– Completes $172 Million of Year-to-Date Investment Activity –
– Increases 2026 Full Year Earnings Guidance –
NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Getty Realty Corp. (NYSE: GTY) (“Getty” or the “Company”), a net lease REIT focused on convenience and automotive retail real estate, announced today its financial and operating results for the quarter ended June 30, 2026.
Second Quarter 2026 Highlights
- Net earnings: $0.36 per share
- Funds From Operations (“FFO”): $0.59 per share
- Adjusted Funds From Operations (“AFFO”): $0.62 per share
- Invested $128.3 million across 42 properties at a 7.4% initial cash yield, plus an additional $13.5 million at an 8.2% initial cash yield subsequent to quarter end
- Committed investment pipeline of more than $95.0 million for the development and/or acquisition of 30 convenience and automotive retail properties, as of July 22, 2026
“We are pleased to report another quarter of consistent financial and operating results highlighted by 5% year-over-year growth in AFFO per share, more than $170 million of year-to-date investments in high-quality convenience and automotive retail assets, and an increase to our 2026 earnings guidance,” stated Christopher J. Constant, Getty’s President & Chief Executive Officer. ”Our recently completed acquisitions, robust investment pipeline, and healthy capital position have us well positioned for the second half of 2026.”
Net Earnings, FFO and AFFO
All per share amounts are presented on a fully diluted per common share basis, unless stated otherwise. FFO and AFFO are “Non-GAAP Financial Measures” which are defined and reconciled to net earnings at the end of this release.
($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net earnings $22,585 $14,014 $49,214 $28,800 Net earnings per share $0.36 $0.24 $0.79 $0.49 FFO $37,085 $27,828 $79,774 $59,496 FFO per share $0.59 $0.49 $1.28 $1.04 AFFO $38,848 $33,967 $77,829 $67,763 AFFO per share $0.62 $0.59 $1.25 $1.19
Select Financial Results
Revenues from Rental Properties
($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Rental income (a) $57,418 $51,309 $113,704 $101,907 Tenant reimbursement income 1,136 1,415 2,240 2,523 Revenues from rental properties $58,554 $52,724 $115,944 $104,430(a) Rental income includes base rental income, additional rental income, if any, and certain non-cash revenue recognition adjustments.
For the quarter ended June 30, 2026, base rental income grew 13.2% to $56.6 million, as compared to $50.0 million for the same period in 2025. For the six months ended June 30, 2026, base rental income grew 12.9% to $112.4 million, as compared to $99.6 million for the same period in 2025.
The growth in base rental income was driven by incremental revenue from recently acquired properties and contractual rent increases for in-place leases, partially offset by property dispositions.
Interest (Income) on Notes and Mortgages Receivable
($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Interest on notes and mortgages receivable $497 $533 $951 $1,157
The change in interest earned on notes and mortgages receivable in both periods was due to a net decrease in average notes and mortgages receivable outstanding as compared to the prior year.
Property Costs
($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Property operating expenses $1,869 $2,286 $3,639 $4,110 Leasing and redevelopment expenses 151 157 392 315 Property costs $2,020 $2,443 $4,031 $4,425
The improvement in property operating expenses in both periods was due to a reduction in rent expense, as well as lower reimbursable and non-reimbursable expenses. The change in leasing and redevelopment expenses for the six months ended June 30, 2026 was primarily due to demolition costs for redevelopment projects.
Other Expenses
($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Environmental expenses $337 $5,341 $(7,209) $5,457 General and administrative expenses 7,297 6,794 16,353 13,720 Impairments 2,461 455 3,977 1,624
The change in environmental expenses in both periods was driven by a decrease in environmental litigation accruals. The change in environmental expenses for the six months ended June 30, 2026 also included the removal of unknown reserve liabilities which had previously been accrued for certain properties. Environmental expenses vary from period to period and, accordingly, undue reliance should not be placed on the magnitude or the direction of changes in reported environmental expenses for any one period, or a comparison to prior periods.
The change in general and administrative expenses in both periods was driven by increases in employee-related expenses and professional fees. The change in general and administrative expenses for the six months ended June 30, 2026 included non-recurring costs related to the retirement of our former Chief Operating Officer.
Impairment charges result from (i) the accumulation of asset retirement costs at certain properties due to changes in estimated environmental liabilities, which increases the carrying values of these properties in excess of their fair values, and (ii) decreases in the carrying value of certain properties based on third-party indications of potential selling prices or reductions in estimated undiscounted cash flows expected to be received during the assumed holding period.
