Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (March 2020)
17 slides from Agree Realty's investor presentation, Mar 24, 2020
Slide 1: Develop | Acquire | Partner March 2020
DEVELOP | ACQUIRE | PARTNER March 2020
Slide 2: Agree Realty Corporation Overview
1 Our Company ▪ $3.5 billion retail net lease REIT headquartered in Bloomfield Hills, Michigan ▪ 864 retail properties totaling approximately 15.9 million square feet in 46 states ▪ 59.4% investment grade tenants and 10.0 years average remaining lease term (1) ▪ Investment grade credit rating of Baa
Slide 3: Consistency
consistency [ kuh n - sis - tuh n - see ] noun steadfast adherence to the same principles, course, or form
Slide 4: Recent Highlights
3 x Walmart is now the Company’s largest tenant at approximately 5.6% of ABR x $192.4 million of year - to - date acquisition activity including four Walmart Supercenters x 86.7% of ABR acquired year - to - date derived from investment grade retailers (1) x 59.4% investment grade exposure; 800 basis
Slide 5: Agree Realty Today: Tenants and Sectors
4 $ in millions Annualized Base Rent % of Total Tenant / Concept $11.9 5.6% 10.0 4.9% 7.7 3.8% 7.0 3.4% 6.2 3.0% 6.1 3.0% 5.9 2.9% 5.9 2.8% 5.8 2.8% 5.5 2.7% 5.1 2.5% 4.5 2.2% 4.2 2.1% 4.2 2.1% 4.2 2.0% 3.9 1.9% 3.8 1.9% 3.7 1.8% 3.5 1.7% 3.1 1.5% 3.1 1.5% Other 88.1 43.5% Total $204.1 100.0% Agree
Slide 6: Strong Investment Grade Portfolio
5 Strong Investment Grade Portfolio National Super - Regional Franchise Best - in - class retailers with conservative balance sheets Retail Credit Type (% ABR) 23% 59% 18% Investment Grade (1) Not Rated Sub - Investment Grade z As of March 20, 2020. Any differences are a result of rounding. (1) Base
Slide 7: National and Super-Regional Retailers
6 z National and Super - Regional Retailers National Super - Regional Franchise Industry - leaders operating in e - commerce resistant sectors Retail Tenant Type (% ABR) 85% 12% 3% National Super - Regional As of March 20, 2020. Any differences are a result of rounding.
Slide 8: Ground Lease Portfolio Breakdown
7 Ground Lease Portfolio Breakdown As of December 31 , 2019. (1) Refer to footnote 1 on slide 5 for the Company’s definition of Investment Grade. (1) ▪ 64 properties ▪ 8.5% of total ADC portfolio ABR ▪ 10.7 years weighted - average lease term 89% Investment Grade (1) Sub - Investment Grade Fee simpl
Slide 9: Leading, Pure-Play Retail Net Lease REIT
8 Leading, Pure - Play Retail Net Lease REIT Investment Grade Tenants Retail % of Total Portfolio ADC data as of December 31, 2019, unless otherwise noted. Peer data from fourth quarter 2019 supplementals, SEC filings, or earnings calls. (1) Excludes Office and Industrial, as disclosed. (2) Excludes
Slide 10: Investment criteria amid retail disruption
9 ▪ 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 resistance (omni - channel critic
Slide 11: Sector exposure and attributes
10 Sector % ABR (1) Since January 1, 2018 Notable Tenants E - Commerce Resistance Recession Resistance Private Equity Sponsorship Real Estate Attributes Comments Change in Exposure (2) Health & Fitness 3.5% 231 bps High Yes High Weak Private equity sponsorship, proliferation of low cost operators +
Slide 12: Investment Activity Ramping
11 Investment Activity Ramping Investment Activity $147.5 $220.1 $295.8 $336.8 $607.0 $701.4 $ 17.7 $ 14.9 $ 38 .0 $ 62.7 $ 74.4 $ 32.4 $50.0 $150.0 $250.0 $350.0 $450.0 $550.0 $650.0 $750.0 2014 2015 2016 2017 2018 2019 Acquisitions Development & PCS (2) $ in millions ADC has invested more than $3.
Slide 13: Active Portfolio Management
12 2016 2017 2018 2019 2020 YTD Port St. John, FL Active Portfolio Management Focused on non - core asset sales & capital recycling Total Dispositions 2010 - 2019: $321 million (1) $67.2M $29.7M Rancho Cordova, CA Macomb Township, MI Ocala, FL $45.8M Michigan (3) North Dakota (3) Oscoda, MI Florida
Slide 14: Leading With Our Balance Sheet
13 Equity Market Capitalization (1) $2.4B Enterprise Value (1) $3.5B Total Debt to Enterprise Value 21.6% Fixed Charge Coverage Ratio 4.3x Net Debt / Recurring EBITDA (3) 4.5x / 3.7x (4) Moody’s Credit Rating Baa2 Leading With Our Balance Sheet Debt Maturities (1) Credit Metrics Capitalization Stati
Slide 15: Investment Summary Highlights
14 Investment Summary Highlights » Fortified balance sheet » Highest - quality retail real estate » Investment grade credit rating » Multi - year track record of execution » Well - covered & consistent dividend » Robust growth trajectory
Slide 16: Forward-Looking Statements
15 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 use of forward - looking terminology s
Slide 17: Agree Realty Corporation
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER