Agree Realty Corporation · NYSE:ADC
Agree Realty — Investor Presentation (March 2016)
25 slides from Agree Realty's investor presentation, March 2016
Slide 1: DEVELOP | ACQUIRE | PARTNER
DEVELOP | ACQUIRE | PARTNER MARCH 2016
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 growth company focused on the acquisition and development of high-quality retail properties Our Company $1.1 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC 286 retail properties tot
Slide 4: Recent Highlights
Recent Highlights Enhancing our portfolio and creating shareholder value through consistent execution Increased 2015 FFO per share by 10.0% and AFFO per share by 7.5% Invested in 74 retail net lease assets for an aggregate investment of $226 million in 2015 2015 acquisition weighted-average cap ra
Slide 5: Portfolio Summary
Portfolio Summary
Slide 6: Accelerating Growth
Accelerating Growth Established real estate capabilities and growing market presence driving increased investment opportunities # of Properties Annualized Base Rent (“ABR”) $ millions $75.0 280 286 $74.1 279 $72.4 240 $65.0 200 209 $55.0 $56.5 160 $45.0 $45.1 120 130 109 $38.1 $35.0 $36.4 80 87 $34.
Slide 7: Active Portfolio Management
Active Portfolio Management Our focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions 2010-2015: $86.0M $15.9M $12.9M $29.0M Chippewa Commons North Lakeland Plaza Columbus, OH Chippewa Falls, WI Lakeland, FL $14.4M $8.3M Plymouth Commons Petoskey Town
Slide 8: Portfolio Transformation
Portfolio Transformation Disciplined strategy has led to increased portfolio diversification and improved quality of rental income Property Type (% ABR) Top 3 Tenant Concentration (% ABR) 6% Tenant 80.0% Ground Leases Retail Retail Net Lease Net Lease 70.0% 60.0% 71% 98% Shopping 40.0% Centers 29% 2
Slide 9: 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 Investment Grade Tenants 100.0% 52.0% 100.0% 100.0% 50.6% 90.5% 47.0% 75.0% 46.0% 79.0% 42.0% 42.5% 63.3% 37.0% 50.0
Slide 10: Investment Strategy
Investment Strategy
Slide 11: Unique Real Estate Investment Strategy
Unique Real Estate Investment Strategy Leverage real estate acumen and naturally overlapping investment platforms to identify best risk-adjusted retail net lease opportunities ADC’s three investment platforms adhere to the same principles while pursuing opportunities along the full spectrum of net l
Slide 12: 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 77% z Super-Regional Franchise 13% 10% z z As of March 20, 2016. 11
Slide 13: Emphasis on Tenant Real Estate Solutions
Emphasis on Tenant Real Estate Solutions Unique, dual capabilities drive opportunistic value-add partnerships with retailers nationwide DEVELOPMENT SALE-LEASEBACK Spearheading retailer Track record of execution expansion programs for over as acquirer and real estate 3 decades partner • In-house
Slide 14: Track Record of Execution
Track Record of Execution Since 2010, ADC has invested nearly $700 million in high quality retail net lease properties Investment Activity $ millions $250.0 $14.9 $220.1 $200.0 $17.7 $150.0 $147.5 $100.0 $28.4 $81.5 $73.3 $50.0 $14.1 $36.8 $38.6 $0.0 2010 2011 2012 2013 2014 2015 Acquisitions Develo
Slide 15: Financial Overview
Financial Overview
Slide 16: Demonstrated Access to Capital
Demonstrated Access to Capital Expanding relationships and new sources of capital support portfolio growth objectives Capital Markets Activity Revolving Line of Credit $ millions $ millions # Lenders $200.0 $275.0 7 $92.5 $180.0 $250.0 $100.0 $100.0 6 $225.0 $160.0 $95.8 $200.0 5 $140.0 $76.8 $175.0
Slide 17: Capital Structure, Financial Ratios
Capital Structure, Financial Ratios Debt Maturities $ millions Weighted Average Debt Maturity: 7 years $150.0 (2) $75.0 $60.0 $65.0 $45.0 $50.0 $50.0 $44.7 $30.0 $29.1 $25.0 $15.0 $20.7 $8.6 $8.5 $0.0 2015 2016 2017 (1) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Mortgage/Unsecured Debt Revolv
Slide 18: Consistent Performance
Consistent Performance Management is focused on delivering consistent earnings and dividend growth FFO per Share AFFO per Share $2.40 $2.40 $2.39 $2.38 $2.30 $2.30 $2.20 $2.20 $2.22 $2.18 $2.10 $2.10 $2.13 $2.10 $2.09 $2.00 $2.04 $2.00 $1.90 $1.90 2012 2013 2014 2015 2012 2013 2014 2015 Dividends pe
Slide 19: Attractive Relative Value
Attractive Relative Value ADC offers a well covered dividend and valuation opportunity Current Dividend Yield 2015E AFFO Payout Ratio 6.50% 80.0% 6.2% 79.2% 78.0% 5.50% 76.0% 4.8% 4.50% 74.0% 74.0% 74.1% 4.0% 3.50% 72.0% (1) NNN · O · STOR(1) All ADC NNN · O · STOR All ADC Net Lease Net Lease 2016E
Slide 20: Investment Summary Highlights
Investment Summary Highlights Pure-play retail net lease REIT Unique real estate investment strategy Proven external growth platforms Investment grade balance sheet Consistent earnings and dividend growth Attractive relative valuation 19
Slide 21: Appendix
Appendix 20
Slide 22: Portfolio Snapshot
Portfolio Snapshot Overview Lease Expirations $ millions Properties 286 $40.9 $40.0 Gross Leasable Area 5.4M SF Occupancy 99.5% $30.0 States 41 $20.0 Tenants 120 Retail Sectors 25+ $10.0 $6.5 $5.7 $4.3 $4.5 $3.8 $1.7 $2.5 $2.8 Investment Grade % (1) 50.6% $1.4 $0.0 $0.0 Weighted-Average Lease Term (
Slide 23: Representative Acquisitions
Representative Acquisitions Single Tenant Net Lease Lowes KeyBank H-E-B AutoZone Portfolio (14) Concord, NC Elyria, OH Brenham, TX 6 states Multi-Tenant Net Lease Bed Bath & Beyond / Academy Sports + Outdoors / Michaels / PetSmart Michaels / Dollar Tree / PetSense Old Navy / Dress Barn Jo-Ann Fabric
Slide 24: Recent Development and JVCS Projects
Recent Development and JVCS Projects Cash & Carry Smart Foodservice Hobby Lobby Wawa Salem, OR Springfield, OH Orlando, FL T.J. Maxx / Ross Dress For Less / Petco New Lenox, IL Cash & Carry Smart Foodservice Buffalo Wild Wings McDonald’s Wawa Burlington, WA St. Augustine, FL East Palatka, FL St. Pet
Slide 25: DEVELOP | ACQUIRE | PARTNER
AGREE REALTY CORPORATION DEVELOP | ACQUIRE | PARTNER ADC NYSE