================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For quarter ended July 31, 1998 Commission file number 001-13777
------------- ---------
GETTY REALTY CORP.
------------------
(Exact name of registrant as specified in its charter)
MARYLAND 11-3412575
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
125 Jericho Turnpike, Jericho, New York 11753
- - --------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(516) 338 - 2600
----------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
Registrant had outstanding 13,566,068 shares of Common Stock, par value $.01 per
share, and 2,888,799 shares of Series A Participating Convertible Redeemable
Preferred Stock, par value $.01 per share, as of July 31, 1998.
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<PAGE>
GETTY REALTY CORP.
INDEX
Part I. FINANCIAL INFORMATION Page Number
- - ------- --------------------- -----------
Item 1. Financial Statements
Consolidated Balance Sheets as of July 31, 1998 and
January 31, 1998 1
Consolidated Statements of Operations for the three and
six months ended July 31, 1998 and 1997 2
Consolidated Statements of Cash Flows for the
six months ended July 31, 1998 and 1997 3
Notes to Consolidated Financial Statements 4 - 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8 - 11
Part II. OTHER INFORMATION
- - -------- -----------------
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 12
<PAGE>
<TABLE>
<CAPTION>
GETTY REALTY CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
- - -------------------------------------------------------------------------------------------------
July 31, January 31,
- - -------------------------------------------------------------------------------------------------
Assets: 1998 1998
- - -------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
Real Estate:
Land $129,029 $129,461
Buildings and improvements 170,293 162,162
-------------- -------------
299,322 291,623
Less - accumulated depreciation and amortization 67,638 63,600
-------------- -------------
Real estate, net 231,684 228,023
Cash and equivalents 902 10,034
Accounts receivable, net 1,859 2,524
Mortgages receivable 7,649 6,926
Recoveries from state underground storage tank funds 12,136 15,387
Prepaid expenses and other assets 7,028 5,649
-------------- -------------
Total assets $261,258 $268,543
============== =============
- - ----------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity:
- - ----------------------------------------------------------------------------------------------
Mortgages payable $37,855 $40,526
Accounts payable and accrued expenses 19,784 21,408
Environmental remediation costs 34,460 38,297
Deferred income taxes 30,370 29,719
-------------- -------------
Total liabilities 122,469 129,950
-------------- -------------
Stockholders' equity:
Preferred stock, par value $.01 per share; authorized
20,000,000 shares for issuance in series of which
3,000,000 shares are classified as Series A Participating
Convertible Redeemable Preferred; issued 2,888,799 at
July 31, 1998 and January 31, 1998 72,220 72,220
Common stock, par value $.01 per share; authorized
50,000,000 shares; issued 14,449,549 at July 31, 1998 and
14,446,929 at January 31, 1998 144 144
Paid-in capital 81,043 81,000
Accumulated deficit (695) (848)
Treasury stock, at cost (883,481 shares at July 31, 1998
and 883,461 shares at January 31, 1998) (13,923) (13,923)
-------------- -------------
Total stockholders' equity 138,789 138,593
-------------- -------------
Total liabilities and stockholders' equity $261,258 $268,543
============== =============
</TABLE>
See accompanying notes.
