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Getty Realty: A 5%+ Yield And Relative Safety

Published Sun, 28 Jun 2020 12:16:48 -0400 on Seeking Alpha

Seeking AlphaREITsGetty Realty: A 5%+ Yield And Relative SafetyJun. 28, 2020 12:16 PM ET|| About: Getty Realty Corp. (GTY)by: Josh ArnoldJosh Arnold Long/short equitySummaryGetty is trading very near its pre-crash levels.
The stock has rebounded because the trust's business is largely unaffected by COVID-19.
With a stable earnings platform, and a 5%+ yield, Getty could work for income investors.

Image source
Convenience store and automotive-focused REIT Getty Realty (GTY) has recovered nicely from the panic lows set a few months ago. The stock has nearly doubled off of its March nadir to trade very near where it did prior to the crash.
Many REITs have been irreparably harmed by forced economic shutdowns across the country – those focused on entertainment come to mind – but Getty is anything but cyclical, and I think it is a good long candidate for income-focused investors as a result.

Why I like Getty
Getty has a huge portfolio of convenience store, gas station and other automotive-related properties across large portions of the country.

Source: Investor presentation
Its net lease properties number nearly a thousand in 35 states, with over half of its properties in top 25 MSAs. Its leases are long term and its portfolio boasts an enviable 99% occupancy rate.
The trust looks for high-quality tenants with proven business models that provide essential services to consumers. This set of criteria makes it such that tenants generally remain for a long time in Getty’s properties, and with Getty selecting properties with positive long-term growth fundamentals – such as population density and traffic – its outlook and stability are favorable.
Speaking of tenants, Getty has a fairly diversified list of companies it works with.

Source: Investor presentation
Among these tenants are highly-recognizable consumer brands, as well as automotive servicers. No tenant is in excess of 15% of average base rent,... Read more