Getty Realty Hikes Quarterly Dividend 14.3% (GTY)
By: Ned Piplovic,
Getty Realty Corp. (NYSE:GTY) just hiked its quarterly dividend distribution 14.3% and rewards its shareholders with a 4.6% yield.
Additionally, the company has boosted its annual dividend payout at double-digit-percentage average rates over the past five years. Getty Realty’s share price alone jumped 13% in the past year and produced a total return of 22% when including dividend payments.
The REIT’s next ex-dividend date will be on December 20, 2017, and the pay date is scheduled for the first week of next year on January 4, 2018.
Getty Realty Corp. (NYSE:GTY)
The Getty Realty Corp. is a publicly traded real estate investment trust (REIT). The company specializes in the ownership, leasing and financing of convenience store and gasoline station properties. As of November 2017, the Getty Realty’s property portfolio consisted of 873 properties located in 28 states across the United States and Washington, D.C., under a variety of brands that include 76, Aloha, BP, Citgo, Conoco, Exxon, Getty, Mobil, Shell and Valero. Almost half of the company’s current properties are concentrated in New York, New Jersey and Connecticut, with New York accounting for more than 30% alone. The typical property operates as a convenience store and gasoline station, and is located on between one-half and three quarters of an acre of land. The property leases typically have initial terms of 15 or 20 years with successive renewal terms of up to 20 years.
The company’s current weighted average remaining lease term, excluding renewals, is approximately 11 years and 64% of current leases mature after 2026. Additionally, 88% of Getty Realty’s net lease portfolio is under unitary or master leases, which reduce credit exposure from individual sites. Founded in 1955 with the ownership of one gasoline service station in New York City, the company held its initial public offering in 1971 under the name Power Test Corp. Beginning on January 1, 2001, the company elected to be treated as a REIT under federal income tax laws. The company’s headquarters are in Jericho, NY.
The company hiked its quarterly payout 14.3% from previous quarter’s $0.28 amount to the current $0.32 distribution. This current quarterly payout converts to a $1.28 annualized distribution and a 4.6% yield. Getty Realty’s current yield outperformed the 4.43% average yield of the Retail Industry REITs segment by 3.45% and the 3.9% average yield of all the companies in the Financial sector by 17.5%.
Over the past two decades, the REIT cut its dividend only once in 2012. However, since 2012, the company has boosted its annual payout by an average rate of more than 20% per year. That annual growth rate is equivalent to a 5.4% average quarterly growth rate over the past 18 consecutive quarters. In addition to the steadily growing regular dividend, the company also paid special dividends ranging from $0.05 to $0.22 in three out the last four years.
The share price rose 7.8% from $24.71 on December 6, 2016, to $26.63 by the end of February 2017. After that quick jump, the share price traded sideways between $25 and $26 until the beginning of July, when the share price dropped sharply 10% in just over a week between July 3, 2017, and July 11, 2017, to reach its 52-week low of $23.15.
However, the share price completely recovered by July 7, 2017, and continued to rise towards its 52-week high of 29.82 on October 17, 2017, for a total gain of 28.8% between the year’s low and the new high. Since the mid-October peak, the share price pulled back slightly and closed on December 6, 2017, at $27.93, which is 6.3% below the October 52-week high. However, the Dec. 6 closing price is 13% higher than it was one year ago, 20.6% above the July 11, 2017, low and almost 60% higher than it was five years ago.
Over the last 12 months, the REIT rewarded its shareholders with a 22% total return on investment. The shareholders earned a 77% total return over the last three years and nearly doubled their money over the last five years.
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