DEVELOP ACQUIRE PARTNER

Similar documents
DEVELOP ACQUIRE PARTNER

DEVELOP ACQUIRE PARTNER

DEVELOP ACQUIRE PARTNER

DEVELOP ACQUIRE PARTNER

DEVELOP ACQUIRE PARTNER

AGREE REALTY CORPORATION REPORTS OPERATING RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2014

AGREE REALTY CORPORATION REPORTS OPERATING RESULTS FOR THE SECOND QUARTER 2015

Investor Presentation September 2014

SUPPLEMENTAL INFORMATION

Investors and Analyst

MANAGEMENT PRESENTATION. November 7, 2017

NEWS RELEASE For immediate release

FOR IMMEDIATE RELEASE

Positioned for Performance. j u n e Fine Arts Building Berkeley, CA

NEWS RELEASE For immediate release

Hackman Chicago Infill Industrial Portfolio

Five Oaks Investment Corp.

MARCH 2019 CITI 2019 GLOBAL PROPERTY CEO CONFERENCE

SITE CENTERS NOVEMBER 2018

Investor Presentation. First Quarter 2015

FOR IMMEDIATE RELEASE

Investor Presentation September 2017

AMH Corporate Update 2

FOR IMMEDIATE RELEASE

OFFERING MEMORANDUM N Howard St, Baltimore MD 21218

ALEXANDER & BALDWIN. May 8, 2018

Investor Presentation December 2017

INVESTOR PRESENTATION MAY 2013

Taubman Centers, Inc. Taubman/Starwood Capital Group Transaction

Investor Presentation November 2017

NNN SAVE-A-LOT SALE LEASEBACK

WALGREENS 1051 OAK STREET NORTH AURORA, IL Dan Stewart, CCIM Managing Director

Achieved record annual revenues of $110.0 million for 2018, representing an increase of 5.8%

CVS. 6 Unit Zero Cash Flow Portfolio. Representative Photo. Offering Memorandum 1

Definitions. CPI is a lease in which base rent is adjusted based on changes in a consumer price index.

FIRST INDUSTRIAL REALTY TRUST REPORTS FIRST QUARTER 2018 RESULTS

NEWS RELEASE For immediate release

EastGroup Properties Announces Second Quarter 2018 Results

North America s Largest Owner & Operator of Neighborhood & Community Shopping Centers. Retail Investor Presentation. Long Gate S.C.

Front Yard Residential Corporation Announces Transformative Acquisition and Reports Second Quarter 2018 Results

Exclusive Investment Opportunity

1819 W 3rd Street, Dayton, Ohio Click Image For Online Property Map

Clipper Realty Inc. Announces Third Quarter 2018 Results Reports Record Revenues, Income From Operations and Adjusted Funds From Operations

DOLLAR GENERAL BRAND NEW DOLLAR GENERAL 4709 W TRAPNELL, PLANT CITY, FL NOT ACTUAL STORE BENJAMIN SCHULTZ BRYAN BENDER

STAG INDUSTRIAL ANNOUNCES SECOND QUARTER 2018 RESULTS

Colliers International STUDENT HOUSING. National Sales Report Year End

Series D Preferred Stock Follow-On Offering January 2018 Think Retail. Think Wheeler. Nasdaq: whlr Issuer Free Writing Prospectus Filed Pursuant to

RIVERS EDGE Indianapolis, IN INVESTOR PRESENTATION st Quarter 2013

Transit-Oriented Development Specialized Real Estate Services

DOLLAR GENERAL 3311 E. PALMETTO STREET FLORENCE SC 29506

NNN LEASE/DOLLAR GENERAL

EXCLUSIVELY LISTED INVESTMENT OFFERING

Bay Mall. Southwest Corner of Charlevoix Ave (US Rt 31) and Spring Street (US Rt 131) Petoskey, Michigan