-1-
<PAGE>
<TABLE>
<CAPTION>
GETTY REALTY CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
- - -----------------------------------------------------------------------------------------------------------
Three months ended July 31, Six months ended July 31,
- - -----------------------------------------------------------------------------------------------------------
1998 1997 1998 1997
- - -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Revenues from rental properties $14,760 $14,932 $29,584 $29,878
Net sales of petroleum products 4,531 5,263 11,040 13,644
Other income 1,244 1,439 1,523 1,893
------------------------ ------------------------
20,535 21,634 42,147 45,415
------------------------ ------------------------
Equity in earnings of Getty Petroleum
Marketing Inc. - - - 2,931
------------------------ ------------------------
20,535 21,634 42,147 48,346
------------------------ ------------------------
Cost of sales of petroleum products
(excluding depreciation and amortization) 4,222 5,019 9,734 12,418
Rental property expenses 3,239 3,572 6,510 6,882
Environmental and maintenance expenses 4,819 2,331 6,459 3,571
Selling, general and administrative expenses 1,905 3,886 3,869 7,230
Depreciation and amortization 2,403 2,419 4,736 4,806
Interest expense 701 1,309 1,434 2,689
Change of control charge - - - 2,166
------------------------ ------------------------
17,289 18,536 32,742 39,762
------------------------ ------------------------
Earnings before provision for
income taxes 3,246 3,098 9,405 8,584
Provision for income taxes 1,345 1,148 3,975 3,427
------------------------ ------------------------
Net earnings 1,901 1,950 5,430 5,157
Preferred stock dividend 1,282 - 2,564 -
------------------------ ------------------------
Net earnings applicable to common stockholders $619 $1,950 $2,866 $5,157
======================== ========================
Net earnings per common share:
Basic $.05 $.15 $.21 $.40
Diluted $.05 $.15 $.21 $.39
Weighted average common shares outstanding:
Basic 13,566 13,118 13,565 12,944
Diluted 13,572 13,314 13,574 13,194
</TABLE>
See accompanying notes.
-2-
<PAGE>
<TABLE>
<CAPTION>
GETTY REALTY CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six months ended
July 31,
------------------------------
1998 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net earnings $5,430 $5,157
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 4,736 4,806
Deferred income taxes 651 (2,511)
Gain on dispositions of real estate (894) (692)
Equity in net earnings of Getty Petroleum Marketing Inc. - (1,731)
Change of control charge - 2,166
Stock option charge - 3,742
Changes in assets and liabilities:
Accounts receivable 665 874
Mortgages receivable (723) (52)
Recoveries from state underground storage tank funds 3,251 1,277
Prepaid expenses and other assets (1,460) (1,686)
Accounts payable and accrued expenses (1,624) (4,025)
Environmental remediation costs (3,837) (4,247)
Income taxes payable - (1,426)
------------------------------
Net cash provided by operating activities 6,195 1,652
------------------------------
Cash flows from investing activities:
Capital expenditures (9,630) (4,189)
Property acquisitions - (1,027)
Proceeds from dispositions of real estate 2,208 1,247
------------------------------
Net cash used in investing activities (7,422) (3,969)
------------------------------
Cash flows from financing activities:
Mortgage borrowings - 165
Repayment of mortgages payable (2,671) (2,532)
Payments under capital lease obligations - (3,032)
Cash dividends (5,277) (776)
Stock options, common and treasury stock, net 43 5,550
------------------------------
Net cash used in financing activities (7,905) (625)
------------------------------
Net decrease in cash and equivalents (9,132) (2,942)
Cash and equivalents at beginning of period 10,034 11,385
------------------------------
Cash and equivalents at end of period $902 $8,443
==============================
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest $1,453 $2,686
Income taxes, net 4,091 2,891
</TABLE>
See accompanying notes.
-3-
<PAGE>
GETTY REALTY CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. General:
The accompanying consolidated financial statements include the accounts of
Getty Realty Corp. and its wholly-owned subsidiaries (the "Company"). The
consolidated financial statements have been prepared in conformity with
generally accepted accounting principles and include amounts that are based on
management's best estimates and judgments. While all available information has
been considered, actual amounts could differ from those estimates. The
consolidated financial statements are unaudited but, in the opinion of
management, reflect all adjustments (consisting of normal recurring accruals)
necessary for a fair presentation. These statements should be read in
conjunction with the consolidated financial statements and related notes which
appear in the Company's Annual Report on Form 10-K for the fiscal year ended
January 31, 1998.
2. Spin-off:
On March 21, 1997, the Company effected the spin-off of its petroleum
marketing business to its stockholders. The Company retained its real estate
business and the Pennsylvania and Maryland home heating oil business, and leased
most of its properties on a long-term net basis to the spun-off company, which
is named Getty Petroleum Marketing Inc. ("Marketing").
