Getty Realty Remains Committed to Fuel Assets
JERICHO, N.Y. -- Getty Realty Corp. will remain focused on acquiring convenience store and fuel-related assets, but the company could change its plans as the industry changes, President and CEO David B. Driscoll said during this morning's 2013 fiscal third-quarter earnings call.
"If quick-service restaurants become active in fuel, we would look at those sites," he said in response to an analyst’s question as to whether the company would expand beyond acquiring convenience store and fuel assets.
One thing the real estate investment trust (REIT) will never do is acquire any property that doesn’t have a fuel component. "Fuel is a big thing for us," Driscoll said during the call. "There are not many companies in this area. We can be very successful there [moving forward]."
As for its third-quarter 2013 earnings, the REIT achieved a net profit of $41.9 million, compared to a net loss of $3.5 million in the same period one year ago. Much of the profit improvement was attributed to a $31.7-million payout Getty Realty received from the Lukoil Americas Corp. settlement.
As CSNews Online reported in July, a U.S. bankruptcy court approved a settlement whereby Lukoil paid $93 million to Getty Petroleum Marketing Inc. (GPMI), which accused the oil company of stripping its best gas stations. Nearly $32 million went to Getty Realty, a creditor of GPMI following its 2011 bankruptcy.
"We had a very good quarter," Driscoll reported. "We remain on a consistent course."
At the same time as it continues to eye acquisitions, Getty Realty is also shedding some of its assets. In its third quarter, the REIT sold 17 properties for $27 million. As of Sept. 30, Getty Realty still had 131 properties classified as for sale.
The company also continues to distance itself from GPMI, which formerly leased 799 properties from Getty Realty. However, Getty Realty is still dealing with environmental costs at former GPMI properties, Driscoll concluded.
Jericho, N.Y.-based Getty Realty Corp. owns, leases and finances 990 convenience stores and gas stations nationwide.