Welcome to Getty Realty's Second Quarter 2026 Earnings Call. This call is being recorded. After the presentation, there will be an opportunity to ask questions. Prior to starting the call, Joshua Dicker, Executive Vice President, General Counsel, and Secretary of the Company, will read a safe harbor statement and provide information about non-GAF financial measures. Please go ahead, Mr. Dicker.

Thank you, Operator. I would like to thank you all for joining us for Getty Realty's second quarter earnings conference call. Yesterday afternoon, the company released its financial and operating results for the quarter ended June 30, 2026. The four made K and earnings release are available in the investor relations section of our website at gettyrealty.com. Certain statements made during this call are not based on historical information and may constitute forward-looking statements. These statements reflect management's current expectations and beliefs and are subject to trends, events, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Examples of forward-looking statements include our 2026 guidance. They may include statements made by management, including those regarding the company's future operations, future financial performance, or investment plans and opportunities. We caution you that such statements reflect our best judgment based on factors currently known to us and that actual events or results could differ materially. I refer you to the company's annual report on Form 10-K for the year ended December 31, 2025, as well as any subsequent filings with the SEC for a more detailed discussion of the risks and other factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. You should not place undue reliance on forward-looking statements, which reflect our view only as of today. The company undertakes no duty to update any forward-looking statements that may be made during this call. Also, please refer to our earnings release for a discussion of our use of non-GAAP financial measures, including our definition of adjusted funds from operations, or AFFO, and our reconciliation of those measures to net earnings. With that, let me turn the call over to Christopher Constant, our Chief Executive Officer.

Thank you, Josh. Good morning, everyone, and welcome to our earnings call for the second quarter of 2026. Joining us on the call today are Brian Dickman, our Chief Financial Officer, and R.J. Ryan, our Chief Investment Officer. I will lead off today's call by providing highlights of Getty's quarterly financial performance and investment activity. RJ will then discuss our portfolio and investments in greater detail, and Brian will provide additional information regarding our earnings, balance sheet, and 2026 AFFO per share guidance. Getty continues to differentiate itself through its focused investment strategy and relationship-driven sale-leaseback approach to deal origination. Our investment platform is producing consistent external growth, while our in-place portfolio generates durable cash flows. Our results for the second quarter reflect both of these dynamics, as we increased our annualized base rent by 15%, grew our AFFO per share by 5.1%, and increased our full year of 2026 earnings guidance for the second time this year. The foundation of our results remains our in-place portfolio, which was largely constructed over the last decade through direct sale-leaseback transactions featuring appropriate initial rents, long initial lease terms, and contractual rent escalators. The portfolio is essentially fully occupied, has an average remaining lease term of more than 10 years, and continues to produce stable rent coverage. Despite the economic volatility driven by geopolitical events, our tenants and their businesses have once again proven their resilience and ability to perform during rapidly changing operating conditions. Looking at our portfolio, based on site-level reporting we received from our convenience store tenants, fuel margins averaged 46 cents per gallon for the first quarter of 2026, which was an increase of more than 10% compared to fuel margins they reported in the first quarter of 2025. Equally important, the challenging macro conditions have not resulted in a material deterioration in consumer demand across our core categories. Public company operators have reported modest increases in same-store sales, and recent market-level data indicates continued year-over-year growth in both convenience-oriented retail sales and automotive service revenue. Turning to our investment activities, year-to-date, we have deployed more than $172 million at an initial cash yield of 7.6%. Beyond what we have closed, we have approximately $95 million of investments under contract, as well as a robust pipeline of transactions under signed non-binding letters of intent. The transaction market for convenience and automotive retail properties remains constructive and we continue to see an acceleration in the pace of our sourcing and underwriting, which we expect to translate into additional closings as we move through the balance of the year. We are also in an excellent capital position as our recent capital markets activities have provided us with significant liquidity and an attractive cost of capital to fund our 2026 business plan. We currently have more than $190 million of unsettled forward equity and significant capacity under our $450 million revolver. When we look at the spectrum of opportunities under contract and in our pipeline, we are confident that we can deploy this capital in a productive and a creative manner. As we think about our prospects for the rest of 2026 and beyond, I take comfort in the quality of our portfolio, including its proven durability and ongoing diversification. And I'm confident that the direct sale-leasebacked platform we've built can drive disciplined growth as we lean into our differentiated expertise in sourcing, underwriting, and closing investments and our core convenience in automotive retail sectors. We remain committed to our disciplined underwriting approach, which prioritizes owning high-quality assets in densely populated or growing metro areas, with strong access, visibility, and retail synergies, which has leased to both established and emerging credit-worthy operators. With that, I'll let RJ discuss our portfolio and investment activities.

