Getty Realty Business Model Canvas

Getty Realty actively cultivates partnerships with automotive service centers and express tunnel car wash operators. This strategic move diversifies their tenant base, lessening dependence on any single industry and bolstering their portfolio's resilience.

These collaborations are crucial for Getty's strategy, focusing on recession-resistant retail sectors. For instance, in 2023, Getty's net rental income grew by 7.1%, reaching $176.6 million, partly fueled by the stable demand in essential services like automotive care.

Getty Realty's key partnerships are foundational to its business model, primarily centering on property owners looking to sell their convenience store and gas station assets, often through sale-leaseback transactions. These relationships are crucial for portfolio growth, as seen in Getty's continued reliance on these deals in 2024.

Collaborations with convenience store and automotive service operators are vital for securing stable rental income and maintaining high occupancy rates. These tenant relationships are strengthened through competitive lease terms and ongoing support, ensuring long-term value.

Furthermore, partnerships with financial institutions provide essential debt and equity financing, enabling Getty to fund acquisitions and capital improvements. In 2024, the company continued to leverage these relationships to manage its capital structure effectively.

Real estate brokers and advisors are instrumental in sourcing new acquisition opportunities and facilitating transactions, providing market intelligence and access to off-market deals.

Getty Realty provides essential capital solutions, with sale-leaseback financing being a cornerstone offering for convenience and automotive retail operators. This strategic financial tool allows businesses to unlock capital tied up in real estate by selling their property to Getty and then leasing it back, ensuring continued operation. This transaction provides immediate liquidity to the operator while simultaneously securing Getty with a stable, long-term tenant.

This sale-leaseback model is a significant driver for Getty's acquisition strategy, acting as a key differentiator in the market. For instance, in 2024, Getty continued to actively deploy capital through these arrangements, demonstrating its commitment to supporting the growth and financial flexibility of its operator partners.

Getty Realty's key activities center on acquiring and developing real estate, primarily for convenience stores and gas stations, but also for auto service centers and car washes. They then lease these properties, often through long-term net lease agreements, ensuring a steady income flow.

A significant part of their strategy involves providing capital solutions, especially through sale-leaseback transactions, which unlocks liquidity for operators while securing Getty with stable tenants. This is complemented by active portfolio management, focusing on diversification across property types and geographies to mitigate risk.

Crucially, Getty Realty manages its financial health by continuously raising equity and debt capital, utilizing instruments like notes and credit facilities. This financial dexterity supports their investment pipeline, operational stability, and commitment to shareholder dividends.

Getty Realty's deep expertise in the net lease real estate model, especially within convenience and automotive retail, is a cornerstone of its business. This specialized knowledge allows them to effectively underwrite properties and cultivate direct relationships with tenants, understanding the unique market dynamics of these sectors.

This focused sector knowledge is crucial for identifying and acquiring attractive investment opportunities while simultaneously managing associated risks. For example, their understanding of fuel-related real estate trends and tenant creditworthiness directly impacts their portfolio's performance and stability.

As of the first quarter of 2024, Getty Realty reported a portfolio of 1,057 properties, with a significant concentration in the convenience store and gas station sector, demonstrating the practical application of their expertise in building and managing a substantial real estate footprint.

Getty Realty's key resources are its extensive real estate portfolio, robust financial capital, deep sector expertise, and strong tenant relationships. The portfolio, numbering 1,137 properties as of June 30, 2025, is strategically diversified across 44 states and Washington, D.C., primarily consisting of net-leased convenience stores, gasoline stations, and automotive service centers. This diversified asset base, coupled with long-term lease agreements averaging approximately 10 years, ensures predictable and stable rental income. Getty's financial strength, with over $400 million in total liquidity as of Q2 2025, enables strategic acquisitions and operational stability. Their specialized knowledge in net lease real estate, particularly within the convenience and automotive retail sectors, allows for effective underwriting and risk management, as evidenced by a 98.5% occupancy rate in Q1 2024.

Getty Realty provides long-term occupancy for its tenant-operators through net leases, offering them crucial stability for their business operations without the complexities of property ownership.

The company actively seeks to be a trusted partner, engaging in ongoing dialogue and supporting tenant growth initiatives, enabling them to concentrate on their core retail operations.

For instance, in 2024, Getty Realty's portfolio comprised 1,054 properties, with a significant portion leased under long-term net lease agreements, underscoring their commitment to tenant stability.

Getty Realty offers investors a dependable income stream through consistent dividends, supported by its portfolio of long-term net lease agreements. This predictable cash flow makes the company attractive for those prioritizing income generation and stability, even in uncertain economic conditions.

The company also serves as a vital capital partner for convenience and automotive retail operators, facilitating growth and operational improvements through sale-leaseback transactions. This allows businesses to unlock equity tied up in real estate, reinvesting it strategically to enhance their competitive edge.

Getty Realty ensures long-term occupancy and operational stability for its tenant-operators by providing net leases, allowing them to focus on their core businesses without property ownership burdens.

While tenants handle daily operations under net leases, Getty Realty prioritizes responsiveness to property issues it oversees, ensuring assets remain functional and attractive. This proactive stance is crucial for maintaining tenant satisfaction and preserving the long-term value of their real estate portfolio.

Getty Realty fosters strong customer relationships through personalized service and consistent communication, aiming for long-term partnerships rather than mere transactions. This approach is evident in their high tenant retention rate and their tailored capital solutions for property owners.

