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Getty Realty extends terms of $175M credit line

Mobil sign

Mobil sign Photo Credit: James Carbone

Getty Realty Corp. of Jericho has exercised its option for a one-year extension on the maturity date of a $175 million senior unsecured revolving credit agreement with a group of banks coordinated by JPMorgan Chase.

The new maturity of the credit agreement is March 27, 2012, and all other terms of the credit agreement remain the same. 

Getty Realty, which in January bought 59 Mobil station properties in the metropolitan area, did not say whether the credit term extension is related to unsettling news that Russian petroleum giant OAO Lukoil on March 2 had sold off its package of Getty property leases. 

Getty’s share price has hovered at around $22, down from a March 1 close of $28.85, since news of the Lukoil sale. 

One positive development since the news was Getty's receipt of a full monthly March rental payment from the company that — in a surprise disclosure last week — acquired the master lease for more than 800 Getty gas station properties.

The real estate investment trust also said it "met with and has commenced discussions with" the new lease owners, Cambridge Petroleum Holding Inc. of Manhattan. 

The Lukoil package of stations represents more than 75 percent of Getty's tenant base. 

Getty Realty owns or leases about 1,100 gas stations and convenience stores and nine petroleum terminals in 21 states. It had revenues of $84.5 million in 2009, its most recently reported fiscal year.

When it disclosed the transaction last week Getty said it "cannot provide any assurance that (the new leaseholder) will meet its rental, environmental or other obligations under the master lease with the company in the future."

The financial fate of Getty Realty is largely in the hands of a Manhattan maritime finance company whose chief executive, Bjorn Aaserod, has suddenly emerged as Getty's biggest tenant.

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