Portfolio Activities
Acquisitions and Development Funding
During the quarter ended June 30, 2026, the Company invested $128.3 million at a 7.4% initial cash yield, including:
- The acquisition of 35 properties for $117.7 million, including 14 drive-thru quick service restaurants, 14 auto service centers, six express tunnel car washes, and one convenience store.
- Incremental development funding of $10.6 million for the construction of new-to-industry auto service centers, drive-thru quick service restaurants, and convenience stores. As of June 30, 2026, the Company had advanced aggregate funding of $19.3 million for the development of new-to-industry properties that are either owned by the Company and under construction by its tenants, or which the Company expects to acquire via sale-leaseback transactions at the end of the respective construction periods.
Subsequent to quarter end, the Company invested $13.5 million at an 8.2% initial cash yield, and, year-to-date, has invested a total of $172.1 million at a 7.6% initial cash yield.
Investment Pipeline
As of July 22, 2026, the Company had a committed investment pipeline of more than $95.0 million for the development and/or acquisition of 30 convenience and automotive retail properties. While the Company has fully executed agreements for each transaction, the timing and amount of each investment is 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.
Redevelopments
During the quarter ended June 30, 2026, rent commenced on a redevelopment property located in the New York metro area and leased to a Take 5 Oil Change franchisee under a long term, triple net lease.
As of June 30, 2026, the Company had signed leases for four redevelopment projects, including one site under construction and three sites pending recapture from its net lease portfolio. Other potential projects are in various stages of feasibility planning.
Lease Extensions
During the quarter ended June 30, 2026, the Company extended the term for one unitary lease totaling $2.9 million of ABR, or 1.3% of total ABR as June 30, 2026, by ten years to December 31, 2039.
Dispositions
During the quarter ended June 30, 2026, the Company sold four properties for gross proceeds of $8.2 million and recorded a gain of $4.7 million on the dispositions. During the six months ended June 30, 2026, the Company sold six properties for gross proceeds of $11.9 million and recorded a gain of $6.5 million on the dispositions.
Balance Sheet and Capital Markets
As of June 30, 2026, the Company had approximately $1.1 billion of total indebtedness, including (i) $1.0 billion of senior unsecured notes with a weighted average interest rate of 4.6% and a weighted average maturity of 5.5 years, and (ii) $73.0 million outstanding on the Company’s $450.0 million unsecured revolving credit facility (the “Revolver”).
Equity Capital Markets
During the quarter ended June 30, 2026, the Company settled approximately 1.5 million shares of common stock subject to outstanding forward sale agreements for net proceeds of approximately $39.8 million, and entered into new forward sale agreements to sell approximately 1.8 million shares of common stock for anticipated gross proceeds of $60.6 million.
As of June 30, 2026, the Company had a total of approximately 5.8 million shares of common stock subject to outstanding forward sales agreements which, upon settlement, are anticipated to raise gross proceeds of approximately $190.5 million.
2026 Guidance
The Company is increasing its 2026 AFFO guidance to a range of $2.52 to $2.54 per diluted share from the prior range of $2.50 to $2.52 per diluted share. The Company’s outlook includes completed transaction activity as of the date of this release, but does not include prospective acquisitions, dispositions, or capital markets activities (including the settlement of outstanding forward sale agreements).
The guidance is based on current assumptions and is subject to risks and uncertainties more fully described in this press release and the Company’s periodic reports filed with the SEC.
AFFO per share is a non-GAAP financial measure. The Company does not provide a reconciliation of such forward-looking non-GAAP measure to the most directly comparable GAAP financial measure because doing so would require unreasonable efforts due to the nature of the adjustments, which rely on assumptions and estimates that are subject to significant change throughout the year, necessary to calculate the non-GAAP measure.
Webcast Information
Getty Realty Corp. will host a conference call and webcast on Thursday, July 23 2026, at 8:30 a.m. EST. To participate in the call, please dial 1-877-423-9813, or 1-201-689-8573 for international participants, ten minutes before the scheduled start. Participants may also access the call via live webcast by visiting the investors section of the Company's website at ir.gettyrealty.com.
If you cannot participate in the live event, a replay will be available on Thursday, July 23, 2026, beginning at 11:30 a.m. EST through 11:59 p.m. EST, Thursday, August 6, 2026. To access the replay, please dial 1-844-512-2921, or 1-412-317-6671 for international participants, and reference pass code 13760863.
About Getty Realty Corp.
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 June 30, 2026, the Company’s portfolio included 1,224 freestanding properties located in 46 states across the United States and Washington, D.C.
Non-GAAP Financial Measures
In addition to measurements defined by accounting principles generally accepted in the United States of America (“GAAP”), the Company also focuses on Funds From Operations (“FFO”) and Adjusted Funds From Operations (“AFFO”) to measure its performance.
