Stocks for the Jericho-based Getty Realty Corp. dipped yesterday after a company financial report revealed troublesome news about the real estatement investment trust’s largest tenant.
Getty Realty shares closed at at $23.20 yesterday, falling $1.44 — or 5.84 percent. Throughout the day, stocks for the company traded as low as $22.27.
Getty Realty’s preliminary second quarter financial report disclosed that Getty Petroleum Marketing, Inc. had lost a dispute with Bionol Clearfield LLC, with the judgment awarding Bionol $230 million.
Getty Petroleum’s leases account for about 55 percent of Getty Realty’s revenues, a J.P. Morgan research report estimated. Getty Realty does not own Getty Petroleum, but does license its name exclusively to the company.
Getty Petroleum has appealed the decision, but many are questioning its ability to pay rent to Getty Realty, analysts said.
“Information has emerged in the last few days that puts the revenue from their largest tenant at greater risk than it was before,” said Anthony Paolone, an analyst at J.P. Morgan.
Earlier this year, Getty Petroleum was sold by its owner, Lukoil, to Cambridge Petroleum Holdings, which made some investors question the company’s ability to pay its rent to Getty Realty without the support of Lukoil, Paolone added. Getty Petroleum representatives could not be reached for comment.
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