Getty Realty Corp. Q1 FY2026 earnings call

Christopher Constant led off by highlighting Getty's strong start in 2026 with growth in annualized base rent, ASFO per share, and increased full - year guidance. RJ Ryan discussed the portfolio and investment activities, including lease portfolio details and quarterly investment highlights. Brian Dickman provided information on financial results, stating AFFO per share was 63 cents, a 6.8% increase over Q1 2025. He also mentioned G&A expense ratio improvement, balance sheet strength with over $625 million of total liquidity, new bond issuance, and equity raise, and updated 2026 ASFO per share guidance to a range of $2.50 to $2.52 from prior range.

In the first quarter of 2026, Getty saw a 13.1% year - over - year increase in annualized base rent and a 6.8% increase in ASFO per share, with full - year 2026 earnings guidance increased. At quarter end, the lease portfolio included 1,186 net lease properties and two active redevelopment sites. Excluding active redevelopments, occupancy was 99.7% and weighted average lease term was 10.1 years. 61% of annualized base rent came from top 50 MSAs and 77% from top 100 MSAs. Tenant rent coverage ratio was 2.5 times. For the quarter, $30.3 million was invested across 29 properties with an initial cash yield of 8%. Year - to - date, total investments were $34.4 million at an 8% initial cash yield. There was approximately $125 million of investments under contract and a significant pipeline of investments under signed letters of intent with initial cash yields in the mid to high 7% area.

Getty is increasing its full - year 2026 AFO per share guidance to a range of $2.50 to $2.52 from the prior range of $2.48 to $2.50. The guidance reflects the current run rate from the in - place portfolio with certain expense and credit loss variability and does not include any prospective investments or capital markets activities.

Certain statements during the call are forward - looking and subject to trends, events, and uncertainties that could cause actual results to differ materially from those described. Refer to the company's annual report on Form 10 - K for the year ended December 31, 2025, and subsequent SEC filings for a more detailed discussion of risks and other factors that could cause actual results to differ materially from forward - looking statements.

Q: Mitch Germain of Citizens Bank asked about what's driving the increased momentum in the investment pipeline, if Getty is becoming more selective with sectors, and about scalability of the platform.

A: Chris Constant said it's a mix of more dealmakers, growing portfolio relationships, consolidation in sectors, and attractive sales spec market. Getty is focused investors but equally excited about the four sectors it invests in. Brian Dickman mentioned work on technology and process improvement contributing to platform scalability.

Q: Upal Rana of KeyBank Capital Markets asked about larger portfolio deals in the pipeline and use of capital.

A: Chris Constant said the pipeline has a mix of mid - size to larger portfolios with sale expect financing needed. Brian Dickman said the strategy is to maintain leverage in 4.5 to 5.5 times range, draw on revolver and settle equity, and capital raising depends on pipeline, pricing, and stock trading.

Q: Michael Goldsmith of UBS asked about bad debt in the portfolio and impact of 7 - Eleven store closures.

A: Brian Dickman said bad debt assumption is 25 basis points and portfolio is healthy with no concerns. Chris Constant and RJ Ryan discussed 7 - Eleven's store closures as part of industry evolution and Getty's investment strategy alignment.

Q: Brad Heffern of RBC Capital Markets asked about impact of war on gas prices on tenants and what drove the guidance increase.

A: Brad Heffern was told tenants' fuel margins are healthy and guidance increase is due to combination of actual performance against forecast, investment activity, and rounding.

Q: Wes Goloday of Baird asked about cap rates and G&A for full year.

A: Brian Dickman said cap rates are due to mix of transactions and pipeline, and cash G&A is expected to be around $20 million.

Q: Jenna Gallant of Bank of America asked about breakdown of $125 million pipeline and development timeline.

A: RJ Ryan said the pipeline is tilted towards development funding with a three to 12 - month time horizon.

Q: Michael Gorman of BTIG asked about tenant trends in rent coverage.

A: Brian Dickman said there's no specific thing to point out, with very consistent results quarter over quarter across property types with some normal flipping around breakpoints