Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (June 2019)
29 slides from Agree Realty's investor presentation, June 2019
Slide 1: DEVELOP | ACQUIRE | PARTNER
DEVELOP | ACQUIRE | PARTNER June 2019
Slide 2: Agree Realty Corporation Overview (NYSE: ADC)
Agree Realty Corporation Overview (NYSE: ADC) Net lease growth REIT focused on the acquisition and development of high-quality retail properties Our Company ▪ $3.4 billion(1) retail net lease REIT headquartered in Bloomfield Hills, Michigan ▪ 708 retail properties totaling approximately 12.7 million
Slide 3: predictability
predictability [ pri-dik-tuh-bil-i-tee ] noun consistent repetition of a state, course of action, behavior, or the like, making it possible to know in advance what to expect
Slide 4: ADC Celebrates 25th Anniversary
ADC Celebrates 25th Anniversary Delivered compounded average annual returns of more than 13% since its IPO in 1994 Agree Realty Corporation celebrated its 25th anniversary as a public company on April 15, 2019. 3
Slide 5: Recent Highlights
Recent Highlights Raised 2019 acquisition guidance to $450 million to $500 million ✓ 48 retail net lease properties acquired in Q1 2019 for $141 million ✓ Nine development and PCS projects completed or ongoing in Q1 2019 totaling $29.9 million ✓ Two properties sold in Q1 2019 for gross proceeds of $
Slide 6: Agree Realty 2016
Agree Realty 2016 Company Overview Tenants $ in millions Annualized Share Price $33.99 Tenant / Concept Base Rent % of Total $12.3 17.2% Equity Market 3.9 5.5% $713 Million Capitalization(1) 2.5 3.4% 2.5 3.4% Property Count 278 properties 2.0 2.8% Top 3 Tenant 1.9 2.6% 26.1% Concentration 1.8 2.6% N
Slide 7: Agree Realty 2017
Agree Realty 2017 Company Overview Tenants $ in millions Annualized Tenant / Concept Base Rent % of Total Share Price $46.05 $10.9 11.6% 4.2 4.5% Equity Market $1.2 Billion 3.1 3.3% Capitalization(1) 2.7 2.8% 2.6 2.7% Property Count 366 properties 2.5 2.7% Top 3 Tenant 2.5 2.6% 19.4% Concentration 2
Slide 8: Agree Realty 2018
Agree Realty 2018 Company Overview Tenants $ in millions Annualized Tenant / Concept Base Rent % of Total Share Price $51.44 $9.2 7.7% 4.2 3.5% Equity Market $1.6 Billion 4.2 3.5% Capitalization(1) 4.2 3.5% Property Count 436 properties 3.7 3.1% 3.0 2.5% Top 3 Tenant 14.7% 2.7 2.2% Concentration 2.6
Slide 9: Agree Realty Today
Agree Realty Today Company Overview Tenants $ in millions Annualized Share Price(1) $64.05 Tenant / Concept Base Rent % of Total $10.0 5.9% Equity Market 7.7 4.6% $2.7 Billion Capitalization(1)(3)(4) 6.1 3.6% 5.6 3.4% Property Count(2) 708 properties 5.5 3.3% Top 3 Tenant 4.5 2.7% 14.1% Concentratio
Slide 10: Total Shareholder Return
Total Shareholder Return ADC has outperformed its net lease peers on a short, medium and long-term basis Total Shareholder Return 200% 160% 167% 158% 120% 80% 65% 54% 40% 48% 47% 42% 26% 26% 16% 0% Last Twelve Months 2-Year 3-Year 4-Year 5-Year (2) ADC Peer Average(1) Per SNL as of June 30, 2019. (1
Slide 11: Real Estate Focused
Real Estate Focused
Slide 12: Creating Value Across the Real Estate Spectrum
Creating Value Across the Real Estate Spectrum ADC works with leading retailers creating risk-adjusted opportunities DEVELOP | ACQUIRE | PARTNER Development Acquisition Blend & Extend ▪ 48-year track record ▪ Third-party sellers ▪ Leverage our retailer partnerships to negotiate ▪ Preferred developer
Slide 13: Track Record of Execution
Track Record of Execution ADC has invested approximately $2.2 billion in high-quality retail net lease properties since 2010 Investment Activity $ in millions $700.0 $74.4 $600.0 $607.0 $500.0 $450 to $500 $400.0 $62.7 $38.0 $336.8 $300.0 $295.8 $14.9 $200.0 $220.1 $17.7 $29.9 $147.5 $141.0 $100.0 $
Slide 14: Accelerating Growth
Accelerating Growth Established capabilities and growing market presence driving increased investment opportunities # of Properties Annualized Base Rent (“ABR”) $ in millions 750 $175.0 700 $165.0 $168.3 708 650 $155.0 $157.6 645 $145.0 600 $135.0 550 $125.0 500 $115.0 $119.2 450 436 $105.0 400 $95.
