Agree Realty Corporation · NYSE:ADC

Agree Realty — Investor Presentation (January 2025)

43 slides from Agree Realty's investor presentation, Jan 6, 2025

1. Slide 1: Agree Realty Retail January 2025

   AGREE REALTY RETAIL JANUARY 2025

2. Slide 2: Agree Realty Overview

   1 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Agree Realty Overview (NYSE: ADC) OUR COMPANY NET LEASE REIT FOCUSED ON THE ACQUISITION & DEVELOPMENT OF HIGH - QUALITY RETAIL PROPERTIES Founded in 1971 by Executive Chairman, Richard Agree Public on the NYSE since 1994 $ 10.6

3. Slide 3: Consistency

   2 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. consistency noun steadfast adherence to the same principles, course, or form [ kuh n - sis - tuh n - see ]

4. Slide 4: Recent Highlights

   3 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. As of December 31 , 2024 , unless otherwise noted . ( 1 ) Reflects full - year 2025 investment guidance provided by the Company on January 6 , 2025 . ( 2 ) Reflects capital deployed into acquisition, development and Developer Fu

5. Slide 5: Positioned for 2025

   4 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. $0.9 B $1.1 B ~$10.0M Total Liquidity Forward Equity Outstanding Revolver Capacity Cash “ With a strong pipeline and a fortress balance sheet, we are well positioned to execute irrespective of macro - economic conditions. ” - JO

6. Slide 6: ADC's Retail Thought Leadership

   5 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. ADC’s Retail Thought Leadership x Launched acquisition platform in 2010 with a focus on e - commerce resistance x Launched RE THINK RETAIL campaign to challenge misperceptions about the future of brick & mortar x Published propr

7. Slide 7: Omni-Channel Vision

   6 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Omni - Channel Vision IDENTIFIED CRITICAL ROLE OF NET LEASE IN DRIVING OMNI - CHANNEL STRATEGY “The strongest and most resilient retailers in today’s omni - channel world have embraced a comprehensive approach that blurs the his

8. Slide 8: Investment Foresight: Tractor Supply

   7 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. October 2020 Rated BBB by S&P Rated Baa1 by Moody’s Q 2 2016 “While neither Tractor Supply Company nor Hobby Lobby maintains a public credit rating, both possess investment - grade quality financials with very strong balance she

9. Slide 9: Investment Foresight: Gerber Collision

   8 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION Q3 2017 Acquired first Gerber Collision Q4 2018 “…We think they're the premier auto collision operator in the United States… We'll contin

10. Slide 10: Investment Foresight: Sunbelt Rentals

    9 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION Leveraged all three external growth platforms to make Sunbelt Rentals our 15 th largest tenant today with over 50 locations. As of Septem

11. Slide 11: Investment Foresight: TJX

    10 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION Since 2012, ADC has acquired or developed over 50 TJX locations, and TJX is now our 5 th largest tenant. As of September 30, 2024. Expos

12. Slide 12: Investment Foresight: Walgreens and CVS

    11 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 1% 1% 1% 1% 2% 3% 5% 8% 12% 17% 22% 27% 30% Q2 2017 “our Walgreens conc

13. Slide 13: Capital Markets Leader

    12 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Capital Markets Leader INNOVATIVE BALANCE SHEET MANAGEMENT “ We view the forward equity offering as a prudent way to further fortify our balance sheet and lock in an accretive cost of capital while mitigating external risks and

14. Slide 14: Disciplined Capital Allocator

    13 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Disciplined Capital Allocator CONSERVATIVE WACC CALCULATION DRIVES CONSISTENT & SUPERIOR EARNINGS GROWTH ADC WACC CALCULATION COST FORM OF CAPITAL WEIGHTING 6.0% Equity (1) 75% 5.2% Long - Term Debt (2) 25% 5.8% WACC PEER WACC

