JERICHO, N.Y. — Getty Realty Corp. (NYSE: GTY) has acquired 77 convenience stores and retail motor fuel stations for $214 million. Located in California, Colorado, Washington, Nevada and Oregon, the acquired properties operate under several brands, including 76, Conoco, Circle K, 7-Eleven and My Goods Market.
“This acquisition… achieves several important objectives for our company including materially expanding our geographic reach primarily in high growth regions and adding a new institutional quality tenant,” says David B. Driscoll, Getty’s president and CEO. “We believe the addition of these properties, combined with other activity in our portfolio, has materially improved the overall credit quality of our revenue stream. In addition, we believe we are positioned to provide sustained cash flow growth for shareholders in the coming years.”
The 77 properties were acquired from affiliates of Pacific Convenience and Fuels LLC and simultaneously leased to United Oil, a leading regional convenience store and gas station operator. United Oil is triple-net leasing the 77 properties acquired by Getty for an initial term of 20 years, with three five-year renewal options. The company expects to receive $16.7 million of annual revenue from the transaction.
United Oil operates approximately 400 locations in the western United States and is a portfolio company of Fortress Investment Group LLC.
In conjunction with the acquisition transaction, on June 2, the company entered into a new $225 million senior unsecured credit facility with a consortium of banks led by Bank of America and JP Morgan Chase, which replaced its existing $175 million senior secured credit facility.
Getty has also entered into a new $75 million unsecured term loan with The Prudential Insurance Co. of America. The term loan matures in 2023 and bears interest at 5.35 percent.
Getty’s stock price closed at $17.17 on June 3, down from $19.48 one year ago.
— Haisten Willis