Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (June 2018)
26 slides from Agree Realty's investor presentation, June 2018
Slide 1: DEVELOP | ACQUIRE | PARTNER
DEVELOP | ACQUIRE | PARTNER JUNE 2018
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 $2.3 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC 468 retail propertie
Slide 4: Recent Highlights
Recent Highlights Consistent execution has led to enhanced shareholder value Completed forward equity offering for anticipated proceeds of approximately $163 million Increased Q1 FFO per share by 9.3% to $0.71, and AFFO per share by 7.8% to $0.70 Invested $102.7 million in 39 high-quality reta
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 approximately $1.6 billion in high-quality retail net lease properties Investment Activity $ in millions $400.0 $62.7 $350.0 $38.0 $336.8 $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 $0.0 2012 2013
Slide 9: Accelerating Growth
Accelerating Growth Established real estate capabilities and growing market presence driving increased investment opportunities # of Properties(1) Annualized Base Rent (“ABR”) $ in millions 475 $130.0 297 468 $125.5 436 $119.2 400 $110.0 366 $94.3 325 $90.0 279 250 $70.0 $72.4 209 $56.5 175 $50.0 $4
Slide 10: Active Portfolio Management
Active Portfolio Management Our focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions 2010-2018: $182 million(1) $45.8M $20.5M(1) Atlantic Beach, FL LeMars, IA $12.9M $29.0M $29.7M Minnesota (3) Plainfield, IN Chippewa Commons North Lakeland Plaza Chi
Slide 11: Portfolio Summary
Portfolio Summary
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 75.0% Ground Leases Retail Retail 70.0% Net Lease Net Lease 60.0% 71% 99% 45.0% Shopping Centers 30.0% 29% 1% 7%
Slide 13: Portfolio Transformation
Portfolio Transformation January 2015 Current Pharmacy 29.7% Pharmacy 11.6% Top QSRs 7.5% Tire & Auto Service 7.7% Sectors Apparel 6.1% Grocery 7.7% 21.9% 7.6% Top Tenants 4.4% 3.4% 4.4% 3.4% # of 209 properties 468 properties(1) Properties Enterprise $0.8 billion $2.3 billion(1) Value As of March 3
Slide 14: Portfolio Snapshot
Portfolio Snapshot Tenants Lease Expirations $ in millions Annualized 60% Tenant / Concept Base Rent(1) % of Total 50% $9.6 7.6% 50% 4.2 3.4% 40% 4.2 3.4% 30% 4.2 3.4% 20% 10% 9% 7% 8% 4.2 3.4% 2% 3% 4% 3% 6% 6% .6% 3.3 2.6% 0% 3.1 2.5% 2.7 2.1% Retail Sectors $ in millions Annualized 2.6 2.1% Tenan
Slide 15: Portfolio Breakdown
Portfolio Breakdown Top Tenants Walmart Lease Type (% ABR) $ in millions # of % of Tenant / Concept Assets ABR(1) Total Net 26 $9.6 7.6% Lease 4 $4.2 3.4% 79% 5 $4.2 3.4% 11 $4.2 3.4% Ground 5 $4.2 3.4% Lease 10 $3.3 2.6% 21% 10 $3.1 2.5% 9 $2.7 2.1% Diversified portfolio comprised of Walmart Rose
Slide 16: Portfolio Breakdown
Portfolio Breakdown Top Tenants Lowe’s Lease Type (% ABR) $ in millions # of % of Tenant / Concept Assets ABR(1) Total 26 $9.6 7.6% 4 $4.2 3.4% Net Ground 5 $4.2 3.4% Lease Lease 11 $4.2 3.4% 54% 46% 5 $4.2 3.4% 10 $3.3 2.6% 10 $3.1 2.5% 9 $2.7 2.1% Portland, OR Diversified portfolio comprised of
Slide 17: Portfolio Breakdown
Portfolio Breakdown Top Tenants Wawa Lease Type (% ABR) $ in millions # of % of Tenant / Concept Assets ABR(1) Total 26 $9.6 7.6% 4 $4.2 3.4% Ground Master 5 $4.2 3.4% Lease Net Lease 11 $4.2 3.4% 58% 42% 5 $4.2 3.4% 10 $3.3 2.6% 10 $3.1 2.5% 9 $2.7 2.1% Geographically diverse portfolio Clifton He
Slide 18: High-Quality Retail Real Estate = Stronger Residual Values
High-Quality Retail Real Estate = Stronger Residual Values Secaucus, New Jersey $43 million multi-tenant transaction 57% of GAAP ABR from TJX Companies Five-mile daytime population density of 1.8 million More than 230,000 vehicles per day Part of a 3.5 million square foot mixed- use projec
Slide 19: 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 National 75% Super-Regional Super-Regional 19% Franchise Franchise 6% z As of March 31, 2018. 18
Slide 20: 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 Investment Grade Retail Tenants 100.0% 50.0% 100% 100% 46% 46% 75.0% 84% 40.0% 81% 64% 64% 36% 50.0% 30.0% 25.0% 20.
Slide 21: Embedded Redevelopment Opportunities
Embedded Redevelopment Opportunities Mount Pleasant, Michigan Frankfort, Kentucky Legacy shopping center located on main retail corridor Legacy shopping center located in Frankfort’s across from Central Michigan University’s campus dominant retail trade area Kmart Cash ABR: $175K gross Kmart
Slide 22: Development and PCS Projects
Development and PCS Projects 9 projects completed or on-going totaling $50.8 million Under Construction Mister Car Wash Camping World Mister Car Wash Orlando, FL Grand Rapids, MI Tavares, FL Burlington Coat Factory ALDI Nampa, ID Chickasha, OK Recently Completed Art Van Furniture Burger King Mister
Slide 23: Financial Overview
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Slide 24: Capital Structure, Credit Metrics
Capital Structure, Credit Metrics Debt Maturities $ in millions (1) $250.0 $100.0 $100.0 $100.0 $80.0 $68.7 $60.0 $60.0 $50.0 $50.0 $40.0 $40.6 $20.0 $6.1 $7.1 $0.0 $0.0 2018 2019 2020 $0.0 2021 $0.0 2022 2023 2024 2025 2026 2027 2028 2029 Revolving Credit Facility Mortgage/Unsecured Debt Capitaliza
Slide 25: Investment Summary Highlights
Investment Summary Highlights Investment grade credit rating Highest-quality retail real estate Most secure cash flows Strongest balance sheet Proven track record of execution Consistent dividend growth Robust growth trajectory 24
Slide 26: Agree Realty Corporation
AGREE REALTY CORPORATION DEVELOP | ACQUIRE| PARTNER Liste