Breaking Down Getty Realty Corp. (GTY) Financial Health: Key Insights for Investors

You're looking at Getty Realty Corp. (GTY) because you want a clear picture of its financial durability, especially as the market grapples with higher interest rates and shifting consumer habits in the automotive sector. Honestly, the Q3 2025 results show a deliberate, defensive growth strategy that's paying off: the company just raised its full-year Adjusted Funds From Operations (AFFO) guidance to a range of $2.42 to $2.43 per diluted share, a definitive signal of confidence. Rental income for the quarter hit $55.59 million, and that stability is grounded in a near-perfect 99.8% occupancy rate across its convenience and automotive retail portfolio. Plus, they're not sitting still; Getty Realty invested $237 million year-to-date at an attractive initial cash yield of 7.9%, and they're backing that up with a recent 3.2% dividend increase, bringing the quarterly payout to $0.485 per share. Here's the quick math: that kind of consistent, accretive growth, coupled with no major debt maturities until June 2028, makes the case for this net lease REIT defintely worth breaking down further.

Revenue Analysis

You're looking for the engine driving Getty Realty Corp. (GTY)'s returns, and the short answer is consistent, contractually-driven rent growth. The company's revenue stream is not complex; it's a net lease real estate investment trust (REIT) so the vast majority of its income is rent-specifically, base rental income-from its portfolio of convenience and automotive retail properties.

For the trailing twelve months (TTM) ending September 30, 2025, Getty Realty Corp. reported total revenue of approximately $214.45 million, marking a solid 9.4% growth year-over-year. This isn't a sudden spike; it's the result of a deliberate, disciplined investment strategy. Here's the quick math on their primary income source: base rental income for the first nine months of 2025 hit $151.7 million, up 11.3% from the same period in 2024.

The revenue breakdown shows a clear picture of where the cash is coming from, and honestly, it's a very stable profile for a REIT:

• Base Rental Income: The core revenue, driven by long-term, triple-net leases (NNN), where the tenant pays for most property expenses, like taxes and insurance.
• Tenant Reimbursements: This is the second component, covering real estate taxes and other municipal charges that Getty Realty Corp. pays and then gets reimbursed for by the tenants.

What this stability hides is a quiet but important diversification effort. While convenience stores and gas stations are the foundation, Getty Realty Corp. has been actively shifting its investment focus. In the third quarter of 2025 alone, they invested $56.3 million across 29 properties, acquiring 24 of them.

This capital deployment is moving their portfolio into higher-growth, auto-centric segments. You see this in the acquisitions, which included 15 drive-thru quick service restaurants (QSRs), five convenience stores, two express tunnel car washes, and auto service centers. This diversification is critical because it insulates them from over-reliance on any single retail sub-sector. Still, a significant portion of revenue is concentrated with a few key players. As of Q3 2025, two major tenants, ARKO Corp. and Global Partners LP, accounted for 12% and 10% of total revenues, respectively.

The growth is defintely organic and inorganic. The 11.3% increase in base rental income for the nine months ended September 30, 2025, was fueled by new properties they bought and the contractual rent increases already baked into their existing leases. That's the beauty of the net lease model; you get predictable, escalating revenue. If you want to dive deeper into their long-term strategy, check out their Mission Statement, Vision, & Core Values of Getty Realty Corp. (GTY).

Here is a snapshot of the revenue growth drivers:

Profitability Metrics

You're looking for a clear picture of Getty Realty Corp. (GTY)'s financial engine, and the profitability margins tell a compelling story of a highly efficient, triple-net lease (NNN) model. The direct takeaway is that Getty Realty Corp. operates with exceptional gross efficiency, translating a significant portion of its rental income into operating profit, which is typical for a strong NNN REIT.

For the trailing twelve months (TTM) leading up to October 2025, Getty Realty Corp. posted a Gross Profit of approximately $204.12 million, an Operating Income of $120.24 million, and a Net Income of about $71.42 million.

Operational Efficiency and Cost Management

The Gross Margin of 95.3% is outstanding, which is exactly what you want to see from a net lease REIT. Here's the quick math: in a triple-net lease structure, the tenant is responsible for most property operating expenses-things like property taxes, insurance, and maintenance. This dramatically reduces Getty Realty Corp.'s Cost of Goods Sold, so nearly all of the 2025 rental income flows straight to Gross Profit.

