From The Motley Fool · The Motley Fool Team · · 40s
Getty Realty: 3 Key Takeaways for Long-Term Investors
Getty Realty's strategic moves boost long-term real estate returns amid rising rates.
In brief
Getty Realty's strategic moves boost long-term real estate returns amid rising rates. Getty Realty targets high-yield convenience and automotive retail assets to maintain strong cash flow despite rising borrowing costs. Originally reported by The Motley Fool.
Direct Relationships Secure Off-Market Deals
Getty Realty negotiates off-market convenience store deals directly with tenants to avoid competitive bidding.
“This was an off-market deal that we negotiated directly with Refuel, a convenience retail operator that we have been cultivating a relationship with since 2019, and who has been a tenant of Getty's since 2021.”
Counterparties Adjust Deals as Rates Rise
Rapid borrowing cost increases allow Getty Realty to reprice deals with tenants without losing returns.
“What we found recently, really in all stages of deals in our pipeline, is a willingness for counterparties to adjust and move with us as the market moves.”
Capital Focus on Yield Spreads
Getty Realty restricts deals to ensure investment spreads support long-term shareholder value growth.
“We will deploy capital only when expected investment spreads support earnings growth and create long-term value for our shareholders.”
The big picture
Getty Realty targets high-yield convenience and automotive retail assets to maintain strong cash flow despite rising borrowing costs.
