Getty Realty's (GTY) Car Wash segment trends will weigh on the company's narrative in the intermediate term, UBS Securities said in a Friday note
UBS initiated coverage on the company with a neutral rating and a $32 price target.
The trends, which have been choppier partly because of more competition and the Zips Car Wash bankruptcy, will restrict its cost of capital and limit external growth, UBS said.
"We could get more positive on GTY with evidence that the Zips Car Wash bankruptcy is operator-specific and not a contagion issue in the rest of its car wash segment," UBS said.
The firm said the bankruptcy of Zips Car Wash, which comprises 1.8% of Getty Realty's annualized base rent, is expected to weigh on 2025 adjusted funds from operations per share by minus $0.02, or minus 1%.
Price: 30.59, Change: +0.02, Percent Change: +0.07
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