properties |
|
$ |
45,615 |
|
|
$ |
42,556 |
|
|
$ |
180,488 |
|
|
$ |
163,889 |
|
Interest on notes and mortgages receivable |
|
|
2,027 |
|
|
|
565 |
|
|
|
5,358 |
|
|
|
1,699 |
|
Total revenues |
|
|
47,642 |
|
|
|
43,121 |
|
|
|
185,846 |
|
|
|
165,588 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Property costs |
|
|
5,568 |
|
|
|
5,884 |
|
|
|
23,789 |
|
|
|
21,553 |
|
Impairments |
|
|
1,273 |
|
|
|
1,318 |
|
|
|
5,243 |
|
|
|
3,545 |
|
Environmental |
|
|
284 |
|
|
|
(5,484 |
) |
|
|
1,261 |
|
|
|
(20,902 |
) |
General and administrative |
|
|
5,794 |
|
|
|
5,208 |
|
|
|
23,735 |
|
|
|
20,621 |
|
Depreciation and amortization |
|
|
12,716 |
|
|
|
10,388 |
|
|
|
45,296 |
|
|
|
39,902 |
|
Total operating expenses |
|
|
25,635 |
|
|
|
17,314 |
|
|
|
99,324 |
|
|
|
64,719 |
|
Gain on dispositions of real estate |
|
|
3,139 |
|
|
|
8,777 |
|
|
|
4,625 |
|
|
|
16,423 |
|
Operating income |
|
|
25,146 |
|
|
|
34,584 |
|
|
|
91,147 |
|
|
|
117,292 |
|
Other income, net |
|
|
192 |
|
|
|
40 |
|
|
|
574 |
|
|
|
413 |
|
Interest expense |
|
|
(8,826 |
) |
|
|
(7,312 |
) |
|
|
(31,527 |
) |
|
|
(27,662 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(43 |
) |
|
|
— |
|
Net earnings |
|
$ |
16,512 |
|
|
$ |
27,312 |
|
|
$ |
60,151 |
|
|
$ |
90,043 |
|
Basic earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
0.30 |
|
|
$ |
0.57 |
|
|
$ |
1.16 |
|
|
$ |
1.88 |
|
Diluted earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
0.30 |
|
|
$ |
0.57 |
|
|
$ |
1.15 |
|
|
$ |
1.88 |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
52,783 |
|
|
|
46,734 |
|
|
|
50,020 |
|
|
|
46,730 |
|
Diluted |
|
|
52,880 |
|
|
|
46,891 |
|
|
|
50,216 |
|
|
|
46,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GETTY REALTY CORP.RECONCILIATION OF NET
EARNINGS TOFUNDS FROM OPERATIONS AND ADJUSTED
FUNDS FROM
OPERATIONS(Unaudited)(in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net earnings (a) |
|
$ |
16,512 |
|
|
$ |
27,312 |
|
|
$ |
60,151 |
|
|
$ |
90,043 |
|
Depreciation and amortization of real estate assets |
|
|
12,716 |
|
|
|
10,388 |
|
|
|
45,296 |
|
|
|
39,902 |
|
Gains on dispositions of real estate |
|
|
(3,139 |
) |
|
|
(8,777 |
) |
|
|
(4,625 |
) |
|
|
(16,423 |
) |
Impairments |
|
|
1,273 |
|
|
|
1,318 |
|
|
|
5,243 |
|
|
|
3,545 |
|
Funds from operations (FFO)
(a) |
|
|
27,362 |
|
|
|
30,241 |
|
|
|
106,065 |
|
|
|
117,067 |
|
Revenue recognition adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred rental revenue (straight-line rent) |
|
|
24 |
|
|
|
(1,013 |
) |
|
|
(4,033 |
) |
|
|
(3,458 |
) |
Amortization of above and below market leases, net |
|
|
(235 |
) |
|
|
(293 |
) |
|
|
(1,057 |
) |
|
|
(1,184 |
) |
Amortization of investments in direct financing leases |
|
|
1,560 |
|
|
|
1,429 |
|
|
|
6,004 |
|
|
|
5,392 |
|
Amortization of lease incentives |
|
|
283 |
|
|
|
295 |
|
|
|
1,098 |
|
|
|
