AGREE REALTY CORP
For the period ended Dec 31, 2024. Filed Feb 11, 2025.
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FY2024 · Filed Feb 11, 2025
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Item 2. : Properties
As of December 31, 2024, the Company’s portfolio consisted of 2,370 properties located in all 50 states and totaling approximately 48.8 million square feet of GLA.
As of December 31, 2024, the Company’s portfolio was approximately 99.6% leased and had a weighted average remaining lease term of approximately 7.9 years. A significant majority of the Company’s properties are leased to national tenants and approximately 68.2% of our annualized base rent was derived from tenants, or parent entities thereof, with an investment grade credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or National Association of Insurance Commissioners. Substantially all of our tenants are subject to net lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and property operating expenses including property taxes, insurance and maintenance. In addition, our tenants are typically subject to future rent increases based on fixed amounts or increases in the consumer price index and certain leases provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level.
Tenant Diversification
The following table presents annualized base rents for all tenants that generated 1.5% or greater of our total annualized base rent as of December 31, 2024:
| · · · · · · | ||||
|---|---|---|---|---|
| ($ in thousands) · · | ||||
| | | Annualized | | % of Ann. |
| Tenant / Concept · Base Rent (1) · Base Rent | ||||
| Walmart | | $38,460 | 6.2% | |
| Tractor Supply | | 30,800 | 5.0% | |
| Dollar General | | 28,115 | 4.5% | |
| Best Buy | | 21,130 | 3.4% | |
| TJX Companies | | 19,614 | 3.2% | |
| CVS | | 19,599 | 3.2% | |
| Hobby Lobby | | 18,200 | 2.9% | |
| Dollar Tree | | 18,170 | 2.9% | |
| Lowe's | | 17,884 | 2.9% | |
| O'Reilly Auto Parts | | 17,798 | 2.9% | |
| Kroger | | 17,102 | 2.8% | |
| Gerber Collision | | 15,039 | 2.4% | |
| 7-Eleven | | 14,164 | 2.3% | |
| Burlington | | | 14,019 | 2.3% |
| Sunbelt Rentals | | | 13,887 | 2.2% |
| Sherwin-Williams | | | 11,809 | 1.9% |
| Home Depot | | 10,680 | 1.7% | |
| Wawa | | 9,916 | 1.6% | |
| Other(2) | | 284,335 | 45.7% | |
| Total | | $620,721 | 100.0% | |
| (1) | Represents annualized base rent on a straight-line basis as of December 31, 2024. |
| (2) | Includes tenants generating less than 1.5% of annualized contractual base rent. |
Tenant Sector Diversification
The following table presents annualized base rents for all sectors as of December 31, 2024:
| · · · · · · | |||||
|---|---|---|---|---|---|
| ($ in thousands) · · | |||||
| · · Annualized · · % of Ann. | |||||
| Tenant Sector · Base Rent (1) · Base Rent | |||||
| Grocery Stores | | $57,424 | | 9.2% | |
| Home Improvement | | 56,977 | | 9.2% | |
| Tire and Auto Service | | 50,125 | | 8.1% | |
| Convenience Stores | | 46,546 | | 7.5% | |
| Dollar Stores | | 45,076 | | 7.3% | |
| Auto Parts | | 39,893 | | 6.4% | |
| Off-Price Retail | | 38,579 | | 6.2% | |
| General Merchandise | | 33,904 | | 5.5% | |
| Farm and Rural Supply | | 32,572 | | 5.2% | |
| Consumer Electronics | | 24,581 | | 4.0% | |
| Pharmacy | | 24,550 | | 4.0% | |
| Crafts and Novelties | | 20,519 | | 3.3% | |
| Discount Stores | | 15,808 | | 2.5% | |
| Warehouse Clubs | | 15,742 | | 2.5% | |
| Health Services | | 15,297 | | 2.5% | |
| Equipment Rental | | | 14,943 | | 2.4% |
| Dealerships | | | 13,346 | | 2.1% |
| Restaurants - Quick Service | | | 11,581 | | 1.9% |
| Health and Fitness | | | 11,276 | | 1.8% |
