Recent

% | $
Quotes you view appear here for quick access.

Getty Realty Corp. Message Board

  • zzssvw zzssvw Feb 3, 2004 12:13 AM Flag

    AFFO up 22% for the quarter

    "Adjusted funds from operations ("AFFO") for the quarter and year ended December 31, 2003 were $9.8 million and $36.8 million, respectively, as compared with $7.6 million and $31.9 million for the comparable prior year periods."

    I looked over past posts quickly. I see that posters didn't mention some important facts. GTY builds value by working off env exp:

    "Environmental expenses, net of estimated recoveries, for the quarter and year ended December 31, 2003 were $2.0 million and $7.6 million, respectively, as compared to $3.0 million and $8.7 million for the comparable prior year periods."

    GTY builds shareholder value by the exercise of options:

    "...the exercise of lease purchase options, including the purchase of 41 leased properties in May 2003".

    And GTY built common shareholder value by the reduction in preferred stock dividends:

    "the conversion of 2,816,919 shares of the Company's outstanding Series A Participating Convertible Redeemable Preferred Stock into 3,186,355 shares of common stock and the redemption of 48,849 shares of preferred stock in the quarter ended September 30, 2003."

    I don't agree that:

    "GTY is not expanding [building shareholder value], so what we have is savings deposit account earning at current price, over 6 percent interest."

    I see more increases in NAV, AFFO, dividends, and share price in 2004 -- not at all like a savings deposit account earning 0.25% for a demand account to a couple of percent for term a a/c locking up your money for years.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • My opinions here are pure speculation which is paradoxical to the reason why I still hold onto GTY - that of all the stocks I own, I view it as the least speculative of all of them, yet I know that anything can happen in the market.
      I can seen the dividend remaining the same for the next year, and the stock price moving between 24 and 28. Better scenario is a small dividend increase with an accompanying increase in stock price to the high 20s. The only surprise event I could see is an eventual buyout or business change in future years. And let's not even think of the environmental cleanup mess that hit this stock years ago, which paradoxically allowed me to get in in the first place as the stock fell to 16.
      The CanRoys yielding 10-16% fell today, so if you bought them a few days ago, though you are getting a good yield, the drop in stock price offset the high yield. With GTY, I think if you bought in in the 24-high 25 range, you could feel more secure in getting no less than a 6 1/2% yield with a slight appreciation in stock valuation and not have to wonder what the natural gas/oil futures/commodity market is doing from one day to the next.

    • d_manning@sbcglobal.net d_manning Feb 5, 2004 10:23 PM Flag

      I think you are right on target with your assement of GTY as a good investment with dividend income regularity. I jumped in today at $25.40 with hopes the dividend income stream continues steadily without a lot of share price volitility in the coming months. I have not seen anything yet to indicate GTY as being burdened with debt or declining propety values. I hope fears of an increasing interest rate environment will not have much impact on the stock value. What are your valued thoughts? TIA

    • Here we go - I'll play the devil's advocate:

      "Adjusted funds from operations ("AFFO") for the quarter and year ended December 31, 2003 were $9.8 million and $36.8 million, respectively, as compared with $7.6 million and $31.9 million for the comparable prior year periods."

      I looked over past posts quickly. I see that posters didn't mention some important facts. GTY builds value by working off env exp:

      "Environmental expenses, net of estimated recoveries, for the quarter and year ended December 31, 2003 were $2.0 million and $7.6 million, respectively, as compared to $3.0 million and $8.7 million for the comparable prior year periods."

      ==>> environmental expense decrease does not grow a business, but rather decreases operating expense. The offsetting gain eventually disappears.

      GTY builds shareholder value by the exercise of options:

      "...the exercise of lease purchase options, including the purchase of 41 leased properties in May 2003".

      ==>> Good point. A way to expand business, but this, too, has limited potential and eventually forces a company to look elsewhere to expand revenue generation.

      And GTY built common shareholder value by the reduction in preferred stock dividends:

      "the conversion of 2,816,919 shares of the Company's outstanding Series A Participating Convertible Redeemable Preferred Stock into 3,186,355 shares of common stock and the redemption of 48,849 shares of preferred stock in the quarter ended September 30, 2003."

      ==>> Whew! What a relief.

      I don't agree that:

      "GTY is not expanding [building shareholder value], so what we have is savings deposit account earning at current price, over 6 percent interest."

      I see more increases in NAV, AFFO, dividends, and share price in 2004 -- not at all like a savings deposit account earning 0.25% for a demand account to a couple of percent for term a a/c locking up your money for years.

      ==>> Likely bet that NAV and AFFO will increase a small amount. Less likely dividend increase. You don't have to have your money tied up to earn almost 2%. Look into ING's services - no minimum, no monthly fees, don't have to change your bank account, free electronic exchange of money from one account to another - cufrently paying 1.9%. Only disadvantage is that your money is tied up for at least 8-9 business days before you can use your money (5 days to move the money from your bank account to ING, and 3 to get it back for withdrawal).

      I look forward to more frequent posting on your part as to the business analysis of GTY. This board sorely needs more posters like you who post informed, insightful and thoughtful contributions.

    • << zzssvw : ... GTY builds value by ... >>

      Good post. Your explanation and analysis of enhanced shareholder value through the various ways you explained sheds new light on GTY's business as it relates to shareholder value.

      This board is rather empty most of the time, and if you look at the board of a company like NFI, you can see how valueable it is to have posters contribute their insights, and for their to be give and take, and replies to posted messages, often resulting in new understandings and adding new shareholders based on feedback given.

      If someone were to view this board, up until your last post, it would be doubtful that anyone would be inspired to invest, unless they wanted that 6% dividend yield. Looks like GTY is holding its own in the 26-27 range.

      It had a nice runup from 18 to 26. It still seems doubtful that it will repeat that runup.

      • 1 Reply to ContraIndicator
      • < It had a nice runup from 18 to 26. >

        It was $20ish before 18 and a lot of value has been added since when it was 20 ish.

        < It still seems doubtful that it will repeat that runup. >

        That can be said of about 99% of REITs and stocks.

        I look for $31ish on the upside and 24/5 on the downside. That is, I see about double the upside potential from 26/7 as there is downside risk. Further, I view this REIT as more risk free than others.

        Good buys!

 
GTY
20.90-0.02(-0.10%)Jun 24 4:02 PMEDT