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JERICHO, N.Y. — Getty Realty Corp. made steady progress toward repositioning its convenience store and gas station assets in its 2014 fiscal third quarter, CEO David B. Driscoll noted during the company's earnings call Tuesday.
For the quarter ended Sept. 30, the real estate investment trust (REIT) sold 22 properties for $11.8 million. Since Sept. 30, Getty Realty shed an additional 12 properties for $3.6 million. Currently, 46 retail locations are classified as for sale.
Getty Realty is continuing the process of disposing assets that do not meet the long-term growth criteria of the company's core portfolio. This disposition process will go on for the foreseeable future. "Asset repositioning will always be something we do with a portfolio as big as ours," said Driscoll.
Jericho-based Getty Realty now owns and leases 875 properties nationwide.
Despite shedding non-core assets, the REIT is also simultaneously searching for acquisitions that would fit its core portfolio. Driscoll reported that Getty Realty has made some recent offers to purchase properties. In fact, the company made two purchases in its most recent quarter for $4 million.
However, he acknowledged that competition is fierce for many desired assets, so the company must remain disciplined regarding its strategy toward acquisitions.
"We will not put money to work just for the sake of deals," he said. "… Our conservative approach leaves us well positioned for the future."
Overall, Getty Realty earned a net profit of $10.2 million for its fiscal third quarter, compared to net earnings of $41.9 million for the same quarter one year prior. A portion of the REIT's most recent profits was attributed to a benefit it received from a prior settlement of litigation brought forth by Getty Petroleum Marketing Inc. vs. Lukoil Americas Corp.