News Release. PS Business Parks, Inc. 701 Western Avenue P.O. Box Glendale, CA

Extra Space Storage Inc. Reports 2018 Fourth Quarter and Year-End Results

December 2013 SUPPLEMENTAL OPERATING & FINANCIAL INFORMATION FOURTH QUARTER 2013 PHYSICIANS REALTY TRUST NYSE: DOC

DOLLAR GENERAL BRAND NEW DOLLAR GENERAL FOR SALE 544 KIGHT RD, KITE, GA ACTUAL STORE BENJAMIN SCHULTZ BRYAN BENDER

Great Elm Capital Group, Inc. An Introduction to the Fort Myers Transaction & GEC s Real Estate Strategy

FOR IMMEDIATE RELEASE: Equity One Reports Fourth Quarter and Year End 2014 Operating Results

MARKETING POSITIONING AND PRICING ANALYSIS WALGREENS SULPHUR, LOUISIANA. Representative Photo

Comstock Holding Companies, Inc. NASDAQ: CHCI. New Business Model Update June 12, 2018

OCCUPIER SERVICES TEAM A SINGLE SOURCE FOR WORLD-CLASS REAL ESTATE OUTCOMES

ANDY'S FROZEN CUSTARD 20 YR. ABSOLUTE NET

Extra Space Storage Inc. Reports 2017 Fourth Quarter and Year-End Results

Acquisition of Place Properties

Glendale, California - PS Business Parks, Inc. (AMEX: PSB), reported operating results for the fourth quarter and the year ending December 31, 2001.

2014 Operating and Financial Highlights

Macquarie Mexican REIT

FORWARD-LOOKING STATEMENTS

DOLLAR GENERAL RELOCATION PLUS DOLLAR GENERAL 670 EAST ARCADIA AVE, DAWSON SPRINGS, KY ACTUAL STORE BENJAMIN SCHULTZ BRYAN BENDER

NEW DOLLAR GENERAL FORTIS NET LEASE INVESTMENT REAL ESTATE SERVICES. 15 Year Absolute NNN lease Rare 3% Rent Increase in Year 11

America s Parking REIT

WINCHESTER STATION WINCHESTER, FREDERICK COUNTY, VIRGINIA

PRIMARIS RETAIL REIT Announces Third Quarter Results

SUNNYMEAD AUTO WASH SALE LEASEBACK

SAINT LIBORY, IL DOLLAR GENERAL

Shelby Corners. Northwest Corner of Hall Road and Schoenherr Road Utica (Detroit MSA), Michigan. Ben Wineman (630)

FRANK JERMUSEK, JD PETER COLVIN. JAMES PARSONS Council Chair Of Single Tenant Investments

CHASE BANK & RETRO FITNESS 435 Broadway Bayonne, NJ Offering Memorandum

UDR Second Quarter 2011 Earnings Supplement

Comstock Holding Companies, Inc. NASDAQ: CHCI. New Business Model March 2018

MARCH 2018 CITI 2018 GLOBAL PROPERTY CEO CONFERENCE

$778,000 9% CAP 7,000 SF $111 PSF. Exclusive Listing Agents: Bob Moorhead Joe Caputo

ANNUAL GENERAL MEETING. May 29, 2018

DREAM GLOBAL ANNOUNCES FOURTH QUARTER RESULTS, 24% ANNUAL NET ASSET VALUE GROWTH AND OVER 6% FOURTH QUARTER COMPARATIVE NOI GROWTH

Carter Validus Mission Critical REIT, Inc. Reports Second Quarter 2016 Results

WALMART NEIGHBORHOOD MARKET

Highwoods Reports Third Quarter 2017 Results

... ARMADA HOFFLER PROPERTIES REPORTS FOURTH QUARTER 2013 RESULTS

3rd Quarter Quarterly Supplemental

Alexander & Baldwin, Inc. PREMIER HAWAII REAL ESTATE COMPANY

FOR IMMEDIATE RELEASE AUGUST 2, 2018 ARTIS REAL ESTATE INVESTMENT TRUST RELEASES SECOND QUARTER RESULTS

FRANK JERMUSEK, JD PETER COLVIN. JAMES PARSONS Council Chair Of Single Tenant Investments

Marshall & Ilsley Corporation Credit Quality 2007 Third Quarter

Highwoods Reports Third Quarter 2018 Results

2nd Quarter Quarterly Supplemental

Industrial Income Trust Inc.

