Agree Realty Corporation · NYSE:ADC
Agree Realty — REITWorld 2015
25 slides from Agree Realty's conference presentation, November 2015
Slide 1: REITWORLD 2015
DEVELOP | ACQUIRE | PARTNER REITWORLD 2015
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) Net lease growth company focused on the acquisition and development of high quality retail properties Our Company $900 million NYSE listed REIT headquartered in Bloomfield Hills, MI 264 retail properties totaling approximately 4.8 million square feet in 41
Slide 4: Recent Highlights
Recent Highlights Enhancing our portfolio and creating shareholder value Acquired 59 assets for an aggregate purchase price of $160.1 million 2015 YTD Weighted-average cap rate of 8.0% and weighted-average remaining lease term of 12.6 years Leading brands and retailers operating in e-commerce
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 275 $70.0 264 $67.2 250 $62.5 225 200 209 $55.0 $56.5 175 $47.5 150 $45.1 125 130 $40.0 $38.1 100 109 $36.4 $32.5 $3
Slide 7: Active Asset Management
Active Asset Management Focus on real estate fundamentals guides non-core asset sales and capital recycling $40-$50M Total Dispositions 2010-2015 YTD: $85.2M Projected 2015 dispositions $15.9M $12.9M $28.2M Chippewa Commons North Lakeland Plaza Columbus, OH Plymouth Commons Chippewa Falls, WI Lakela
Slide 8: Portfolio Transformation
Portfolio Transformation 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% 97.3% Shopping 40.0% Centers 29% 2.7% 20.0% 25.9% Shopping 10% T
Slide 9: Leading, Pure-Play Retail Net Lease REIT
Leading, Pure-Play Retail Net Lease REIT High quality retail properties occupied by credit tenants under long term leases Retail % of Total Portfolio Investment Grade Tenants 100.0% 55.0% 100.0% 100.0% 86.5% 52.6% 75.0% 78.8% 50.0% 62.2% 48.0% 57.1% 47.0% 50.0% 45.0% Undisclosed Undisclosed Undisclo
Slide 10: Investment Strategy
Investment Strategy
Slide 11: Unique Real Estate Investment Strategy
Unique Real Estate Investment Strategy Leverage real estate acumen and synergistic 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 lease ass
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 74% Super-Regional 13% Franchise 11% Local 2% As of July 31, 2015. 11
Slide 13: Emphasis on Tenant Real Estate Solutions
Emphasis on Tenant Real Estate Solutions Unique, dual capabilities drive value-add partnerships with retailers nationwide DEVELOPMENT SALE-LEASEBACK Spearheading retailer expansion Track record of execution as programs for over 3 decades acquirer and real estate partner • In-house expertise • Ab
Slide 14: Track Record of Execution
Track Record of Execution Since 2010, ADC has invested over $600 million in high quality retail net lease properties Investment Activity $ millions $200.0 $200.0 FY2015 guidance $175.0 $165.2 $15.0 $17.7 $160.1 $150.0 $147.5 $125.0 $102.2 $100.0 $28.4 $85.2 $75.0 $81.5 $73.3 $50.9 $50.0 $14.1 $38.6
Slide 15: Financial Overview
Financial Overview
Slide 16: Fortress Balance Sheet
Fortress Balance Sheet Investment grade credit profile provides foundation for real estate investment activities Leverage 9.0x 8.4x 7.5x 4.6x 7.3x 6.2x 6.8x 6.0x 3.9x 6.3x 3.5x 5.8x 5.6x 4.5x 5.0x 4.5x 3.0x ADC NNN O STOR SRC VER Debt / EBITDA Debt + Pfd / EBITDA Weighted Average Debt Maturity (1) W
Slide 17: 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 $160.0 $155.8 $275.0 7 $95.8 $147.4 $139.5 $250.0 $76.8 $140.0 $100.0 $100.0 6 $39.5 $225.0 $120.0 $
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 $2.38 $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 potential valuation upside Current Dividend Yield 2015E AFFO Payout Ratio 6.50% 80.0% 79.0% 79.3% 6.00% 78.0% 5.7% 78.0% 5.50% 5.6% 5.4% 77.0% 76.8% 5.00% 76.0% 4.50% 75.0% Retail All ADC Retail All ADC Net Lease (1) Net Lease Net Leas
Slide 20: Summary Investment Highlights
Summary Investment 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 264 $41.8 $40.0 Gross Leasable Area 4.8mm SF Occupancy 99.5% $30.0 States 41 $20.0 Tenants 120 Retail Sectors 23+ $10.0 $3.7 $4.4 $4.3 $1.8 $2.7 $2.7 $2.7 $1.8 Investment Grade % (1) 52.6% $0.0 $0.4 $0.0 Weighted-Average Lease Term
Slide 23: Capitalization & Financial Ratios
Capitalization & Financial Ratios Capitalization and Leverage Debt Maturities ($ thousands) $ millions Debt Principal Amt. $75.0 Mortgage Payable $ 102,296 $65.0 Unsecured Term Loans 100,000 Senior Term Loans 100,000 $60.0 $52.0 Credit Facility 27,000 $50.0 $50.0 $45.0 Total Debt $ 329,296 $45.0 Cas
Slide 24: 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 25: 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