Getty Realty Corporation (NYSE:GTY) to Issue Dividend Increase - $0.50 Per Share

Key Points

• Getty Realty raised its quarterly dividend 3.1% to $0.50 per share from $0.485, implying an annualized dividend of $2.00 and a 7.2% yield. The dividend is payable January 7 to shareholders of record December 24.
• The current dividend payout ratio is high at 144.8%, meaning earnings do not fully cover the payout; however, analysts expect a lower forward payout ratio of 76.4% based on projected earnings.
• Analysts maintain a consensus “Moderate Buy” rating with a $36.57 price target, compared with the reported share price of $27.76. Getty’s latest quarterly revenue rose 10.9% year over year, though EPS slightly missed estimates.

Getty Realty Corporation (NYSE:GTY - Get Free Report) announced a quarterly dividend on Tuesday, October 20th. Investors of record on Thursday, December 24th will be paid a dividend of $0.50 per share by the real estate investment trust on Thursday, January 7th. This represents a $2.00 dividend on an annualized basis and a yield of 7.2%. The ex-dividend date of this dividend is Thursday, December 24th. This is a 3.1% increase from Getty Realty's previous quarterly dividend of $0.4850.

Getty Realty has a dividend payout ratio of 144.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Getty Realty to earn $2.54 per share next year, which means the company should continue to be able to cover its $1.94 annual dividend with an expected future payout ratio of 76.4%.

Getty Realty Stock Performance

GTY traded down $0.28 during trading on Wednesday, reaching $27.76. The company's stock had a trading volume of 79,209 shares, compared to its average volume of 533,727. Getty Realty has a 52-week low of $26.91 and a 52-week high of $36.83. The company's fifty day moving average price is $30.62 and its 200-day moving average price is $32.55. The company has a market capitalization of $1.72 billion, a price-to-earnings ratio of 16.95, a price-to-earnings-growth ratio of 2.05 and a beta of 0.72. The company has a debt-to-equity ratio of 0.95, a quick ratio of 2.26 and a current ratio of 2.26.

Getty Realty (NYSE:GTY - Get Free Report) last released its earnings results on Wednesday, July 22nd. The real estate investment trust reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.01). The business had revenue of $59.05 million for the quarter, compared to analyst estimates of $58.45 million. Getty Realty had a return on equity of 9.27% and a net margin of 42.74%. The company's revenue for the quarter was up 10.9% on a year-over-year basis. On average, equities analysts forecast that Getty Realty will post 2.45 earnings per share for the current fiscal year.

Analysts Set New Price Targets

GTY has been the topic of a number of recent analyst reports. Huntington started coverage on Getty Realty in a report on Wednesday, July 15th. They set an "outperform" rating and a $37.00 price objective on the stock. Royal Bank Of Canada increased their price objective on Getty Realty from $35.00 to $36.00 and gave the stock a "sector perform" rating in a research report on Friday, July 24th. KeyCorp reissued an "overweight" rating and issued a $36.00 target price on shares of Getty Realty in a report on Thursday, September 24th. Deutsche Bank Aktiengesellschaft set a $39.00 target price on Getty Realty in a report on Wednesday, September 23rd. Finally, Weiss Ratings lowered shares of Getty Realty from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 9th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $36.57.

About Getty Realty

Getty Realty Corp. is a real estate investment trust that owns, leases and develops convenience store, gasoline station and automotive service properties. Its portfolio also includes properties used for car washes, truck service, automotive parts and repairs, and other retail and service businesses.

The company generally leases its properties to operators under long-term, often triple-net lease agreements, under which tenants are typically responsible for property taxes, insurance and maintenance.

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