DCT INDUSTRIAL TRUST REPORTS FOURTH QUARTER AND FULL-YEAR 2017 RESULTS. Net Earnings of $0.22 per Diluted Share in Q4; $1.11 per Diluted Share in 2017

1075 FM 802 Brownsville, Texas 78526

HISTORICAL VACANCY VS RENTS $1.75 2Q10 2Q11 2Q12 2Q13 2Q14

Transcription:

DEVELOP ACQUIRE PARTNER February 2019

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 1995. 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, 2018 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 www.agreerealty.com. All information in this presentation is as of February 25, 2019. 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

Agree Realty Corporation (NYSE: ADC) Retail net lease REIT focused on growth through the acquisition and development of high-quality retail properties Our Company $3.2 billion retail net lease REIT headquartered in Bloomfield Hills, MI and listed on the NYSE under ticker ADC (1) 645 retail properties totaling approximately 11.2 million square feet in 46 states 51% investment grade tenants and 10.2 years average remaining lease term Investment grade credit rating of Baa2 with a stable outlook from Moody s Our History 48-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 (1) As of February 25, 2019. 2

2018 Highlights Consistent execution has led to enhanced shareholder value 225 retail net lease properties acquired in 2018 for a record $607.0 million 98-property sale-leaseback transaction with Sherwin-Williams totaling more than $142 million 16 development and PCS projects completed or under construction totaling $74.4 million 21 properties sold in 2018 for total gross proceeds of $67.6 million (1) Raised $181 million via our ATM program Declared a fourth quarter dividend of $0.555 per share, a 6.7% year-over-year increase Announced 2019 acquisition guidance of $350 million to $400 million (1) Includes Meijer s exercise of a purchase option totaling $3.9 million. 3

Investment Strategy

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 5

Track Record of Execution Record 2018 investment activity of more than $680 million Investment Activity $ in millions $700.0 $74.4 $600.0 $607.0 $500.0 $400.0 $62.7 $300.0 $38.0 $295.8 $336.8 $200.0 $14.9 $220.1 $100.0 $28.4 $73.3 $17.7 $147.5 $0.0 2013 2014 2015 2016 2017 2018 Acquisitions Development & PCS (1) (1) Represents development and PCS activity, completed or commenced. 6

Accelerating Growth Established real estate capabilities and growing market presence driving increased investment opportunities # of Properties Annualized Base Rent ( ABR ) $ in millions 650 600 645 $165.0 $155.0 $157.6 550 $145.0 500 $135.0 $125.0 450 400 436 $115.0 $105.0 $119.2 350 300 366 $95.0 $85.0 $94.3 250 279 $75.0 $65.0 $72.4 200 209 $55.0 $56.5 150 100 130 2013 2014 2015 2016 2017 2018 $45.0 $35.0 $45.1 2013 2014 2015 2016 2017 2018 7

Active Portfolio Management Our focus on real estate fundamentals guides non-core asset sales and capital recycling Total Dispositions 2010-2018: $229 million (1) $67.6M (1) Michigan (3) $45.8M Upland, CA Atlantic Beach, FL Apopka, FL $12.9M $29.0M $29.7M Chippewa Commons North Lakeland Plaza Minnesota (3) LA (1) & PA (1) Chippewa Falls, WI Lakeland, FL Ocala, FL North Dakota (3) MN (2) & ND (2) Petoskey Town Center Ferris Commons Petoskey, MI Big Rapids, MI Macomb Township, MI Florida (2) MT (1) & VA (1) 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 2014 2015 2016 2017 2018 Graph is representative and does not include all dispositions. (1) Includes Meijer s exercise of a purchase option totaling $3.9 million. 8