Their commitment extends to transparent investor relations, utilizing regular calls and filings to build confidence and attract capital. This dual focus on tenants and investors underpins Getty Realty's strategy for sustained growth and market stability.

In 2024, Getty Realty reported a 92% tenant retention rate, underscoring the success of their relationship-centric model. Furthermore, their Q1 2024 earnings revealed a 7.5% increase in total revenue, reflecting operational strength driven by these cultivated connections.

Getty Realty's investor relations website is a crucial channel, offering a centralized hub for financial reports, SEC filings, and news releases. This platform ensures transparency and accessibility for investors and analysts, providing essential information for informed decision-making.

In 2024, the company continued to leverage this digital presence to disseminate quarterly earnings call transcripts and presentations, facilitating direct engagement with stakeholders. The website's robust content library supports Getty Realty's commitment to open communication and building investor confidence.

Getty Realty utilizes a multi-pronged approach to reach its customers and stakeholders. This includes direct outreach via in-house acquisition teams and leveraging the extensive networks of commercial real estate brokers, particularly those specializing in the convenience and automotive retail sectors. In 2024, the commercial real estate brokerage sector remained a key conduit for transactions, with specialized brokers facilitating a significant portion of deal flow, especially in niche markets.

Their investor relations website serves as a critical channel for disseminating financial reports, SEC filings, and news, ensuring transparency for investors. In 2024, the company continued to use this platform for quarterly earnings call transcripts and presentations, fostering direct engagement. Industry conferences, like the 2024 National Association of REALTORS® convention which attracted over 40,000 professionals, are vital for networking, market intelligence, and brand building, leading to new leasing and management contracts.

Furthermore, Getty Realty actively engages with financial advisors and analysts covering the net lease and retail REIT sectors. This strategic communication, bolstered by positive independent analyst coverage in 2024 which highlighted their defensive positioning, helps validate their business model and enhance visibility among investors.

Getty Realty actively courts automotive service center operators, a segment that includes tire shops, auto repair garages, and general maintenance facilities. These businesses have specific real estate needs, often requiring locations with good visibility and accessibility for customer traffic.

The company's strategy focuses on providing long-term lease agreements, which offers stability and predictable costs for these service operators. This approach is particularly attractive to businesses that view their physical location as a critical asset for customer acquisition and retention.

In 2023, Getty Realty reported that net lease properties, which often include automotive service centers, constituted a significant portion of their portfolio, demonstrating a clear commitment to this sector. This diversification strategy highlights Getty's understanding of the essential nature of automotive services within local economies.

Independent convenience store and gas station operators, along with larger chains, form a significant customer base for Getty Realty. These businesses rely on Getty for stable real estate solutions, often through sale-leaseback transactions or long-term leases, enabling them to access capital and secure prime locations. Automotive service centers, including tire shops and repair garages, are also key clients, valuing Getty's long-term lease agreements for predictable costs and location stability.

Express tunnel car wash operators represent a growing segment, attracted by Getty's expertise in sourcing specialized sites and providing essential capital for expansion. Getty Realty's commitment to these sectors is evident in its property acquisitions and leasing strategies, reflecting a deep understanding of their operational needs and market dynamics.

Getty Realty, as a Real Estate Investment Trust (REIT), significantly utilizes debt financing to fuel its property acquisitions and development. This reliance on borrowed capital translates directly into substantial interest expenses, primarily stemming from its unsecured notes and revolving credit facilities. For instance, in the first quarter of 2024, the company reported interest expense of $17.9 million.

Effectively managing the cost of this debt is paramount for Getty Realty's profitability. The company actively monitors its financial leverage, aiming for a prudent net debt to EBITDA ratio. This metric helps ensure that the company's earnings are sufficient to cover its debt obligations, thereby safeguarding its financial stability and ability to service its debt.

Getty Realty's cost structure is primarily driven by property acquisitions, interest expenses on debt, and general administrative costs. While the net lease model shifts many operational expenses to tenants, Getty still incurs costs for property oversight, environmental liabilities, and capital expenditures outside lease agreements. Development and redevelopment projects also represent significant capital outlays.

Getty Realty generates income from the financing aspect of its sale-leaseback deals. This means when Getty buys a property and leases it back to the original operator, a significant portion of their revenue comes from the yield on that initial capital investment. This is a core strategy for them.

This financing component effectively acts as a loan, providing the operator with capital while Getty earns a return. For instance, in 2023, Getty Realty completed a $30 million sale-leaseback transaction with a national convenience store operator, highlighting this revenue stream's importance in their portfolio.

Getty Realty's revenue is primarily driven by base rental income from its portfolio of net-leased properties, predominantly convenience stores and gas stations. This consistent income is secured by long-term leases and a near-perfect occupancy rate, ensuring predictable cash flow.

Additional rental income comes from contractual rent escalations, which provide a steady, built-in growth mechanism, and potential percentage rent clauses tied to tenant sales performance. The company also generates revenue through the financing component of its sale-leaseback transactions, effectively earning a yield on capital invested.

Furthermore, Getty Realty benefits from property dispositions, strategically selling assets to recycle capital and realize gains, which contributes to overall profitability. Tenant reimbursements for operating expenses like property taxes and insurance are also a key component, reinforcing the net income characteristic of their lease agreements.