Getty Realty (NYSE:GTY) reported first-quarter 2026 results showing year-over-year growth in key operating metrics and raised its full-year adjusted funds from operations (AFFO) guidance, citing contributions from recent investment activity, stable portfolio performance, and expense control.
First-quarter performance and portfolio trends
Chief Executive Officer Christopher Constant said the company is “off to a strong start in 2026,” highlighted by a 13.1% year-over-year increase in annualized base rent and a 6.8% increase in AFFO per share. Constant added that the company’s in-place portfolio is “essentially fully occupied,” achieved 100% rent collections, and continues to demonstrate “stable rent coverage,” even amid “volatility driven by current geopolitical events.”
Ryan reported a trailing 12-month tenant rent coverage ratio of 2.5x. During the Q&A, Chief Financial Officer Brian R. Dickman said the rent coverage data has a three-month lag and was measured through Dec. 31, 2025. He added that quarter-to-quarter movement in coverage “buckets” can reflect tenants moving around breakpoints rather than broad changes, and that results were “very similar, very consistent, very stable” across property types.
Investment activity and pipeline
Management pointed to continued acquisition and development activity. Constant said Getty invested more than $34 million year to date at an initial cash yield of 8%. Ryan provided additional detail, saying the company invested $30.3 million during the quarter across 29 properties at an initial cash yield of 8%, with a weighted average lease term of 8.8 years on acquired assets.
Ryan said quarterly investments included:
- Acquiring 22 properties for $27.3 million, including 16 auto service centers and six drive-thru quick service restaurants
- $3 million of incremental development funding for construction of multiple new auto service centers and drive-thru quick service restaurants
Subsequent to quarter end, Ryan said the company invested an additional $4.1 million, bringing year-to-date investments to $34.4 million at an 8% initial cash yield.
Looking forward, Constant said Getty has approximately $125 million of investments under contract and a pipeline of additional transactions under signed non-binding letters of intent. Ryan said the under-contract transactions are spread across the company’s four convenience and automotive retail sectors, and are “predominantly relationship sale-leasebacks and development funding opportunities” with new 15- to 20-year lease terms, with initial cash yields “in the mid- to high-7% area.”
Asked about the composition of the $125 million pipeline, Ryan said it is “tilted towards the development funding,” which he described as generally having a “three to 12-month time horizon.” He added that Getty has also added “more traditional sale-leaseback” transactions to the pipeline, but it remains skewed toward development funding.
Leasing and asset management activity
Ryan said Getty extended five unitary leases totaling $11.3 million of annualized base rent, representing about 5% of total ABR, during the first quarter. He said the lease extensions increased the company’s weighted average lease term and significantly reduced ABR expiring in 2027. Ryan also noted the company sold two properties during the quarter for gross proceeds of $3.7 million.
Balance sheet, liquidity, and expense outlook
Dickman reported first-quarter AFFO per share of $0.63, with FFO of $0.69 per share and net income of $0.43 per share. On expenses, he said the ratio of G&A (excluding stock-based compensation and non-recurring retirement costs) to cash rental and interest income was 9.2% for the quarter, a 130 basis point improvement versus the same period in 2025. Dickman reiterated expectations that G&A growth will be less than 2% in 2026 and that the G&A ratio will fall below 9% as the company scales.
On leverage and liquidity, Dickman said net debt to EBITDA was 5.1x, or 4.2x when including the impact of unsettled forward equity, both within the company’s target leverage range of 4.5x to 5.5x. Fixed charge coverage for the quarter was 4x.
Dickman said the company received $250 million from a previously announced unsecured notes issuance during the quarter and used the proceeds to repay borrowings under its revolving credit facility. Getty ended the quarter with $1 billion of total unsecured notes outstanding, with a weighted average interest rate of 4.5% and a weighted average maturity of six years. He added that the company has full borrowing capacity under its $450 million revolver and no debt maturities until June 2028.
In February, Dickman said Getty raised $130 million of new common equity in an overnight offering sold on a forward basis. He said the company has 5.5 million shares subject to outstanding forward sales agreements, which upon settlement are anticipated to raise gross proceeds of approximately $171.5 million. Constant added that Getty has more than $170 million of unsettled forward equity and the revolver remains undrawn. Dickman said Getty has more than $625 million of total liquidity and expects to fund its pipeline and additional investments while maintaining its leverage framework.
Guidance raised; credit remains stable
Dickman said Getty increased full-year 2026 AFFO per share guidance to a range of $2.50 to $2.52 from $2.48 to $2.50. He emphasized that guidance reflects the current run rate from the in-place portfolio and includes certain expense and credit loss variability, but “does not include any prospective investments or capital markets activities.”
Asked what drove the increase, Dickman cited the impact of investment activity and operating performance relative to forecasts, including “no credit loss in the first quarter” and expenses that “came in at or below budget.”
On credit trends, Dickman said the company assumes about 25 basis points for credit loss in guidance, but did not experience any credit loss in the first quarter. He said the portfolio is “quite healthy,” with “nothing that rises to a level of a watch list,” adding that tenants continue to perform despite “geopolitical and macro noise.”
In discussion of industry trends, Constant addressed recent store closure announcements by 7‑Eleven, noting the chain is a tenant but “not in our top 20.” He described the shift toward larger, more complex convenience store formats with a greater emphasis on food and beverage as a long-running industry trend. Ryan added that 7‑Eleven also announced planned reopenings or new stores in a larger format, calling it reflective of broader evolution in the sector and Getty’s investment strategy.
Asked about the potential impact of war-related volatility and fuel prices on tenants, Constant said the company entered the period with retail fuel prices below $3 per gallon nationally and average fuel margins “north of $0.40” to “maybe $0.45.” He said national data indicates most of the increase has been passed through to retail pricing, and margins remain above $0.40 nationally.
Constant said Getty expects to remain active across its targeted sectors and expressed confidence it can deploy capital accretively. The company plans to report second-quarter results in July, Constant said in closing remarks.
About Getty Realty (NYSE:GTY)
Getty Realty Corp is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and leasing of service station and convenience retail properties. The company’s portfolio consists primarily of fee-simple and ground-leased sites, which are leased to major national and regional fuel and convenience store operators under long-term, triple-net leases. This structure provides Getty Realty with a stable stream of contractual rental income and limited operational responsibilities.
Founded in 1981, Getty Realty became a publicly listed company in 2005 and trades on the New York Stock Exchange under the ticker symbol GTY.
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