UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 24, 2017
AGREE REALTY CORPORATION
(Exact name of registrant as specified in its charter)
Maryland
(State of other jurisdiction of incorporation)
1-12928 |
38-3148187 |
(Commission file number) | (I.R.S. Employer Identification No.) |
70 E. Long Lake Road Bloomfield Hills, MI | 48304 |
(Address of principal executive offices) | (Zip code) |
(Registrant’s telephone number, including area code) (248) 737-4190
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. | Results of Operations and Financial Condition. |
On July 24, 2017, Agree Realty Corporation issued a press release describing its results of operations for the second quarter ended June 30, 2017. The press release is furnished as Exhibit 99.1 to this report and is hereby incorporated by reference.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit | Description |
99.1 | Press release, dated July 24, 2017, reporting the Company's results of operations for the second quarter ended June 30, 2017. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AGREE REALTY CORPORATION | ||||
By: | /s/ Matthew M. Partridge | |||
Name: | Matthew M. Partridge | |||
Title: | Executive Vice President, Chief Financial Officer and Secretary | |||
Date: July 24, 2017 |
EXHIBIT INDEX
Exhibit | Description |
99.1 | Press release, dated July 24, 2017, reporting the Company's results of operations for the second quarter ended June 30, 2017. |
Agree Realty Corporation Reports Second Quarter 2017 Results
BLOOMFIELD HILLS, Mich., July 24, 2017 /PRNewswire/ -- Agree Realty Corporation (NYSE: ADC) (the "Company") today announced results for the quarter ended June 30, 2017. All per share amounts included herein are on a diluted per common share basis unless otherwise stated.
Second Quarter 2017 Financial and Operating Highlights:
Financial Results
Total Rental Revenue
Total rental revenue, which includes minimum rents and percentage rents, for the three months ended June 30, 2017 increased 26.3% to $25.2 million, compared to total rental revenue of $19.9 million for the comparable period in 2016.
Total rental revenue for the six months ended June 30, 2017 increased 28.0% to $49.4 million, compared to total rental revenue of $38.6 million for the comparable period in 2016.
Net Income
Net Income attributable to the Company for the three months ended June 30, 2017 increased 39.5% to $14.9 million, compared to $10.7 million for the comparable period in 2016. Net Income per share attributable to the Company for the three months ended June 30, 2017 increased 17.4% to $0.56, compared to $0.48 per share for the comparable period in 2016.
Net income attributable to the Company for the six months ended June 30, 2017 increased 62.5% to $29.5 million, compared to $18.1 million for the comparable period in 2016. Net income per share attributable to the Company for the six months ended June 30, 2017 increased 32.4% to $1.12, compared to $0.85 per share for the comparable period in 2016.
Funds from Operations
FFO for the three months ended June 30, 2017 increased 30.6% to $18.0 million, compared to FFO of $13.8 million for the comparable period in 2016. FFO per share for the three months ended June 30, 2017 increased 10.2% to $0.67, compared to FFO per share of $0.61 for the comparable period in 2016.
FFO for the six months ended June 30, 2017 increased 32.5% to $35.0 million, compared to FFO of $26.4 million for the comparable period in 2016. FFO per share for the six months ended June 30, 2017 increased 8.3% to $1.32, compared to FFO per share of $1.22 for the comparable period in 2016.
Adjusted Funds from Operations
AFFO for the three months ended June 30, 2017 increased 30.1% to $17.9 million, compared to AFFO of $13.7 million for the comparable period in 2016. AFFO per share for the three months ended June 30, 2017 increased 9.7% to $0.67, compared to AFFO per share of $0.61 for the comparable period in 2016.
AFFO for the six months ended June 30, 2017 increased 32.0% to $34.9 million, compared to AFFO of $26.5 million for the comparable period in 2016. AFFO per share for the six months ended June 30, 2017 increased 7.9% to $1.31, compared to AFFO per share of $1.22 for the comparable period in 2016.
Dividend
The Company paid a cash dividend of $0.505 per share on July 14, 2017 to stockholders of record on June 30, 2017, a 5.2% increase over the $0.48 quarterly dividend declared in the second quarter of 2016. The quarterly dividend represents payout ratios of approximately 75.3% of FFO per share and 75.8% of AFFO per share, respectively.
