non-deal roadshow july 9-10, 2013 - agree realty corporation · 2019. 3. 1. · adc 12.31.09 vs...
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Non-Deal Roadshow
July 9-10, 2013
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MARKET STATISTICS
Ticker: NYSE: ADC
Recent Price: $29.52(1)
Shares and OP Units Outstanding: 13,585,000(1)
Current Annualized Dividend: $1.64
Dividend Yield: 5.6%(1)
Current Market Cap: $401 million(1)
Total Enterprise Value: $527 million(1)
Total Revenues: $39 million(2)
Number of Properties: 120
(1) Based on June 28, 2013 closing stock price of $29.52 per share.
(2) Based on trailing 12 month results through March 31, 2013
Focused on the acquisition and development of single tenant
properties leased to industry leading retail tenants
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INVESTMENT HIGHLIGHTS
Disciplined investment approach
Industry leading team
Strategic retailer relationships
High quality property portfolio
Proven external growth strategies
Strong, growth-oriented balance sheet
Attractive, sustainable dividend yield
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STRATEGIC GROWTH THROUGH DISCIPLINED INVESTMENTS
Single Tenant Net Lease Development
Preferred developer status with national tenants
Long-term net leases with first in class tenants
Pre-leasing minimizes development risk
Superior return on development cost Wawa – St. Petersburg, FL
Kohl’s – Salt Lake City, UT
Single Tenant Net Lease Acquisitions
Industry leading retailers
Recession resistant and web resistant industries
Average capitalization rate of roughly 8%
Superior underlying real estate
Average lease duration approaching 15 years
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Walgreens – Ann Arbor, MI
2012 - 2013 COMMENCED OR COMPLETED PROJECTS
Located in the heart of University of
Michigan’s Central Campus
Redevelopment, pre-leased under a
20 year agreement
$5.8 million – 18,000 sf
Ann Arbor historic district, built in 1937
McDONALD’S - SOUTHFIELD, MI CHASE - VENICE, FL
WAWA - KISSIMMEE, FL
WAWA - CASSELBERRY, FL
WAWA - PINELLAS PARK, FL
SUPER ONE FOODS – IRONWOOD, MI
WALGREENS – RANCHO CORDOVA, CA
SWQ of 34th St. & 38th Ave.
Pre-leased under a long term
ground lease
Agree’s fourth announced
development for Wawa in the state
of Florida
Wawa – St. Petersburg, FL
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SINCE LAUNCH OF ACQUISITION PLATFORM IN APRIL 2010
STATES 26
ACQUISITIONS 53
RETAIL SECTORS 17
2012 ACQUISITION SUMMARY
Aggregate Purchase Price: $81.5 million
Average Purchase Price: $3.3 million
Average Base Term: 14.5 Years
Retail Sectors: Auto Parts, Auto Service, Pharmacy, Grocery, Financial
Services, Gas & C-Store, Dollar
Stores, Specialty Retail, Health &
Fitness, Casual Dining, Big Box
Discount, Technology, Home
Improvement, and Home
Furnishings
AGGREGATE PURCHASE PRICE $200 million
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DISPOSITION OF NON-CORE ASSETS
Disposition Proceeds Totaling $44 Million
Reduced Kmart Revenue by 29%
Reduced Shopping Center Revenues by 19%
Eliminated all Former Borders
Former Borders
Office Building
Ann Arbor, MI
March
2012
Former Borders
Omaha, NE
May
2012
Charlevoix Commons
Charlevoix, MI
Kmart/Family Farm &
Home Anchored Center
June
2012
August
2012
Plymouth Commons- Plymouth, WI
Kmart/Roundy’s
Shawano Plaza- Shawano, WI
Kmart/JCP/Roundy’s
September
2012
Former Borders
Columbus, OH
Walgreens
Ypsilanti, MI
January
2013
December
Disposition
of Borders
Norman, OK
2011
January
Disposition of
(2) Borders
Tulsa, OK
November
Lease Termination
of Borders
Aventura, FL
2010
April
Disposition
of Borders
Santa Barbara, CA
October
Disposition
of Walgreens
Ocala, FL
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EVOLUTION OF MAJOR TENANT EXPOSURE
% o
f T
ota
l C
om
pa
ny A
nn
ua
lize
d B
as
e R
en
t
2012 2013
2012 2013 2009 2010 2011
* As of March 31, 2013.