1,198 |
|
Total revenue recognition adjustments |
|
|
1,632 |
|
|
|
418 |
|
|
|
2,012 |
|
|
|
1,948 |
|
Environmental Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Accretion expense |
|
|
163 |
|
|
|
222 |
|
|
|
585 |
|
|
|
1,259 |
|
Changes in environmental estimates |
|
|
(127 |
) |
|
|
(5,910 |
) |
|
|
(302 |
) |
|
|
(23,837 |
) |
Environmental litigation accruals |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
279 |
|
Insurance reimbursements |
|
|
— |
|
|
|
(41 |
) |
|
|
(138 |
) |
|
|
(85 |
) |
Total environmental adjustments |
|
|
36 |
|
|
|
(5,729 |
) |
|
|
145 |
|
|
|
(22,384 |
) |
Other Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,420 |
|
|
|
1,232 |
|
|
|
5,582 |
|
|
|
4,775 |
|
Amortization of debt issuance costs |
|
|
459 |
|
|
|
239 |
|
|
|
1,211 |
|
|
|
946 |
|
Allowance for credit loss on notes and mortgages receivableand
direct financing leases |
|
|
(189 |
) |
|
|
50 |
|
|
|
(189 |
) |
|
|
50 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
43 |
|
|
|
— |
|
Retirement and severance costs |
|
|
— |
|
|
|
8 |
|
|
|
939 |
|
|
|
85 |
|
Total other adjustments |
|
|
1,690 |
|
|
|
1,529 |
|
|
|
7,586 |
|
|
|
5,856 |
|
Adjusted Funds from operations
(AFFO) |
|
$ |
30,720 |
|
|
$ |
26,459 |
|
|
$ |
115,808 |
|
|
$ |
102,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
0.30 |
|
|
$ |
0.57 |
|
|
$ |
1.16 |
|
|
$ |
1.88 |
|
FFO (b) |
|
|
0.51 |
|
|
|
0.63 |
|
|
|
2.07 |
|
|
|
2.45 |
|
AFFO (b) |
|
|
0.57 |
|
|
|
0.55 |
|
|
|
2.26 |
|
|
|
2.14 |
|
Diluted per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
0.30 |
|
|
$ |
0.57 |
|
|
$ |
1.15 |
|
|
$ |
1.88 |
|
FFO (b) |
|
|
0.51 |
|
|
|
0.63 |
|
|
|
2.06 |
|
|
|
2.44 |
|
AFFO (b) |
|
|
0.57 |
|
|
|
0.55 |
|
|
|
2.25 |
|
|
|
2.14 |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
52,783 |
|
|
|
46,734 |
|
|
|
50,020 |
|
|
|
46,730 |
|
Diluted |
|
|
52,880 |
|
|
|
46,891 |
|
|
|
50,216 |
|
|
|
46,838 |
|
(a) Net earnings and FFO for the three and
twelve months ended December 31, 2022 included credits of $5.6
million and $22.2 million, respectively, related to the removal of
reserves for unknown environmental remediation obligations at
certain properties.(b) Dividends paid and undistributed
earnings allocated, if any, to unvested restricted stockholders are
deducted from FFO and AFFO for the computation of the per share
amounts. The following amounts were deducted:
|
|
Three months endedDecember
31, |
|
|
Twelve months endedDecember
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
FFO |
|
$ |
642 |
|
|
$ |
471 |
|
|
$ |
2,624 |
|
|
$ |
2,734 |
|
AFFO |
|
|
721 |
|
|
|
473 |
|
|
|
2,865 |
|
|
|
2,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts: |
Brian Dickman |
Investor Relations |
|
Chief Financial Officer |
(646) 349-0598 |
|
(646) 349-6000 |
ir@gettyrealty.com |
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