The Only REIT Continuing To Hit New Highs: Getty Realty

As most other real estate investment trusts (REITs) are struggling or just barely bouncing off recent lows, Getty Realty Corp. GTY keeps hitting new highs. This is impressive considering the emergence of a shaky banking industry and the negative effects higher interest rates have had on the sector.

The Jericho, New York-based REIT is a 1997 spin-off of the Getty Oil Co., created by capitalist legend J. Paul Getty. The real estate company is a net lease operation that specializes in convenience store and automotive retail properties. Getty Realty owns 1,001 properties in 36 states and Washington, D.C. Funds from operations grew 37% over the past 12 months and 9.3% over the past five years. The REIT trades with a price-to-earnings ratio of 19 at 2.19 times book value and a price-to-sales ratio of 9.76. Getty Realty’s long-term debt is slightly less than shareholder equity.

For a New York Stock Exchange-listed security, the REIT is lightly traded with an average daily volume of 348,000 shares. The short float of 15% is much higher than most of the sector, indicating how confident short sellers must be of lower prices. Should they be forced to cover at some point, any ensuing rally could be significant.

Getty Realty is paying a 4.82% dividend.

Here’s what the daily price chart looks like:

Now trading above the early March and early February highs, the REIT shows continued buying interest despite weakness in most of the sector. The 200-day moving average (the red line) remains in an uptrend, and Getty Realty is staying above its 50-day moving average (the blue line) as well.

Here’s the weekly chart:

The stock more than doubled from its March 2020 pandemic scare low of $14 to the current $35.90 — a feat other REITs haven’t accomplished.

Getty Realty is trading well above both widely followed moving averages.

Not Investment advice. For educational purposes only. 

Over the past five years, private market real estate investments have outperformed the publicly traded REIT market by about 50%. Check out Benzinga’s Real Estate Offering Screener to discover the latest passive real estate investments.

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