BLOOMFIELD HILLS, Mich.,
Jan. 4, 2022 /PRNewswire/
-- Agree Realty Corporation (NYSE: ADC) (the "Company") today
announced a summary of its record investment activity in 2021,
provided acquisition and disposition guidance for 2022, and
provided an update on its portfolio and fourth quarter 2021 capital
markets activities.
2021 Investment & Disposition Activity
Total real estate investment activity for 2021, inclusive of
acquisition, development, and Partner Capital Solutions projects
completed or currently under construction, amounted to a record of
$1.43 billion. The properties
are net leased to 93 industry-leading retail tenants operating
across 27 sectors and are located in 43 states.
During the twelve months ended December
31, 2021, the Company acquired 290 retail net lease
properties for total acquisition volume of approximately
$1.39 billion. The acquisitions were
completed at a weighted-average capitalization rate of 6.2% and had
a weighted-average remaining lease term of 11.5 years.
Approximately 69.3% of the annualized base rents acquired during
the year were derived from investment grade retail tenants.
Approximately 29.1% of annualized base rents acquired during the
year were derived from ground leased assets.
The Company disposed of 18 assets for total gross proceeds of
$58.0 million during 2021. The
dispositions, which served to further diversify and strengthen the
Company's real estate portfolio, were completed at a
weighted-average capitalization rate of 6.4%.
As of December 31, 2021, the
Company's portfolio generated approximately 67% of annualized base
rents from investment grade retail tenants. Properties ground
leased to tenants increased to approximately $53 million of annualized base rents and
represented over 14% of total annualized base rents.
2022 Investment & Disposition Outlook
The Company's outlook for acquisition volume in 2022, which
includes several significant assumptions, is between $1.1 billion and $1.3
billion of retail net lease properties. The Company's
disposition guidance for 2022 is between $25
million and $75
million.
Capital Markets Update
Credit Facility
In December 2021, the Company
entered into a Third Amended and Restated Revolving Credit
Agreement to increase its senior unsecured credit facility (the
"Credit Facility") to $1.0 billion.
The Credit Facility includes an accordion option that allows the
Company to request additional lender commitments up to a total of
$1.75 billion. The Credit Facility
will mature in January 2026 with
Company options to extend the maturity date to January 2027.
Common Equity
In December 2021, the Company
completed a follow-on public offering of 5,750,000 shares of common
stock, including the full exercise of the underwriters' option to
purchase additional shares, in connection with forward sale
agreements. Upon settlement, the offering is anticipated to raise
net proceeds of approximately $374.8
million after deducting fees and expenses and making certain
other adjustments as provided in the equity distribution
agreements. To date, the Company has not received any proceeds from
the sale of shares of its common stock by the forward
purchasers.
During the fourth quarter of 2021, the Company entered into
forward sale agreements in connection with its ATM program to sell
an aggregate of 207,166 shares of common stock for anticipated net
proceeds of approximately $14.2
million. Additionally, the Company settled 1,501,210 shares
under forward sale agreements entered into through its ATM program
and received net proceeds of approximately $94.2 million.
At year end, the Company had 7,875,296 shares remaining to be
settled under existing forward sale agreements, which are
anticipated to raise net proceeds of approximately $519.2 million after deducting fees and expenses
and making certain other adjustments as provided in the equity
distribution agreements.
