Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (November 2017)
26 slides from Agree Realty's investor presentation, Nov 10, 2017
Slide 1: Develop | Acquire | Partner
DEVELOP | ACQUIRE | PARTNER NOVEMBER 2017
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 $1.9 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC 425 retail propertie
Slide 4: Recent Highlights
Recent Highlights Consistent execution has led to enhanced shareholder value Paid a quarterly dividend of $0.505 per share, a 5.2% year-over-year increase Increased Q3 2017 FFO by 23.2% to $20.0 million, and Q3 2017 AFFO by 26.2% to $19.9 million Commenced two new development and PCS projects totali
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 $1.3 billion in high-quality retail net lease properties Investment Activity $ in millions $350.0 $38.0 $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 $38.6 $0.0 2011 2012 2013 2014 2015
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 425 $115.0 297 425 $112.8 366 350 $99.0 $94.3 275 $83.0 279 $72.4 200 209 $67.0 $56.5 125 $51.0 130 109 $45.1 $38
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: $132M $30M - $50M Oscoda, MI Orange Park, FL $12.9M $29.0M $29.7M Chippewa Commons North Lakeland Plaza Chippewa Falls, WI Lakeland, FL Ocala, FL Jacksonv
Slide 11: Portfolio Summary
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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 Current Pharmacy 29.7% Pharmacy 13.0% Top QSRs 7.5% Grocery 8.1% Sectors Apparel 6.1% Health & Fitness 6.1% 21.9% 8.1% Top Tenants 4.4% 3.7% 4.4% 3.7% # of 209 properties 423 properties Properties Enterprise $0.8 billion $1.9 billion Value As of November 7, 2017
Slide 14: Portfolio Snapshot
Portfolio Snapshot Tenants Lease Expirations $ in millions Annualized 58% 60% Tenant / Concept Base Rent(1) % of Total $9.2 8.1% 50% 40% 4.2 3.7% 30% 4.2 3.7% 20% 4.2 3.7% 10% 8% 5% 6% 6% 6% 3.0 2.6% 4% 2% 4% 0% 1% 0% 2.7 2.3% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+ 2.6 2.3% Retail S
Slide 15: 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 75% z Super-Regional 17% Franchise 8% z z As of September 30, 2017. 14
Slide 16: 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% 45% 75.0% 84% 40.0% 80% 39% 65% 64% 50.0% 30.0% 30% Undisclose
Slide 17: Leading E-Commerce Resistant Retailers
Leading E-Commerce Resistant Retailers New Orleans, Louisiana Acquisition of top-floor urban retail condominium Subject to a new 15-year net lease with Dave & Buster’s Purchased at an 8.8% cap rate; more than 200 basis points wide of recent sale-leasebacks Located within downtown New Orleans
Slide 18: Leading E-Commerce Resistant Retailers
Leading E-Commerce Resistant Retailers Oxford, Alabama $11 million off-market transaction Acquired at a 7.4% year-one cap rate Sourced through a longstanding developer relationship Located at major freeway interchange within the dominant retail corridor 17
Slide 19: Leading E-Commerce Resistant Retailers
Leading E-Commerce Resistant Retailers Chicago, Illinois $24 million transaction Purchased at a 7.4% year-one cap rate Leading operators in Off-Price Retail and Health and Fitness sectors Weighted-average remaining lease term > 12 years Five-mile population density of 946K 18
Slide 20: Leading E-Commerce Resistant Retailers
Leading E-Commerce Resistant Retailers Corporate Guarantee from Lowe’s Companies, Inc. (S&P: A-) Sunnyvale, California Boynton Beach, Florida Located in Silicon Valley Located in Southeast Florida Acquired as part of the $79.5 million portfolio Former site of regional shoe retailer currently
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 9 projects totaling $57.3 million year-to-date 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 Ki
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 $20.0 $25.0 $19.5 $7.0 $7.4 $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