The consolidated statement of operations of the Company for the six months
ended July 31, 1997 includes the financial results of the Marketing business
under the caption "Equity in earnings of Getty Petroleum Marketing Inc." for the
period from February 1, 1997 to March 21, 1997, amounting to pre-tax income of
$2.9 million ($1.7 million after-tax).
-4-
<PAGE>
The financial results of the retained real estate and heating oil
businesses for the quarters and six months ended July 31, 1998 and 1997 are set
forth below. The following financial information does not include the financial
results of Marketing and is presented for informational purposes only and is not
necessarily indicative of the financial results that would have occurred had the
real estate and heating oil businesses been operated as separate, stand-alone
entities during such periods, nor are they necessarily indicative of future
results (in thousands).
<TABLE>
<CAPTION>
Quarter ended July 31, 1998 Quarter ended July 31, 1997
--------------------------- ---------------------------
Real Heating Real Heating
Estate Oil Total Estate Oil Total
------ --- ----- ------ --- -----
<S> <C> <C> <C> <C> <C> <C>
Revenues from rental properties $14,733 $ 27 $14,760 $14,906 $ 26 $14,932
Net sales of petroleum products - 4,531 4,531 - 5,263 5,263
Other income (expense) 1,224 20 1,244 1,471 (32) 1,439
----------------------------------------------------------------
15,957 4,578 20,535 16,377 5,257 21,634
----------------------------------------------------------------
Cost of sales of petroleum
products (excluding depreciation
and amortization) - 4,222 4,222 - 5,019 5,019
Rental property expenses 3,233 6 3,239 3,566 6 3,572
Environmental and maintenance
expenses 4,819 - 4,819 2,331 - 2,331
Selling, general and
administrative expenses 1,438 467 1,905 3,380 506 3,886
Depreciation and amortization 2,261 142 2,403 2,288 131 2,419
Interest expense 701 - 701 1,309 - 1,309
----------------------------------------------------------------
12,452 4,837 17,289 12,874 5,662 18,536
----------------------------------------------------------------
Earnings (loss) before provision
(credit) for income taxes 3,505 (259) 3,246 3,503 (405) 3,098
Provision (credit) for
income taxes 1,457 (112) 1,345 1,320 (172) 1,148
----------------------------------------------------------------
Net earnings (loss) $2,048 ($147) $1,901 $ 2,183 ($233) $1,950
================================================================
</TABLE>
-5-
<PAGE>
<TABLE>
<CAPTION>
Six months ended July 31, 1998 Six months ended July 31, 1997
------------------------------ ------------------------------
Real Heating Real Heating
Estate Oil Total Estate Oil Total
------ --- ----- ------ --- -----
<S> <C> <C> <C> <C> <C> <C>
Revenues from rental properties $29,528 $ 56 $29,584 $29,824 $ 54 $29,878
Net sales of petroleum products - 11,040 11,040 - 13,644 13,644
Other income (expense) 1,481 42 1,523 1,898 (5) 1,893
-----------------------------------------------------------------
31,009 11,138 42,147 31,722 13,693 45,415
-----------------------------------------------------------------
Cost of sales of petroleum
products (excluding depreciation
and amortization) - 9,734 9,734 - 12,418 12,418
Rental property expenses 6,499 11 6,510 6,873 9 6,882
Environmental and maintenance
expenses 6,459 - 6,459 3,571 - 3,571
Selling, general and
administrative expenses 2,886 983 3,869 6,263 967 7,230
Depreciation and amortization 4,457 279 4,736 4,548 258 4,806
Interest expense 1,434 - 1,434 2,689 - 2,689
Change of control charge - - - 2,166 - 2,166
-----------------------------------------------------------------
21,735 11,007 32,742 26,110 13,652 39,762
-----------------------------------------------------------------
Earnings before provision
for income taxes 9,274 131 9,405 5,612 41 5,653
Provision for
income taxes 3,920 55 3,975 2,211 16 2,227
-----------------------------------------------------------------
Net earnings $ 5,354 $ 76 $5,430 $ 3,401 $ 25 $3,426
=================================================================
</TABLE>
3. Earnings per share:
Basic earnings per share is computed by dividing net earnings less
preferred dividends by the weighted average number of common shares outstanding
during the period. Diluted earnings per share reflects the potential dilution
from the exercise of stock options in the amounts of 6,000 shares and 196,000
shares for the quarters ended July 31, 1998 and 1997, respectively, and 9,000
shares and 250,000 shares for the six months ended July 31, 1998 and 1997,
respectively. For the quarter and six months ended July 31, 1998, conversion of
the Series A Participating Convertible Redeemable Preferred stock (which was
issued on January 30, 1998) into common stock utilizing the if-converted method
would have been antidilutive and conversion was not assumed for purposes of
computing diluted earnings per common share.
