Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (June 2020)
29 slides from Agree Realty's investor presentation, Jun 16, 2020
Slide 1: ADC 2020 – Joey Agree, President & CEO
ADC2020 Joey Agree President & CEO
Slide 2: ADC Overview
ADC Overview = rer: =.
Slide 3: Agree Realty Corporation Overview
Agree Realty Corporation Overview (NYSE: ADC) The Country’s Premier Retail Portfolio Our Company $4.5 billion enterprise value(1) 868 retail properties totaling approximately 16.3 million square feet in 46 states 61% of ABR derived investment grade tenants(2) Investment grade credit ratings
Slide 4: Recent Highlights
Recent Highlights Increased 2020 acquisition guidance to $700 million to $800 million(1) $375 million of announced acquisition activity YTD including 12 Walmarts $42 million of announced disposition activity YTD including 10 franchise restaurants $780 million of equity raised in 2020 year-to-d
Slide 5: Agree Realty at March 31, 2020
Agree Realty at March 31, 2020 Company Overview Tenants $ in millions Annualized Tenant / Concept Base Rent % of Total Share Price (1) $70.11 (5) (5) $16.9 7.5% Equity Market 10.0 4.6% $3.8 Billion Capitalization(1)(2) 8.2 3.8% 7.4 3.4% Property Count 868 properties 7.1 3.3% Top 3 Tenant 6.8 3.2% 14
Slide 6: Targeting Best-In-Class Retailers
Targeting Best-In-Class Retailers Retail Credit Type (% ABR) National Investment Grade(1) 61% Sub-Investment Grade Not Rated 21% Super-Regional 18% Franchise z As of May 29, 2020. Any differences are a result of rounding. (1) Based on ABR derived from tenants, or parent entities thereof, with an inv
Slide 7: Acquiring Ground Leases Across the Country
Acquiring Ground Leases Across the Country (1) Ground Lease Portfolio Overview Leading Tenants 66 properties 8.5% of total ADC portfolio ABR 10.6 years weighted-average lease term Credit Overview (% ABR) Top Ground Lease Tenants (% ABR) 19% Investment Grade(1) 89% 16% 9% 9% 7% WMT LOW Wawa HD
Slide 8: ADC Investment Platforms
ADC Investment Platforms
Slide 9: Three External Growth Platforms
Three External Growth Platforms Leverage real estate acumen and differentiated investment platforms to identify best risk-adjusted retail net lease opportunities Partner Capital Solutions (“PCS”) “Inorganic” development Development Acquisitions Partner with private developers “Organic” develop
Slide 10: Development Overview
Development Overview Build-to-suit, backfill of vacant boxes, and ground lease projects targeting returns of 9%, with a minimum 200 basis point spread above comparable acquisition capitalization rates Option on land during lease negotiations Lease executed and contingencies waived before land
Slide 11: Partner Capital Solutions (PCS) Overview
Partner Capital Solutions (PCS) Overview Provides developers access to institutional capital and development expertise Offers developers a one-stop shop to secure both capital and a forward commitment to purchase Enables developers to focus on growing their retailer relationships and developme
Slide 12: Acquisitions Overview
Acquisitions Overview Bottoms-up emphasis on retail real estate fundamentals and residual value Demographics Retail Synergy Traffic Counts Competition Visibility Access Top-down focus on national and super-regional retailers in e-commerce and recession resistant sectors Credit Prof
Slide 13: What Has ADC Been Investing In?
