Getty Realty Corp (GTY) 2023 Q3 法說會逐字稿

Good morning, and welcome to Getty Realty's Earnings Conference Call for the Third Quarter 2023. This call is being recorded. (Operator Instructions) Prior to starting the call, Joshua Dicker, Executive Vice President, General Counsel and Secretary of the company will read a safe harbor statement and provide information about non-GAAP financial measures. Please go ahead, Mr. Dicker.

早安，歡迎參加 Getty Realty 2023 年第三季財報電話會議。本次電話會議正在錄音。 （操作員說明）在開始通話之前，公司執行副總裁、總法律顧問兼秘書 Joshua Dicker 將閱讀安全港聲明並提供有關非 GAAP 財務措施的資訊。請繼續，迪克先生。

Thank you, operator. I would like to thank you all for joining us for Getty Realty's third quarter earnings conference call. Yesterday afternoon, the company released its financial and operating results for the quarter ended September 30, 2023. Form 8-K earnings release are available, Form 8-K and earnings release are available in the Investor Relations section of our website at gettyrealty.com.

謝謝你，接線生。我要感謝大家參加 Getty Realty 第三季財報電話會議。昨天下午，該公司發布了截至 2023 年 9 月 30 日的季度財務和營運業績。8-K 表格收益發布已發布，8-K 表格和收益發布可在我們網站 gettyrealty.com 的投資者關係部分獲取。

Certain statements made in the course of this call are not based on historical information and may constitute looking statements. These statements are based on management's current expectations and beliefs and are subject to trends, events and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

本次電話會議中所做的某些陳述並非基於歷史信息，可能構成前瞻性陳述。這些陳述是基於管理層目前的預期和信念，並受到趨勢、事件和不確定性的影響，這些趨勢、事件和不確定性可能導致實際結果與前瞻性陳述中描述的結果有重大差異。

Examples of forward-looking statements include our 2023 guidance and may also include statements made by management, including those regarding the company's future operations, future financial performance or investment plans and opportunities. We caution you that such statements reflect our best judgment based on factors currently known to us and that actual events or results could differ materially.

前瞻性陳述的例子包括我們 2023 年的指導，也可能包括管理層所做的陳述，包括有關公司未來營運、未來財務表現或投資計劃和機會的陳述。我們提醒您，此類陳述反映了我們根據目前已知因素做出的最佳判斷，實際事件或結果可能存在重大差異。

I refer you to the company's annual report on Form 10-K for the year ended December 31, 2022, and our subsequent filings made with the SEC for a more detailed discussion of the risks and other factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. You should not place undue reliance on forward-looking statements which reflect our view only as of the date hereof.

我建議您參閱該公司截至2022 年12 月31 日的10-K 表格年度報告，以及我們隨後向SEC 提交的文件，以更詳細地討論可能導致實際結果與實際結果存在重大差異的風險和其他因素。今天發表的任何前瞻性陳述中明示或暗示的內容。您不應過度依賴前瞻性陳述，這些陳述僅反映我們截至本新聞稿發布之日的觀點。

The company undertakes no duty to update any forward-looking statements that may be made in the course of this call. Also, please refer to our earnings release for a discussion of our use of non-GAAP financial measures, including our definition of adjusted funds from operations, or AFFO, and our reconciliation of those measures to net earnings. With that, let me turn the call over to Christopher Constant, our Chief Executive Officer.

該公司不承擔更新本次電話會議中可能做出的任何前瞻性陳述的責任。此外，請參閱我們的收益發布，以了解我們使用非 GAAP 財務指標的討論，包括我們對營運調整資金 (AFFO) 的定義，以及我們對這些指標與淨利潤的調整。接下來，讓我將電話轉給我們的執行長 Christopher Constant。

Thank you, Josh. Good morning, everyone, and welcome to our earnings call for the third quarter of 2023. Joining us on the call today are Mark Olear, our Chief Operating Officer; and Brian Dickman, our Chief Financial Officer. I will lead off today's call by providing commentary on our financial results and investment activities, along with some perspective on our outlook in light of the ongoing economic uncertainty.

謝謝你，喬許。大家早安，歡迎參加我們的 2023 年第三季財報電話會議。今天加入我們電話會議的是我們的營運長 Mark Olear；和我們的財務長布萊恩迪克曼。在今天的電話會議中，我將首先對我們的財務表現和投資活動發表評論，並根據持續的經濟不確定性對我們的前景提出一些看法。

As usual, Mark will then take you through our portfolio, and Brian will further discuss our financial results and guidance. In the third quarter, we produced strong AFFO per share growth of 5.6% and for the 9 months ended September 30, our AFFO per share grew a healthy 5.7%. This growth continues to be driven by our robust investment activity and thoughtful capital markets execution. Year-to-date, we have surpassed the company's previous record for annual investments by deploying $269 million, including $155 million in the third quarter.

像往常一樣，馬克將帶您了解我們的投資組合，布萊恩將進一步討論我們的財務表現和指導。第三季度，我們的 AFFO 每股強勁成長了 5.6%，截至 9 月 30 日的 9 個月，我們的 AFFO 每股健康成長了 5.7%。這種成長持續受到我們強勁的投資活動和深思熟慮的資本市場執行的推動。今年迄今為止，我們部署了 2.69 億美元，其中第三季投資了 1.55 億美元，打破了公司先前的年度投資記錄。

We also continue to maintain an attractive investment pipeline with more than $95 million under contract for the acquisition and development funding of convenience stores, auto service centers and express tunnel car washes, all of which we expect to fund over the next 6 to 9 months. When combined with our investments to date, our pipeline provides visibility into our earnings for the fourth quarter and our growth prospects for the next year.

我們也繼續保持有吸引力的投資管道，合約金額超過9,500 萬美元，用於便利商店、汽車服務中心和快速隧道洗車場的收購和開發資金，我們預計將在未來6 至9 個月內為所有這些項目提供資金。與我們迄今為止的投資相結合，我們的管道可以讓我們了解第四季度的收益和明年的成長前景。

The ongoing success of our investment platform and steady growth in our cash flow and earnings can be attributed in part to our successful capital markets activity. Since January of 2022, we have raised more than $600 million of attractively priced capital, much of it with a forward or delayed draw execution, including our recently announced $150 million unsecured term loan, $225 million of long-term unsecured notes and more than $230 million of common equity.