-6-
<PAGE>
4. Stockholders' equity:
A summary of the changes in stockholders' equity for the six months ended
July 31, 1998 is as follows (in thousands):
<TABLE>
<CAPTION>
Treasury
Preferred Common Paid-in Accumulated Stock,
Stock Stock Capital Deficit at cost Total
- - ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance,
January 31, 1998 $72,220 $144 $81,000 ($848) ($13,923) $138,593
Net earnings 5,430 5,430
Cash dividends (5,277) (5,277)
Issuance of
common stock 30 30
Stock options 13 13
------------------------------------------------------------------------
Balance,
July 31, 1998 $72,220 $144 $ 81,043 ($695) ($13,923) $138,789
========================================================================
</TABLE>
-7-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Spin-off
- - --------
On March 21, 1997, the Company effected the spin-off of its petroleum
marketing business to its stockholders. The Company retained its real estate
business and the Pennsylvania and Maryland home heating oil business, and leased
most of its real estate properties on a long-term net basis to the spun-off
company, which is named Getty Petroleum Marketing Inc.
("Marketing").
The consolidated statement of operations of the Company for the six
months ended July 31, 1997 includes the financial results of the Marketing
business under the caption "Equity in earnings of Getty Petroleum Marketing
Inc." for the period from February 1, 1997 to March 21, 1997, amounting to
pre-tax income of $2.9 million ($1.7 million after-tax).
Results of Operations - Quarter ended July 31, 1998 compared
with quarter ended July 31, 1997
--------------------------------
Revenues from rental properties for the quarters ended July 31, 1998
and 1997 principally represent rental income from Marketing ($14.1 million and
$14.3 million, respectively) with the remainder from other lessees and
sublessees.
Net sales of petroleum products from the Company's retained heating oil
business for the second fiscal quarter ended July 31, 1998 were $4.5 million
(most of which revenues occur in the first and fourth fiscal quarters) as
compared with $5.3 million during the same quarter last year. The $.8 million
decrease in petroleum product sales was principally due to a 14.0% decrease in
average selling prices of petroleum products. Gross profit from such sales
before depreciation and amortization was $.3 million and $.2 million for the
quarters ended July 31, 1998 and July 31, 1997, respectively. The $.1 million
increase in gross profit was due to higher product margins.
Other income was $1.2 million for the three months ended July 31, 1998
as compared with $1.4 million for the quarter ended July 31, 1997. The decrease
in other income of $.2 million was principally due to a management fee for
administrative and other services paid by Power Test Investors Limited
Partnership ("PTI") during the quarter ended July 31, 1997, which was eliminated
as a result of the merger of PTI into the Company on January 30, 1998.
Rental property expenses were $3.2 million for the quarter ended July
31, 1998, a decrease of $.3 million as compared with the prior year quarter. The
decrease was due to lower rent expense and real estate taxes.
-8-
<PAGE>
Environmental and maintenance expenses for the quarter ended July 31,
1998 were $4.8 million as compared with $2.3 million for the quarter ended July
31, 1997. The current quarter included a revision to the Company's estimate of
future remediation costs of $4.0 million as compared to $2.3 million during the
prior year quarter. As of July 31, 1998, the Company had an accrual of $34.5
million representing management's best estimate for future environmental
remediation costs and had recorded $12.1 million as management's best estimate
for recoveries from state underground storage tank remediation funds. Such
accruals are reviewed on a regular basis and any revisions thereto will be
reflected in the Company's financial statements as they become known.
