Agree Realty Corporation · NYSE:ADC

Agree Realty — Q1 2025 Earnings Presentation

43 slides from Agree Realty's earnings presentation, Apr 23, 2025

Slide 1: Agree Realty Retail April 2025
AGREE REALTY RETAIL APRIL 2025
Slide 2: Agree Realty Overview (NYSE: ADC)
Agree Realty Overview (NYSE: ADC) NET LEASE REIT FOCUSED ON THE ACQUISITION & DEVELOPMENT OF HIGH-QUALITY RETAIL PROPERTIES Founded in Public on $11.9 billion(1) 2,422 retail Investment OUR 1971 by the NYSE retail net properties grade issuer COMPANY Executive since 1994 lease REIT totaling ratings o
Slide 4: Recent Highlights
Recent Highlights Increased 2025 investment guidance to $1.3 billion to $1.5 billion of high- Fortress balance sheet with liquidity quality retail net lease assets(1) of approximately $1.9 billion(4) Raised lower end of 2025 AFFO per share guidance to $4.27 to $4.30, representing Over $917 million o
Slide 5: Positioned for 2025
Positioned for 2025 A Pre-equitized with A Total liquidity of A $325 million of A No material debt >$900 million of approximately forward starting maturities until outstanding $1.9 billion swaps at ~3.9%(1) 2028 forward equity Total Liquidity $11M “With a strong pipeline and a fortress balance s
Slide 6: ADC's Retail Thought Leadership
ADC’s Retail Thought Leadership  Launched acquisition platform in 2010 with a focus on e-commerce resistance  Launched RETHINK RETAIL campaign to challenge misperceptions about the future of brick & mortar  Published proprietary ADC White Papers highlighting omnichannel retail trends  Avoided or
Slide 7: Omni-Channel Vision
Omni-Channel Vision IDENTIFIED CRITICAL ROLE OF NET LEASE IN DRIVING OMNI-CHANNEL STRATEGY “So, I think as retailers look forward in “COVID reaffirmed our belief that, 2016 and beyond and they're one, we're heading toward a world looking in the omni-channel world, where all retailers are omni- how i
Slide 8: Investment Foresight
Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION Q3 2018 “We have a fantastic relationship Q1 2017 with their real estate team. October 2020 “…it's a great company, The business is really thriving. Rated BBB by S&P and it's got a fantastic balance They have
Slide 9: Investment Foresight
Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION Q1 2022 “…identifying early on a retailer that we thought Q4 2018 was in a tremendous Q1 2018 “…We think they're the position to access a “Now you see Gerber premier auto collision fragmented space and Collisi
Slide 10: Investment Foresight
Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION Q1 2022 “Our decision to invest in Sunbelt Rentals was recently reinforced by their upgraded Q4 2019 BBB rating by Fitch.” “… the only investment-grade operator in the country. If you look at the equipment own
Slide 11: Investment Foresight
Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION Q4 2023 Q4 2017 “the off-price retailers, it's all the TJX “the TJX Companies …is concepts…These operators have the now our #5 tenant. We desire to continue to expand across have a strong bias towards all of t
Slide 12: Investment Foresight
Investment Foresight A DEEPER DIVE ON ADC’S THOUGHT LEADERSHIP & TRACK RECORD OF EXECUTION 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 30% 27% 22% 17% 12% 8% 5% 3% 2% 1% 1% 1% 1% 1% Q1 2019 Q1 2021 2023 2024 2025 “I think the “With this Downgraded Downgraded Walgreens Q2 20
Slide 13: Capital Markets Leader
Capital Markets Leader INNOVATIVE BALANCE SHEET MANAGEMENT A ADC was the first net A Since 2018, $35B A Lowest cost A Closed market- lease REIT to issue of forward equity preferred equity leading 5.5-year term forward equity in has been raised issuance in net loan at a fixed rate March 2018 in t
Slide 14: Disciplined Capital Allocator
