JERICHO, N.Y. -- Getty Realty Corp. has announced that is repossessing its portfolio of nearly 800 properties immediately.
It said that, consistent with the expectations outlined in the stipulation and order approved by the U.S. Bankruptcy Court for the Southern District of New York on April 2, 2012, Getty Petroleum Marketing Inc. (GPMI) rejected Getty Realty's master lease effective April 30, 2012, pursuant to an order of the bankruptcy court. This rejection affects all but one of the 788 properties Getty had leased to GPMI.
(Click here for previous CSP Daily News coverage of Getty and GPMI's disputes and the resulting supply disruptions in the Northeast.)
David B. Driscoll, president and CEO of the Getty Realty, said, "We are pleased to be able to regain full control of this portfolio in accordance with our expectations and the public statements we made in March. It is our intention to continue the repositioning process that we started at the beginning of the year. While we understand it will take time to complete, the pace is already accelerating, evidenced by interim supply arrangements and new long-term, triple-net leases with distributors, along with our ongoing process of selling noncore assets."
He added, "Certainly, there is much work that still needs to be done, but our team is committed to substantially completing this process in the coming quarters."
Getty Realty also announced that on or about May 1, 2012, it has:
- Entered into long-term, triple-net leases comprising 282 locations with affiliates of Lehigh Gas, Chestnut Petroleum Distributors, Ramoco Fuels and Sam's Food Stores, as well as adding properties to an existing lease with MWS Enterprises (Arrowmart). The properties are located in New England, Southern New Jersey, Southeastern and Central Pennsylvania and upstate New York (Buffalo) and are anticipated to generate approximately $17 million of annual triple-net GAAP revenue.
- Entered into an interim fuel supply and services agreement with Global Partners LP to provide gasoline supply and certain oversight services with respect to approximately 254 locations located in the New York City metropolitan area and New Jersey.
- It will receive monthly payments from gas station operators who occupy these properties under separate license agreements, while remaining responsible for certain costs including maintenance and taxes. Under its agreement with Global Partners, Global will supply fuel to the licensee locations and will pay Getty Realty a fee based on gallons sold.
- Entered into a variety of other fuel supply, direct leases and licenses for the remaining properties, excluding properties being marketed for sale.
- Sold five properties during the months of March and April for approximately $1.5 million.
In select locations, Getty Realty and its new distributor tenants are encountering reluctance by former subtenants (or sub-subtenants) of GPMI to enter into temporary licenses or new sublease agreements offered to them, it said. As a result, Getty Realty and its new distributor tenants may experience temporary disruptions in the collection of rent receipts from these locations. Getty Realty said that it intends to directly or, as to locations subject of new leases, together with its new distributor tenants, pursue the dispossession process to the fullest extent permitted by law.
Jericho, N.Y.-based Getty Realty is a leading, publicly traded, U.S. real-estate investment trust (REIT), specializing in ownership and leasing of convenience store/gas station properties and petroleum distribution terminals. The company owns and leases approximately 1,145 properties nationwide.
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