Getty Realty announces public offering of 3.5 million shares

NEW YORK - Getty Realty Corp . (NYSE: NYSE:GTY), a net lease real estate investment trust, has launched an underwritten public offering of 3.5 million shares of its common stock, the company announced today. In addition, the forward purchasers, which include BofA Securities, J.P. Morgan, and KeyBanc Capital Markets or their affiliates, may sell up to an additional 525,000 shares if the underwriters exercise their 30-day option in full.

The company expects to enter into forward sale agreements with the book-running managers or their affiliates. Under these agreements, the forward purchasers or their affiliates will borrow and sell shares to the underwriters. Getty Realty will settle these agreements within about one year from the date of the prospectus supplement, receiving cash payments per share equal to the forward sale price.

Initially, Getty Realty will not receive proceeds from the sale of shares by the forward purchasers. The net proceeds from the offering and the future settlements are intended for property acquisitions, repayment of debt under its credit facility, working capital, and other general corporate purposes.

The offering is made under an automatic shelf registration statement filed with the Securities and Exchange Commission (SEC) and effective as of January 5, 2024. A preliminary prospectus supplement has also been filed with the SEC. Interested parties can obtain copies of the prospectus supplement from the SEC's website or directly from the book-running managers.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any shares of common stock. The sale of such common stock is subject to registration or qualification under the securities laws of any such state or jurisdiction.

The press release contains forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such statements.

Getty Realty specializes in the acquisition, financing, and development of convenience, automotive, and other single-tenant retail real estate. As of June 30, 2024, its portfolio included 1,124 freestanding properties across 42 states and Washington, D.C.

The information in this article is based on a press release statement from Getty Realty Corp.

In other recent news, Getty Realty reported a notable financial performance for Q2 2024, marked by a 15% rise in annualized base rent and an increase in adjusted funds from operations (AFFO) per share. The company's full-year AFFO guidance has also been raised, signaling confidence in its strategic investments and portfolio management. These developments come despite uncertainties in the transaction and capital markets.

The company's annualized base rent grew to $185 million, and AFFO per share expanded by 3.6% compared to the previous year. Furthermore, Getty Realty invested over $100 million in properties and added three new national tenants. The company maintains a high occupancy rate of 99.7% and a weighted average lease term of 9.2 years, with assets under contract exceeding $53 million.

Despite potential challenges from interest rates and geopolitical factors, Getty Realty's targeted investment strategy and industry knowledge are expected to continue generating shareholder value. The company anticipates increased leasing activity and new development projects in the coming quarters, while maintaining target leverage levels and an investment-grade credit profile.

InvestingPro Insights

Amid the announcement of Getty Realty Corp.'s (NYSE: GTY) public offering, the company's financial health and market performance provide essential context for investors. According to InvestingPro data, Getty Realty boasts a market capitalization of $1.71 billion and maintains a robust gross profit margin of 88.85% over the last twelve months as of Q2 2024. This high margin underscores the company's efficiency in generating income from its operations, a key consideration for investors evaluating the offering's potential impact.

Investors may also note the company's strong performance in the market, with an impressive one-month price total return of 18.83% and a three-month return of 18.98% as of the data available. These figures suggest a positive investor sentiment and a potentially favorable response to the stock offering.

In terms of shareholder rewards, Getty Realty has demonstrated a commitment to consistent dividend payments, having maintained them for 30 consecutive years. The dividend yield stands at 5.68%, and the company has raised its dividend for 7 consecutive years, highlighting a reliable income stream for dividend-focused investors.

For those interested in a deeper dive into Getty Realty's metrics and potential investment strategies, there are additional InvestingPro Tips available. These tips include insights such as the company's liquid assets exceeding short-term obligations and the prediction by analysts that the company will be profitable this year.

For access to these valuable tips and more, visit InvestingPro and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 9 additional tips listed in InvestingPro that can further guide your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.