Q4 2020 Getty Realty Corp Earnings Call
[music].
Good morning, and welcome to Getty Realty's, earning conference call for fourth quarter of 2020. This call is being recorded.
Dentation there'll be an opportunity to ask questions.
Art is 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-GAAP financial measures. Please go ahead Mr. Baker.
Thank you operator, I would like to thank you all for joining us for Getty Realty's fourth quarter and year end earnings conference call.
Yesterday afternoon. The company released its financial results for the quarter and year ended December 31 2024.
Form 8-K and earnings release are available on the Investor Relations section of our website at Getty Realty Dot com.
Certain statements made in the course of this call are not based on historical information and May constitute forward looking statements. These statements are based on 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 2000 and 'twenty one guidance and May also include statements made by management and their remarks and in response to questions, including regarding the company's response to the COVID-19 pandemic future company operations and financial performance and the company's acquisition or redevelopment plans and opportunities.
And 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, 2019, our subsequent quarterly reports filed on form 10-Q, and there are other filings made 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.
And our implied and any forward looking statements made today, you should not place undue reliance on forward looking statements, which reflect our view only as of the date hereof and the company undertakes no duty to update any forward looking statements that may be made in the course of this call also please refer to our earnings release for a discussion of our use of non <unk>.
GAAP financial measures, including our definition of adjusted funds from operations or a F. F O and a 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 fourth quarter and full year of 2020 earnings call with.
With Josh and me on the phone today are Mark Olear, our Chief operating officer, and Brian Dickman, Our new Chief Financial Officer.
Brian officially joined Yeti in December and I'd like to formally welcome him to the company on the call. This morning.
Known Brian for many years and we are all enjoying working with him on board was contributions Getty for years.
I'll begin today's call by providing an overview of our fourth quarter and full year 2020 performance update everyone on our business and the context of the ongoing COVID-19 pandemic.
On our 2021 strategic objectives, and then we'll pass the call to Mark Brian to discuss our portfolio and financial results in more detail.
We closed out 2020, with a highly productive quarter, which saw each aspect of our business post significant accomplishments.
During the year, we maintained high monthly rent collections and stable occupancy and our portfolio.
Acquired 34 properties and completed six redevelopment projects and.
And the net result was the continued growth on both our revenues from rental properties, which increased by three five per cent for the quarter and 5% per year and.
And our adjusted funds from operations per share, which grew by 12% from the quarter and seven years.
And a normal year, we'd be proud to report on this growth when you consider the countless challenges brought upon us by COVID-19, I can say with great satisfaction and these results only possible due to the extraordinary efforts put forth by the entire Getty team. This year I believe these results reflect the value of our portfolio.
And combined with our strong and flexible balance sheet and growing pipeline of investment prospects positioned the company well for success as we look towards 2021 and beyond.
I am pleased to report that our fourth quarter results continued to demonstrate the stability of our triple net lease spreads and growth platform.
Our portfolio of convenience stores gas stations and other automotive assets produced another strong quarter of rent collections operating performance and growth.
We saw our rent collection rate increased to 98, 7% and we collected and substantially all of the deferred rent and mortgage payments that were due to us and the fourth quarter.
And we enter 2021 with a small balance of Covid related deferrals, which we expect to collect throughout this year.
In addition, Getty completed several leasing and disposition transactions and the core.
It will serve to stabilize the small number of assets, where we were experiencing difficulties with rent collections.
Looking ahead, although uncertainty remains regarding the impact of COVID-19 to the broader economy. We are encouraged by the strength exhibited by our tenancy.
Since the beginning of the pandemic.
We will continue to be vigilant and monitoring the health of our tenants as we believe the severity of the COVID-19 pandemic on the U S economy will continue to impact.
Consumer and retail activity through at least the first half of 2021, and therefore could negatively affect Gettysburg collections and financial results.
The execution of the Companys acquisition strategy and important driver of Q4 and full year 2020 performance for.
For the quarter Getty acquired 10 properties reported $5 1 million and for the year, We acquired 34 properties for $150 million, which represents significant growth over the companys acquisition activity and the prior year.
These high quality assets are located in numerous markets across the country and include portfolios, both convenience stores, which offer consumers food traditional merchandise and fuel as well as car washes.
We also continued the momentum of our redevelopment program as we completed our third project Autozone and bringing our total of completed projects for the year to six.
We are closing in on completing 20 projects since the inception of our redevelopment strategy further demonstrating the value of the real estate, we hold on our portfolio.
