Getty Realty Corp. (NYSE-GTY) (“Getty” or the “Company”) today reported its financial results for the quarter and year ended December 31, 2011. All per share amounts in this press release are presented on a fully diluted per common share basis, unless stated otherwise.
Highlights for the Quarter Ended December 31, 2011:
- Total revenue increase of $9.6 million to $31.7 million as compared to the quarter ended December 31, 2010
- Adjusted funds from operations (“AFFO”) of $8.6 million, or $0.26 per share
- Funds from operations (“FFO”) of $0.3 million, or $0.01 per share, after charges
- Net loss of $19.5 million, or $0.58 per share, after charges
AFFO and FFO are supplemental non-GAAP measures of the performance of real estate investment trusts. In accordance with the National Association of Real Estate Investment Trusts’ modified guidance for reporting FFO, Getty has restated reporting of FFO for all periods presented to exclude non-cash impairment charges. Details about this change, related definitions and reconciliations to net earnings can be found in the financial tables at the end of this release.
Results for the quarter and year ended December 31, 2011 were materially affected by events related to Getty Petroleum Marketing Inc. (“Marketing”) filing for Chapter 11 protection under the Federal Bankruptcy Code (the “Marketing Bankruptcy”) as more fully described below and in the Company’s other filings with the SEC including the Company’s Annual Report on Form 10-K which was filed today. Accordingly, the Company’s results of operations for the quarter ended December 31, 2011 and balance sheet as of December 31, 2011 include the following adjustments:
- $8.7 million non-cash allowance for deferred rental revenue related to the Master Lease (in addition to the $11.0 million allowance recorded during the quarter ended September 30, 2011) fully reserving for the deferred rent receivable relating to the Master Lease;
- $8.8 million provision for bad debts, primarily attributable to nonpayment of pre-petition rent and real estate taxes due from Marketing;
- $1.5 million legal and other professional fees related to the Marketing Bankruptcy;
- $47.9 million accrued liability representing the assumption of aggregate Marketing Environmental Liabilities; and
- $17.1 million impairment charges related to the Marketing portfolio.
Earnings from continuing operations, net earnings and FFO for both the quarter and year ended December 31, 2011, were materially adversely impacted by $8.7 million and $19.8 million of non-cash charges, respectively, recorded to reflect an increase in the Company’s straight-line rent reserve related to the Company’s Master Lease with Marketing and $10.3 million for bad debts, legal fees and other professional fees related to the Marketing Bankruptcy.