Earnings from continuing operations for the quarter increased over last year by $2.8 million to $13.5 million. Earnings from continuing operations for the nine months ended September 30, 2010, increased by $6.9 million over last year to $37.7 million. The results of [image-nocss] discontinued operations, primarily comprising gains on dispositions of real estate, was a loss of $200,000 for the quarter ended September 30, 2010, as compared to earnings of $1.5 million for the quarter ended September 30, 2009. Earnings from discontinued operations were $1.5 million for the nine months ended September 30, 2010, as compared to $4.9 million for same period in 2009.
The $2.8 million and $6.9 million increases in earnings from continuing operations for the quarter and nine months ended September 30, 2010, respectively, as compared to the respective prior year periods, were principally due to increased rental income and net reductions in operating expenses.
Revenues from rental properties included in continuing operations increased by $1.2 million for the quarter ended September 30, 2010, and $4.3 million for the nine months ended September 30, 2010, to $22 million and $66.2 million, respectively, as compared to $20.8 million and $61.9 million for the respective prior year periods. Rent received increased by $1.4 million for the quarter ended Sept. 30, 2010, to $21.7 million and by $4.3 million to $65.2 million for the nine months ended September 30, 2010, as compared to the respective prior-year periods.
The increases in rent received were primarily due to rental income from the 36 properties acquired from, and leased back to, White Oak Petroleum in September 2009 and, to a lesser extent, due to rent escalations, partially offset by the effect of dispositions of real estate and lease expirations. Rental revenue includes revenue recognition adjustments, which increased rental revenue by $300,000 and $500,000 for the quarters ended September 30, 2010 and 2009, respectively, and increased rental revenue by $900,000 and $1 million for the nine months ended September 30, 2010 and 2009, respectively.
The $1.7 million and $3.4 million decreases in earnings from discontinued operations for the quarter and nine months ended September 30, 2010, respectively, as compared to the respective prior year periods, were principally due to lower gains on dispositions of real estate.
Impairment charges of $1.1 million recorded in the nine months ended September 30, 2009, were attributable to general reductions in real-estate valuations in 2009 and, in certain cases, by the removal or scheduled removal of underground storage tanks by Getty Petroleum Marketing Inc., the company's largest tenant. There were no impairment charges recorded in the quarters ended September 30, 2010 and 2009 and the nine months ended September 30, 2010.
Environmental expenses, net of estimated recoveries from underground storage tank funds included in continuing operations for the quarter ended September 30, 2010, decreased by $1 million to $1 million, as compared to $2 million for the prior year quarter. The decrease in net environmental expenses for the quarter ended September 30, 2010, was primarily due to a lower provision for estimated environmental remediation costs, which decreased by $1.1 million to $500,000 for the quarter ended September 30, 2010, as compared to $1.6 million recorded for the quarter ended September 30, 2009.
Environmental expenses, net of estimated recoveries from underground storage tank funds included in continuing operations for the nine months ended September 30, 2010, decreased by $1.8 million to $3.9 million, as compared to $5.7 million recorded for the prior nine-month period. The decrease in net environmental expenses for the nine months ended September 30, 2010, was primarily due to a lower provision for estimated environmental remediation costs, which decreased by $1 million to $2.4 million for the nine months ended September 30, 2010, as compared to $3.4 million recorded for the nine months ended September 30, 2009, and lower litigation loss reserves and legal fees, which decreased by an aggregate $800,000 to $900,000 for the nine months ended September 30, 2010, as compared to $1.7 million for the nine months ended September 30, 2009.
During the second quarter of 2010, the company completed a public stock offering of 5.2 million shares of common stock. The $108.2 million net proceeds from the offering were used in part to repay a portion of the outstanding balance under the company's revolving credit facility and the remainder is available for general corporate purposes.
David Driscoll, Getty's CEO, said,"It was another good quarter for us and we maintain our focus on deploying capital. Transaction flow remains active with many attractive opportunities despite cap rate compression. We are aggressively pursuing our pipeline and broadening our capacity to source and close transactions."
Getty Realty is the largest publicly traded real-estate investment trust (REIT) in the United States specializing in ownership and leasing of convenience store/gas station properties and petroleum distribution terminals. The company owns and leases approximately 1,060 properties nationwide.
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