Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (May 2020)
17 slides from Agree Realty's investor presentation, May 2020
Slide 1: DEVELOP | ACQUIRE | PARTNER
DEVELOP | ACQUIRE | PARTNER May 2020
Slide 2: Agree Realty Corporation Overview (NYSE: ADC)
Agree Realty Corporation Overview (NYSE: ADC) Net lease growth REIT focused on the acquisition and development of high-quality retail properties Our Company ▪ $4.1 billion(1) retail net lease REIT headquartered in Bloomfield Hills, Michigan ▪ 868 retail properties totaling approximately 16.3 million
Slide 3: consistency
consistency [ kuh n-sis-tuh n-see ] noun steadfast adherence to the same principles, course, or form
Slide 4: Recent Highlights
Recent Highlights Raised 2020 acquisition guidance to $700 million to $800 million(1) ▪ $778.2 million of gross equity proceeds raised via the ATM program and two follow-on offerings ▪ 0.7x Proforma Net Debt / Recurring EBITDA as of the end of Q1 2020(2) ▪ Received a BBB investment grade credit rati
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) $64.82 $13.6 6.3% Equity Market 10.0 4.6% $3.5 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% 14.7% Conc
Slide 6: Strong Investment Grade Portfolio
Strong Investment Grade Portfolio Best-in-class retailers with conservative balance sheets Retail Credit Type (% ABR) National Investment Grade(1) 60% Sub-Investment Grade Not Rated Super-Regional 22% 18% Franchise z As of March 31, 2020. Any differences are a result of rounding. (1) Based on ABR de
Slide 7: National and Super-Regional Retailers
National and Super-Regional Retailers Industry-leaders operating in e-commerce resistant sectors Retail Tenant Type (% ABR) National National 85% Super-Regional Franchise 12% 3% Super-Regional z As of March 31, 2020. Any differences are a result of rounding. 6
Slide 8: Ground Lease Portfolio Breakdown
Ground Lease Portfolio Breakdown Fee simple ownership + significant tenant investment (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
Slide 9: Leading, Pure-Play Retail Net Lease REIT
Leading, Pure-Play Retail Net Lease REIT Diversified portfolio of high-quality retail properties occupied by investment grade tenants under long-term leases Retail % of Total Portfolio Investment Grade Tenants 100.0% 100% 100% 60.0% 60% 80.0% 84% 81% 50.0% 48% 60.0% 65% 40.0% 59% 39% 40.0% 30.0% 20.
Slide 10: What Has ADC Been Investing In?
What Has ADC Been Investing In? ▪ The retail landscape continues to dynamically evolve as market forces cause disruption and change ▪ To mitigate risk in a period of continued disruption, the Company adheres to a number of investment criteria, with a focus on four core principles: ▪ E-commerce resis
Slide 11: Limited Exposure to At-Risk Sectors
Limited Exposure to At-Risk Sectors 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) Private equity sponsorship, proliferation of low Health & Fitness 3.5% High Yes High W
Slide 12: Ramping Investment Activity
Ramping Investment Activity ADC has invested more than $3.1 billion (1) in high-quality retail net lease properties since 2010 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
Slide 13: Active Portfolio Management
Active Portfolio Management Focused on non-core asset sales & capital recycling Total Dispositions 2010-2020: $329 million(1) $67.6M(1) $67.2M Michigan (3) Belton, MO $45.8M Upland, CA Maplewood, MN $32.7M Atlantic Beach, FL Apopka, FL Flowood, MS Indianapolis, IN $29.7M Minnesota (3) LA (1) & PA (1
Slide 14: Leading With Our "War Chest" Balance Sheet
Leading With Our “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
Slide 15: Investment Summary Highlights
Investment Summary Highlights ➢ Fortified balance sheet ➢ Highest-quality retail real estate ➢ Investment grade credit ratings ➢ Multi-year track record of execution ➢ Well-covered & consistent dividend ➢ Robust growth trajectory 14
Slide 16: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures Forward-Looking Statements This presentation may contain certain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by u
Slide 17: Agree Realty Corporation - DEVELOP | ACQUIRE | PARTNER
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER ADC NYSE