Chris Constant, president and CEO of Getty Realty Corp. (NYSE: GTY), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.
Getty Realty received an investment grade rating from Fitch Ratings in May. Constant said the rating reflects the company’s repositioning and growth, and will open up new sources of capital.
As for geographic markets, Constant said Getty Realty continues to like the Northeast and Mid-Atlantic regions, as well as its newer West Coast, Southeast and Southwest markets. The company has assets in 30 states, and does not feel the need to have a national presence in all 50 states, he added.
Constant also highlighted the “significant level” of mergers and acquisitions (M&A) activity occurring among small convenience chains and regional operators.
“The real benefit on the operator side for our tenants is that there are true economies of scale,” Constant said.
Almost all the portfolio deals Getty Realty has done in the last seven to eight years have come out of M&A situations, Constant said. “Our sale-leaseback product and financing vehicle really fit well into that capital stack,” he noted.