Our balance sheet also into 2020 and excellent condition as we.
We successfully issued a 175 million three 4%.
Debt private placement and December.
And approximately 65 million of equity under our ATM program during the year.
Our leverage continues to be less than five times and with the revolver. Then it's almost completely undrawn and he has significant capacity on its growth.
Yes.
As we enter 2021, we feel encouraged about our portfolio of nearly 1000 properties.
And store industry and other automotive businesses are essential and largely internet resistant or rents, 65% of which come from the top 50, Msas and the U S continues to be well covered and fact, despite COVID-19 related challenges our rent coverage ratio remained stable throughout the year and ended 2020 on a healthy.
And two points at Pos.
Our portfolio was built around serving the needs of the car driving individual.
And it's continuing to do so whether it's stopping per convenience store items, youll getting snacks meals or get your car wash store service.
And our needs and that continued to be and high demand today, and which we believe will be stable for the mobile consumer for years to come.
Our team is more focused than ever on executing our growth initiatives, including maximizing the quality of our in place portfolio and through continued.
<unk> asset management.
Enhancing our portfolio through accretive acquisitions and stores and other automotive assets served on mobile consumer and unlocking embedded value for our select redevelopments.
We are confident and our targeted investment strategy, which focuses on acquiring high quality real estate and metropolitan markets across the country.
And and our ability to continually.
Successfully executing on these strategic objectives, our approach and focus on driving growth should result, and driving additional shareholder value as we move through the remainder of 2021 and beyond.
With that I will turn the call over to Mark olear to discuss our portfolio and investment activities.
Thank you Chris.
During 2020, Getty getty's underwriting of potential transactions grew as we added resources to focus on convenience store and other automotive opportunities.
On a year, we reviewed approximately $2 1 billion of opportunities, which met our initial screening process.
Convenience store opportunities represented 62% and other automotive represented 38% of the total.
As Chris mentioned, we remain highly committed to growing our portfolio in terms of both the convenience store industry, which offers consumers food traditional merchandise and fuel and with other automotive automotive related assets that are tied to mobile consumer spending.
Going forward, we anticipate growing both areas of our underwriting platform as we view the business is highly complementary and the underwriting characteristics to be very similar.
To review a few highlights of our investment activities.
For the fourth quarter, we invested 41.
And $45 1 million and 10 highly high quality <unk> store and Carwash assets.
In October we completed a sale leaseback with access co convenience stores and one of the leading independent convenience store operators and the southern United States.
And the transaction Getty acquired six properties for $28 7 million OLED located throughout the state of Texas.
These properties are subject to a unitary triple net lease with these 15 year base term and multiple renewal options.
The average lot size and $2 seven acres and average store size and extensive 5300 square feet.
Which reflected the assets, we acquired and have all the attributes of today's modern and full service convenience store.
Our initial cash yield is in line with our historical acquisition cap rate range.
In addition, we acquired four car wash assets and an individual transactions with go car wash and dips carwash for $16 4 million in the aggregate.
For the year, we acquired 34 properties for 150 million our weighted average initial return on acquisitions for the year was 7.0%.
Finally, the weighted average initial lease term and the properties required for the year was 14 six years.
Overall, our acquisition team remains busy sourcing and underwriting potential investments and we continue to feel strongly that the volume of opportunities. We are underwriting will produce additional growth as we progress through this year.
We expect that our future acquisition activity will remain focused on the convenience store and other automotive sectors and that we will pursue and direct sale leasebacks acquisitions, and net lease properties and funding for new to industry construction.
Finally, we remain committed to our core underwriting principles of acquiring high quality real estate and partnering with strong tenants and our target asset classes.
Moving to our redevelopment platform for the year, we invested approximately $2 9 million and both our completed projects and sites, which are in progress and the fourth quarter. We returned one redevelopment project back to the net lease portfolio, bringing our total free.
For a complete rank commencement projects, two six and 2020 and 19 since the inception of our program.
Specifically on October rent commenced on a project with Autozone, and New Jersey, and this project, we invested <unk> 2 million and we expect to generate a return on our investment of more than 45%.
In terms of redevelopment projects, we ended the quarter with 10 signed leases or letters of intent, which includes six active projects and four signed leases on properties, which are currently subject to triple net leases, which have not yet been recaptured from the current tenant.
We expect to have rent commencement at several sites during 2021 with remainder completing within three years.
On the capital spending side.
And invested approximately $1 8 million and the 10 redevelopment projects and our pipeline and estimate that these projects will require a total investment by Getty is $5 8 million.