15. Slide 15: The Country's Leading Retail Portfolio

    The Country’s Leading Retail Portfolio

16. Slide 16: Agree Realty Snapshot

    15 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. % OF TOTAL ​ ANNUALIZED ​ BASE RENT ​ TENANT / CONCEPT ​ 6.3% ​ $37.7 ​ ​ 4.7% ​ 28.2 ​ ​ 4.6% ​ 27.6 ​ ​ 3.4% ​ 20.4 ​ ​ 3.2% ​ 19.1 ​ ​ 3.2% ​ 18.8 ​ ​ 3.1% ​ 18.2 ​ ​ 3.0% ​ 17.9 ​ ​ 2.9% ​ 17.1 ​ ​ 2.8% ​ 17.0 ​ ​ 2.8% ​ 16

17. Slide 17: Strong Investment Grade Portfolio

    16 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. BEST - IN - CLASS RETAILERS WITH CONSERVATIVE BALANCE SHEETS Strong Investment Grade Portfolio 16% SUB - INVESTMENT GRADE 16% NOT RATED 68% INVESTMENT GRADE (1) As of December 31, 2024. Any differences are a result of rounding.

18. Slide 18: National and Super-Regional Retailers

    17 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. INDUSTRY - LEADERS OPERATING IN E - COMMERCE RESISTANT SECTORS National and Super - Regional Retailers 1% FRANCHISE 11% SUPER - REGIONAL 88% NATIONAL As of December 31, 2024. Any differences are a result of rounding. Retail Ten

19. Slide 19: Ground Lease Portfolio Breakdown

    18 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. 14% 12% 11% 7% 6% 5% 3% 3% 3% 3% As of December 31, 2024. (1) Refer to footnote 1 on slide 16 for the Company’s definition of Investment Grade. Any differences are a result of rounding. FEE SIMPLE OWNERSHIP + SIGNIFICANT TENANT

20. Slide 20: Ground Lease Value Creation

    19 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. FIRST EXPIRATION HIGHLIGHTS EMBEDDED VALUE WITH 159% RECAPTURE RATE Ground Lease Value Creation Chase Bank - Stockbridge, GA New Lease $46.54 Rent Per Square Foot 15 Years New Lease Term 10% Every 5 Years Rental Increases 3 x 5

21. Slide 21: Disciplined Investment Strategy & Active Portfolio Management

    Disciplined Investment Strategy & Active Portfolio Management

22. Slide 22: Our Investment Strategy

    21 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Engage in consistent dialogue to understand store performance and tenant sustainability Leverage relationships to identify the best risk - adjusted opportunities Our Investment Strategy Agree leverages its three distinct invest

23. Slide 23: What Has ADC Been Investing In?

    22 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. What Has ADC Been Investing In? The retail landscape continues to dynamically evolve as market forces cause disruption and change. To mitigate risk in a period of continued disruption, the Company adheres to a number of investm

24. Slide 24: Large & Fragmented Opportunity Set

    23 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. TOP - DOWN FOCUS ON LEADING RETAILERS IN THE U.S. PAIRED WITH A BOTTOMS - UP REAL ESTATE ANALYSIS Large & Fragmented Opportunity Set REAL ESTATE FUNDAMENTALS • Rents ≤ market • Fungibility of building MARKET RENTS • Limited com

25. Slide 25: Sandbox Offers Runway for Growth

    24 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. As of December 31, 2024. Store counts include both leased and owned locations and were obtained from company filings and thir d - p arty sources including CS News, CSP Daily News, CT Insider, and Progressive Grocer. Table is re

26. Slide 26: Track Record of Execution

    25 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. $607 $701 $1.3B $1.4B $1.6B $1.2B $867 $1.1B to $1.3B $22 $19 $27 $27 $61 $55 $84 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2018 2019 2020 2021 2022 2023 2024 2025 ADC HAS INVESTED OVER $9 BILLION IN HIGH - QUALITY

27. Slide 27: Active Portfolio Management

    26 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. $45.8M $67.6M $67.2M $49.4M $58.0M $45.8M $9.7M $66.4M 2017 2018 2019 2020 2021 2022 2023 2024 YTD BERLIN, NJ HOUSTON, TX PORTAGE, MI CANTON, MI FOCUSED ON NON - CORE ASSET SALES & CAPITAL RECYCLING Active Portfolio Management

28. Slide 28: Fortified Balance Sheet

    Fortified Balance Sheet

29. Slide 29: Leading With Our Fortress Balance Sheet

    28 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. $2 $42 $0 $50 $0 $50 $410 $450 $475 $125 $300 $300 $450 $0 $100 $200 $300 $400 $500 $600 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Leading With Our Fortress Balance Sheet CAPITALIZATION STATISTICS $7.6 Billion Equi