我們投資平台的持續成功以及現金流和收益的穩定成長部分歸功於我們成功的資本市場活動。自2022 年1 月以來，我們已籌集了超過6 億美元的價格有吸引力的資本，其中大部分是遠期或延遲提取執行，包括我們最近宣布的1.5 億美元無擔保定期貸款、2.25 億美元的長期無擔保票據和超過230 美元萬普通股。

Our strategic approach to raising capital has enhanced our ability to lock in accretive investment spreads, support a committed investment pipeline that is fully funded and maintain a balance sheet with moderate leverage and ample capacity for future transactions. We believe that Getty's business model of focusing on convenience and automotive retail assets provides us with a competitive advantage in the market, given our sector expertise, tenant relationships and track record of execution.

我們籌集資金的策略方法增強了我們鎖定增值投資利差的能力，支持資金充足的承諾投資管道，並維持適度槓桿的資產負債表和充足的未來交易能力。我們相信，鑑於我們的行業專業知識、租戶關係和執行記錄，蓋蒂專注於便利性和汽車零售資產的業務模式為我們提供了市場競爭優勢。

Many of our completed transactions this year have come from repeat business, meaning we already have a lease in place with our counterparty and are capitalizing on our relationships and transaction experience to bring new properties into the company's portfolio with tenants that are well known to us and who have a proven record performance through economic cycles.

我們今年完成的許多交易都來自重複業務，這意味著我們已經與交易對手簽訂了租賃合同，並正在利用我們的關係和交易經驗，將新房產納入公司的投資組合，租戶均為我們熟悉的租戶。他們在經濟週期中擁有公認的創紀錄表現。

We have also successfully increased our initial yields with these tenants to reflect current market pricing while not sacrificing our rigorous underwriting standards. The net result is that we continue to buy the same quality properties in sectors where we have a significant knowledge of industry trends and with tenants we know well, but our prices that reflect the rapid rise in financing costs. As we look beyond our pipeline and deal activity, the real estate market has changed significantly since the end of the second quarter.

我們也成功地提高了這些租戶的初始收益率，以反映當前的市場定價，同時又不犧牲我們嚴格的核保標準。最終結果是，我們繼續在對行業趨勢有深入了解且熟悉租戶的行業中購買相同品質的房產，但我們的價格反映了融資成本的快速上升。當我們超越管道和交易活動時，房地產市場自第二季末以來發生了巨大變化。

Rapid changes in the availability and cost of capital have outpaced sellers' expectations for the value of their properties. For Getty specifically, we believe prospective tenants who are often making long-term financing decisions related to M&A or development are in the process of reevaluating their capital structures to reflect less access to capital and lower values attributable to real estate financing.

資金的可用性和成本的快速變化超出了賣家對其房產價值的預期。特別是對於 Getty 而言，我們認為經常做出與併購或開發相關的長期融資決策的潛在租戶正在重新評估其資本結構，以反映獲得資本的機會較少以及房地產融資帶來的價值較低。

While we continue to identify opportunities to acquire assets that meet our rigorous underwriting standards, we expect to be disciplined in our capital deployment, while the market continues to fully digest the reality of higher cap rates for the foreseeable future. Given our performance year-to-date, committed and funded investment pipeline and earnings growth expectations, our Board approved an increase of 4.7% in our recurring quarterly dividend to $0.45 per share. This represents the tenth straight year we have grown the dividend alongside our earnings growth.

雖然我們繼續尋找機會收購符合我們嚴格承保標準的資產，但我們預計我們的資本部署將受到嚴格約束，而市場將繼續充分消化在可預見的未來資本化率較高的現實。鑑於我們今年迄今的業績、承諾和資助的投資管道以及盈利增長預期，我們的董事會批准將我們的經常性季度股息增加 4.7% 至每股 0.45 美元。這是我們連續第十年在獲利成長的同時增加股利。

Our Board believes this annual increase is appropriate as it maintains a stable payout ratio and continues to increase Getty's retained cash flows to have more eventful capital to meet our growth objectives. Additionally, as a result of our year-to-date investment in capital activities, we are raising our 2023 AFFO guidance by $0.01 to $2.24 to $2.25 per share. Getty is well positioned for the current environment, given the essential nature of our assets, the operating strength of our institutional tenant base and our well-positioned balance sheet, including low to moderate leverage and ample liquidity.

我們的董事會認為，這一年度成長是適當的，因為它保持了穩定的派息率，並繼續增加 Getty 的保留現金流，以便擁有更多的資本來滿足我們的成長目標。此外，由於我們今年迄今對資本活動的投資，我們將 2023 年 AFFO 指導值提高了每股 0.01 美元至 2.24 美元至 2.25 美元。鑑於我們資產的本質、機構租戶群的營運實力以及良好的資產負債表（包括低至中等的槓桿率和充足的流動性），Getty 在當前環境中處於有利地位。

In a challenging market, we believe that we benefit from the targeted nature of our investment strategy through our sector expertise and strong relationships with operators in our space. Our disciplined approach, which emphasizes owning high-quality real estate in major metro areas and partnering with growing regional and national operators will continue to afford us with attractive acquisition and development funding opportunities to underwrite. As a result, we remain confident in our ability to create shareholder value through earnings growth and portfolio diversification.

在充滿挑戰的市場中，我們相信，透過我們的行業專業知識以及與該領域運營商的牢固關係，我們可以從投資策略的針對性中受益。我們的嚴謹方法強調在主要都市區擁有優質房地產並與不斷增長的地區和國家運營商合作，這將繼續為我們提供有吸引力的收購和開發融資機會來承保。因此，我們對透過獲利成長和投資組合多元化創造股東價值的能力仍然充滿信心。

With that, I'll turn the call over to Mark to discuss our portfolio and investment activities.

