Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Summary of Significant Accounting Policies

Schedule of real estate properties held-for-sale

Real estate held for sale consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021		December 31, 2020
Land	$	974	$	313
Building		3,973		1,019
Lease intangibles - asset		1,792		132
Lease intangibles - (liability)		—		(285)
		6,739		1,179
Accumulated depreciation and amortization, net		(1,168)		20
Total Real Estate Held for Sale, net	$	5,571	$	1,199

Schedule of amortization of lease intangibles

The following schedule summarizes the Company’s amortization of lease intangibles for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Lease intangibles (in-place)	$	7,170	$	4,408	$	19,853	$	11,971
Lease intangibles (above-market)		8,146		5,338		21,391		15,607
Lease intangibles (below-market)		(1,531)		(1,374)		(4,760)		(4,055)
Total	$	13,785	$	8,372	$	36,484	$	23,523

Schedule of estimated future amortization of lease intangibles

The following schedule represents estimated future amortization of lease intangibles as of September 30, 2021 (in thousands):

	2021
Year Ending December 31,	(remaining)		2022		2023		2024		2025		Thereafter		Total
Lease intangibles (in-place)	$	8,018	$	30,075	$	28,016	$	25,494	$	23,642	$	140,967	$	256,212
Lease intangibles (above-market)		9,100		35,604		33,454		29,637		28,758		252,829		389,382
Lease intangibles (below-market)		(1,552)		(5,306)		(4,596)		(3,925)		(3,489)		(13,676)		(32,544)
Total	$	15,566	$	60,373	$	56,874	$	51,206	$	48,911	$	380,120	$	613,050

Schedule of cash, cash equivalents and cash held in escrow

Per the requirements of ASU 2016-18 (Topic 230, Statement of Cash Flows) the following table provides a reconciliation of cash and cash equivalents and cash held in escrow, both as reported within the Condensed Consolidated Balance Sheets, to the total of the cash, cash equivalents and cash held in escrow as reported within the Condensed Consolidated Statements of Cash Flows (dollars in thousands):

	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	91,881	$	6,137
Cash held in escrow		10,927		1,818
Total of cash and cash equivalents and cash held in escrow	$	102,808	$	7,955

Schedule of reconciliation of basic and diluted net earnings per common share

The following is a reconciliation of the numerator and denominator used in the computation of basic and diluted net earnings per share of common stock for each of the periods presented (in thousands, except for share data):

	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net income attributable to Agree Realty Corporation	$	36,663	$	21,280	$	89,123	$	67,766
Less: Series A preferred stock dividends		(289)		—		(289)		—
Net income attributable to common stockholders		36,374		21,280		88,834		67,766
Less: Income attributable to unvested restricted shares		(106)		(69)		(280)		(233)
Net income used in basic and diluted earnings per share	$	36,268	$	21,211	$	88,554	$	67,533
Weighted average number of common shares outstanding		69,304,906		53,902,541		65,826,126		50,818,154
Less: Unvested restricted stock		(202,406)		(180,585)		(202,406)		(180,585)
Weighted average number of common shares outstanding used in basic earnings per share		69,102,500		53,721,956		65,623,720		50,637,569
Weighted average number of common shares outstanding used in basic earnings per share		69,102,500		53,721,956		65,623,720		50,637,569
Effect of dilutive securities:
Share-based compensation		110,389		85,380		101,931		87,111
2019 ATM Forward Equity Offerings		—		—		—		19,053
2020 ATM Forward Equity Offerings		268,011		22,515		178,321		16,934
April 2020 Forward Equity Offerings		—		725,821		—		390,795
2021 ATM Forward Equity Offerings		110,948		—		48,141		—
Weighted average number of common shares outstanding used in diluted earnings per share		69,591,848		54,555,672		65,952,113		51,151,462