Disciplined Capital Allocator CONSERVATIVE WACC CALCULATION DRIVES CONSISTENT & SUPERIOR EARNINGS GROWTH NET LEASE INVESTMENT SPREADS  Cost of equity is based on forward 150+ bps – Pedal to the Metal! 12-month consensus AFFO per share 100 - 150 bps – Investments Generate Healthy Accretion  Cost of
Slide 15: The Country's Leading Retail Portfolio
The Country’s Leading Retail Portfolio
Slide 16: Agree Realty Snapshot
Agree Realty Snapshot Company Overview Top Tenants ($ in millions) ANNUALIZED Share Price(1) $79.05 TENANT / CONCEPT BASE RENT % OF TOTAL $38.5 5.9% Equity Market Capitalization(1)(2) $8.7 Billion 31.8 4.9% Property Count 2,422 28.4 4.4% 21.7 3.3% Net Debt to EBITDA 4.9x / 3.4x(3) 20.5 3.2% Investme
Slide 17: Strong Investment Grade Portfolio
Strong Investment Grade Portfolio BEST-IN-CLASS RETAILERS WITH CONSERVATIVE BALANCE SHEETS 68% INVESTMENT GRADE(1) Retail Credit Type (%ABR) 16% 16% SUB-INVESTMENT GRADE NOT RATED As of March 31, 2025. Any differences are a result of rounding. (1) Based on ABR derived from tenants, or parent entitie
Slide 18: National and Super-Regional Retailers
National and Super-Regional Retailers INDUSTRY-LEADERS OPERATING IN E-COMMERCE RESISTANT SECTORS 88% NATIONAL Retail Tenant Type (%ABR) 1% 11% FRANCHISE SUPER-REGIONAL As of March 31, 2025. Any differences are a result of rounding. © 2025 AGREE REALTY CORPORATION. ALL RIGHTS RESERVED. CONFIDENTIAL.
Slide 19: Ground Lease Portfolio Breakdown
Ground Lease Portfolio Breakdown FEE SIMPLE OWNERSHIP + SIGNIFICANT TENANT INVESTMENT Ground Lease Portfolio Overview Top Ground Lease Tenants (% ABR) 10.6% 9.5 13% 231 of total years weighted- Leases portfolio average ABR lease term 12% 12% 7% 88% 6% INVESTMENT GRADE(1) 5% Ground Lease Credit Overv
Slide 20: Ground Lease Value Creation
Ground Lease Value Creation FIRST EXPIRATION HIGHLIGHTS EMBEDDED VALUE WITH 159% RECAPTURE RATE Chase Bank - Stockbridge, GA Prior Lease New Lease Rent Per Square Foot $29.26 Rent Per Square Foot $46.54 Remaining Lease Term(1) 0.1 years New Lease Term(2) 15 Years Rental Increases None Remaining Rent
Slide 21: Disciplined Investment Strategy & Active Portfolio Management
Disciplined Investment Strategy & Active Portfolio Management
Slide 22: Our Investment Strategy
Our Investment Strategy Agree leverages its three distinct investment platforms to target industry-leading THREE-PRONGED retailers in e-commerce and GROWTH STRATEGY recession resistant sectors COMPREHENSIVE REAL ESTATE SOLUTIONS FOR LEADING RETAILERS DEVELOPER FUNDING ACQUISITIONS DEVELOPMENT PLATFO
Slide 23: What Has ADC Been Investing In?
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 investment criteria, with a focus on four core principles: OMNI-CHANNEL RECESSIO
Slide 24: Large & Fragmented Opportunity Set
Large & Fragmented Opportunity Set TOP-DOWN FOCUS ON LEADING RETAILERS IN THE U.S. PAIRED WITH A BOTTOMS-UP REAL ESTATE ANALYSIS ADC reviewed over $92 billion of opportunities since 2018 MARKET RENTS • Rents ≤ market • Fungibility of building COMPETITION • Limited competition • Strong market presenc
Slide 25: Sandbox Offers Runway for Growth
Sandbox Offers Runway for Growth 169,000+ NET LEASE OPPORTUNITIES AND GROWING WITH BEST-IN-CLASS RETAILERS 11,000+ 9,000+ 5,500+ 27,500+ 37,000+ Grocery Home Tire & Auto Convenience Dollar Stores Improvement Stores Service Stores Stores Stores 6,600+ 23,600+ 7,000+ 2,500+ 1,300+ Off-Price Auto Parts
Slide 26: Track Record of Execution
Track Record of Execution ADC HAS INVESTED NEARLY $10 BILLION IN HIGH-QUALITY RETAIL NET LEASE PROPERTIES SINCE 2010 Investment Activity ($ in millions, unless otherwise noted) $ 2,000 1,800 1,600 $61 $1.6B $27 1,400 $27 $1.4B $1.3B 1,200 $55 $1.2B 1,000 $84 800 $19 $867 $22 $1.3B - $1.5B $701 600 $
Slide 27: Active Portfolio Management
Active Portfolio Management FOCUSED ON NON-CORE ASSET SALES & CAPITAL RECYCLING Total Dispositions 2010-2025: $560 million MICHIGAN (3) BELTON, MO AURORA, CO FL (3) UPLAND, CA MAPLEWOOD, MN JACKSONVILLE BEACH, FL SC (1) & MN (1) OLATHE, KS APOPKA, FL FLOWOOD, MS KIRKLAND, WA JACKSONVILLE, FL BROWNSB