We project. These redevelopments will generate incremental returns to the company and excess of where we could invest these funds and the acquisition market today.
For a more detailed information on the redevelopment pipeline. Please refer to pages 15, and 16 of our investor presentation, which can be found on our website.
We remain committed to optimizing our portfolio portfolio and continue to anticipate redevelopment opportunities over the next five years, possibly involving between five and 10% of our current portfolio.
And with targeted Unlevered redevelopment program yields of greater than 10%.
Turning to dispositions, we sold 11 properties during 2020, realizing proceeds of approximately 6 million. These properties, we sold silver vacant or returned to us by tenants per the terms of the least agreements.
We expect and net financial impact and these dispositions will be minimal.
In addition, during the year, we exited 10 properties, which we previously leased from third party landlords.
As we look ahead, we will continue to selectively dispose the properties, where we have made the determination that the property is no longer competitive etsy convenience store location, where does not have redevelopment potential.
The net result is on our portfolio is now 35 States plus Washington D C and 65% of our annualized base rent comes from it's up 50 national and that's it.
We ended the year with 946 net lease properties, six and six active redevelopment sites and seven vacant properties and a weighted average lease term is approximately nine five years and our overall occupancy excluding active redevelopments increased to 99, 3%.
With that I'll turn the call over to Brian Dickman to discuss our financial results.
Thanks, Mark and good morning, everyone I'm excited to be here with Chris and Mark Josh and the rest of the Getty team and I look forward to interacting with all of you going forward.
I'll start with a recap of earnings hopefully everyone's had a chance to see yesterday's release.
<unk>, which we believe best reflects the Companys core operating performance was <unk> 48 per share for the fourth quarter and $1 84 per share for the full year, representing year over year increases of 12% and 7% respectively.
<unk> was <unk> 91 per share for the fourth quarter and $2 32 per share for the full year, both periods were impacted by a nonrecurring legal settlement and the companys favor.
Our total revenues were $37 $1 million and the fourth quarter and $147 3 million for the full year representing year over year increases of three 3% and four 7% respectively.
<unk> income, which excludes tenant reimbursements and interest on notes and mortgages receivables grew three 9% to $31 $8 million and the fourth quarter and seven 1% for the full year to $128 2 million.
Acquisition activity rent escalators, and our leases and the completion of redevelopment projects all contributed to the growth and our rental income.
On the expense side, we benefited from a reduction and property costs and both the fourth quarter and full year, primarily due to decreases and third party rent expense and professional fees related to property Redevelopments.
Environmental expenses increased in the fourth quarter versus the prior year, although the amounts were credits in both periods and decreased for the full year versus 2019, environmental expenses are subject to a number of estimates and non cash adjustments and continue to be highly variable.
G&A expenses increased in both the fourth quarter and full year, primarily due to increases and employee related expenses, including stock based compensation and certain legal and other professional fees.
As previously mentioned and the fourth quarter, we had and nonrecurring benefit of $25 million as a result of the settlement of litigation matter.
For additional information please refer to our 10-K, which will be filed tomorrow.
Turning to the balance sheet and our capital markets activities. During the fourth quarter, we issued $175 million of new 10 year unsecured notes at 343% via a direct private placement of three life insurance companies.
We used the proceeds to retire the $400 million outstanding under our 6% series, a notes which were coming due in early 2021 and to repay borrowings under our credit facility.
As a result of this transaction, we incurred a $1 2 million debt extinguishment charge, which is included in GAAP net earnings and desktop.
We're also active with our at the market equity program during the quarter, raising $25 $1 million and an average price of $28.45 per share for the full year, we raised $64 4 million per the ATM and average price of $29 16 per share, which helped to fund our growth and maintain on low leverage profile.
As of December 31st, we and total debt outstanding of 550 million, including $25 million outstanding under our credit facility and $525 million on long term fixed rate unsecured notes.
Our weighted average borrowing cost was four 1% and a weighted average maturity of our debt seven three years.
In addition, our total debt to total market capitalization was 32% our total debt to total asset value was 40% net debt to EBITDA was four nine times.
We have no debt maturities until June of 2023, other than our credit facility, which matures in March of next year as a one year extension option at our election.
As we look ahead and think about our capital needs and we remain committed to maintaining a conservative well <unk> and flexible capital structure.
With respect to our environmental liability, we ended the quarter and year at $48 1 million, which was down $2 6 million from the end of 2019.
