Getty Realty: Double-Digit AFFO Growth, Near 6% Yield Make Them A Long-Term Buy

Summary:

• Getty Realty remains an attractive buy for long-term dividend investors, offering a nearly 6% yield and strong fundamentals despite recent sector cooling.
• GTY has shown robust growth with double-digit FFO & AFFO increases and a solid balance sheet, supporting its expansion and long-term outlook.
• The REIT’s portfolio, focused on convenience stores and car washes, presents some risks but also significant growth potential, especially with favorable interest rate trends.
• Despite trading below peers with a P/AFFO multiple of 13.29x, GTY’s strong fundamentals and conservative payout ratio justify a continued buy rating.
• Their risks include an economic downturn which would likely impact car washes and QSRs, but GTY’s conservative payout ratio, valuation, and manageable debt enhance its investment appeal.

Introduction

Since REITs have cooled off a bit since rallying this past July, some may present attractive buying opportunities, especially if you’re an investor with a long-term outlook. Although many have seen solid price appreciation the past three months, many yields are

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADC, O either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.