Slide 28: Fortified Balance Sheet
Fortified Balance Sheet
Slide 29: Leading With Our Fortress Balance Sheet
Leading With Our Fortress Balance Sheet NO MATERIAL DEBT MATURITIES UNTIL 2028 $600 Debt Maturities ($ in millions) $500 $450 $475 $450 $400 $410 $300 $300 $300 $200 $100 $125 $50 $1 $50 $42 $0 $0 (1) 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 UNSECURED SECURED CAPITALIZATION STATISTICS CREDI
Slide 30: Capital Markets Track Record
Capital Markets Track Record STRONG CAPITAL MARKETS EXECUTION HAS PROVIDED AMPLE LIQUIDITY; $10 BILLION OF ACTIVITY SINCE 2010 Capital Markets Activity ($ in millions) $2,000 $175 $1,750 $42 $1,500 $1,250 $1,095 $1,103 $1,000 $1,322 $988 $750 $371 $500 $531 $433 $650 $250 $450 $350 $300 $350 $225 $1
Slide 31: Low Leverage = Strong Positioning
Low Leverage = Strong Positioning ADC HAS BEEN AT OR BELOW 4.5X PROFORMA NET DEBT TO RECURRING EBITDA SINCE 2018 5.0x 5.0x 4.9x 4.9x 4.9x 4.9x 4.7x 4.8x 4.5x 4.5x 4.5x 4.5x 4.4x 4.3x 4.3x 4.3x 4.1x 4.1x 4.0x 3.8x 3.7x 3.6x 3.4x 3.3x 3.1x 3.1x Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q
Slide 32: Growing, Well-Covered Monthly Dividend
Growing, Well-Covered Monthly Dividend 158 CONSECUTIVE COMMON DIVIDENDS PAID; AVERAGE AFFO PAYOUT RATIO OF 75% OVER PAST 10 YEARS $3.10 $2.90 Annual Dividends Declared Per Share $2.70 $2.50 $2.30 $2.10 $1.90 $1.70 $1.50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 As of April 18, 2025. Ref
Slide 33: Agree Realty's ESG Practices
Agree Realty’s ESG Practices DEDICATED TO SUSTAINABILITY AND GOOD CORPORATE CITIZENSHIP ENVIRONMENTAL SOCIAL CORPORATE PRACTICES RESPONSIBILITY GOVERNANCE Focus on industry leading, The Agree Wellness program ADC’s Board has 10 directors, national & super-regional focuses on Health Wellness & eight
Slide 34: Investment Summary Highlights
Investment Summary Highlights trajectory growth Robust Well-covered FORTIFIED BALANCE SHEET &dividend consistent HIGHEST-QUALITY RETAIL REAL ESTATE MULTI-YEAR INVESTMENT GRADE TRACK RECORD OF EXECUTION ISSUER RATINGS © 2025 AGREE REALTY CORPORATION. ALL RIGHTS RESERVED. CONFIDENTIAL. 33
Slide 36: Earnings Guidance
Earnings Guidance The table below provides estimates for significant components of our 2025 earnings guidance. In addition, the AFFO per share guidance range includes an estimate for the dilutive impact of the Company’s outstanding forward equity calculated in accordance with the treasury stock meth
Slide 37: Debt Summary
Debt Summary Total Debt Outstanding All-in Interest Rate Maturity as of March 31, 2025 Senior Unsecured Revolving Credit Facility (1) Revolving Credit Facility 5.19% August 2028 $322,000 Total Credit Facility 5.19% $322,000 Unsecured Term Loan (2) 2029 Unsecured Term Loan 4.52% January 2029 $350,000
Slide 38: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Mortgage notes payable, net $32,249 $71,824 $71,721 $47,971 $47,842 $47,701 $42,952 $42,811 $42,666 $42,518 $42,366 $42,210 $42,050 Unsecured term loa
Slide 39: Reconciliation of Net Income to FFO, Core FFO and AFFO
Reconciliation of Net Income to FFO, Core FFO and AFFO 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net Income $18,913 $39,762 $45,797 $58,790 $58,798 $80,763 $91,972 $122,876 $153,035 $170,547 $189,832 Series A Preferred Stock Dividends 0 0 0 0 0 0 0 (2,148) (7,437) (7,437) (7,437) Net In
Slide 40: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends such forwar
Slide 41: Non-GAAP Financial Measures
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 to the most directly comparable GAAP measure is included in the following pages.
Slide 42: Non-GAAP Financial Measures
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”), Core Funds From Operations (“Core FFO”) and Adjusted Funds From Operations (“