And fourth quarter and full year net environmental remediation spending was approximately $1 6 million and $6 4 million respectively.
And finally, we are introducing our 2021 <unk> per share guidance and a range of $1 86 to $1 80 per share. Our guidance includes transaction activity to date and does not otherwise assume any potential acquisitions or capital markets activities for the remainder of 2021.
Specific factors, which impact our guidance. This year include the full year impact of our 2020 investment and capital raising activities our expectations net operating costs will generally continue to increase.
Our expectation and we'll forego rent when we recapture properties for redevelopment.
And our expectation that and we will remain active and pursuing acquisitions and Redevelopments, which could result in additional expenses for deals ultimately not completed.
And that I'll turn the call back to Chris.
Thanks, Brian that concludes our prepared remarks, so let me ask the operator to open the call for questions.
At this time, we'll be conducting a question and answer session.
Like to ask a question. Please press star one on your telephone keypad and confirmation tone will indicate your line is and the question queue and the press star two and if you'd like to read a question from the queue and for participants using speaker equipment and may be necessary to pick up per handset before pressing the star keys.
One moment, please while we poll for questions.
Okay.
And our first question is from Anthony alone with J P. Morgan. Please state your question.
Thanks, Good morning, and welcome Brian.
Carl.
My first question is.
And your largest tenant Arco and just curious if they're lasting change.
Changes anything for you all and whether that that helps.
And maybe do they have a growth mandate I think Mark you had mentioned.
And your potential partnering with tenants with their growth and objectives and that being a source of deal. So I'm. Just wondering if any of that has a role on that.
Yes.
Yeah, I'll, maybe give you my perspective, and I'll, let mark hotspot and the growth sides of their business.
Arco was somebody that journey Todd relationship with since the mid two thousands.
We've got four leases with them today.
And they've been very acquisitive, we talk to them on a regular basis and.
Having another town and that's public where we can see there their performance quarter to quarter.
Certainly I think it's very helpful from an asset management and.
Credit underwriting perspective.
Yes, just to Echo what Chris said, we are we were in constant contact and not only them, but most of all of our tenants.
And that have a growth program and our current.
Portfolio.
They've been a great partner.
And we shared a similar.
View on on.
Underwriting of both real estate and the business opportunity and.
Yes.
They constantly make us aware of what they might be looking at and.
And they've been a good partner and they seem to be remaining very active and we're happy to look at things with them.
And I mean can you.
Talk a bit more about the deal pipeline and you did.
$35 million and a quarter or two.
The solid.
Run rate if you can kind of keep that pace from maybe if you could comment on weather.
Youre seeing a large amount of flow or or not and yields.
Yeah, I can talk specifically about the opportunity flow and there was a bit of a pause as we mentioned on our on our quarterly calls throughout last year and <unk> focused on.
Running your business and Miss of.
The early stages of the pandemic.
But the rebound was noticeable coming up and the end of the year and certainly coming through the beginning of this year. So.
We're pretty excited about the deal flow.
Opportunities that we.
And we need our initial underwriting criteria.
And the asset classes that we have.
Summarized here on the call today.
So we're encouraged that.
And that activity and the pipeline of underwriting will continue to generate opportunities for us too.
Stay on pace through this year.
Okay, and you said yields consistent with your historical ups can you just remind us kind of where those might be and whether.
And not theres been much change and the market.
So the range that we always quote is the.
Mid to high sixes to low 7% range.
There is definitely a lot of activity around our asset class both COVID-19.
Convenience and gas and other automotive.
There's been some slight pricing movement and the market.
And with the activity and the interest in the assets coming out of the pandemic having.
Performs so strongly and remained open as essential businesses.
We haven't again at and not seen it run off and those opportunities coming our way we're doing our team is doing a great job both maintaining the relationships with the growing tenants.
The deal sponsors and certainly has ramped up our our business development activity, where we're generating new.
New opportunities that might not be as broadly marketed which would hopefully.
Put some type of balance to the pricing versus broadly marketed deals.
Okay got it thank you.
So on it.
And our next question is from Todd Thomas with Keybanc capital markets.
Hi, Thanks, good morning.
Just wanted to follow up a little bit on the deal flow commentary, there and and <unk>.
Curious relative to the split that you saw on 2020.
C stores I think you said comprised 62% of the year's acquisitions. Other automotive was 38% how should we think about that mix for our future investments going forward.
Yes.
So just to be clear right.
$62 30 split that Mark mentioned Thats, what we underwrote for the year.
And you look and what was completed for the year and probably most of the inverse of that right, where we actually acquired more.
