Q4 2025 Getty Realty Corp Earnings Call

February 12, 2026

Speaker #2: Prior to starting the call, Joshua Dicker, Executive Vice President, General Counsel, and Secretary of the company, will read a safe harbor statement and provide information about the non-GAAP financial measures.

Speaker #2: Please go ahead, Mr. Dicker.

Speaker #1: Thank you, operator. I would like to thank you all for joining us for Getty Realty's 4th quarter and year-end earnings conference call. Yesterday afternoon, the company released its financial and operating results for the quarter and year-end in December 31, 2025.

Joshua Dicker: Thank you, operator. I would like to thank you all for joining us for Getty Realty's Q4 and year-end earnings conference call. Yesterday afternoon, the company released its financial and operating results for the quarter and year ended December 31, 2025. The Form 8-K and earnings release are available in the investor relations section of our website at gettyrealty.com. Certain statements made during this call are not based on historical information and may constitute forward-looking statements. These statements reflect management's current expectations and beliefs and are subject to trends, events, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Examples of forward-looking statements include our 2026 guidance and may include statements made by management, including those regarding the company's future operations, future financial performance, or investment plans and opportunities.

Speaker #1: The form AK and earnings release are available in the investor relations section of our website at gettyrealty.com. Certain statements made during this call are not based on historical information and may constitute forward-looking statements.

Speaker #1: These statements reflect management's current expectations and beliefs and are subject to trends, events, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Joshua Dicker: These statements reflect management's current expectations and beliefs and are subject to trends, events, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Examples of forward-looking statements include our 2026 guidance and may include statements made by management, including those regarding the company's future operations, future financial performance, or investment plans and opportunities.

Speaker #1: Examples of forward-looking statements include our 2026 guidance and may include statements made by management, including those regarding the company's future operations, future financial performance, or investment plans and opportunities.

Speaker #1: We caution you that such statements reflect our best judgment based on factors currently known to us and that actual events or results could differ materially.

Joshua Dicker: We caution you that such statements reflect our best judgment based on factors currently known to us, and that actual events or results could differ materially. I refer you to the company's annual report on Form 10-K for the year ended December 31, 2024, as well as any subsequent filings made with the SEC for a more detailed discussion of the risks and other factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. You should not place undue reliance on forward-looking statements, which reflect our view only as of today. The company undertakes no duty to update any forward-looking statements that may be made during this call.

Speaker #1: I refer you to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as any subsequent filings with the SEC.

Speaker #1: For a more detailed discussion of the risks and other factors that could cause actual results to differ materially from those expressed or implied , implied in any forward looking statements made today , you should not place undue reliance on forward looking statements , which reflect our view only as of today .

Joshua Dicker: You should not place undue reliance on forward-looking statements, which reflect our view only as of today. The company undertakes no duty to update any forward-looking statements that may be made during this call.

Speaker #1: The company undertakes no duty to update any forward looking statements that may be made during this call . Also , please refer to our earnings release for a discussion of our use of non-GAAP financial measures , including our definition of adjusted funds from operations or AFO , and our reconciliation of those measures to net earnings With that , let me turn the call over to Christopher Constant , our Chief Executive Officer .

Joshua Dicker: Also, please refer to our earnings release for a discussion of our use of non-GAAP financial measures, including our definition of adjusted funds from operations or AFFO and our reconciliation of those measures to net earnings. With that, let me turn the call over to Christopher Constant, our Chief Executive Officer.

Speaker #2: Thank you . Josh . Good morning , everyone , and welcome to our earnings call for the fourth quarter and year end 2025 .

Christopher Constant: ... Thank you, Josh. Good morning, everyone, and welcome to our earnings call for the fourth quarter and year-end 2025. Joining us on the call today are Mark Olear, our Chief Investment Officer and Chief Operating Officer; Brian Dickman, our Chief Financial Officer; and RJ Ryan, our Senior Vice President of Acquisitions. As previously announced, RJ will succeed Mark as Chief Investment Officer upon Mark's retirement at the end of this month. I will lead off today's call by providing highlights of Getty's 2025 financial performance and investment activity. Mark and RJ will then discuss our portfolio and investments in greater detail, and Brian will provide additional information regarding our earnings, balance sheet, and 2026 AFFO per share guidance.

Speaker #2: Joining us on the call today are Mark Olear , our chief investment Officer and chief Operating officer , Brian Dickman , our Chief Financial Officer and RJ Ryan , our senior vice president of acquisitions As previously announced , RJ will succeed Marc as chief Investment Officer upon Marc's retirement at the end of this month I will lead off today's call by providing highlights of Getty's 2025 financial performance and investment activity Marc and RJ will then discuss our portfolio and investments in greater detail , and Brian will provide additional information regarding our earnings balance sheet and 2026 oh per share guidance .

Christopher Constant: As previously announced, RJ will succeed Mark as Chief Investment Officer upon Mark's retirement at the end of this month. I will lead off today's call by providing highlights of Getty's 2025 financial performance and investment activity. Mark and RJ will then discuss our portfolio and investments in greater detail, and Brian will provide additional information regarding our earnings, balance sheet, and 2026 AFFO per share guidance.

Speaker #2: I am pleased to report that the combination of stable rental income from our in-place portfolio and strong yields from acquisitions produced strong rent and earnings growth for the fourth quarter and full year 2025 .

Christopher Constant: I am pleased to report that the combination of stable rental income from our in-place portfolio and strong yields from acquisitions produced strong rent and earnings growth for the Q4 and full year 2025. Getty's annualized base rent grew by nearly 12% in 2025, while AFFO per share was up 5% for the Q4 and 3.8% for the full year, which was the high end of our increased earnings guidance. Our in-place portfolio continues to provide a solid foundation for our business, with essentially full occupancy and rent collections and stable rent coverage. Our tenants continue to benefit from consumer trends that drive performance at convenience and automotive retail properties, namely demand for convenience, speed, and do it for me services, and their businesses have proven resilient as they have historically.

Speaker #2: Getty's annualized base rent grew by nearly 12% in 2025 . While AFFO per share was up 5% for the fourth quarter and 3.8% for the full year , which was the high end of our increased earnings guidance .

Speaker #2: Our in-place portfolio continues to provide a solid foundation for our business with essentially full occupancy and rent collections and stable rent coverage Our tenants continue to benefit from consumer trends that drive performance at convenience and automotive retail properties , namely , demand for convenience , speed and do it for me services .

Christopher Constant: Our in-place portfolio continues to provide a solid foundation for our business, with essentially full occupancy and rent collections and stable rent coverage. Our tenants continue to benefit from consumer trends that drive performance at convenience and automotive retail properties, namely demand for convenience, speed, and do it for me services, and their businesses have proven resilient as they have historically.

Speaker #2: And their businesses have proven resilient as they have historically Turning to our growth initiatives for the year , we invested approximately $270 million at an initial cash yield of 7.9% .

Christopher Constant: Turning to our growth initiatives, for the year, we invested approximately $270 million at an initial cash yield of 7.9%. I would like to highlight a few accomplishments for the year, which demonstrate the effective execution of our strategy to accretively grow and further diversify our portfolio. First, the $100 million sale-leaseback we closed in October for a 12-property convenience store portfolio in Houston, Texas. These assets are leased to Now and Forever, a growing regional convenience store chain with a dominant market position in densely populated Houston submarkets. Over the last five years, we have acquired more than 60 properties, generating nearly $25 million of ABR in Texas, which is now our largest state exposure, including more than 25 properties, generating over $14 million of ABR in Houston, which is now our second-largest market after New York City.