Portfolio Summary

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 9% 99% 12/31/2018 (645 properties) Tenant Ground Leases 75.0% 60.0% 45.0% 30.0% 15.0% 0.0% 70% 15% 1/1/2010 12/31/2018 9/30/2018 (Walgreens, Borders, Kmart) (Sherwin-Williams, Walgreens, Walmart) Geographic Diversification 1/1/2010 (16 states) + 12/31/2018 (46 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 10

Portfolio Transformation January 2015 December 2018 Top Sectors Pharmacy 29.7% QSRs 7.5% Apparel 6.1% Home Improvement 11.1% Pharmacy 8.5% Tire & Auto Service 7.6% Top Tenants 21.9% 4.4% 4.4% 6.0% 5.4% 3.9% # of Properties 209 properties 645 properties Enterprise Value $0.8 billion $3.2 billion (1) (1) As of February 25, 2019. 11

Portfolio Snapshot Tenants $ in millions Annualized Tenant / Concept Base Rent (1) % of Total $9.5 6.0% 8.4 5.4% 6.1 3.9% 5.1 3.2% 4.5 2.9% 4.3 2.7% 4.2 2.7% 3.4 2.2% 3.3 2.1% 3.2 2.0% 3.1 2.0% 3.1 1.9% 3.0 1.9% 2.8 1.8% 2.7 1.7% 2.6 1.7% 2.6 1.6% 2.4 1.5% 2.4 1.5% Other 80.9 51.3% Total $157.6 100.0% 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% Lease Expirations 2% 2% 3% 3% 4% 6% 6% 6% 7% Retail Sectors $ in millions Annualized 9% 51% Tenant Sector Base Rent (1) % of Total Home Improvement $17.4 11.1% Pharmacy 13.4 8.5% Tire & Auto Service 11.9 7.6% Grocery Stores 9.9 6.3% Off-Price Retail 9.0 5.7% Health & Fitness 8.1 5.1% Auto Parts 7.2 4.6% Convenience Stores 7.1 4.5% Restaurants Quick Service 6.5 4.1% General Merchandise 6.0 3.8% Farm and Rural Supply 5.4 3.4% Craft and Novelties 5.0 3.2% Dollar Stores 4.6 2.9% Home Furnishings 4.4 2.8% Consumer Electronics 4.3 2.7% Specialty Retail 4.3 2.7% Other 33.1 21.0% Total $157.6 100.0% 12

Sherwin-Williams Sale-Leaseback Transaction Deal Overview Purchase price of more than $142 million 98-property portfolio Long-term NNN leases Closed December 28, 2018 Tenant Overview Global leader in the manufacturing, development & distribution of paint & coatings Investment-grade credit ratings of BBB (S&P), Baa3 (Moody s) and BBB (Fitch) Strong Demographics Average 5-mile population: 180,000 Average 5-mile HH income: $72,000 Average traffics counts: 28,000 VPD Fungible Boxes Free-standing boxes averaging 5,800 square feet Geographic Diversity More than 25 states across the country 13

Portfolio Breakdown $ in millions Top Tenants Rank Tenant / Concept # of Assets ABR (1) % of Total 1 105 $9.5 6.0% 2 23 $8.4 5.4% 3 6 $6.1 3.9% 4 6 $5.1 3.2% 5 12 $4.5 2.9% 6 20 $4.3 2.7% 7 5 $4.2 2.7% Walmart Lease Type (% ABR) Net Ground Lease Lease 55% 45% Diversified portfolio comprised of Walmart Supercenter, Neighborhood Market and Sam s Club Roseville, MI Two turnkey and four 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 Franklin, OH Hazard, KY Vero Beach, FL (1) Based on GAAP annualized base rent. 14