CEO Comments
"We are very pleased with our performance during the quarter as we continue to deliver strong results across all aspects of our business," said Joey Agree, President and Chief Executive Officer of Agree Realty Corporation. "During the quarter, we invested in 37 high-quality net lease properties across our three external growth platforms, while also maintaining capacity and flexibility with our leading balance sheet. We remain intently focused on industry-leading retailers that employ a cohesive omni-channel strategy or offer a compelling 21st century customer experience."
Portfolio Update
As of June 30, 2017, the Company's portfolio consisted of 413 properties located in 43 states and totaled 7.9 million square feet of gross leasable space. Properties ground leased to tenants accounted for 6.9% of annualized base rents.
The portfolio was approximately 99.6% leased, had a weighted average remaining lease term of approximately 10.6 years, and generated approximately 43.9% of annualized base rents from investment grade retail tenants.
The following table provides a summary of the Company's portfolio as of June 30, 2017:
Property Type | Number of Properties |
| Annualized
|
| Percent of
|
| Percent
|
| Weighted
|
|
|
|
|
|
|
|
|
|
|
Retail Net Lease | 374 |
| $98,895 |
| 91.5% |
| 41.0% |
| 10.6 yrs |
Retail Net Lease Ground Leases | 36 |
| 7,502 |
| 6.9% |
| 86.2% |
| 12.5 yrs |
Total Retail Net Lease | 410 |
| $106,397 |
| 98.4% |
| 44.2% |
| 10.7 yrs |
Total Portfolio | 413 |
| $108,137 |
| 100.0% |
| 43.9% |
| 10.6 yrs |
| Annualized base rent is in thousands; any differences are the result of rounding. |
(1) | Represents annualized straight-line rent as of June 30, 2017. |
(2) | Reflects tenants, or parent entities thereof, with investment grade credit ratings from Standard & Poor's, Moody's, Fitch and/or NAIC. |
Acquisitions
Total acquisition volume for the second quarter of 2017 was approximately $131.0 million and included 36 assets net leased to notable retailers operating in the discount apparel, convenience stores, auto parts, auto service, health and fitness and home improvement sectors. The properties are located in 19 states and leased to tenants operating in 18 retail sectors. The properties were acquired at a weighted-average capitalization rate of 7.7% and with a weighted average remaining lease term of approximately 12.7 years.
For the six months ending June 30, 2017, total acquisition volume was approximately $183.9 million and included 47 high-quality retail net lease assets. The properties are located in 21 states and leased to 38 diverse tenants who operate in 20 retail sectors. The properties were acquired at a weighted-average capitalization rate of 7.7% and with a weighted-average remaining lease term of approximately 12.1 years.
Dispositions
During the quarter, the Company sold two properties for gross proceeds of approximately $12.1 million. The dispositions were completed at a weighted-average capitalization rate of 6.0%.
For the six months ended June 30, 2017, the Company has divested of three properties for total gross proceeds of $22.6 million. The weighted-average capitalization rate of the dispositions was 5.9%.
Development and Partner Capital Solutions
In the second quarter of 2017, the Company completed its previously announced Camping World in Georgetown, Kentucky. The project was the Company's first ground-up development for Camping World, and is subject to a new 20-year net lease. Total project costs were approximately $8.2 million.
Also within the quarter, the Company completed landlord's work in Boynton Beach, Florida. The property has been redeveloped and expanded for Orchard Supply Hardware (Lowe's Companies, Inc.). The project is subject to a new 15-year net lease. Rent is anticipated to commence in the third quarter of 2017, upon completion of the tenant's work.
During the second quarter, the Company commenced three new development and PCS projects with total costs of approximately $24.1 million. The projects include the Company's first PCS project with Art Van Furniture in Canton, Michigan, as well as the Company's first two development projects with Mister Car Wash in Urbandale, Iowa and Bernalillo, New Mexico.