Speaker #2: I would like to highlight a few accomplishments for the year , which demonstrate the effective execution of our strategy to grow and further diversify our portfolio First , the $100 million sale leaseback we closed in October for a 12 property convenience store portfolio in Houston , Texas These assets are leased to Now and Forever , a growing regional convenience store chain with a dominant market position in densely populated Houston submarkets over the last five years , we have acquired more than 60 properties , generating nearly 25 million of ABR in Texas , which is now our largest state .

Christopher Constant: These assets are leased to Now and Forever, a growing regional convenience store chain with a dominant market position in densely populated Houston submarkets. Over the last five years, we have acquired more than 60 properties, generating nearly $25 million of ABR in Texas, which is now our largest state exposure, including more than 25 properties, generating over $14 million of ABR in Houston, which is now our second-largest market after New York City.

Speaker #2: Exposure , including more than 25 properties generating over $14 million of ABR in Houston , which is now our second largest market after New York City Second , we made a significant commitment to the collision repair sector when we agreed to provide up to 82.5 million of development funding for the construction of 11 new to industry collision centers for a top three operator in the sector .

Christopher Constant: Second, we made a significant commitment to the collision repair sector when we agreed to provide up to $82.5 million of development funding for the construction of 11 new-to-industry collision centers for a top three operator in the sector. We expect a number of these sites to open in 2026 and look forward to building on our momentum in this subsector of automotive services. We also completed our first travel center investments with existing and new tenants who have expanded their store networks by building or acquiring large format C-stores and travel centers. We view investing in travel centers as a natural extension of our buy box, and in 2025, we acquired 4 travel centers for $47.1 million.

Christopher Constant: We expect a number of these sites to open in 2026 and look forward to building on our momentum in this subsector of automotive services. We also completed our first travel center investments with existing and new tenants who have expanded their store networks by building or acquiring large format C-stores and travel centers. We view investing in travel centers as a natural extension of our buy box, and in 2025, we acquired 4 travel centers for $47.1 million.

Speaker #2: We expect a number of these sites to open in 2026 and look forward to building on our momentum in this subsector of automotive services.

Speaker #2: We also completed our first travel center investments with existing and new tenants who have expanded their store networks by building or acquiring large format stores and travel centers .

Speaker #2: We view investing in travel centers as a natural extension of our buy box, and in 2025, we acquired four travel centers for $47.1 million additional 2025.

Christopher Constant: Additional 2025 highlights include a record year of investments for drive-through quick service restaurants, where deliberate resource allocation and targeted sourcing efforts resulted in Getty investing nearly $40 million across 28 properties, representing approximately 15% of our investment activity for the year. We also continued to allocate capital to dense and growing markets during the year. More than 75% of our 2025 investment activity was in top 100 markets around the US, and we increased exposure to a number of attractive metro areas, including Atlanta, Dallas, Houston, Las Vegas, Memphis, and San Antonio. We also demonstrated the consistency of our relationship-based sale-leaseback acquisition strategy during the year by directly negotiating transactions with tenants that drive more than 90% of our closed transactions in 2025, which helped us add 13 new tenants to our portfolio during the year.

Speaker #2: Highlights include a record year of investments for drive thru , quick service restaurants where deliberate resource allocation and targeted sourcing efforts resulted in Getty investing nearly 40 million across 28 properties representing approximately 15% of our investment activity .

Speaker #2: For the year . We also continued to allocate capital to dense and growing markets during the year . More than 75% of our 2025 investment activity was in top 100 markets around the US , and we increased exposure to a number of attractive metro areas , including Atlanta , Dallas , Houston , Las Vegas , Memphis and San Antonio .

Christopher Constant: More than 75% of our 2025 investment activity was in top 100 markets around the US, and we increased exposure to a number of attractive metro areas, including Atlanta, Dallas, Houston, Las Vegas, Memphis, and San Antonio. We also demonstrated the consistency of our relationship-based sale-leaseback acquisition strategy during the year by directly negotiating transactions with tenants that drive more than 90% of our closed transactions in 2025, which helped us add 13 new tenants to our portfolio during the year.

Speaker #2: We also demonstrated the consistency of our relationship based sale leaseback acquisition strategy during the year by directly negotiating transactions with tenants that drive more than 90% of our closed transactions , 2025 , which helped us add 13 new tenants to our portfolio during the year Finally , our ability to maintain a healthy investment pipeline , which currently consists of approximately 100 million of investments under contract , most of which we expect to fund by the end of 2026 .

Christopher Constant: Finally, our ability to maintain a healthy investment pipeline, which currently consists of approximately $100 million of investments under contract, most of which we expect to fund by the end of 2026. Sticking with our pipeline, including opportunities that are in various stages of underwriting and negotiating, our investment team continues to do an excellent job sourcing investment opportunities that fit our well-defined strategy, meet our stringent underwriting criteria, and generate consistent earnings growth. Our collective ability to execute period after period, regardless of market conditions, is a testament to the platform and culture we've established at Getty. As we think about 2026 and beyond, we continue to be excited about our strategy, the sectors we invest in, our people, and the platform we've built.

Speaker #2: Sticking with our pipeline , including opportunities that are in various stages of underwriting and negotiating , our investment team continues to do an excellent job of sourcing investment opportunities that fit our well-defined strategy , meet our stringent underwriting criteria , and generate consistent earnings growth Our collective ability to execute period after period , regardless of market conditions , is a testament to the platform and culture we've established at Getty .

Christopher Constant: Our collective ability to execute period after period, regardless of market conditions, is a testament to the platform and culture we've established at Getty. As we think about 2026 and beyond, we continue to be excited about our strategy, the sectors we invest in, our people, and the platform we've built.

Speaker #2: As we think about 2026 and beyond . We continue to be excited about our strategy . The sectors we invest in , our people and the platform we've built We believe we are on a path to accelerate our growth trajectory as we expand our relationships , extend our underwriting to new opportunities , and further refine our processes with the help of data driven analysis to enhance our investment decisions .

Christopher Constant: We believe we are on a path to accelerate our growth trajectory as we expand our relationships, extend our underwriting to new opportunities, and further refine our processes with the help of data-driven analysis to enhance our investment decisions. I'd like to close with some comments on our upcoming management transition. As previously announced, Mark Olear is retiring at the end of February. During his time at Getty, Mark broadened our investable universe, redefined our underwriting approach, and created a redevelopment program that has seen us complete more than 30 value add projects. I want to congratulate Mark on a successful four-year career and thank him for being my partner for the past decade plus at Getty. We will miss having him here on a daily basis...

Speaker #2: I'd like to close with some comments on our upcoming management transition As previously announced , Mark Olear is retiring at the end of February During his time at Getty , Marc broadened our investable universe , redefined our underwriting approach , and created a redevelopment program that has seen us complete more than 30 value add projects .

Speaker #2: I want to congratulate Marc on a successful 40 year career , and thank you for being my partner for the past decade plus of Getty .

Speaker #2: We will miss having him on here on a daily basis I am equally excited to announce that RJ Ryan , our current SVP of acquisitions , will be promoted to the position of Chief Investment Officer RJ has been with Getty for nearly a decade , has led our acquisitions team since 2018 , and is ready to take on additional leadership responsibilities as our CIO I hope you all enjoyed getting to know RJ better as he plays a more visible role with the investment community .

Christopher Constant: I am equally excited to announce that RJ Ryan, our current SVP of Acquisitions, will be promoted to the position of Chief Investment Officer. RJ has been with Getty for nearly a decade, has led our acquisitions team since 2018, and is ready to take on additional leadership responsibilities as our CIO. I hope you all enjoy getting to know RJ better as he plays a more visible role with the investment community. With that, I'll turn the call over to Mark now.

