Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (June 2017)
25 slides from Agree Realty's investor presentation, Jun 14, 2017
Slide 1: Develop | Acquire | Partner
DEVELOP | ACQUIRE | PARTNER JUNE 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 ▪ $1.8 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC ▪ 399 retail propertie
Slide 4: Recent Highlights
Recent Highlights Consistent execution has led to enhanced shareholder value Increased Q1 2017 FFO per share by 6.3% to $0.65, and Q1 2017 AFFO per share by 5.9% to $0.65 Declared a quarterly dividend of $0.505 per share, a 5.2% year-over-year increase Increased the low end of 2017 disposition guida
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 more than $1 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 2016
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 400 $105.0 297 399 $103.5 366 350 $95.0 $94.3 300 $85.0 279 250 $75.0 $72.4 200 209 $65.0 150 $55.0 $56.5 130 100
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: $124M $30M - $50M $12.9M $29.0M $29.7M Chippewa Commons North Lakeland Plaza Chippewa Falls, WI Lakeland, FL Ocala, FL Petoskey Town Center Ferris Commons
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 Ground Leases 70.0% Retail Retail 70.0% Net Lease Net Lease 71% 98% 55.0% Shopping 40.0% Centers 29% 2% 7% 25.0%
Slide 13: Portfolio Transformation
Portfolio Transformation January 2015 June 2017 Pharmacy 29.7% Pharmacy 14.0% Top QSRs 7.5% Grocery 7.6% Sectors Apparel 6.1% QSRs 6.6% 21.9% 9.2% Top Tenants 4.4% 4.1% 4.4% 3.6% # of 209 properties 399 properties Properties Enterprise $0.8 billion $1.8 billion Value As of June 12, 2017. 12
Slide 14: Current Portfolio Snapshot
Current Portfolio Snapshot Tenants Lease Expirations $ in millions Annualized Tenant / Concept Base Rent(1) % of Total 60% 55% $9.6 9.2% 50% 4.2 4.1% 40% 3.7 3.6% 30% 3.1 3.0% 20% 2.7 2.6% 10% 5% 6% 9% 7% 5% 4% 2% 4% 0% 2% 2.6 2.5% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+ 2.5 2.4%
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 16% Franchise 9% z z As of June 12, 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% 85% 45% 75.0% 80% 40.0% 37% 62% 50.0% 54% 30.0% 31% Undisclos
Slide 17: 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 16
Slide 18: Leading E-Commerce Resistant Retailers
Leading E-Commerce Resistant Retailers Grandview Heights, Ohio ▪ Located within one of the fastest growing areas of the Columbus MSA ▪ Part of Grandview Yard mixed-use development, which includes Nationwide’s new corporate campus with over 3,500 employees ▪ Three-mile daytime population density of 4
Slide 19: Leading E-Commerce Resistant Retailers
Leading E-Commerce Resistant Retailers Cash GAAP Term Cap Rate Cap Rate Before 5.4 7.5% 7.8% Extensions years After 15.0 7.5% 7.9% Extensions years Market 15.0 (1) 5.8% Varies Six-Property Portfolio Comps years ▪ $20 million portfolio of six Tractor Supply stores located in Texas and Louisiana ▪ Neg
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: Development and PCS Projects
Development and PCS Projects Completed three projects totaling $17.3 million in year-to-date 2017 Recently Completed Wawa Chick-fil-A Starbucks Orlando, FL Frankfort, KY North Lakeland, FL Burger King Texas Roadhouse Camping World Heber, UT Mount Pleasant, MI Georgetown, KY Under Construction Orchar
Slide 22: Financial Overview
Financial Overview
Slide 23: Capital Structure, Financial Ratios
Capital Structure, Financial Ratios Debt Maturities(1) $ in millions (2) $250.0 $100.0 $100.0 $80.0 $68.9 $60.0 $60.0 $50.0 $50.0 $40.0 $20.0 $25.0 $19.9 $7.8 $7.8 $0.0 $0.0 2017 2018 2019 2020 $0.0 2021 $0.0 2022 2023 2024 2025 2026 2027 2028 Revolving Credit Facility Mortgage/Unsecured Debt Capita
Slide 24: 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 23
Slide 25: Develop | Acquire | Partner
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER ADC NYSE