Still, the Operating Margin drops to 53.18%. This gap highlights the company's general and administrative (G&A) overhead, plus property operating expenses not covered by the NNN structure. It's a clean one-liner: the business model is highly efficient, but G&A is the next cost hurdle. The analysis of operational efficiency shows management is doing a defintely good job keeping property-level costs low, but corporate overhead warrants continued scrutiny as the portfolio expands.

Net Profit Trends and Industry Comparison

The Net Profit Margin of 34.76% is strong, but it's important to remember that for REITs, Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are the true measures of profitability. Net Income is lowered by non-cash charges like real estate depreciation, which FFO adds back.

Looking at near-term trends, Getty Realty Corp. is showing positive momentum. Net earnings per share for Q3 2025 were $0.40, a notable jump from $0.27 per share in the same quarter last year, which reflects the benefit of recent acquisitions and contractual rent increases. Also, the company's Q3 2025 rental income grew to $53.5 million, an 11.1% increase from Q3 2024.

When you compare this to the broader retail REIT sector, the focus shifts to growth metrics:

• Retail REITs saw average year-over-year FFO and Net Operating Income (NOI) increase by 5.1% as of Q2 2025.
• Getty Realty Corp.'s Q3 2025 FFO was $0.66 per share, up from $0.56 per share in Q3 2024, demonstrating growth that is competitive with the sector's positive trend.
• The company's full-year 2025 AFFO guidance was recently increased to a range of $2.42 to $2.43 per diluted share, confirming management's confidence in continued earnings growth.

The high margins show the stability of the NNN structure, and the FFO/AFFO growth confirms the successful execution of their investment strategy. This is a business built on reliable, contractual cash flow. You can dig deeper into the company's foundational strategy here: Mission Statement, Vision, & Core Values of Getty Realty Corp. (GTY).

Finance: Track the Q4 2025 G&A expenses to see if the Operating Margin improves toward the end of the year.

Debt vs. Equity Structure

You're looking at Getty Realty Corp. (GTY)'s balance sheet, and the first question is always: are they fueling growth with smart debt or risky leverage? The short answer is they maintain a conservative, well-managed capital structure, which is typical for a net lease real estate investment trust (REIT). They balance debt financing with equity funding, keeping their financial foundation defintely solid.

As of late 2025, Getty Realty Corp.'s approach to financing leans toward a healthy mix, but with a clear preference for long-term, fixed-rate debt to lock in costs. Their total outstanding indebtedness was approximately $940.0 million as of September 30, 2025, a figure that includes both long-term notes and usage on their revolving credit facility. Short-term debt, which is usually the outstanding balance on the revolving credit facility, is actively managed and often termed out into long-term notes.

The crucial metric here is the debt-to-equity (D/E) ratio, which measures a company's total liabilities relative to its shareholder equity (the capital invested by owners). For Getty Realty Corp., the D/E ratio stood at about 0.94 as of November 2025. Here's the quick math: a D/E ratio below 1.0 means the company is primarily funded by equity, not debt, which is a strong signal of balance sheet health.

To be fair, the industry standard for Retail REITs is around 1.043, so Getty Realty Corp.'s 0.94 is notably lower, suggesting less financial risk compared to its peers. That's a good sign for investors who prioritize stability.

• Debt-to-Equity: 0.94 is below the Retail REIT average.
• Total Debt: $940.0 million as of Q3 2025.
• Debt Maturity: No major debt maturities until 2028.

The company recently executed a key debt management move to further solidify this structure. On November 20, 2025, Getty Realty Corp. announced an agreement to issue $250 million in senior unsecured notes. This new, long-term debt has a ten-year term and a fixed interest rate of 5.76%. The proceeds are earmarked to repay amounts outstanding on their $450 million unsecured revolving credit facility, effectively converting short-term, variable-rate debt into long-term, fixed-rate debt.