Speaker #2: With that , I'll turn the call over to Marc Thank you Chris , I appreciate the kind words and I'd like to thank everyone at Getty .

Mark Olear: Thank you, Chris. I appreciate the kind words, and I'd like to thank everyone at Getty. It's been an honor to lead the company's real estate efforts for the past decade. RJ is more than ready for his new role, and I'm confident that Getty will be successful in continuing to execute its growth plans. Turning back to the business, at year-end, our lease portfolio included 1,169 net lease properties and 2 active redevelopment sites. Excluding the active redevelopments, occupancy was 99.7%, and our weighted average lease term was 9.9 years. Our portfolio spans 44 states plus Washington, DC, with 61% of our annualized base rent coming from top 50 MSAs, and 77% coming from top 100 MSAs.

Speaker #2: It's been an honor to lead the company's real estate efforts for the past decade RJ is more than ready for his new role , and I am confident that Getty will be successful in continuing to execute its growth plans Turning back to the business at year end , our lease portfolio included 1169 net lease properties and two active redevelopment sites , excluding the active redevelopment , occupancy was 99.7% and our weighted average lease term was 9.9 years .

Mark Olear: Turning back to the business, at year-end, our lease portfolio included 1,169 net lease properties and 2 active redevelopment sites. Excluding the active redevelopments, occupancy was 99.7%, and our weighted average lease term was 9.9 years. Our portfolio spans 44 states plus Washington, DC, with 61% of our annualized base rent coming from top 50 MSAs, and 77% coming from top 100 MSAs.

Speaker #2: Our portfolio spans 44 states plus Washington , D.C. , with 61% of our annualized base rent coming from top 50 MSAs and 77% coming from top 100 MSAs .

Speaker #2: We have performance insight into approximately 95% of our ABR through site level financial reporting or financials derived from public reporting companies . Our rents for properties where we received reporting continue to be well covered .

Mark Olear: We have performance insight into approximately 95% of our ABR through site-level financial reporting or financials derived from public reporting companies. Our rents for properties where we receive site-level reporting continue to be well covered, with a trailing 12-month rent coverage ratio of 2.5 times. Turning to our investment activities, I will let RJ take you through our results.

Speaker #2: With a trailing 12 month rent coverage ratio of 2.5 times Turning to our investment activities , I will let RJ take you through our results Thanks , Mark .

RJ Ryan: Thanks, Mark. Good morning, everyone. For the year, we underwrote a record $6.8 billion of potential investments. Consistent with our objective to diversify our portfolio within our target sectors, 54% of our underwriting was focused on non-convenience store properties, including auto service centers, primarily collision centers and oil change locations, drive-through quick service restaurants, and express tunnel car washes. We had a strong Q4, in which we invested $135.4 million across 26 properties at an initial cash yield of 7.9%. The weighted average lease term on acquired assets for the quarter was 15 years.

Speaker #2: Good morning everyone . For the year , we underwrote a record $6.8 billion of potential investments consistent with our objective to diversify our portfolio within our target sectors , 54% of our underwriting was focused on non convenience store properties , including auto service centers , primarily collision centers and oil change locations .

Speaker #2: Drive through quick service restaurants and express tunnel car washes We had a strong fourth quarter in which we invested $135.4 million across 26 properties and initial cash yield of 7.9% .

Speaker #2: The weighted average lease term on acquired assets for the quarter was 15 years Highlights of this quarter's investments include the acquisition of the 12 property , $100 million sale leaseback .

RJ Ryan: Highlights of this quarter's investments include the acquisition of the 12-property, $100 million sale-leaseback we completed with Now and Forever in October, two additional convenience stores for $18.7 million, which included a travel center and a New York City property that we previously leased. Six auto service centers for $9.9 million, of which $1.4 million was previously funded. Two express tunnel car wash properties for $10.9 million, of which $7.4 million was previously funded. We also advanced incremental development funding in the amount of $3.6 million for the construction of new-to-the-industry collision centers, oil change locations, and quick and drive-through QSRs. These assets are either already owned by the company and are under construction or will be acquired via sale-leaseback transactions at the end of the project's respective construction periods.

Speaker #2: We completed with Now and Forever in October . Two additional convenience stores for 18.7 million , which included a travel center and a New York City property that we previously leased .

Speaker #2: Six auto service centers for 9.9 million , of which 1.4 million was previously funded . Two express tunnel car wash properties for 10.9 million , of which 7.4 million was previously funded .

RJ Ryan: Two express tunnel car wash properties for $10.9 million, of which $7.4 million was previously funded. We also advanced incremental development funding in the amount of $3.6 million for the construction of new-to-the-industry collision centers, oil change locations, and quick and drive-through QSRs. These assets are either already owned by the company and are under construction or will be acquired via sale-leaseback transactions at the end of the project's respective construction periods.

Speaker #2: We also advanced incremental development funding in the amount of 3.6 million for the construction of new to industry collision centers , oil change locations and quick and drive through Qsrs .

Speaker #2: These assets are either already owned by the company and are under construction , or will be acquired via sale leaseback transactions at the end of the projects respective construction periods for the year .

RJ Ryan: For the year, Getty invested $268.8 million, which included the acquisition of 73 properties for $278.3 million, of which $23.1 million was previously funded, and the incremental development funding of $13.6 million. The weighted average initial yield on our investments was 7.9% for the year, and the weighted average lease term for the acquired assets was 15.8 years. Subsequent to year-end, we invested an additional $8.7 million for the acquisition for development of 4 drive-through QSRs and 4 auto service centers. Beyond our disclosed pipeline of approximately $100 million of investments under contract, the majority of which we expect to fund in 2026 at initial cash yields in the high 7% area, we continue to source actionable opportunities across our investable universe.

Speaker #2: Getty invested 268.8 million , which included the acquisition of 73 properties for 278.3 million , of which 23.1 million was previously funded , and the Incremental development funding of 13.6 million .

Speaker #2: The weighted average initial yield on our investments was 7.9% for the year , and the weighted average lease term for the acquired assets was 15.8 years .

Speaker #2: Subsequent to year end , we invested an additional 8.7 million for the acquisition or development of four drive through Qsrs and four auto service centers .

RJ Ryan: Beyond our disclosed pipeline of approximately $100 million of investments under contract, the majority of which we expect to fund in 2026 at initial cash yields in the high 7% area, we continue to source actionable opportunities across our investable universe. These are all properties that will be additive to our portfolio and accretive to earnings as we look to further scale and diversify our business.

Speaker #2: Beyond our disclosed pipeline of approximately 100 million of investments under contract . The majority of which we expect to fund in 2026 . At initial cash yields in the high 7% area , we continue to source actionable opportunities across our investable universe .

Speaker #2: These are all properties that will be additive to our portfolio and accretive to earnings as we look to further scale and diversify our business .

RJ Ryan: These are all properties that will be additive to our portfolio and accretive to earnings as we look to further scale and diversify our business.

Speaker #2: Thank you , RJ , as my final prepared remarks , I am pleased to say that as a result of our investment activity over the last several years , Getty .

Mark Olear: Thank you, RJ. As for my final prepared remarks, I am pleased to say that as a result of our investment activity over the last several years, Getty currently has the most diversified portfolio in terms of tenants, sectors, and geographies in the company's history. Since the onset of our current investment strategy, which emphasizes both growth and diversification, we have added 49 new tenants to our portfolio and diversified our annual rent streams, with nearly 30% of our annual base rent now derived from non-convenience and gas properties. With that, I turn the call over to Brian.