Thank you, Chris. At quarter end, our lease portfolio included 1,220 net lease properties and one active redevelopment site. Excluding the active redevelopment, occupancy was 99.8%, and our weighted average lease term was 10.3 years. Our net lease portfolio spans 46 states plus Washington, D.C., with 59% of our annualized base rent coming from top 50 MSAs and 75% coming from top 100 MSAs. Our rents are well covered, with a trailing 12-month rent coverage ratio of 2.5 times. Turning to our investment activities, for the quarter, we invested $128.3 million, which included the acquisition of 35 properties for $117.7 million, and the incremental development funding of $10.6 million. The initial cash yield on these investments was 7.4%. The weighted average lease term on acquired assets for the quarter was 18.3 years. Two highlights from this quarter's investment activity include, one, the continued expansion of our investment efforts, as 28 of the acquired properties, representing approximately 60% of ABR acquired, were either automotive service or drive-through QSR assets, and two, the addition of six new tenants to the portfolio, furthering our tenant diversification. Subsequent to quarter end, we invested an additional $13.5 million, bringing our year-to-date total investments to $172.1 million at a 7.6 initial cash yield. Looking ahead, as Chris mentioned, we currently have approximately $95 million of investments under contract and a significant pipeline of investments under executed letters of intent. The majority of assets under contract are in the auto service sector, followed by drive-through QSRs and convenience stores. These are predominantly development funding transactions with initial cash yields in the high 7% area. The pipeline of investments under executed LOIs includes opportunities across all of our convenience and automotive retail sectors, with the majority representing traditional relationship sale-ease-backed transactions in the convenience store space. Moving to our redevelopment platform, during the quarter, REC commenced on one redevelopment property in Bergen County, New Jersey, that is now leased to a Take 5 oil change franchisee. We invested approximately $0.4 million in this project and expect to generate a return on invested capital of 18%. At quarter end, we had four signed leases for redevelopments and had additional projects in various stages of negotiation in our pipeline. With respect to our asset management activities, we extended one unitary lease by 10 years during the quarter. The lease generates 2.9 million of AVR, or 1.3% of total AVR, and the new expiration date is December 31st, 2039. The net result of this extension, combined with our first quarter leasing activities and recent acquisitions, is an increase to our weighted average lease term and a further reduction in AVR expiring through the end of 2027, which is now approximately 2% of total AVR. In addition, we sold four properties during the quarter for gross proceeds of $8.2 million. With that, I will turn the call over to Brian to discuss our financial results.

Thanks, RJ. Good morning, everyone. Starting with headline earnings, AFFO per share was $0.62 in Q2, 2026, and $1.25 for the first half of 2026, representing growth of 5.1% and 5%, respectively, over the prior year periods. A more detailed description of our quarterly and year-to-date results, including FFO and net income, can be found in our earnings release. Our corporate presentation also contains additional information regarding our earnings and dividend per share growth over the last several years. Moving to G&A expenses, management focuses on the ratio of G&A excluding stock-based compensation and non-recurring retirement costs to cash rental in interest income. That ratio was 9.3% for Q2, 2026, and 9.2% for the first half of 2026, representing decreases of 60 basis points and 100 basis points, respectively, as compared to the prior year periods. As mentioned on prior calls, we expect full-year G&A growth to be less than 2%, and for our G&A ratio to fall below 9%, as we continue to benefit from our efforts to scale the company while maintaining appropriate levels of overhead. Turning to the balance sheet and liquidity, as of June 30th, net debt to EBITDA was 5.3 times, or 4.3 times, including unsettled forward equity, which is well within our stated target leverage of 4.5 to 5.5 times. Fixed charge coverage for the quarter was four times. We ended the quarter with approximately $1.1 billion of total debt outstanding, including $1 billion of senior unsecured notes, with a weighted average interest rate of 4.6% and a weighted average maturity of 5.5 years, and $73 million drawn on our $450 million revolver. We have no debt maturities until June 2028. During the quarter, we settled approximately 1.5 million shares of common stock subject to outstanding forward sale agreements for net proceeds of approximately $39.8 million. We also entered into new forward agreements to sell approximately 1.8 million shares of common stock for anticipated gross proceeds of $60.6 million. In total, we currently have 5.8 million shares of common stock subject to outstanding forward sale agreements, which upon settlement are anticipated to raise gross proceeds of approximately $190.5 million. We continue to be in a very strong capital position with more than $570 million of total liquidity at quarter end and have more than sufficient capital to fund our under-contract pipeline and additional investment activity as we move through 2026. With respect to our earnings outlook, as a result of our year-to-date investment activity, we are increasing our full year 2026 ASFO per share guidance to a range of $2.52 to $2.54 from our prior guidance of $2.50 to $2.52. As a reminder, our guidance reflects the current run rate from our in-place portfolio with certain expense and credit loss variability and does not include any prospective investment or capital activities. We think this approach remains appropriate for our business and look forward to updating everyone on the positive impact our investment activity has on our earnings as we move through the balance of the year. With that, I'll ask the operator to open the call for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And our first question will come from Mitch Germain with Citizens Bank.

