DEVELOP ACQUIRE PARTNER

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1 DEVELOP ACQUIRE PARTNER November 2018

2 Forward-Looking Statements Forward-Looking Statements This presentation may contain certain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of Forward-looking statements are generally identifiable by use of forward-looking terminology such as may, will, should, potential, intend, expect, seek, anticipate, estimate, approximately, believe, could, project, predict, forecast, continue, assume, plan, references to outlook or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections and forecasts and other forward-looking information and estimates. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond the Company s control, which could cause actual results to differ materially from such statements. These risks and uncertainties are described in greater detail in the Company s filings with the Securities and Exchange Commission, including, without limitation, the Company s Annual Report on Form 10-K for the year ended December 31, 2017 and in subsequent quarterly reports. Except as required by law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. For further information about the Company s business and financial results, please refer to the Management s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of the Company s SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Invest section of the Company s website at All information in this presentation is as of October 31, The Company undertakes no duty to update the statements in this presentation to conform the statements to actual results or changes in the Company s expectations. 1

3 Agree Realty Corporation (NYSE: ADC) Retail net lease REIT focused on growth through the acquisition and development of high-quality retail properties Our Company $2.6 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC 520 retail properties totaling approximately 10.0 million square feet in 45 states 47% investment grade tenants and 10.1 years average remaining lease term Investment grade credit rating of Baa2 with a stable outlook from Moody s (1) Our History 47-year operating history as a developer, owner and manager of retail properties IPO in 1994 to continue and expand business of predecessor company Formally launched acquisition platform in 2010 and Partner Capital Solutions ( PCS ) business in 2012 Our Business Plan Opportunistically expand and diversify our high-quality retail net lease portfolio through a refined and disciplined investment strategy Generate consistent and sustainable earnings growth Provide a reliable income stream through a growing dividend Maintain a conservative and flexible capital structure As of September 30, 2018, unless otherwise noted. (1) As of October 31,

4 Recent Highlights Consistent execution has led to enhanced shareholder value 96 retail net lease properties acquired year-to-date for a record $351.1 million 13 development and PCS projects completed or under construction totaling $59.6 million 17 properties sold year-to-date for total gross proceeds of $61.9 million (1) Completed forward equity offering for anticipated net proceeds of approximately $190 million Declared a quarterly dividend of $0.54 per share, a 6.9% year-over-year increase Increased 2018 acquisition guidance to a range of $425 million to $475 million As of September 30, (1) Includes Meijer s exercise of a purchase option totaling $3.9 million. 3

5 Investment Strategy

6 Scaling Three-Pronged 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 net lease asset origination Bottoms-up underwriting => real estate and residuals matter 100% retail properties => superior real estate + longer term leases National and super-regional retailers => superior real estate + credit enhancement Emphasis on tenant real estate solutions => long-term relationships and repeat business Partner Capital Solutions Inorganic development Partner with private developers Development Provide capital and development expertise Acquisitions Organic development Acquire stabilized assets 47-year track record Preferred developer status Sale-leasebacks and third party sellers Site selection Land negotiation Entitlements Land purchase Construction Delivery Sale Retail Net Lease Real Estate Lifecycle 5

7 ADC s Unique Dual Capabilities Emphasis on comprehensive real estate solutions drive multi-faceted partnerships DEVELOPMENT Spearheading retailer expansion programs for over four decades In-house expertise Superior access to capital Transparency & credibility SALE-LEASEBACK Track record of execution as acquirer and real estate partner Ability to close quickly Focus on core competencies Side-by-side growth 6

8 Track Record of Execution ADC anticipates investing over $500 million in 2018 $ in millions Investment Activity $500.0 $59.6 $450.0 $400.0 $62.7 $300.0 $38.0 $295.8 $336.8 $200.0 $14.9 $220.1 $17.7 $147.5 $100.0 $28.4 $73.3 $ Acquisitions Development & PCS (1) (2) (1) 2018 Acquisitions represents midpoint of 2018 acquisition guidance. (2) Represents development and PCS activity, completed or commenced. 7

9 Accelerating Growth Established real estate capabilities and growing market presence driving increased investment opportunities # of Properties $ in millions Annualized Base Rent ( ABR ) $141.7 $ $ $ $90.0 $ $70.0 $ $50.0 $ $ $ As of September 30,

10 Active Portfolio Management Our focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions : $223 million (1) $61.9M (1) Mauston, WI $45.8M Upland, CA Atlantic Beach, FL Apopka, FL $12.9M $29.0M $29.7M Chippewa Commons North Lakeland Plaza Minnesota (3) Plainfield, IN Chippewa Falls, WI Lakeland, FL Ocala, FL North Dakota (3) MN (2) & ND (1) Petoskey Town Center Ferris Commons Petoskey, MI Big Rapids, MI Macomb Township, MI Florida (2) Michigan (3) Marshall Plaza East Lansing, MI Marshall, MI Rancho Cordova, CA Oscoda, MI Wichita Falls, TX Ironwood Commons Ironwood, MI Waynesboro, VA Port St. John, FL Michigan (3) Springfield, IL YTD As of September 30, Graph is representative and does not include all dispositions. (1) Includes Meijer s exercise of a purchase option totaling $3.9 million. 9