Speaker #2: Currently, we have the most diversified portfolio in terms of tenants, sectors, and geographies in the company's history. Since the onset of our current investment strategy, which emphasizes both growth and diversification, we have added 49 new tenants to our portfolio and diversified our annual rent streams, with nearly 30% of our annual base rent.

Speaker #2: Now derived from non convenience and gas properties . With that , I turn the call over to Brian . Thanks , Marc .

Brian Dickman: Thanks, Mark. RJ, good morning, everybody. Yesterday we reported AFFO per share of $0.63 for Q4 2025, an increase of 5% over Q4 2024. FFO and net income for the quarter were $0.64 and $0.45 per share, respectively. For the full year 2025, AFFO per share was $20.43, an increase of 3.8% compared to the full year 2024. FFO and net income for 2025 were $20.34, $1.35 per share, respectively. A more detailed description of our quarterly and annual results can be found in our earnings release, and our corporate profile contains additional information regarding Getty's earnings and dividend per share growth over the last several years.

Speaker #3: RJ good morning everybody Yesterday we reported AFFO per share of $0.63 for Q4 2025 , an increase of 5% over Q4 2020 for FFO and net income for the quarter were $0.64 and $0.45 per share , respectively .

Speaker #3: For the full year , 2020 . Five , AFFO per share was $2.43 , an increase of 3.8% compared to the full year 2024 FFO and net income for 2025 were $2.34 and one dollars $0.35 per share , respectively .

Brian Dickman: A more detailed description of our quarterly and annual results can be found in our earnings release, and our corporate profile contains additional information regarding Getty's earnings and dividend per share growth over the last several years.

Speaker #3: In more detailed description of our quarterly and annual results can be found in our earnings release and our corporate profile contains additional information regarding these earnings and dividend per share growth over the last several years , starting with some color on G&A expenses .

Brian Dickman: Starting with some color on G&A expenses, management focuses on the ratio of G&A, excluding stock-based compensation and non-recurring retirement costs, to cash rental and interest income. That ratio was 9.5% for the full year 2025, a 10 basis point improvement over 2024. Both the year and fourth quarter included elevated legal and professional fees, both transaction-related and other, that we generally consider non-recurring. Absent those charges, we would have achieved a more significant reduction in this ratio. In 2026, we expect G&A growth to be less than 2% and for our G&A ratio to fall below 9% as we focus on controlling expenses and continuing to scale the company.

Speaker #3: Management focuses on the ratio of G&A , excluding stock based compensation and non-recurring retirement costs to cash rental and interest income . That ratio was 9.5% for the full year 2025 and ten basis point improvement over 2024 , both the year and fourth quarter included elevated legal and professional fees , both transaction related and other that we generally consider non-recurring .

Brian Dickman: Both the year and fourth quarter included elevated legal and professional fees, both transaction-related and other, that we generally consider non-recurring. Absent those charges, we would have achieved a more significant reduction in this ratio. In 2026, we expect G&A growth to be less than 2% and for our G&A ratio to fall below 9% as we focus on controlling expenses and continuing to scale the company.

Speaker #3: Absent those charges , we would have achieved the more significant reduction in this ratio in 2026 . We expect G&A growth to be less than 2% .

Speaker #3: And for our G&A ratio to fall below 9% as we focus on controlling expenses and continuing to scale , the company , moving to the balance sheet and liquidity .

Brian Dickman: Moving to the balance sheet and liquidity, as of December 31, net debt to EBITDA was 5.1 times or 4.8 times, including unsettled forward equity. Both metrics well within our target leverage range of 4.5 to 5.5 times. Fixed charge coverage for the period was 3.8 times. During Q4, as previously announced, we closed on $250 million of new unsecured notes. Those notes funded in January, and we used the proceeds to repay borrowings under our $450 million revolving credit facility.

Speaker #3: As of December 31st , net debt to EBITDA was 5.1 times , or 4.8 times , including unsettled forward equity . Both metrics well within our target leverage range of four and a half to five and a half times fixed charge coverage for the period was 3.8 times during the fourth quarter .

Speaker #3: As previously announced , we closed on $250 million of new unsecured notes . Those notes , funded in January , and we use the proceeds to repay borrowings under $450 million revolving credit facility .

Speaker #3: Pro forma for the nose transaction . We have a $1 billion of senior unsecured notes outstanding with a weighted average interest rate of 4.5% and a weighted average maturity of 6.2 years .

Brian Dickman: Pro forma for the notes transaction, we have $1 billion of senior unsecured notes outstanding, with a weighted average interest rate of 4.5% and a weighted average maturity of 6.2 years, as well as full borrowing capacity under our revolver. We have no debt maturities until 2028. Turning to equity capital markets, during Q4, we settled approximately 2.1 million shares of common stock for net proceeds of approximately $59.1 million and entered into new forward sale agreement to sell approximately 400,000 shares for anticipated gross proceeds of approximately $12.7 million. As of December 31, we had approximately 2.1 million shares of common stock subject to outstanding forward sale agreements, which, upon settlement, are anticipated to raise gross proceeds of approximately $62.6 million.

Speaker #3: As well as full borrowing capacity under our revolver , we have no debt maturities until 2028 . Turning to equity capital markets during the fourth quarter , we settled approximately 2.1 million shares of common stock for net proceeds of approximately $59.1 million and entered into new forward sale agreements to sell approximately 400,000 shares for anticipated gross proceeds of approximately $12.7 million .

Speaker #3: As of December 31st , we had approximately 2.1 million shares of common stock , subject to outstanding forward sale agreements , which , upon settlement are anticipated to raise gross proceeds of approximately $62.6 million .

Brian Dickman: As of December 31, we had approximately 2.1 million shares of common stock subject to outstanding forward sale agreements, which, upon settlement, are anticipated to raise gross proceeds of approximately $62.6 million.

Speaker #3: We continue to be in a strong capital position and pro forma for the notes transaction have more than $500 million of total liquidity , including unsettled forward equity availability on our revolver and cash on the balance sheet .

Brian Dickman: We continue to be in a strong capital position, and pro forma for the notes transaction, have more than $500 million of total liquidity, including unsettled forward equity, availability on our revolver, and cash on the balance sheet. We have sufficient capital to fund our committed investment pipeline, plus incremental investment activity as we look forward to 2026. With respect to guidance, we are reaffirming the AFFO per share range of $2.48 to $2.50 that we introduced earlier this year. As a reminder, our guidance reflects the current run rate from our in-place portfolio with certain expense and credit loss variability, and does not include prospective investment or capital activities.

Speaker #3: We have sufficient capital to fund our committed investment pipeline , plus incremental investment activity . As we look forward to 2026 with respect to guidance , we are reaffirming the per share range of $2.48 to $2.50 that we introduced earlier this year .

Brian Dickman: With respect to guidance, we are reaffirming the AFFO per share range of $2.48 to $2.50 that we introduced earlier this year. As a reminder, our guidance reflects the current run rate from our in-place portfolio with certain expense and credit loss variability, and does not include prospective investment or capital activities.

Speaker #3: As a reminder , our guidance reflects the current run rate from our in-place portfolio with certain expense and credit loss variability , and does not include prospective investment or capital activities .

Speaker #3: We think this approach remains appropriate for our business , but note that historically , over the last five years , we have averaged more than $200 million of annual investments and added approximately 250 basis points of AFFO per share growth .

