Agree Realty Corporation (ADC), a real estate investment trust (:REIT), disclosed $22.4 million in acquisitions of 2 single-tenant properties – one occupied by Wal-Mart Stores Inc. (WMT) and the other by AutoZone, Inc. (AZO).
The recently renovated Wal-Mart asset is based in Brooklyn, Ohio and spans 147,771 square feet. The property operates as a Sam's Club, which is an American membership-only retail warehouse club chain, owned and operated by Wal-Mart. The second property is situated in South Kedzie Road in Chicago, Illinois and encompasses 7,840 square feet.
With the aforementioned buyouts, Wal-Mart has become the 4th largest tenant of Agree Realty, in terms of rental revenue generation. We expect the transaction to boost Agree Realty’s strong tenant base and its relationship with existing tenants. Moreover, it is expected to be accretive to the company’s earnings in the future.
On an acquisition spree in recent times, Agree Realty has also been focusing on strengthening ties with its present tenants. Last month, the company acquired 2 single tenant assets leased to Petsmart and Starbucks Corporation (SBUX) for a combined purchase price of about $5.4 million. In Apr 2013, the company announced the extension of the existing lease deal with Kmart at 2 retail properties in Michigan and Kentucky, respectively.
Agree Realty specializes in the ownership, development, acquisition and management of retail properties, which are primarily leased to national and regional retail companies in the United States. At present, the company owns a portfolio of 120 properties, located in 32 states comprising roughly 3.5 million square feet of gross leasable space.
Agree Realty currently carries a Zacks Rank #3 (Hold).
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