The following table presents the Company's outstanding forward
equity offerings as of December 31,
2021:
Forward
Equity
Offerings
|
Shares
Sold
|
|
Shares
Settled
|
|
Shares
Remaining to Settle
|
|
Net Proceeds
Received
|
|
Anticipated
Net Proceeds Remaining
|
|
|
|
|
|
|
|
|
|
|
Q1 2021
ATM
Forward
Offerings
|
372,469
|
|
-
|
|
372,469
|
|
-
|
|
$24,358,755
|
Q2 2021
ATM
Forward
Offerings
|
1,178,197
|
|
-
|
|
1,178,197
|
|
-
|
|
$79,128,474
|
Q3 2021
ATM
Forward
Offerings
|
367,464
|
|
-
|
|
367,464
|
|
-
|
|
$26,693,468
|
Q4 2021
ATM
Forward
Offerings
|
207,166
|
|
-
|
|
207,166
|
|
-
|
|
$14,234,169
|
December
2021
Forward
Offering
|
5,750,000
|
|
-
|
|
5,750,000
|
|
-
|
|
$374,768,075
|
Total
Forward
Equity
Offerings
|
7,875,296
|
|
-
|
|
7,875,296
|
|
-
|
|
$519,182,941
|
CEO Comments
"We are extremely pleased with another year of outstanding
execution by our team," said Joey Agree, President and Chief
Executive Officer. "Our recent capital markets activities have
bolstered our fortress-like balance sheet, providing us with
substantial liquidity to execute on our robust investment pipeline.
Agree Realty has established itself as the leading platform for the
aggregation of the highest quality retail net lease opportunities.
We look forward to further building on our successes in the years
to come."
About Agree Realty Corporation
Agree Realty Corporation is a publicly traded real estate
investment trust that is
RETHINKING RETAIL through the acquisition
and development of properties net leased to industry-leading,
omni-channel retail tenants. As of December 31, 2021, the Company owned and operated
a portfolio of 1,404 properties, located in 47 states and
containing approximately 29.1 million square feet of gross leasable
area. The Company's common stock is listed on the New York
Stock Exchange under the symbol "ADC". For additional
information on the Company and
RETHINKING RETAIL, please visit
www.agreerealty.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, including statements
about the terms and size of the offering, the intended use of
proceeds from the offering, if any, and future settlement of its
forward sales agreements, that represent the Company's expectations
and projections for the future. Although these forward-looking
statements are based on good faith beliefs, reasonable assumptions
and the Company's best judgment reflecting current
information, you should not rely on forward-looking
statements since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond
the Company's control and which could materially affect the
Company's results of operations, financial condition, cash flows,
performance or future achievements or events. Currently, one of the
most significant factors, however, is the potential adverse effect
of the current pandemic of the novel coronavirus, or COVID-19, on
the financial condition, results of operations, cash flows and
performance of the Company and its tenants, the real estate market
and the global economy and financial markets. The extent to which
COVID-19 impacts the Company and its tenants will depend on future
developments, which are highly uncertain and cannot be predicted
with confidence, including the scope, severity and duration of the
pandemic, the actions taken to contain the pandemic or mitigate its
impact, and the direct and indirect economic effects of the
pandemic and containment measures, among others. Moreover,
investors are cautioned to interpret many of the risks identified
in the risk factors discussed in the Company's Annual
Report on Form 10-K for the year ended December 31, 2020 and other SEC filings, as well
as the risks set forth below, as being heightened as a result of
the ongoing and numerous adverse impacts of COVID-19. Additional
important factors, among others, that may cause the
Company's actual results to vary include the general
deterioration in national economic conditions, weakening of real
estate markets, decreases in the availability of credit, increases
in interest rates, adverse changes in the retail industry, the
Company's continuing ability to qualify as a REIT and
other factors discussed in the Company's reports
filed with the SEC. The forward-looking statements included
in this press release are made as of the date hereof. Unless
legally required, the Company disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events, changes in the Company's expectations
or assumptions 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
Investor Relations section of the Company's website at
www.agreerealty.com.
The Company defines the "weighted-average capitalization
rate" for acquisitions and dispositions as the sum of contractual
fixed annual rents computed on a straight-line basis over the
primary lease terms and anticipated annual net tenant recoveries,
divided by the purchase and sale prices.
The Company defines "annualized base rent" as the annualized
amount of contractual minimum rent required by tenant lease
agreements as of December 31, 2021,
computed on a straight-line basis. Annualized base rent is not, and
is not intended to be, a presentation in accordance with generally
accepted accounting principles ("GAAP"). The Company believes
annualized contractual minimum rent is useful to management,
investors, and other interested parties in analyzing concentrations
and leasing activity.
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SOURCE Agree Realty Corporation