Brian Dickman: We think this approach remains appropriate for our business, but note that historically, over the last five years, we have averaged more than $200 million of annual investments and added approximately 250 basis points of AFFO per share growth beyond the midpoint of our initial guidance range. Pages 8 and 10 of our corporate profile highlight our earnings results and investment activity over the last several years, and page 22 illustrates the difference between our actual results and our initial guidance since 2021. We look forward to updating the market on the positive impact that our investment program has on our earnings as we move through the year. With that, I'll ask the operator to open the call for questions.

Speaker #3: Beyond the midpoint of our initial guidance range . Pages eight and ten . In our corporate profile highlight our earnings results and investment activity over the last several years .

Brian Dickman: Pages 8 and 10 of our corporate profile highlight our earnings results and investment activity over the last several years, and page 22 illustrates the difference between our actual results and our initial guidance since 2021. We look forward to updating the market on the positive impact that our investment program has on our earnings as we move through the year. With that, I'll ask the operator to open the call for questions.

Speaker #3: And page 22 illustrates the difference between our actual results and our initial guidance . Since 2021 . We look forward to updating the market on the positive impact that our investment program has on our earnings .

Speaker #3: As we move through the year With that , I'll ask the operator to open the call for questions .

Speaker #4: Thank you . We will now conduct a question and answer session . If you would like to ask a question , please press star one on your telephone keypad A confirmation tone will indicate your line is in the question queue .

Operator: Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one at this time. One moment while we poll for the first question. The first question comes from Upal Rana with KeyBanc Capital Markets. Please proceed.

Speaker #4: You may press star two to remove your question from the queue . For participants using speaker equipment , there may be necessary to pick up your handset before pressing the star keys .

Speaker #4: Once again , that's star one at this time . One moment while we poll for the first question , the first question comes from Upapurana with KeyBanc Capital Markets .

Speaker #4: Please proceed .

Speaker #5: Great . Thank you . Could you go into provide a little more detail on the $100 million investment pipeline mentioned in the release ?

Upal Rana: Great, thank you. Could you go into, provide a little more detail on the $100 million investment pipeline mentioned in the release? Any types of assets or any timing there on funding that you can provide?

Speaker #5: Any types of assets or any timing there on funding that you can provide

Speaker #3: Yeah . Hey , it's Brian , happy to do so . About 80% of that if you're looking at property types , about 80% of that is auto service .

Brian Dickman: Yeah. Hey, Upal, it's Brian. Happy to do so. About 80% of that, if you're looking at property types, about 80% of that is auto service, both collision centers and oil change locations, followed by C&G, drive-throughs, and car wash in that order, making up the remaining 20%. And then from a transaction type perspective, about 80% of that is development funding. That's sort of the long end of that deployment range that we put out. And the balance is regular way acquisitions that are more in the, you know, call it 60-day, you know, 60- to 90-day type time frame from a closing perspective.

Speaker #3: Both collision centers and oil change locations followed by CNG drive thrus and car wash in that order , making up the remaining 20% .

Speaker #3: And then from a transaction type perspective , about 80% of that is development funding . That's sort of the long end of that deployment range that we put out .

Speaker #3: And the balance is regularly acquisitions that are more in the , you know , call it 60 day . You know , 60 , 90 day type timeframe from a closing perspective

Speaker #5: Okay , great . That was helpful . And given the improved share price and cost of capital relative to last year , do you think you could do more investment volume this year ?

Upal Rana: Okay, great. That was helpful. Given the improved share price and cost of capital relative to last year, do you think you can do more investment volume this year relative to last year?

Speaker #5: Relative . Last year

Christopher Constant: Well, what I'll just say is I think we're off to a great start, right? Obviously, it's a couple of weeks into the year. To have $100 million under contract is great for Getty. We're really enthused by the pipeline we have behind that, right? That's in various stages of negotiation and underwriting. I think we're already north of 25% of our last year's underwriting volume sitting here today in early February. Certainly the improved cost of capital is helpful when looking at investments and looking at our available opportunities in the capital markets. So, I think I would say we're off to a great start. We're optimistic.

Speaker #2: Well , well , I'll just say is I think we're off to a great start , right . Obviously it's a couple of weeks into the year to have $100 million under contract .

Speaker #2: It is great for getting we're really enthused by the pipeline . We have behind that . Right . That's in various stages of negotiation , underwriting .

Christopher Constant: I think we're already north of 25% of our last year's underwriting volume sitting here today in early February. Certainly the improved cost of capital is helpful when looking at investments and looking at our available opportunities in the capital markets. So, I think I would say we're off to a great start. We're optimistic.

Speaker #2: I think we're already north of 25% of our last year's underwriting volume . Sitting here today , in early February , certainly the improved cost of capital is helpful when looking at investments and looking at our available opportunities in capital markets .

Speaker #2: So I think I would say we're off to a great start . We're optimistic and I think the team done a great job all around in bringing great opportunities in for us to evaluate , and we look forward to adding a lot of that to our company as we move through the year

Christopher Constant: And I think the team's done a great job all around in bringing great opportunities in for us to evaluate, and we look forward to adding a lot of that to our company as we move through the year.

Speaker #5: Great . Thank you

Upal Rana: Great. Thank you.

Speaker #4: The next question comes from Mitch Germain with citizens . Please proceed

Operator: The next question comes from Mitch Germain with Citizens. Please proceed.

Speaker #5: Thank you . Just the cadence of that 100 million . The way to think about it , it's mostly kind of just going to hit on a , you know , a little bit each quarter .

Mitch Germain: Thank you. Just the guidance of that $100 million, the way to think about it, it's mostly kind of just going to hit on, you know, a little bit each quarter. Is that the way to think about it?

Speaker #5: Is that the way to think about it ?

Speaker #3: Yeah . Hey , Mitch . Brian , that's that's what I was just alluding to . Again , I think you have , you know , call it 20% of that .

Brian Dickman: ... Yeah. Hey, Mitch, it's Brian. That's, that's what I was just alluding to. Again, I think you have, you know, call it, you know, 20% of that, that is regular way acquisitions that you're call it, average 60 days, so kind of 30-90 days. That, that's the, the front end of that deployment range, kind of the 3-month area. You know, development funding gets deployed over time. We expect the majority of that to be deployed over the next 12 months. The cadence is really dictated more by the tenants, their development schedules when they submit for reimbursement. But assume that that gets deployed throughout the year, which should give you a little bit more visibility. But, you know, candidly, we, we don't always have that until the reimbursement requests start coming in.

Speaker #3: That is regular way acquisitions that you're on average 60 days . So kind of 30 , 90 days . That's the front end of that deployment range .

Speaker #3: Kind of the three-month area development funding gets deployed over time. We expect the majority of that to be deployed over the next 12 months.

Brian Dickman: You know, development funding gets deployed over time. We expect the majority of that to be deployed over the next 12 months. The cadence is really dictated more by the tenants, their development schedules when they submit for reimbursement. But assume that that gets deployed throughout the year, which should give you a little bit more visibility. But, you know, candidly, we, we don't always have that until the reimbursement requests start coming in.

Speaker #3: The cadence is really dictated more by the tenants . There . Development schedules when they submit for reimbursement . But assume that that gets deployed throughout the year , which gives you a little bit more visibility .

Speaker #3: But candidly , we don't always have that until the reimbursement requests start coming in . And then I would just add and maybe to reiterate or reemphasize what Chris said , you know , that's simply what we have under contract , right ?

Brian Dickman: And then I would just add, and maybe to reiterate or reemphasize what Chris said, you know, that's simply what we have under contract, right? There's a fairly sizable pipeline behind that. As we've seen in past years, there are deals that, from a public disclosure standpoint, never make it into our pipeline, so to speak. Now and Forever was a great example. You know, when we initially reported, you know, that deal wasn't under contract, and it closed before we reported the next quarter. So, I say that just to, you know, highlight again, that that's what's under contract today. That's the timing that we're looking at with respect to deployment for the $100 million. But there's quite a bit of deal activity behind that.

