On July 24, 2024, Getty Realty Corp (GTY, Financial) released its 8-K filing announcing its financial results for the second quarter of 2024. Getty Realty Corp is a real estate investment trust (REIT) specializing in the acquisition, financing, and development of convenience, automotive, and other single-tenant retail real estate.
Q2 2024 Financial Highlights
Getty Realty Corp reported net earnings of $0.30 per share, surpassing the analyst estimate of $0.29 per share. The company also reported revenues from rental properties of $48.72 million, slightly below the estimated $48.78 million.
Performance and Challenges
Getty Realty Corp's performance in Q2 2024 was marked by significant investment activity and portfolio growth. The company invested $61.7 million across 23 properties, achieving an 8.1% initial cash yield. Despite the strong performance, the company faces challenges such as managing property costs and environmental expenses, which can impact profitability.
Financial Achievements
Key financial achievements for Getty Realty Corp include:
- Net earnings per share: $0.30
- Funds From Operations (FFO) per share: $0.55
- Adjusted Funds From Operations (AFFO) per share: $0.58
These metrics are crucial for REITs as they provide insights into the company's ability to generate cash flow and sustain dividend payments.
Income Statement Highlights
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |
|---|---|---|
| Net earnings | $16,711 | $33,434 |
| Net earnings per share | $0.30 | $0.59 |
| FFO | $30,454 | $60,065 |
| FFO per share | $0.55 | $1.08 |
| AFFO | $32,198 | $63,601 |
| AFFO per share | $0.58 | $1.15 |
Balance Sheet and Cash Flow
As of June 30, 2024, Getty Realty Corp had total assets of $1.89 billion and total liabilities of $940.8 million. The company maintained a strong balance sheet with $4.7 million in cash and equivalents. The company also raised $7.3 million through its at-the-market (ATM) equity program and entered into new forward sale agreements for anticipated gross proceeds of $11.4 million.
Investment and Development Activities
During Q2 2024, Getty Realty Corp acquired 18 properties and funded the development of five new properties. The company has a committed investment pipeline of over $53 million for the development and acquisition of 25 properties, expected to be funded over the next six months.
Outlook and Guidance
Given the strong year-to-date performance, Getty Realty Corp has increased its 2024 AFFO guidance to a range of $2.30 to $2.32 per diluted share, up from the prior range of $2.29 to $2.31 per diluted share.
We continued to grow and diversify our portfolio of convenience and automotive retail properties by accretively deploying more than $100 million through the first half of the year," stated Christopher J. Constant, Getty’s President & Chief Executive Officer.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Getty Realty Corp for further details.