| Sporting Goods | | | 7,345 | | 1.2% |
| Financial Services | | | 7,187 | | 1.2% |
| Specialty Retail | | | 6,919 | | 1.1% |
| Restaurants - Casual Dining | | | 5,704 | | 0.9% |
| Theaters | | | 3,854 | | 0.6% |
| Shoes | | | 3,803 | | 0.6% |
| Pet Supplies | | | 3,783 | | 0.6% |
| Home Furnishings | | | 3,672 | | 0.6% |
| Beauty and Cosmetics | | | 3,493 | | 0.6% |
| Entertainment Retail | | | 2,323 | | 0.4% |
| Apparel | | | 2,016 | | 0.3% |
| Miscellaneous | | | 1,259 | | 0.2% |
| Office Supplies | | 624 | | 0.1% | |
| Total | | $620,721 | 100.0% | ||
| (1) | Represents annualized base rent on a straight-line basis as of December 31, 2024. |
Geographic Diversification
The following table presents annualized base rents, by state, for our portfolio as of December 31, 2024:
| · · · · · · | |||||
|---|---|---|---|---|---|
| ($ in thousands) · · · | |||||
| · · Annualized · · % of Ann. | |||||
| Tenant Sector · Base Rent (1) · Base Rent | |||||
| Texas | | $42,218 | 6.8% | ||
| Illinois | | 34,178 | 5.5% | ||
| Michigan | | 33,967 | 5.5% | ||
| North Carolina | | 32,412 | 5.2% | ||
| Florida | | 32,410 | 5.2% | ||
| Ohio | | 32,390 | 5.2% | ||
| Pennsylvania | | 28,539 | 4.6% | ||
| New York | | | 28,134 | | 4.5% |
| California | | | 25,454 | | 4.1% |
| Georgia | | | 24,876 | | 4.0% |
| New Jersey | | | 23,877 | | 3.8% |
| Wisconsin | | | 18,122 | | 2.9% |
| Missouri | | | 17,365 | | 2.8% |
| Mississippi | | | 15,626 | | 2.5% |
| South Carolina | | | 15,597 | | 2.5% |
| Virginia | | | 15,463 | 2.5% | |
| Louisiana | | | 15,221 | 2.5% | |
| Kansas | | | 13,694 | 2.2% | |
| Minnesota | | | 13,620 | 2.2% | |
| Connecticut | | | 13,211 | 2.1% | |
| Tennessee | | | 12,098 | 1.9% | |
| Massachusetts | | | 11,654 | 1.9% | |
| Indiana | | | 11,543 | 1.9% | |
| Alabama | | 11,091 | 1.8% | ||
| Oklahoma | | 9,452 | 1.5% | ||
| Other(2) | | | 88,509 | | 14.4% |
| Total | | $620,721 | 100.0% | ||
| (1) | Represents annualized base rent on a straight-line basis as of December 31, 2024. |
| (2) | Includes states generating less than 1.5% of annualized contractual base rent. |
Lease Expirations
The following table presents contractual lease expirations within the Company’s portfolio as of December 31, 2024, assuming that no tenants exercise renewal options:
| · · · · · · · · · · · · | ||||||
|---|---|---|---|---|---|---|
| ($ and GLA in thousands) · · · · · · · · · · · | ||||||
| | | | | Annualized Base Rent (1) | | Gross Leasable Area |
| · · Number of · · · · · % of · · · · % of | ||||||
| Year · Leases · Dollars · Total · Square Feet · Total | ||||||
| 2025 | 41 | | $7,660 | 1.2% | 820 | 1.7% |
| 2026 | 122 | | 26,117 | 4.2% | 2,648 | 5.5% |
| 2027 | 166 | | 37,851 | 6.1% | 3,538 | 7.3% |
| 2028 | 175 | | 45,848 | 7.4% | 4,085 | 8.4% |
| 2029 | 207 | | 64,977 | 10.5% | 6,270 | 12.9% |
| 2030 | 297 | | 63,787 | 10.3% | 5,070 | 10.4% |
| 2031 | 190 | | 44,758 | 7.2% | 3,286 | 6.8% |
| 2032 | 243 | | 50,903 | 8.2% | 3,742 | 7.7% |
| 2033 | 212 | | 48,454 | 7.8% | 3,825 | 7.9% |
| 2034 | 201 | | 45,363 | 7.3% | 2,930 | 6.0% |
| Thereafter | 698 | | 185,003 | 29.8% | 12,364 | 25.4% |
| Total | 2,552 | | $620,721 | 100.0% | 48,578 | 100.0% |
| (1) | Represents annualized base rent on a straight-line basis as of December 31, 2024. |
Developments
During the year ended December 31, 2024, the Company had 41 development or DFP projects completed or under construction, for which 20 remained under construction as of December 31, 2024. Anticipated total costs for the 20 projects are approximately $107.3 million.
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