Slide 15: High-Quality Retail Real Estate = Stronger Residual Values
High-Quality Retail Real Estate = Stronger Residual Values Independence Hall Liberty Bell Philadelphia, PA ▪ $15 million acquisition ▪ Wawa’s flagship store in Philadelphia’s Center City with bakery, merchandise, and an expanded coffee offering ▪ Investment grade credit rating (1) ▪ Street retail in
Slide 16: High-Quality Retail Real Estate = Stronger Residual Values
High-Quality Retail Real Estate = Stronger Residual Values Newport News, VA ▪ $22 million acquisition of ground lease to Costco ▪ Tenant paid for the construction of the building and improvements ▪ Remaining term of almost 15 years ▪ Rated Aa3 by Moody’s and A+ by S&P Independence Hall ▪ Strong Demo
Slide 17: Development and PCS Projects
Development and PCS Projects Nine projects completed or under construction totaling approximately $30 million Under Construction Hobby Lobby Sunbelt Rentals (3) Gerber Collision Mt. Pleasant, MI KY, OH & TX Round Lake, IL Capital Plaza (ALDI, Big Lots, Harbor Freight Tools) Frankfort, KY Recently Co
Slide 18: Active Portfolio Management
Active Portfolio Management Focused on non-core asset sales & capital recycling Total Dispositions 2010-2019: $239 million(1) $67.6M(1) Michigan (3) $45.8M Upland, CA Atlantic Beach, FL Apopka, FL Minnesota (3) $29.0M $29.7M LA (1) & PA (1) North Lakeland Plaza Lakeland, FL Ocala, FL North Dakota (3
Slide 19: The Country's Leading Retail Portfolio
The Country’s Leading Retail Portfolio
Slide 20: National and Super-Regional Retailers
National and Super-Regional Retailers Industry-leaders operating in e-commerce resistant sectors Retail Tenant Type (% ABR) National National 81.1% Super-Regional Franchise Super-Regional 14% 4.9% z As of March 31, 2019. 19
Slide 21: Strong Investment Grade Portfolio
Strong Investment Grade Portfolio Best-in-class retailers with conservative balance sheets Retail Credit Type (% ABR) National Investment Grade(1) 52.4% Sub-Investment Not Rated Grade 28.2% Super-Regional 19.4% Franchise z As of March 31, 2019. (1) Based on ABR derived from tenants, or parent entiti
Slide 22: Ground Lease Portfolio Breakdown
Ground Lease Portfolio Breakdown Fee simple ownership + significant tenant investment (1) Ground Lease Portfolio Overview Leading Tenants ▪ 56 properties ▪ 9.5% of total ADC portfolio ABR ▪ 11.2 years weighted-average lease term Credit Overview (% ABR) Top Ground Lease Tenants (% ABR) 21% Investment
Slide 23: Ground Lease Examples
Ground Lease Examples Reversionary interest in the improvements provide superior risk-adjusted returns (1) Walmart – Manassas, VA Home Depot – Farmington, NM $6.73 RPSF $4.69 RPSF Wawa – St. Petersburg, FL Lowe’s – Concord, NC $31.05 RPSF $4.18 RPSF As of May 24, 2019. 22
Slide 24: Leading, Pure-Play Retail Net Lease REIT
Leading, Pure-Play Retail Net Lease REIT Diversified portfolio of high-quality retail properties occupied by investment grade tenants under long-term leases Retail % of Total Portfolio Investment Grade Retail Tenants 100.0% 100% 100% 50.0% 52% 84% 82% 75.0% 46% 40.0% 63% 60% 50.0% 35% 30.0% 25.0% 20
Slide 25: Financial Overview
| yoy Os > Xe iS —— Financ
Slide 26: Leading With Our Balance Sheet
Leading With Our Balance Sheet Debt Maturities $ in millions (1) $325.0 $120.0 $125.0 $100.0 $100.0 $100.0 $100.0 $80.0 $40.0 $60.0 $60.0 $50.0 $50.0 $40.0 $0.0 $28.6 $20.0 $21.5 $0.0 $6.5 $0.0 $4.3 2019 (2) 2020 2021 $0.0 2022 2023 2024 2025 2026 2027 2028 2029 2030 Unsecured Revolving Credit Facil
Slide 27: Investment Summary Highlights
Investment Summary Highlights ➢ Investment grade credit rating ➢ High-quality retail real estate ➢ Fortified balance sheet ➢ Proven track record of execution ➢ Consistent & growing dividend ➢ Robust growth trajectory 26
Slide 28: Forward-Looking Statements & Non-GAAP Measures
Forward-Looking Statements & Non-GAAP Measures Forward-Looking Statements This presentation may contain certain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by u
Slide 29: DEVELOP | ACQUIRE | PARTNER
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER ADC NYSE