Getty Realty Officially Moves On From GPMI
JERICHO, N.Y. — Getty Realty Corp. received a final $10.8-million payout from the estate of Getty Petroleum Marketing Inc. (GPMI) and is looking ahead to “significantly enhancing its portfolio” over the next year, Getty Realty CEO Christopher J. Constant said Thursday during the real estate investment trust’s (REIT) 2015 fiscal fourth-quarter earnings call.
“Payments from the marketing estate are now fully behind us and we will look forward to the future,” Constant said on the call.
GPMI, formerly lessee of 799 Getty Realty convenience stores and gas stations, declared bankruptcy on Dec. 4, 2011, as CSNews Online previously reported. It later reached a settlement on July 17, 2013 whereby it had to pay its creditors $93 million. Getty Realty, one of GPMI’s largest creditors, received proceeds up until 2015’s fourth quarter.
This payout helped Getty Realty achieve a net profit of $19.9 million for its fourth quarter ended Dec. 31, vs. the loss of $3.1 million it posted in 2014’s fourth quarter. Revenues improved by $4.4 million year over year, to $29.8 million
ACQUISITION ENVIRONMENT
Moving forward, Getty Realty plans to make solid acquisitions in the convenience store and gas station sector, while shedding its lesser-performing locations.
In the fourth quarter, the company shed 12 locations for $2.9 million combined. These locations were either in unjustified markets or would require additional capital investment, company executives explained.
Getty Realty acquired just one store in the fourth quarter for $900,000, but Constant on Thursday touted the acquisition the REIT made in last year’s second quarter when it purchased 77 convenience stores and gas stations in California, Colorado, Washington, Nevada and Oregon from Pacific Convenience and Fuels LLC for $214 million.
The chief executive noted Getty Realty continues to see “quality opportunities” in the convenience store and gas station space, but added the REIT will remain disciplined and not acquire assets simply for the sake of making an acquisition.
When questioned by a Wall Street analyst on the current state of the acquisition market, Constant said the environment is “as competitive or more competitive” as it was a couple of years ago, as more companies have entered the arena seeking assets.
As of Dec. 31, Jericho-based Getty Realty owned and leased 851 properties, 805 of which are considered core net-lease properties. The other 46 are classified as “transitional properties,” a portion of which could be sold, according to Constant.