Getty Realty Commits $100M Investment Pipeline for C-stores & Car Washes
The real estate investment trust invested roughly $157 million across 52 properties in 2022.
NEW YORK — Getty Realty Corp. wrapped up a busy 2022 with plans in place for an equally busy 2023.
In 2022, the real estate investment trust (REIT) invested approximately $157 million across 52 properties, including approximately $83 million across 36 properties in the fourth quarter. Additionally, as of Dec. 31, Getty had a committed investment pipeline of more than $100 million for the development and acquisition of 28 convenience stores and car wash properties. The company expects to fund this investment activity over roughly the next nine months.
According to Getty, it has fully executed agreements for each transaction, however, "the timing and amount of each investment is ultimately dependent on its counterparties and the schedules under which they are able to complete development projects and certain business acquisitions for which the company is providing sale-leaseback financing."
Among its other portfolio activities:
Getty acquired fee simple interests in 40 properties for approximately $137 million, including 24 properties for approximately $74 million in the fourth quarter.
Acquisitions included 16 car wash properties for $67 million, nine c-stores for $44 million, 14 auto service centers for $23 million and one drive-thru quick-service restaurant for $3 million.
The company advanced construction loans in the amount of $20 million, including accrued interest, for the development of 12 new-to-industry convenience stores and car wash properties, including $9 million advanced in the fourth quarter. As of Dec. 31, Getty Realty had advanced aggregate construction loans in the amount of approximately $26 million, including accrued interest, for the development of these 12 properties which it expects to acquire via sale-leaseback transactions at the end of their construction periods.
Rent commenced on two redevelopment properties, including one property in the fourth quarter which was leased to Murphy USA under a long-term, triple-net lease.
As of Dec. 31, the company had three properties under active redevelopment and others in various stages of feasibility planning for potential recapture from our net lease portfolio.
In addition to acquisition and development activity, Getty Realty sold 24 properties for gross proceeds of approximately $26 million, including five properties for gross proceeds of approximately $13 million in the fourth quarter, according to the company.
"I am proud of Getty's accomplishments in 2022. Despite challenging macroeconomic conditions, and evolving transaction and capital markets, we continued to execute on our core growth and diversification strategies," said President and CEO Christopher J. Constant.
"I am especially pleased with our activity in the fourth quarter, which saw us close on a variety of investments and raise record amounts of equity capital at attractive prices. Looking ahead, we are excited about the strength of our investment pipeline and are pleased that our team continues to source new opportunities to acquire convenience and automotive retail real estate located in major metropolitan markets and leased to growing, institutional quality operators," Constant added.
Getty Realty Corp. is a publicly traded, net-lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single-tenant retail real estate. As of Dec. 31, the New York-based company's portfolio included 1,039 freestanding properties located in 38 states across the United States and Washington, D.C.