Scale Conundrum Makes Agree The Small Fish In The Big Sea

Agree Realty has diversified its risks and strengthened its balance sheet.

Summary
  • Agree Realty has diversified its risks and strengthened its balance sheet.
  • The REIT has outperformed; what could go wrong?
  • It's all about scale and tax reform.

As most of our readers know, we tend to be fans of net lease REITs, especially single tenant net lease REITs. While we cover all the single tenant triple nets, we publish notes on some more often than others as they tend to be more compelling and a better long-term fit for many of our subscribers. As a result, there are some we don't publish on as much. One of these is Agree Realty (NYSE:ADC)...

Agree Realty Corporation is a fully integrated REIT primarily focused on the ownership, acquisition, development and management of retail properties net leased to industry leading tenants. As of September 30, 2017, the Company's portfolio consisted of 425 properties located in 43 states and totaled 8.3 million square feet of gross leasable space. Properties ground leased to tenants increased to 8.2% of annualized base rents.

The portfolio was approximately 99.7% leased, had a weighted average remaining lease term of approximately 10.5 years, and generated approximately 45.2% of annualized base rents from investment grade retail tenants.

Properties