Our other automotive categories.
We view both the categories.
And how important and yeti and and obviously, we'd prefer to be sort of 50, 50 and looking at as many opportunities and we can and both of those target markets.
So that's my perspective on it.
Yeah again, we broadened our strategic on.
Underwriting about two years ago to expand outside of pure convenience and gas conclude other automotive so.
Getty lifecycle, it's relatively new.
Initiative, but that said, we've ramped up extremely quickly and made significant inroads to sourcing opportunities and the other automotive category.
I would expect that it will continue to grow as a component of the underwriting pipeline, but not only that growth pipeline. So.
Nope.
Growth grow the pie as you say and and kind of.
Maintain a growth of both.
And new opportunities new relationships on both and all of those asset classes.
Okay, and then you know.
And the portfolio, Chris I think you know you you.
You noted right, which was its been built around car driving.
As we sort of think about the reopening.
And make our way through 'twenty, one is there an opportunity.
Whether it's automotive or C stores is there an opportunity to do something larger on the investment front or strategic in nature to sort of gain leverage to the reopened for these assets.
Yes.
We're always we're always looking at opportunities big and small.
And all.
Obviously, our current set of plans right is to continue to acquire portfolio of single assets like we have done.
But we certainly feel that debt.
Consumer right.
And to get out right, especially once that everyone's vaccinated and yet.
Yes.
Sort of back to normal on as much as possible. So we think it's going to be actually.
Beneficial to our asset types of the year goes on.
But again today the plan is to continue to.
And our managed opportunities.
And our pipeline and and underwrite new opportunities.
And if something larger comes our way, we certainly think we've got the balance sheet and capacity to do it but.
We'll just evaluate that is.
And if it does that.
And as itself to us.
Do you expect to see sort of and uptake or a flurry of investment activity and transaction activity within within the space overall.
We've been seeing that over.
Over the years, but there's obviously been more and more interest the convenient store has been one of the healthier segments of the retail.
And at least landscape over the last couple of years. So there's certainly been more competition coming.
I think other other institutional and public real estate investors have always been focused on some of the other automotive.
Asset classes. So there is a steady stream of competition there.
Yeah.
The term essential right, it's sort of a new a new phrase right. So we now know that our portfolio is.
Almost 100%.
Essential businesses and I think youll continue to see investors flocked to that.
And a quick quote on quote essential basket. So you may see more competition, but from our perspective.
We think the competition has been there and we think <unk> been able to successfully.
Bring opportunities and underwrite those opportunities and closed deals. So we're more focused on executing on our pipeline and what we can underwrite and bring in.
Okay, and just last question for Brian Brian regarding the the.
And the balance sheet here and and the cash balances is that expected to be whittled down by year end does that you know sort of the first source of funding for acquisitions or do you expect to sit with a higher cash balance throughout the year.
Hey, Todd No I think you'll see us manage that as efficiently as possible and sometimes you get those moments and time at the end of the year at the end of the quarter.
We will utilize cash on hand realize cash from operations. After dividends, we will utilize the revolver, which as we said it had a small balance at the end of the year and will continue to be active with the ATM. So.
And I think youll see issues.
Full suite of sources available to us and certainly cash sitting on the balance sheet and and cash from operations is a good place to start from a cost perspective cost of capital perspective.
Alright, great. Thank you.
Okay.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is and the question queue net.
<unk> start to feel like and maybe a question from the queue and food.
Participants using speaker equipment and maybe necessary.
It's before price and the Spartan and then.
And please while we poll for further questions.
And our next question comes from John and Masako weighted Ladenburg Thalman.
Good morning, and welcome to the call Brian.
As you look out into the pipeline today and I guess, how does the acquisition opportunity set kind of bifurcate between maybe one off deal. Some of these mid sized portfolios that you've done recently and maybe larger portfolios relative to the size of Getty.
So it's.
Its mostly going to be.
Weighted towards the mid sized portfolios, we continue to scour the marketed one off opportunities to just supplement the pipeline, but you know those deals being kind of on the brokerage called bite sized deals and the $1 million and $2 million range or if they're if we like the real estate and like the tenant and.
Our returns we will not ignore those but it's hard to it's hard to fill program with those deals. So we're focused on the midsized pipeline deals and mid sized portfolio deals I should say.
The larger institutional deals we are aware of but.
And I think in the.
And the buckets, you just summarize and kind of at the mid size portfolio deals both.
Marketed and as I said before.