Speaker #3: There's a fairly sizable pipeline behind that , as we've seen in past years . There are deals that from a public disclosure standpoint , never make it into our pipeline , so to speak .

Speaker #3: Now and forever was a great example . You know , when we when we initially reported that deal wasn't under contract and it closed before we reported the next quarter .

Brian Dickman: Now and Forever was a great example. You know, when we initially reported, you know, that deal wasn't under contract, and it closed before we reported the next quarter. So, I say that just to, you know, highlight again, that that's what's under contract today. That's the timing that we're looking at with respect to deployment for the $100 million. But there's quite a bit of deal activity behind that. You know, that's certainly some of which we would expect to hit this year as well.

Speaker #3: So I say that just to , you know , highlight again that that's what's under contract today . That's the timing that we're looking at with respect to deployment for the 100 million .

Speaker #3: But there's quite a bit of deal activity behind that . That's certainly some of which we would expect to hit this year as well .

Brian Dickman: You know, that's certainly some of which we would expect to hit this year as well.

Speaker #5: Great . And then to point , obviously , Chris mentioned , how about 25% of that ? I'll call it $7 billion that you underwrote last year has already been kind of under consideration .

Michael Gorman: Great. And then to that point, obviously, Chris mentioned how about 25% of that, I'll call it $7 billion that you underwrote last year, has already been kind of under consideration. I'm curious, you know, Chris, what do you think is driving that increased emphasis to potentially sell here?

Mitch Germain: Great. And then to that point, obviously, Chris mentioned how about 25% of that, I'll call it $7 billion that you underwrote last year, has already been kind of under consideration. I'm curious, you know, Chris, what do you think is driving that increased emphasis to potentially sell here?

Speaker #5: I'm curious, you know, Chris, what do you think is driving that increased emphasis to potentially sell here?

Speaker #3: Yeah . Hey , Mark . So

Christopher Constant: Yeah. Hey, it's Mark. So, like-

Mark Olear: Yeah. Hey, it's Mark. So, like-

Speaker #2: A lot of things right now , you know , the team continues to do a great job sourcing opportunities both with with new potential tenants and and managing relationships with our existing tenant base .

Michael Gorman: Mark.

Mitch Germain: Mark.

Christopher Constant: A lot of things right now. You know, the team continues to do a great job sourcing opportunities, both with new potential tenants and managing relationships with our existing tenant base. We continue to talk about diversity across all of the asset classes that we trade in. So we, you know, we introduced a bigger buy box a few years ago, and we're seeing the momentum and the results of that. You know, the ability for us to both transact at the different ranges of the cap rates that are out there in the market, you know, allow us to source opportunities. You know, we're sensing, Chris used the word, you know, an optimistic tone around the market. The buyer pool seems more active coming out of the year.

Mark Olear: A lot of things right now. You know, the team continues to do a great job sourcing opportunities, both with new potential tenants and managing relationships with our existing tenant base. We continue to talk about diversity across all of the asset classes that we trade in. So we, you know, we introduced a bigger buy box a few years ago, and we're seeing the momentum and the results of that.

Speaker #2: We continue to talk about diversity across all of the asset classes that we trade in. So, we, you know, we introduced a bigger buy box a few years ago.

Speaker #2: And we're seeing the momentum in the results of that . You know , the the ability for us to both transact at the at at the different ranges of the cap rates that are out there in the market , you know , allow us to source opportunities .

Mark Olear: You know, the ability for us to both transact at the different ranges of the cap rates that are out there in the market, you know, allow us to source opportunities. You know, we're sensing, Chris used the word, you know, an optimistic tone around the market. The buyer pool seems more active coming out of the year.

Speaker #2: You know , we're sensing Chris used the word , you know , optimistic tone around the market . The buyer pool seems more active coming out of the year .

Speaker #2: I'm sorry. The seller pool seems more active coming out of the year, so it's a combination of a lot of things.

Christopher Constant: I'm sorry, the seller pool seems more active coming out of the year. So it's a combination of a lot of things. So it's just, you know, more, more of the same around the efforts to develop business, across all our asset classes and across the geographies, and with repeat tenants, you know, repeat business with our existing tenants, I should say, so.

Speaker #2: So it's just you know more more of the same around the efforts to develop business across all our asset classes and across the geographies .

Speaker #2: And with repeat tenants , you know , repeat business with our existing tenants , I should say . So .

Speaker #5: Great . Last one for me , Arco price and IPO last night . You know , should we think about this as a potential credit enhancing event

Michael Gorman: Great. Last one from me. ARCO priced an IPO last night. You know, is this-- should we think about this as a potential credit-enhancing event?

Mitch Germain: Great. Last one from me. ARCO priced an IPO last night. You know, is this-- should we think about this as a potential credit-enhancing event?

Speaker #3: Yeah . You know , so in .

Christopher Constant: Yeah. You know, so in conversations with them, and I think their one of the primary motivations was allowing investors to see both pieces of their business independently, right? The retail assets and the wholesale business. Yeah, the use of proceeds as stated was to pay down debt. So as a landlord, we certainly appreciate that. I do think that's a credit enhancement. Gives folks more visibility into the various pieces of their business. What I've said before is... I'll just say again, ARCO's been a tenant of ours for almost 20 years at this point. You know, fantastic operator. He's got a defined strategy that he's working through. We've got 5 leases with him that we can see site-level information on, and we're comfortable with how all those leases are performing.

Speaker #2: Conversations with them, and I think one of the primary motivations was allowing investors to see both pieces of their business independently. Right.

Speaker #2: The retail assets and the wholesale business , you know , the use of proceeds estate was to pay down debt . So as a landlord , we certainly appreciate that .

Speaker #2: I do think that's a credit enhancement gives folks more visibility into the various pieces of their business . What I've said before is I'll just say again , Arco has been a ton of hours since , for almost 20 years .

Christopher Constant: I do think that's a credit enhancement. Gives folks more visibility into the various pieces of their business. What I've said before is... I'll just say again, ARCO's been a tenant of ours for almost 20 years at this point. You know, fantastic operator. He's got a defined strategy that he's working through. We've got 5 leases with him that we can see site-level information on, and we're comfortable with how all those leases are performing.

Speaker #2: At this point , you know , fantastic . Operator . He's got a defined strategy that he's working through . We've got five leases with him that we can see site level information on , and we're comfortable with , with how all those leases are performing .

Speaker #2: So I'm thrilled for Ari that he got his deal done . And , you know , certainly , you know , I think from an investment standpoint , if you're focused on maybe the fuel side or on the retail side , it does give you the ability to to see those businesses and how each one operates independently .

Christopher Constant: I'm thrilled for Ari that he got his deal done, and, you know, certainly, you know, I think from an investment standpoint, or if you're focused on maybe the fuel side or on the retail side, it does give you the ability to see those businesses and how each one operates, independently.

Speaker #5: Great . Good luck . In 26 . And Mark , wishing you the best .

Michael Gorman: Great. Good luck in 2026, and Mark, wishing you the best.

Mitch Germain: Great. Good luck in 2026, and Mark, wishing you the best.

Speaker #3: Thank you .

Christopher Constant: Thank you.

Speaker #4: The next question comes from Jana Galan with Bank of America . Please proceed .

Brian Dickman: The next question comes from Jana Golan with Bank of America. Please proceed.

Operator: The next question comes from Jana Golan with Bank of America. Please proceed.

