Alex Fijan

Alex Fijan from Baird inquired about the reasons behind the recent dip in Getty Realty's rent coverage ratio and sought an update on overall tenant health and the expanding demand for development opportunities.

Answer

CEO Christopher Constant explained that the slight dip in rent coverage was primarily a rounding issue, resulting from the high fuel margins of Q3 2024 rolling off the 12-month calculation, while current margins remain strong. He affirmed robust tenant health with high occupancy and collections, noting that growing tenants are driving increased demand for development funding and new store construction.

Alex Fijan inquired about the dip in Getty Realty's rent coverage ratio and asked for an update on overall tenant health, specifically if there's a broadening demand for development opportunities across tenants or categories.

Answer

Christopher Constant, Chief Executive Officer, explained that the slight dip in coverage from 2.6x to 2.5x was primarily a rounding issue, driven by the roll-off of Q3 2024, which featured historically high C-store fuel margins. He confirmed that other asset classes remained stable and tenant health is strong, evidenced by 99.7% occupancy and full rent collections. Constant added that demand for development opportunities is broadening, fueled by healthy, growing tenants seeking new store development and consolidation, which Getty is actively supporting through its development funding program.