接下來，我會將電話轉給馬克，討論我們的投資組合和投資活動。

Thank you, Chris. As of the end of the quarter, our lease portfolio included 1,074 net lease properties and 3 active redevelopment sites. Excluding the active redevelopments, occupancy was 99.7%, and our weighted average lease term was 9 years. Our portfolio spans 40 states plus Washington, D.C., with 61% of our annualized base rent coming from top 50 MSAs and 79% coming from top 100 MSAs.

謝謝你，克里斯。截至本季末，我們的租賃投資組合包括 1,074 個淨租賃物業和 3 個活躍的重建場地。不包括活躍的重建項目，入住率為 99.7%，加權平均租賃期為 9 年。我們的投資組合涵蓋 40 個州以及華盛頓特區，年化基本租金的 61% 來自前 50 個 MSA，79% 來自前 100 個 MSA。

Our rents are well covered with trailing 12-month tenant rent coverage ratios of 2.7x. Turning to our investment activities. We had a record quarter, so Getty invested $155 million, net of amounts previously funded across 50 properties in a number of different property types and attractive MSAs. Highlights of this quarter's investments include the acquisition of 9 convenience stores located in Las Vegas and various markets across Texas and the Southeast was $55.1 million non-carwash properties, which are located through the U.S. for $48.5 million.

我們的租金得到了很好的保障，過去 12 個月的租戶租金保障率為 2.7 倍。轉向我們的投資活動。我們的季度創紀錄，因此 Getty 投資了 1.55 億美元，扣除先前為多種不同房產類型和有吸引力的 MSA 的 50 處房產提供的資金。本季投資的亮點包括以 5,510 萬美元收購位於拉斯維加斯以及德州和東南部各個市場的 9 家便利商店，其中以 4,850 萬美元收購位於美國各地的非洗車物業。

To drive through quick service restaurants and an auto service center, we totaled $3.5 million and 9 under construction car wash properties for $31.5 million. As part of this acquisition, we provide additional funding during the construction period to complete these projects. We also advanced incremental development funding in the amount of $16.6 million, including accrued interest for the construction of 20 new-to-industry car washes, convenience stores and auto service centers. These assets are either already owned by the company and are under construction or will be acquired via sale-leaseback transactions at the end of the project's expected construction periods.

為了開車穿過快餐店​​和汽車服務中心，我們總共花了 350 萬美元，並花了 3,150 萬美元建造了 9 個在建洗車設施。作為此次收購的一部分，我們在施工期間提供額外資金以完成這些項目。我們也預付了1,660萬美元的增量發展資金，包括興建20個新產業洗車場、便利商店和汽車服務中心的應計利息。這些資產要么已歸公司所有並正在建設中，要么將在項目預計建設期結束時通過售後回租交易獲得。

For the third quarter, the aggregate initial cash yield on our investment activity was approximately 7.2% and the weighted average lease term for acquired properties was 17.2 years. Subsequent to quarter end, we invested an additional $3.3 million towards the development of an express tunnel car wash property. Cumulative results of our year-to-date investment activity is $269 million deployed, an initial cash yield of approximately 7.2% across all of our target asset types.

第三季度，我們投資活動的初始現金收益率總計約為 7.2%，所收購房產的加權平均租賃期限為 17.2 年。季度末後，我們又投資了 330 萬美元開發快速隧道洗車設施。我們今年迄今的投資活動的累積部署成果為 2.69 億美元，我們所有目標資產類型的初始現金收益率約為 7.2%。

Looking ahead regarding the $95 million of commitments to fund acquisitions and developments, we expect to fund these transactions for the next 6 to 9 months at an average initial yield of approximately 20 basis points in excess of our investment activity year-to-date. From a market perspective, in many cases, we are now submitting offers that are approaching 150 basis points more than where we transacted in 2021 and 2022.

展望未來，為收購和開發提供資金的 9,500 萬美元承諾，我們預計在未來 6 至 9 個月內為這些交易提供資金，平均初始收益率比我們年初至今的投資活動高出約 20 個基點。從市場角度來看，在許多情況下，我們現在提交的報價比 2021 年和 2022 年的交易高出接近 150 個基點。

The amount of cap rate expansion, combined with the short duration in which these moves in asset pricing have occurred, has caused many sellers to pause. We believe the market will adjust to the changed economic landscape and will stabilize as sellers evolve and modify their expectations. The direct nature of our investment strategy affords us the opportunity discuss these changes directly to the decision-makers, and we believe that we can continue to identify accretive investments as we move through the remainder of 2023 and into 2024.

資本化率擴張的幅度，加上資產定價變動的持續時間很短，導致許多賣家暫停了行動。我們相信市場將適應不斷變化的經濟形勢，並隨著賣家的發展和預期的調整而趨於穩定。我們投資策略的直接性質使我們有機會直接與決策者討論這些變化，我們相信，在 2023 年剩餘時間和 2024 年，我們可以繼續確定增值投資。

Moving to our redevelopment platform. During the quarter, we invested approximately $460,000 in projects which are in various stages in our pipeline. We completed one redevelopment project where rent commenced on an automotive parts store in Pennsylvania, which is leased to AutoZone. We invested a total of approximately $200,000 in the project, generated incremental return on invested capital of approximately 21%.

轉向我們的重建平台。本季度，我們對處於不同階段的項目投資了約 46 萬美元。我們完成了一個重建項目，開始出租賓州的一家汽車零件商店，該商店已租給 AutoZone。我們在該專案中總共投資了約 20 萬美元，投資資本增量回報率約為 21%。

We also completed the renovation of a convenience store property in Connecticut, which was already subject to a long-term triple net lease. In this project, we invested $450,000 in our incremental return on the invested capital was 7.5%. We ended the quarter with 3 properties under active redevelopment and other in various stages of feasibility planning for potential recapture from our net lease portfolio and expect to continuously complete projects over the next few years.

