The company currently expects to use the net proceeds of this offering for the acquisition of properties in the gas station and convenience store sector, repayment or refinancing of outstanding indebtedness [image-nocss] under its credit agreement and general corporate purposes. While the company evaluates acquisition and investment opportunities from time to time, it currently has no binding commitments or agreements relating to any such acquisition or investment.
J.P. Morgan and BofA Merrill Lynch are acting as joint book-running managers for the offering.
The shares will be issued pursuant to a prospectus supplement filed as part of an effective shelf registration statement previously filed with the Securities & Exchange Commission (SEC).
Meanwhile, Getty Realty has reported its preliminary financial results for the quarter ended March 31, 2010. Net earnings increased by $2 million to $11.9 million for the quarter ended March 31, 2010, as compared to $9.9 million for the quarter ended March 31, 2009. Earnings from continuing operations increased by $2.0 million to $11.6 million for the quarter ended March 31, 2010, as compared to $9.6 million for the quarter ended March 31, 2009. Earnings from discontinued operations, primarily comprised of gains on dispositions of real estate, were $300,000 for each of the quarters ended March 31, 2010 and March 31, 2009.
The $2 million increase in net earnings for the quarter ended March 31, 2010, as compared to the respective prior year period, was principally due to increased rental income and a net reduction in operating expenses, partially offset by higher interest expense.
Revenues from rental properties included in continuing operations increased by $1.9 million to $22.5 million for the quarter ended March 31, 2010, as compared to $20.6 million for the quarter ended March 31, 2009. Rent received increased by $1.5 million to $22.1 million for the quarter ended March 31, 2010, as compared to $20.6 million for the prior year period. The increases in rent received were primarily due to rental income from the 36 properties acquired from 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 $400,000 for the quarter ended March 31, 2010, and decreased rental revenue by an insignificant amount for the quarter ended March 31, 2009.
Leo Liebowitz, the company's chairman and CEO, said, "The increase in our earnings for the first quarter is largely attributable to the positive contribution realized from the acquisition of properties from White Oak...which was funded with floating rate debt. Our intention is to pursue additional accretive property acquisitions while at the same time maintaining a conservative balance sheet by limiting debt."
Rental property expenses included in continuing operations increased by $100,000 to $3.2 million for the quarter ended March 31, 2010, as compared to $3.1 million for the quarter ended March 31, 2009.
Environmental expenses, net of estimated recoveries from underground storage tank funds included in continuing operations for the quarter ended March 31, 2010, decreased by $900,000 to $1.6 million, as compared to $2.5 million for the quarter ended March 31, 2009. The decrease in net environmental expenses for the quarter ended March 31, 2010, was primarily due to lower litigation loss reserves and legal fees which decreased by an aggregate $600,000 to $400,000 for the quarter ended March 31, 2010, as compared to $1 million for the quarter ended March 31, 2009, and a lower provision for estimated environmental remediation costs which decreased by $400,000 to $900,000 for the quarter ended March 31, 2010, as compared to $1.3 million recorded for the quarter ended March 31, 2009.
Jericho, N.Y.-based Getty Realty Corp. is the largest publicly traded 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 1,065 properties nationwide.
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