Getty Realty Corp Takeaways From Call With Management

Research evidence excerpt

Getty Realty Corp Takeaways From Call With Management

y $95 mm of Q2E 0.46 0.36

investments under contract, with the majority consisting of development funding Q3E 0.47 0.38

opportunities in the auto-services sector that are expected to generate cash yields Q4E 0.45 0.38

in the high-7% range. The company noted, however, that several additional 12/26E 1.83 1.57

transactions under negotiation are more traditional sale-leaseback deals and have 12/27E 1.97 1.61

not yet been added to the pipeline. As a result, the current weighting toward 12/28E 2.04 1.69

development funding could moderate by the end of 3Q'26 as more sale-leaseback

Michael Goldsmith

opportunities are brought under contract. We believe the combination of a visible

Analyst

near-term pipeline and an active acquisition funnel supports continued investment michael.goldsmith@ubs.com

volume and earnings growth through the balance of the year. +1-212-713 2951

Ample capital availability is creating cap-rate stability. The company believes Ami Probandt

cap-rate trends will remain a key focus through the balance of 2026 given the Analyst

current interest-rate backdrop. Despite higher rates, GTY indicated that cap rates ami.probandt@ubs.com

+1-212-713 2078

have remained largely stable year-to-date, which it attributes to abundant capital

and increased competition for net lease assets. We believe the persistence of Anna O'Neil

stable cap rates reinforces the importance of GTY's improved cost of capital, as Associate Analyst

competitive positioning is likely to remain a key differentiator in sourcing accretive anna.oneil@ubs.com

+1-212-713 4386

investments.

Car wash fundamentals remain healthy despite isolated coverage

pressure. GTY noted that the 70 bps sequential increase in the sub-1.0x rent