Corporate News Blog - Getty Realty Acquires Interests in 42 South Carolina Properties from Applegreen

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Accesswire 13-Jul-2017 7:20 AM
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LONDON, UK / ACCESSWIRE / July 13, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Jericho, New York based Getty Realty Corp. (NYSE: GTY) (Getty), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=GTY. The Company announced on July 10, 2017, that it had signed agreements with a US-based subsidiary of Applegreen PLC. The acquisition lease-back transaction consists of interests in thirty-eight freehold properties and four leasehold properties. The total value of the transaction is estimated to be approximately $70.1 million. The Company, in parallel, entered into a unitary lease agreement with Applegreen for all the above properties. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Commenting on the acquisition, Christopher J. Constant, President, and CEO of Getty said:
We are excited to enter into a long-term relationship with Applegreen, the largest convenience store, and gasoline station operator in the Republic of Ireland. This is a significant commitment by Applegreen to its US expansion, and we are happy to be their partner in South Carolina. The properties we are acquiring are high-quality convenience stores and gasoline stations, many of which have significant co-branded fast-food offerings. The acquisition of stand-alone Burger King restaurants, which are a part of this portfolio, represents an added opportunity for us to expand our retail portfolio.
On the same day, the Company also announced the launch of an underwritten registered public offering of 4.1 million shares of its common stock. The Company has offered its underwriters a 30-day option to purchase additional 615,000 shares. Getty's book-running managers for the public offering are Bank of America Merrill Lynch, JPMorgan, KeyBanc Capital Markets, and RBC Capital Markets.
Details of the deal
The properties acquired by Getty, under the agreement, includes thirty-four convenience store and gasoline stations and eight stand-alone Burger King quick service restaurants. The thirty-four convenience stores and gasoline stations house many well-known brands stores like Burger King, Subway, and Blimpie. All the properties are located in Metropolitan Columbia area in South Carolina which is a growing market and a desirable commercial location.
The unitary lease agreement for the properties will be initially for a period of 15 years with the option of renewing the lease four times, each time for a five-year duration. The rent would have annual increases for the initial lease term and for each of the following lease renewals. As per the terms of the lease agreement, Getty would receive an annual rent of $5 million on the freehold properties initially and a $0.2 million rent on the leasehold properties.
The said properties are being acquired from an independent retailer, Brandi Inc., and Brandi Stations Inc. The retailer was founded by Bob Brandi in 1974.
The transaction is expected to close in Q4 2017 and is subject to a closing of the purchase agreements between Applegreen and Brandi, regulatory approvals, and closing conditions.
Benefits of the deal
The deal will help Getty's expand in the lucrative and growing South Carolina area.
The properties themselves are a great investment given their location and that the properties houses leading retail brands, convenience store, and gasoline stations. This will help Getty's expand their retail business.
Once the deal is closed, Getty's expects the transaction to be immediately accretive to its net earnings.
About Getty Realty Corp.
Getty Realty Corp. started off in 1955 as a single owned gasoline service station in New York City and later was incorporated as Power Test Corp. in 1971. The Company acquired the petroleum distribution and marketing assets of Getty Oil Company in 1985 and took on the name of Getty. From 2001, the Company established itself as a leading publicly-traded real estate investment trust (REIT). It specializes in ownership, leasing, and financing of a convenience store and gasoline station properties. The Company has over 823 properties in 24 states across the US and Washington DC. They operate under various brands including 76, Aloha, BP, Citgo, Conoco, Exxon, Getty, Mobil, Shell, and Valero. The Company's lease properties consist of 719 properties which have been leased either as unitary or master triple-net leases to 24 regional and national fuel distributors. It also has 87 properties leased as single unit triple-net leases.
Last Close Stock Review

Getty Realty's share price finished yesterday's trading session at $23.13, slightly sliding 0.09%. A total volume of 1.10 million shares have exchanged hands, which was higher than the 3-month average volume of 182.16 thousand shares. The Company's stock price advanced 3.86% in the previous twelve months. Shares of the Company have a PE ratio of 18.33 and have a dividend yield of 4.84%. The stock currently has a market cap of $807.01 million.

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