NEW YORK–(BUSINESS WIRE)–Getty Realty Corp. (NYSE: GTY) today provided an update on the Company’s fourth quarter and full year 2022 business activities. The Company also provided its initial full year 2023 earnings guidance.
2022 Highlights
- Invested approximately $157 million across 52 properties, including approximately $83 million across 36 properties in the fourth quarter.
- As of December 31, 2022, had a committed investment pipeline of more than $100 million for the development and acquisition of 28 convenience stores and car wash properties.
- Entered into forward sale agreements to sell an aggregate of 3.7 million common shares for anticipated gross proceeds of $117.6 million through the Company’s at-the-market (“ATM”) equity program, including agreements to sell 3.0 million common shares for anticipated gross proceeds of $96.1 million in the fourth quarter.
- As of December 31, 2022, had committed permanent capital totaling more than $180 million, including cash on hand, 1031 sale proceeds, forward sale agreements under the Company’s ATM equity program, and net proceeds from the delayed draw component of the Company’s previously announced unsecured notes issuance.
“I am proud of Getty’s accomplishments in 2022. Despite challenging macroeconomic conditions, and evolving transaction and capital markets, we continued to execute on our core growth and diversification strategies,” stated Christopher J. Constant, Getty’s President & Chief Executive Officer. “I am especially pleased with our activity in the fourth quarter, which saw us close on a variety of investments and raise record amounts of equity capital at attractive prices. Looking ahead, we are excited about the strength of our investment pipeline, and are pleased that our team continues to source new opportunities to acquire convenience and automotive retail real estate located in major metropolitan markets and leased to growing, institutional quality operators.”
Portfolio Activities
Acquisitions
In 2022, the Company acquired fee simple interests in 40 properties for approximately $137 million, including 24 properties for approximately $74 million in the fourth quarter.
Acquisitions included 16 car wash properties for $67 million, nine convenience stores for $44 million, 14 auto service centers for $23 million and one drive-thru quick service restaurant for $3 million.
Development Funding
In 2022, the Company advanced construction loans in the amount of $20 million, including accrued interest, for the development of 12 new-to-industry convenience stores and car wash properties, including $9 million advanced in the fourth quarter.
As of December 31, 2022, the Company had advanced aggregate construction loans in the amount of approximately $26 million, including accrued interest, for the development of these 12 properties which the Company expects to acquire via sale-leaseback transactions at the end of their respective construction periods.
Investment Pipeline
As of December 31, 2022, the Company had a committed investment pipeline of more than $100 million for the acquisition and development of 28 convenience stores and car wash properties. The Company expects to fund this investment activity over approximately the next nine 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
In 2022, rent commenced on two redevelopment properties, including one property in the fourth quarter which was leased to Murphy USA under a long term, triple net lease.
As of December 31, 2022, the Company had three properties under active redevelopment and others in various stages of feasibility planning for potential recapture from our net lease portfolio.
Dispositions
In 2022, the Company sold 24 properties for gross proceeds of approximately $26 million, including five properties for gross proceeds of approximately $13 million in the fourth quarter.
Capital Markets Activities
Common Equity
In 2022, the Company entered into forward sale agreements to sell an aggregate of 3.7 million common shares for anticipated gross proceeds of $117.6 million through its ATM equity program, including agreements to sell 3.0 million common shares for anticipated gross proceeds of $96.1 million in the fourth quarter.
As of December 31, 2022, no shares subject to forward sale agreements had been settled by the Company.
Credit Facility Amendment
In December 2022, the Company amended the terms of its $300 million unsecured revolving credit facility to transition the applicable interest rates from LIBOR-based rates to SOFR-based rates.
As of December 31, 2022, the Company had $230 million available under its revolving credit facility.
2023 Guidance
The Company has established its 2023 AFFO guidance at a range of $2.19 to $2.21 per diluted share. The Company’s outlook includes completed transaction activity as of the date of this release, as well as the previously announced issuance of $125 million of new 3.65% unsecured notes in January 2023 and simultaneous prepayment of $75 million of 5.35% unsecured notes due June 2023, but does not include any other assumptions for prospective acquisitions, dispositions, or capital markets activities (including the settlement of outstanding forward sale agreements). The Company’s outlook also assumes approximately $0.4 million of demolition costs for anticipated redevelopment projects with rent commencements anticipated in 2023 and 2024.
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 Securities and Exchange Commission.
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, 2022, the Company’s portfolio included 1,039 freestanding properties located in 38 states across the United States and Washington, D.C.