Selling, general and administrative expenses for the quarter ended July
31, 1998 amounted to $1.9 million, a decrease of $2.0 million as compared with
the quarter ended July 31, 1997. The decrease was primarily due to a $1.9
million charge recorded in the prior year quarter relating to stock options.
Depreciation and amortization was $2.4 million for the quarter ended
July 31, 1998, which was comparable to the quarter ended July 31, 1997.
Interest expense for the three months ended July 31, 1998 amounted to
$.7 million as compared with $1.3 million for the quarter ended July 31, 1997.
The decrease in interest expense of $.6 million was principally due to the
elimination of capitalized lease obligations as a result of the merger of PTI
into the Company on January 30, 1998.
Results of Operations - Six months ended July 31, 1998 compared
with six months ended July 31, 1997
-----------------------------------
Revenues from rental properties for the six months ended July 31, 1998
and 1997 principally represent rental income received from Marketing ($28.3
million and $28.5 million, respectively) with the remainder from other lessees
and sublessees.
Net sales of petroleum products from the Company's retained heating oil
business for the six months ended July 31, 1998 were $11.0 million as compared
with $13.6 million during the same period last year. The $2.6 million decrease
in petroleum product sales was due to a 15.1% decrease in average selling prices
and 4.6% of lower gallonage sold due to a warmer than normal season. Gross
profit for the retained heating oil business was $1.3 million for the six months
ended July 31, 1998 and $1.2 for the six months ended July 31, 1997 as higher
product margins during the current period more than offset the lower sales
volumes.
Other income was $1.5 million for the six months ended July 31, 1998 as
compared with $1.9 million for the six months ended July 31, 1997. The decrease
in other income was principally due to a management fee for administrative and
other services paid by PTI during the six months ended July 31, 1997, which was
eliminated as a result of the merger of PTI into the Company on January 30,
1998.
-9-
<PAGE>
Rental property expenses were $6.5 million for the six months ended
July 31, 1998 as compared with $6.9 million for the six months ended July 31,
1997. The decrease was due to lower rent expense and real estate taxes.
Environmental and maintenance expenses for the six months ended July
31, 1998 were $6.5 million as compared with $3.6 million for the six months
ended July 31, 1997. The increase in environmental and maintenance expense was
principally due to a revision of the Company's estimate of future remediation
costs.
Selling, general and administrative expenses for the six months ended
July 31, 1998 amounted to $3.9 million, a decrease of $3.4 million as compared
with the six months ended July 31, 1997. The decrease was primarily due to a
$3.7 million charge recorded in the prior year six month period relating to
stock options.
Depreciation and amortization was $4.7 million for the six months ended
July 31, 1998, which was comparable to the six months ended July 31, 1997.
Interest expense for the six months ended July 31, 1998 amounted to
$1.4 million as compared with $2.7 million for the six months ended July 31,
1997. The decrease in interest expense of $1.3 million was principally due to
the elimination of capitalized lease obligations as a result of the merger of
PTI into the Company on January 30, 1998.
During the six months ended July 31, 1997, the Company recorded a
charge of $2.2 million related to change of control agreements in connection
with the spin-off.
Liquidity and Capital Resources
- - -------------------------------
The Company's principal sources of liquidity are cash flows from
operations and its short-term uncommitted lines of credit. Management believes
that cash requirements for operations, capital expenditures and debt service can
be met by cash flows from operations, available cash and equivalents and credit
lines. As of July 31, 1998, such lines of credit amounted to $25 million, of
which $7.4 million was utilized in connection with outstanding letters of
credit. Borrowings under such lines of credit are unsecured and bear interest at
the prime rate or, at the Company's option, LIBOR plus 1.0% or 1.1%. Such lines
of credit are subject to renewal at the discretion of the banks. Although it is
expected that the existing sources of liquidity will be sufficient to meet its
expected operating and debt service requirements, the Company may be required to
obtain additional sources of capital in the future to fund certain property
acquisitions, which capital sources it believes are available.