What Has ADC Been Investing In? The retail landscape continues to dynamically evolve as market forces & COVID-19 cause significant disruption To mitigate risk Agree adheres to a number of investment criteria, with a focus on four core principles: E-commerce resistance (omni-channel critical)
Slide 14: Ramping Investment Activity
Ramping Investment Activity ADC has invested more than $3.2 billion (1) in the past few years & continues to accelerate Investment Activity $ in millions $16.6 $800.0 $700 to $32.4 $700.0 $800 $701.4 $74.4 $600.0 $607.0 $500.0 $400.0 $62.7 $38.0 $336.8 $300.0 $295.8 $14.9 $200.0 $220.1 $100.0 $0.0 (
Slide 15: Increasing Exposure to Leading Operators
Increasing Exposure to Leading Operators Since January 1, 2018 Private % E-Commerce Recession Real Estate Sector Notable Tenants Equity Comments ABR(1) Resistance Resistance Attributes Change in Sponsorship Exposure(2) Risk mitigation through Home 10.5% High No Limited Varies ground leases & small I
Slide 16: Investing in the Best: Year-to-Date Walmart Activity
Investing in the Best: Year-to-Date Walmart Activity 12 Walmart stores; Total investment of $140 million Olean, NY Homewood, IL Jonesville, MI Chillicothe, OH Randleman, NC Fuquay-Varina, NC Boone, NC Sylva, NC El Paso, TX La Place, LA Sylacauga, AL Thayer, MO As of May 29, 2020. 15
Slide 17: Acquiring Unique High-Profile Real Estate
Acquiring Unique High-Profile Real Estate East Hampton, NY $9 million acquisition Build-to-suit store in a high barrier to entry market Closest competitor more than 3 miles away Rated A by S&P and A2 by Moody’s Excellent Demographics: 5-mile median HH income of $108K 16
Slide 18: ADC's Incentive
ADC's Incentive ADC’s $100K SUMMER 17
Slide 19: ADC People
ADC People
Slide 20: Acquisitions Team Overview
Acquisitions Team Overview Dynamic 10 person origination team Focused on aggregating opportunities through a regionalized approach Provides maximum exposure to prospective acquisition targets Strengthens relationships by providing one point of contact Team consists of four regional Vice Pres
Slide 21: Acquisitions Team – Eastern Region
Acquisitions Team – Eastern Region Dynamic 10-person origination team *Region based on broker location RYAN COCKERILL JUSTIN KREMERS VICE PRESIDENT ASSOCIATE 20
Slide 22: Acquisitions Team – Central Region
Acquisitions Team – Central Region Dynamic 10 person origination team *Region based on broker location ANDREW BELL GEORGE BISTOLARIDES SENIOR DIRECTOR ASSOCIATE 21
Slide 23: Acquisitions Team – Western Region
Acquisitions Team – Western Region Dynamic 10 person origination team *Region based on broker location BILL VITALE RILEY KENNEDY DIRECTOR DIRECTOR 22
Slide 24: Transactional and Diligence Team
Transactional and Diligence Team Best-in-class transactional team with 55+ years of combined experience Danielle Responsible for leading the Company’s transaction and Spehar, diligence activities Esq. Over 20 years of real estate transactional experience; General previously co-head of Real Estat
Slide 25: ADC's Fortress Balance Sheet
ADC’s Fortress Balance Sheet
Slide 26: Capital Markets Track Record
Capital Markets Track Record Raised $1B of Equity in less than 8 months $ millions Capital Markets Activity $800 $778 $531 $700 $600 $433 $500 $400 $229 $237 $300 $200 $225 $40 $100 $100 $125 $100 $100 $22 $0 2015 2016 2017 2018 2019 2020 YTD Secured Debt Unsecured Debt Common Equity As of April 21,
Slide 27: A "War Chest" Balance Sheet
A "War Chest” Balance Sheet Debt Maturities $ in millions $500.0 (1) $120.0 $125.0 $125.0 $100.0 $100.0 $100.0 $100.0 $80.0 $40.0 $60.0 $60.0 $50.0 $50.0 $40.0 $28.4 $20.0 $5.8 $0.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Revolving Credit Facility Unsecured Secured Capitalization
Slide 28: Develop | Acquire | Partner
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER ADC NYSE
Slide 29: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws, including statements about projected financial and operating results. Forward-looking statements are generally identifiab