Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (August 2019)
27 slides from Agree Realty's investor presentation, August 2019
Slide 1: DEVELOP | ACQUIRE | PARTNER
DEVELOP | ACQUIRE | PARTNER August 2019
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 ▪ $3.6 billion(1) retail net lease REIT headquartered in Bloomfield Hills, Michigan ▪ 722 retail properties totaling approximately 13.1 million
Slide 3: Predictability
predictability [ pri-dik-tuh-bil-i-tee ] noun consistent repetition of a state, course of action, behavior, or the like, making it possible to know in advance what to expect
Slide 4: ADC Celebrates 25th Anniversary
ADC Celebrates 25th Anniversary Delivered compounded average annual returns of more than 13% since its IPO in 1994 Agree Realty Corporation celebrated its 25th anniversary as a public company on April 15, 2019. 3
Slide 5: Recent Highlights
Recent Highlights Raised 2019 acquisition guidance to $625 million to $675 million ✓ 31 retail net lease properties acquired in Q2 2019 for $176.1 million ✓ Four properties sold in Q2 2019 for gross proceeds of $17.3 million ✓ Nine development and PCS projects completed or ongoing in 1H 2019 totalin
Slide 6: Agree Realty 2016
Agree Realty 2016 Company Overview Tenants $ in millions Annualized Share Price $33.99 Tenant / Concept Base Rent % of Total $12.3 17.2% Equity Market 3.9 5.5% $713 Million Capitalization(1) 2.5 3.4% 2.5 3.4% Property Count 278 properties 2.0 2.8% Top 3 Tenant 1.9 2.6% 26.1% Concentration 1.8 2.6% N
Slide 7: Agree Realty Today
Agree Realty Today Company Overview Tenants $ in millions Annualized Tenant / Concept Base Rent % of Total Share Price(1) $67.03 $10.0 5.6% 8.0 4.4% Equity Market $2.8 Billion 7.7 4.3% Capitalization(1)(2) 6.7 3.7% Property Count 722 properties 5.6 3.2% Top 3 Tenant 5.5 3.0% 14.3% Concentration 4.2
Slide 8: Total Shareholder Return
Total Shareholder Return ADC has outperformed its net lease peers on a short, medium and long-term basis Total Shareholder Return 200% 191% 160% 157% 120% 80% 61% 48% 50% 51% 40% 42% 29% 24% 11% 0% Last Twelve Months 2-Year 3-Year 4-Year 5-Year (2) ADC Peer Average(1) Per SNL as of August 2, 2019. (
Slide 9: Real Estate Focused
Real Estate Focused
Slide 10: Creating Value Across the Real Estate Spectrum
Creating Value Across the Real Estate Spectrum ADC works with leading retailers creating risk-adjusted opportunities DEVELOP | ACQUIRE | PARTNER Development Acquisition Blend & Extend ▪ 48-year track record ▪ Third-party sellers ▪ Leverage our retailer partnerships to negotiate ▪ Preferred developer
Slide 11: Track Record of Execution
Track Record of Execution ADC has invested approximately $2.4 billion in high-quality retail net lease properties since 2010 Investment Activity $ in millions $700.0 $74.4 $600.0 $607.0 $500.0 $400.0 $62.7 $29.6 $38.0 $336.8 $300.0 $317.2 $295.8 $14.9 $200.0 $220.1 $17.7 $147.5 $100.0 $0.0 2014 2015
Slide 12: Accelerating Growth
Accelerating Growth Established capabilities and growing market presence driving increased investment opportunities # of Properties Annualized Base Rent (“ABR”) $ in millions 750 $180.0 $179.1 700 722 $170.0 650 $160.0 645 $157.6 $150.0 600 $140.0 550 $130.0 500 $120.0 450 $119.2 436 $110.0 400 $100
Slide 13: High-Quality Retail Real Estate = Stronger Residual Values
High-Quality Retail Real Estate = Stronger Residual Values Independence Hall Liberty Bell Philadelphia, PA ▪ $15 million acquisition ▪ Wawa’s flagship store in Philadelphia’s Center City with bakery, merchandise, and an expanded coffee offering ▪ Investment grade credit rating (1) ▪ Street retail in
