Getty Realty Corp.

What they do

Getty Realty owns and leases single-tenant retail properties, primarily convenience stores, express tunnel car washes, automotive service centers, and drive-thru quick service restaurants. As of June 30, 2026, its portfolio included 1,224 properties in 46 states and Washington, D.C., of which 1,220 were leased to tenants under triple-net leases. Tenants generally operate under national and regional brands and are responsible for taxes, maintenance, repairs, insurance and environmental contamination during their lease terms.

Revenue drivers

• Rental income from triple-net leases — The dominant revenue source: base rental income was $56.6 million in Q2 2026 and $112.4 million for the first half of 2026, reflecting contractual rent escalations and acquisitions.
• Tenant reimbursement income — A small line item at $1.1 million in Q2 2026 and $2.2 million for the first half of 2026, representing recoveries from tenants under lease terms.
• Interest income on notes and mortgages receivable — Getty provides purchase money financing on some transactions, generating interest income, though no dollar figure was provided in the excerpt.

Recent performance

For Q2 2026, net earnings were $22.6 million, or $0.36 per share, up from $14.0 million, or $0.24 per share, in Q2 2025. FFO per share was $0.59 and AFFO per share was $0.62, representing 5% year-over-year growth in AFFO per share. Rental income grew 13.2% to $56.6 million in Q2 2026 versus $50.0 million a year earlier, driven by acquisitions and contractual rent increases, partly offset by dispositions. Year-to-date revenue for the first half of 2026 was $115.9 million, up from $104.4 million in the first half of 2025.

Strategy

Getty Realty's strategy centers on growing and diversifying its portfolio through acquisitions of existing properties and development funding for new-to-industry convenience and automotive retail assets. In 2025, it invested approximately $273.0 million across 28 drive-thru quick service restaurants, 24 convenience stores, 15 automotive service centers, and nine express tunnel car washes, and sold 13 properties for $18.3 million. Capital markets activity in 2025 included settling 4.7 million shares under forward sales agreements for $135.3 million and issuing new senior unsecured notes. Year-to-date 2026 through July 22, the company invested $141.8 million across 42 properties, with a committed pipeline exceeding $95.0 million.

Risks

• Tenant concentration in convenience and automotive — A significant number of tenants depend on the same convenience store and automotive industries for their revenues, so sector downturns could impair rent collections.
• Environmental liabilities — Many properties have historical environmental contamination, and increased costs or liability accruals from environmental laws could adversely affect the business.
• Geographic concentration — A material portion of properties are concentrated in certain states, and adverse regional conditions could negatively impact operations.
• Tenant credit and lease renewal risk — Future cash flow depends on tenant performance, lease renewals and the ability to re-lease or sell properties, and it may be difficult for investors to assess tenant creditworthiness.

Outlook

Management raised its 2026 full-year earnings guidance and stated that recent acquisitions, a robust investment pipeline, and a healthy capital position have the company well positioned for the second half of 2026. The committed pipeline of more than $95.0 million for development and/or acquisition of 30 convenience and automotive retail properties supports expected continued growth.