This refinancing action is a textbook example of a conservative financial strategy. It extends the company's weighted-average debt maturity to more than 6.0 years and, pro forma, restores full borrowing capacity on the revolving credit facility. That capacity gives them ample liquidity for future investment activity, like acquiring new convenience and automotive retail properties. You can read more about the company's full financial picture in Breaking Down Getty Realty Corp. (GTY) Financial Health: Key Insights for Investors.

What this estimate hides is the potential impact of future interest rate hikes on the remaining variable-rate debt, but with nearly 90% of REIT debt typically fixed-rate across the sector, the exposure is relatively low. The key takeaway is that Getty Realty Corp. is prioritizing stability and liquidity, using long-term debt to fund their growth while keeping their D/E ratio comfortably below the industry average.

Liquidity and Solvency

You're looking for a clear picture of Getty Realty Corp. (GTY)'s ability to cover its short-term obligations, and the data from the 2025 fiscal year suggests a tight but manageable liquidity position, which is common for a net lease real estate investment trust (REIT). The company is not swimming in cash, but its access to capital is strong, and its operational cash generation is solid.

The core liquidity metrics, the Current Ratio and Quick Ratio, show a deliberate capital structure. The trailing Current Ratio sits at approximately 1.04, meaning current assets just barely cover current liabilities. This isn't a massive buffer, but it's above the 1.0 threshold. More telling is the Quick Ratio (acid-test ratio), which excludes less-liquid assets like inventory, at about 0.80. This tells you that without relying on selling off non-cash current assets, they are slightly short on covering immediate debts.

Working capital-the difference between current assets and current liabilities-is kept lean. For a REIT like Getty Realty Corp. (GTY), which holds long-term, income-producing real estate and has predictable rental income, a low current ratio is often a strategic choice, not a sign of distress. They minimize idle cash and immediately deploy capital into new properties. The working capital trend is stable, reflecting a focus on efficient capital use rather than hoarding cash.

The real story is in the cash flow statement, which shows how the business is funding its growth. The company's operational cash generation is robust, with a trailing twelve-month (LTM) Free Cash Flow (FCF) of approximately $127.4 million as of November 2025. This cash is the lifeblood for their dividend and investment strategy.

The cash flow breakdown for the nine months ended September 30, 2025, shows a clear strategy:

• Operating Cash Flow (OCF): Strong and stable, driven by an impressive 99.9% year-to-date rent collection rate and a long weighted average lease term of 9.9 years.
• Investing Cash Flow: Significantly negative, which is a good sign for a growth-focused REIT. Year-to-date through Q3 2025, Getty Realty Corp. (GTY) invested approximately $236.8 million in property acquisitions.
• Financing Cash Flow: Positive, as they fund acquisitions through a mix of debt and equity. For instance, in Q3 2025, they settled 1.2 million shares of common stock for net proceeds of $32.5 million.

The biggest strength is their overall capital access. As of Q3 2025, the company had total liquidity exceeding $375 million, which includes $5 million in cash, $113 million from unsettled forward equity agreements, and $260 million of capacity on their revolving credit facility. This 'shadow liquidity' is what matters most. Plus, they have no significant debt maturities until June 2028, which removes a major near-term risk. The primary liquidity concern is the ongoing environmental expenses, which were $5.34 million in Q2 2025, up from a negligible amount in the prior year, a risk that needs close monitoring.

Here's the quick math on their capital position:

To be fair, the low Current and Quick Ratios are a feature of their business model, not a flaw, but it does mean any unexpected, large short-term liability-like a sudden spike in those environmental costs-would require immediate use of their credit facility. Their ability to generate cash and access capital markets defintely mitigates this risk. For a deeper dive into the company's full strategy, you can read the complete post: Breaking Down Getty Realty Corp. (GTY) Financial Health: Key Insights for Investors.

Next Step: Portfolio managers should confirm the terms and covenants of the $260 million revolving credit facility to ensure maximum flexibility is maintained.

Valuation Analysis

You need to know if Getty Realty Corp. (GTY) is a good buy right now, and the short answer is that analysts see it as a Moderate Buy, but its valuation metrics present a nuanced picture. The stock has underperformed over the last year, but its dividend yield remains compelling.

