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JERICHO, N.Y. -- Getty Realty Corp. is continuing its eviction proceedings against several Connecticut subdealers of NECG Holdings Corp., the company revealed during its 2013 fiscal fourth-quarter earnings call. NECG Holdings, however, continues to be an excellent tenant and is in good standing, according to the real estate investment trust (REIT).
NECG Holdings, an affiliate of CPD Energy, leased 84 properties from Getty Realty on Dec. 20, 2012, in the aftermath of the well-publicized 2011 bankruptcy of Getty Petroleum Marketing Inc., which had leased 799 c-stores and gas stations prior to its Chapter 11 filing. NECG was among eight companies that leased sites from Getty Realty in December 2012.
Due to the subdealers continuing to fight the evictions in court, Getty Realty concluded that it was probable it would "not receive from NECG the entire amount of the contractual lease payments owed to Getty under the unitary lease due to the likely removal of properties and for rent payment deferrals previously agreed to related to the year ended Dec. 31, 2013," the company stated in a news release.
Getty Realty noted that it recorded a $3.2-million non-cash allowance in its 2013 fourth quarter to reflect these proceedings. This allowance had an effect on Getty Realty's net earnings for the quarter.
The REIT generated a $5-million profit for its most recent quarter, compared to $5.8 million during the same period in 2012. The sale of 51 retail locations for $5.7 million in the fourth quarter was a primary driver of earnings.
For all of 2013, Getty Realty enjoyed a net profit of $70 million, much higher than the $12 million the REIT earned in 2012.
"As we look into 2014, we are energized by organic growth opportunities available to us from our current portfolio of assets and from the external growth prospects that we continue to pursue," Getty Realty CEO David B. Driscoll said during today's earnings call. "With a well positioned capital structure and a low-leveraged balance sheet, we believe we will enhance value for our shareholders in the coming years."
Regarding organic opportunities, Driscoll said the company is looking to redevelop or renovate convenience store and gas station locations in an effort to increase revenues for both the company and the property lessees.
Jericho, N.Y.-based Getty Realty now owns approximately 950 properties nationwide.