Slide 14: High-Quality Retail Real Estate = Stronger Residual Values
High-Quality Retail Real Estate = Stronger Residual Values Newport News, VA ▪ $22 million acquisition of ground lease to Costco ▪ Tenant paid for the construction of the building and improvements ▪ Remaining term of almost 15 years ▪ Rated Aa3 by Moody’s and A+ by S&P Independence Hall ▪ Strong Demo
Slide 15: Development and PCS Projects
Development and PCS Projects Nine projects completed or under construction totaling $29.6 million Under Construction Hobby Lobby Sunbelt Rentals (2) Gerber Collision Mt. Pleasant, MI Georgetown, KY & Carrizo Springs, TX Round Lake, IL Capital Plaza (ALDI, Big Lots, Harbor Freight Tools) Frankfort, K
Slide 16: Active Portfolio Management
Active Portfolio Management Focused on non-core asset sales & capital recycling Total Dispositions 2010-2019: $257 million(1) $67.6M(1) Michigan (3) $45.8M Upland, CA Atlantic Beach, FL Apopka, FL Minnesota (3) $29.0M $29.7M LA (1) & PA (1) $27.4M North Lakeland Plaza Lakeland, FL Ocala, FL North Da
Slide 17: The Country's Leading Retail Portfolio
The Country’s Leading Retail Portfolio
Slide 18: National and Super-Regional Retailers
National and Super-Regional Retailers Industry-leaders operating in e-commerce resistant sectors Retail Tenant Type (% ABR) National National 82% Super-Regional Franchise Super-Regional 4% 14% z As of June 30, 2019. Any differences are a result of rounding. 17
Slide 19: Strong Investment Grade Portfolio
Strong Investment Grade Portfolio Best-in-class retailers with conservative balance sheets Retail Credit Type (% ABR) National Investment Grade(1) 54% Sub-Investment Not Rated Grade 28% Super-Regional 18% Franchise z As of June 30, 2019. Any differences are a result of rounding. (1) Based on ABR der
Slide 20: Ground Lease Portfolio Breakdown
Ground Lease Portfolio Breakdown Fee simple ownership + significant tenant investment (1) Ground Lease Portfolio Overview Leading Tenants ▪ 56 properties ▪ 9.2% of total ADC portfolio ABR ▪ 11.1 years weighted-average lease term Credit Overview (% ABR) Top Ground Lease Tenants (% ABR) 21% Investment
Slide 21: Ground Lease Examples
Ground Lease Examples Reversionary interest in the improvements provide superior risk-adjusted returns (1) Walmart – Manassas, VA Home Depot – Farmington, NM $6.73 RPSF $4.69 RPSF Wawa – St. Petersburg, FL Lowe’s – Concord, NC $31.05 RPSF $4.18 RPSF As of June 30, 2019. 20
Slide 22: 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% 50.0% 54% 84% 83% 49% 75.0% 40.0% 41% 63% 60% 50.0% 30.0% 25.0% 20.0% 20%
Slide 23: Financial Overview
| yoy Os > Xe iS —— Financ
Slide 24: Leading With Our Balance Sheet
Leading With Our Balance Sheet Debt Maturities $ in millions (1) $325.0 $120.0 $125.0 $100.0 $100.0 $100.0 $100.0 $80.0 $40.0 $60.0 $60.0 $50.0 $50.0 $40.0 $0.0 $28.5 $20.0 $21.5 $0.0 $0.0 $6.3 $0.0 $3.9 2019 2020 2021 $0.0 2022 2023 $0.0 2024 $0.0 2025 2026 2027 2028 2029 2030 Unsecured Revolving C
Slide 25: Investment Summary Highlights
Investment Summary Highlights ➢ Highest-quality retail real estate ➢ Fortified balance sheet ➢ Investment grade credit rating ➢ Multi-year track record of execution ➢ Consistent & growing dividend ➢ Robust growth trajectory 24
Slide 26: 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 27: Agree Realty Corporation
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER ADC NYSE