Getty Realty Corp. Shares Plummet 18% Amid Dispute with Lukoil Oil Co.

Getty Realty Corp.'s shares dropped sharply on the New York Stock Exchange following an announcement that its largest tenant, Lukoil Oil Co., had transferred its interest in Getty Petroleum Marketing Inc. to a new management. The news has sent shockwaves through the company, which specializes in gas stations and convenience stores. With over 75% of its lessees potentially at risk, Getty Realty has begun a preliminary dialogue with the new management to resolve the situation.

Key Takeaways:

• Getty Realty Corp.'s shares plummeted 18% on the New York Stock Exchange after the announcement.
• The company's largest tenant, Lukoil Oil Co., had transferred its interest in Getty Petroleum Marketing Inc. to an unrelated party.
• Getty Realty owns or leases about 1,100 gas stations and convenience stores, and nine petroleum terminals in 21 states.
• The company reported revenues of $84.5 million in 2009, its most recently reported fiscal year.
• JPMorgan Chase & Co. analysts downgraded the stock in response to the announcement.
• Getty Realty has initiated a preliminary dialogue with the new management of Getty Petroleum Marketing Inc.
• The dispute has significant implications for Getty Realty's business, as Lukoil Oil Co. accounts for over 75% of its lessees.

Statistics:

• Share price drop: 18%
• Share price loss: $5.10 to close at $23.75
• Number of gas stations and convenience stores: 1,100
• Number of petroleum terminals: 9
• States where Getty Realty operates: 21
• 2009 revenues: $84.5 million
• Percentage of lessees at risk: 75%

Sources:

• Newsday, "Getty Realty Corp. shares fall 18% on NYSE amid federal probe"
• Getty Realty Corp., "Lukoil Transfers Ownership of Getty Petroleum Marketing Inc."