GTY — Getty Realty Corp.

Summary of Getty Realty Corp. Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• AFFO per share: $0.63, a 6.8% increase year-over-year.
• FFO: $0.69 per share.
• Net income: $0.43 per share.
• Annualized base rent: Increased by 13.1% year-over-year.
• Occupancy rate: 99.7% (excluding redevelopment properties).
• Tenant rent coverage ratio: 2.5x over the trailing 12 months.
• G&A ratio: 9.2%, improved by 130 basis points from Q1 2025.
• Net debt to EBITDA: 5.1x (4.2x including unsettled forward equity).
• Fixed charge coverage: 4x.

2. Strategic Updates and Business Highlights

• The company is focusing on growth through a robust investment strategy, having deployed over $34 million year-to-date at an initial cash yield of 8%.
• A significant investment pipeline of approximately $125 million is under contract, with a mix of relationship sale-leasebacks and development funding opportunities.
• The company has enhanced its investment team and processes to capitalize on market opportunities in convenience and automotive retail sectors.
• The portfolio consists of 1,186 net lease properties across 45 states, with a weighted average lease term of 10.1 years.

3. Forward Guidance and Outlook

• Full-year 2026 AFFO per share guidance increased to $2.50 - $2.52, up from a prior range of $2.48 - $2.50.
• Management remains optimistic about the portfolio's resilience and the ability to drive disciplined growth through strategic investments.

4. Bad News, Challenges, or Points of Concern

• While the portfolio remains healthy, there are ongoing geopolitical tensions and macroeconomic uncertainties that could impact tenant performance.
• The company has conservatively baked a 25-basis-point assumption for credit loss into its guidance, although no credit losses were experienced in Q1.
• The cost of capital has not materially improved, raising questions about future capital raising strategies.

5. Notable Q&A Insights

• Management indicated that the increased momentum in the investment pipeline is driven by a combination of expanded business development efforts and a favorable market for sale-leaseback transactions.
• The company remains selective in its investment strategy, focusing on four core sectors while being open to opportunities across all.
• Discussions around tenant performance revealed confidence in the ongoing profitability of c-store businesses despite recent store closures by 7-Eleven.
• Management confirmed that there are no significant concerns regarding credit loss in the portfolio, emphasizing the essential nature of their tenants' businesses.
• The company is evaluating its capital allocation strategy but plans to maintain leverage within its target range of 4.5x to 5.5x.

Overall, Getty Realty Corp. reported a strong start to 2026, with solid financial results and an optimistic outlook, while remaining vigilant about potential market challenges.