Oct 22, 2026 earnings call — Refuel sale-leaseback and investment activity
Closed a $261 million sale-leaseback with Refuel, part of more than $500 million of year-to-date investments.
Revenue $0.1B (est $0.1B) · EPS $0.40 (est $0.35)
Key quotes
"This was an off-market deal that we negotiated directly with Refuel, a convenience retail operator that we have been cultivating a relationship with since 2019, and who has been a tenant of Getty's since 2021."
"We have more than $500 million of total liquidity at quarter end, including unsettled forward equity and revolver capacity."
"Excluding the active redevelopments, occupancy was 99.7%, and our weighted average lease term has increased to 10.8 years."
Analyst Q&A 8
Refuel deal economics and dispositions
Q (Mitch Germain · Citizens JMP): Analyst asked how Getty weighed lower yields on the Refuel deal against tenant quality, lease structure, and how the deal fits. He also asked whether dispositions will be a growing part of Getty's strategy.
A: Management said they have a long direct relationship with Refuel and are very happy with the negotiated deal, the unitary leases, and the financing. They described the stores as large, modern C-stores with strong branding and complementary QSRs. They also said dispositions and capital recycling are part of the equation and that the disposition platform is being made more programmatic.
"Overall, just again, I think as I mentioned, we're really happy with the deal." — Christopher Constant (CEO)
strategy, liquidity, and tenant repricing
Q (Upal Rana · KeyBanc): Analyst asked about Getty's strategy given current liquidity and leverage levels and how they are staying disciplined. He also asked for details on conversations with tenants about repricing and deal economics.
A: Management said they raised funds aggressively earlier in the year, have done about $500 million year-to-date in acquisitions, and now have a pipeline of $75 million while remaining disciplined on underwriting and accretive spreads. They said movements in rates over the last 60 to 90 days were rapid, and partners are now more willing to engage and adjust pricing; direct relationships let Getty have real-time, constructive conversations and keep most deals moving.
"What we found recently, really in all stages of deals in our pipeline, is a willingness for counterparties to adjust and move with us as the market moves." — RJ Ryan
why short-term loan for Refuel deal
Q (Jana Galan · BofA): Analyst asked how Getty evaluated funding options for the Refuel transaction and about the term loan pricing and structure.
A: Management said the deal was priced around the end of May, so spot cost of capital made it accretive then, and dispositions helped the investment spread. For debt, they chose a shorter-term, fully pre-payable loan because it had lower interest and—importantly—gave balance sheet flexibility, including three extension options that could make it a five-year loan into 2031.
"But there was other rationale, particularly around balance sheet flexibility, that we thought made a lot of sense to go with a shorter term, fully pre-payable loan." — Brian Dickman (CFO)
free cash flow, leverage, and buyers
Q (Rob Stevenson · Huntington): Analyst asked the annual run rate of free cash flow after the increased dividend heading into 2027 and how Getty is thinking about leverage and raising equity if equity doesn't rebound. He also asked about buyer pools for dispositions, including 1031 and bonus depreciation buyers.
A: Management said current free cash flow is about $40 million to $50 million, with a midpoint of about $45 million, which is a helpful funding contributor. They said that free cash flow, when levered, gives meaningful leverage-neutral buying power and that they have ample funding capacity but will be selective and disciplined if spreads are not attractive; Getty also expects bonus depreciation buyers to be an increasingly meaningful buyer pool for dispositions.
"So take the midpoint, about $45 million, which on a relative basis for our size and our typical investment activity notwithstanding this year, can be a nice contributor to funding sources." — Brian Dickman (CFO)
pipeline mix and sale-leasebacks
Q (Alex Fagan · Baird): Analyst asked whether the pipeline is skewing to development, sale-leaseback, or fee-simple acquisitions and whether any sectors stand out. He also asked if partners' willingness to adjust pricing reflects their exposure to floating-rate debt and whether that makes Getty more attractive.
A: Management said sale-leaseback has been coming more into vogue over the last three to six quarters, but there remains a balance with ground-up development; Getty will be discerning on development deals as costs rise. They noted the $75 million pipeline reflects deals struck across different periods, includes development funding and acquisitions, and that tenants are exploring many balance-sheet strategies while still wanting to partner with Getty.
"I think I've talked about it in past quarters that I feel like sale-leaseback has been coming more in vogue over the last, call it three to six quarters." — RJ Ryan
cap rate outlook and guidance drivers
Q (Brad Heffern · RBC): Analyst asked if the roughly 8% cap rates seen in the pipeline will continue or need to move higher to match bond yield moves. He also asked what pushed or pulled guidance this quarter.
A: Management said rates moved quickly in the last 60 to 90 days and cap rates are likely to keep walking up, but they will take each deal case by case and cannot predict a specific level. On guidance, they said there were no material one-time items; variability comes from short-term rate assumptions on revolver balances, timing of funding Refuel (which used more equity in 3Q), and conservative assumptions for potential dead deal costs.
"Given our methodology, Brad, run rate, I'd say the short answer would be no, in terms of material, one time or other." — Brian Dickman (CFO)
diversification and disposition opportunities
Q (Michael Goldsmith · UBS): Analyst asked how Getty's diversification goals change in this environment and where there may be pockets of the portfolio to dispose to recycle capital.
A: Management said they still favor their four focus sectors and will take deals one by one, noting the recent large C-store activity can affect diversification but size and scale matter. They identified two areas to extract value: properties redeveloped into non-core assets for Getty, and properties in highly attractive markets (particularly the Northeast) that may have aggressive alternative-use valuations.
"First is some of the properties that we've redeveloped into what I would call is non-core assets for Getty." — Christopher Constant (CEO)
fuel margins and small credit loss
Q (Akhil Guntupalli · JPMorgan): Analyst asked how fuel margins are trending and what tenants are saying, and separately asked whether the reported 10 basis points credit loss was from a single tenant or a mix of smaller losses.
A: Management said nationally fuel margins remain in that low $0.40 range and are a larger contributor in 2026, helping offset softer in-store visits; portfolio coverage is stable. On the credit loss question, management said they do not know of any realized credit losses and collections have effectively been at 100% (99.9% rounding to 100%).
"Nationally, fuel margins continue to be in that low $0.40 range, which is, again, not a record but is a very healthy number." — Christopher Constant (CEO)