Net Lease REIT Agree Realty on Track to Boost Acquisition Volume in 2015

Joey Agree, president and CEO of Agree Realty Corp. (NYSE: ADC), joined REIT.com for a CEO Spotlight video interview during REITWeek 2015: NAREIT’s Investor Forum, held in New York.

Agree Realty REIT focuses on the development and acquisition of net lease retail properties throughout the United States.

During the six months to June 30, the company acquired 44 net lease properties for about $123 million. The properties are leased to 27 retail tenants operating across 17sectors, and are located in 18 states.

The transactions were completed at a weighted average cap rate of 8 percent. The company added several new retail tenants and concepts to its portfolio through these transactions, including Bed, Bath & Beyond, Dress Barn, Golden Corral, Old Navy, Party City, Sleepy’s and Wendy’s.

Agree Realty has now acquired more than $500 million of retail net lease properties since the inception of its acquisition platform in April 2010.

Agree noted that the company’s acquisition track record reflects its ability to source off-market opportunities in order to create wholesale opportunities for shareholders.

He noted that the REIT has given acquisition guidance for the first time for this year, projecting acquisition volume of $175 million to $200 million.

“We’re confident we’re on track to hit that goal, and that would really build upon last year, when we acquired nearly $150 million,” Agree said.

Looking ahead, Agree said the big story for the remainder of the year will be interest rate developments and any correlating movement in valuations and capitalization rates.