Getty Realty Corp. Reports Preliminary Increases in Net Earnings for 2009

Getty Realty Corp. has released preliminary results for the quarter and year ended December 31, 2009, indicating significant increases in net earnings. The Long Island-based real estate investment trust attributes this growth primarily to the acquisition of 36 Exxon-branded convenience and petroleum retail properties in Prince George's County, Md. The company owns and leases approximately 1,075 properties nationwide and has a diverse portfolio of convenience store/gas station properties and petroleum distribution terminals.

The acquisition of the 36 Exxon-branded properties in September 2009 positively impacted the company's results for the fourth quarter, contributing approximately $1.6 million in rental revenue offset by $0.3 million in interest expense. Additionally, the results include impairment charges of $1.1 million, primarily related to general reductions in real estate valuations and the removal of underground storage tanks. The company has also announced a restructuring plan, which includes the sale of assets unrelated to the properties it leases to Getty Realty, and the elimination of jobs and marketing regions. This effort is expected to reduce operating costs and enhance the company's financial performance going forward.

Key Takeaways:

• Getty Realty Corp. reported preliminary increases of $2 million and $5.2 million in net earnings for the quarter and year ended December 31, 2009, respectively.
• The acquisition of 36 Exxon-branded convenience and petroleum retail properties in Prince George's County, Md., contributed approximately $1.6 million in rental revenue to the company's results for the fourth quarter.
• Earnings from continuing operations increased $1.9 million to $10.7 million for the quarter, while earnings from continuing operations increased $2.6 million to $41.4 million for the year.
• The company recorded impairment charges of $1.1 million, primarily related to general reductions in real estate valuations and the removal of underground storage tanks.
• Getty Petroleum Marketing reported a significant loss for the year ended December 31, 2008, and has taken steps to reduce operating costs, including closing two marketing regions and eliminating jobs.
• The company announced a restructuring plan that includes the sale of assets unrelated to the properties it leases to Getty Realty and the elimination of jobs and marketing regions.

Statistics:

• Net earnings for the quarter increased to $11.3 million.
• Net earnings for the year ended December 31, 2009, were $47.0 million.
• Earnings from discontinued operations were $0.6 million and $5.6 million for the quarter and year, respectively.
• Earnings from discontinued operations were $0.5 million and $3.0 million for the respective prior year periods.
• The company owns and leases approximately 1,075 properties nationwide.

Sources:

• Euclid Infotech Pvt. Ltd.
• Getty Realty Corp. press release (no date)