Getty Realty Corporation

Good morning and welcome to the Getty Realty fourth quarter 25 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 the 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 fourth quarter and year-end Earnings conference call. Yesterday afternoon, the company released its financial and operating results for the quarter and year ended December 31, 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 2026 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 judgment based on factors currently known to us and that actual events or results 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 made 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. We should not place undue reliance on forward-looking statements, which reflect our view only as of 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-GAF financial measures, including our definition of adjusted funds from operations or AFFO and our 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 fourth quarter and year-end 2025. Joining us on the call today are Mark O'Lear, our Chief Investment Officer and Chief Operating Officer, Brian Dickman, our Chief Financial Officer, and RJ Ryan, our Senior Vice President of Acquisitions. As previously announced, RJ will succeed Mark as Chief Investment Officer upon Mark's retirement at the end of this month. I will lead off today's call by providing highlights of Getty's 2025 financial performance and investment activity. Mark and RJ will then discuss our portfolio and investments in greater detail, and Brian will provide additional information regarding our earnings, balance sheet, and 2026 AFFO per share guidance. I am pleased to report that the combination of stable rental income from our in-place portfolio and strong yields from acquisitions produced strong rent and earnings growth for the fourth quarter and full year 2025. Getty's annualized base rent grew by nearly 12% in 2025, while AFFO per share was up 5% for the fourth quarter and 3.8% for the full year, which was the high end of our increased earnings guidance. Our in-place portfolio continues to provide a solid foundation for our business, with essentially full occupancy and rent collections and stable rent coverage. Our tenants continue to benefit from consumer trends that drive performance at convenience and automotive retail properties, namely demand for convenience, speed, and do-it-for-me services. And their businesses have proven resilient, as they have historically. Turning to our growth initiatives, for the year, we invested approximately $270 million at an initial cash yield of 7.9%. I would like to highlight a few accomplishments for the year, which demonstrate the effective execution of our strategy to creatively grow and further diversify our portfolio. First, the $100 million sale lease back we closed in October for a 12-property convenience store portfolio in Houston, Texas. These assets are leased to now and forever a growing regional convenience store chain with a dominant market position in densely populated Houston submarkets. Over the last five years, we have acquired more than 60 properties generating nearly 25 million of ABR in Texas, which is now our largest state exposure, including more than 25 properties generating over 14 million of ABR in Houston, which is now our second largest market after New York City. Second, we made a significant commitment to the collision repair sector when we agreed to provide up to 82.5 million of development funding for the construction of 11 new-to-industry collision centers for a top-three operator in the sector. We expect a number of these sites to open in 2026 and look forward to building on our momentum in this subsector of automotive services. We also completed our first travel center investments with existing and new tenants who have expanded their store networks by building or acquiring large-format C-stores and travel centers. We view investing in travel centers as a natural extension of our buy box, and in 2025, we acquired four travel centers for $47.1 million. Additional 2025 highlights include a record year of investments for drive-through quick service restaurants, where deliberate resource allocation and targeted sourcing efforts resulted in Getty investing nearly $40 million across 28 properties, representing approximately 15% of our investment activity for the year. We also continue to allocate capital to dense and growing markets during the year. More than 75% of our 2025 investment activity was in top 100 markets around the U.S., and we increased exposure to a number of attractive metro areas, including Atlanta, Dallas, Houston, Las Vegas, Memphis, and San Antonio. We also demonstrated the consistency of our relationship-based sale-leaseback acquisition strategy during the year by directly negotiating transactions with tenants that drive more than 90% of our closed transactions in 2025, which helped us add 13 new tenants to our portfolio during the year. Finally, our ability to maintain a healthy investment pipeline, which currently consists of approximately 100 million investments under contract, most of which we expect to fund by the end of 2026. Sticking with our pipeline, including opportunities that are in various stages of underwriting and negotiating, our investment team continues to do an excellent job sourcing investment opportunities that fit our well-defined strategy, meet our stringent underwriting criteria, and generate consistent earnings growth. Our collective ability to execute period after period, regardless of market conditions, is a testament to the platform and culture we've established at Getty. As we think about 2026 and beyond, we continue to be excited about our strategy, The sectors we invest in are people and the platform we've built. We believe we are on a path to accelerate our growth trajectory as we expand our relationships, extend our underwriting to new opportunities, and further refine our processes with the help of data-driven analysis to enhance our investment decisions. I'd like to close with some comments on our upcoming management transition. As previously announced, Mark O'Leary is retiring at the end of February. During his time at Getty, Mark broadened our investable universe, redefined our underwriting approach, and created a redevelopment program that has seen us complete more than 30 value-add projects. I want to congratulate Mark on a successful 40-year career and thank him for being my partner for the past decade plus at Getty. We will miss having him here on a daily basis. I'm equally excited to announce that RJ Ryan, our current SVP of acquisitions, will be promoted to the position of Chief Investment Officer. RJ has been with Getty for nearly a decade, has led our acquisitions team since 2018, and is ready to take on additional leadership responsibilities as our CIO. I hope you all enjoy getting to know RJ better as he plays a more visible role with the investment community. With that, I'll turn it over to Mark.