Getty Realty Raises Outlook as Investment Volume Quadruples
The company invested $128.3 million across 42 properties during the second quarter.
Getty Realty Corp. (GTY), the net-lease real estate investment trust, reported a 61% increase in second-quarter net earnings and raised its full-year AFFO guidance as base rental-income growth accelerated.
Net earnings rose to $22.6 million, or $0.36 a share, from $0.24 a share a year earlier. Profit declined from $26.6 million, or $0.43 a share, in the first quarter, when Getty recorded a $7.5 million environmental benefit tied to the removal of previously accrued reserve liabilities.
Rental-property revenue increased 11% from a year earlier to $58.6 million and rose 2% sequentially. Base rental income climbed 13.2% to $56.6 million, accelerating from 12.5% growth in each of the previous two quarters.
FFO increased 33% from a year earlier to $37.1 million, or $0.59 a share, while AFFO rose 14% to $38.8 million, or $0.62 a share. Sequentially, FFO fell 13%, while AFFO was nearly flat and AFFO per share slipped from $0.63.
Investment volume more than quadrupled from the first quarter, spanning quick-service restaurants, auto-service centers, express tunnel car washes and a convenience store. The initial cash yield declined to 7.4% from 8.0%, while the committed pipeline contracted to more than $95 million across 30 properties from more than $125 million across 43 properties.
Getty now expects 2026 AFFO of $2.52 to $2.54 per diluted share, raising both ends of its previous range by $0.02.
The company sold four properties for $8.2 million, generating a $4.7 million gain, and entered forward-sale agreements expected to raise $60.6 million. Outstanding forward agreements covering 5.8 million shares are expected to provide about $190.5 million as Getty funds its investment program.