Those opportunities are being mined by our business development team.
And we're trying to generate relate new relationships to kind of.
Work on our both our tenant and our geographic diversity and just continue to grow the opportunity set for future on future transactions.
Okay, and do you think about cap rates have they trend and pretty much the same and all three of those buckets or has.
Maybe they have been more compression and one of those buckets versus the other.
I think there's been a general.
Shift downward right you can see from what we've been able to.
And by over the last couple of years, but I don't think that's a dramatic shift Jon but it certainly feels like there has been on.
On a steady tightening.
And the sector over the last four to five years.
And I still think the market for what Getty is looking at us and that are.
Our quarter and earlier today that kind of mid sixes to low sevens right and that's kind of our sweet spot, that's moving and want to do over the last couple of years and.
Yes.
Sure.
There's no change from our perspective and parents and what we're looking for.
Okay, and then and.
In terms of the other automotive bucket.
And it seems like Thats, primarily consisted of car washes and kind of tire auto park et cetera, I mean, I guess how wide could that.
Opportunity set yet on things like car dealerships potentially in that.
Net investment targeted area or is it pretty much just what's been completed maybe over the last two years three years.
I think the types of operation and what we view as either automotive or certainly the carwash tire and battery.
<unk> and oil change collision centers.
It's kind of the set we've been working on and we've not been pursuing the auto dealerships as part of that opportunity set as of today.
And.
We like that.
Classes that I, just mentioned are very similar to what we already own and are comfortable owning their debt.
One and two acre lots there convenience driven.
There.
In and around other retail generators are centers of influence high traffic.
And which kind of.
And leads to our real estate attribute underwriting criteria that we always reference although it's a great and may be great Carwash Street C store and great.
Tire and battery center and also to be a great piece of property for us to want to acquire so it has to have those underlying attributes of convenience visibility.
Proximity to other.
Traffic generators, so that's kind of the.
And that's kind of the verticals that we would consider other automotive.
Okay, and then maybe the flip side of the Arco going public Apple Green and potentially going private and I mean does that impact.
You guys at all either in terms of the opportunity set or.
Disclosure anything to that extent.
Yeah.
And all of those newer leases, we get site level reporting.
And Thats, how we kind of get our coverage that we disclosed on our investor presentation.
And with Arco being one of our bigger tenants today, it's certainly nice to get that public steady flow of information, we certainly had that with without low grade, but we've got a good dialog and we know what they are trying to execute and our portfolios with them.
No.
And we'll certainly miss having their reporting but it's.
And obviously can't control that so.
And to monitor all of our portfolios to the best of our ability and.
People go public or private, but we'll adjust accordingly.
Okay.
Thats It for me. Thank you all very much.
And our next question is from Josh <unk> with Bank of America.
Yeah, Good morning, guys and I hope everyone's well.
Question.
And if youre on a lot of well positioned with key stores.
Automotive location and it.
And of discussions about adding EV Chargers, so a lot of those locations. It seems like it could be an interesting opportunity.
Absolutely I mean, we're we've talk to our tenants all the time about.
Most of the properties that we own.
Yes.
Hum.
And on what the right.
Infrastructure is to add two properties were targets that will be done.
Got it from again.
And our crews today, Josh certainly.
Awful lot of study is ongoing.
How big convenience store and general.
<unk>.
Changes.
And consumer needs right.
And the fuel changes.
Desire to shop, and this these doors and requires a mix of product or or renovation and the store.
We're very supportive of all of our tenants.
Changing our product mix are changing there.
Is the strategy.
And support our assets.
We from time to time, either through redevelopment, our gross refunding, our tenants also invest in our properties rent and make sure that they remain competitive.
The C store business, obviously, there are on a lot of corners and.
And so many competitive business and everybody getty or our tenants needs to be aware of that the consumer needs change and and we.
Got it and make sure that we adapt our properties where their businesses to meet the consumers' needs.
Yes, no it seems interesting because I would imagine it takes a little bit longer to charge, the evs and fill up on a gas station and so maybe it drives extra sales and the box.
Oh wait longer.
Yes, and I appreciate the thoughts guys.
That's it from me guys. Thanks.
Ladies and gentlemen, we have reached the on the question and answer session and I would like to turn the call back over to Chris constant for closing remarks.
Great. Thank you operator, I just want to thank everybody for participating on the call today I appreciate your interest and Getty.
We look forward to updating everybody on our progress throughout 2021, and and look forward to getting back on the phone will report on Q1 earnings and late in April.
This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great day.