Getty Realty: Strong Dividend Growth And Valuation Makes It A Solid REIT

Summary:

• Getty Realty’s 5-year AFFO growth beats out peers like Realty Income, EPR Properties, and NNN REIT, only trailing behind Agree Realty.
• AFFO for 2024 is expected to grow 2.7% from AFFO brought in for 2023.
• The company’s dividend is also well-covered by an AFFO payout ratio below 80%, and they have well-laddered debt maturities with none due until 2025.
• The Biden Administration is pushing for 2/3 of all new vehicles to be electric in the next 8 years. Getty has a high concentration in convenience & gas stations, which could impact the REIT going forward.
• With interest rates expected to decline, GTY offers investors the potential for double-digit upside.

Introduction

Since the start of interest rate hikes, I’ve been building out my REIT holdings in my portfolio, taking advantage of the opportunity Mr. Market has given us investors. While building out current positions, I’ve also

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GTY over the next 72 hours. 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.

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