Thanksgiving spread
Getty Realty (NYSE: GTY) announced the closing of its previously disclosed private placement of $125 million of senior unsecured notes across two tranches:i) $50 million priced at a fixed 5.52% maturing September 2029ii) $75 million priced at a fixed 5.70% maturing February 2032
Lenders include affiliates of New York Life Insurance Company and the Prudential Insurance Company of America. The notes will fund at the end of February 2025 and proceeds will repay GTY’s $50 million, 4.75% senior unsecured notes due that month with remaining funds used for future investment activity.
Is GTY’s Thanksgiving wine glass half full or half empty? The new notes are ~90bps more costly than the debt they will refinance but GTY’s 2024YTD investment yield of 8.0% creates nearly 240bps of spread. 70% of the REIT’s pro forma outstanding unsecured notes are fixed at 3.65% or better, and none mature before September 2029.
As covered previously in the Observer, GTY has leaned heavily into the express car wash sector since 2019 - to the tune of 21% of 9/30/2024 portfolio annualized base rent.
Net pay
Global Net Lease (NYSE: GNL) announced a new 4-year employment agreement with its CEO Michael Weil. Terms include a $1 million annual salary, performance-based annual cash bonus targeted at $1.5 million, annual grant of equity-based awards with a target grant date fair value of $5.5 million (40% time-vested; 60% performance-vested), a one-time cash signing bonus of $333,333, and a one-time award of time-based restricted stock units (RSU) with a grant date fair value of $1.375 million.
GNL’s stock price has declined by 24%, 50%, and 62% for the year-to-date, 3-year, and 5-year trailing periods. During the same time periods, GNL shareholders generated total returns of -15%, -26%, and -32%, respectively.
-Sean Hostert