GTY

Getty is a well-run net-lease REIT: 1,174 single-tenant convenience, car-wash, QSR and automotive-service properties across 44 states, leased triple-net (tenants pay taxes, maintenance, insurance) with a 9.9-year weighted-average lease term and built-in rent escalators. That structure shows up in the numbers — a 57.2% operating margin and 35.7% net margin — and in the consistency of the model: revenue has climbed every year from $155M (FY2021) to $222M (FY2025), with net income up 11.4% to $79.2M and operating income up 15.5% to $127M last year. This is a genuine income compounder, not a turnaround.

The catch is how the growth is funded and how it's priced. Getty invested ~$273M in new properties in 2025, and the funding mix is debt and equity: long-term debt rose 10% to $995M and the share count grew 8.7% to 59.8M. That dilution is why diluted EPS grew only 8.0% even as net income grew 11.4%, and it's why ROE is a modest 7.4%. Leverage is manageable (liabilities/equity 1.03x), but cash is razor-thin at $8.36M (down 11.8%), so the model depends on continuous access to capital markets — a real vulnerability given the $250M floating-rate Credit Facility, where management discloses a 1% rate increase would cut 2026 net income by ~$2.5M. On dividends, the $109M paid exceeds GAAP net income but is comfortably covered by $127M of operating cash flow (the gap is largely the $61.9M of non-cash D&A), the normal FFO dynamic for a REIT required to distribute 90% of taxable income.