我們還完成了康乃狄克州一家便利商店物業的翻新工程，該物業已經簽訂了長期三重淨租賃合約。在這個專案中，我們投資了 45 萬美元，投資資本的增量報酬率為 7.5%。本季結束時，我們有 3 處房產正在積極重新開發，其他房產正處於可行性規劃的各個階段，以便從我們的淨租賃投資組合中收回潛力，並預計在未來幾年內持續完成專案。

Turning to our asset management activities for the third quarter. We exited 1 leased property and sold 2 properties for aggregate gross proceeds of $1.9 million.

轉向我們第三季的資產管理活動。我們退出了 1 處租賃房產並出售了 2 處房產，總收益為 190 萬美元。

With that, I turn the call over to Brian for our financial results.

說完，我把電話轉給布萊恩，詢問我們的財務表現。

Thanks, Mark. Good morning, everyone. Last night, we reported AFFO per share of $0.57 for Q3 2023 representing a 5.6% increase to (inaudible) $0.04 per share we reported in the prior year. FFO and net income in the third quarter were $0.53 and $0.31 per share, respectively. Total revenues were $50.5 million for the third quarter, representing a [23%] increase over the prior year.

謝謝，馬克。大家，早安。昨晚，我們報告 2023 年第三季 AFFO 每股 0.57 美元，較前一年報告的每股 0.04 美元（聽不清楚）增長 5.6%。第三季的 FFO 和淨利潤分別為每股 0.53 美元和 0.31 美元。第三季總營收為 5,050 萬美元，較上年成長 [23%]。

Base rental income, which excludes tenant reimbursements and GAAP revenue adjustments grew 10.5% to $40.9 million. This growth continues to be driven by our acquisition activity and recurring rent estimates, our leases, the additional contribution from rent commencement and completed redevelopment projects. On the expense side, G&A costs were $5.7 million in the quarter as compared to $5 million in the third quarter of 2022.

基本租金收入（不包括租戶報銷和 GAAP 收入調整）增加了 10.5%，達到 4,090 萬美元。這一增長繼續受到我們的收購活動和經常性租金估算、我們的租賃、租金開始和已完成的重建項目的額外貢獻的推動。在費用方面，本季的一般管理費用為 570 萬美元，而 2022 年第三季為 500 萬美元。

Change in G&A was primarily due to increased personnel costs, including noncash stock-based compensation. Total property costs were $8.7 million for the quarter as compared to $5.7 million for the third quarter of 2022. This quarter included the growth in property operating expenses in both periods was primarily due to the timing of reimbursable real estate tax payments, partially offset by lower rent expense and also included an increase in leasing and redevelopment expenses due to additional professional fees and demolition costs for redevelopment projects.

一般管理費用的變動主要是因為人員成本增加，包括非現金股票薪酬。本季的物業總成本為870 萬美元，而2022 年第三季為570 萬美元。本季包括兩個時期的物業營運支出的成長，主要是由於可償還房地產稅的支付時間，部分被較低的房地產稅所抵消。租金支出，還包括由於再開發項目的額外專業費用和拆除成本而導致的租賃和再開發費用的增加。

Environmental expenses, which are highly variable due to a number of estimates from noncash adjustments of $313,000 in the quarter as compared to $632,000 for the third quarter of 2022.

環境費用變化很大，原因是本季非現金調整額為 313,000 美元，而 2022 年第三季為 632,000 美元。

Turning to the balance sheet and our capital markets activities. We ended the quarter with $750 million of total debt outstanding. This consisted of $675 million of senior unsecured notes with a weighted average interest rate of 3.9% and a weighted average maturity of 6.7 years as well as $75 million drawn on our $300 million revolving credit facility.

轉向資產負債表和我們的資本市場活動。本季結束時，我們的未償債務總額為 7.5 億美元。其中包括 6.75 億美元的優先無抵押票據，加權平均利率為 3.9%，加權平均期限為 6.7 年，以及從我們的 3 億美元循環信貸額度中提取的 7,500 萬美元。

As of September 30, net debt to EBITDA was 5x and total debt to total capitalization was 35%, while total indebtedness to total asset value as calculated pursuant to our credit agreement was 37%. Taking into account unsettled forward equity of $48.4 million, net debt to EBITDA will be approximately 4.7x. Subsequent to quarter end, as Chris mentioned, we closed on a new $150 million senior unsecured term loan. Term loan matures in October 2025 with one 12-month extension option. The term loan includes an initial draw of $75 million that was funded at close and used to repay amounts outstanding under our revolving credit facility and an additional $75 million that can be funded at our option any time over the next 6 months.

截至 9 月 30 日，淨債務與 EBITDA 比率為 5 倍，總債務與總資本之比為 35%，而根據我們的信貸協議計算的總債務與總資產價值之比為 37%。考慮到 4,840 萬美元的未結算遠期股本，EBITDA 淨負債約為 4.7 倍。正如克里斯所提到的，季度末後，我們完成了一項新的 1.5 億美元高級無抵押定期貸款。定期貸款將於 2025 年 10 月到期，並具有 12 個月的延期選項。定期貸款包括初始提取的 7,500 萬美元，在交易結束時提供資金，用於償還我們循環信貸安排下的未償還金額，以及我們可以在未來 6 個月內隨時選擇提供的額外 7,500 萬美元。

In connection with the closing of the term loan, we entered into interest rate swaps to fix SOFR for the full principal loan. Including the impact of these swaps, the effective interest rate on the term loan is 6.13% based on our leverage ratio as of September 30. So a little bit more color on the term loan. We are obviously pleased to secure this financing in the current environment. It demonstrates continued access to capital and the support of our banking relationships, while providing us with a flexible loan that we can refinance in 2 to 3 years as the capital markets stabilize and importantly, as we continue to scale our platform and position our balance sheet for additional credit ratings at a possible public bond issuance.

