Maryland
|
001-13777
|
11-3412575
|
(State
of
|
(Commission
|
(IRS
Employer
|
Organization)
|
File
Number)
|
Identification
No.)
|
125
Jericho Turnpike, Suite 103
|
|
Jericho,
New York
|
11753
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Page
Number
|
|
4
|
|
5
|
|
6
|
Revenues:
|
||||
Rental
revenue
|
$
|
8,204
|
||
Recoveries
from tenants and other revenue
|
365
|
|||
Total
revenues
|
8,569
|
|||
Certain
expenses:
|
||||
Rental
property expenses
|
538
|
|||
Excess
of revenues over certain expenses
|
$
|
8,031
|
Locations
|
|||
Jonesboro,
AR
|
Honolulu,
HI
|
Ellicott
City, MD
|
Arlington,
TX
|
Bellflower,
CA
|
Honolulu,
HI
|
Asheboro,
NC
|
Austin,
TX
|
Benicia,
CA
|
Honolulu,
HI
|
Kernersville,
NC
|
Austin,
TX
|
Coachella,
CA
|
Kaneohe,
HI
|
Kernersville,
NC
|
Austin,
TX
|
El
Cajon, CA
|
Kaneohe,
HI
|
Kernersville,
NC
|
Bedford,
TX
|
Fillmore,
CA
|
Kapolei,
HI
|
Lexington,
NC
|
Cedar
Park, TX
|
Hesperia,
CA
|
Wahiawa,
HI
|
Madison,
NC
|
Ft
Worth, TX
|
La
Palma, CA
|
Waipahu,
HI
|
New
Bern, NC
|
Harker
Heights, TX
|
Poway,
CA
|
Waipahu,
HI
|
Taylorsville,
NC
|
Houston,
TX
|
San
Dimas, CA
|
Waianae,
HI
|
Walkertown,
NC
|
Keller,
TX
|
Haleiwa,
HI
|
Waianae,
HI
|
Walnut
Cove, NC
|
Midlothian,
TX
|
Honolulu,
HI
|
Waianae,
HI
|
Winston
Salem, NC
|
North
Richland Hills, TX
|
Honolulu,
HI
|
Cottage
Hills, IL
|
Belfield,
ND
|
San
Marcos, TX
|
Honolulu,
HI
|
Fairview
Heights, IL
|
Allenstown,
NH
|
Temple,
TX
|
Honolulu,
HI
|
Baltimore,
MD
|
Bedford,
NH
|
The
Colony, TX
|
Honolulu,
HI
|
Baltimore,
MD
|
Hooksett,
NH
|
Waco,
TX
|
Year
ending December 31,
|
|
|||
2007
|
$
|
7,500,000
|
||
2008
|
7,521,000
|
|||
2009
|
7,609,000
|
|||
2010
|
7,631,000
|
|||
2011
|
7,691,000
|
|||
Thereafter
|
69,727,000
|
Page
Number
|
|
11
|
|
12
|
|
|
|
13
|
|
|
|
14
|
Historical
|
Pro
forma
Adjustments
|
Pro
forma
|
||||||||||
Assets:
|
||||||||||||
Real
Estate:
|
||||||||||||
Land
|
$
|
216,904
|
$
|
1,892
|
(A
|
)
|
$
|
218,796
|
||||
Building
and improvements
|
243,452
|
2,916
|
(A
|
)
|
246,368
|
|||||||
460,356
|
465,164
|
|||||||||||
Less
- accumulated depreciation
|
(117,014
|
)
|
(117,014
|
)
|
||||||||
Real
estate, net
|
343,342
|
348,150
|
||||||||||
D
Deferred rent receivable
|
32,779
|
32,779
|
||||||||||
C
Cash and cash equivalents
|
1,430
|
1,430
|
||||||||||
R
Recoveries from state underground storage tank funds,
net
|
3,929
|
3,929
|
||||||||||
Mortgages and accounts receivable, net
|
2,791
|
2,791
|
||||||||||
Prepaid
expenses and other assets
|
8,346
|
1,080
|
(A
|
)
|
9,426
|
|||||||
Total
assets
|
$
|
392,617
|
$
|
398,505
|
||||||||
Liabilities
and Shareholders’ Equity:
|
||||||||||||
Debt
|
$
|
126,686
|
5,131
|
(A
|
)
|
$
|
131,817
|
|||||
Environmental
remediation costs
|
17,028
|
17,028
|
||||||||||
Dividends
payable
|
11,290
|
11,290
|
||||||||||
Accounts
payable and accrued expenses
|
13,022
|
757
|
(A
|
)
|
13,779
|
|||||||
Total
liabilities
|
168,026
|
173,914
|
||||||||||
Commitments
and contingencies
|
-
|
-
|
||||||||||
Shareholders’
equity:
|
||||||||||||
Common
stock, par value $.01 per share; authorized
|
||||||||||||
50,000,000
shares; issued 24,764,815 at March 31, 2007
|
248
|
248
|
||||||||||
Paid-in
capital
|
258,701
|
258,701
|
||||||||||
Dividends
paid in excess of earnings
|
(33,352
|
)
|
(33,352
|
)
|
||||||||
Accumulated
other comprehensive loss
|
(1,006
|
)
|
(1,006
|
)
|
||||||||
Total
shareholders’ equity
|
224,591
|
224,591
|
||||||||||
Total
liabilities and shareholders’ equity
|
$
|
392,617
|
$
|
398,505
|
Historical
|
Trustreet
Portfolio
|
Pro
forma
Adjustments
|
Pro
forma
|
|||||||||||||
Revenues
from rental properties
|
$
|
17,993
|
$
|
2,176
|
$
|
90
|
(B
|
)
|
$
|
20,254
|
||||||
(5
|
)
|
(C
|
)
|
|||||||||||||
Operating
expenses:
|
||||||||||||||||
Rental
property expenses
|
2,420
|
280
|
2,700
|
|||||||||||||
Environmental
expenses, net
|
969
|
-
|
969
|
|||||||||||||
General
and administrative expenses
|
1,453
|
-
|
1,453
|
|||||||||||||
Depreciation
and amortization expense
|
1,865
|
-
|
790
|
(D
|
)
|
2,655
|
||||||||||
Total
operating expenses
|
6,707
|
280
|
7,777
|
|||||||||||||
Operating
income
|
11,286
|
1,896