Agree Realty — Q1 2025 Earnings Presentation on 6ix

Agree Realty — Q1 2025 Earnings Presentation

Slide 1: Agree Realty Retail April 2025

Slide 2: Agree Realty Overview (NYSE: ADC)

Slide 3: consistency

Slide 4: Recent Highlights

Slide 5: Positioned for 2025

Slide 6: ADC's Retail Thought Leadership

Slide 7: Omni-Channel Vision

Slide 8: Investment Foresight

Slide 9: Investment Foresight

Slide 10: Investment Foresight

Slide 11: Investment Foresight

Slide 12: Investment Foresight

Slide 13: Capital Markets Leader

Slide 14: Disciplined Capital Allocator

Slide 15: The Country's Leading Retail Portfolio

Slide 16: Agree Realty Snapshot

Slide 17: Strong Investment Grade Portfolio

Slide 18: National and Super-Regional Retailers

Slide 19: Ground Lease Portfolio Breakdown

Slide 20: Ground Lease Value Creation

Slide 21: Disciplined Investment Strategy & Active Portfolio Management

Slide 22: Our Investment Strategy

Slide 23: What Has ADC Been Investing In?

Slide 24: Large & Fragmented Opportunity Set

Slide 25: Sandbox Offers Runway for Growth

Slide 26: Track Record of Execution

Slide 27: Active Portfolio Management

Slide 28: Fortified Balance Sheet

Slide 29: Leading With Our Fortress Balance Sheet

Slide 30: Capital Markets Track Record

Slide 31: Low Leverage = Strong Positioning

Slide 32: Growing, Well-Covered Monthly Dividend

Slide 33: Agree Realty's ESG Practices

Slide 34: Investment Summary Highlights

Slide 35: Appendix

Slide 36: Earnings Guidance

Slide 37: Debt Summary

Slide 38: Reconciliation of Non-GAAP Financial Measures

Slide 39: Reconciliation of Net Income to FFO, Core FFO and AFFO

Slide 40: Forward-Looking Statements

Slide 41: Non-GAAP Financial Measures

Slide 42: Non-GAAP Financial Measures

Slide 43: Contact