First Quarter 2026 Highlights
- Net earnings: $0.43 per share
- Funds From Operations (“FFO”): $0.69 per share
- Adjusted Funds From Operations (“AFFO”): $0.63 per share
- Invested $30.3 million across 29 properties at an 8.0% initial cash yield
- Extended leases totaling $11.3 million, or 5.0% of annualized base rent (ABR), and increased the portfolio’s weighted average lease term (WALT) to more than 10.0 years
- Raised gross proceeds of $129.9 million from a follow-on common stock offering in connection with forward sales agreements
- Received gross proceeds of $250.0 million from a previously announced private placement of senior unsecured notes and repaid amounts outstanding under the Company’s revolving credit facility
- Committed investment pipeline of more than $125.0 million for the development and/or acquisition of 43 convenience and automotive retail properties, as of April 22, 2026
“Getty had a productive first quarter highlighted by strong year-over-year earnings growth and an increase to our full year 2026 earnings guidance,” stated Christopher J. Constant, Getty’s President & Chief Executive Officer.”Investment activity in the quarter reflected our efforts to continue diversifying our portfolio and, importantly, our opportunity set is as robust as we’ve seen in several quarters.We also executed multiple strategic lease extensions that reduced near-term lease expiration risk, and completed a well-timed forward equity offering that enhanced our liquidity profile to support our growing investment pipeline.We are very well positioned to execute our 2026 business plan.”
Net Earnings, FFO and AFFO
All per share amounts are presented on a fully diluted per common share basis, unless stated otherwise. FFO and AFFO are “Non-GAAP Financial Measures” which are defined and reconciled to net earnings at the end of this release.
| ($ in thousands) | Three Months Ended March 31, | ||||||
| 2026 | 2025 | ||||||
| Net earnings | $ | 26,629 | $ | 14,786 | |||
| Net earnings per share | $ | 0.43 | $ | 0.25 | |||
| FFO | $ | 42,689 | $ | 31,668 | |||
| FFO per share | $ | 0.69 | $ | 0.56 | |||
| AFFO | $ | 38,981 | $ | 33,797 | |||
| AFFO per share | $ | 0.63 | $ | 0.59 | |||
Select Financial Results
Revenues from Rental Properties
| ($ in thousands) | Three Months Ended March 31, | ||||||
| 2026 | 2025 | ||||||
| Rental income (a) | $ | 56,286 | $ | 50,598 | |||
| Tenant reimbursement income | 1,104 | 1,108 | |||||
| Revenues from rental properties | $ | 57,390 | $ | 51,706 | |||
(a)Rental income includes base rental income, additional rental income, if any, and certain non-cash revenue recognition adjustments.
For the quarter ended March 31, 2026, base rental income grew 12.5% to $55.8 million, as compared to $49.6 million for the same period in 2025.
The growth in base rental income was driven by incremental revenue from recently acquired properties and contractual rent increases for in-place leases, partially offset by property dispositions.
Interest (Income) on Notes and Mortgages Receivable
| ($ in thousands) | Three Months Ended March 31, | ||||||
| 2026 | 2025 | ||||||
| Interest on notes and mortgages receivable | $ | 454 | $ | 624 | |||
The change in interest earned on notes and mortgages receivable was due to a net decrease in average notes and mortgages receivable outstanding as compared to the prior year period.
Property Costs
| ($ in thousands) | Three Months Ended March 31, | ||||||
| 2026 | 2025 | ||||||
| Property operating expenses | $ | 1,770 | $ | 1,824 | |||
| Leasing and redevelopment expenses | 241 | 158 | |||||
| Property costs | $ | 2,011 | $ | 1,982 | |||
The improvement in property operating expenses was primarily due to a reduction in rent expense. The change in leasing and redevelopment expenses was primarily due to professional fees related to leasing activities.
Other Expenses
| ($ in thousands) | Three Months Ended March 31, | ||||||
| 2026 | 2025 | ||||||
| Environmental expenses | $ | (7,546 | ) | $ | 116 | ||
| General and administrative expenses | 9,056 | 6,926 | |||||
| Impairments | 1,516 | 1,169 | |||||
The change in environmental expenses was primarily due to 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 was primarily due to non-recurring costs related to the retirement of our former Chief Operating Officer, partially offset by decreases in stock-based compensation, professional fees, and certain transaction related costs.
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 March 31, 2026, the Company invested $30.3 million at an 8.0% initial cash yield, including:
- The acquisition of 22 properties for $27.3 million, including 16 auto service centers and six drive-thru quick service restaurants.
- Incremental development funding of $3.0 million for the construction of new-to-industry auto service centers and drive-thru quick service restaurants. As of March 31, 2026, the Company had advanced aggregate funding of $10.5 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 $4.1 million, and, year-to-date, has invested a total of $34.4 million at an 8.0% initial cash yield.
Investment Pipeline
As of April 22, 2026, the Company had a committed investment pipeline of more than $125.0 million for the development and/or acquisition of 43 convenience and automotive retail properties. The Company expects to fund the majority of this investment activity, which includes transactions with 10 different tenants, over the next 3-12 months. 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
As of March 31, 2026, the Company had signed leases for four redevelopment projects, including two sites under construction and two sites pending recapture from its net lease portfolio. Other potential projects are in various stages of feasibility planning.
Lease Extensions
As previously announced, during the first quarter, the Company extended the lease terms for five unitary leases totaling $11.3 million of ABR, or 5.0% of total ABR as March 31, 2026. This leasing activity contributed to improvements in the following portfolio metrics as of March 31, 2026:
- The portfolio’s WALT increased to 10.1 years
- ABR expiring in 2027 decreased by more than 70% to 1.6% of total ABR
- Aggregate 2026 and 2027 lease expirations reduced to approximately 2.5% of total ABR
Dispositions
During the quarter ended March 31, 2026, the Company sold two properties for gross proceeds of $3.7 million and recorded a gain of $1.8 million on the dispositions.
Balance Sheet and Capital Markets
As of March 31, 2026, the Company had $1.0 billion of senior unsecured notes outstanding with a weighted average interest rate of 4.5% and a weighted average maturity of 6.0 years, and no amounts outstanding under its $450.0 million unsecured revolving credit facility (the “Revolver”).
Debt Capital Markets
As previously announced, in November 2025, the Company closed the private placement of $250.0 million of senior unsecured notes priced at a fixed rate of 5.76% and which mature on January 22, 2036 (the “2036 Notes”). The 2036 Notes funded in January 2026 and proceeds were used to repay amounts outstanding under the Revolver.
Equity Capital Markets
In February 2026, the Company completed a follow-on public offering of 4.0 million shares of common stock in connection with forward sales agreements. Upon settlement, the offering is anticipated to raise gross proceeds of approximately $129.9 million.
During the quarter ended March 31, 2026, the Company settled 650 thousand shares of common stock for net proceeds of approximately $19.9 million.
As of March 31, 2026, the Company had a total of approximately 5.5 million shares of common stock subject to outstanding forward sales agreements which, upon settlement, are anticipated to raise gross proceeds of approximately $171.5 million.
2026 Guidance
The Company is increasing its 2026 AFFO guidance to a range of $2.50 to $2.52 per diluted share from the prior range of $2.48 to $2.50 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, April 23 2026, at 8:30a.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, April 23, 2026, beginning at 11:30a.m. EST through 11:59p.m. EST, Thursday, May 7, 2026. To access the replay, please dial 1-844-512-2921, or 1-412-317-6671 for international participants, and reference pass code 13759365.
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 March 31, 2026, the Company’s portfolio included 1,191 freestanding properties located in 45 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.
| GETTY REALTY CORP. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| (in thousands, except per share amounts) | |||||||
| March31, | December31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS: | |||||||
| Real Estate: | |||||||
| Land | $ | 1,057,820 | $ | 1,050,611 | |||
| Buildings and improvements | 1,152,392 | 1,141,467 | |||||
| Lease intangible assets | 211,815 | 209,184 | |||||
| Investment in direct financing leases, net | 37,557 | 38,853 | |||||
| Construction in progress | 77 | 73 | |||||
| Real estate held for use | 2,459,661 | 2,440,188 | |||||
| Less accumulated depreciation and amortization | (416,267 | ) | (405,908 | ) | |||
| Real estate held for use, net | 2,043,394 | 2,034,280 | |||||
| Real estate held for sale, net | 608 | 1,896 | |||||
| Real estate, net | 2,044,002 | 2,036,176 | |||||
| Notes and mortgages receivable | 21,164 | 19,466 | |||||
| Cash and cash equivalents | 3,699 | 8,361 | |||||
| Restricted cash | 4,443 | 4,419 | |||||
| Deferred rent receivable | 72,091 | 70,325 | |||||
| Accounts receivable | 2,177 | 2,366 | |||||
| Right-of-use assets – operating | 9,252 | 10,190 | |||||
| Right-of-use assets – finance | 49 | 60 | |||||
| Prepaid expenses and other assets | 22,886 | 22,005 | |||||
| Total assets | $ | 2,179,763 | $ | 2,173,368 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||
| Credit Facility | $ | — | $ | 250,000 | |||
| Senior Unsecured Notes, net | 996,956 | 748,351 | |||||
| Environmental remediation obligations | 8,512 | 15,928 | |||||
| Dividends payable | 30,230 | 29,828 | |||||
| Lease liability – operating | 10,255 | 11,300 | |||||
| Lease liability – finance | 141 | 174 | |||||
| Accounts payable and accrued liabilities | 44,251 | 45,658 | |||||
| Total liabilities | 1,090,345 | 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;60,466,551 and 59,815,921 shares issued and outstanding, respectively | 605 | 598 | |||||
| Accumulated other comprehensive income (loss) | — | — | |||||
| Additional paid-in capital | 1,250,223 | 1,229,340 | |||||
| Dividends paid in excess of earnings | (161,410 | ) | (157,809 | ) | |||
| Total stockholders’ equity | 1,089,418 | 1,072,129 | |||||
| Total liabilities and stockholders’ equity | $ | 2,179,763 | $ | 2,173,368 | |||
| GETTY REALTY CORP. | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (Unaudited) | |||||||
| (in thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues: | |||||||
| Revenues from rental properties | $ | 57,390 | $ | 51,706 | |||
| Interest on notes and mortgages receivable | 454 | 624 | |||||
| Total revenues | 57,844 | 52,330 | |||||
| Operating expenses: | |||||||
| Property costs | 2,011 | 1,982 | |||||
| Impairments | 1,516 | 1,169 | |||||
| Environmental | (7,546 | ) | 116 | ||||
| General and administrative | 9,056 | 6,926 | |||||
| Depreciation and amortization | 16,273 | 16,041 | |||||
| Total operating expenses | 21,310 | 26,234 | |||||
| Gain on dispositions of real estate | 1,729 | 328 | |||||
| Operating income | 38,263 | 26,424 | |||||
| Other income, net | 380 | 94 | |||||
| Interest expense | (12,014 | ) | (11,732 | ) | |||
| Net earnings | $ | 26,629 | $ | 14,786 | |||
| Basic net earnings per common share: | $ | 0.43 | $ | 0.25 | |||
| Diluted net earnings per common share: | $ | 0.43 | $ | 0.25 | |||
| Weighted average common shares outstanding: | |||||||
| Basic | 59,867 | 55,062 | |||||
| Diluted | 59,917 | 55,191 | |||||
| GETTY REALTY CORP. | |||||||
| RECONCILIATION OF NET EARNINGS TO | |||||||
| FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS | |||||||
| (Unaudited) | |||||||
| (in thousands, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net earnings | $ | 26,629 | $ | 14,786 | |||
| Depreciation and amortization of real estate assets | 16,273 | 16,041 | |||||
| Gains on dispositions of real estate | (1,729 | ) | (328 | ) | |||
| Impairments | 1,516 | 1,169 | |||||
| Funds from operations (FFO) | 42,689 | 31,668 | |||||
| Revenue recognition adjustments | |||||||
| Deferred rental revenue (straight-line rent) | (1,766 | ) | (1,949 | ) | |||
| Amortization of above and below market leases, net | (59 | ) | (81 | ) | |||
| Amortization of investments in direct financing leases | 1,296 | 1,093 | |||||
| Amortization of lease incentives | 247 | 202 | |||||
| Total revenue recognition adjustments | (282 | ) | (735 | ) | |||
| Environmental Adjustments | |||||||
| Accretion expense | 91 | 97 | |||||
| Changes in environmental estimates | (7,784 | ) | (208 | ) | |||
| Insurance reimbursements | (6 | ) | (43 | ) | |||
| Legal settlements and judgments | — | — | |||||
| Total environmental adjustments | (7,699 | ) | (154 | ) | |||
| Other Adjustments | |||||||
| Stock-based compensation expense | 952 | 1,613 | |||||
| Amortization of debt issuance costs | 390 | 1,405 | |||||
| Retirement and severance costs | 2,931 | — | |||||
| Total other adjustments | 4,273 | 3,018 | |||||
| Adjusted Funds from operations (AFFO) | $ | 38,981 | $ | 33,797 | |||
| Basic per share amounts: | |||||||
| Net earnings | $ | 0.43 | $ | 0.25 | |||
| FFO (a) | 0.69 | 0.56 | |||||
| AFFO (a) | 0.63 | 0.60 | |||||
| Diluted per share amounts: | |||||||
| Net earnings | $ | 0.43 | $ | 0.25 | |||
| FFO (a) | 0.69 | 0.56 | |||||
| AFFO (a) | 0.63 | 0.59 | |||||
| Weighted average common shares outstanding: | |||||||
| Basic | 59,867 | 55,062 | |||||
| Diluted | 59,917 | 55,191 | |||||
(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:
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| FFO | 1,289 | 944 | |||||
| AFFO | 1,177 | 1,008 | |||||
| Contacts: | Brian Dickman | Investor Relations |
| Chief Financial Officer | (646) 349-0598 | |
| (646) 349-6000 | ir@gettyrealty.com |