在定期貸款結束時，我們進行了利率互換，以固定全額本金貸款的 SOFR。包括這些掉期的影響，根據我們截至 9 月 30 日的槓桿率，定期貸款的實際利率為 6.13%。因此，定期貸款的色彩更加豐富。我們顯然很高興在當前環境下獲得這筆融資。它展示了我們能夠持續獲得資本和銀行關係的支持，同時為我們提供靈活的貸款，隨著資本市場的穩定，我們可以在2 到3 年內進行再融資，重要的是，隨著我們繼續擴展我們的平台並定位我們的資產負債表在可能的公開債券發行中獲得額外的信用評級。

While the shorter term prevented us from taking greater advantage of the inverted yield curve upon fixing the rate, we were still able to lock in material accretion relative to the returns on our invested capital while keeping our investment pipeline funded and containing the flexibility I mentioned.

雖然短期阻止我們在確定利率後更大程度地利用反向收益率曲線，但我們仍然能夠鎖定相對於我們投資資本回報率的實質性增長，同時保持我們的投資渠道資金充足並包含我提到的靈活性。

Moving to our equity capital markets activities. During the quarter, we settled 2.2 million shares of common stock are subject to outstanding forward sale agreements, which generated $71.6 million in net proceeds.

轉向我們的股權資本市場活動。本季度，我們根據未完成的遠期銷售協議結算了 220 萬股普通股，產生了 7,160 萬美元的淨收益。

We currently have approximately 1.5 million shares of common stock still subject to outstanding forward equity agreements, which upon settlement are anticipated to raise gross proceeds of approximately $48.4 million. Returning to the $95 million of committed investment pipeline. As Chris mentioned, these transactions are fully funded through a combination of proceeds from outstanding forward equity agreements and the new term loan. Pro forma for these investments in capital activity, we expect our balance sheet to remain well positioned to support the company's growth.

目前，我們約有 150 萬股普通股仍受未履行的遠期股權協議的約束，該協議結算後預計將籌集約 4,840 萬美元的總收益。回到 9,500 萬美元的承諾投資管道。正如克里斯所提到的，這些交易的資金全部來自未償還的遠期股權協議和新定期貸款的收益。對於這些資本活動投資，我們預期我們的資產負債表將保持良好狀態，以支持公司的成長。

Leverage is expected to remain in line with our target range of 4.5x to 5.5x net debt to EBITDA and we expect to maintain ample capacity under our revolving credit facility. As our investment pipeline evolves, we continue to evaluate all capital sources to ensure that we're funding transactions in an accretive manner while also maintaining our investment-grade credit profile. With respect to our environmental liability, we ended the quarter at $22.7 million which was a reduction of $438,000 since the end of 2022. Our net environmental remediation spend in the third quarter was approximately $1.6 million.

槓桿率預計將保持在 EBITDA 淨債務 4.5 倍至 5.5 倍的目標範圍內，並且我們預計在循環信貸安排下保持充足的產能。隨著我們投資管道的發展，我們將繼續評估所有資本來源，以確保我們以增值的方式為交易提供資金，同時保持我們的投資等級信用狀況。就我們的環境負債而言，本季末我們的環境負債為 2,270 萬美元，自 2022 年底以來減少了 438,000 美元。第三季我們的淨環境修復支出約為 160 萬美元。

Finally, with respect to our 2023 earnings outlook as a result of our year-to-date investment activity and capital markets transactions, we are raising our 2023 AFFO per share guidance to a range of $2.24 to $2.25 from our previous range of $2.23 to $2.24. As a reminder, our outlook includes transaction and capital markets activities to date, but does not otherwise assume any potential acquisitions, dispositions or capital market activities for the remainder of the year.

最後，關於我們今年迄今的投資活動和資本市場交易帶來的 2023 年盈利前景，我們將 2023 年 AFFO 每股指引從之前的 2.23 美元至 2.24 美元上調至 2.24 美元至 2.25 美元。 。提醒一下，我們的展望包括迄今為止的交易和資本市場活動，但不假設今年剩餘時間內的任何潛在收購、處置或資本市場活動。

Specific factors which continue to impact our guidance include variability with respect to certain operating expenses to deal pursuit costs, as well as $300,000 of anticipated demolition costs for redevelopment projects that run through property costs on our P&L.

繼續影響我們指導的具體因素包括處理追求成本的某些營運費用的可變性，以及透過我們損益表中的財產成本進行重建項目的 300,000 美元的預期拆除成本。

With that, I'll ask the operator to open the call for questions.

之後，我將要求接線員打開提問電話。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions) Our first question comes from Todd Thomas from KeyBanc.

謝謝。我們現在將進行問答環節。 （操作員說明）我們的第一個問題來自 KeyBanc 的 Todd Thomas。

This is (inaudible) on for Todd Thomas. I was just wondering if you could disclose what the blended cash investment yield was on the 3Q investments? And could you break out the yields on the acquisitions versus the development funding?

這是托德·托馬斯（托德·托馬斯）的（聽不清楚）。我只是想知道您能否透露第三季投資的混合現金投資收益率是多少？能否詳細列出收購收益與開發資金的收益？

Yes, in the remarks, 7.2% was the initial cash yield in the third quarter. And then roughly, we're the same return between acquisitions and development funding.

是的，言論中7.2%就是第三季的初始現金收益率。粗略地說，我們在收購和開發資金之間的回報是相同的。

Okay. And do you see yields trending higher given the rise in borrowing costs? How should we think about the yields given that you already have a committed pipeline in place?

好的。鑑於借貸成本上升，您是否認為收益率會走高？鑑於您已經有一個承諾的管道，我們應該如何考慮收益率？

Yes. Again, with the $95 million that's committed, as we mentioned, we think that, that's going to be about 20 basis points over where we invested in the third quarter. And then as Mark mentioned in his remarks, we are putting out new letters of intent and rates are significantly higher than those levels.

是的。同樣，正如我們所提到的，我們認為，鑑於已承諾的 9500 萬美元，這將比我們第三季度的投資高出約 20 個基點。然後，正如馬克在演講中提到的那樣，我們正在發布新的意向書，並且費率明顯高於這些水平。

And the one nuance I'd just add -- this is Brian, to Chris' comments is development funding transactions by design are 9, 15-month type transaction. So some of the dollars that are going out in development funding are still at yields from transactions that were cut 12, 18 months ago versus the sale leasebacks on the more traditional acquisition activity, obviously shorter time frame a little bit more reflective above the current environment. So I think it's consistent with what Chris said, we're seeing yields absolutely move up. with some dollars going out are still based on transactions that were cut a while back versus others will reflect the current environment.

我剛剛補充的一個細微差別是——這是 Brian，對 Chris 的評論是，開發資金交易的設計是 9 個月、15 個月類型的交易。因此，用於開發資金的一些美元仍然是 12、18 個月前削減的交易收益，與更傳統的收購活動的銷售回租相比，顯然更短的時間框架更能反映當前環境。所以我認為這與克里斯所說的一致，我們看到收益率絕對會上升。一些美元的流出仍然基於不久前削減的交易，而其他美元則反映了當前的環境。

Okay. And where are you still seeing the best opportunities in pricing? Has convenience store competition alleviate? Or what about automotive and car wash?

好的。您在哪裡仍能看到最佳的定價機會？便利商店競爭是否有所緩解？或是汽車和洗車怎麼樣？

Yes, it's Mark. So we're very active in all our asset classes. We're getting a lot of momentum across all the categories. Certainly, some of the asset classes tend to be a little stickier on pricing as market cycle through, but we remain competitive and a tremendous amount of opportunity certainly in the convenience store, car wash, automotive parts, I would say that the most competitive probably now is the quick service restaurant category as far as pressure on pricing.

是的，是馬克。因此，我們在所有資產類別中都非常活躍。我們在所有類別中都獲得了巨大的動力。當然，隨著市場週期的推移，某些資產類別的定價往往會有點黏性，但我們仍然具有競爭力，並且在便利商店、洗車、汽車零件方面肯定有大量機會，我想說最具競爭力的可能是就定價壓力而言，現在是快餐店類別。

Our next question comes from Wes Golladay from Baird.

我們的下一個問題來自貝爾德 (Baird) 的韋斯·戈拉迪 (Wes Golladay)。

Just a follow-up on the question about the cap rates moving higher. I guess, how do you balance that versus having rent coverage maybe come under a little bit of pressure? Or are you seeing the operations of the tenants kind of grow in line with this more inflationary environment?

只是關於上限利率上升的問題的後續行動。我想，您如何平衡這一點與租金承保可能面臨的一點壓力？或者您看到租戶的營運隨著這種通膨加劇的環境而成長？

Wes, it's Mark. So we certainly haven't deviated from our underwriting model and our total valuation look at each deal and each portfolio. Yes. So we haven't seen much of a deterioration in tenant rent coverage on the underwriting of new opportunities. So I think the answer is yes. The performance of the tenants, at least that we're underwriting is in lockstep with the move in the market generally.

韋斯，是馬克。因此，我們當然沒有偏離我們的承銷模式，我們對每筆交易和每個投資組合的總估值。是的。因此，我們並沒有看到承保新機會的租戶租金覆蓋率有太大惡化。所以我認為答案是肯定的。租戶的表現，至少是我們承保的租戶的表現，與市場的整體走勢是同步的。

The other factor, Wes, it's Brian, on proceeds that tenants received. So if you think of a typical sale leaseback transaction, right, where we're going to set rent at a rent coverage ratio and then apply some cap rates to that to determine proceeds to the tenant, right? The math would lead to either higher rent, which is what you're alluding to, but given our underwriting and the consistency there, as Mark mentioned, the net result would be less proceeds to the tenant, which is reflective of Chris's opening comments about folks in the space just having to come to the realization that the real estate isn't as worth as much today as it may have been 18, 30 months ago.

另一個因素，韋斯，是布萊恩，關於租戶收到的收益。因此，如果您考慮典型的售後回租交易，對吧，我們將按照租金覆蓋率設定租金，然後應用一些上限率來確定租戶的收益，對嗎？數學會導致租金上漲，這就是你所提到的，但考慮到我們的承保和一致性，正如馬克所提到的，最終結果將是租戶的收益減少，這反映了克里斯的開場評論該領域的人們必須意識到，今天的房地產價值並不像18、30 個月前那麼值錢。

Okay. Yes. I appreciate that, Brian. I guess then with capital becoming a little bit more scarce and maybe looking at alternative forms of equity for you, you do have -- part of the portfolio that's probably not appreciated by the market where you could probably still get relatively low cap rates. Do you have any increased appetite to start monetizing some of these lower cap rate assets?

好的。是的。我很感激，布萊恩。我想，隨著資本變得更加稀缺，也許你會考慮其他形式的股權，你確實擁有——部分投資組合可能不會被市場認可，但你可能仍然可以獲得相對較低的上限利率。您是否有更大的興趣開始將這些較低資本化率的資產貨幣化？

Yes. We certainly look at the portfolio and are aware of where we think there is maybe outsized value. And we do dispose of properties, and we have disposed of small portfolios over the past couple of years. Certainly something we're aware of. We'll look around. But right now, I think the balance sheet is in great shape. The term loan certainly helps with that, we still have roughly $50 million unsettled forward equity. So we're looking at all the various forms of capital, Wes, and again, we'll transact where it makes sense.

是的。我們當然會查看投資組合，並了解我們認為可能存在巨大價值的地方。我們確實處置了房產，並且在過去幾年中我們處置了小型投資組合。當然是我們知道的事。我們會四處看看。但現在，我認為資產負債表狀況良好。定期貸款肯定對此有所幫助，我們仍有大約 5000 萬美元的未結算遠期資產。因此，韋斯，我們正在研究各種形式的資本，並且我們將在有意義的地方進行交易。

Our next question comes from Mitch Germain from JMP Securities.

我們的下一個問題來自 JMP 證券的 Mitch Germain。

This is Jodi for Mitch. One of the first questions I had is just understanding the composition of the pipeline in terms of asset class and also if you're seeing any changes in the lease structure, maybe more term or escalators?