|
12,477
|
|||||||||||||
Other
income, net
|
115
|
-
|
115
|
|||||||||||||
Interest
expense
|
(964
|
)
|
-
|
(1,293
|
)
|
(E
|
)
|
(2,257
|
)
|
|||||||
Net
earnings
|
$
|
10,437
|
$
|
1,896
|
$
|
10,335
|
||||||||||
Net
earnings per share:
|
||||||||||||||||
Basic
|
$
|
.42
|
$
|
.42
|
||||||||||||
Diluted
|
$
|
.42
|
$
|
.42
|
||||||||||||
Weighted-average
shares outstanding:
|
||||||||||||||||
Basic
|
24,765
|
24,765
|
||||||||||||||
Stock
options and restricted stock units
|
20
|
20
|
||||||||||||||
Diluted
|
24,785
|
24,785
|
Historical
|
Trustreet
Portfolio
|
Pro
forma
Adjustments
|
Pro
forma
|
|||||||||||||
Revenues
from rental properties
|
$
|
72,405
|
$
|
8,569
|
$
|
73
|
(B
|
)
|
$
|
81,005
|
||||||
(42
|
)
|
(C
|
)
|
|||||||||||||
Operating
expenses:
|
||||||||||||||||
Rental
property expenses
|
9,732
|
538
|
10,270
|
|||||||||||||
Environmental
expenses, net
|
5,490
|
-
|
5,490
|
|||||||||||||
General
and administrative expenses
|
5,607
|
-
|
5,607
|
|||||||||||||
Depreciation
and amortization expense
|
7,883
|
-
|
3,159
|
(D
|
)
|
11,042
|
||||||||||
Total
operating expenses
|
28,712
|
538
|
32,409
|
|||||||||||||
Operating
income
|
43,693
|
8,031
|
48,596
|
|||||||||||||
Other
income, net
|
1,859
|
-
|
1,859
|
|||||||||||||
Interest
expense
|
(3,527
|
)
|
-
|
(5,174
|
)
|
(E
|
)
|
(8,701
|
)
|
|||||||
Net
earnings before income taxes
|
42,025
|
8,031
|
41,754
|
|||||||||||||
Income
tax benefit
|
700
|
-
|
700
|
|||||||||||||
Net
earnings
|
$
|
42,725
|
$
|
8,031
|
$
|
42,454
|
||||||||||
Net
earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.73
|
$
|
1.72
|
||||||||||||
Diluted
|
$
|
1.73
|
$
|
1.71
|
||||||||||||
Weighted-average
shares outstanding:
|
||||||||||||||||
Basic
|
24,735
|
24,735
|
||||||||||||||
Stock
options and restricted stock units
|
24
|
24
|
||||||||||||||
Diluted
|
24,759
|
24,759
|
Consideration:
|
||||
Purchase
price paid to Trustreet
|
$
|
83,404
|
||
Allocated
transaction costs
|
1,131
|
|||
Total
consideration
|
$
|
84,535
|
||
Assets
Acquired:
|
||||
Real
estate investment properties
|
$
|
81,489
|
||
Above
market leases
|
4,569
|
|||
Leases
in-place and tenant relationships
|
3,168
|
|||
Total
|
89,226
|
|||
Liabilities
Assumed:
|
||||
Below
market leases and other liabilities
|
4,691
|
|||
Net
assets acquired
|
$
|
84,535
|
(A) |
Represents
(i) the purchase of five properties acquired by the Company on April
23,
2007 including costs allocated to, but not limited to, leases in-place,
above market value leases and below market value leases, (ii) accrual
of
related expenses, and (iii) additional borrowings under the Company’s
credit facility to fund the purchase.
|
(B) |
Represents
the Company’s straight-line rent adjustment to the Trustreet Portfolio
historical rental income.
|
(C) |
Represents
the Company’s rental income adjustment related to the amortization of
above market leases and below market leases which is recognized on
a
straight-line basis over the remaining term of the leases, which
averages
11 years and includes the tenant’s option terms for below market
leases.
|
(D) |
Represents
the Company’s depreciation and amortization expense related to the value
of buildings, equipment, leasehold improvements and leases in-place.
Buildings, equipment, leasehold improvements and leases in-place
are
depreciated on a straight-line basis over twenty-five years for building,
ten to sixteen years for equipment, the lesser of the life of the
asset or
the lease term for leasehold improvements and the term of the lease
for
leases in-place.
|
(E) |
Represents
adjustment to interest expense due to an assumed $84,535,000 increase
in
borrowings outstanding under the credit facility at the Company’s average
borrowing rate for the period. If average market interest rates were
0.125% higher for the three months ended March 31, 2007 and the year
ended
December 31, 2006, the pro forma interest expense adjustments would
have
increased by approximately $26,000 and $106,000, respectively.
|
Getty Realty Corp. | ||
|
|
|
Date: June 14, 2007 | By: | /s/ Thomas J. Stirnweis |
Vice President, Treasurer and Chief Financial Officer |