Getty Realty Acquires 77 Properties for $214 Million

– Properties Located in Pacific Northwest, West Coast and Colorado –

– Company Secures $300 Million of Financing –

JERICHO, N.Y.--()--Getty Realty Corp. (NYSE:GTY) announced today that it has acquired fee simple interests in 77 convenience store and retail motor fuel stations located in several high growth regions including Northern California, Southern California, Colorado, Washington, Nevada and Oregon for approximately $214 million. The acquired properties operate under several well recognized brands including 76, Conoco, Circle K, 7-11 and My Goods Market.

David B. Driscoll, Getty’s President and CEO, stated, “This acquisition is immediately accretive to AFFO, FFO and earnings. It also achieves several important objectives for our Company including: materially expanding our geographic reach primarily in high growth regions and adding a new institutional quality tenant. We believe the addition of these properties, combined with other activity in our portfolio, has materially improved the overall credit quality of our revenue stream. In addition, we believe we are positioned to provide sustained cash flow growth for shareholders in the coming years.”

The 77 properties were acquired from affiliates of Pacific Convenience and Fuels LLC and simultaneously leased to United Oil, a leading regional convenience store and gas station operator. United Oil is triple-net leasing the 77 properties acquired by Getty for an initial term of 20 years, with three five-year renewal options. The Company expects to receive approximately $16.7 million of annual GAAP revenue from the transaction.

United Oil operates approximately 400 locations (inclusive of the current transaction) in the Western United States and Colorado and is a portfolio company of Fortress Investment Group LLC.

Financing:

In conjunction with the acquisition transaction, on June 2, 2015, the Company entered into a new $225 million senior unsecured credit facility with a consortium of banks led by Bank of America and JP Morgan Chase which replaced its existing $175 million senior secured credit facility. The new credit facility consists of an unsecured $175 million revolving facility which bears interest at a margin of 195 to 325 basis points over LIBOR based on the Company’s total leverage, and an unsecured $50 million term loan which bears interest at a margin of 190 to 320 basis points over LIBOR based on the Company’s total leverage. The revolving facility matures in 2018 and has a one year extension option, and the term loan matures in 2020.

On June 2, 2015, the Company also entered into a new $75 million unsecured term loan with The Prudential Insurance Company of America. The term loan matures in 2023 and bears interest at 5.35%.

The Company financed the acquisition transaction by utilizing the $75 million and $50 million term loans and drawing the remainder from the revolving credit facility.

Forward-Looking Statements:

CERTAIN STATEMENTS CONTAINED HEREIN MAY CONSTITUTE “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN THE WORDS “BELIEVES,” “EXPECTS,” “PLANS,” “PROJECTS,” “ESTIMATES”, “ANTICIPATES”, “MAY” AND SIMILAR EXPRESSIONS ARE USED, THEY IDENTIFY FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON MANAGEMENT’S CURRENT BELIEFS AND ASSUMPTIONS AND INFORMATION CURRENTLY AVAILABLE TO MANAGEMENT AND INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. EXAMPLES OF FORWARD-LOOKING STATEMENTS INCLUDE BUT ARE NOT LIMITED TO STATEMENTS REGARDING THE PERFORMANCE OF THE ACQUISITION, CASH FLOW GROWTH, RENT FROM THE ACQUISITION AND THE ACCRETIVE NATURE OF THE TRANSACTION.

INFORMATION CONCERNING FACTORS THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS CAN BE FOUND IN THE COMPANY’S PERIODIC REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY RELEASE REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT FUTURE EVENTS OR CIRCUMSTANCES OR REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

About Getty Realty Corp.

Getty Realty Corp. is the leading publicly traded real estate investment trust in the United States specializing in ownership, leasing and financing of convenience store/gas station properties. The Company owns and leases approximately 930 properties nationwide.

Contacts

Getty Realty Corp.
Christopher J. Constant, 516-478-5460
Chief Financial Officer

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