- Enters into New Lease Agreements
- Secures Interim Fuel Supply Agreements
- Sells Five Properties
JERICHO, N.Y.--(BUSINESS WIRE)-- Getty Realty Corp. (GTY) (Getty or the Company) announced that, consistent with the expectations outlined in the Stipulation and Order approved by the U.S. Bankruptcy Court for the Southern District of New York on April 2, 2012, the Companys Master Lease with Getty Petroleum Marketing, Inc. (Marketing) was rejected by Marketing effective April 30, 2012, pursuant to an order of the Bankruptcy Court. This rejection affects all but one of the 788 properties Getty had leased to Marketing. As a result of this action, Getty is repossessing its portfolio of properties immediately.
David B. Driscoll, President and Chief Executive Officer of the Company commented: We are pleased to be able to regain full control of this portfolio in accordance with our expectations and the public statements we made in March. It is our intention to continue the repositioning process that we started at the beginning of the year. While we understand it will take time to complete, the pace is already accelerating, evidenced by interim supply arrangements and new long-term triple-net leases with distributors, along with our ongoing process of selling non-core assets. Certainly, there is much work that still needs to be done, but our team is committed to substantially completing this process in the coming quarters.
Getty also announced that on or about May 1, 2012 it had:
- Entered into long-term triple-net leases comprising 282 locations with affiliates of Lehigh Gas, Chestnut Petroleum Distributors, Ramoco Fuels and Sams Food Stores, as well as adding properties to an existing lease with MWS Enterprises (Arrowmart). The properties are located in New England, Southern New Jersey, Southeastern and Central Pennsylvania and upstate New York (Buffalo) and are anticipated to generate approximately $17 million of annual triple-net GAAP revenue.
- Entered into an interim fuel supply and services agreement with Global Partners, LP to provide gasoline supply and certain oversight services with respect to approximately 254 locations located in the New York City metro area and New Jersey. Getty will receive monthly payments from gas station operators who occupy these properties under separate license agreements, while remaining responsible for certain costs including maintenance and taxes. Under its agreement with Global, Global will supply fuel to the licensee locations and will pay Getty a fee based on gallons sold.
- Entered into a variety of other fuel supply, direct leases and licenses for the remaining properties, excluding properties being marketed for sale.
- Sold five properties during the months of March and April for approximately $1.5 million.
In select locations, Getty and its new distributor tenants are encountering reluctance by former subtenants (or sub-subtenants) of Marketing to enter into temporary licenses or new sublease agreements offered to them. As a result, Getty and its new distributor tenants may experience temporary disruptions in the collection of rent receipts from these locations. Getty intends to directly or, as to locations subject of new leases, together with its new distributor tenants, pursue the dispossession process to the fullest extent permitted by law.
Getty Realty Corp. is the leading publicly-traded real estate investment trust in the United States specializing in ownership and leasing of convenience store/gas station properties and petroleum distribution terminals. The Company owns and leases approximately 1,145 properties nationwide.
For more information on the risks associated with the Company, including risks associated with the Companys relationship with Marketing, see the disclosure under the caption Risk Factors in the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and as updated by the Companys subsequent periodic reports filed under the Securities Exchange Act of 1934, as amended, and the Companys other filings made with the Securities and Exchange Commission.
Forward Looking Statements:
CERTAIN STATEMENTS CONTAINED HEREIN MAY CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN THE WORDS BELIEVES, EXPECTS, PLANS, PROJECTS, ESTIMATES, ANTICIPATES AND SIMILAR EXPRESSIONS ARE USED, THEY IDENTIFY FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON MANAGEMENTS CURRENT BELIEFS AND ASSUMPTIONS AND INFORMATION CURRENTLY AVAILABLE TO MANAGEMENT AND INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. EXAMPLES OF SUCH FORWARD LOOKING STATEMENTS INCLUDE: STATEMENTS (A) MADE BY MR. DRISCOLL; (B) REGARDING THE ANTICIPATED REVENUE FROM THE NEW LONG-TERM TRIPLE-NET LEASES AND (C) STATEMENTS REGARDING THE REPOSITIONING PROCESS, INCLUDING GETTYS ABILITY TO ENTER INTO NEW LEASES OR LICENSE AGREEMENTS AND THE DISPOSSESSION OF EXISTING TENANTS.
INFORMATION CONCERNING FACTORS THAT COULD CAUSE THE COMPANYS ACTUAL RESULTS TO DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS CAN BE FOUND IN THE COMPANYS PERIODIC REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY RELEASE REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT FUTURE EVENTS OR CIRCUMSTANCES OR REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
Getty Realty Corp.
David B. Driscoll, (516) 478-5478
Source: Getty Realty Corp.Copyright Business Wire 2012