Agree Realty CFO Sees “Tremendous Opportunity” Within Ground Lease Sector

Clay Thelen, CFO of Agree Realty Corp. (NYSE: ADC), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco.

Thelen said that Agree increased its acquisition guidance for the year after the end of the third quarter.

“That increase is really a testament to our team and the continued investment we are making into our acquisitions platform,” he said, adding that as a result of the investment, the company has seen increased volume and tenant quality.

In discussing Agree’s top retail sectors, Thelen said the company focuses on off-price retail, tire and auto service, tire and auto parts, and home improvement. “Within each of those sectors, we’re focused on the best of the best, from a tenant perspective,” he added.

Thelen said that Agree’s ground lease portfolio is just over 8 percent in terms of the total portfolio and that the company will continue to focus on that.

“We really view it as a tremendous opportunity from a ... risk-adjusted return perspective,” he said.