Thank you, guys. Nice quarter. Chris, I know that I believe a couple years ago you brought someone on focusing on the QSR industry. You've seen significant momentum there. Have you expanded that team? Is it just a population of the deals that have hit your underwriting? Is there anything specific that you point out to you with regards to the momentum machine now?

I would just say, I think it's the success of the person we've brought on, right, to focus on that. And also, it takes time to build relationships in the sector through traditional and other forms of business development. And I think what we're starting to see is border quarter success in that sector, like we've seen in the other sectors that we focus on. So we're really happy with how that's progressed. And again, I think as the year goes run, we anticipate balanced volumes across the investment program by the convenience and automotive retail asset classes that we focus on. Great.

That's super helpful. I think the last quarter, RJ has spoken about cap rates, you know, kind of mid to high 7% range. It looks like, you know, obviously for the quarter, they were at the lower end of that Like, was there any specific transaction, you know, that kind of brought the cap rate lower than what you've been seeing recently? Or is that just really more broadly the market kind of, you know, kind of correcting itself there?

No, I think, yeah, again, our view is there's a lot of volume in that kind of mid-seven range, Mitch. And, again, this is just one quarter of activity. So something that might be based on the volume of, say, one transaction or several transactions. But generally, I still think we see cap rates in that, you know, plus or minus 7.5% range, and there's going to be deals that Getty does that touch eight, like we did at the start of the second quarter, right, excuse me, third quarter. And, you know, we anticipate blending out with some additional volume into that middle 7% area.

Great. Last one for me. Oh, go ahead, please. Just real quick, I would add this, Brett. I think it's important also to acknowledge the improving cost of capital over the better part of this year and that opening up opportunities for us to compete for a wider swath of transactions, many of which we couldn't compete for a year ago in that low to mid-seven areas. So I think if you take what Chris said and just expand it a little bit, we're going to continue to execute as we have been for several years in that mid to high sevens. But with the improving cost of capital, we have an opportunity to compete, again, for a greater range of transactions. And I think you'll continue to see this blend in the mid sevens. But, you know, from our perspective, this is exactly where we want to be when you look at the magnitude of activity and the increase of activity. And, yes, that cap rate has come down a little bit on a blend, but our spreads have largely remained constant, if not increased a little bit in some instances.

That's super helpful. Thank you.

And our next question will come from Jana Gallen with Bank of America.

Good morning. This is Dan Byun on for Yannick Yallin. Could you clarify if that $19.3 million advanced aggregate funding is included in that $95 million pipeline?

No, Dan, that would have already been deployed. That's just the balance of capital that's been deployed for those projects, and it would be incremental funding to that that's in the 95, and then when those projects are completed, it will no longer be mortgage and notes receivable and it will be real estate subject to a long-term lease.

Thank you. And also just kind of talking about the rent coverage, you held it at 2.5, but the sub-1x bucket rose by 70 bibs. Are there any specific tenants or sectors driving that? Are you seeing any softening at all of note?

No, certainly no softening. We've seen really stable coverage across tenants, leases, sectors. That bucket continues to be the same portfolio of ramping new to industry car washes. There's just some incremental individual units that aged into our reporting this quarter. So same portfolio, ramping car washes. We acknowledge they're ramping maybe at a little bit of a slower rate than we've seen from some of the other new-to-industry car washes that we funded. But they're, on average, just over two years into their operating histories. We're seeing decent trajectory there. So nothing that's causing us any great concern at this point as they continue to push into their third year where they more typically stabilize.

Thanks for answering my questions.

And we'll go next to you, Paul Rama, with KeyBank Capital Markets.

Great. Thank you. I just want to get a sense on your investment pool today. Given the improved cost of capital, has your pool meaningfully increased in terms of what you're looking at? Or is this really just the same pool, but you can now just move down the risk curve given the improved cost of capital?

Hi, it's RJ. Certainly the improved cost of capital, as Brian brought up earlier and Chris, it's just opening up more opportunities. So our underwriting pace so far this year is at or above a record pace, and I think some of the velocity you're seeing reflects that. So long story short, I think having that improved cost of capital just opens up things that a year ago maybe we couldn't really act on. that's now just opening up opportunities for us and leading to that increased velocity.

Gotcha. Okay. And then maybe just on the pace and the visibility in the back half, you know, obviously at this point you've completed and what you have committed already in the pipeline, you're kind of near last year's volume. So just wanted to kind of get a sense of what maybe the back half could potentially look like.