In the first six months of 2017, the Company had seven development or PCS projects completed or under construction on behalf of a number of industry-leading retail tenants. Anticipated total costs are approximately $45.9 million and include the following completed or commenced projects:
Tenant |
| Location |
| Lease Structure |
| Lease Term |
| Actual or
|
| Status |
|
|
|
|
|
|
|
|
|
|
|
Camping World |
| Tyler, TX |
| Build-to-Suit |
| 20 Years |
| Q1 2017 |
| Completed |
Burger King(1) |
| Heber, UT |
| Build-to-Suit |
| 20 Years |
| Q1 2017 |
| Completed |
Camping World |
| Georgetown, KY |
| Build-to-Suit |
| 20 Years |
| Q2 2017 |
| Completed |
Orchard Supply |
| Boynton Beach, FL |
| Build-to-Suit |
| 15 Years |
| Q3 2017 |
| Under Construction |
Mister Car Wash |
| Urbandale, IA |
| Build-to-Suit |
| 20 years |
| Q4 2017 |
| Under Construction |
Mister Car Wash |
| Bernalillo, NM |
| Build-to-Suit |
| 20 years |
| Q4 2017 |
| Under Construction |
Art Van Furniture |
| Canton, MI |
| Build-to-Suit |
| 20 years |
| Q1 2018 |
| Under Construction |
(1) | Franchise restaurant operated by Meridian Restaurants Unlimited, LC. |
Leasing
During the second quarter, the Company executed new leases, extensions or options on approximately 86,000 square feet of gross leasable area throughout the existing portfolio. Notable new leases, extensions or options included a 33,608-square foot Big Lots in Cedar Park, Texas. The Company has one remaining lease maturity in 2017 representing 0.3% of annualized base rent.
Top Tenants
The following table presents annualized base rents for all tenants that represent 1.5% or greater of the Company's total annualized base rent as of June 30, 2017:
Tenant |
| Annualized
|
| Percent of Annualized
|
|
|
|
|
|
Walgreens |
| $9,568 |
| 8.8% |
Walmart |
| 4,224 |
| 3.9% |
LA Fitness |
| 3,713 |
| 3.4% |
Lowe's |
| 3,103 |
| 2.9% |
CVS |
| 2,738 |
| 2.5% |
Wawa |
| 2,664 |
| 2.5% |
Mister Car Wash |
| 2,580 |
| 2.4% |
Smart & Final |
| 2,475 |
| 2.3% |
Dollar General |
| 2,415 |
| 2.2% |
Tractor Supply |
| 2,179 |
| 2.0% |
Hobby Lobby |
| 2,176 |
| 2.0% |
Dave & Buster's |
| 2,058 |
| 1.9% |
Academy Sports |
| 1,982 |
| 1.8% |
Dollar Tree |
| 1,939 |
| 1.8% |
Burger King(2) |
| 1,916 |
| 1.8% |
Rite Aid |
| 1,886 |
| 1.7% |
24 Hour Fitness |
| 1,759 |
| 1.6% |
BJ's Wholesale |
| 1,709 |
| 1.6% |
Other(3) |
| 57,053 |
| 52.9% |
Total Portfolio |
| $108,137 |
| 100.0% |
| Annualized base rent is in thousands; any differences are the result of rounding. | |||
(1) | Represents annualized straight-line rent as of June 30, 2017. | |||
(2) | Franchise restaurants operated by Meridian Restaurants Unlimited, LC. | |||
(3) | Includes tenants generating less than 1.5% of annualized base rent. |
Retail Sectors
The following table presents annualized base rents for the Company's top retail sectors that represent 2.5% or greater of the Company's total annualized base rent as of June 30, 2017:
Sector |
| Annualized
|
| Percent of Annualized
|
|
|
|
|
|
Pharmacy |
| $14,782 |
| 13.7% |
Grocery Stores |
| 7,840 |
| 7.3% |
Restaurants - Quick Service |
| 6,783 |
| 6.3% |
Discount Apparel |
| 6,137 |
| 5.7% |
Auto Service |
| 5,977 |
| 5.5% |
Health & Fitness |
