September hasn’t been too kind to Getty Realty (NYSE:GTY), as the shares have declined by 11% since the start of the month. Undoubtedly, fears of another surge in COVID-19 have weighed on the share price. However, I believe the decline is largely unwarranted. In this article, I show why the shares are an attractive investment at the current valuation; so let’s get started.

(Source: Company website)

A Look Into Getty Realty

Getty Realty is a leading net lease REIT that specializes in the ownership of Gas Stations/Convenience Stores, and other automotive properties. It currently owns 946 properties that are spread across 35 states. As seen below, the properties well diversified, with exposure to much of the United States.

(Source: Company Earnings Presentation)

What I like about Getty Realty is the need-based products and services that its properties provide. Its properties are generally located in densely-populated, high-traffic areas. Currently, 55% of Getty’s ABR (average base rent) comes from the top 25 MSAs (metropolitan statistical area). This is further supported by the fact that 71% of its properties are at corner locations, which helps them to garner the most traffic. As seen below, New York City, Washington D.C., and Boston represents 37% of Getty’s ABR on a combined basis.

(Source: Company Earnings Presentation)

Despite headwinds from COVID-19, the portfolio occupancy remains very strong at 99% (unchanged from the same time last year), with a weighted average 10-year lease term. What I also find encouraging is that the unit level rent coverage actually improved on a YoY basis, to 2.3x in the latest quarter, which is up from 2.2x in the prior year quarter.

Rent collection appears to be manageable, as the company received 96% of its rents in the last quarter, with just 2.3% of its rents being deferred on a

Transportation firm Uber Technologies is looking for someone to take over five floors of its office space in Deep Ellum.



a large building with a mountain in the background: Uber is hunting someone to take over its lease of five floors in the Epic office tower just east of downtown Dallas.


© Smiley N. Pool/Staff Photographer/The Dallas Morning News/TNS
Uber is hunting someone to take over its lease of five floors in the Epic office tower just east of downtown Dallas.

The almost 116,000-square-foot sublease in the Epic office tower on Pacific Avenue is just the latest case of companies looking to fill surplus office space during the pandemic.

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Commercial property firm CBRE is marketing ride-hailing firm Uber offices on the eastern edge of downtown Dallas.

Uber opened its Dallas office in the Epic tower last year. At the same time, it announced it was taking an even bigger space in another office tower under construction next door.

Real estate information firm CoStar first reported that Uber is now seeking to sublease.

The five floors of office space in the building at 2550 Pacific Avenue are available through mid 2023, according to CBRE.

The Uber space for lease includes offices, conference facilities, training rooms and lounge areas on the ninth through 15th floors, according to CBRE’s marketing material.

The move to sublease its Deep Ellum offices is the second change Uber has made this year for its planned Dallas regional operation.

In the summer of 2019 the California-based transportation company said it would open a Dallas office with at least 3,000 workers.

The planned Deep Ellum operation was to have been Uber’s largest hub outside of its San Francisco headquarters.

In November Uber and developers KDC and Westdale Real Estate broke ground on a 23-story, 470,000-square-foot office tower to house thousands of Uber workers starting in late 2022.

The Epic office high-rise is still under construction.

But Uber earlier this year said that it was pausing hiring for the