The stock price trend tells a clear story of recent pressure. Over the last 12 months leading up to November 2025, Getty Realty Corp. (GTY)'s share price has fallen by approximately 14.13%. This decline is significant, especially considering the 52-week trading range, which saw the stock trade between a low of $25.39 and a high of $33.85. As of November 20, 2025, the closing price was $28.08.

When we look at the core valuation multiples, Getty Realty Corp. (GTY) appears to be trading at a reasonable, though not deeply discounted, level compared to its earnings and assets. Here's the quick math on the key ratios based on 2025 fiscal year data:

• Price-to-Earnings (P/E): The trailing P/E ratio sits at about 21.98, which is slightly higher than the average for many net-lease real estate investment trusts (REITs).
• Price-to-Book (P/B): The P/B ratio is 1.62, meaning you are paying $1.62 for every dollar of the company's book value of equity.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric, which is often better for real estate companies, is 14.13. This suggests the market is valuing the entire company (equity plus debt) at a little over 14 times its core operating cash flow (EBITDA).

The analyst community consensus is a Moderate Buy, which is a good sign. A total of six brokerages cover the stock, with three rating it a Buy and three a Hold. Their average 12-month price target is $31.80, which suggests an upside of over 13% from the current price. That's defintely a solid return expectation.

For income investors, the dividend situation is crucial. Getty Realty Corp. (GTY) has increased its quarterly dividend to $0.485, resulting in an annualized dividend of $1.94. This translates to a substantial dividend yield of around 6.8% to 7.1%. However, you have to look closely at the payout ratio.

The dividend payout ratio (DPR) is elevated at 151.56% based on generally accepted accounting principles (GAAP) earnings, which is a red flag. But, for a REIT, the more accurate measure is often based on adjusted earnings, where the payout ratio is a more sustainable 83.58%, or even 78.3% based on earnings. This difference is due to non-cash depreciation charges, so the lower figure is more relevant for assessing dividend safety. The dividend is still covered by the cash flow. You can dive deeper into the shareholder base and strategy by Exploring Getty Realty Corp. (GTY) Investor Profile: Who's Buying and Why?

Here is a summary of the key valuation metrics for Getty Realty Corp. (GTY) as of November 2025:

The stock looks fairly valued to slightly undervalued based on the analyst targets and the forward P/E of 20.80, especially considering the high, and likely sustainable, dividend yield. The risk is the recent price drop, but the opportunity lies in the potential for price appreciation back toward the average target price while collecting a significant yield.

Risk Factors

You need a clear picture of what could derail Getty Realty Corp. (GTY)'s steady performance, and honestly, the biggest near-term risks are tied to their legacy assets and the cost of money. While the company has done a solid job diversifying its portfolio and locking in long-term leases, two key areas-environmental liabilities and financial leverage-require close monitoring.

Here's the quick math on one major internal risk: environmental expenses. In the second quarter of 2025 alone, Getty Realty Corp. reported environmental expenses of $5.34 million. That's a massive jump compared to the ($0.15 million) reported in the second quarter of 2024. This increase points directly to higher accruals for litigation and remediation costs on older properties, and it's a direct hit to net earnings, which dropped to $14.0 million in Q2 2025 from $16.7 million in Q2 2024.

• Environmental Costs: Legacy sites create ongoing, unpredictable liabilities.
• Interest Rate Pressure: Higher borrowing costs erode net income.
• Sector Overlap: Reliance on auto-centric retail faces long-term EV trend risk.

The financial risks are also clear, largely driven by the current interest rate environment. The company's total debt stood at $925 million as of June 30, 2025, and the interest expense rose to $10.9 million in Q2 2025, up from $9.66 million a year prior. Still, to be fair, Getty Realty Corp. has mitigated the immediate threat by addressing all 2025 debt maturities and having no debt maturities until June 2028. Their weighted average cost of debt is a manageable 4.5% with a weighted average maturity of 4.8 years as of September 30, 2025.