| 5,840 |
| 5.4% |
Home Improvement |
| 4,438 |
| 4.1% |
Convenience Stores |
| 4,363 |
| 4.0% |
Specialty Retail |
| 4,261 |
| 3.9% |
General Merchandise |
| 3,956 |
| 3.7% |
Warehouse Clubs |
| 3,749 |
| 3.5% |
Crafts and Novelties |
| 3,521 |
| 3.3% |
Auto Parts |
| 3,423 |
| 3.2% |
Farm and Rural Supply |
| 3,361 |
| 3.1% |
Sporting Goods |
| 3,171 |
| 2.9% |
Dollar Stores |
| 3,145 |
| 2.9% |
Health Services |
| 3,066 |
| 2.8% |
Theaters |
| 2,978 |
| 2.8% |
Home Furnishings |
| 2,876 |
| 2.7% |
Other(2) |
| 14,470 |
| 13.2% |
Total Portfolio |
| $108,137 |
| 100.0% |
| Annualized base rent is in thousands; any differences are the result of rounding. |
(1) | Represents annualized straight-line rent as of June 30, 2017. |
(2) | Includes sectors generating less than 2.5% of annualized base rent. |
Geographic Diversification
The following table presents annualized base rents for all states that represent 2.5% or greater of the Company's total annualized base rent as of June 30, 2017:
State |
| Annualized
|
| Percent of Annualized
|
|
|
|
|
|
Michigan |
| $13,493 |
| 12.5% |
Texas |
| 9,451 |
| 8.7% |
Florida |
| 8,129 |
| 7.5% |
Illinois |
| 7,849 |
| 7.3% |
Ohio |
| 6,817 |
| 6.3% |
Pennsylvania |
| 4,495 |
| 4.2% |
California |
| 3,697 |
| 3.4% |
Kentucky |
| 3,626 |
| 3.4% |
Louisiana |
| 3,284 |
| 3.0% |
Mississippi |
| 3,283 |
| 3.0% |
Wisconsin |
| 3,099 |
| 2.9% |
Missouri |
| 2,708 |
| 2.5% |
Georgia |
| 2,674 |
| 2.5% |
Other(2) |
| 35,532 |
| 32.8% |
Total Portfolio |
| $108,137 |
| 100.0% |
| Annualized base rent is in thousands; any differences are the result of rounding. |
(1) | Represents annualized straight-line rent as of June 30, 2017. |
(2) | Includes states generating less than 2.5% of annualized base rent. |
Lease Expiration
The following table presents contractual lease expirations within the Company's portfolio as of June 30, 2017, assuming no tenants exercise renewal options:
Year | Leases |
| Annualized
|
| Percent of
|
| Gross
|
| Percent of Gross
|
|
|
|
|
|
|
|
|
|
|
2017 | 1 |
| $277 |
| 0.3% |
| 16 |
| 0.2% |
2018 | 12 |
| 1,628 |
| 1.5% |
| 305 |
| 3.9% |
2019 | 14 |
| 4,408 |
| 4.1% |
| 377 |
| 4.8% |
2020 | 18 |
| 2,552 |
| 2.4% |
| 220 |
| 2.8% |
2021 | 27 |
| 5,456 |
| 5.0% |
| 330 |
| 4.2% |
2022 | 23 |
| 4,030 |
| 3.7% |
| 379 |
| 4.8% |
2023 | 35 |
| 6,172 |
| 5.7% |
| 571 |
| 7.3% |
2024 | 37 |
| 9,196 |
| 8.5% |
| 882 |
| 11.2% |
2025 | 37 |
| 7,309 |
| 6.8% |
| 555 |
| 7.1% |
2026 | 43 |
| 5,740 |
| 5.3% |
| 481 |
| 6.1% |
Thereafter | 223 |
| 61,369 |
| 56.7% |
| 3,741 |
| 47.6% |
Total Portfolio | 470 |
| $108,137 |
| 100.0% |
| 7,857 |
| 100.0% |
| Annualized base rent and gross leasable area (square feet) are in thousands; any differences are the result of rounding. |
(1) | Represents annualized straight-line rent as of June 30, 2017. |
Capital Markets and Balance Sheet
Capital Markets
On June 16, 2017, the Company announced it completed a follow-on public offering of 2,415,000 shares of common stock, which included the underwriters' full exercise of their option to purchase additional shares. Total net proceeds were approximately $108.0 million after deducting the underwriting discount and offering expenses.