11 Portfolio Summary

12 Portfolio Transformation Execution has led to increased portfolio diversification and improved quality of rental income Property Type (% ABR) Top 3 Tenant Concentration (% ABR) Retail Net Lease 71% Shopping Centers 29% 1/1/2010 (73 properties) 6% Tenant Ground Leases 1% Shopping Centers Retail Net Lease 8% 99% 9/30/2018 (520 properties) Tenant Ground Leases 75.0% 60.0% 45.0% 30.0% 15.0% 0.0% 70% 14% 1/1/2010 9/30/2018 (Walgreens, Borders, Kmart) (Walgreens, Walmart, LA Fitness) Geographic Diversification 1/1/2010 (16 states) + 9/30/2018 (45 states) Pharmacy Bookstores General Merchandise Casual Dining Financial Services Auto Parts Retail Sector Exposure 1/1/2010 Current Pharmacy QSRs Health & Fitness Grocery Stores Off-Price Retail Warehouse Clubs Apparel Convenience Stores Casual Dining Specialty Retail Home Improvement Theaters Auto Parts Financial Services Health Services Tire & Auto Service Entertainment Retail Crafts & Novelties Dollar Stores Pet Supplies General Merchandise Discount Stores Sporting Goods Home Furnishings Office Supplies Consumer Electronics Farm & Rural Supply Shoes 11

13 Portfolio Transformation January 2015 Current Top Sectors Pharmacy 29.7% QSRs 7.5% Apparel 6.1% Pharmacy 9.7% Tire & Auto Service 8.0% Grocery 7.0% Top Tenants 21.9% 4.4% 4.4% 6.2% 3.9% 3.6% # of Properties 209 properties 520 properties Enterprise Value $0.8 billion $2.6 billion (1) As of September 30, 2018, unless otherwise noted. (1) As of October 31,

14 Portfolio Snapshot Tenants $ in millions Annualized Tenant / Concept Base Rent (1) % of Total $ % % % % % % % % % % % % % % % % % % Other % Total $ % As of September 30, Tenants and Sectors highlighted in light blue reflect recent, significant concentration changes. (1) Based on GAAP annualized base rent. 60% 50% 40% 30% 20% 10% 0%.2% 2% 2% 4% 3% Lease Expirations 5% Retail Sectors 8% 7% 6% 8% 55% $ in millions Annualized Tenant Sector Base Rent (1) % of Total Pharmacy $ % Tire and Auto Service % Grocery Stores % Off-Price Retail % Health and Fitness % Home Improvement % Convenience Stores % Restaurants Quick Service % Auto Parts % Farm and Rural Supply % General Merchandise % Craft and Novelties % Specialty Retail % Home Furnishings % Consumer Electronics % Dollar Stores % Theater % Warehouse Clubs % Health Services % Other % Total $ % 13

15 Portfolio Breakdown $ in millions Top Tenants Rank Tenant / Concept # of Assets ABR (1) % of Total 1 24 $ % 2 5 $ % 3 6 $ % 4 12 $ % 5 20 $ % 6 5 $ % 7 11 $ % Walmart Lease Type (% ABR) Net Lease Ground 60% Lease 40% Diversified portfolio comprised of Walmart Supercenter, Neighborhood Market and Sam s Club Roseville, MI Two turnkey and three ground leases High-performing Sam s Club paying % rent in Brooklyn, Ohio recently exercised fiveyear extension Supercenter in Hazard, Kentucky built into side of mountain with limited competition Brooklyn, OH Manassas, VA Hazard, KY Vero Beach, FL As of September 30, (1) Based on GAAP annualized base rent. 14

16 High-Quality Retail Real Estate = Stronger Residual Values Manassas, VA $22 million transaction Credit Rating: S&P: AA / Moody s: Aa2 Washington, DC MSA Strong demographics: 5-mile population of 174K 5-mile HH income of $100K Ground lease structure with reversionary interest in real estate improvements 15

17 Portfolio Breakdown $ in millions Top Tenants Rank Tenant / Concept # of Assets ABR (1) % of Total 1 24 $ % 2 5 $ % 3 6 $ % 4 12 $ % 5 20 $ % 6 5 $ % 7 11 $ % 12 9 $ % Wawa Lease Type (% ABR) Ground Master Lease Net Lease 58% 42% Geographically diverse portfolio comprised of six ground leases and a three-store master lease Clifton Heights, PA Industry-leading gas and convenience store operator founded in 1803 Investment-grade credit rating ADC developed five of the nine properties Florida (5) Vineland, NJ Newark, DE Baltimore, MD As of September 30, (1) Based on GAAP annualized base rent. 16

