Dividends from Property - Getty Realty Corp (GTY)

Getty Realty Corp (GTY) is the largest owner of convenience and petroleum store land in America, and sits on a very healthy 7.8% dividend yield.

It is hard to ignore a dividend yield of 7.8%, especially when it is coupled with a niche commercial real estate portfolio. However that is what is on offer for investors who consider an investment in Getty Realty Corp. (GTY). 

Founded in 1955 in New York City, Getty (GTY) is the largest publicly traded real estate investment trust specializing in the ownership and leasing of service stations, convenience stores and petroleum distribution terminals in the United States. It manages a portfolio of 1,065 properties.

The company also leases approximately 78% of its properties to Getty Petroleum Marketing which markets, supplies and distributes petroleum.

This gives investors access to an established property portfolio with a proven track record.

Reporting earnings for the quarter ended 30 June, the company saw earnings increase by $0.4 million to $14.0 million. During May 2010, the company completed a primary public stock offering of 5.2 million raising $108.2 million. The proceeds were used to repay a portion of the outstanding balance under the company’s revolving credit facility.

The company had been boosted by a $49 million deal involving 36 Exxon (XOM) branded gasoline stations and convenience stores in the Washington, DC metropolitan area from White Oak Petroleum.

The increase in earnings for 2010 is largely attributable to the contribution realized from the September 2009 White Oak transaction. While cap rates have compressed over the past few months, the company is still comfortable that it can make accretive acquisitions while building capacity to source and process those opportunities as they arise.

Shareholders were also advised that the group would be raising its quarterly dividend to $0.48 per share, representing the sixth consecutive year that Getty (GTY) has raised its dividend.

This attitude and capability of returning capital to investors coupled with its niche, well managed property portfolio and a tasty dividend yield may well put Getty (GTY) on the shopping list of conservative dividend seeking investors.

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