During the three months ended June 30, 2017, the Company issued 2,500 shares of common stock under its at-the-market equity program ("ATM program"), realizing gross proceeds of approximately $0.1 million.
Balance Sheet
As of June 30, 2017, the Company's net debt-to-recurring EBITDA was 4.6 times and its fixed charge coverage ratio was 4.0 times. The Company's total debt to total enterprise value was 24.7%. Total enterprise value is calculated as the sum of total debt and the market value of the Company's outstanding shares of common stock, assuming conversion of operating partnership units into common stock.
For the three months ended June 30, 2017, the Company's fully diluted weighted average shares outstanding were 26.5 million. The basic weighted average shares outstanding for the three months ended June 30, 2017 were 26.4 million.
The Company's assets are held by, and its operations are conducted through, Agree Limited Partnership, of which the Company is the sole general partner. As of June 30, 2017, there were 347,619 operating partnership units outstanding and the Company held a 98.8% interest in the operating partnership.
2017 Outlook
The Company's outlook for acquisition volume in 2017, which assumes continued growth in economic activity, moderate interest rate growth, positive business trends and other significant assumptions, remains between $250 million and $275 million of high-quality retail net lease properties. The Company's disposition guidance for 2017 remains between $30 million and $50 million.
Conference Call/Webcast
The Company will host its quarterly analyst and investor conference call on Tuesday, July 25, 2017 at 9:00 AM ET. To participate in the conference call, please dial (866) 363-3979 approximately ten minutes before the call begins.
Additionally, a webcast of the conference call will be available through the Company's website. To access the webcast, visit www.agreerealty.com ten minutes prior to the start time of the conference call and go to the Invest section of the website. A replay of the conference call webcast will be archived and available online through the Invest section of www.agreerealty.com.
About Agree Realty Corporation
Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. The Company currently owns and operates a portfolio of 417 properties, located in 43 states and containing approximately 8.0 million square feet of gross leasable space. The common stock of Agree Realty Corporation is listed on the New York Stock Exchange under the symbol "ADC". For additional information, please visit www.agreerealty.com.
Forward-Looking Statements
This press release 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, 2016 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 press release is as of July 24, 2017. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company's expectations.
Agree Realty Corporation | |||
Consolidated Balance Sheet | |||
($ in thousands, except share and per-share data) | |||
| |||
| June 30, 2017 |
| December 31, 2016 |
Assets: | (Unaudited) |
|
|
Real Estate Investments: |
|
|
|
Land | $ 345,255 |
| $ 309,687 |
Buildings | 805,271 |
| 703,506 |
Accumulated depreciation | (75,841) |
| (69,696) |
Property under development | 6,665 |
| 6,764 |
Net real estate investments | 1,081,350 |
| 950,261 |
Real estate held for sale, net | 5,409 |
| - |
Cash and cash equivalents | 4,173 |
| 33,395 |
