Getty Realty Corp.

Getty reported Q2 2026 AFFO per share of $0.62 and first-half 2026 AFFO per share of $1.25, both up 5.1% and 5%, respectively, versus the prior-year periods. G&A, excluding stock-based compensation and nonrecurring retirement costs, was 9.3% of cash rental and interest income in Q2 and 9.2% for the first half, down 60 and 100 basis points year over year. The quarter-end portfolio had 1,220 net lease properties and 1 active redevelopment site; excluding redevelopment, occupancy was 99.8%, weighted average lease term was 10.3 years, and trailing 12-month rent coverage was 2.5x. Year to date, Getty invested $172.1 million at a 7.6% initial cash yield, and it ended the quarter with about $1.1 billion of total debt, net debt to EBITDA of 5.3x, or 4.3x including unsettled forward equity. Management raised full-year 2026 AFFO per share guidance to $2.52-$2.54 from $2.50-$2.52; the guidance excludes prospective investment or capital activities.

Christopher Constant said Getty continues to differentiate itself through a relationship-driven sale-leaseback platform and a disciplined focus on convenience and automotive retail. He emphasized that the in-place portfolio is durable, essentially fully occupied, long dated, and supported by resilient tenant performance, while the investment platform is producing consistent external growth. His tone was confident and constructive, repeatedly pointing to improving sourcing, a constructive transaction market, and the company’s ability to deploy capital accretively.

Brian Dickman highlighted the quarter’s financial performance, including AFFO per share of $0.62 and the 5.1% year-over-year increase. He said G&A efficiency improved to 9.3% in Q2 and expects full-year G&A growth of less than 2% with the ratio falling below 9%. On the balance sheet, he cited 5.3x net debt to EBITDA, 4.3x including unsettled forward equity, $1 billion of senior unsecured notes at a 4.6% weighted average rate, $73 million drawn on the revolver, no debt maturities until June 2028, and more than $570 million of total liquidity; he also raised full-year AFFO guidance to $2.52-$2.54.

Analysts focused on the rising share of auto service and QSR deals, the lower blended cap rate, the size and usefulness of the investment pipeline, and the company’s use of forward equity. Management said the stronger pace reflects both improved underwriting capabilities and better market access from a lower cost of capital, not just one-off deal flow, and noted that many opportunities now open up that were not viable a year ago. On rent coverage, management said the increase in the sub-1x bucket was tied to a few ramping new-to-industry car washes rather than broader softening, and on credit losses, Brian said there have been no realized credit losses year to date and no formal watch list items.