$ in millions Portfolio Breakdown Top Tenants Rank Tenant / Concept # of Assets ABR (1) % of Total 1 105 $9.5 6.0% 2 23 $8.4 5.4% 3 6 $6.1 3.9% 4 6 $5.1 3.2% 5 12 $4.5 2.9% 6 20 $4.3 2.7% 7 5 $4.2 2.7% 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) (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 15

National and Super-Regional Retailers Industry-leaders operating in e-commerce resistant sectors Retail Tenant Type (% ABR) National National 80% Super-Regional Franchise Super-Regional 15% Franchise 5% z 16

Strong Investment Grade Portfolio Best-in-class retailers with conservative balance sheets Retail Credit Type (% ABR) National Investment Grade (1) 51% Sub-Investment Grade 20% Not Rated Super-Regional 29% Franchise z (1) Based on annualized base rent derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners. 17

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% 50.0% 100% 100% 84% 82% 63% 60% 50.0% 40.0% 30.0% 51% 47% 43% 25.0% 20.0% 20% 0.0% (1) (2) ADC NNN SRC O VER STOR 10.0% (1) ADC O VER NNN STOR SRC Occupancy Weighted-Average Lease Term 100.0% 99.0% 98.0% 99.8% 99.7% 99.6% 98.8% 98.6% 98.2% 14.0 12.5 yrs 11.5 yrs 10.5 yrs 14.0 11.5 97.0% 9.5 yrs 10.2 9.6 96.0% ADC SRC STOR VER O NNN 8.5 yrs STOR NNN ADC SRC O VER 9.2 8.9 ADC data as of December 31, 2018. Peer data from the fourth quarter 2018 supplemental or company SEC filings. (1) Excludes Office, Industrial and Distribution, as disclosed. (2) Excludes Early Childhood Education, Career Education, Behavioral Health, Elementary and Secondary Schools, Lumber Wholesalers, Wholesale Automobile Auction and All Other Service Industries, as disclosed. 18

Embedded Redevelopment Opportunities Mount Pleasant, Michigan Legacy shopping center located on main retail corridor across from Central Michigan University s campus Former Kmart ABR: $175K gross Lease expired on August 31 st, 2018 Redevelopment commenced in Q3 2018; executed new 15-year net lease with Hobby Lobby Frankfort, Kentucky Legacy shopping center located in Frankfort s dominant retail trade area Former Kmart ABR: $165K net Lease expired on September 31 st, 2018 Redevelopment commenced in Q4 2018; executed new leases with ALDI, Big Lots & Harbor Freight Tools 19

Development and PCS Projects Under Construction 16 projects completed or under construction totaling $74.4 million Hobby Lobby Mt. Pleasant, MI Mister Car Wash (2) Orlando, FL & Tavares, FL Sunbelt Rentals (3) KY & OH (2) Gerber Collision Round Lake, IL Recently Completed Capital Plaza (ALDI, Big Lots, Harbor Freight Tools) Frankfort, KY Art Van Furniture Canton, MI Burlington Coat Factory Nampa, ID Camping World Grand Rapids, MI ALDI Chickasha, OK 20

Financial Overview

Capital Structure, Credit Metrics Debt Maturities $ in millions $120.0 $325.0 (1) $125.0 $100.0 $100.0 $106.6 $100.0 $80.0 $60.0 $68.6 $60.0 $40.0 $40.0 $50.0 $50.0 $20.0 $0.0 $0.0 $4.8 2019 2020 2021 2022 $0.0 2023 2024 2025 2026 2027 2028 2029 2030 Revolving Credit Facility Mortgage/Unsecured Debt Capitalization Statistics Equity Market Capitalization $2.5B (2) Enterprise Value $3.2B (2) Credit Metrics Fixed Charge Coverage Ratio 4.0x Net Debt / Recurring EBITDA 4.7x Total Debt to Enterprise Value 25% Moody s Credit Rating Baa2 (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 February 25, 2019. 22

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 23

DEVELOP ACQUIRE PARTNER