Accounts receivable - tenants, net of allowance of $100 and $50 for possible losses at
| 14,243 |
| 11,535 |
Credit facility finance costs, net of accumulated amortization of $230 and $1,262 at
| 1,352 |
| 1,552 |
Leasing costs, net of accumulated amortization of $733 and $677 at June 30, 2017
| 1,546 |
| 1,227 |
Lease intangibles, net of accumulated amortization of $32,997 and $25,666 at June
| 172,928 |
| 139,871 |
Interest rate swaps | 1,285 |
| 1,409 |
Other assets | 4,554 |
| 2,722 |
Total Assets | $ 1,286,840 |
| $ 1,141,972 |
|
|
|
|
Liabilities: |
|
|
|
Mortgage notes payable, net | $ 68,003 |
| $ 69,067 |
Unsecured term loans, net | 158,437 |
| 158,679 |
Senior unsecured notes, net | 159,218 |
| 159,176 |
Unsecured revolving credit facility | 48,000 |
| 14,000 |
Dividends and distributions payable | 14,637 |
| 13,124 |
Deferred revenue | 1,794 |
| 1,823 |
Accrued interest payable | 2,216 |
| 2,210 |
Accounts payable and accrued expenses: |
|
|
|
Capital expenditures | 68 |
| 677 |
Operating | 5,989 |
| 4,866 |
Lease intangibles, net of accumulated amortization of $9,132 and $7,079 at June 30,
| 30,186 |
| 30,047 |
Interest rate swaps | 1,539 |
| 1,994 |
Deferred income taxes | 705 |
| 705 |
Tenant deposits | 96 |
| 94 |
Total Liabilities | 490,888 |
| 456,462 |
|
|
|
|
Equity: |
|
|
|
Common stock, $.0001 par value, 45,000,000 shares authorized, 28,637,180 and
| 3 |
| 3 |
Preferred stock, $.0001 par value per share, 4,000,000 shares authorized |
|
|
|
Series A junior participating preferred stock, $.0001 par value, 200,000 authorized,
| - |
| - |
Additional paid-in capital | 820,134 |
| 712,069 |
Dividends in excess of net income | (26,547) |
| (28,558) |
Accumulated other comprehensive income (loss) | (211) |
| (536) |
Equity - Agree Realty Corporation | 793,379 |
| 682,978 |
Non-controlling interest | 2,573 |
| 2,532 |
Total Equity | 795,952 |
| 685,510 |
Total Liabilities and Equity | $ 1,286,840 |
| $ 1,141,972 |
Agree Realty Corporation | |||||||
Consolidated Statements of Operations and Comprehensive Income | |||||||
($ in thousands, except share and per share-data) | |||||||
(Unaudited) | |||||||
|
|
|
|
|
|
|
|
| Three months ended
|
| Six months ended
| ||||
| 2017 |
| 2016 |
| 2017 |
| 2016 |
Revenues |
|
|
|
|
|
|
|
Minimum rents | $ 25,160 |
| $ 19,912 |
| $ 49,174 |
| $ 38,403 |
Percentage rents | - |
| 7 |
| 212 |
| 190 |
Operating cost reimbursement | 2,881 |
| 1,934 |
| 5,225 |
| 3,523 |
Other income | 39 |
| (9) |
| 29 |
| (48) |
Total Revenues | 28,080 |
| 21,844 |
| 54,640 |
| 42,068 |
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
Real estate taxes | 2,031 |
| 1,438 |
| 3,839 |
| 2,561 |
Property operating expenses | 915 |
| 929 |
| 1,710 |
| 1,501 |
Land lease payments | 163 |
| 163 |
| 327 |
| 327 |
General and administrative | 2,569 |
| 2,042 |
| 5,174 |
| 4,087 |
Depreciation and amortization | 7,704 |
| 5,665 |
| 14,728 |
| 10,750 |
Total Operating Expenses | 13,382 |
| 10,237 |
| 25,778 |
| 19,226 |
|
|
|
|
|
|
|
|
Income from Operations | 14,698 |
| 11,607 |
| 28,862 |
| 22,842 |
|
|
|
|
|
|
|
|
Other (Expense) Income |
|
|
|
|
|
|
|
Interest expense, net | (4,411) |
| (3,497) |
| (8,547) |
| (7,145) |
Gain on sale of assets, net | 4,780 |
| 2,718 |
| 9,521 |
| 2,718 |
|
|
|
|
|
|
|
|
Net Income | 15,067 |
| 10,828 |
| 29,836 |
| 18,415 |
|
|
|
|
|
|
|
|
Less net income attributable to non-controlling interest | 191 |
