Agree Realty Announces Record 2022 Investment Activity & Provides Update on Capital Markets Activities

Balance sheet well funded for investment activity in 2023

Bloomfield Hills, Michigan., January 4, 2023 /PRNewswire/ — Agree Realty Corporation (NYSE: ADC) (the “Company”) today released a summary of its record investment activity for 2022, providing an update on its portfolio and fourth quarter capital markets activity. did.

Record investment activity in 2022

Total real estate investment activity in 2022, including acquisitions, developments and partner capital solutions completed or under construction projects $1.71 billion465 properties are leased net to industry-leading tenants across 28 retail sectors and located in 43 states nationwide.

12 months ended December 31, 2022the Company has acquired 434 commercial net lease properties, with a total acquisition volume of approximately $1.59 billionThe acquisition closed with a weighted average capitalization rate of 6.2% and a weighted average remaining lease term of 10.2 years. Approximately 69.4% of annualized base rents acquired during the year were from investment grade retail tenants. Approximately 5.4% of the annualized base rents acquired during the year were derived from above-ground leased assets.

Total Acquisition Volume in the 4th Quarter $404.9 million The weighted average capitalization rate was 6.4% and the weighted average remaining lease term was 10.6 years. Approximately 73.2% of the annualized base rents acquired were from investment grade retail tenants. Approximately 6.2% of the annualized base rents acquired were derived from above-ground leased assets.

Current December 31, 2022, our portfolio generated approximately 67.8% of annual base rents from investment grade retail tenants.Property land rented to tenants increased to approx. $58.1 million It represents approximately 12.4% of the annualized base rent and approximately 12.4% of the total annualized base rent.

President’s comment

Joey Ugley, President and CEO, said, “We delivered another record year of performance, and recent capital market activity has allowed us to pre-fund the required equity in 2023 and achieve opportunistic growth across all three external growth platforms. I am very happy that we are now able to implement it effectively,” he said. “While we are not providing investment guidance for 2023 at this time, our strong liquidity profile will allow us to achieve investment volumes close to our 2022 activity and target leverage without raising additional capital. You can stay within bounds: the macroeconomic environment remains uncertain, so be opportunistic, disciplined and reluctant to move up the risk spectrum while investing capital.”

Capital Market Update

In the fourth quarter of 2022, the Company entered into a forward sale agreement in connection with its Market Equity (“ATM”) program to sell a total of 4,104,641 shares of its common stock with an expected net income of approximately $282.9 millionIn addition, the Company has settled 1,600,000 shares under existing futures trading contracts for approximately $106.2 million.

At the end of the year, the Company held 8,254,641 shares subject to settlement under existing futures contracts, resulting in approximately $557.4 million After deducting fees and expenses and other adjustments specified in the Stock Distribution Agreement.

Current December 31, 2022the company had a total liquidity of about $1.5 billionwhich has $900 million of availability under the revolving credit facility $557.4 million Unpaid advance shares and cash on hand.

The following table shows the current outstanding futures offerings of the Company. December 31, 2022:

About Ugly Real Estate Co., Ltd.

Agree Realty Corporation is a listed real estate investment trust. REidea retail Through the acquisition and development of properties leased to industry-leading omnichannel retail tenants.Current December 31, 2022, the company owns and operates a portfolio of 1,839 properties located in all 48 continental states, containing approximately 38.1 million square feet of total leasable area. Our common stock is listed on the New York Stock Exchange under the symbol “ADC.”additional information about the company and REidea retailPlease come www.greerealty.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding projected financial and operating results within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. It contains. , as amended (“Exchange Law”). The Company intends such forward-looking statements to be subject to the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and for the purpose of complying with these safe harbor provisions, Includes description. Forward-looking statements generally refer to “may,” “will,” “should,” “could,” “intend,” “expect,” “seek,” Identifiable by the use of forward-looking terms such as “anticipate” and “estimate”. , “approximately”, “believe”, “may”, “predict”, “predict”, “forecast”, “continue”, “assume”, “plan”, “expect “stand up” or other similar words or expressions. Forward-looking statements are based on certain assumptions and may include future expectations, future plans and strategies, financial and operating projections, or other forward-looking information. Although these forward-looking statements are based on good faith beliefs, reasonable assumptions and our best judgment reflecting current information, they are subject to known and unknown risks, uncertainties and other factors. You should not rely on forward-looking statements as they contain If it is beyond our control and may have a material impact on our operating results, financial condition, cash flow, performance, or future performance or events. Some of the most important factors right now include the ongoing global economic uncertainty, the current COVID-19 or COVID-19 pandemic, financial condition, operating results, inflation to cash flow and performance. and the potential adverse effects of rising interest rates. conditions of the Company and its tenants, the real estate market, the global economy and financial markets; The extent to which these circumstances will affect the Company and its tenants will depend on future developments that are highly uncertain and cannot be predicted with confidence. In addition, investors are aware of many of the risks identified in the risk factors described in our annual report on Form 10-K and subsequent quarterly reports filed with the Securities and Exchange Commission (“SEC”). is warned to interpret This is heightened as a result of the macroeconomic environment and the ongoing and numerous negative impacts of his COVID-19. Other important factors that could cause our actual results to vary, among other things, include a general deterioration in domestic economic conditions, a weakening in the real estate market, a decline in available credit, rising interest rates, the retail industry the Company’s continued ability to maintain its eligibility as a REIT, and other factors explained in the Company’s reports filed with the SEC. The forward-looking statements contained in this press release are made as of the date indicated herein. Except as legally required, we disclaim any obligation to update any forward-looking statements as a result of new information, future events, changes in our expectations or assumptions or otherwise.

For more information about our business and financial results, please see the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including, but not limited to, our annual reports. please refer to. Form 10-K and Quarterly Report Form 10-Q, copies of which are available in the Investor Relations section of the Company’s website. www.greerealty.com.

We calculate the “weighted average capitalization rate” of acquisitions and dispositions as the sum of the contractual fixed annual rents calculated on a straight-line basis over the principal lease term and the expected annual net tenant recovery rate for purchases and dispositions. Defined as divided by price. Occupied property.

We define “annualized base rent” as the annualized amount of the contractual minimum rent required by the tenant lease agreement. December 31, 2022, calculated on a straight-line basis. Annualized Base Rent is not and is not intended to be a representation in accordance with Generally Accepted Accounting Principles (“GAAP”). We believe annualized contractual minimum rents are useful for management, investors and other stakeholders in analyzing concentration and rental activity.

SOURCE Ugly Realty Corporation