GTY earnings analysis
What we found in GTY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Getty Realty delivered Q2 revenue of $59.051 million, up 10.9% year over year and 1.7% sequentially, while GAAP diluted EPS rose to $0.36 from $0.24 and AFFO per share reached $0.62. Operating margin expanded sharply year over year to 42.6%, though it declined sequentially as Q1 benefited from an environmental reserve credit. The company materially accelerated acquisition deployment, funded partly by greater debt and forward equity issuance; liquidity included $377.0 million of revolver availability and $4.8 million of cash.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 10.9% year over year
- Q2 total revenue was $59.051 million, comprising $58.554 million of rental-property revenue and approximately $0.497 million of interest income. This was up $5.791 million, or 10.9%, from approximately $53.260 million a year earlier and up approximately $1.001 million, or 1.7%, from Q1 2026.
- Earnings and AFFO increased
- GAAP net earnings were $22.585 million, or $0.36 per diluted share, versus $14.014 million, or $0.24, in Q2 2025. AFFO increased to $38.848 million ($0.62 per diluted share) from $33.967 million ($0.59).
- Year-over-year operating margin expanded
- Calculated operating income was $25.172 million, a 42.6% operating margin, versus approximately $16.755 million and 31.5% a year ago. Sequential margin declined from approximately 71.9% in Q1, principally because Q1 included a large environmental-expense credit.
- Portfolio deployment more than doubled
- Investment activity accelerated: the company invested $162.6 million across 67 properties in the first six months of 2026, compared with $78.4 million across 33 properties in the prior-year period. Acquisitions included 30 auto service centers and 20 drive-thru quick-service restaurants.
- Operating cash flow improved
- Operating cash flow rose $11.378 million to $74.790 million for the first six months. Cash used for investing was $149.177 million, reflecting growth investment; the filing does not disclose a quarterly free-cash-flow measure.
- Environmental reserve liability reduced
- Environmental reserve exposure was reduced: prospective remediation liabilities fell to $8.4 million at June 30 from $15.9 million at December 31, after removal of the remaining $7.7 million unknown-reserve liability.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Debt increased despite revolver repayment
- Total debt increased to $1.073 billion at June 30, 2026 from $1.000 billion at December 31, 2025. Although credit-facility borrowings declined to $73.0 million from $250.0 million, the company issued $250.0 million of 5.76% senior notes due January 2036.
- Higher funding costs pressure earnings
- Interest expense increased $1.363 million year over year to $12.267 million in Q2, driven by higher average borrowings and higher average interest rates. A 1.0% increase in market rates would reduce 2026 net income and cash flow by approximately $0.4 million based on $73.0 million of revolver borrowings.
- Environmental and litigation exposure remains
- The company had $8.4 million of environmental-remediation accruals and $5.0 million accrued for legal matters at June 30, 2026. Management states that Newark Terminal/Lower Passaic River and Pennsylvania and Maryland MTBE matters could materially affect liquidity, dividends, or stock price.
- Forward equity issuance creates dilution risk
- Future equity settlement could dilute holders: 5.8 million shares subject to forward sales agreements were outstanding at June 30 and are anticipated to generate approximately $190.5 million in gross proceeds. The company also completed a 4.0 million-share forward offering in February 2026 that had not been settled as of June 30.
- No material risk-factor updates
- Item 1A states there were no material changes to risk factors disclosed in the December 31, 2025 10-K and March 31, 2026 10-Q. The filing nevertheless notes that dividends are not assured; $60.1 million, or $0.97 per share, was paid during the first six months of 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.36
- Operating margin
- 42.6%
What they said about what is next.
The 10-Q provides no numeric revenue, GAAP EPS, or AFFO guidance. Liquidity commentary states that 5.8 million forward-sale shares are anticipated to generate approximately $190.5 million of gross proceeds upon settlement.
The filing reads better than the one before it.
What came before.
- 10-Q · April 23, 2026
- Getty Realty reported Q1 2026 total revenues of $57,844,000 (up $5,684,000 or ~11.2% year-over-year) and generated net earnings of $26,629,000, or $0.43 per diluted share. AFFO was $38,981,000 (AFFO/diluted $0.63),…
- 10-K · February 12, 2026
- Getty Realty (GTY) positions itself as a specialist net-lease REIT focused on convenience, automotive and other single-tenant retail properties, pursuing growth via acquisitions, development funding advances and…
- 10-Q · April 24, 2025
- Getty Realty reported Q1 2025 total revenues of $52,330,000, up from $48,970,000 in Q1 2024 (+$3.36M, +6.9%), but diluted EPS fell to $0.25 from $0.30 a year ago. Operating income was $26,424,000 (operating margin…
- 10-K · February 13, 2025
- Getty Realty (GTY) is a net-lease REIT concentrated in convenience, automotive and other single-tenant retail properties. As of December 31, 2024 the Company owned or controlled 1,118 properties (1,085 owned, 33 leased)…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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