BIG BUYER of NET LEASE REPORT – March 2015

Net Lease Commercial Real Estate Investor

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15 retail properties for around $42.1 million

Agree Realty Corporation has expanded its portfolio with the acquisition of 15 retail properties for around $42.1 million. These deals added stores of Bed Bath & Beyond Inc. (BBBY – Analyst Report), Old Navy and Dress Barn for the first time to the company’s portfolio, besides the first Wendy’s restaurants.

The acquisition of these net leased properties gives rise to much diversification in Agree Realty’s portfolio base, bringing in 12 diverse tenants from 9 different retail sectors. Positioned across 10 states, these properties enjoy a weighted-average lease term of approximately 11 years, making them a strategic buy for the company. They are net leased to retailers like Sherwin Williams (SHW- Analyst Report), Family Dollar Stores Inc. (FDO – Analyst Report), Academy Sports + Outdoors and Jo-Ann Fabric and Crafts.

As a matter of fact, the retail real estate landlords are having a tough time amid a rising use of e-commerce in the retail sector. Online shopping has been gaining much momentum among consumers as it is more convenient and at times cheaper compared to shopping from physical stores.

Considering these factors, Agree Realty is targeting investments in assets that are leased to e-commerce resistant sectors. The company is focusing on net leasing of properties to the leading retailers in this sector, thereby ensuring steady rental revenue from such properties.

The company has, in fact, aimed for an acquisition volume of $175–$200 million in 2015. With these acquisitions, we believe, the company would be able to leverage the improving market fundamentals and ride on the growth trajectory. But issues surrounding interest rates may hurt its growth momentum to some extent.

ADC Press Release

AGREE REALTY ANNOUNCES THE ACQUISITION OF 15 PROPERTIES FOR $42.1 MILLION BLOOMFIELD HILLS, MI (March 9, 2015) – Agree Realty Corporation (NYSE: ADC) announced today that it recently closed on the acquisition of 15 retail properties for an aggregate purchase price of approximately $42.1 million. The properties are net leased to 12 different tenants operating in 9 diverse retail sectors and located in 10 states. The transactions were completed at a weighted-average cap rate of 8.08% and have a weighted-average lease term of approximately 11.0 years. The recently closed transactions include the Company’s first Bed Bath & Beyond, Old Navy and Dress Barn stores, as well as the first Wendy’s restaurants in the portfolio. Also acquired were properties net leased to Sherwin Williams, Family Dollar, Academy Sports + Outdoors and JoAnn Fabric and Crafts. “We are pleased to announce these transactions and excited about the investment opportunities in our pipeline,” said Joey Agree, President and CEO. “We remain focused on investing in properties net leased to leading retailers operating in e-commerce resistant sectors and are on track to achieve our targeted 2015 acquisition volume of $175 to $200 million.” About Agree Realty Corporation Agree Realty is 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 224 properties, located in 38 states and containing approximately 4.6 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”.

OUR HISTORY

In 1971, Richard Agree, our Executive Chairman of the Board of Directors founded Agree Development Company, the predecessor to Agree Realty Corporation. Over its 23 year history, Agree developed over 40 community shopping centers primarily throughout the Midwestern and Southeast United States.

With an Initial Public Offering of 2.5 million shares in 1994, Agree Realty Corporation commenced operations as a publicly traded Real Estate Investment Trust (REIT). Follow-on equity offerings have subsequently been issued in 1997, 2003, 2005, 2010, 2012, 2013 and 2014. Agree Realty is listed on the New York Stock Exchange under the ticker symbol ADC.

TODAY

Agree Realty Corporation (NYSE: ADC) is a fully-integrated, self-administered, and self-managed REIT focused on the development and acquisition of net lease retail properties throughout the United States. Our growing portfolio of industry leading retailers consists of 218 assets in 38 states, containing approximately 4.4 million square feet of gross leasable space.

Agree’s disciplined and focused investment strategy, its institutional access to capital, and the Company’s industry-wide relationships, consistently produce high-quality opportunities with superior risk adjusted returns.

The Agree Team’s expertise and strategic execution seeks to maximize value for all stakeholders. Our innovative development and acquisition strategies, adaptive real estate technology, and extensive capabilities are relied upon by our industry leading partners, including Walgreens, McDonalds, JP Morgan Chase, PNC and Wawa.

Building upon the foundation of excellence established throughout the past four decades, Agree Realty continues to be a market leader in the net lease space.