FFO and AFFO are generally considered by analysts and investors to be appropriate supplemental non-GAAP measures of the performance of REITs. FFO and AFFO are not in accordance with, or a substitute for, measures prepared in accordance with GAAP. In addition, FFO and AFFO are not based on any comprehensive set of accounting rules or principles. Neither FFO nor AFFO represent cash generated from operating activities calculated in accordance with GAAP and therefore these measures should not be considered an alternative for GAAP net earnings or as a measure of liquidity. These measures should only be used to evaluate the Company’s performance in conjunction with corresponding GAAP measures.
FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as GAAP net earnings before (i) depreciation and amortization of real estate assets, (ii) gains or losses on dispositions of real estate assets, (iii) impairment charges, and (iv) the cumulative effect of accounting changes.
The Company defines AFFO as FFO excluding (i) certain revenue recognition adjustments (defined below), (ii) certain environmental adjustments (defined below), (iii) stock-based compensation, (iv) amortization of debt issuance costs and (v) other non-cash and/or unusual items that are not reflective of the Company’s core operating performance.
Other REITs may use definitions of FFO and/or AFFO that are different than the Company’s and, accordingly, may not be comparable.
The Company believes that FFO and AFFO are helpful to analysts and investors in measuring the Company’s performance because both FFO and AFFO exclude various items included in GAAP net earnings that do not relate to, or are not indicative of, the core operating performance of the Company’s portfolio. Specifically, FFO excludes items such as depreciation and amortization of real estate assets, gains or losses on dispositions of real estate assets, and impairment charges. With respect to AFFO, the Company further excludes the impact of (i) deferred rental revenue (straight-line rent), the net amortization of above-market and below-market leases, adjustments recorded for the recognition of rental income from direct financing leases, and the amortization of deferred lease incentives (collectively, “Revenue Recognition Adjustments”), (ii) environmental accretion expenses, environmental litigation accruals, insurance reimbursements, legal settlements and judgments, and changes in environmental remediation estimates (collectively, “Environmental Adjustments”), (iii) stock-based compensation expense, (iv) amortization of debt issuance costs and (v) other items, which may include allowances for credit losses on notes and mortgages receivable and direct financing leases, losses on extinguishment of debt, retirement and severance costs, and other items that do not impact the Company’s recurring cash flow and which are not indicative of its core operating performance.
The Company pays particular attention to AFFO which it believes provides the most useful depiction of the core operating performance of its portfolio. By providing AFFO, the Company believes it is presenting information that assists analysts and investors in their assessment of the Company’s core operating performance, as well as the sustainability of its core operating performance with the sustainability of the core operating performance of other real estate companies. For a tabular reconciliation of FFO and AFFO to GAAP net earnings, see the table captioned “Reconciliation of Net Earnings to Funds From Operations and Adjusted Funds From Operations” included herein.
Forward-Looking Statements
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. When the words “believes,” “expects,” “plans,” “projects,” “estimates,” “anticipates,” “predicts,” “outlook” and similar expressions are used, they identify forward-looking statements. These forward-looking statements are based on management’s current beliefs and assumptions and information currently available to management and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Examples of forward-looking statements include, but are not limited to, those regarding the company’s 2026 AFFO per share guidance, those made by Mr. Constant, statements regarding the recapture and transfer of certain net lease retail properties, statements regarding the ability to obtain appropriate permits and approvals, and statements regarding AFFO as a measure best representing core operating performance and its utility in comparing the sustainability of the company’s core operating performance with the sustainability of the core operating performance of other REITs.