I mean, I think that sort of I'll answer the question with what you said there, which is we're sitting here in July, right, with visibility into kind of roughly what we did last year with still several months before we get to the end of the year. So we feel very good about our ability to continue to source, bring deals in, and get those closed before year-end. So, again, I think what we've been messaging is what we've done over the last couple of years we view as the floor, and now we're sort of – we have the team, the systems in place, And with what RJ mentioned in terms of underwriting and Brian mentioned in terms of cost of capital, right, we see that there's upside to that floor in 26 and beyond.

Okay, great. Thank you.

Moving on to Rob Stevenson with Huntington.

Good morning, guys.

Chris, any new sort of tenential types of assets that you don't already own today that you guys are underwriting today to any significant degree? um i mean i'll start by saying the sectors that we invest in large fragmented health healthy and given what some of the comments we've made from some of the prior questions there's a lot to work on i think we're always looking at where are there ways for us to extend but you know when we think about what um how we've been successful right it's building knowledge it's building relationships, it's opportunity set, and users of sales-backed financing. So I'm not going to say we're not looking at new asset classes, Rob, but we're trying to be really thoughtful as we think about extending beyond the four asset classes that we focus on today. So I guess I would say that there's a lot to work on in the four we have, where we're really happy with the team and the pace and the opportunities we closed on. But we're always thinking about how we continue to scale and get it, right? Our goals are growth, diversification, really scaling this business into a much larger platform.

Okay. And speaking of scaling, how do you view the opportunity to potentially scale the development program over the next couple of years? I mean, versus where you are today and the partners that you have, like, where do you think that that goes over time?

Yeah, I mean, we came up with development funding as a way to provide a product for tenants in the sectors we invest in and want to grow with certain partners that were looking to build their prototype stores as opposed to refinance their balance sheet or growth reacquisition. So it's really a product that we offer to tenants. And we're happy if there's a sale-leaseback component. We're happy if there's a development component. There's maybe a slight premium on the development side, but then there is a little bit of a time before, as you deploy that capital, right? So it takes time for it to come onto the balance sheet and actually put all that money to work. So we're happy with being able to offer tenants that we like, both sales-backed financing and development funding, but we view it as another path to fee ownership and another path to growth. So we're really trying to work with our partners and figure out what's best for them and then how we can finance that equitably for us.

Okay, I guess said another way, is the demand there accelerating at this point or is it pretty much what it is in terms of from your partner's standpoint on that?

It adds and flows. And it's really how our tenant or our operating partner thinks about their growth, right? If there's someone that likes to grow through acquisition, right, we have a product for them. If it's someone that's really focused on site selection, developing their prototype stores, they can use our balance sheet to accelerate their growth. So sometimes we have transactions, like the one that we have in the collision sector right now, they want to build their prototypes. Some of the things we accomplished in the second quarter were more traditional sale leasebacks. And, again, from a Getty standpoint, right, it's the accretive fundings in the sectors we know with tenants we like. And eventually we get to the same place, which is something to be with a partner on a long-term lease.

A couple of quick ones. The sales of the quarter, more defensive, or did you just get offers on those four properties that were attractive to you guys?

Hey, Rob, it's Brian. And there was selection, like you said, just $8 million, handful of properties. You know, we've been pretty selective with dispositions over the years. We'll continue to do that, certainly taking as the portfolio has gotten larger and more diverse. I think we have maybe a more strategic view around dispositions. But in the quarter, it's just a handful there. And it was a mix. It was a couple that we disposed of in a more tactical way. And then there was a couple of former redevelopments in there, frankly, that we were able to round trip and get some really attractive valuations in a disposition market versus the equity markets.

Okay. And then last one for you, Brian. If you wanted to term out some debt following the expensive acquisitions, where's the best source for you today and where would that be pricing?

It's a great question. And just as the credit markets continue to move around, they're definitely open, constructive. Spreads are on the tighter side, but benchmarks are on the wider side. I think a 10-year note for us, which is our sort of base case financing, would be about six and a quarter, driven primarily by the increase in the 10-year. We printed a five and three quarters at the end of last year. So spreads have come in maybe about five basis points, but Treasury's up about 50, 60 basis points. So, again, that's our plan A. That's our base case. You know, we have in the past looked at term loan financing. We've done shorter term, five- and seven-year private placements. There's only $73 million on the line right now, so that's, you know, sub-20% utilization. So, you know, we're not feeling any pressure in the near term to go term that out. But we would look across those markets, term loan, private placement, different durations. You know, we do have a preference, all else being equal, for long-term fixed rate debt, given the nature of the cash flows we have coming in. But if the fact...