Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (May 2017)
24 slides from Agree Realty's investor presentation, May 2017
Slide 1: Develop | Acquire | Partner – May 2017
DEVELOP | ACQUIRE | PARTNER MAY 2017
Slide 2: Safe Harbor
Safe Harbor This presentation contains certain statements that are the Company’s and Management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered forward-looking statements under Federal Securities laws. Prospective investors are cautioned that any such
Slide 3: Agree Realty Corporation (NYSE: ADC)
Agree Realty Corporation (NYSE: ADC) Retail net lease REIT focused on growth through the acquisition and development of high-quality retail properties Our Company ▪ $1.7 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC ▪ 377 retail propertie
Slide 4: Recent Highlights
Recent Highlights Consistent execution has led to enhanced shareholder value Announced the appointment of Merrie S. Frankel to the Company’s Board of Directors Raised $237 million in equity during 2016 through two follow-on offerings and the ATM program Expanded $350 million credit facility with an
Slide 5: Investment Strategy
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Slide 6: Differentiated Real Estate Investment Strategy
Differentiated Real Estate Investment Strategy Leverage real estate acumen and three investment platforms to identify best risk-adjusted retail net lease opportunities ADC’s synergistic investment platforms adhere to the same core principles while pursuing opportunities along the full spectrum of ne
Slide 7: ADC's Unique Dual Capabilities
ADC’s Unique Dual Capabilities Emphasis on comprehensive real estate solutions drive multi-faceted partnerships DEVELOPMENT SALE-LEASEBACK ✓ Spearheading retailer ✓ Track record of execution expansion programs for over as acquirer and real estate four decades partner • In-house expertise • Ability t
Slide 8: Track Record of Execution
Track Record of Execution Since 2010, ADC has invested more than $1 billion in high-quality retail net lease properties Investment Activity $ in millions $350.0 $38.0 $300.0 $295.8 $250.0 $14.9 $220.1 $200.0 $17.7 $150.0 $147.5 $100.0 $28.4 $81.5 $73.3 $50.0 $38.6 $0.0 2011 2012 2013 2014 2015 2016
Slide 9: Accelerating Growth
Accelerating Growth Established real estate capabilities and growing market presence driving increased investment opportunities # of Properties Annualized Base Rent (“ABR”) $ in millions 400 $100.0 297 $97.8 377 $94.3 366 350 $90.0 300 $80.0 279 250 $70.0 $72.4 200 209 $60.0 $56.5 150 $50.0 130 $45.
Slide 10: Active Portfolio Management
Active Portfolio Management Our focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions 2011-2017: $111.8MM $20MM - $50MM $12.9MM $29.0MM $29.7MM Chippewa Commons North Lakeland Plaza Chippewa Falls, WI Lakeland, FL Ocala, FL Petoskey Town Center Ferris
Slide 11: Portfolio Summary
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Slide 12: Portfolio Transformation
Portfolio Transformation Execution has led to increased portfolio diversification and improved quality of rental income Property Type (% ABR) Top 3 Tenant Concentration (% ABR) 6% Tenant Ground Leases 70.0% Retail Retail 70.0% Net Lease Net Lease 71% 98% 55.0% Shopping 40.0% Centers 29% 2% 7% 25.0%
Slide 13: Portfolio Transformation
Portfolio Transformation January 2015 March 2017 Pharmacy 29.7% Pharmacy 15.0% Top QSRs 7.5% QSRs 6.8% Sectors Apparel 6.1% Grocery 6.8% 21.9% 10.5% Top Tenants 4.4% 4.3% 4.4% 3.2% # of 209 properties 377 properties Properties Enterprise $0.8 billion $1.7 billion Value As of March 31, 2017. 12
Slide 14: Current Portfolio Snapshot
Current Portfolio Snapshot Tenants Lease Expirations $ in millions Annualized Tenant / Concept Base Rent(1) % of Total 60% 54% $10.3 10.5% 50% 4.2 4.3% 40% 3.1 3.2% 30% 2.8 2.8% 20% 2.7 2.7% 10% 9% 2.6 2.6% 5% 6% 4% 6% 7% 5% 2% 3% 0% 2.5 2.6% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Slide 15: National and Super-Regional Retailers
National and Super-Regional Retailers Industry-leading brands and retailers operating in e-commerce resistant sectors Retail Tenant Type (% ABR) National 76% z Super-Regional 15% Franchise 9% z z As of March 31, 2017. 14
Slide 16: Leading, Pure-Play Retail Net Lease REIT
Leading, Pure-Play Retail Net Lease REIT Diversified portfolio of high-quality retail properties occupied by superior credit tenants under long-term leases Retail % of Total Portfolio Retail Investment Grade Tenants 100.0% 50.0% 100% 100% 85% 45% 75.0% 80% 40.0% 37% 62% 50.0% 54% 30.0% 31% Undisclos
Slide 17: Creating Value Through Retailer Relationships
Creating Value Through Retailer Relationships Aurora, Colorado ▪ $9 million multi-tenant transaction acquired at a 9.1% year-one cap rate ▪ Located in one of the fastest growing suburbs in the Denver MSA ▪ Negotiated five-year early lease extension ▪ Five-mile population density of 130K 16
Slide 18: High-Quality Retail Real Estate = Stronger Residual Values
High-Quality Retail Real Estate = Stronger Residual Values Corporate Guarantee from Lowe’s Companies, Inc. (S&P: A-) Sunnyvale, California Boynton Beach, Florida ▪ Located in Silicon Valley ▪ Located in Southeast Florida ▪ Acquired as part of the $79.5 million portfolio ▪ Former site of regional sho
Slide 19: High-Quality Retail Real Estate = Stronger Residual Values
High-Quality Retail Real Estate = Stronger Residual Values Charlotte, North Carolina ▪ Acquisition of ground floor retail condominium ▪ Located within downtown Charlotte, near upper income condominium and multi- family developments ▪ Small format urban grocery component of a larger mixed-use develop
Slide 20: Development and PCS Projects
Development and PCS Projects Completed two projects totaling $9.2 million in the first quarter of 2017 Recently Completed Wawa Chick-fil-A Starbucks Orlando, FL Frankfort, KY North Lakeland, FL Burger King Texas Roadhouse Camping World Heber, UT Mount Pleasant, MI Tyler, TX Under Construction Campin
Slide 21: Financial Overview
Financial Overview
Slide 22: Capital Structure, Financial Ratios
Capital Structure, Financial Ratios Debt Maturities(1) $ in millions $250.0 (2) $100.0 $100.0 $80.0 $68.9 $60.0 $60.0 $50.0 $50.0 $40.0 $20.0 $25.0 $19.9 $7.8 $7.8 $0.0 $0.0 2016 $0.0 2017 2018 2019 2020 $0.0 2021 $0.0 2022 2023 2024 2025 2026 2027 2028 Revolving Credit Facility Mortgage/Unsecured D
Slide 23: Investment Summary Highlights
Investment Summary Highlights ➢ Highest-quality retail real estate ➢ Most secure cash flows ➢ Strongest balance sheet ➢ Proven track record of execution ➢ Consistent dividend growth ➢ Robust growth trajectory 22
Slide 24: Agree Realty Corporation – Develop | Acquire | Partner
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER ADC NYSE