Agree Realty Corporation · NYSE:ADC

Agree Realty — 8th Annual North American Real Estate Conference 2013

19 slides from Agree Realty's conference presentation, September 2013

  1. Slide 1: Develop | Acquire | Partner

    DEVELOP | ACQUIRE | PARTNER 8th Annual North American Real Estate Conference September 16 – 17, 2013 | Chicago, IL

  2. Slide 2: Market Statistics

    MARKET STATISTICS Focused on the acquisition and development of single tenant properties leased to industry leading retail tenants Ticker: NYSE: ADC (1) Recent Price: $27.94 (1) Shares and OP Units Outstanding: 13,585,000 Current Annualized Dividend: $1.64 (1) Dividend Yield: 5.9% (1) Current Market

  3. Slide 3: Investment Highlights

    INVESTMENT HIGHLIGHTS  Disciplined investment approach  Industry leading team  Strategic retailer relationships  High quality property portfolio  Proven external growth strategies  Strong, growth-oriented balance sheet  Attractive, sustainable dividend yield 2

  4. Slide 4: Strategic Growth Through Disciplined Investments

    STRATEGIC GROWTH THROUGH DISCIPLINED INVESTMENTS Single Tenant Net Lease Development  Preferred developer status with national tenants  Long-term net leases with first in class tenants  Pre-leasing minimizes development risk  Superior return on development cost Wawa – St. Petersburg, FL Single T

  5. Slide 5: 2012-2013 Commenced or Completed Projects

    2012 - 2013 COMMENCED OR COMPLETED PROJECTS Wawa – St. Petersburg, FL Walgreens – Ann Arbor, MI WALGREENS – RANCHO CORDOVA, CA WAWA - KISSIMMEE, FL  SWQ of 34th St. & 38th Ave.  Located in the heart of University of Michigan’s Central Campus  Pre-leased under a 20-year ground lease  Redevelopmen

  6. Slide 6: Since Launch of Acquisition Platform in April 2010

    SINCE LAUNCH OF ACQUISITION PLATFORM IN APRIL 2010 ACQUISITIONS 58 STATES 27 RETAIL SECTORS 17 AGGREGATE PURCHASE PRICE $216 million 2013 ACQUISITION SUMMARY - YTD Aggregate Purchase Price: $58.9 million Average Purchase Price: $4.2 million Average Base Term: 9.5 Years Retail Sectors: Auto Parts, Gr

  7. Slide 7: Disposition of Non-Core Assets

    DISPOSITION OF NON-CORE ASSETS April Borders Santa Barbara, CA Plymouth Commons- Plymouth, WI January Kmart/Roundy’s (2) Borders October Tulsa, OK Walgreens Former Borders Shawano Plaza- Shawano, WI Walgreens Ocala, FL Omaha, NE Kmart/JCP/Roundy’s Ypsilanti, MI Charlevoix Commons November Former Bor

  8. Slide 8: Evolution of Major Tenant Exposure

    EVOLUTION OF MAJOR TENANT EXPOSURE % of Total Company Annualized Base Rent 2009 2010 2011 2012 2013 * As of June 30, 2013. 7

  9. Slide 9: Strong Tenant Base

    STRONG TENANT BASE 89% National Tenants 63% Investment Grade (% of annualized base rents) As of September 12, 2013 *Includes investment grade ratings as determined by S&P, Moody’s and Fitch, or NAIC 8

  10. Slide 10: National Portfolio Anchored by Strategic Retailer Relationships

    NATIONAL PORTFOLIO ANCHORED BY STRATEGIC RETAILER RELATIONSHIPS 126 Properties | 33 states | 3.6 Million Square Feet 9

  11. Slide 11: Sector Diversification

    SECTOR DIVERSIFICATION 18 17 Sectors 16 Apparel Home Improvement 14 C-Stores 12 Specialty Retail # of Retail Sectors Auto Service 10 Grocery / Supermarket Sporting Goods 8 Technology & Electronics 6 Sectors Quick Service Restaurants 6 Pharmacy Home Furnishings Books 4 Dollar Stores Big Box / Discoun

  12. Slide 12: Portfolio Stability and Historical Occupancy

    PORTFOLIO STABILITY AND HISTORICAL OCCUPANCY 2013 Pro Forma Occupancy: 97% | 5-Year Average Occupancy: 98% Occupancy Rate 11

  13. Slide 13: Well Staggered Expirations Mitigate Rollover Risk

    WELL STAGGERED EXPIRATIONS MITIGATE ROLLOVER RISK Lease Expirations (Annualized base rent in millions) As of June 30, 2013 12

  14. Slide 14: A Balance Sheet to Fuel Growth

    A BALANCE SHEET TO FUEL GROWTH December 2012: - Closed on new $25 million term loan with swapped interest rate of 2.49%, - Closed on new $23.6 million 10-year CMBS loan at 3.60% - Extended maturity on $85 million credit facility to 2015 Reduced interest spread to 150 - 215 over Libor $50 million acc

  15. Slide 15: Attractive & Well Covered Dividend

    ATTRACTIVE & WELL COVERED DIVIDEND  Annualized dividend of $1.64; current dividend yield of 5.9% (based on $27.94 share price)  77 consecutive quarterly cash dividends since its IPO  FFO Payout Ratio: 80%*  Targeted FFO Payout Ratio: 75 – 85% * Based on dividend and FFO for the quarter ended Jun

  16. Slide 16: YTD 2013 – Results Driven

    YTD 2013 – RESULTS DRIVEN  Completed development of Walgreens in Rancho Cordova, California  Completed development of three Wawa convenience stores in Florida  Acquired 14 single tenant net leased assets for $59 million  Completed follow-on offering of 1,725,000 common shares for approximately $

  17. Slide 17: A Three Year Transformation

    A THREE YEAR TRANSFORMATION 2010 40.1% 2013 6.6% 73 16 6 2010 Properties States Sectors 126 33 17 2013 Properties States Sectors 16

  18. Slide 18: ADC 12.31.09 vs 9.12.13

    ADC 12.31.09 vs 9.12.13 12.31.09 9.12.13 Recent Stock Price: $23.29 $27.94 (1) Market Capitalization: $199 million $380 million(1) Total Enterprise Value: $304 million $536 million(1) (1) Debt/Enterprise Value: 34.4% 29.2% Total Revenues: $26 million $41 million (2) Number of Properties: 73 126 (1)

  19. Slide 19: Forward Looking Statement

    FORWARD LOOKING STATEMENT This presentation may include certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other sta

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