JERICHO, N.Y. -- Getty Realty Corp. reported that it has completed the acquisition of 59 convenience store and gas station properties located in nine states throughout the United States, including Hawaii, for approximately $78 million, and expects to acquire additional properties from Trustreet in the next 30 days that are part of the previously announced 68-property transaction.
Leo Liebowitz, Getty's chairman and CEO, said, This acquisition transaction is consistent with our continuing focus on profitable growth through acquisitions of quality properties [image-nocss] throughout the United States, and will add important tenant and geographic diversity to our portfolio.
Getty said it believes that the acquisition will be accretive to its annual earnings, FFO and AFFO per share of common stock.
Last week, Getty Realty announced that it had amended and restated its definitive senior unsecured revolving credit facility with JPMorgan Chase Bank NA, which acted as administrative agent for a group of domestic commercial banks.
That transaction, among other items, increased the aggregate amount of the credit facility to $175 million, reduced the interest rate on LIBOR-based borrowings by 0.25% and extended the term of the facility to March 2011.
Under the terms of the credit facility, the company will have the options to extend its term for one additional year and/or increase the amount of the facility by $125 million to $300 million, subject to approval by the company's board and the bank syndicate.
The credit facility agreement contained customary terms and conditions, including customary financial covenants. The facility permits borrowings at an interest rate equal to the sum of a base rate plus a margin ranging from 0.0% to 0.25% or a LIBOR rate plus a margin ranging from 1% to 1.5%.
The applicable margin is based on the company's leverage ratio, as defined in the credit facility agreement. The company said it believes that the credit facility's terms, conditions and covenants will not limit its current business practices.
This increased credit facility will permit us to continue our focus on profitable growth through acquisitions of quality properties throughout the United States, Liebowitz said last Thursday.
Jericho, N.Y.-based Getty Realty is the largest publicly traded real estate investment trust (REIT) in the United States specializing in the ownership and leasing of c-store/gas station properties and petroleum distribution terminals. It owns and leases more than 1,100 properties throughout the United States. In 1997, it spun off its petroleum marketing business to shareholders as a separate New York Stock Exchange (NYSE)-listed company, Getty Petroleum Marketing Inc., which was acquired in 2000 by a subsidiary of OAO Lukoil, one of Russia's largest integrated oil companies. Getty Realty leases approximately 90% of its properties to Getty Petroleum Marketing on a long-term net basis.The other properties are leased to individual operators and petroleum distributors.
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