Getty Realty Files 10-Q: ATM Programs and SOFR Benchmarking

TL;DR

GTY 10-Q shows ATM issuances and SOFR debt. Watch rates.

AI Summary

Getty Realty Corp. (GTY) filed its 10-Q for the period ending June 30, 2024. The company reported on its At-The-Market (ATM) Direct Issuances Program and its At-The-Market Equity Offering Program during the first six months of 2024. Financial instruments related to deferred compensation were valued using Level 2 inputs, and the company's term loan facility, which includes a line of credit, is benchmarked against the Secured Overnight Financing Rate (SOFR).

Why It Matters

This filing provides insight into Getty Realty's capital raising activities through its ATM programs and its exposure to interest rate fluctuations via SOFR-linked debt.

Risk Assessment

Risk Level: medium — The company's reliance on ATM programs and SOFR-linked debt introduces risks related to market volatility and interest rate changes.

Key Numbers

• 2024-06-30 — Reporting Period End Date (The end date for the financial information presented in the 10-Q.)
• 2024-01-01 to 2024-06-30 — ATM Program Activity Period (Period during which At-The-Market equity offerings were active.)

Key Players & Entities

• Getty Realty Corp. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• gty:AtTheMarketDirectIssuancesProgramMember (program) — Mentioned financial activity
• gty:AtTheMarketEquityOfferingProgramMember (program) — Mentioned financial activity
• us-gaap:FairValueInputsLevel2Member (valuation_input) — Used for deferred compensation liability
• gty:TermLoanMember (loan) — Part of the company's debt structure
• us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember (rate) — Benchmark for term loan

FAQ

Filing Documents

• gty-20240630.htm (10-Q) — 2266KB
• gty-ex31_1.htm (EX-31.1) — 12KB
• gty-ex31_2.htm (EX-31.2) — 13KB
• gty-ex32_1.htm (EX-32.1) — 7KB
• gty-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-086604.txt ( ) — 10806KB
• gty-20240630.xsd (EX-101.SCH) — 1553KB
• gty-20240630_htm.xml (XML) — 2268KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 1 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 2 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 3

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 4 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 41

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 42 Item 1A.

Risk Factors

Risk Factors 42 Item 5. Other Information 42 Item 6. Exhibits 43

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

FINAN CIAL STATEMENTS

ITEM 1. FINAN CIAL STATEMENTS GETTY REALTY CORP. CONSOLIDATED B ALANCE SHEETS (Unaudited) (in thousands, except per share amounts) June 30, 2024 December 31, 2023 ASSETS Real estate: Land $ 903,208 $ 867,884 Buildings and improvements 939,713 847,339 Investment in direct financing leases, net 56,684 59,964 Construction in progress 1,338 426 Real estate held for use 1,900,943 1,775,613 Less accumulated depreciation and amortization ( 286,422 ) ( 265,593 ) Real estate held for use, net 1,614,521 1,510,020 Lease intangible assets, net 118,199 100,315 Real estate held for sale, net 2,383 2,429 Real estate, net 1,735,103 1,612,764 Notes and mortgages receivable 62,699 112,008 Cash and cash equivalents 4,723 3,307 Restricted cash 2,360 1,979 Deferred rent receivable 57,741 54,424 Accounts receivable 4,400 5,012 Right-of-use assets - operating 13,426 14,571 Right-of-use assets - finance 131 174 Prepaid expenses and other assets, net 11,293 18,066 Total assets $ 1,891,876 $ 1,822,305 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Borrowings under Revolving Credit Facility $ 17,500 $ 10,000 Senior Unsecured Notes, net 673,531 673,406 Term Loan, net 148,321 72,692 Environmental remediation obligations 20,958 22,369 Dividends payable 25,047 24,850 Lease liability - operating 14,791 16,051 Lease liability - finance 472 595 Accounts payable and accrued liabilities, net 40,222 46,790 Total liabilities 940,842 866,753 Commitments and contingencies — — Stockholders' equity: Preferred stock, $ 0.01 par value; 20,000,000 shares authorized; uniss ued — — Common stock, $ 0.01 par value; 100,000,000 shares authorized; 54,184,831 and 53,952,539 shares issued and outstanding, respectively 542 540 Accumulated other comprehensive income (loss) ( 1,051 ) ( 4,02

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1. — DESCRIPTION OF BUSINESS Getty Realty Corp. ("Getty Realty") (NYSE: GTY), a Maryland corporation, is a publicly traded, net lease real estate investment trust ("REIT") specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. Our predecessor was founded in 1955 and our common stock was listed on the New York Stock Exchange ("NYSE") in 1997. Unless otherwise expressly stated or the context otherwise requires, the "Company," "we," "us," and "our" as used herein refer to Getty Realty and its owned and controlled subsidiaries. Our portfolio includes convenience stores, express tunnel car washes, automotive service centers (gasoline and repair, oil and maintenance, tire and battery, and collision), and certain other freestanding retail properties, including drive thru quick service restaurants and automotive parts retailers. Our 1,124 properties a s of June 30, 2024 are located in 42 states and Washington, D.C., and our tenants operate under a variety of national and regional retail brands. We are internally managed by our management team, which has extensive experience acquiring, owning and managing convenience, automotive and other single tenant retail real estate, and our company is headquartered in New York, New York. NOTE 2. — ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of Getty Realty and its wholly owned subsidiaries. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). We do not distinguish our principal business or our operations on a geographical basis for purposes of measuring performance. We manage and evaluate our operations as a single segment. All significant intercompany accounts and transactions have been eliminated. Unaudited, Inte

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View this 10-Q filing on SEC EDGAR