Getty Realty Lifts 2026 AFFO Floor After Heavy Buying

The Tip Desk · October 27, 2026 · 3 min read

The net-lease REIT raised its 2026 AFFO range to $2.53–$2.54 a share after investing $297.4 million in 68 properties at a 6.9% initial cash yield.

Getty Realty Corp. (GTY) raised its 2026 adjusted funds from operations outlook to $2.53 to $2.54 a diluted share from $2.52 to $2.54 after a large third-quarter buying program and a 5.0% year-to-date increase in AFFO per share.

The net-lease REIT focused on convenience and automotive retail real estate invested $297.4 million across 68 properties at a 6.9% initial cash yield in the quarter ended September 30, 2026, versus $128.3 million across 42 properties at a 7.4% yield in the second quarter. The third-quarter program included $286.0 million for 53 properties — 42 convenience stores, nine auto service centers and two drive-thru quick-service restaurants — and $11.3 million of incremental development funding. Subsequent to quarter end it invested another $46.3 million at a 7.6% initial cash yield, bringing year-to-date investment to $502.3 million at a 7.2% initial cash yield.

President and Chief Executive Officer Christopher J. Constant said the recently announced $261 million Refuel transaction was a milestone and that the company continues to invest and expand tenant relationships across its target convenience and automotive retail sectors. He said the portfolio’s durability and the balance sheet position the company as it reassesses the investment pipeline and takes a disciplined approach to capital allocation in the current market environment.

Base rental income growth accelerated to 13.8% in the third quarter, reaching $59.3 million, after 13.2% growth in the second quarter and 12.5% in the first. The company said the increase was driven by incremental revenue from recently acquired properties and contractual rent increases on in-place leases, partially offset by property dispositions. Revenues from rental properties were $62.3 million.

Diluted AFFO was $0.64 a share, up from $0.62 in the second quarter. FFO was $0.61 a share. Net earnings were $0.40 a share.

The company sold eight properties in the quarter for $11.6 million of gross proceeds and recorded a $3.4 million gain. General and administrative expenses were $8.3 million, which the company attributed to non-recurring costs related to the departure of former executive officers and higher professional fees. Environmental expenses were $320 thousand, versus a $3.4 million credit a year earlier, which the company said reflected changes in environmental estimates including removal of previously accrued unknown reserve liabilities.

As of September 30, 2026, the portfolio included 1,269 freestanding properties in 46 states and Washington, D.C. Total indebtedness was $1.2 billion, including $1.0 billion of senior unsecured notes at a 4.5% weighted average rate and $200.0 million drawn on a $450.0 million revolver.

Subsequent to quarter end the company added a $200.0 million senior unsecured term loan maturing October 16, 2028 at an effective 5.03% rate, used proceeds to repay revolver borrowings, and removed a 10-basis-point SOFR credit-spread adjustment on the revolver. It also elected ratings-based pricing on the term loan and revolver after receiving one investment-grade rating.

During the quarter the company settled about 5.1 million forward-sale shares for about $164.6 million of net proceeds and entered new forwards for about 0.8 million shares, or $28.0 million of anticipated gross proceeds. About 1.5 million shares remained subject to forwards for about $51.8 million of anticipated gross proceeds.

As of October 21, 2026, the committed investment pipeline was more than $75 million for 29 convenience and automotive retail properties, down from more than $95.0 million for 30 properties as of July 22. The company said it has fully executed agreements for each transaction, with timing dependent on counterparties completing development and certain business acquisitions. The 2026 AFFO outlook includes completed transaction activity as of the release date but not prospective acquisitions, dispositions or capital-markets activities, including settlement of outstanding forwards.