A month after its prime tenant declared bankruptcy, Getty Realty Corp. said Wednesday that it has received a favorable court ruling requiring the tenant to pay $12 million in rent and property taxes during proceedings.
Headquartered in Jericho, Getty Realty is landlord to more than 1,100 Getty and Mobil gasoline stations and convenience stores nationwide. Its prime tenant holds about 800 of its leases.
The tenant, Getty Petroleum Marketing Inc. (referred to as Marketing), must pay December and January rent and must cover its real estate tax obligations according to its master lease, Getty Realty said.
The court order, issued in U.S. Bankruptcy Court, Southern District of New York, gave Marketing until Jan. 17 to pay $3 million toward its obligations, and until Feb. 5 to pay another $9 million, Getty Realty said.
“We remain confident of the long-term value in the portfolio subject to the master lease and optimistic about the future of our company,” David B. Driscoll, Getty Realty's chief executive, said in a statement.
Getty Realty Corp. is the nation's largest publicly traded, gasoline station-focused real estate investment trust.
After the tenant declared bankruptcy last month the news had an immediate effect on Getty Realty Corp.'s share price, sending it down more than 3 percent overnight; it was down 51 percent for the year, from a high of $29.75, to $14.90 in premarket trading Dec. 6.
Since then the shares have steadied. In early trading Wednesday, after disclosure of the court order, Getty Realty shares rose 21 cents, to $14.93.
Problems at the Jericho realty company accelerated last February after an abrupt change in its relationship with Russian petroleum giant Lukoil Oil Co., which sold off its network of gasoline stations.
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