Getty Realty Reports $1.1M Earnings Drop

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Getty Realty Reports $1.1M Earnings Drop

08/09/2007
JERICHO, N.Y. -- Getty Realty Corp., which owns and leases approximately 1,100 convenience store/gas station properties throughout the United States, reported a decrease in its net earnings for the quarter and six months ended June 30, 2007.

According to its financial results, net earnings for this quarter were $10 million, a decrease of $1.1 million from the $11.1 million for the quarter ended June 30, 2006. Meanwhile, net earnings for the six months ended June 30, 2007 were $20.5 million, also a decrease of $1.1 million from the $21.6 million for the six months ended June 30, 2006.

Net earnings before discontinued operations were $8.9 million for this quarter versus $11.1 million for the quarter a year ago, a decrease of $2.2 million. For the six months ended June 30, 2007, net earnings before discontinued operations were $19.3 million as compared to $21.6 million for the six months the prior year, a decrease of $2.3 million.

Net earnings before discontinued operations for both the quarter and six months ended June 30, 2007 include higher environmental, interest and depreciation and amortization expenses, which were partially offset by additional rental revenues from properties acquired and rent escalations as compared to the respective prior-year periods, according to the financial statement released by Getty Realty Corp.

Leo Liebowitz, chairman of the board and chief executive officer, noted that the company's results for the quarter and six months include the accretive effect of its $84.6 million acquisition of convenience store and gas station properties from various subsidiaries of FF-TSY Holding Co. II LLC, a subsidiary of General Electric Capital Corp., which was substantially completed at the end of the first quarter.

"These properties contributed $2.6 million of revenues from rental properties, which was offset by $0.8 million of depreciation and amortization expense and $1.3 million of interest expense, adding approximately $0.5 million to our bottom line for the quarter and six months ended June 30, 2007," Liebowitz said in a statement.

Revenues from rental properties increased by $2.5 million for both the quarter and the six months ended June 30, 2007 to $20.7 million and $38.7 million, respectively, as compared to $18.2 million and $36.2 million for the respective prior-year periods.

Rent received was $19.2 million for the quarter and $36.8 million for the six months ended June 30, 2007, as compared with $17.4 million for the quarter and $34.6 million for the six months period ended 2006. The increases in rent received were primarily due to rental income from property acquisitions and rent escalations.

Getty Realty Corp. is the largest publicly-traded real estate investment trust in the U.S., specializing in the ownership and leasing of convenience store/gas station properties and petroleum distribution terminals.