Speaker #6: Thank you . Good morning Brian , just following up on your comments on the exclusion of prospective investment activity in the initial guide , I wanted to clarify if the current guide includes kind of the the 9 million of additional acquisitions , subsequent to quarter end and then how much of that 100 million pipeline is in the current initial guidance ?

Jana Galan: Thank you. Good morning. Brian, just following up on your comments on the exclusion of prospective investment activity in the initial guide, I wanted to clarify if the current guide includes kind of the $9 million of additional acquisitions subsequent to quarter end, and then how much of that $100 million pipeline is in the current initial guidance?

Speaker #3: Yeah , the 8.7 million is in there . So it's a point in time , you know , run , run rate . Excuse me .

Brian Dickman: Yeah. The $8.7 million is in there, so it's a point in time, you know, run rate, excuse me, usually as the date of the release or the day before. So that's in there. And then by definition or by approach, as it currently stands, none of the $100 million would be in that guidance number.

Speaker #3: Usually as the day of the release or the day before . So that's in there . And then by by definition or by approach as it currently none of the 100 million would be in that guidance number .

Speaker #6: Thank you . And then maybe for Chris , as you kind of balance portfolio diversification with kind of maintaining your niche and expertise , you know , what do you think now at 30% of ABR from non convenience and gas is the right balance or are you looking to increase from there .

Jana Galan: Thank you. And then maybe for Chris, as you kind of balance portfolio diversification with kind of maintaining your, your niche and expertise, you know, how do you think now with 30% of ABR from non-convenience and gas is the right balance, or are you looking to increase from there?

Speaker #2: Well, what I'd say is, you know, Mark mentioned that now 30% of our rent comes from non-convenience and gas asset classes.

Christopher Constant: Well, what I'd say is, you know, Mark mentioned that now 30% of our rent comes from non-convenience and gas asset classes, and that's basically over the last 6 years at this point, or 5.5 years. During that time period, we've made significant investments in the C-store sector, including Now and Forever, and there were some larger deals that we did in 2024, in the C-store sector. So, we still like all the sectors. I think what you're seeing, though, is on balance, the underwriting has gone from maybe 4 billion to almost 7 billion as we develop relationships in these other verticals, which do take some time, right? Given how we like to transact with portfolio sale-leasebacks.

Speaker #2: And that's basically over the last six years at this point, or five and a half years. During that time period, we've made significant investments in the C-store sector, including now and forever.

Christopher Constant: During that time period, we've made significant investments in the C-store sector, including Now and Forever, and there were some larger deals that we did in 2024, in the C-store sector. So, we still like all the sectors. I think what you're seeing, though, is on balance, the underwriting has gone from maybe 4 billion to almost 7 billion as we develop relationships in these other verticals, which do take some time, right? Given how we like to transact with portfolio sale-leasebacks.

Speaker #2: And there are some larger deals that we did in 2024 . In the C-store sector . So we still like all the sectors .

Speaker #2: I think what you're seeing , though , is on balance , as the underwriting has gone from maybe 4 billion , almost 7 billion , as we develop relationships in these other verticals , which do take some time , right ?

Speaker #2: Given how we like to transact with portfolio sale leaseback , like you're starting to see the strategy really take off , whether it's the QSR work we did this year , you know , we had done a lot in the car wash business .

Christopher Constant: Like, you're starting to see the strategy really take off, whether it's the QSR work we did this year, you know, we've done a lot in the car wash business. So, we don't have any defined limits or category limits within those asset classes, but I think you can expect to see the business become more diversified just naturally, as we develop relationships, have more resources focused on not only C&G, but some of the other verticals. So I think we're really happy with how the business has expanded and become more diversified and got larger. But there's no hard targets in any asset class, to answer your question specifically.

Speaker #2: So, we don't have any defined limits or category limits within those asset classes. But I think you can expect to see the business become more diversified.

Speaker #2: Just naturally as we develop relationships , have more resources focused on not only CNG , but some of the other verticals . So I think we're really happy with how the business is expanded and become more diversified and got larger .

Christopher Constant: So I think we're really happy with how the business has expanded and become more diversified and got larger. But there's no hard targets in any asset class, to answer your question specifically.

Speaker #2: But there's no hard targets in any asset class. To answer your question specifically,

Speaker #6: Thank you

Rachel Smith: Thank you.

Jana Galan: Thank you.

Speaker #4: The next question comes from Alex with Baird . Please proceed .

Operator: The next question comes from Alex Fijen with Baird. Please proceed.

Speaker #5: Hey , thanks for taking the question

Rachel Smith: Hey, thanks for taking the question. First for me, can you speak about the dip in coverage? Was that just with the redevelopments and new developments coming in, or is there anything else?

Alec Feygin: Hey, thanks for taking the question. First for me, can you speak about the dip in coverage? Was that just with the redevelopments and new developments coming in, or is there anything else?

Speaker #7: First for me . Can you speak about the dip in coverage ? Was that just with the redevelopments and new developments coming in , or is there anything else ?

Speaker #7: Yeah .

Christopher Constant: Yeah. So about 70% of that, of our coverage number that we report is from convenience stores, right? Just given the fact that some of our newer activity, right, hasn't made its way into the calculation yet. The dip was really a rounding issue right around the 2.5 number, right? To go down from 2.6 to 2.5. Behind that, what rolled off was Q3 of 2024, which was a historically high fuel margin quarter for the C-store sector. I think margins within our portfolio were approaching $0.50 a gallon. They're still over $0.40, which is still a fantastic number, but not at that historic level. So that's why you saw that. There's nothing behind that. Car washes were stable, other asset classes were stable.

Speaker #2: So about 70% of that of our coverage number that we report is from convenience stores . Right . Just given the fact that some of our newer activity , right , hasn't made its way into the calculation yet , the dip was really a rounding issue , right around the two and a half number , right to go down from two 6 to 2 five behind that .

Christopher Constant: Behind that, what rolled off was Q3 of 2024, which was a historically high fuel margin quarter for the C-store sector. I think margins within our portfolio were approaching $0.50 a gallon. They're still over $0.40, which is still a fantastic number, but not at that historic level. So that's why you saw that. There's nothing behind that. Car washes were stable, other asset classes were stable.

Speaker #2: What rolled off was the third quarter of 2024 , which was a historically high fuel margin quarter for the C-store sector . I think margins within our portfolio were approaching $0.50 a gallon .

Speaker #2: They're still over 40, which is still a fantastic number, but not at that historic level. So that's why you saw that there's nothing behind that.

Speaker #2: Car washes were stable . Our other asset classes were stable . Performance inside of source is still great , but you're just seeing margins .

Christopher Constant: Performance inside C-store is still great, but you're just seeing margins maybe come back off of that historic high, which was the quarter that dropped off.

Speaker #2: Maybe come back off of that historic high which was which was the quarter that dropped off .

Speaker #7: Okay . Yeah , that makes sense . And then can you speak maybe on overall tenant health . And if you're seeing a broadening of demand for development opportunities , either by tenant or category

Rachel Smith: Okay. Yeah, that makes sense. And then can you speak maybe on overall tenant health and if you're seeing a broadening of demand for development opportunities, either by tenant or category?

Alec Feygin: Okay. Yeah, that makes sense. And then can you speak maybe on overall tenant health and if you're seeing a broadening of demand for development opportunities, either by tenant or category?

Christopher Constant: I mean, I think generally with a portfolio that's 99.7% occupied, with full rent collections, the coverage we just talked about, we feel good about the health of the portfolio. Your second question is around development opportunities, and I think this goes a little bit to the transaction market as well. We've got healthy tenants that are operating, growing, and consolidating sectors. And as tenants are more willing to transact, one of the avenues for transacting is new store development, and that's why we created the development funding program. You know, the large deal that's sitting out there in auto service, which is a development funding deal, is a perfect illustration of that, right?