30. Slide 30: Capital Markets Track Record

    29 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. $100 $225 $125 $350 $650 $300 $350 $450 $229 $531 $433 $988 $1,095 $1,322 $371 $1,098 $42 $175 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 2017 2018 2019 2020 2021 2022 2023 2024 STRONG CAPITAL MARKETS EXECUTION HAS PR

31. Slide 31: Low Leverage = Strong Positioning

    30 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. (includes outstanding forward equity offerings) ADC HAS BEEN AT OR BELOW 4.5X PROFORMA NET DEBT TO RECURRING EBITDA SINCE 2018 Low Leverage = Strong Positioning As of September 30, 2024. Proforma Net Debt to Recurring EBITDA de

32. Slide 32: Growing, Well-Covered Monthly Dividend

    31 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. $1.50 $1.70 $1.90 $2.10 $2.30 $2.50 $2.70 $2.90 $3.10 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual Dividends Declared Per Share 154 CONSECUTIVE COMMON DIVIDENDS PAID; AVERAGE AFFO PAYOUT RATIO OF 76% OVER PAST

33. Slide 33: Agree Realty's ESG Practices

    32 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. The Agree Wellness program focuses on Health Wellness & Financial Wellness to enhance employee well - being Ongoing professional development is offered to help all team members advance their careers The Company has recently spo

34. Slide 34: Investment Summary Highlights

    33 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Investment Summary Highlights FORTIFIED BALANCE SHEET HIGHEST - QUALITY RETAIL REAL ESTATE INVESTMENT GRADE ISSUER RATINGS Robust growth trajectory MULTI - YEAR TRACK RECORD OF EXECUTION Well - covered & consistent dividend

35. Slide 35: Appendix

    34 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. APPENDIX

36. Slide 36: Earnings Guidance

    35 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Earnings Guidance Revised 2024 Guidance Prior 2024 Guidance (1) $4.12 to $4.14 $4.11 to $4.14 AFFO per share (2) 5.7% to 5.9% 5.7% to 6.0% General and administrative expense (% of adjusted revenue) (3) 1.1% to 1.4% 1.0% to 1.5%

37. Slide 37: Debt Summary

    36 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Debt Summary Total Debt Outstanding as of December 31, 2024 Maturity All - in Interest Rate Senior Unsecured Revolving Credit Facility $158,000 August 2028 5.29% Revolving Credit Facility (1) $158,000 5.29% Total Credit Facilit

38. Slide 38: Reconciliation of Non-GAAP Financial Measures

    37 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Reconciliation of Non - GAAP Financial Measures Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 $42,366 $42,518 $42,666 $42,811 $42,952 $47,701 $47,842 $47,971 $71,721 $71

39. Slide 39: Reconciliation of Non-GAAP Financial Measures (FFO and AFFO)

    38 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 $170,547 $153,035 $122,876 $91,972 $80,763 $58,798 $58,790 $45,797 $39,762 $18,913 $20,190 Net Income (7,437) (7,437) (2,148) 0 0 0 0 0 0 0 0 Series A Preferred Stock Divid

40. Slide 40: Forward-Looking Statements

    39 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended (the “Securities Act”) and Section 21 E of the Securities Exchan

41. Slide 41: Non-GAAP Financial Measures

    40 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Non - GAAP Financial Measures This presentation includes a non - GAAP financial measure, Net Debt to Recurring EBITDA, which is presented on an actual and proforma basis . A reconciliation of this non - GAAP financial measure t

42. Slide 42: Non-GAAP Financial Measures (continued)

    41 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. Non - GAAP Financial Measures This presentation also includes the non - GAAP measures of Annualized Base Rent (“ABR”), Annualized Net Income, Weighted - Average Capitalization Rate, Funds From Operations (“FFO” or “ Nareit FFO”

43. Slide 43: Contact

    42 © 20 25 AGREE REALTY CORPORATION . ALL RIGHTS RESERVED. CONFIDENTIAL. CONTACT PETER COUGHENOUR Chief Financial Officer (248) 737 - 4190 investors@agreerealty.com

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