During the six months ended July 31, 1998, the Company declared
quarterly cash common stock dividends of $.10 per share for each of the quarters
and quarterly preferred stock dividends of $.44375 per share for each of the
quarters. Such dividends aggregated $5.3 million for the six months ended July
31, 1998.
-10-
<PAGE>
The Company's capital expenditures for the six months ended July 31,
1998 amounted to $9.6 million, primarily related to the replacement of
underground storage tanks and vapor recovery facilities at gasoline stations. In
connection with the spin-off of the petroleum marketing business, the Company
agreed to be responsible for expenditures with respect to tank upgrades required
to meet the December 22, 1998 federal environmental standards and certain
environmental liabilities and obligations. As of July 31, 1998, the Company
estimates that in connection therewith, it will expend $10.0 million in capital
expenditures and $22.3 million, net of estimated recoveries, for environmental
liabilities and obligations, the latter of which has been fully accrued for.
-11
<PAGE>
PART II. OTHER INFORMATION
Item 5. Other Information
The date by which proposals of security holders intended to be
presented at the next annual meeting, currently scheduled for
June 17, 1999, must be received by the Company for inclusion
in the proxy statement for such meeting is December 31, 1998.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Designation of Exhibit
in this Quarterly Report
on Form 10-Q Description of Exhibit
------------ ----------------------
27 Financial Data Schedule
(b) Reports filed on Form 8-K:
None.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GETTY REALTY CORP.
------------------
(Registrant)
Dated: September 11, 1998 BY: /s/ JOHN J. FITTERON
--------------------------------
(Signature)
JOHN J. FITTERON
Senior Vice President, Treasurer
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
Dated: September 11, 1998 BY: /s/ LEO LIEBOWITZ
--------------------------------
(Signature)
LEO LIEBOWITZ
President (Chief Executive
Officer)
-12-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF GETTY REALTY CORP. AND SUBSIDIARIES AS OF
JULY 31, 1998 AND FOR THE SIX MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1999
<PERIOD-END> JUL-31-1998
<CASH> 902
<SECURITIES> 0
<RECEIVABLES> 2,070
<ALLOWANCES> 211
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 299,322
<DEPRECIATION> 67,638
<TOTAL-ASSETS> 261,258
<CURRENT-LIABILITIES> 0
<BONDS> 37,855
<COMMON> 144
0
72,220
<OTHER-SE> 66,425
<TOTAL-LIABILITY-AND-EQUITY> 261,258
<SALES> 11,040
<TOTAL-REVENUES> 42,147
<CGS> 9,734
<TOTAL-COSTS> 27,439
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 30
<INTEREST-EXPENSE> 1,434
<INCOME-PRETAX> 9,405
<INCOME-TAX> 3,975
<INCOME-CONTINUING> 5,430
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,430
<EPS-PRIMARY> .21
<EPS-DILUTED> .21
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF GETTY REALTY CORP. AND SUBSIDIARIES AS OF
JULY 31, 1997 AND FOR THE SIX MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> JUL-31-1997
<CASH> 8,443
<SECURITIES> 0
<RECEIVABLES> 2,079
<ALLOWANCES> 222
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 202,649
<DEPRECIATION> 104,826
<TOTAL-ASSETS> 156,375
<CURRENT-LIABILITIES> 0
<BONDS> 36,193
<COMMON> 1,414
0
0
<OTHER-SE> 56,424
<TOTAL-LIABILITY-AND-EQUITY> 156,375
<SALES> 13,644
<TOTAL-REVENUES> 45,415
<CGS> 12,418
<TOTAL-COSTS> 27,677
<OTHER-EXPENSES> 2,166
<LOSS-PROVISION> 33
<INTEREST-EXPENSE> 2,689
<INCOME-PRETAX> 8,584
<INCOME-TAX> 3,427
<INCOME-CONTINUING> 5,157
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,157
<EPS-PRIMARY> .40
<EPS-DILUTED> .39
</TABLE>
