Getty Realty’s Standard Rent Escalation of 1.7% Exceeds Industry Standards

Photo of author
Written By Joel Gbolade

Getty Realty Corp. (NYSE: GTY) operates as a triple-net lease Real Estate Investment Trust (REIT), primarily focusing on retail and service-oriented properties, notably convenience-gas and automotive sectors.

The company’s portfolio spans 42 states and Washington DC, totaling 1108 properties, with a significant emphasis on corner locations in high-density metropolitan areas.

Evaluating Getty Realty

Credits: DepositPhotos

The Good:

  1. Lease Structures

Getty Realty predominantly utilizes triple-net lease agreements, transferring a substantial portion of property-related costs to tenants. These agreements typically include annual rent escalations, with Getty Realty’s average annual escalation rate of 1.7% exceeding industry standards.

Despite some considering this rate low, it serves as a consistent internal growth driver for the company.

Triple-net leases are highly favorable for landlords, as tenants bear the burden of maintaining and operating the properties, including taxes, repairs, and insurance.

This structure provides Getty Realty with predictable cash flows and minimizes its operational expenses.

  1. High Occupancy Rate and Solid WALT

Maintaining a high occupancy rate and a solid Weighted Average Lease Term (WALT) is indicative of portfolio quality and stability. With a WALT of 9.2, Getty Realty’s lease terms are competitive within the industry, and recent investment activities have further improved this metric.

Additionally, the company boasts an impressive occupancy rate of 99.7%, surpassing many peers in the sector.

A high occupancy rate ensures consistent rental income streams, while a solid WALT mitigates the risk of lease expirations and provides visibility into future cash flows.

Getty Realty’s ability to secure long-term leases reflects positively on its portfolio management strategy and tenant relationships.

The Bad:

  1. Balance Sheet and Debt Maturities

Getty Realty’s BBB- rated balance sheet, coupled with significant debt maturities approaching in 2025/2026, poses notable concerns. While the company’s coverage ratio and weighted average debt maturities appear relatively strong compared to some peers, the concentration of debt maturities in the near term exposes Getty Realty to refinancing risks, particularly in a high-interest rate environment.

This, in turn, could strain the company’s financial performance and elevate its already elevated Adjusted Funds From Operations (AFFO) payout ratio.

The impending debt maturities raise questions about Getty Realty’s ability to refinance its obligations on favorable terms. In a challenging economic environment or if interest rates rise significantly, the company may face difficulties in meeting its debt obligations, potentially leading to liquidity issues and credit rating downgrades.

  1. High Tenant Concentration

Getty Realty exhibits a relatively high tenant concentration, with its top ten tenants contributing substantially to its Annual Base Rent (ABR). This concentration heightens the impact of any liquidity issues faced by these tenants, presenting a significant risk factor for Getty Realty’s financial stability.

A concentrated tenant base increases Getty Realty’s exposure to tenant-specific risks, such as bankruptcies or lease terminations. If one or more of its top tenants encounter financial difficulties, it could significantly impact the company’s revenue and cash flow, leading to potential declines in property valuations and investor confidence.

Neutral Ground – Growth & Dividends

Getty Realty has demonstrated decent growth in Adjusted Funds From Operations (AFFO) per share and offers an attractive dividend yield of approximately 6.6%. However, its projected growth rates and dividend sustainability may be overshadowed by the impending debt maturities and high tenant concentration.

While Getty Realty’s dividend yield may appeal to income-oriented investors, its risk profile suggests limited potential for multiple appreciation. Investors should carefully weigh the company’s growth prospects against its financial risks and market conditions before making investment decisions.


Getty Realty’s forward-looking Price to Funds From Operations (P/FFO) multiple is in line with industry standards but may not reflect its inherent risks and growth potential compared to its peers. While the company’s dividend yield may appeal to income-oriented investors, its risk profile suggests limited potential for multiple appreciation.

Investors should consider Getty Realty’s valuation in the context of its risk profile and growth prospects. While the company may offer attractive dividend yields, its financial health and tenant concentration pose significant risks that could impact its long-term performance and shareholder returns.

Risk Factors

Key risk factors for Getty Realty include its high tenant concentration, significant debt maturities, and potential challenges associated with expansion in the service-oriented property sector.

Investors should carefully assess Getty Realty’s risk factors and their potential impact on the company’s financial performance and shareholder value. While the company may offer attractive growth prospects and dividend yields, its risk profile suggests that investors should approach with caution and consider diversifying their portfolios to mitigate potential downside risks.

The Bottom Line

Credits: DepositPhotos

Getty Realty presents investors with a mix of strengths and weaknesses. While it offers a competitive lease structure and solid occupancy metrics, its financial health and tenant concentration pose significant risks.

Considering these factors, investors may find better risk-to-reward opportunities among peers such as ADC, EPRT, and NNN within the retail and service-oriented REIT space.



You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.