Speaker #2: I mean , I think generally with our portfolio , that's 99.7% occupied at full rent collections . The coverage we just talked about , we feel good about the health of the portfolio .

Speaker #2: Your second question is around development opportunities. And I think this goes a little bit to the transaction market as well. We've got healthy tenants that are operating and growing and consolidating sectors.

Christopher Constant: We've got healthy tenants that are operating, growing, and consolidating sectors. And as tenants are more willing to transact, one of the avenues for transacting is new store development, and that's why we created the development funding program. You know, the large deal that's sitting out there in auto service, which is a development funding deal, is a perfect illustration of that, right?

Speaker #2: And as tenants are are more willing to transact . One of the avenues for transacting is new store development . And that's why we created the development funding program .

Speaker #2: You know , the large deal that's sitting out there on auto service , which is a development funding deal , is a perfect illustration of that .

Speaker #2: Right ? That's the deal that was done last year . And a lot of that funding will be done . Excuse me . Funded in 2026 .

Christopher Constant: That's a deal that was done last year, and a lot of that funding will be done, excuse me, funded in 2026. And there's others that are like that, just at different levels of volume. So, we're—for the sectors we like, for tenants that we like, Getty's happy to perform sale-leasebacks, we're happy to fund developments, and if there are certain transactions that have a combination of both of those products, that's great for us as well.

Speaker #2: And there's others that are like that just at different levels . Of volume . So we're for the sectors we like for tenants that we like get is happy to perform .

Speaker #2: So at we're happy to fund developments . And if there are certain transactions that have a combination of both of those products , that's great for us as well

Rachel Smith: Mm-hmm. Well, thank you. That's it for me.

Alec Feygin: Mm-hmm. Well, thank you. That's it for me.

Speaker #7: Well , thank you . That's it for me

Speaker #4: Once again , ladies and gentlemen , to ask a question , please press Star One on your telephone keypad . The next question comes from Michael Goldsmith with UBS .

Operator: Once again, ladies and gentlemen, to ask a question, please press star one on your telephone keypad. The next question comes from Michael Goldsmith with UBS. Please proceed.

Speaker #4: Please proceed

Speaker #8: Yeah . Justin , on for Michael . Thanks for taking the question . Maybe just two quick ones for me . We've seen other net lease rates increase exposure to C stores .

Michael Goldsmith: Yeah, Justin, I'm Michael. Thanks for taking the question. Maybe just 2 quick ones for me. We, we've seen other net lease REITs increase exposure to C stores. Do you expect your cap rates of 7.9% to hold firm? And then secondly, Getty sold 7 properties in Q4. Can you provide some color as to why these were candidates to be disposed of? Thanks.

Speaker #8: Do you expect your cap rates of 7.9% to hold firm . And then secondly , Getty sold seven properties in four Q can you provide some color as to why these were candidates to be disposed of ?

Speaker #8: Thanks .

Speaker #2: Yeah , I'll take the first one , which is the the competitive landscape . Right . And we've been in the sector for a long time in the C-store .

Christopher Constant: Yeah. I'll take the first one, which is the competitive landscape, right? And we've been in this sector for a long time in the C store. The other REITs that you're referring to that are investing in C stores have either been buying them for a long time, right, and we've been competing against them, and continuing to add attractive properties to our balance sheet, or they're newer entrants, and the sector itself has grown. So I feel very comfortable about the way Getty transacts and our ability to source, close investments at accretive spreads for us. The competition is not a new dynamic in this asset class, whether it's just the way people are referring to C stores or just talking about it on their phone calls.

Speaker #2: The other streets that you're referring to that are investing in C stores , either been buying them for a long time . Right .

Speaker #2: And we've been competing against them . And continuing to add attractive properties to our balance sheet or they're they're newer entrants in the sector itself has grown .

Christopher Constant: So I feel very comfortable about the way Getty transacts and our ability to source, close investments at accretive spreads for us. The competition is not a new dynamic in this asset class, whether it's just the way people are referring to C stores or just talking about it on their phone calls.

Speaker #2: So I feel very comfortable about the way Getty Transacts on our ability to source . Close investments at accretive spreads for us , the competition is not a new dynamic in this asset class , whether it's just the way people are referring to C stores or just talking about it on their phone calls , I don't want to comment too much on them .

Christopher Constant: I don't want to comment too much on that. Do you want to take the dispo?

Speaker #2: If you want to take the distill . Yeah , I'll take this .

Rachel Smith: I'm sorry.

Operator: I'm sorry.

Christopher Constant: The dispo?

Rachel Smith: Yeah, well, Brian, do you want to take the dispo?

Operator: Yeah, well, Brian, do you want to take the dispo?

Speaker #3: Yeah , I would just say quickly on the dispose , it's like I said , it was seven properties . You know , we're always evaluating the portfolio for different opportunities .

Christopher Constant: Sure.

Brian Dickman: Yeah, I would just say quickly on the dispositions, it's Brian, like you said, it was 7 properties. You know, we're always evaluating the portfolio for different opportunities. Three or four of those actually went back to existing tenants. That happens periodically, where we'll sell assets to a tenant. Sometimes it's a CapEx dynamic in terms of who wants to ultimately invest in those properties. In this case, it's a very small portfolio, but it was a very low, like, low single-digit cap rate. Just the way that operator valued the portfolio, it was opportunistic for us. And then the others were just, you know, an asset here and there that for, you know, tactical reasons or otherwise, we just thought it made sense to dispose of.

Speaker #3: 3 or 4 of those actually went back to existing tenants . That happens periodically where we'll sell assets to a tenant . Sometimes it's a CapEx dynamic in terms of who wants to ultimately invest in those properties .

Brian Dickman: Sometimes it's a CapEx dynamic in terms of who wants to ultimately invest in those properties. In this case, it's a very small portfolio, but it was a very low, like, low single-digit cap rate. Just the way that operator valued the portfolio, it was opportunistic for us. And then the others were just, you know, an asset here and there that for, you know, tactical reasons or otherwise, we just thought it made sense to dispose of.

Speaker #3: In this case , it's a very small portfolio , but it was a very low , low single digit cap rate . Just the way that operator valued the portfolio .

Speaker #3: It was opportunistic for us . And then the others were just , you know , an asset here and there that for tactical reasons or otherwise , we just thought it made sense to dispose of .

Speaker #3: So no , I wouldn't say there's any universal trends or anything that drove it . Just a , an opportunistic deal . And a couple of tactical dispositions

Brian Dickman: So no, I wouldn't say there's any universal trends or anything that drove it, just an opportunistic deal and a couple of tactical dispositions.

Speaker #8: Great . Thank you

Rachel Smith: ... Great. Thank you.

Operator: ... Great. Thank you.

Operator: Thank you. At this time, there are no further questions in queue. I would like to turn the call back to management for closing.

Speaker #4: Thank you . At this time , there are no further questions in queue . I would like to turn the call back to management for closing .

Speaker #2: Excellent . Thank you . Operator . And thank you all for joining us for our fourth quarter and year end 2025 call . We look forward to getting back on with everybody in April when we report the first quarter of 2026 .

Christopher Constant: Excellent. Thank you, operator, and thank you all for joining us for our Q4 and year-end 2025 call. We look forward to getting back on with everybody in April when we report the Q1 of 2026.

Operator: Thank you, ladies and gentlemen. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

Q4 2025 Getty Realty Corp Earnings Call

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