Information concerning factors that could cause the company’s actual results to differ materially from these forward-looking statements can be found elsewhere from this press release, including, without limitation, those statements in the company’s periodic reports filed with the securities and exchange commission. The company undertakes no obligation to publicly release revisions to these forward-looking statements to reflect future events or circumstances or reflect the occurrence of unanticipated events.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except per share amounts)
June 30, December 31, 2026 2025 ASSETS: Real Estate: Land $1,084,683 $1,050,611 Buildings and improvements 1,220,035 1,141,467 Lease intangible assets 228,269 209,184 Investment in direct financing leases, net 36,195 38,853 Construction in progress 108 73 Real estate held for use 2,569,290 2,440,188 Less accumulated depreciation and amortization (428,593) (405,908)Real estate held for use, net 2,140,697 2,034,280 Real estate held for sale, net 2,517 1,896 Real estate, net 2,143,214 2,036,176 Notes and mortgages receivable 29,361 19,466 Cash and cash equivalents 4,848 8,361 Restricted cash 4,423 4,419 Deferred rent receivable 74,670 70,325 Accounts receivable 3,110 2,366 Right-of-use assets - operating 8,761 10,190 Right-of-use assets - finance 37 60 Prepaid expenses and other assets 22,799 22,005 Total assets $2,291,223 $2,173,368 LIABILITIES AND STOCKHOLDERS’ EQUITY: Credit Facility $73,000 $250,000 Senior Unsecured Notes, net 996,926 748,351 Environmental remediation obligations 8,399 15,928 Dividends payable 30,934 29,828 Lease liability - operating 9,734 11,300 Lease liability - finance 107 174 Accounts payable and accrued liabilities 49,619 45,658 Total liabilities 1,168,719 1,101,239 Commitments and contingencies — — Stockholders’ equity: Preferred stock, $0.01 par value; 20,000,000 authorized; unissued — — Common stock, $0.01 par value; 100,000,000 shares authorized; 61,932,369 and 59,815,921 shares issued and outstanding, respectively 619 598 Accumulated other comprehensive income (loss) — — Additional paid-in capital 1,291,644 1,229,340 Dividends paid in excess of earnings (169,759) (157,809)Total stockholders’ equity 1,122,504 1,072,129 Total liabilities and stockholders’ equity $2,291,223 $2,173,368
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues: Revenues from rental properties $58,554 $52,724 $115,944 $104,430 Interest on notes and mortgages receivable 497 533 951 1,157 Total revenues 59,051 53,257 116,895 105,587 Operating expenses: Property costs 2,020 2,443 4,031 4,425 Impairments 2,461 455 3,977 1,624 Environmental 337 5,341 (7,209) 5,457 General and administrative 7,297 6,794 16,353 13,720 Depreciation and amortization 16,760 14,917 33,033 30,958 Total operating expenses 28,875 29,950 50,185 56,184 Gain on dispositions of real estate 4,721 1,558 6,450 1,886 Operating income 34,897 24,865 73,160 51,289 Other income, net (45) 53 335 147 Interest expense (12,267) (10,904) (24,281) (22,636)Net earnings $22,585 $14,014 $49,214 $28,800 Basic net earnings per common share: $0.36 $0.24 $0.79 $0.49 Diluted net earnings per common share: $0.36 $0.24 $0.79 $0.49 Weighted average common shares outstanding: Basic 60,580 55,530 60,225 55,297 Diluted 60,739 55,606 60,353 55,443
RECONCILIATION OF NET EARNINGS TO
FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net earnings $22,585 $14,014 $49,214 $28,800 Depreciation and amortization of real estate assets 16,760 14,917 33,033 30,958 Gains on dispositions of real estate (4,721) (1,558) (6,450) (1,886)Impairments 2,461 455 3,977 1,624 Funds from operations (FFO) 37,085 27,828 79,774 59,496 Revenue recognition adjustments Deferred rental revenue (straight-line rent) (2,579) (2,401) (4,345) (4,350)Amortization of above and below market leases, net (60) (87) (119) (168)Amortization of investments in direct financing leases 1,363 1,153 2,659 2,246 Amortization of lease incentives 545 206 792 408 Total revenue recognition adjustments (731) (1,129) (1,013) (1,864)Environmental Adjustments Accretion expense 65 67 156 164 Changes in environmental estimates 57 (19) (7,727) (227)Environmental litigation accruals (25) 5,066 (25) 5,066 Insurance reimbursements — — (6) (43)Total environmental adjustments 97 5,114 (7,602) 4,960 Other Adjustments Stock-based compensation expense 1,775 1,790 2,727 3,403 Amortization of debt issuance costs 409 364 799 1,768 Retirement and severance costs 213 — 3,144 — Total other adjustments 2,397 2,154 6,670 5,171 Adjusted Funds from operations (AFFO) $38,848 $33,967 $77,829 $67,763 Basic per share amounts: Net earnings $0.36 $0.24 $0.79 $0.49 FFO (a) 0.59 0.49 1.29 1.04 AFFO (a) 0.62 0.59 1.25 1.19 Diluted per share amounts: Net earnings $0.36 $0.24 $0.79 $0.49 FFO (a) 0.59 0.49 1.28 1.04 AFFO (a) 0.62 0.59 1.25 1.19 Weighted average common shares outstanding: Basic 60,580 55,530 60,225 55,297 Diluted 60,739 55,606 60,353 55,443
(a) Dividends paid and undistributed earnings allocated, if any, to unvested restricted stockholders are deducted from FFO and AFFO for the computation of the per share amounts. The following amounts were deducted: