Getty Realty Corp. (GTY, Financial) filed Quarterly Report for the period ended 2010-06-30.
Getty Realty Corp. has a market cap of $712.92 million; its shares were traded at around $24.36 with a P/E ratio of 13.61 and P/S ratio of 8.43. The dividend yield of Getty Realty Corp. stocks is 7.8%. Getty Realty Corp. had an annual average earning growth of 3.6% over the past 5 years.GTY is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.
We manage our exposure to interest rate risk by minimizing, to the extent feasible, our overall borrowing and monitoring available financing alternatives. Our interest rate risk as of June 30, 2010 has decreased significantly, as compared to December 31, 2009 as a result of the repayment of $106.6 million of floating interest rate debt. We entered into a $45.0 million LIBOR based interest rate Swap Agreement, effective through June 30, 2011, to manage a portion of our interest rate risk. The Swap Agreement is intended to hedge $45.0 million of our current exposure to variable interest rate risk by effectively fixing, at 5.44%, the LIBOR component of the interest rate determined under our existing Credit Agreement or future exposure to variable interest rate risk due to borrowing arrangements that may be entered into prior to the expiration of the Swap Agreement. As a result of the Swap Agreement, as of June 30, 2010, the $45.0 million of LIBOR based borrowings outstanding under the Credit Agreement bear interest at an effective rate of 6.69%. As a result, we are, and will be, exposed to interest rate risk to the extent that our aggregate borrowings floating at market rates exceed the $45.0 million notional amount of the Swap Agreement. As of June 30, 2010, our aggregate borrowings floating at market rates exceeded the notional amount of the Swap Agreement by $24.0 million. We do not foresee any significant changes in how we manage our interest rate risk in the near future.
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Getty Realty Corp. has a market cap of $712.92 million; its shares were traded at around $24.36 with a P/E ratio of 13.61 and P/S ratio of 8.43. The dividend yield of Getty Realty Corp. stocks is 7.8%. Getty Realty Corp. had an annual average earning growth of 3.6% over the past 5 years.GTY is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We are exposed to interest rate risk, primarily as a result of our $175.0 million Credit Agreement and our $25.0 million Term Loan Agreement. We use borrowings under the Credit Agreement to finance acquisitions and for general corporate purposes. We used borrowings under the Term Loan Agreement to partially finance an acquisition in September 2009. Total borrowings outstanding as of June 30, 2010 under the Credit Agreement and the Term Loan Agreement were $45.0 million and $24.0 million, respectively, bearing interest at a weighted-average rate of 2.24% per annum, or a weighted-average effective rate of 5.58% including the impact of the Swap Agreement discussed below. The weighted-average effective rate is based on (i) $45.0 million of LIBOR rate borrowings outstanding under the Credit Agreement effectively fixed at 5.44% by the Swap Agreement plus a margin of 1.25% and (ii) $24.0 million of LIBOR based borrowings outstanding under the Term Loan Agreement floating at market rates (subject to a 30 day LIBOR floor of 0.4%) plus a margin of 3.1%. Our Credit Agreement, which expires in March 2011, permits borrowings at an interest rate equal to the sum of a base rate plus a margin of 0.0% or 0.25% or a LIBOR rate plus a margin of 1.0%, 1.25% or 1.5%. The applicable margin is based on our leverage ratio at the end of the prior calendar quarter, as defined in the Credit Agreement, and is adjusted effective mid-quarter when our quarterly financial results are reported to the Bank Syndicate. Based on our leverage ratio as of June 30, 2010, the applicable margin will remain at 0.0% for base rate borrowings and will decrease from 1.25% to 1.0% during the third quarter for LIBOR rate borrowings.We manage our exposure to interest rate risk by minimizing, to the extent feasible, our overall borrowing and monitoring available financing alternatives. Our interest rate risk as of June 30, 2010 has decreased significantly, as compared to December 31, 2009 as a result of the repayment of $106.6 million of floating interest rate debt. We entered into a $45.0 million LIBOR based interest rate Swap Agreement, effective through June 30, 2011, to manage a portion of our interest rate risk. The Swap Agreement is intended to hedge $45.0 million of our current exposure to variable interest rate risk by effectively fixing, at 5.44%, the LIBOR component of the interest rate determined under our existing Credit Agreement or future exposure to variable interest rate risk due to borrowing arrangements that may be entered into prior to the expiration of the Swap Agreement. As a result of the Swap Agreement, as of June 30, 2010, the $45.0 million of LIBOR based borrowings outstanding under the Credit Agreement bear interest at an effective rate of 6.69%. As a result, we are, and will be, exposed to interest rate risk to the extent that our aggregate borrowings floating at market rates exceed the $45.0 million notional amount of the Swap Agreement. As of June 30, 2010, our aggregate borrowings floating at market rates exceeded the notional amount of the Swap Agreement by $24.0 million. We do not foresee any significant changes in how we manage our interest rate risk in the near future.
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