NEW YORK - Getty Realty Corp . (NYSE: NYSE:GTY), a real estate investment trust (REIT) specializing in convenience, automotive, and other single-tenant retail properties, has increased its quarterly cash dividend. The company's Board of Directors announced the dividend hike to $0.47 per common share, marking a 4.4% rise from the previous payout.
The new dividend is scheduled to be distributed on January 9, 2025, to shareholders of record as of December 26, 2024. This move reflects the company's continued commitment to delivering shareholder value through regular dividend payments.
As of June 30, 2024, Getty Realty's portfolio boasted 1,124 freestanding properties across 42 states in the United States, as well as Washington, D.C. The company's focus on net lease agreements typically involves long-term contracts that provide stable and predictable income, often with tenants responsible for most property expenses.
This dividend announcement is based on a press release statement from Getty Realty Corp. It is an indicator of the company's financial health and its ability to generate sufficient cash flow to return capital to shareholders. Dividends are generally viewed as a sign of a company's confidence in its current operations and future earnings.
Investors often consider the stability and growth of dividends as an important factor when evaluating a company's investment potential. Getty Realty's increase in its quarterly dividend may be seen as a positive signal to the market, reflecting a strong operational performance and a solid financial position.
The company's strategic focus on retail real estate, particularly in sectors that are less susceptible to economic downturns, such as convenience stores and automotive services, has contributed to its resilient portfolio performance.
Getty Realty's decision to raise its dividend will likely be well-received by investors looking for steady income streams, especially in a market environment where reliable dividends are highly valued. The company has not disclosed any further financial details or future guidance in conjunction with this dividend increase.
In other recent news, Getty Realty Corp. has been making significant strides, according to recent developments. The company saw an upgrade from BofA Securities, shifting from Neutral to Buy, with a new price target set at $34.00. This upgrade came on the back of Getty Realty's potential for growth and acquisition, particularly in the current lower rate environment.
In addition, Getty Realty has issued an additional 525,000 shares of common stock as part of a forward sale agreement, following an initial offering of 3.5 million shares. This move was supported by an underwriting agreement with several banks, including BofA Securities, J.P. Morgan, and Goldman Sachs.
Financially, the company's growth has been substantial, with a 15% increase in annualized base rent and adjusted funds from operations (AFFO) per share in Q2 2024. Getty Realty also raised its full-year AFFO guidance, reflecting confidence in its investment strategy and portfolio management.
Furthermore, the company secured a significant underwriting agreement with a consortium of banks, pertaining to the sale of 3.5 million shares of common stock, with forward sale agreements also in place.
Lastly, Getty Realty announced the pricing of a public offering of 3.5 million shares of common stock at $30.10 per share. The offering included a forward sale component, and the company granted the underwriters a 30-day option to purchase up to an additional 525,000 shares.
InvestingPro Insights
Getty Realty Corp.'s recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts an impressive dividend yield of 5.6%, making it an attractive option for income-focused investors. This high yield is supported by Getty's consistent dividend growth, with InvestingPro Tips revealing that the company has raised its dividend for 7 consecutive years and maintained payments for 30 years.
The company's financial health appears robust, with InvestingPro data showing a revenue growth of 14.02% over the last twelve months as of Q2 2024, reaching $197.03 million. This growth is complemented by a strong gross profit margin of 88.85%, indicating efficient operations and potentially explaining the company's ability to sustain and increase its dividend payments.
Getty Realty's stock performance has been noteworthy, with a one-year price total return of 28.98% as of the latest data. This performance, coupled with the fact that the stock is trading near its 52-week high (98.72% of the high), suggests investor confidence in the company's business model and future prospects.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for Getty Realty Corp., providing a deeper understanding of the company's financial position and market outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.