這是米奇的喬迪。我遇到的第一個問題是了解資產類別方面的管道組成，以及您是否看到租賃結構有任何變化，也許是更多期限或自動扶梯？

So we continue to balance out the pipeline, again, across all our asset classes. During the course of the year, there's always ebbs and flows as deals cycle through. Our goal is to be fairly well distributed across all asset classes, geography, tenant mix, be mindful of the tenant concentration and geographic concentrations. With regard to terms, yes, we've been able to not only push pricing and return, but also in shop or put some pressure on annual escalators where appropriate, the term -- the actual lease terms are still roughly at 15- to 20-year base term on the initial commitment. But yes, the market certainly is -- conversations certainly have yielded well, all deal points to create overall value for us.

因此，我們再次在所有資產類別中繼續平衡管道。一年中，隨著交易的循環，總是會有起起落落。我們的目標是在所有資產類別、地理位置、租戶組合中進行相當好的分佈，並注意租戶集中度和地理集中度。關於條款，是的，我們不僅能夠推動定價和回報，而且還能夠在適當的情況下對年度自動扶梯施加一些壓力，實際的租賃條款仍然大致在 15 至 20初始承諾的一年基準期限。但是，是的，市場確實如此——對話肯定取得了良好的成果，所有交易要點都為我們創造了整體價值。

Fair. Yes. So I mean, C-stores have been declining in composition overall, but in terms of asset pricing there, are you seeing similar price declines for those as compared to other assets in your pipeline? How is that faring?

公平的。是的。所以我的意思是，便利商店的整體組成一直在下降，但就那裡的資產定價而言，與您管道中的其他資產相比，您是否看到這些價格出現類似的下降？情況如何？

Yes, I think, well, there are 2 thoughts in that question. So first off, if you look at our portfolio, one of our objectives is to diversify across convenience and automotive retail real estate. So with a background of our business being primarily C-store, it's natural in our eyes that you see the composition of our rent become more balanced across all the categories that we're investing in. So we're still very comfortable with the C-store sector, acquired 9 great assets this quarter. There are certainly C-store assets in our pipeline. So I think that's a natural evolution for Getty to be more balanced from a rent perspective.

是的，我認為，這個問題有兩個想法。首先，如果你看看我們的投資組合，我們的目標之一是在便利設施和汽車零售房地產領域實現多元化。因此，鑑於我們的業務主要是C 店的背景，在我們看來，您自然會看到我們的租金組成在我們投資的所有類別中變得更加平衡。因此，我們仍然對C 店感到非常滿意商店板塊，本季收購了9項重大資產。我們的通路中肯定有便利商店資產。所以我認為從租金的角度來看，蓋蒂變得更加平衡是一個自然的演變。

In terms of pricing within the various asset classes. Again, I'm going to come back just to broader theme in those, in my remarks, which is I think in retail real estate today, I think there is an expectation that has to be understood by sellers that pricing has changed. Financing costs, I have dictated that. In order to transact where sellers have the kind of have an expectation that rates are going to be higher for longer, meaning that cap rates are going up. And therefore, the value of their real estate is going down.

就各種資產類別的定價而言。再次，我將回到更廣泛的主題，在我的演講中，我認為在今天的零售房地產中，我認為賣家必須理解定價已經改變的預期。融資成本，我已經說了。為了在賣家有預期的情況下進行交易，利率將在更長時間內保持在較高水平，這意味著資本化率正在上升。因此，他們的房地產價值正在下降。

And I'll just add to that, which I think is implicit in what Chris is saying is something we've talked about before but the nature of the sale-leaseback business, which is our primary origination platform versus just aggregating assets from a variety of sellers. Our counterpart, when we're sitting across the table from somebody, they're not just looking at a price to sell an asset and what return that generates for them or does not, right?

我只想補充一點，我認為克里斯所說的隱含著我們之前討論過的內容，但售後回租業務的性質是我們的主要發起平台，而不是僅僅聚合來自各種資產的資產。的賣家。我們的對手，當我們坐在某人的桌子對面時，他們不僅僅關注出售資產的價格以及為他們帶來或不產生的回報，對嗎？

These are our finance professionals that are raising capital right, for their companies from store growth, for acquisitions, for technology initiatives, whatever it may be, so they're making, we're making real estate investments, but they're making financing decisions, right? And so they're looking at their financing alternatives and sale leaseback financing is just one of those, and we happen to be particularly competitive in that area today. So as long as our cost of capital or in turn their cost of capital allows them to meet their hurdle rates, right, we can find opportunities to transact.

這些是我們的財務專業人士，他們正在為他們的公司籌集資金，包括商店增長、收購、技術計劃，無論是什麼，所以他們在做，我們在做房地產投資，但他們在做融資決定，對嗎？因此，他們正在尋找融資替代方案，而售後回租融資只是其中之一，而我們今天恰好在該領域特別有競爭力。因此，只要我們的資本成本或反過來他們的資本成本允許他們達到最低門檻，對吧，我們就能找到交易機會。

But I think the main point you're hearing from all of us is that there's some transparency in our discussions, right? And given our relationships, our knowledge, what we're saying to these tenants "look our costs are going up. We're hoping for a business we can transact, has to meet our real estate underwriting expectations and it has to meet our pricing expectations". And we've had some success certainly over the last year in being able to drive those conversations to transact.

但我認為您從我們所有人那裡聽到的主要觀點是我們的討論具有一定的透明度，對嗎？考慮到我們的關係、我們的知識，我們對這些租戶所說的「看起來我們的成本正在上升。我們希望我們能夠交易的業務，必須滿足我們的房地產承保期望，並且必須滿足我們的定價」期望」。去年我們在推動這些對話進行交易方面確實取得了一些成功。

Fair. So just on that point, are all the different asset classes in our pipeline seeing similar kind of price pressure? Or is it different for different categories?