| 167 |
| 384 |
| 293 |
|
|
|
|
|
|
|
|
Net Income Attributable to Agree Realty Corporation | $ 14,876 |
| $ 10,661 |
| $ 29,452 |
| $ 18,122 |
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to Agree Realty Corporation |
|
|
|
|
|
|
|
Basic | $ 0.56 |
| $ 0.48 |
| $ 1.13 |
| $ 0.85 |
Diluted | $ 0.56 |
| $ 0.48 |
| $ 1.12 |
| $ 0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income |
|
|
|
|
|
|
|
Net income | $ 15,067 |
| $ 10,828 |
| $ 29,836 |
| $ 18,415 |
Other Comprehensive Income (Loss) - Gain (Loss) on Interest Rate Swaps | (411) |
| (1,677) |
| 330 |
| (4,613) |
Total Comprehensive Income | 14,656 |
| 9,151 |
| 30,166 |
| 13,802 |
Comprehensive Income Attributable to Non-Controlling Interest | (189) |
| (140) |
| (389) |
| (220) |
Comprehensive Income Attributable to Agree Realty Corporation | $ 14,467 |
| $ 9,011 |
| $ 29,777 |
| $ 13,582 |
|
|
|
|
|
|
|
|
Weighted Average Number of Common Shares Outstanding - Basic | 26,389,703 |
| 22,185,525 |
| 26,172,730 |
| 21,315,541 |
Weighted Average Number of Common Shares Outstanding - Diluted | 26,457,340 |
| 22,265,139 |
| 26,240,220 |
| 21,385,098 |
|
|
|
|
|
|
|
|
Agree Realty Corporation | |||||||
Reconciliation of Net Income to FFO and Adjusted FFO | |||||||
($ in thousands, except share and per-share data) | |||||||
(Unaudited) | |||||||
|
|
|
|
|
|
|
|
| Three months ended
|
| Six months ended
| ||||
| 2017 |
| 2016 |
| 2017 |
| 2016 |
|
|
|
|
|
|
|
|
Net income | $ 15,067 |
| $ 10,828 |
| $ 29,836 |
| $ 18,415 |
Depreciation of real estate assets | 4,700 |
| 3,595 |
| 9,185 |
| 6,957 |
Amortization of leasing costs | 40 |
| 24 |
| 80 |
| 47 |
Amortization of lease intangibles | 2,939 |
| 2,028 |
| 5,412 |
| 3,712 |
(Gain) loss on sale of assets, net | (4,780) |
| (2,718) |
| (9,521) |
| (2,718) |
Funds from Operations | $ 17,966 |
| $ 13,757 |
| $ 34,992 |
| $ 26,413 |
Straight-line accrued rent | (877) |
| (656) |
| (1,685) |
| (1,306) |
Deferred revenue recognition | - |
| (116) |
| - |
| (232) |
Stock based compensation expense | 594 |
| 601 |
| 1,276 |
| 1,309 |
Amortization of financing costs | 142 |
| 122 |
| 284 |
| 239 |
Non-real estate depreciation | 25 |
| 18 |
| 51 |
| 35 |
Adjusted Funds from Operations | $ 17,850 |
| $ 13,726 |
| $ 34,918 |
| $ 26,458 |
|
|
|
|
|
|
|
|
Funds from Operations per common share - Basic | $ 0.67 |
| $ 0.61 |
| $ 1.32 |
| $ 1.22 |
Funds from Operations per common share - Diluted | $ 0.67 |
| $ 0.61 |
| $ 1.32 |
| $ 1.22 |
|
|
|
|
|
|
|
|
Adjusted Funds from Operations per common share - Basic | $ 0.67 |
| $ 0.61 |
| $ 1.32 |
| $ 1.22 |
Adjusted Funds from Operations per common share - Diluted | $ 0.67 |
| $ 0.61 |
| $ 1.31 |
| $ 1.22 |
|
|
|
|
|
|
|
|
Weighted Average Number of Common Shares and Units Outstanding - Basic | 26,737,322 |
| 22,533,144 |
| 26,520,349 |
| 21,663,160 |
Weighted Average Number of Common Shares and Units Outstanding - Diluted | 26,804,959 |
| 22,612,758 |
| 26,587,839 |
| 21,732,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information: |
|
|
|
|
|
|
|
Scheduled principal repayments | $ 776 |
| $ 728 |
| $ 1,545 |
| $ 1,448 |
Capitalized interest | 87 |
| 6 |
| 154 |
| 13 |
Capitalized building improvements | 27 |
| 29 |
| 43 |
| 29 |
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
|
CONTACT: Joey Agree, President and Chief Executive Officer, Agree Realty Corporation, (248) 737-4190