Getty RealtyNYSE: GTY

Getty Realty is a net-lease REIT with a well-diversified portfolio of properties, high occupancy, and a solid tenant base. The REIT maintains a BBB- rating with manageable debt levels and high liquidity, ensuring financial flexibility and stability even in fluctuating interest rate environments. Despite some risks, GTY stock is undervalued, offering a high dividend yield which is supported by stable cash flows.

The IPO (initial public offering) market has gotten stronger in 2024, according to the Q2 2024 quarterly review from IPO specialist Renaissance Capital. That has resulted in a more buoyant market for secondary offerings.

Getty Realty (GTY) came out with quarterly funds from operations (FFO) of $0.58 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to FFO of $0.56 per share a year ago.

– Reports $104 Million of Year-to-Date Investment Activity – – Increases 2024 Full Year Earnings Guidance – NEW YORK, July 24, 2024 (GLOBE NEWSWIRE) -- Getty Realty Corp. (NYSE: GTY) (“Getty” or the “Company”) announced today its financial and operating results for the quarter ended June 30, 2024. Second Quarter 2024 Highlights Net earnings: $0.30 per share Funds From Operations (“FFO”): $0.55 per share Adjusted Funds From Operations (“AFFO”): $0.58 per share Invested $61.7 million across 23 properties at an 8.1% initial cash yield Committed investment pipeline of more than $53 million, as of July 24, 2024, for the development and/or acquisition of 25 convenience and automotive retail properties “We continued to grow and diversify our portfolio of convenience and automotive retail properties by accretively deploying more than $100 million through the first half of the year,” stated Christopher J.

Getty Realty's fundamentals and market price have diverged, with AFFO/share growing consistently while the market price has fallen, making the stock materially undervalued. The implied cap rate and AFFO multiple undervalue Getty's reliability and growth potential, with a clear runway for steady earnings growth. Getty's focus on automotive-related properties, strong tenant rent coverage, and clean underwriting process set it up for long-term growth and potential capital gains.

Getty Realty is a triple-net lease REIT focused on service-oriented properties. The Company has some impressive business metrics in terms of occupancy rate, rent escalations, and WALT. There are some noticeable risks accompanying GTY (high tenant concentration and significant debt maturities upcoming in 2025/2026).

Getty Realty's shares have underperformed in the past year, but the company's business remains stable with strong debt coverage and long lease terms. The company reported solid Q1 results, with adjusted funds from operations beating expectations and revenue rising by 14%. Its lower share price does make accretive deal-making more difficult, but shares seem now positioned to deliver a 10+% return even absent new property acquisitions.

Getty Realty reported quarterly funds from operations (FFO) of $0.57 per share, which matched the Zacks Consensus Estimate. This is slightly higher than the FFO of $0.56 per share reported in the same quarter last year.

While the top- and bottom-line numbers for Getty Realty (GTY) give a sense of how the business performed in the quarter ended December 2023, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.