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JERICHO, N.Y. -- Getty Realty Corp. has entered into an agreement with GPM Investments LLC to triple net lease to them all 36 former DB Mart convenience store and retail service station properties in Connecticut and Rhode Island that Getty will be acquiring this week from DB Cos. Inc.
Getty announced the acquisition on Sept. 8. The triple net lease has an initial term of 15 years and provides three renewal terms of five years each.
It is estimated that the acquisition and triple net lease transaction will be accretive to Getty's annual earnings, funds from operations and adjusted funds from operations in the amount of approximately 4 cents, 6 cents and 6 cents per share of common stock, respectively.
GPM Investments currently has a network of more than 200 company-operated convenience stores and independent dealers in the Mid-Atlantic States. GPM sites are branded Fas Mart and Shore Stop and GPM is one of Valero's largest gasoline distributors.
Leo Liebowitz, chairman and CEO of Getty, said, "We are pleased to lease these quality locations to Fas Mart, a leader in the convenience store industry."
In other company news, Getty Realty Corp.'s third-quarter profit rose 5 percent despite lower sales, according to the Associated Press.
The real estate investment trust earned $10 million, up from $9.5 million a year ago. Fund from operations -- a key measure for real estate trusts -- rose to $11.5 million, up from $11.2 million last year.
Revenue fell 2 percent to $16.7 million from $17.2 million. However, rental property expenses and environmental expenses both decreased.