2024-03-06 07:00:00 ET
Summary
- Getty Realty's 5-year AFFO growth beats out peers like Realty Income, EPR Properties, and NNN REIT, only trailing behind Agree Realty.
- AFFO for 2024 is expected to grow 2.7% from AFFO brought in for 2023.
- The company's dividend is also well-covered by an AFFO payout ratio below 80%, and they have well-laddered debt maturities with none due until 2025.
- The Biden Administration is pushing for 2/3 of all new vehicles to be electric in the next 8 years. Getty has a high concentration in convenience & gas stations, which could impact the REIT going forward.
- With interest rates expected to decline, GTY offers investors the potential for double-digit upside.
Introduction
Since the start of interest rate hikes, I've been building out my REIT holdings in my portfolio, taking advantage of the opportunity Mr. market has given us investors. While building out current positions, I've also been searching for new REITs, particularly to add to my Roth . One REIT that peaked my interest is Getty Realty ( GTY ). In this article, I'll discuss some things that makes Getty Realty attractive and why they may be the perfect addition to your basket of REITs.
Who Is Getty Realty?
Unlike other retail peers, GTY has a much higher concentration of convenience stores and automotive retail. They also have a large concentration in car washes. Some of their tenants you may be familiar with, like 7-Eleven, BP ( BP ), Circle K, and Zips Car Wash....
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For further details see:
Getty Realty: Strong Dividend Growth And Valuation Makes It A Solid REIT