Total operating expenses included in continuing operations (excluding non-cash impairment charges, acquisition costs, and expenses primarily related to Marketing totaling $11.6 million for the quarter ended March 31, 2012 and $3.2 million for the quarter ended March 31, 2011) were $13.2 million for the quarter ended March 31, 2012, as compared to $9.6 million for quarter ended March 31, 2011. The increase is largely due to the increase in rental property expenses discussed above.

Recent Developments Regarding Marketing:

As previously announced, the Master Lease with Marketing was rejected effective April 30, 2012, pursuant to an order of the Bankruptcy Court. This rejection affects all but one of the 788 properties the Company had leased to Marketing. As a result of this action, the Company repossessed its portfolio of properties that were subject to the Master Lease.

The Company also previously announced that it had:
  • Entered into long-term triple-net leases comprising 282 locations with affiliates of Lehigh Gas, Chestnut Petroleum Distributors, Ramoco Fuels and Sam’s Food Stores, as well as adding properties to an existing lease with MWS Enterprises (Arrowmart). The properties are located in New England, Southern New Jersey, Southeastern and Central Pennsylvania and upstate New York (Buffalo) and are anticipated to generate approximately $17.0 million of annual triple-net GAAP revenue.
  • Entered into an interim fuel supply and services agreement with Global Partners, LP to provide gasoline supply and certain oversight services with respect to approximately 254 locations located in the New York City metro area and New Jersey.
  • Entered into a variety of other fuel supply, direct leases and licenses for the remaining properties, excluding properties being marketed for sale, which in some cases are vacant.
  • Sold five properties during the month of April for approximately $1.5 million.

The Company may experience temporary disruptions in the collection of rent receipts at select locations and may incur costs to dispossess Marketing’s former subtenants (or sub-subtenants) which have not yet entered into new agreements with the Company or its tenants and therefore have no right to remain at these locations. The Company intends to directly or, as to locations subject to new leases, together with its new distributor tenants, pursue the dispossession process to the fullest extent permitted by law.

If you liked this article you might like

Getty Realty Fuels Its Comeback by Filling Its Tank With More Properties

4 Eclectic Names Where I Combine Dividends With Value

REIT Value Cocktail: Mix Gas Stations, Farmland and Prisons

Free-Standing Retail REITs on a Run but Will It Last?

I'm Pumped Up About This Gas-Station REIT

I'm Pumped Up About This Gas-Station REIT