Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (January 2016)
25 slides from Agree Realty's investor presentation, January 2016
Slide 1: Agree Realty Corporation: Develop | Acquire | Partner
AGREE REALTY CORPORATION NYSE DEVELOP | ACQUIRE| PARTNER
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 growth company focused on the acquisition and development of high-quality retail properties Our Company $1.0 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC 279 retail properties tot
Slide 4: Recent Highlights
Recent Highlights Enhancing our portfolio and creating shareholder value through consistent execution Acquired 73 assets for an aggregate purchase price of $220 million in 2015 Weighted-average cap rate of 8.0% and weighted-average remaining lease term of 12.2 years Leading brands and retailers
Slide 5: Portfolio Summary
Portfolio Summary
Slide 6: Accelerating Growth
Accelerating Growth Established real estate capabilities and growing market presence driving increased investment opportunities # of Properties Annualized Base Rent (“ABR”) $ millions 280 $75.0 279 $72.4 240 $65.0 200 209 $55.0 $56.5 160 $45.0 $45.1 130 120 109 $38.1 $35.0 $36.4 80 87 81 $34.3 $34.0
Slide 7: Active Asset Management
Active Asset Management Focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions 2010-2015: $87.0M $15.9M $12.9M $29.0M Chippewa Commons North Lakeland Plaza Columbus, OH Chippewa Falls, WI Lakeland, FL $14.4M $8.3M Plymouth Commons Petoskey Town Center
Slide 8: Portfolio Transformation
Portfolio Transformation Disciplined strategy has led to increased portfolio diversification and improved quality of rental income Property Type (% ABR) Top 3 Tenant Concentration (% ABR) 6% Tenant 80.0% Ground Leases Retail Retail Net Lease Net Lease 70.0% 60.0% 71% 98% Shopping 40.0% Centers 29% 2
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 superior credit tenants under long term leases Retail % of Total Portfolio Investment Grade Tenants 100.0% 55.0% 100.0% 100.0% 91.7% 75.0% 79.2% 50.0% 51.4% 61.4% 50.0% 58.5% 45.0% Undisclose
Slide 10: Investment Strategy
Investment Strategy
Slide 11: Unique Real Estate Investment Strategy
Unique Real Estate Investment Strategy Leverage real estate acumen and naturally overlapping investment platforms to identify best risk-adjusted retail net lease opportunities ADC’s three investment platforms adhere to the same principles while pursuing opportunities along the full spectrum of net l
Slide 12: 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 77% z Super-Regional Franchise 13% 10% z z As of January 13, 2016. 11
Slide 13: Emphasis on Tenant Real Estate Solutions
Emphasis on Tenant Real Estate Solutions Unique, dual capabilities drive opportunistic value-add partnerships with retailers nationwide DEVELOPMENT SALE-LEASEBACK Spearheading retailer Track record of execution expansion programs for over as acquirer and real estate 3 decades partner • In-house
Slide 14: Track Record of Execution
Track Record of Execution Since 2010, ADC has invested over $677.1 million in high quality retail net lease properties Investment Activity $ millions $250.0 $15.0 $220.0 $200.0 $17.7 $150.0 $147.5 $100.0 $28.4 $81.5 $73.3 $50.0 $14.1 $36.8 $38.6 $0.0 2010 2011 2012 2013 2014 2015 Acquisitions Develo
Slide 15: Financial Overview
Financial Overview
Slide 16: Demonstrated Access to Capital
Demonstrated Access to Capital Expanding relationships and new sources of capital support portfolio growth objectives Capital Markets Activity Revolving Line of Credit $ millions $ millions # Lenders $200.0 $275.0 7 $92.5 $180.0 $250.0 $100.0 $100.0 6 $225.0 $160.0 $95.8 $200.0 5 $140.0 $76.8 $175.0
Slide 17: Capital Structure, Financial Ratios
Capital Structure, Financial Ratios Debt Maturities $ millions Weighted Average Debt Maturity: 7.1 years $75.0 $65.0 $60.0 $52.0 $50.0 $50.0 $45.0 $45.0 $30.0 $29.1 $20.9 $15.0 $8.6 $8.6 $0.0 $0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 (1) Pro Forma Financial Ratios Equity
Slide 18: Consistent Performance
Consistent Performance Management is focused on delivering consistent earnings and dividend growth FFO per Share AFFO per Share $2.40 $2.40 $2.39 $2.38 $2.30 $2.30 $2.20 $2.20 $2.22 $2.18 $2.10 $2.10 $2.13 $2.10 $2.09 $2.00 $2.04 $2.00 $1.90 $1.90 2012 2013 2014 2015E (1) 2012 2013 2014 2015E (1) Di
Slide 19: Attractive Relative Value
Attractive Relative Value ADC offers a well covered dividend and valuation opportunity Current Dividend Yield 2015E AFFO Payout Ratio 7.25% 85.0% 6.75% 7.0% 84.0% 83.0% 6.25% 81.0% 5.75% 5.7% 79.0% 5.25% 79.2% 78.8% 77.0% 4.75% 4.6% 4.25% 75.0% (1) (1) NNN · O · STOR All ADC NNN · O · STOR All ADC N
Slide 20: Investment Summary Highlights
Investment Summary Highlights Pure-play retail net lease REIT Unique real estate investment strategy Proven external growth platforms Fortress balance sheet Consistent earnings and dividend growth Attractive relative valuation 19
Slide 21: Appendix
Appendix 20
Slide 22: Portfolio Snapshot
Portfolio Snapshot Overview Lease Expirations $ millions Properties 279 $40.4 $40.0 Gross Leasable Area 5.2M SF Occupancy 99.5% $30.0 States 41 $20.0 Tenants 120 Retail Sectors 25+ $10.0 $6.3 $5.2 $4.3 $4.2 $3.3 $1.7 $2.6 $2.7 Investment Grade % (1) 51.4% $1.4 $0.3 $0.0 Weighted-Average Lease Term (
Slide 23: Representative Acquisitions
Representative Acquisitions Single Tenant Net Lease IHOP KeyBank H-E-B AutoZone Portfolio (14) Elyria, OH Elyria, OH Brenham, TX 6 states Multi-Tenant Net Lease Bed Bath & Beyond / Academy Sports + Outdoors / Michaels / PetSmart Michaels / Dollar Tree / PetSense Old Navy / Dress Barn Jo-Ann Fabrics
Slide 24: Recent Development and JVCS Projects
Recent Development and JVCS Projects Cash & Carry Smart Foodservice Hobby Lobby Wawa Salem, OR Springfield, OH Orlando, FL T.J. Maxx / Ross Dress For Less / Petco New Lenox, IL Cash & Carry Smart Foodservice Buffalo Wild Wings McDonald’s Wawa Burlington, WA St. Augustine, FL East Palatka, FL St. Pet
Slide 25: Develop | Acquire | Partner
AGREE REALTY CORPORATION DEVELOP | ACQUIRE| PARTNER