JERICHO, N.Y. -- Getty Realty Corp. has announced that it has not received the monthly rental payment due for August 2011 from its largest tenant, Getty Petroleum Marketing Inc., under its master lease and other leases with Getty Petroleum Marketing.
Getty Petroleum Marketing informed Getty Realty that based on its distressed financial position, weakness in operating margins and cash flow deficiencies, it was unlikely to be able to pay full rent for August.
Although Getty Petroleum Marketing described various contingencies which, if resolved favorably, may allow for [image-nocss] payment of full or partial rent for August, the company said that it could provide no assurances that it will meet its current or future rental or other obligations under the leases.
Getty Realty has issued a contractual notice of default to Getty Petroleum Marketing as a result of its nonpayment of rent, and Getty Realty intends to continue discussions with Getty Petroleum Marketing while it evaluates its options regarding this matter, it said.
East Meadow, N.Y.-based Getty Petroleum Marketing is a leading independent marketer of petroleum products in the northeastern United States. A former subsidiary of Russian oil company LUKOIL, its primary asset is the more than 800 stations located on properties owned by Getty Realty. After scaling back the company's operations over the last few years to cut debt, in 2011 LUKOIL sold Getty Petroleum Marketing to investment firm Cambridge Petroleum Holding for an undisclosed price.
Jericho, N.Y.-based Getty Realty is the largest publicly-traded real-estate investment trust (REIT) in the United States specializing in ownership, leasing and financing of retail motor fuel and convenience store properties and petroleum distribution terminals. The company owns and leases approximately 1,170 properties nationwide.
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