Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (February 2018)
26 slides from Agree Realty's investor presentation, Feb 26, 2018
Slide 1: Develop | Acquire | Partner
DEVELOP | ACQUIRE | PARTNER MARCH 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 $2.1 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC 436 retail propertie
Slide 4: Recent Highlights
Recent Highlights Consistent execution has led to enhanced shareholder value Reduced Walgreens exposure from 11.6% to 7.7% year-over-year Rite Aid exposure reduced to 0.8% after Walgreens purchased two Rite Aid locations Sold 15 assets for $45.8 million in 2017 at a weighted-average cap rate of 6.9%
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 $1.4 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 Annualized Base Rent (“ABR”) $ in millions 450 $120.0 297 $119.2 436 $105.0 375 366 $94.3 $90.0 300 279 $75.0 $72.4 225 209 $60.0 $56.5 150 $45.0 $45.1 130
Slide 10: Active Portfolio Management
Active Portfolio Management Our focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions 2011-2017: $147M $45.8M Atlantic Beach, FL Minnesota (3) $12.9M $29.0M $29.7M Chippewa Commons North Lakeland Plaza Chippewa Falls, WI Lakeland, FL Ocala, FL North D
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% 98.5% 45.0% Shopping Centers 30.0% 29% 1.5%
Slide 13: Portfolio Transformation
Portfolio Transformation January 2015 December 2017 Pharmacy 29.7% Pharmacy 12.3% Top QSRs 7.5% Grocery 7.7% Sectors Apparel 6.1% Health & Fitness 5.8% 21.9% 7.7% Top Tenants 4.4% 3.5% 4.4% 3.5% # of 209 properties 436 properties Properties Enterprise $0.8 billion $2.1 billion Value As of December 3
Slide 14: Portfolio Snapshot
Portfolio Snapshot Tenants Lease Expirations $ in millions Annualized Tenant / Concept Base Rent(1) % of Total 60% 49% $9.6 7.7% 50% 4.2 3.5% 40% 30% 4.2 3.5% 20% 4.2 3.5% 10% 9% 8% 8% 5% 6% 6% 3.7 3.1% 1% 2% 3% 4% 0% 3.0 2.5% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ 2.7 2.2% Retail S
Slide 15: Portfolio Breakdown: Walmart
Portfolio Breakdown Top Tenants Walmart Lease Type (% ABR) $ in millions # of % of Tenant / Concept Assets ABR(1) Total Net 26 $9.6 7.7% Lease 4 $4.2 3.5% 79% 5 $4.2 3.5% 5 $4.2 3.5% Ground 9 $3.7 3.1% Lease 9 $3.0 2.5% 21% 9 $2.7 2.2% Diversified portfolio comprised of Walmart Supercenter, Neighb
Slide 16: Portfolio Breakdown: Lowe's
Portfolio Breakdown Top Tenants Lowe’s Lease Type (% ABR) $ in millions # of % of Tenant / Concept Assets ABR(1) Total 26 $9.6 7.7% 4 $4.2 3.5% Ground Net 5 $4.2 3.5% Lease Lease 5 $4.2 3.5% 54% 46% 9 $3.7 3.1% 9 $3.0 2.5% 9 $2.7 2.2% Portland, OR Diversified portfolio comprised of three full size
Slide 17: Portfolio Breakdown: Wawa
Portfolio Breakdown Top Tenants Wawa Lease Type (% ABR) $ in millions # of % of Tenant / Concept Assets ABR(1) Total 26 $9.6 7.7% 4 $4.2 3.5% Ground Master 5 $4.2 3.5% Lease Net Lease 5 $4.2 3.5% 58% 42% 9 $3.7 3.1% 9 $3.0 2.5% 9 $2.7 2.2% Geographically diverse portfolio comprised of six ground l
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 76% z Super-Regional 17% Franchise 7% z z As of December 31, 2017. 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 Retail Investment Grade Tenants 100.0% 50.0% 100% 100% 85% 44% 75.0% 81% 40.0% 39% 64% 64% 50.0% 30.0% 30% Undisclose
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 Completed or commenced 11 projects totaling $62.7 million in 2017 Under Construction Art Van Furniture Camping World Mister Car Wash Canton, MI Grand Rapids, MI Urbandale, IA Mister Car Wash Burger King Bernalillo, NM North Ridgeville, OH Recently Completed Burger King C
Slide 23: Financial Overview
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Slide 24: Capital Structure, Financial Ratios
Capital Structure, Financial Ratios Debt Maturities(1) $ in millions (2) $250.0 $100.0 $100.0 $100.0 $80.0 $68.8 $60.0 $60.0 $50.0 $50.0 $40.0 $40.8 $20.0 $25.0 $6.5 $7.3 $0.0 $0.0 2017 2018 2019 2020 $0.0 2021 $0.0 2022 2023 2024 2025 2026 2027 2028 2029 Revolving Credit Facility Mortgage/Unsecured
Slide 25: Investment Summary Highlights
Investment Summary Highlights 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