18 $ in millions Portfolio Breakdown Top Tenants Rank Tenant / Concept # of Assets ABR (1) % of Total 1 24 $ % 2 5 $ % 3 6 $ % 4 12 $ % 5 20 $ % 6 5 $ % 7 11 $ % Diversified portfolio comprised of six TJ Maxx, five HomeGoods and one Marshalls/HomeGoods combo store Nashua, NH New Lenox, IL Credit Rating: S&P: A+ / Moody s: A2 Invested roughly $60 million since 2016 Top-performing Marshalls/HomeGoods in New Jersey; four miles from Manhattan Average Rent: $10 PSF (2) Average GLA: 26,000 SF (2) As of September 30, (1) Based on GAAP annualized base rent. (2) Excludes the Company s Marshalls/HomeGoods combo store in Secaucus, New Jersey. Aurora, CO Logan, UT Oklahoma City, OK Bossier City, LA Secaucus, NJ Brunswick, GA Jacksonville, FL Chattanooga, TN Liberty, MO Monroeville, PA 17

19 National and Super-Regional Retailers Retail Tenant Type (% ABR) Industry leading brands and retailers operating in e-commerce resistant sectors National National 78% Super-Regional Super-Regional 16% Franchise Franchise 6% z As of September 30,

20 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 Retail Tenants 100.0% 75.0% 100% 100% 85% 81% 50.0% 40.0% 47% 46% 50.0% 65% 64% 30.0% 37% 25.0% 20.0% 19% 0.0% ADC NNN SRC O STOR VER 10.0% (1) (2) (2) ADC O VER NNN SRC STOR Occupancy Weighted-Average Lease Term 100.0% 99.0% 99.7% 99.7% 99.6% 13.0 yrs yrs % 98.8% 98.7% 98.5% 11.0 yrs % 10.0 yrs % ADC STOR SRC VER O NNN 9.0 yrs STOR NNN ADC SRC O VER ADC data as of September 30, Peer data from second quarter 2018 supplemental or company SEC filings. (1) Excludes Early Childhood Education, Career Education, Behavioral Health, Elementary and Secondary Schools, Lumber Wholesalers, Wholesale Automobile Auction and All Other Service Industries, as disclosed. (2) Excludes Office, Industrial and Distribution, as disclosed. 19

21 Embedded Redevelopment Opportunities Mount Pleasant, Michigan Legacy shopping center located on main retail corridor across from Central Michigan University s campus Kmart Cash ABR: $175K gross Lease expired on August 31 st Executed new 15-year net lease with Hobby Lobby; redevelopment anticipated to commence in Fall 2018 Frankfort, Kentucky Legacy shopping center located in Frankfort s dominant retail trade area Kmart Cash ABR: $165K net 5-acre site Represents 66% of GAAP ABR expiring in 2018 LOI s executed with several leading retailers As of September 30,

22 Development and PCS Projects Under Construction 13 projects completed or under construction totaling $59.6 million Hobby Lobby Mt. Pleasant, MI Mister Car Wash Orlando, FL Mister Car Wash Tavares, FL Sunbelt Rentals (2) Batavia, OH & Maumee, OH Recently Completed Burlington Coat Factory Nampa, ID Camping World Grand Rapids, MI ALDI Chickasha, OK Art Van Furniture Canton, MI Burger King (2) Aurora, IL & North Ridgeville, OH Mister Car Wash (2) Bernalillo, NM & Urbandale, IA As of September 30,

23 Financial Overview

24 Capital Structure, Credit Metrics Debt Maturities $ in millions $120.0 (1) $325.0 $125.0 $100.0 $100.0 $100.0 $80.0 $60.0 $68.6 $60.0 $40.0 $40.2 $50.0 $50.0 $20.0 $0.0 $5.2 $ $ $ $ Revolving Credit Facility Mortgage/Unsecured Debt Capitalization Statistics Equity Market Capitalization $2.0B (2) Total Enterprise Value $2.6B (2) Credit Metrics Fixed Charge Coverage Ratio 4.1x Net Debt / Recurring EBITDA 4.7x Total Debt to Total Enterprise Value 25.1% Moody s Credit Rating Baa2 As of September 30, 2018, unless otherwise noted. (1) Reflects the total commitments under the Company s $325 million Revolving Credit Facility; assuming two 6-month extension options are exercised. (2) As of October 31,

25 Investment Summary Highlights Investment grade credit rating Highest-quality retail real estate Most secure cash flows Strongest balance sheet Proven track record of execution Consistent dividend growth Robust growth trajectory 24

26 DEVELOP ACQUIRE PARTNER