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STRONG TENANT BASE
(% of annualized base rents)
As of March 31, 2013
*Includes investment grade ratings as determined by S&P, Moody’s and Fitch, or NAIC
88% National Tenants 60% Investment Grade
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NATIONAL PORTFOLIO ANCHORED BY STRATEGIC RETAILER RELATIONSHIPS
120 Properties | 32 states | 3.5 Million Square Feet
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2009 2013
0
2
4
6
8
10
12
14
16
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SECTOR DIVERSIFICATION
6 Sectors
Pharmacy
Books
Big Box / Discount
Casual Dining
Financial Services
Auto Parts
Apparel
Home Improvement
C-Stores
Specialty Retail
Auto Service
Grocery / Supermarket
Sporting Goods
Technology & Electronics
Quick Service Restaurants
Home Furnishings
Dollar Stores
Health/Fitness
17 Sectors
# o
f R
eta
il S
ecto
rs
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PORTFOLIO STABILITY AND HISTORICAL OCCUPANCY
2013 Pro Forma Occupancy: 97% | 5-Year Average Occupancy: 98%
Occu
pan
cy R
ate
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WELL STAGGERED EXPIRATIONS MITIGATE ROLLOVER RISK
As of March 31, 2013
Lease Expirations (Annualized base rent in millions)
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A BALANCE SHEET TO FUEL GROWTH
(in thousands)
Shares & OP Units Outstanding1 13,585
Total Assets $380,208
Total Debt1 $125,526
Debt/Enterprise Value1 23.8%
Fixed Rate Debt/Total Debt 93%
Fixed Charge Coverage 3.9x
Interest Expense Coverage 4.1x
Debt/EBITDA 4.0x
Average Years to Maturity – Fixed Rate Debt 5.5 years
Credit Facility Maturity Oct – 20152
December 2012:
- Closed on new $25 million term loan with swapped interest rate of 2.49%,
- Closed on new $23.6 million 10-year CMBS loan at 3.60%
- Extended maturity on $85 million credit facility to 2015
Reduced interest spread to 150 - 215 over Libor
$50 million accordion feature increasing capacity to $135 million
January 2013 :
• - Completed follow-on offering of 1,725,000 common shares at $27.25/share raising net proceeds of
$44,953,500
1As of March 31, 2013, with enterprise value based on June 28, 2013 closing stock price of $29.52 per share.
2With extension options at Company’s election until 2017.
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ATTRACTIVE & WELL COVERED DIVIDEND
Annualized dividend of $1.64; current dividend yield of
5.6% (based on $29.52 share price)
76 consecutive quarterly cash dividends since its IPO
FFO Payout Ratio: 84%*
Targeted FFO Payout Ratio: 75 – 85%
* Based on dividend and FFO for the quarter ended March 31, 2013.
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YTD 2013 – RESULTS DRIVEN
Completed development of Walgreens in Rancho Cordova,
California
Completed development of Wawa convenience stores in
Kissimmee and Pinellas Park, Florida
Acquired nine single tenant net leased assets for $43
million
Completed follow-on offering of 1,725,000 common shares
for approximately $45 million net proceeds
Increased 2013 quarterly dividend during the first quarter
by 2.5% to $.41 per share
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A THREE YEAR TRANSFORMATION
73 Properties
16 States
6 Sectors
of Rental
Revenue
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ADC 12.31.09 vs 6.28.13
(1) Based on June 28, 2013 closing stock price of $29.52 per share.
(2) Based on trailing 12 month results through March 31, 2013
12.31.09 6.28.13
Recent Stock Price: $23.29
$29.52 (1)
Market Capitalization: $199 million
$401 million(1)
Total Enterprise Value: $304 million
$527 million(1)
Debt/Enterprise Value: 34.4% 23.8% (1)
Total Revenues: $26 million
$39 million (2)
Number of Properties: 73 120
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FORWARD LOOKING STATEMENT
This presentation may include certain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These forward-
looking statements include, but are not limited to, our plans, objectives,
expectations and intentions and other statements contained in this document that
are not historical facts and statements identified by words such as “expects,
“anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of
similar meaning. These statements are based on our current beliefs or
expectations and are inherently subject to significant uncertainties and changes
in circumstances, many of which are beyond our control. Actual results may differ
materially from these expectations due to changes in global political, economic,
business, competitive, market and regulatory risk factors. Information concerning
risk factors that could affect Agree Realty Corporation’s actual results is
contained in the Company’s reports filed from time to time with the Securities and
Exchange Commission. Agree Realty Corporation does not undertake any
obligation to update any forward-looking statements contained in this document,
as a result of new information, future events or otherwise.
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