NEW YORK - Getty Realty Corp . (NYSE: NYSE:GTY), a real estate investment trust (REIT) specializing in convenience and automotive retail properties, announced its 2024 performance and initial 2025 earnings guidance today. With a market capitalization of $1.62 billion and an attractive dividend yield of 6.34%, the company invested approximately $209 million in real estate assets last year, achieving an 8.3% initial cash yield, and raised around $289 million in new equity and debt capital to support its growth. According to InvestingPro analysis, Getty Realty maintains impressive gross profit margins of 91.32% and has maintained dividend payments for 30 consecutive years.
In the fourth quarter of 2024 alone, Getty Realty invested about $76 million at an 8.9% initial cash yield, including acquisitions of convenience stores, express tunnel car washes, auto service centers, and a quick service restaurant. The company also sold 31 properties for gross proceeds of roughly $13 million. InvestingPro data shows the company maintains strong financial health with a GOOD overall score, suggesting effective management of its portfolio operations. For detailed analysis of Getty’s investment strategy and comprehensive financial metrics, investors can access the Pro Research Report, one of 1,400+ available on InvestingPro.
The REIT’s capital markets activities in 2024 included raising approximately $164 million through the sale of common shares and closing a private placement of $125 million of senior unsecured notes. These funds are intended to support further investment activities and repay existing debt.
Looking ahead, Getty Realty has set its 2025 Adjusted Funds From Operations (AFFO) guidance in the range of $2.40 to $2.42 per diluted share. Trading near its 52-week high of $33.84, the stock appears slightly overvalued according to InvestingPro’s Fair Value analysis. This forecast includes the impact of completed transactions as of the end of 2024 and the issuance and repayment of senior notes but does not account for potential future acquisitions, dispositions, or capital market activities.
The company’s investment pipeline as of December 31, 2024, comprises over $29 million in development and acquisition of 15 convenience and automotive retail assets, expected to be funded in the next 9-12 months. Additionally, Getty Realty has nearly $240 million in committed equity and debt capital to support its transaction activity.
Getty Realty’s portfolio includes 1,118 properties across 42 states and Washington, D.C. The company focuses on non-GAAP financial measures like FFO and AFFO to evaluate its performance, as these metrics exclude items such as depreciation and amortization of real estate assets and impairment charges, which are not indicative of core operating performance.
The information presented in this article is based on a press release statement from Getty Realty Corp.
In other recent news, Getty Images and Shutterstock (NYSE:SSTK) announced a definitive agreement to merge, creating a premier visual content company valued at approximately $3.7 billion. The merger aims to combine the vast content libraries of both companies, offering customers a more extensive selection of visual content and expanding global reach. The financial profile of the combined company is robust, with revenues projected to range from $1.979 to $1.993 billion, and EBITDA forecasted between $569 million and $574 million before synergies. Craig Peters, current CEO of Getty Images, will serve as CEO of the merged entity.
In parallel developments, Getty Realty reported a productive third quarter for 2024, with a 13.1% year-over-year growth in annualized base rent to $190 million and a 3.5% rise in adjusted funds from operations per share to $0.59. The company also announced a 4.4% increase in its quarterly dividend to $0.47 per share, marking an 11-year streak of dividend growth. This growth was supported by successful capital raising efforts, with $245 million raised through common equity and unsecured debt, bolstering liquidity for future investments.
These recent developments highlight the strategic moves by Getty Images and Getty Realty to strengthen their market positions and deliver value to their shareholders. As these stories unfold, investors will be keenly watching the progress and outcomes of these initiatives.
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