Getty 'Recycles' Slower Growth Properties
JERICHO, N.Y. — Getty Realty Corp. considers the sale of six properties during the first quarter of 2016 to be part of an ongoing "recycling" process, through which it disposes of assets that don't meet the long-term growth criteria of its core portfolio, according to the company's May 5 first-quarter earnings call. The properties sold for $1.5 million in the aggregate.
"Our performance ... reflects the ongoing successful execution of our strategic initiatives including selective accretive acquisitions, targeted recycling of slower growth properties, and focused cost controls," Getty Realty President and CEO Christopher J. Guest stated in the company's Q1 earnings release. "Furthermore, we believe that our stabilized operating model, along with our pipeline of redevelopment and potential acquisition opportunities, will further enhance the growth profile of the company."
Getty reported net earnings of $7.7 million for the quarter, up from a net loss of $1.1 million during Q1 2015. The results for the quarter were impacted by $7.9 million of non-cash impairment changes, the company noted.
Total revenues from continuing operations were $28.4 million for the quarter, up from $24.7 million one year ago. The increase was primarily due to approximately $4.4 million in revenue from properties acquired in the United Oil transaction, which closed in June 2015.
Property costs from continuing operations were $5.3 million, compared to $6.2 million during the first quarter of 2015.
Jericho-based Getty Realty currently has 842 convenience stores and gas stations in its portfolio nationwide.