On the strategic side, the concentration in convenience and automotive retail-while recession-resistant-presents an external risk from shifting consumer trends. The long-term adoption of electric vehicles (EVs) could eventually challenge the core business model, as the portfolio is heavily focused on auto-centric assets. Getty Realty Corp. is defintely aware of this, which is why they have been strategically diversifying their portfolio:

This diversification, which also includes an increased focus on drive-thru quick service restaurants (QSRs), is their main mitigation strategy against sector-specific downturns. They are actively deploying capital, investing over $235 million year-to-date in 2025 at an attractive initial cash yield of 7.9%. This strong investment activity, coupled with a nearly perfect 99.8% occupancy rate and 99.9% rent collection rate in Q3 2025, shows a business model that is structurally resilient. You can read more about their core strategy here: Mission Statement, Vision, & Core Values of Getty Realty Corp. (GTY).

The biggest immediate action for investors is to track the environmental liability line item and the company's net debt-to-EBITDA ratio, which was 5.1x at the end of Q3 2025 (or 4.6x pro forma for unsettled forward equity). They target a range of 4.5x to 5.5x, so they are operating at the higher end of their comfort zone. Finance: monitor Q4 2025 environmental accruals for any further spikes.

Growth Opportunities

You're looking at Getty Realty Corp. (GTY) because you need a reliable income stream, but you also need to see a clear path for growth beyond just contractual rent bumps. Honestly, the company's future isn't about revolutionary product innovation; it's about disciplined portfolio evolution and smart capital deployment, and the 2025 data shows they are executing this strategy defintely well.

The core growth driver is a deliberate shift away from a heavy reliance on traditional gas and convenience stores toward a more diversified portfolio of essential, non-discretionary retail. Back in 2019, convenience stores were 82% of their portfolio. By Q2 2025, that figure dropped to 63.1%, with express tunnel car washes and auto service centers taking a much bigger slice. This diversification minimizes sector-specific risk and provides a more resilient cash flow base. It's a classic risk-management move that fuels stable growth.

This strategic pivot is translating directly into financial projections. For the full year 2025, Getty Realty Corp. (GTY) increased its Adjusted Funds From Operations (AFFO) per diluted share guidance to a range of $2.42 to $2.43, up from the prior guidance of $2.40 to $2.41. Here's the quick math: base rental income for the nine months ended September 30, 2025, grew by 11.3% to $151.7 million, driven largely by incremental revenue from new acquisitions. That's a solid, double-digit growth rate in a tough real estate market.

The company is fueling this growth through aggressive, high-yield acquisitions. Year-to-date through October 2025, Getty Realty Corp. (GTY) invested approximately $237 million in convenience and automotive retail assets at an attractive initial cash yield of 7.9%. A key recent move was the $100 million acquisition of a Houston convenience store portfolio in October 2025, which came with a long-term, unitary net lease. Plus, they have a committed investment pipeline of more than $75.0 million for 22 additional properties, which provides clear near-term visibility. The growth is baked into the pipeline.

Getty Realty Corp. (GTY) maintains a significant competitive advantage through its net-lease structure and portfolio quality. Their focus on essential services-places people must visit regardless of the economy-results in rock-solid metrics. As of Q2 2025, the portfolio boasts a 99.7% occupancy rate and a weighted average lease term of 10.0 years. Also, the strong tenant rent coverage ratio of 2.6x indicates that their tenants have healthy financials, which reduces your default risk.

They are also positioning themselves for long-term strategic growth by securing capital. In November 2025, they announced a $250 million private placement of Senior Unsecured Notes. This capital, combined with a $450.0 million unsecured revolving credit facility secured earlier in January 2025, gives them the financial flexibility to continue their acquisition strategy without overleveraging. This capital structure supports their commitment to shareholders, evidenced by their 12th consecutive annual dividend increase to $0.485 per share, announced in October 2025.

To understand the full scope of their long-term vision, you should review their Mission Statement, Vision, & Core Values of Getty Realty Corp. (GTY).

The table below summarizes the portfolio diversification that is driving their resilience and growth:

Their strategy is simple: Buy essential retail properties with long leases and strong tenants, and keep diversifying the mix. It's a proven model that keeps delivering.

• Maintain 99.7% occupancy with long-term net leases.
• Invest in essential auto and convenience retail.
• Fund growth with over $75.0 million in committed pipeline.