公平的。那麼就這一點而言，我們管道中的所有不同資產類別是否都面臨類似的價格壓力？還是說不同的品類有不同的規定？

This is Brian. I think it's really driven by where we are in our life cycle with the different asset classes. So certainly, car wash and CNG, where we are going direct to those tenants frequently and primarily, you see that the most (inaudible) through this. We are just ramping up our relationships as we just entered that sector, say, within the last 18 to 24 months. And QSR, we've really just started dedicating efforts to within the last 12 months. So we're still working to build up those relationships so that we can have those conversations.

這是布萊恩。我認為這實際上是由我們在不同資產類別的生命週期中所處的位置所驅動的。當然，在洗車和壓縮天然氣方面，我們經常且主要直接向這些租戶提供服務，您會透過此看到最多（聽不清楚）的內容。比方說，在過去 18 到 24 個月內，我們只是進入該領域，因此我們正在加強我們的關係。至於 QSR，我們實際上在過去 12 個月內才剛開始投入精力。因此，我們仍在努力建立這些關係，以便我們能夠進行這些對話。

So it's a long way of saying probably see it more in car wash in CNG and we're getting there in auto service. And in QSR, we're still sort of making our way through ramping up in that sector so that we can, again, drive that type of activity.

因此，從長遠來看，可能在 CNG 洗車中看到更多，而我們在汽車服務中也正在實現這一目標。在 QSR 領域，我們仍在努力擴大該領域的規模，以便我們能夠再次推動此類活動。

And just the last one for me. You mentioned that the pipeline is fully funded and part of that was a term loan. So do we have any expected time line for the second tranche of the term loan?

對我來說只是最後一件。您提到管道資金充足，其中一部分是定期貸款。那麼，我們對第二期定期貸款有預期的時間表嗎？

Yes. It will be within the next 6 months, right, because that's the term of that. And as always, we're looking to balance, funding the transactions, maintaining our leverage profile, maintaining liquidity. So between that and the equity, we'll draw on each of those pools as it makes sense to maintain the balance sheet and that will occur over the next 6 months.

是的。它將在未來 6 個月內完成，對吧，因為這就是期限。一如既往，我們尋求平衡，為交易提供資金，維持我們的槓桿狀況，維持流動性。因此，在這個和股權之間，我們將利用每個池，因為維持資產負債表是有意義的，這將在未來 6 個月內發生。

Operator, are there any more questions on the line?

接線員，還有其他問題嗎？

Okay. It does look like we have one more Akhil Guntupalli from JPMorgan.

好的。看起來我們確實又多了一位來自摩根大通的 Akhil Guntupalli。

This is Akhil from JPMorgan. My first question is on how does the cost of a sale leaseback compare with your operator's other financing alternatives right now?

我是摩根大通的阿基爾。我的第一個問題是，售後回租的成本與營運商目前的其他融資選擇相比如何？

I think your question was how does the pricing of sales leaseback compare to the various other financing alternatives that our tenants have.

我認為您的問題是售後回租的定價與我們租戶擁有的各種其他融資選擇相比如何。

Yes.

是的。

And when I say -- what I'd say is that most of our tenants being private large regional or national operators, their access to capital is generally private equity or the bank market or private lending market. All of that has gotten more expensive and tougher to transact, quite frankly. So I think what we're seeing is a lot more underwriting opportunities where sale leaseback probably looks a little more attractive to our tenants.

當我說時，我想說的是，我們的大多數租戶都是私人大型區域或國家運營商，他們獲得資本的管道通常是私募股權、銀行市場或私人借貸市場。坦白說，所有這些都變得更加昂貴，交易也更加困難。因此，我認為我們看到的是更多的承保機會，其中售後回租可能對我們的租戶更具吸引力。

With all that said, I think that we maintain a fairly rigorous underwriting process here and a focus on real estate and tenant and property -- over down to the property level. So I don't think it necessarily changes our view of what's attractive or not. But I'd say that sale leaseback certainly looks more appealing to the tenants today than it did probably 6, 9 months ago.

話雖如此，我認為我們在這裡保持相當嚴格的核保流程，並專注於房地產、租戶和財產——一直到財產層面。所以我認為這不一定會改變我們對什麼有吸引力或沒有吸引力的看法。但我想說，現在的售後回租對租戶來說顯然比六、九個月前更具吸引力。

Understood. Yes. One last question. How much opportunity do you think is there in the car wash business as operators consolidate locations in that space?

明白了。是的。最後一個問題。您認為，隨著業者整合洗車產業的網點，洗車產業有多少機會？

Yes. I think car wash was a sector that had a lot of capital flowing into it over the last several years. Obviously, the view of the tenants in that space, there is a lot of room for new store development as the express tunnel model take share from traditional car washes. Again, our view in that space has been we want to be with large established operators who have a track record of operating as well as growing in the sector. And I think we've done a pretty good job with that in terms of picking our relationships there.

是的。我認為洗車是一個在過去幾年有大量資本流入的行業。顯然，在該空間的租戶看來，由於快速隧道模式搶走了傳統洗車場的份額，新店的發展空間很大。同樣，我們在這個領域的觀點是，我們希望與擁有該行業運營和發展記錄的大型運營商合作。我認為我們在選擇我們在那裡的關係方面做得非常好。

We're focused on not only providing capital to the sector, but really partnering with the right tenants long term in the power space. And I do think you're going to see some consolidation there. And again, our view is that our tenants are going to do well in this environment and they'll probably continue to grow, whether that's new store development or through M&A.

我們不僅專注於為該行業提供資金，而且真正與電力領域合適的租戶進行長期合作。我確實認為你會看到一些整合。再說一次，我們的觀點是，我們的租戶將在這種環境中表現良好，並且他們可能會繼續成長，無論是新店開發還是透過併購。

This concludes our question-and-answer session. I would like to turn the floor back over to Chris Constant for closing comments.

我們的問答環節到此結束。我想把發言權交還給克里斯康斯坦斯（Chris Constant）以供結束評論。

Great. Thank you, everyone, for joining us for our third quarter earnings call. We look forward to getting back on everybody when we report our fourth quarter and full year results for 2023.

偉大的。感謝大家參加我們的第三季財報電話會議。我們期待在報告 2023 年第四季和全年業績時為大家帶來回報。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。