Getty Realty Corporation

Good morning and welcome to Getty Realty's second quarter 2025 earnings call. This call is being recorded. After the presentation, there will be an opportunity to ask questions. Prior to starting the call, Joshua Dicker, Executive Vice President, General Counsel, and Secretary of the company will read a safe harbor statement and provide information about non-GAAP financial measures. Please go ahead, Mr. Dicker.

Thank you, Operator. I would like to thank you all for joining us for Getty Realty's second quarter earnings conference call. Yesterday afternoon, the company released its financial and operating results for the quarter ended June 30, 2025. The Form 8K and earnings release are available in the investor relations section of our website at gettyrealty.com. Certain statements made during this call are not based on historical information and may constitute forward-looking statements. These statements reflect management's current expectations and beliefs and are subject to trends, events, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Examples of forward-looking statements include our 2025 guidance and may include statements made by management, including those regarding the company's future operations, future financial performance, or investment plans and opportunities. We caution you that such statements reflect our best could differ materially I refer you to the company's annual report on form 10 K for the year ended December 31 2024 as well as any subsequent filings with the SEC for a more detailed discussion of the risks and other factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today you should not place undue reliance on forward-looking statements which reflect our view only as today The company undertakes no duty to update any forward-looking statements that may be made during this call. Also, please refer to our earnings release for a discussion of our use of non-GAAP financial measures, including our definition of adjusted funds from operations or AFFO and the reconciliation of those measures to net earnings. With that, let me turn the call over to Christopher Constant, our Chief Executive Officer.

Thank you, Josh. Good morning, everyone, and welcome to our earnings call for the second quarter of 2025. Joining us on the call today are Mark O'Lear, our Chief Operating Officer, and Brian Dickman, our Chief Financial Officer. I will lead off today's call by highlighting our quarterly financial results, accelerating investment activity, and recent tenant performance. Mark will then discuss our portfolio and investment activities, And Brian will provide additional details on our earnings, balance sheet, and 2025 AFFO guidance. Getty had a strong quarter and grew its annualized base rent by 9.9% to approximately $204 million during the second quarter. And we also produced AFFO per share of $0.59, an increase of 1.7% compared to the prior year. Our consistent financial results continue to be driven by the steady performance of our in-place portfolio. With nearly 100% rent collections, annual rent increases averaging 1.8%, and stable rent coverage, our in-place portfolio provides a base for reliable and growing cash rental income. We further enhance that income growth with a creative investment activity supported by prudent balance sheet management. Our pace of underwriting and closing transactions showed acceleration as we moved through the second quarter. Year-to-date, we have closed $95.5 million of investments at an initial cash yield of 8.1%, and operators are taking a noticeably more constructive stance towards moving deals forward. We're also energized by the increasing diversity of opportunities we're seeing and our ability to close transactions across our investable universe. We've deployed meaningful amounts of capital into each of our target property types this year and continue to add new tenants to the portfolio while expanding our geographic footprint. Our acquisitions team is doing an excellent job of identifying transactions that meet our investment criteria with both larger, more established tenants that have broad store networks and emerging high growth tenants that are building platforms across the U.S. Our 90-plus million investment pipeline and the deals we are currently underwriting both reflect this increased transaction activity and diversity of prospects. Our pipeline includes acquisitions or development funding in all of our target sectors, with the majority allocated to automotive service centers. Importantly, the increase in transaction activity that we saw at the end of the second quarter has continued as we move through the third quarter. Coming back to our in-place portfolio and the steady, resilient performance we've consistently seen from our tenants, we reported strong trailing 12 months rent coverage of 2.6 times this quarter. Rent coverage improved for nearly all of our convenience store portfolios, driven by healthy fuel margins, stable fuel volumes, and expanding profit margins inside the store. Additionally, rent coverage for our car wash portfolio showed noticeable improvement for the second consecutive quarter as new to industry sites continued to mature and operators focused on profitability. As we think about recent performance, the evolution of our platform over the last few years, and the opportunities we see ahead, we have more conviction than ever in the sectors in which we invest and in our ability to further scale the company. Our strategy to focus on well-located convenience and automotive retail properties is proven. These are largely recession-resistant businesses providing non-discretionary goods and services to mobile consumers that prioritize convenience, speed, and service. Our approach to underwriting and structuring investments is effective. We emphasize market and real estate fundamentals and strong lease terms to support our investment decisions and mitigate the credit risk real or perceived, inherent in a net lease business. And our results are compelling. Our earnings growth, dividend growth, and leverage compare favorably to peers, as do our portfolio metrics such as occupancy, remaining lease term, tenant rent coverage, and rent collections. Looking ahead, we're going to keep executing on strategy and focus on what we can control. We've demonstrated that we can effectively allocate capital, drive out performance, and create shareholder value We are confident the market will recognize our success. With that, I will let Mark discuss our portfolio and investment activities.